Earnings Release • Feb 23, 2022
Earnings Release
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23 February 2022, 7:00am, Antwerp, Belgium: VGP NV ('VGP' or 'the Group'), a European provider of high-quality logistics and semi-industrial real estate, today announces the results for the financial year ended 31 December 2021:
VGP's Chief Executive Officer, Jan Van Geet, said: "VGP reported solid results benefiting from elevated leasing activity, rental growth and compression in valuation yields. Like in previous years, we have been able to consistently enlarge our land bank in-line with our growth, yet, with nearly 40% of projects acquired last year being brownfield, we continue to place our clients closer to their clients and customers and help improve their supply chain efficiency and last mile delivery. The demand for new space witnessed into 2022 continues to be healthy and we remain optimistic on the outlook for this year as business sentiment is upbeat and secular shifts point towards elevated demand for the coming period driven by consumer shift towards ecommerce, supply chain optimization strategies and transition towards sustainable operations across industries and logistics."
Jan Van Geet continued: "I would like to particularly thank my team for their devotion, enthusiasm and energy. Everybody contributed to our achievements of last year. Our team has grown together with our company and today we can rely on a deep bench of experienced professionals offering technical inhouse know-how on design and engineering of advanced semi-industrial and e-commerce facilities, without having to rely on general contractor or external engineers and consultants."
Jan Van Geet concluded: "We have managed to significantly strengthen our fortress balance sheet in the course of 2021 and due to the two bond issuances we have our financing needs for 2022 covered, despite a significantly larger capex anticipated in 2022 versus last year due to our predominantly prelet construction pipeline."
1 For Joint Ventures at 100%
2 Calculated based on the contracted rent and estimated market rent for the vacant space.
potential of at least 1,304,000 m2 . This brings the land bank of owned, committed and under option to 13,797,000 m2 supporting a minimum of 6,287,000 m2 of future lettable area.
1 Barring any top-ups related to assets being completed in parks already owned by the joint venture
2 The transaction value is composed of the purchase price for the completed income generating buildings and the net book value of the development pipeline which is transferred as part of a closing but not yet paid for by the First Joint Venture.
3 Subject to final agreement between the joint venture partners in terms of the transferred income generating assets and pricing
• A total solar power generation capacity of 74.7MWp is currently installed or under construction through 57 roof-projects. This is being realised through a € 38.4 million committed investment to date. In addition, the currently identified pipeline of 37 projects equates to an additional power generation capacity of 74.5 MWp.
• We have made significant progress towards our Sustainable Development Goals and are on track to achieve carbon neutrality by 2025 and 50% gross reduction by 2030 under scope 1 and 2.
1 €150 million matures on 31 December 2026 and €50 million matures on 31 December 2024
| Operations and results | 2021 | 2020 | Change (%) |
|---|---|---|---|
| Committed annualised rental income (€mm) | 256.1 | 185.2 | 38.3% |
| IFRS Operating Profit before tax (€mm) | 776.6 | 419.4 | 85.2% |
| IFRS net profit (€mm) | 650.1 | 370.9 | 75.3% |
| IFRS earnings per share (€ per share) | 31.41 | 18.58 | 69.1% |
| Dividend per share (€ per share) | 6.851 | 3.65 | 87.7% |
| Portfolio and balance sheet | 2021 | 2020 | Change (%) |
|---|---|---|---|
| Portfolio value, including Joint Ventures at 100% (€mm) | 5,746 | 3,843 | 49.5% |
| Portfolio value, including Joint Ventures at share (€mm) | 4,084 | 2,468 | 65.4% |
| Occupancy ratio of standing portfolio (%) | 99.4 | 98.5 | - |
| EPRA NTA2 per share (€ per share) | 106.93 | 65.78 | 62.5% |
| IFRS NAV per share (€ per share) | 99.65 | 63.44 | 57.1% |
| Net financial debt (€mm) | 1,159 | 561 | 107% |
| Gearing3 (%) |
29.8 | 25.2 | - |
The conference call will be available on:
Webcast link:
A presentation will be available on VGP website: https://www.vgpparks.eu/en/investors/publications/
1 Proposed dividend per share to be approved by the Annual General Meeting of Shareholders of 13 May 2022.
2 EPRA Net Tangible Assets. Other metrics, EPRA Net Reinstatement Value and Net Disposal Value can be found in note 12.2
3 Calculated as Net debt / Total equity and liabilities
Publication Annual Report 2021 12 April 2022 First quarter 2022 trading update 13 May 2022 General meeting of shareholders 13 May 2022 Dividend ex-date 24 May 2022 Dividend payment date 26 May 2022 Half year results 2022 26 August 2022 Third quarter 2022 trading update 18 November 2022
| Investor Relations | Tel: +32 (0)3 289 1433 [email protected] |
|---|---|
| Petra Vanclova | Tel: +42 0 602 262 107 |
| (External Communications) | |
| Anette Nachbar | Tel: +49 152 288 10363 |
| Brunswick Group |
VGP is a pan-European developer, manager and owner of high-quality logistics and semi-industrial real estate. VGP operates a fully integrated business model with capabilities and longstanding expertise across the value chain. The company has a development land bank (owned or committed) of 10.94 million m² and the strategic focus is on the development of business parks. Founded in 1998 as a Belgian family-owned real estate developer in the Czech Republic, VGP with a staff of circa 350 employees today owns and operates assets in 14 European countries directly and through several 50:50 joint ventures. As of December 2021, the Gross Asset Value of VGP, including the joint ventures at 100%, amounted to € 5.75 billion and the company had a Net Asset Value (EPRA NTA) of € 2.33 billion. VGP is listed on Euronext Brussels (ISIN: BE0003878957).
For more information, please visit: http://www.vgpparks.eu
Forward-looking statements: This press release may contain forward-looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. VGP is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements contained in this press release considering new information, future events or otherwise. The information in this announcement does not constitute an offer to sell or an invitation to buy securities in VGP or an invitation or inducement to engage in any other investment activities. VGP disclaims any liability for statements made or published by third parties and does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other press release issued by VGP.
During 2021 VGP's business has continued to grow with development activities continuing to perform at record levels driven by strong letting activities, despite the continued disruption caused by Covid-19.
The signed lease agreements represent € 256.1 million1 of annualised committed rental income at the end of December 2021 represent a total of 4,244,000 m² of lettable area. Of this total space 1,699,000 m² belong to the own portfolio (809,000 m² as at 31 December 2020) and 2,545,000 m² to the Joint Ventures (2,407,000 m² at 31 December 2020).
During the year 2021 VGP delivered a total of 26 projects representing 652,000 m² of lettable area, with an additional 50 projects under construction representing 1,478,000 m² of future lettable area.
The Group's completed property portfolio, including own and Joint Ventures portfolio, reached an occupancy rate of 99.4% as of December 2021 compared to 98.5% as of December 2020.
The net valuation of the property portfolio as at 31 December 2021 showed a net valuation gain of € 610.3 million (against a net valuation gain of € 366.4 million per 31 December 2020).
The own investment property portfolio consists of 29 completed buildings representing 766,000 m² of lettable area whereas the Joint Ventures property portfolio consists of 122 completed buildings representing 2,326,000 m² of lettable area.
The total capital expenditure for the Group over 2021 (including capital expenditure related to Joint Ventures projects) amounted to € 743 million.
In March 2021, VGP successfully completed a debut international bond offering for total gross proceeds of € 600 million.
In November 2021, VGP successfully completed a share offering for total proceeds of € 300 million which, combined with retained earnings and cash proceeds from the joint venture closing has resulted in a gearing ratio of the Group of 29.8% as at 31 December 2021 (compared to 25.2% at 31 December 2020).
In December 2021, VGP and Allianz Real Estate setup a fourth joint venture for a total investment capacity of € 2.8 billion.
Post the balance sheet date, in January 2022, VGP successfully completed a second, dual-tranche bond offering for total gross proceeds of € 1,000 million.
1 Including joint ventures.
| (in thousands of €) | 2021 | 2020 |
|---|---|---|
| Revenue1 | 44,255 | 29,558 |
| Gross rental income | 17,618 | 12,078 |
| Property operating expenses | (2,219) | (3,784) |
| Net rental income | 15,399 | 8,294 |
| Joint ventures management fee income | 21,303 | 14,699 |
| Net valuation gains / (losses) on investment properties | 610,261 | 366,361 |
| Administration expenses | (52,112) | (29,296) |
| Share in result from joint ventures after tax | 186,703 | 63,338 |
| Other expenses | (5,000) | (4,000) |
| Operating profit / (loss) | 776,554 | 419,396 |
| Net financial costs | (12,654) | (8,592) |
| Profit before taxes | 763,900 | 410,804 |
| Taxes | (113,844) | (39,865) |
| Profit for the year | 650,055 | 370,939 |
The net rental income increased with € 7.1 million to € 15.4 million, primarily due to income generating assets delivered during 2021 offset by the closing with VGP's Joint Ventures.
Including VGP's share of the Joint Ventures and looking at net rental income on a "look-through" basis net rental in total increased by € 15.4 million (from € 55.3 million for the period ending 31 December 2020 to € 70.7 million for the period ending 31 December 2021) 2
During 2021, the increase in demand of lettable area resulted in the signing of new lease contracts for an amount of € 79.7 million in total (VGP and Joint Ventures portfolio) (compared to € 45.2 million during 2020), of which € 74.6 million related to new or replacement leases and € 5.1 million related to renewals of existing lease contracts. During 2021, lease contracts for a total amount of € 3.7 million were terminated. The Annualised Committed Leases (including the Joint Ventures at 100%) increased from € 185.2 million as at 31 December 2020 to € 256.1 million as at 31 December 20213 , representing over 4,458,000 m² of lettable area.
The Annualised Committed Leases are composed of € 164.6 million lease agreements which have already become effective as of this date and € 91.5 million signed lease agreements which will become effective in the future. The breakdown as to when the Annualised Committed Leases will become effective is as follows:
1 Revenue is composed of gross rental income, service charge income, property and facility management income and property development income.
2 See attached section 'Supplementary notes not part of the condensed financial information' for further details
3 As at 31 December 2021, the Annualised Committed Leases for the Joint Ventures stood at € 151.2 million compared to € 143.5 million as at 31 December 2020.
| In Million € | Current | <1 year | >1 -2 years | >2-3 years | >3 years | Total |
|---|---|---|---|---|---|---|
| Own | 37.1 | 50.6 | 14.8 | 0.0 | 2.5 | 104.9 |
| Joint Ventures at 100% | 127.5 | 23.2 | 0.4 | 0.0 | 0.0 | 151.2 |
| Total | 164.6 | 73.8 | 15.3 | 0.0 | 2.5 | 256.1 |
As at 31 December 2021, the weighted average term of the combined own and Joint Ventures portfolio stood at 8.6 years1 (compared to 8.5 years at 31 December 2020), the own portfolio stood at 10.2 years2 and the Joint Ventures' portfolio stood at 7.4 years3 .
As at 31 December 2021 the top 10 tenants by annualized gross rental income of the combined (own portfolio and Joint Ventures') portfolio totaled 37.0%
As at 31 December 2021 the net valuation gains on the property portfolio reached € 610.3 million compared to a net valuation gain of € 366.4 million for the period ended 31 December 2020.
The low yields in real estate valuations continued to persist during the year.
The own property portfolio, excluding development land but including the buildings being constructed on behalf of the Joint Ventures, is valued by the valuation expert at 31 December 2021 based on a weighted average yield of 4.64% (compared to 5.51% as at 31 December 2020) applied to the contractual rent income increased by the estimated rental value on unlet space.
The (re)valuation of the own portfolio was based on the appraisal report of the property expert Jones Lang LaSalle.Income from Joint Ventures
The Joint Ventures management fee income increased by € 6.6 million to € 21.3 million. The increase was mainly due to the growth of the Joint Ventures portfolio and the development activities undertaken on behalf of the Joint Ventures.
Property and facility management fee income increased from € 10.7 million for the period ending 31 December 2020 to € 14.2 million for the period ending 31 December 2021. The development management fee income generated during the period was € 7.1 million compared to € 4.0 million for the period ending 31 December 2020.
VGP's share of the Joint Ventures' profit for the period increased by € 123.4 million from € 63.3 million for the period ending 31 December 2020 to € 186.7 million for the period ending 31 December 2021, primarily reflecting higher unrealised valuation gains on investment properties driven by further contraction of the yield on the investment portfolio, and higher net rental income.
Net rental income at share increased to € 55.3 million for the period ending 31 December 2021 compared to € 47.0 million for the period ended 31 December 2020. The increase reflects the underlying growth of the Joint Ventures' Portfolio primarily resulting from the eighth closing made between the First Joint Venture and VGP in June 2021.
At the end of December 2021, the Joint Ventures (100% share) had € 151.2 million of annualised committed rental income representing 2,545,000 m² of lettable area compared to € 143.5 million of annualised committed rental income representing 2,407,000 m² at the end of December 2020.
1 Combined (own + joint ventures portfolio) – up to the first break: 8.1 years
2 Own portfolio – up to the first break: 9.6 years
3 Joint Ventures portfolio – up to the first break: 7.1 years
The net valuation gains on investment properties at share increased to € 186.7 million for the year ending 31 December 2021 (compared to € 48.1 million for the year ending 31 December 2020). The Joint Ventures' portfolio, excluding development land and the buildings being constructed by VGP on behalf of the Joint Ventures, was valued at a weighted average yield of 4.28% as at 31 December 2021 (compared to 4.76% as at 31 December 2020). The (re)valuation of the Joint Ventures portfolio was based on the appraisal report of the property expert Jones Lang LaSalle.
The net financial expenses of the Joint Ventures at share for the period ending 31 December 2021 decreased to € 15.3 million from € 17.8 million for the period ending 31 December 2020. For the period ending 31 December 2021, the financial income at share was € 0.0 million (€ 2.0 million for the period ending 31 December 2020). The financial expenses at share increased from € 19.7 million for the period ending 31 December 2020 to € 15.3 million for the period ending 31 December 2021 and included € 4.4 million interest on shareholder debt (€ 5.9 million as at 31 December 2020), € 10.2 million interest on financial debt (€ 8.7 million as at 31 December 2020), € 2.7 million other financial expenses (€ 5.5 million as at 31 December 2020) and a positive impact of € 1.4 million (€ 0.5 million per 31 December 2020) related to capitalised interests.
The administrative costs for the period were € 52.1 million compared to € 29.3 million for the period ended 31 December 2020, reflecting the continued growth of the development activities of the Group and its geographic expansion as well as the increased costs of the long-term incentive plan (LTIP) which is directly proportionally linked to the net asset growth of the Group. During the year an additional accrual in an amount of € 16.0 million was booked in respect of the LTIP.
Other administrative expenses include € 3.5 million of travel costs for the year 2021. Such costs were included under property operating in the previous year in an amount of € 1.9 million. These travel costs are directly linked to the development activities such as sourcing of development land.
As at 31 December 2021 the VGP team comprised more than 320 FTE active in 14 different countries.
The other expenses for the period were € 5 million compared to € 4 million for the period ended 31 December 2020 reflecting the provision for the annual contribution to the VGP Foundation. As at 31 December 2021 the VGP Foundation supported 29 projects reflecting € 6.5 million of accumulated commitments since inception in 2019.
For the period ending 31 December 2021, the financial income was € 12.3 million (€ 9.3 million for the period ending 31 December 2020) and included € 12.3 million interest income on loans granted to the Joint Ventures (€ 9.3 million as at 31 December 2020).
The reported financial expenses as at 31 December 2021 of € 25.0 million (€ 17.9 million as at 31 December 2020) are mainly made up of € 34.1 million expenses related to financial debt (€ 26.6 million as at 31 December 2020), € 3.3 million other financial expenses (€ 2.9 million as at 31 December 2020) and a positive impact of € 13.2 million (€ 11.9 million for the period ending 31 December 2020) related to capitalised interests.
As a result, the net financial costs reached € 12.7 million for the period ending 31 December 2021 compared to € 8.6 million at the end of December 2020.
Shareholder loans to the Joint Ventures amounted to € 346.9 million as at 31 December 2021 (compared to € 266.6 million as at 31 December 2020) of which € 82.9 million (€ 69.7 million as at 31 December 2020) was related to financing of the buildings under construction and development land held by Joint Ventures.
The Group is subject to tax at the applicable tax rates of the respective countries in which it operates. Additionally, a deferred tax charge is provided for on the fair value adjustment of the property portfolio.
The change in the tax line is mainly due to the variance of the fair value adjustments of the property portfolio and has therefore only residual cash effect.
For the period ending 31 December 2021, the taxes were € 113.8 million (2020: € 39.9 million) and included € 113.6 million deferred taxes (2020: € 39.0 million).
As at 31 December 2021, the own investment Property Portfolio consists of 29 completed buildings representing 766,000 m² of lettable area. During 2021, 26 buildings were completed totalling 652,000 m² of lettable area. The occupancy rate of the own portfolio reached 99.3% as at 31 December 2021 (100% as at 31 December 2020).
As at 31 December 2021, the investment Property Portfolio of the Joint Ventures consists of 122 completed buildings representing 2,326,000 m² of lettable area. The occupancy rate of the Joint Ventures portfolio reached 99.4% as at 31 December 2021, compared to 98.4% as at 31 December 2020).
As at 31 December 2021, VGP has 50 buildings under construction (10 on behalf of the Joint Ventures). The new buildings under construction, which are already pre-let for 83.8%, represent € 93.9 million of annualised rental income when fully built and let (€ 23.1 million for the Joint Ventures).
In 2021, VGP acquired 4,037,000 m² of new development land. Of these land plots, 308,000 m² (8%) are located in Germany, 211,000 m² (5%) are located in the Czech Republic, 537,000 m² (13%) are located in Spain, 221,000 m² (5%) are located in the Netherlands, 182,000 m² (5%) are located in Latvia, 353,000 m² (9%) are located in Slovakia, 250,000 m² (6%) are located in Romania, 468,000 m² (12%) are located in Hungary, 220,000 m² (5%) are located in Italy, 120,000 m² (3%) are located in Austria, 27,000 m² (1%) are located in Portugal and 1,140,000 m² (28%) are located in Serbia. These new land plots have a development potential of at least 1,776,000 m² of future lettable area.
Besides this, VGP had another 3,981,000 m² of new committed plots of land as at 31 December 2021, which are located in Germany, the Czech Republic, the Netherlands, Spain, Slovakia, Romania, Hungary, Italy, Austria and Portugal. These land plots allow for the development of ca. 1,685,000 m² of new projects. It is expected that these remaining land plots will be acquired, subject to permits, during the next 12 to 24 months.
As a result, VGP (own portfolio) has a remaining secured development land bank of 9,833,000 m² as at 31 December 2021, of which 60% or 5,852,000 m² in full ownership. This secured land bank allows VGP to develop – in addition to the current completed projects and projects under construction (totalling 2,009,000 m²) – at least a further 4,329,000 m² of lettable area of which 894,000 m² (20.7%) in Germany, 303,000 m² (7.0%) in the Czech Republic, 337,000 m² (7.8%) in Spain, 181,000 m² (4.2%) in the Netherlands, 14,000 m² (0.3%) in Latvia, 367,000 m² (8.5%) in Slovakia, 697,000 m² (16.1%) in Romania, 373,000 m² (8.6%) in Hungary, 371,000 m² (8.6%) in Italy, 136,000 m² (3.1%) in Austria, 169,000 m² (3.9%) in Portugal and 487,000 m² (11.2%) in Serbia.
In addition to the owned and committed land bank, VGP has signed non-binding agreements and is currently performing due diligence investigations, on an exclusive basis, on the potential acquisitions of in total circa 2,859,000 m² of new land plots with a development potential of at least 1,304,000 m2 .
The Joint Ventures have a remaining owned land bank of circa 1,105,000 m² as at 31 December 2021, of which 73% is located in the Netherlands. This land bank allows the Joint Ventures to develop – in addition to the current completed projects and projects under construction (totalling 2,561,000 m²) – a further 654,000 m² of lettable area of which 48,000 m² (7.3%) in Germany, 18,000 m² (2.8%) in the Czech Republic, 58,000 m² (8.9%) in Spain, 515,000 m² (78.8%) in the Netherlands, 10,000 m² (1.5%) in Slovakia and 5,000 m² (0.8%) in Hungary.
Based on value of the development potential the geographical breakdown of the land bank – owned and committed – for own portfolio as well as Joint Ventures combined is as follows: Germany 24%, Netherlands 20%, Spain 16%, Slovakia 9%, Czech Republic 8%, Romania 7%, Austria 5%, Hungary 3%, Serbia 3% and other 3%.
The balance of the Disposal group held for sale increased from € 102.3 million as at 31 December 2020 to € 501.9 million as at 31 December 2021. The balance as at 31 December 2021 relates to assets earmarked for the upcoming closing with the Second Joint Venture and to assets under construction and development land (at fair value) which are being / will be developed by VGP on behalf of VGP European Logistics and VGP European Logistics 2.
Under the joint venture agreements, VGP European Logistics (superseded by the recently announced Fourth Joint Venture with Allianz Real Estate) and VGP European Logistics 2 have an exclusive right of first refusal in relation to acquiring the income generating assets developed by VGP that are in Germany, the Czech Republic, Slovakia and Hungary with respect to the First/Fourth Joint Venture and in Austria, Italy, the Netherlands, Portugal, Romania and Spain with respect to the Second Joint Venture. The development pipeline which is transferred to either joint venture as part of the different closings between such joint venture and VGP is being developed at VGP's own risk and subsequently acquired and paid for by such joint venture subject to pre-agreed completion and lease parameters. The fair value of the asset under construction which are being developed by VGP on behalf of VGP European Logistics and VGP European Logistics 2 amounted to € 501.9 million as at 31 December 2021 (compared to € 102.3 million as at 31 December 2020).
On 26 March 2021, Fitch Ratings announced a first issuer credit rating for VGP assigning a long-term investment grade rating of BBB- with a stable outlook. The Group had engaged in the financial rating process in order to benefit from an enhanced access to debt capital markets when needed, including a broader investor base and tighter spreads.
On 31 March 2021, VGP announced the successful issue of a first benchmark international green bond for an aggregate nominal amount of € 600 million, for coupon of 1.500% p.a. and maturing on 8 April 2029. Demand exceeded 2.7 times the volume of the issue and the Group announced that the proceeds from this issuance will be used to finance and /or refinance a portfolio of eligible assets in accordance with the VGP Green Finance Framework of March 2021 (details available on VGP Investor Relations website).
On 24 November, VGP successfully completed a € 300 million offering of new shares (equivalent to 6.1% of shares outstanding). The capital increase consisted of 1,250,000 new shares at an issue price of € 240 per share, representing a discount of 9.1% compared to the prior close and a premium of 3.0% compared to the last traded price of the Company's share prior to the 10-month trading update as published before market open on 19 November 2021.
The Group further benefits from renewed and expanded multi-year aggregate € 200 million revolving credit facilities which are currently undrawn. These revolving credit facilities were setup in order to bridge temporary funding peaks between the different closings with the Joint Ventures and consists of the following committed revolving credit facilities:
Post the balance sheet date, on 17 January 2022, VGP successfully issued its second public benchmark green bonds for an aggregate nominal amount of € 1.0 billion, in two tranches, with a € 500 million 5 year bond paying a coupon of 1.625% p.a. and maturing on 17 January 2027 and a € 500 million 8-year bond paying a coupon of 2.250% p.a. and maturing on 17 January 2030. The new issuance has benefitted from a great market reception with total demand just under 2.5 times the combined volume of the offering. The proceeds from this issuance are being used to finance and /or refinance a portfolio of eligible assets in accordance with the VGP Green Finance Framework dated March 2021.
The Group will report on the progress of eligible investments in-line with the Green Finance Framework as part of the 2021 Corporate Responsibility Report expected to be published in March 2022.
The gearing ratio1 of the Group as of 31 December 2021 increased to 29.8% from 25.2% as at 31 December 2020.
On a proportionally consolidated basis LTV amounted to 46%.
1 Calculated as Net debt / Total equity and liabilities
VGP entered into four 50:50 joint ventures with Allianz which are set up according to a similar structure. The Allianz Joint Ventures allow the Group to partially recycle its initial invested capital when completed projects are acquired by one of the Joint Ventures and allow the Group to re-invest these monies in the continued expansion of the development pipeline, including the further expansion of the land bank, thus allowing VGP to concentrate on its core development activities.
The First Joint Venture was established in May 2016 with an objective to build a platform of new, grade A logistics and industrial properties with a key focus on expansion in core German markets and high growth CEE markets (of Hungary, the Czech Republic and the Slovak Republic).
The Second Joint Venture was established in July 2019 with the objective to build a platform of core, prime logistic assets in Austria, Italy, the Netherlands, Portugal, Romania and Spain.
The Third Joint Venture was established in June 2020 with an objective to develop VGP Park München. Once fully developed, VGP Park München will consist of five logistic buildings, two stand-alone parking houses and one office building for a total gross lettable area of approx. 314,000 m2 . The park is entirely pre-let.
As the First Joint Venture reached its investment capacity, Allianz and VGP entered into a new joint venture agreement in December 2021 with a view to establish a new Fourth Joint Venture. The Fourth Joint Venture will become effective at the moment of its first closing, currently expected to occur during the second half of 2022.
The Fourth Joint Venture aims to increase its portfolio size (i.e. the gross asset value of the acquired income generating assets) to circa € 2.8 billion by 2027 at the latest.
To allow VGP to acquire land plots on prime locations for future development, the Group has entered into three strategic partnerships, i.e. (i) a 50:50 joint venture with Roozen (the LPM Joint Venture), (ii) a 50:50 joint venture with VUSA (the VGP Park Belartza Joint Venture), and (iii) a 50:50 joint venture with Revikon (the VGP Park Siegen Joint Venture) (together, the Development Joint Ventures). The Group considers these Development Joint Ventures as an add-on source of land sourcing for land plots which would otherwise not be accessible to the Group.
In view the successful evolution of the Group's result during the last year as well as the positive outlook for 2021, the Board of Directors of VGP has decided to propose to the Annual General Meeting a distribution of a gross dividend of € 149.6 million for the year 2021. This equates to € 6.85 per share or a gross dividend yield of 2.94%1 , compared to € 3.65 per share distributed over the year 2020.
1 Based on the closing share price of € 233.00 as at 22 February 2022
For the year ended 31 December 2021
| INCOME STATEMENT (in thousand of €) | NOTE | 31.12.2021 | 31/12/2020 |
|---|---|---|---|
| Revenue | 7 | 44,255 | 29,,558 |
| Gross rental income | 17,618 | 12,078 | |
| Property operating expenses | (2,219) | (3,784) | |
| Net rental income | 15,399 | 8,294 | |
| Joint venture management fee income | 21,303 | 14,699 | |
| Net valuation gains / (losses) on investment properties | 8 | 610,261 | 366,361 |
| Administration expenses | 9 | (52,112) | (29,296) |
| Share in result of Joint Ventures | 10.1 | 186,703 | 63,338 |
| Other expenses | (5,000) | (4,000) | |
| Operating profit / (loss) | 776,554 | 419,396 | |
| Financial income | 11 | 12,322 | 9,319 |
| Financial expenses | 11 | (24,976) | (17,911) |
| Net financial result | (12,654) | (8,592) | |
| Profit before taxes | 763,900 | 410,804 | |
| Taxes | (113,845) | (39,865) | |
| Profit for the period | 650,055 | 370,939 | |
| Attributable to: | |||
| Shareholders of VGP NV | 650,055 | 370,939 | |
| Non-controlling interests | - | - |
| EARNINGS PER SHARE | NOTE | 31.12.2021 | 31/12/2020 |
|---|---|---|---|
| Basic earnings per share (in €) | 12 | 31.41 | 18.58 |
| Diluted earnings per share (in €) | 12 | 31.41 | 18.58 |
The consolidated income statement should be read in conjunction with the accompanying notes.
1 The statutory auditor has confirmed that his audit procedures, which have been substantially completed, have not revealed any material adjustments which would have to be made to the accounting information disclosed in this press release. The consolidated financial statements have been prepared in accordance with IFRS as adopted by the European Union.
For the year ended 31 December 2021
| STATEMENT OF COMPREHENSIVE INCOME (in thousand of €) | 31.12.2021 | 31/12/2020 |
|---|---|---|
| Profit for the year | 650,055 | 370,939 |
| Other comprehensive income to be reclassified to profit or loss | - | - |
| in subsequent periods | ||
| Other comprehensive income not to be reclassified to profit or | - | - |
| loss | ||
| in subsequent periods | ||
| Other comprehensive income for the period | - | - |
| Total comprehensive income / (loss) of the period | 650,055 | 370,939 |
| Attributable to: | ||
| Shareholders of VGP NV | 650,055 | 370,939 |
| Non-controlling interest | - | - |
For the year ended 31 December 2021
| ASSETS (in thousand of €) | NOTE | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Goodwill | 0 | 0 | |
| Intangible assets | 1,046 | 557 | |
| Investment properties | 13 | 1,852,514 | 920,151 |
| Property, plant and equipment | 32,141 | 16,944 | |
| Non-current financial assets | 0 | 0 | |
| Investments in joint venture and associates | 10.2 | 858,116 | 654,773 |
| Other non-current receivables | 10.3 | 264,905 | 264,038 |
| Deferred tax assets | 11 | 1,953 | 1,786 |
| Total non-current assets | 3,010,675 | 1,858,249 | |
| Trade and other receivables | 148,022 | 44,828 | |
| Cash and cash equivalents | 222,160 | 222,356 | |
| Disposal group held for sale | 501,882 | 102,309 | |
| Total current assets | 872,064 | 369,493 | |
| TOTAL ASSETS | 3,882,739 | 2,227,742 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
|---|---|---|---|
| (in thousands of €) | NOTE | 31.12.2021 | 31.12.2020 |
| Share capital | 78,458 | 72,225 | |
| Share premium | 574,088 | 285,420 | |
| Retained earnings | 1,523,019 | 948,092 | |
| Shareholders' equity | 2,175,565 | 1,305,737 | |
| Non-current financial debt | 1,340,609 | 748,796 | |
| Other non-current financial liabilities | 0 | 0 | |
| Other non-current liabilities | 32,459 | 10,461 | |
| Deferred tax liabilities | 112,295 | 43,813 | |
| Total non-current liabilities | 1,485,363 | 803,070 | |
| Current financial debt | 44,147 | 34,468 | |
| Trade debts and other current liabilities | 107,509 | 77,725 | |
| Liabilities related to disposal group held for sale | 70,155 | 6,742 | |
| Total current liabilities | 221,811 | 118,935 | |
| Total liabilities | 1,707,174 | 922,005 | |
| TOTAL SHAREHOLDERS' EQUITY AND | 3,882,739 | 2,227,742 | |
| LIABILITIES |
The consolidated balance sheet should be read in conjunction with the accompanying notes.
| STATEMENT OF CHANGES IN EQUITY (in thousands of €) |
Statutory share capital |
Capital reserve (see note 12) |
IFRS share capital |
Other reserves |
Retained earnings |
Total equity |
|---|---|---|---|---|---|---|
| Balance as at 1 January 2020 | 92,667 | (30,416) | 62,251 | 69 | 637,461 | 699,781 |
| Other comprehensive income / (loss) | - | - | - | - | - | 0 |
| Result of the period | - | - | - | - | 370,939 | 370,939 |
| Effect of disposals | - | - | - | - | - | 0 |
| Total comprehensive income / (loss) | 0 | 0 | 0 | 0 | 370,939 | 370,939 |
| Capital and share premium increase net of transaction costs (see note 16) |
9,974 | - | 9,974 | 188,346 | - | 198,320 |
| Share capital distribution to shareholders |
- | - | - | - | - | 0 |
| Sale of treasury shares (see note 16) | - | - | - | 97,005 | - | 97,005 |
| Hybrid securities | - | - | - | - | - | 0 |
| Dividends | - | - | - | - | (60,308) | (60,308) |
| Balance as at 31 December 2020 | 102,641 | (30,416) | 72,225 | 285,420 | 948,092 | 1,305,737 |
| Balance as at 1 January 2021 | 102,641 | (30,416) | 72,225 | 285,420 | 948,092 | 1,305,737 |
| Other comprehensive income / (loss) | - | - | - | - | - | 0 |
| Result of the period | - | - | - | - | 650,055 | 650,055 |
| Effect of disposals | - | - | - | - | - | 0 |
| Total comprehensive income / (loss) | 0 | 0 | 0 | 0 | 650,055 | 650,055 |
| Capital and share premium increase net of transaction costs (see note 16) |
6,233 | - | 6,233 | 288,668 | - | 294,901 |
| Share capital distribution to shareholders |
- | - | - | - | - | 0 |
| Sale of treasury shares (see note 16) | - | - | - | - | 0 | |
| Hybrid securities | - | - | - | - | - | 0 |
| Dividends | - | - | - | - | (75,128) | (75,128) |
| Balance as at 31 December 2021 | 108,874 | (30,416) | 78,458 | 574,088 | 1,523,019 | 2,175,565 |
| CASH FLOW STATEMENT (in thousand of €) Note |
31.12.2021 | 31/12/2020 |
|---|---|---|
| Cash flows from operating activities | ||
| Profit before taxes | 763,900 | 410,804 |
| Adjustments for: | ||
| Depreciation | 2,431 | 2,076 |
| Unrealised (gains) / losses on investment properites | (598,726) | (200,221) |
| Realised (gains) / losses on disposal of subsidiaries | ||
| and investment properties | (11,535) | (166,140) |
| Unrealised( gains) / losses on financial instruments | ||
| and foreign exchange | 786 | 282 |
| Interest (income) | (12,322) | (9,319) |
| Interest expense | 24,190 | 17,629 |
| Share in (profit) / loss of Joint Venture and associates | (186,703) | (63,338) |
| Operating profit before changes in working | ||
| capital and provisions | (17,979) | (8,227) |
| Decrease/(Increase) in trade and other receivables | (51,472) | (28,240) |
| (Decrease)/Increase in trade and other payables | 10,932 | 10,401 |
| Cash generated from the operations | (58,519) | (26,066) |
| Interest income | 4 | 27 |
| Interest (expense) | (28,726) | (25,259) |
| Income taxes paid | (232) | (870) |
| Net cash generated from operating activities | (87,473) | (52,168) |
| Cash flows from investing activities | ||
| Proceeds from disposal of tangible assets and other | 36 | 14 |
| Proceeds from disposal of subsidiaries and | ||
| investment properties | 14 49,647 |
405,644 |
| Investment property and investment property under | ||
| construction | (680,028) | (428,244) |
| Distribution by / (investment in) Joint Venture and | ||
| associates | (4,060) | (10,759) |
| Loans provided to Joint Venture and associates | (99,511) | (116,506) |
| Loans repaid by Joint Venture and associates | 13,493 | 15,321 |
| Net cash used in investing activities | (720,423) | (134,530) |
| Cash flows from financing activities | ||
| Dividends paid | (75,128) | (60,308) |
| Net Proceeds / (cash out) from the issue / | ||
| (repayment) of share capital | 294,901 | 198,320 |
| Net Proceeds from sale of own shares | 0 | 97,005 |
| Proceeds from loans | 594,149 | 0 |
| Loan repayments | (1,333) | (1,433) |
| Net cash used in financing activities | 812,589 | 233,584 |
| Net increase / (decrease) in cash and cash | ||
| equivalents | 4,693 | 46,886 |
| Cash and cash equivalents at the beginning of the | ||
| period | 222,356 | 176,148 |
| Effect of exchange rate fluctuations | (1,132) | (678) |
| Reclassification to (-) / from held for sale | (3,757) | 0 |
| Cash and cash equivalents at the end of the period | 222,160 | 222,356 |
The consolidated cash flow statement should be read in conjunction with the accompanying notes.
The chief operating decision maker is the person that allocates resources to and assesses the performance of the operating segments. The Group has determined that its chief operating decision-maker is the chief executive officer (CEO) of the Company. He allocates resources to and assesses the performance at business line and country level.
The segmentation for segment reporting within VGP is primarily by business line and secondly by geographical region.
For management purpose, the Group also presents financial information according to management breakdowns, based on these functional allocations of revenues and costs. These amounts are based on a number of assumptions, and accordingly are not prepared in accordance with IFRS audited consolidated financial statements of VGP NV for the years ended 31 December 2021 and 2020.
As the First Joint Venture reached its investment capacity, Allianz and VGP entered into a new joint venture agreement in December 2021 with a view to establish a new Fourth Joint Venture. The Fourth Joint Venture will become effective at the moment of its first closing, currently expected to occur during the second half of 2022. Consequently, such Fourth Joint Venture was not reflected in the business lines at year-end.
To allow VGP to acquire land plots on prime locations for future development, the Group entered into two additional strategic partnerships during 2021, i.e. in (i) a 50:50 joint venture with VUSA (the VGP Park Belartza Joint Venture), and (ii) a 50:50 joint venture with Revikon (the VGP Park Siegen Joint Venture).
Consequently, as from 2021 onwards the business lines have been amended to take these new two new development joint ventures into consideration.
The Group's investment or so-called rental business consists of operating profit generated by the completed and leased out projects of the Group's portfolio and the proportional share of the operating profit (excluding net valuation gains) of the completed and leased out projects of the Joint Ventures' portfolio. Revenues and expenses allocated to the rental business unit include 10% of the Group's property operating expenses; other income; other expenses, after deduction of expenses allocated to property development; and share in result of the joint ventures, excluding any revaluation result.
The Group's property development business consists of the net development result on the Group's development activities. Valuation gains (losses) on investment properties outside the First, Second and Fourth Joint Venture perimeter i.e. Latvia and Serbia are excluded, as they are assumed to be non-cash generating, on the basis that these assets are assumed to be kept in the Group's own portfolio for the foreseeable future. In addition, 90% of total property operating expenses are allocated to the property development business, as are administration expenses after rental business and property management expenses.
Property and asset management revenue includes asset management, property management and facility management income. Associated operating, administration and other expenses include directly allocated expenses from the respective asset management, property management and facility management service companies. The administrative expenses of the Czech and German property management companies have been allocated on a 50:50 basis between the rental business and the property and asset management business.
Breakdown summary of the business lines
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Investment EBITDA | 67,454 | 55,452 |
| Property development EBITDA | 552,341 | 342,536 |
| Property management and asset management EBITDA | 14,326 | 9,342 |
| Total operating EBITDA | 634,121 | 407,330 |
| In thousands of € | For the year ended 31 December 2021 | |||
|---|---|---|---|---|
| Property and asset |
||||
| Investment | Development | management | Total | |
| Gross rental income | 17,618 | - | - | 17,618 |
| Property operating expenses | (222) | (1,997) | - | (2,219) |
| Net rental income | 17,396 | (1,997) | - | 15,399 |
| Joint venture management fee income | - | - | 21,303 | 21,303 |
| Net valuation gains / (losses) on investment properties destined to the joint ventures |
- | 592,772 | - | 592,772 |
| Administration expenses | (4,270) | (38,434) | (6,977) | (49,681) |
| Share of joint ventures' adjusted operating profit after tax ¹ |
54,328 | - | - | 54,328 |
| Operating EBITDA | 67,454 | 552,341 | 14,326 | 634,121 |
| Other expenses | (5,000) | |||
| Depreciation and amortisation | (28) | (2,334) | (74) | (2,436) |
| Earnings before interest and tax | 67,426 | 550,007 | 14,252 | 626,685 |
| Net finance costs - Own | (12,653) | |||
| Net finance costs - Joint ventures and associates | 0 | 0 | 0 | (15,987) |
| Profit before tax | 598,045 | |||
| Current income taxes - Own | (232) | |||
| Current income taxes - Joint ventures and associates | (2,600) | |||
| Recurrent net income | 595,213 | |||
| Net valuation gains / (losses) on investment properties – other countries ² |
17,491 | |||
| Net valuation gains / (losses) on investment properties - Joint ventures and associates |
186,668 | |||
| Net fair value gain/(loss) on interest rate swaps and other derivatives - Joint ventures and associates |
645 | |||
| Deferred taxes -Own | (113,613) | |||
| Deferred taxes -Joint ventures and associates | (36,349) | |||
| Reported profit for the period | 650,055 |
¹ The adjustments to the share of profit from the joint ventures (at share) are composed of € 186.7 million of net valuation gains/(losses) on investment properties, € 1.0 million of net fair value loss on interest rate derivatives and € 36.4million of deferred taxes in respect of these adjustments.
² Relates to developments in countries outside of the JV perimeters i.e. Latvia and Serbia.
| In thousands of € | For the year ended 31 December 2020 | |||||
|---|---|---|---|---|---|---|
| Property | ||||||
| Investment | Development | and asset management |
Total | |||
| Gross rental income | 12,078 | - | - | 12,078 | ||
| Property operating expenses | (378) | (3,406) | - | (3,784) | ||
| Net rental income | 11,700 | (3,406) | - | 8,294 | ||
| Joint venture management fee income | - | - | 14,699 | 14,699 | ||
| Net valuation gains / (losses) on investment properties destined to the joint ventures |
- | 365,682 | - | 365,682 | ||
| Administration expenses | (2,123) | (19,740) | (5,357) | (27,220) | ||
| Share of joint ventures' adjusted operating profit after tax ¹ |
45,875 | - | - | 45,875 | ||
| Operating EBITDA | 55,452 | 342,536 | 9,342 | 407,330 | ||
| Other expenses | (4,000) | |||||
| Depreciation and amortisation | - | (1,996) | (85) | (2,081) | ||
| Earnings before interest and tax | 55,452 | 340,540 | 9,257 | 401,249 | ||
| Net finance costs - Own | (8,592) | |||||
| Net finance costs - Joint ventures and associates | (19,613) | |||||
| Profit before tax | 373,044 | |||||
| Current income taxes - Own | (870) | |||||
| Current income taxes - Joint ventures and associates | (1,792) | |||||
| Recurrent net income | 370,383 | |||||
| Net valuation gains / (losses) on investment properties – other countries ² |
679 | |||||
| Net valuation gains / (losses) on investment properties - Joint ventures and associates |
48,072 | |||||
| Net fair value gain/(loss) on interest rate swaps and other derivatives - Joint ventures and associates |
1,862 | |||||
| Deferred taxes -Own | (38,995) | |||||
| Deferred taxes -Joint ventures and associates | (11,062) | |||||
| Reported profit for the period | 370,939 |
¹ The adjustments to the share of profit from the joint ventures (at share) are composed of € 48.1 million of net valuation gains/(losses) on investment properties, € 1.9 million of net fair value loss on interest rate derivatives and € 11.1million of deferred taxes in respect of these adjustments.
² Relates to developments in countries outside of the JV perimeters i.e. Latvia.
This basic segmentation reflects the geographical markets in Europe in which VGP operates. VGP's operations are split into the individual countries where it is active. This segmentation is important for VGP as the nature of the activities and the customers have similar economic characteristics within those segments.
| 31.12.2021 In thousands of € |
Gross rental income¹ |
Net rental income¹ |
Share of joint venture's operating profit |
Operating EBITDA |
Investment properties Own |
Investment properties JV's at share |
Capital expenditure² |
|---|---|---|---|---|---|---|---|
| Western Europe | |||||||
| Germany | 42,442 | 33,297 | 29,721 | 317,886 | 1,020,758 | 1,148,592 | 244,805 |
| Spain | 6,267 | 3,979 | 3,836 | 49,137 | 293,260 | 99,535 | 100,921 |
| Austria | 663 | 280 | 506 | 26,359 | 47,360 | 14,465 | 33,312 |
| Netherland | 3,445 | 3,072 | 2,426 | 68,180 | 190,156 | 115,987 | 61,449 |
| Italy | 1,476 | 744 | 598 | 10,710 | 78,770 | 14,300 | 35,252 |
| France | - | (19) | - | (19) | - | - | - |
| Portugal | - | (228) | - | 5,150 | 24,873 | - | 13,056 |
| 54,293 | 41,125 | 37,087 | 477,403 | 1,655,177 | 1,392,879 | 488,794 | |
| Central and Eastern Europe |
|||||||
| Czech Republic | 13,507 | 12,529 | 11,765 | 97,861 | 238,596 | 249,989 | 65,284 |
| Slovakia | 2,056 | 1,003 | 1,795 | 40,045 | 154,426 | 36,303 | 68,568 |
| Hungary | 4,075 | 3,548 | 2,012 | 20,305 | 93,230 | 33,476 | 40,548 |
| Romania | 3,227 | 1,754 | 2,316 | 3,124 | 98,655 | 34,050 | 41,424 |
| 22,865 | 18,834 | 17,888 | 161,335 | 584,907 | 353,818 | 215,824 | |
| Baltics and Balkans | |||||||
| Estonia | - | - | - | - | - | - | - |
| Latvia | 2,891 | 2,691 | - | 2,558 | 72,840 | - | 15,288 |
| Serbia | 4 | (51) | - | (213) | 23,950 | - | 23,269 |
| Croatia | - | - | - | - | - | - | - |
| 2,895 | 2,640 | - | 2,345 | 96,790 | - | 38,557 | |
| Other³ | - | 8,119 | (647) | (6,962) | - | 73 | - |
| Total | 80,053 | 70,718 | 54,328 | 634,121 | 2,336,874 | 1,746,770 | 743,176 |
¹ Includes joint venture at share.
² Capital expenditures includes additions and acquisition of investment properties and development land but does not include tenant incentives, letting fees, and capitalised interest. Capital expenditure directly incurred for the own portfolio amounts to € 719.3 million (of which € 299.1 related to land acquisition) and amounts to € 23.9 million on development properties of the First and Second Joint Venture.
³ Other includes the Group central costs and costs relating to the operational business which are not specifically geographically allocated.
| 31 December 2020 In thousands of € |
Gross rental income¹ |
Net rental income¹ |
Share of joint ventures' operating EBITDA |
Operating EBITDA (Incl. JV at share) |
Investment properties Own |
Investment properties JV at share |
Capital expenditure² |
|---|---|---|---|---|---|---|---|
| Western Europe | |||||||
| Germany | 33,501 | 27,475 | 27,072 | 313,131 | 506,518 | 935,512 | 294,362 |
| Spain | 3,966 | 2,352 | 2,126 | 21,849 | 140,472 | 75,730 | 44,189 |
| Austria | 602 | 434 | 504 | 103 | 13,009 | 12,575 | 755 |
| Netherlands | 2,574 | 1,497 | 127 | 42,496 | 60,414 | 107,590 | 30,348 |
| Italy | 1,053 | 1,424 | (19) | 2,515 | 31,164 | - | 21,706 |
| Portugal | - | (67) | - | (516) | 5,096 | 12,415 | 1,666 |
| 41,695 | 33,114 | 29,809 | 379,576 | 756,673 | 1,143,821 | 393,026 | |
| Central and Eastern Europe |
|||||||
| Czech Republic | 11,713 | 10,900 | 10,729 | 21,775 | 91,147 | 207,745 | 39,087 |
| Slovakia | 1,847 | 1,360 | 1,625 | 5,517 | 46,422 | 30,813 | 13,183 |
| Hungary | 3,179 | 2,779 | 1,954 | 1,901 | 35,026 | 29,033 | 9,199 |
| Romania | 2,630 | 1,765 | 2,273 | 2,154 | 52,674 | 33,650 | 24,396 |
| 19,368 | 16,804 | 16,580 | 31,346 | 225,269 | 301,241 | 85,865 | |
| Baltics | |||||||
| Latvia | 3,109 | 2,921 | - | 2,790 | 40,519 | - | 931 |
| Other³ | - | 2,415 | (515) | (6,383) | - | - | - |
| - | |||||||
| Total | 64,172 | 55,253 | 45,874 | 407,330 | 1,022,461 | 1,445,062 | 479,823 |
¹ Includes joint venture at share.
² Capital expenditures includes additions and acquisition of investment properties and development land but does not include tenant incentives, letting fees, and capitalised interest. Capital expenditure directly incurred for the own portfolio amounts to € 416.1 million (of which € 299.1 related to land acquisition) and amounts to € 63.7 million on development properties of the First and Second Joint Venture.
³ Other includes the Group central costs and costs relating to the operational business which are not specifically geographically allocated.
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Rental income from investment properties | 12,478 | 10,087 |
| Straight lining of lease incentives | 5,140 | 1,991 |
| Total gross rental income | 17,618 | 12,078 |
| Property and facility management income | 14,213 | 10,743 |
| Development management income | 7,090 | 3,956 |
| Joint ventures' management fee income | 21,303 | 14,699 |
| Service charge income | 5,334 | 2,781 |
| Total revenue | 44,255 | 29,558 |
The Group leases out its investment property under operating leases. The operating leases are generally for terms of more than 5 years. The gross rental income reflects the full impact of the income generating assets delivered during t 2021. During 2021 rental income included € 0.4 million of rent for the period 1 January 2021 to 15 June 2021 related to the property portfolio sold during the eighth closing with the First Joint Venture on 15 June 2021. During the year 2020 the gross rental income included (i) € 0.3 million of rent for the period 1 January 2020 to 15 October 2020 related to the property portfolio sold during the seventh closing with the First Joint Venture on 15 October 2020, and (ii) € 3.7 million of rent for the period 1 January 2020 to 16 November 2020 related to the property portfolio sold during the second closing with the Second Joint Venture 2 joint venture on 16 November 2020
At the end of December 2021, the Group (including the joint ventures) had annualised committed leases of € 256.1 million1 compared to € 185.2 million2 as at 31 December 2020.
The breakdown of future lease income on an annualised basis for the own portfolio was as follows:
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Less than one year | 104,759 | 41,713 |
| Between one and five years | 397,792 | 155,977 |
| More than five years | 563,840 | 215,843 |
| Total | 1,066,391 | 413,533 |
1 € 151.1 million related to the JV Property Portfolio and € 105.0 million related to the Own Property Portfolio.
2 € 143.5 million related to the JV Property Portfolio and € 41.7 million related to the Own Property Portfolio..
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Unrealised valuation gains / (losses) on investment properties | 464,478 | 188,863 |
| Unrealised valuation gains / (losses) on disposal group held for sale | 134,248 | 11,358 |
| Realised valuation gains / (losses) on disposal of subsidiaries and | ||
| investment properties | 11,535 | 166,140 |
| Total | 610,261 | 366,361 |
The own property portfolio, excluding development land but including the assets being developed on behalf of the Joint Ventures, is valued by the valuation expert at 31 December 2021 based on a weighted average yield of 4.64% (compared to 5.51% as at 31 December 2020) applied to the contractual rents increased by the estimated rental value on unlet space. A 0.10% variation of this market rate would give rise to a variation of the total portfolio value of € 52.3 million.
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Wages and salaries | (22,441) | (9,876) |
| Audit, legal and other advisors | (19,810) | (15,593) |
| Other administrative expenses | (7,430) | (1,751) |
| Depreciation | (2,431) | (2,076) |
| Total | (52,112) | (29,296) |
Increase in wages, salaries and other advisors mainly relate additional set up of variable remuneration and LTIP accruals in an amount of € 16.0 million for the year ended 31 December 2021.
The other administrative expenses include € 3.5 million of travel costs. Such costs were included under property operating expenses in the previous year in an amount of € 1.9 million.
The table below presents a summary Income Statement of the Group's joint ventures with (i) Allianz Joint Ventures and the associates; and (ii) the Development Joint Ventures, all of which are accounted for using the equity method. For a detailed overview of the Joint Ventures, please refer to section Strategy – Strategic partnerships included in the first part of this annual report.
VGP NV holds 50% directly in all Joint Ventures and holds another 5.1% in the subsidiaries of the First Joint Venture (10.1% in the subsidiaries of the Fourth Joint Venture) holding assets in Germany. The Fourth Joint Venture – which is intended to replace the investment capacity of the First Joint Venture – will only become effective as from its first closing, currently expected to take place during the second half of 2022, and consequently the below mentioned table does not include the Fourth Joint Venture.
| In thousands of € | VGP European Logistics (excl. minorities) at 100% |
VGP European Logistics 2 at 100% |
VGP Park München at 100% |
Development Joint Ventures at 100 % |
Joint Ventures at 50% |
VGP European Logistics German Asset Companies at 5.1% |
2021 |
|---|---|---|---|---|---|---|---|
| Gross rental income | 92,432 | 23,021 | 3,152 | - | 59,302 | 3,132 | 62,435 |
| Property Operating expenses |
|||||||
| - underlying property operating expenses |
(1,157) | (1,064) | (56) | 45 | (1,116) | (34) | (1,150) |
| - property management fees |
(7,913) | (2,814) | (626) | - | (5,676) | (289) | (5,966) |
| Net rental income | 83,362 | 19,143 | 2,470 | 45 | 52,510 | 2,809 | 55,319 |
| Net valuation gains / (losses) on investment properties |
304,442 | 46,771 | - | - | 175,606 | 11,063 | 186,670 |
| Administration expenses |
(1,474) | (274) | (89) | (73) | (955) | (40) | (995) |
| Operating profit | 386,330 | 65,640 | 2,381 | (28) | 227,161 | 13,832 | 240,994 |
| Net financial result | (21,423) | (7,955) | 493 | (231) | (14,558) | (784) | (15,342) |
| Taxes | (62,623) | (14,175) | 2,944 | - | (36,927) | (2,022) | (38,949) |
| Profit for the period | 302,283 | 43,510 | 5,818 | (259) | 175,676 | 11,027 | 186,703 |
| In thousands of € | VGP European Logistics (excl. minorities) at 100% |
VGP European Logistics 2 at 100% |
VGP Park München at 100% |
Development Joint Ventures at 100 % |
Joint Ventures at 50% |
VGP European Logistics German Asset Companies at 5.1% |
2020 |
|---|---|---|---|---|---|---|---|
| Gross rental income | 84,896 | 12,251 | 1,283 | - | 49,215 | 2,880 | 52,095 |
| Property Operating expenses |
|||||||
| - underlying property operating expenses |
(419) | (730) | (154) | (48) | (675) | (11) | (687) |
| - property management fees |
(6,850) | (1,311) | (241) | - | (4,201) | (246) | (4,447) |
| Net rental income | 77,626 | 10,210 | 888 | (48) | 44,338 | 2,624 | 46,962 |
| Net valuation gains / (losses) on investment properties |
82,403 | 5,847 | - | - | 44,125 | 3,947 | 48,072 |
| Administration expenses |
(1,440) | (327) | (75) | (270) | (1,056) | (36) | (1,092) |
| Operating profit | 158,589 | 15,730 | 813 | (318) | 87,407 | 6,535 | 93,942 |
| Net financial result | (24,855) | (6,054) | (2,878) | - | (16,893) | (857) | (17,751) |
| Taxes | (20,909) | (2,864) | (195) | - | (11,984) | (869) | (12,853) |
| Profit for the period | 112,826 | 6,812 | (2,260) | (318) | 58,530 | 4,808 | 63,338 |
| First Joint Venture (excl. minorities) |
Second Joint Venture |
Third Joint Venture |
Development Joint Ventures |
Joint Ventures |
First Joint Venture's German Asset Companies |
||
|---|---|---|---|---|---|---|---|
| In thousands of € | at 100% | at 100% | at 100% | at 100 % | at 50% | at 5.1% | 2021 |
| Investment properties | 2,215,851 | 451,500 | 551,441 | 105,322 | 1,662,057 | 84,713 | 1,746,770 |
| Other assets | 41 | 54 | 3,531 | 75 | 1,850 | - | 1,851 |
| Total non-current assets |
2,215,892 | 451,554 | 554,972 | 105,397 | 1,663,908 | 84,713 | 1,748,620 |
| Trade and other receivables |
10,920 | 8,044 | 5,257 | 1,247 | 12,734 | 395 | 13,129 |
| Cash and cash equivalents |
59,747 | 19,192 | 16,691 | 421 | 48,025 | 1,836 | 49,862 |
| Total current assets | 70,667 | 27,236 | 21,948 | 1,668 | 60,760 | 2,231 | 62,990 |
| Total assets | 2,286,560 | 478,790 | 576,920 | 107,065 | 1,724,667 | 86,943 | 1,811,611 |
| Non-current financial debt |
892,941 | 239,304 | 271,522 | 53,774 | 728,771 | 35,325 | 764,095 |
| Other non-current financial liabilities |
399 | (15) | - | - | 192 | - | 192 |
| Other non-current liabilities |
6,158 | 2,709 | - | 950 | 4,909 | 141 | 5,049 |
| Deferred tax liabilities | 207,402 | 40,578 | 2,408 | 583 | 125,486 | 7,331 | 132,816 |
| Total non-current liabilities |
1,106,901 | 282,576 | 273,930 | 55,307 | 859,357 | 42,796 | 902,153 |
| Current financial debt | 23,588 | 5,033 | - | - | 14,310 | 744 | 15,055 |
| Trade debts and other current liabilities |
18,505 | 7,203 | 41,459 | 4,604 | 35,885 | 402 | 36,288 |
| Total current liabilities |
42,093 | 12,236 | 41,459 | 4,604 | 50,196 | 1,146 | 51,342 |
| 0 | |||||||
| Total liabilities | 1,148,994 | 294,812 | 315,389 | 59,911 | 909,553 | 43,942 | 953,495 |
| Net assets | 1,137,566 | 183,978 | 261,531 | 47,154 | 815,114 | 43,001 | 858,116 |
| In thousands of € | VGP European Logistics (excl. minorities) at 100% |
VGP European Logistics 2 at 100% |
VGP Park München at 100% |
LPM at 100 % |
Joint Ventures at 50% |
VGP European Logistics German Asset Companies at 5.1% |
2020 |
|---|---|---|---|---|---|---|---|
| Investment properties | 1,847,545 | 403,423 | 418,918 | 80,496 | 1,375,191 | 69,871 | 1,445,062 |
| Other assets | 353 | 113 | - | - | 233 | 19 | 252 |
| Total non-current assets |
1,847,898 | 403,536 | 418,918 | 80,496 | 1,375,424 | 69,890 | 1,445,314 |
| Trade and other receivables |
11,372 | 8,157 | 8,451 | 24 | 14,002 | 449 | 14,451 |
| Cash and cash equivalents |
56,724 | 17,284 | 14,368 | 15 | 44,196 | 1,945 | 46,140 |
| Total current assets | 68,096 | 25,441 | 22,819 | 39 | 58,198 | 2,394 | 60,591 |
| Total assets | 1,915,995 | 428,977 | 441,737 | 80,535 | 1,433,622 | 72,283 | 1,505,905 |
| Non-current financial debt |
898,911 | 245,188 | 165,528 | 49,779 | 679,703 | 34,574 | 714,277 |
| Other non-current financial liabilities |
1,537 | 108 | - | - | 823 | - | 823 |
| Other non-current liabilities |
6,819 | 2,561 | 1,727 | - | 5,553 | 164 | 5,718 |
| Deferred tax liabilities | 143,377 | 27,749 | 1,821 | - | 86,474 | 5,165 | 91,638 |
| Total non-current liabilities |
1,050,644 | 275,606 | 169,076 | 49,779 | 772,552 | 39,903 | 812,456 |
| Current financial debt | 22,509 | 3,532 | - | - | 13,020 | 707 | 13,728 |
| Trade debts and other current liabilities |
17,888 | 9,370 | 16,947 | 4,750 | 24,477 | 471 | 24,949 |
| Total current liabilities |
40,396 | 12,902 | 16,947 | 4,750 | 37,498 | 1,179 | 38,676 |
| Total liabilities | 1,091,040 | 288,508 | 186,023 | 54,529 | 810,050 | 41,082 | 851,132 |
| Net assets | 824,955 | 140,469 | 255,714 | 26,006 | 623,572 | 31,201 | 654,773 |
VGP entered into four 50:50 joint ventures with Allianz which are set up according to a similar structure. The First Joint Venture recorded one closing during the year. On 15 June 2021, the First Joint Venture completed its eighth and final closing, whereby the First Joint Venture acquired 4 logistic buildings, including 2 buildings in a new VGP parks and another 2 newly completed buildings (in parks which were previously transferred to the First Joint Venture). Following this closing the First Joint Venture reached its expanded investment target. The First Joint Venture will maintain its existing portfolio with VGP, continuing to act as property, facility and asset manager.
As the First Joint Venture reached its investment capacity, Allianz and VGP entered into a new joint venture agreement in December 2021 with a view to establish a new Fourth Joint Venture. The Fourth Joint Venture will become effective at the moment of its first closing, currently expected to occur during the second half of 2022. The Fourth Joint Venture's objective is to build a platform of new, grade A logistics and industrial properties with a key focus on expansion within the same geographical scope as the First Joint Venture, i.e. core German markets and high growth CEE markets (of Hungary, the Czech Republic and the Slovak Republic), with the aim of delivering stable income-driven returns with potential for capital appreciation.
To allow VGP to acquire land plots on prime locations for future development, the Group has entered into three strategic partnerships, i.e. in (i) a 50:50 joint venture with Roozen (the LPM Joint Venture) entered into during 2020, (ii) a 50:50 joint venture with VUSA (the VGP Park Belartza Joint Venture), and a 50:50 joint venture with Revikon (the VGP Park Siegen Joint Venture) both entered into during 2021. The Group considers these Development Joint Ventures as an add-on source of land sourcing for land plots which would otherwise not be accessible to the Group.
The Joint Ventures' property portfolio, excluding development land and buildings being constructed by VGP on behalf of the Joint Ventures, is valued at 31 December 2021 based on a weighted average yield of 4.28 %1 (compared to 4.76% as at 31 December 2020). A 0.10% variation of this market rate would give rise to a variation of the Joint Venture portfolio value (at 100%) of € 79.2 million.
The (re)valuation of the First and Second Joint Ventures' portfolio was based on the appraisal report of the property expert Jones Lang LaSalle.
| in thousands of € | 2021 | 2020 |
|---|---|---|
| Shareholder loans to First Joint Venture | 42,183 | 51,672 |
| Shareholder loans to Second Joint Venture | 15,963 | 15,351 |
| Shareholder loans to Third Joint Venture | 135,908 | 82,911 |
| Shareholder loans to Development Joint Ventures | 52,940 | 29,030 |
| Shareholder loans to associates (subsidiaries of First Joint Venture) | 16,976 | 17,871 |
| Construction and development loans to subsidiaries of First Joint Venture | 36,769 | 32,507 |
| Construction and development loans to subsidiaries of Second Joint Venture | 46,192 | 37,226 |
| Construction and development loans reclassified as assets held for sale | (82,961) | (69,733) |
| Other non-current receivables | 935 | 67,203 |
| Total | 264,905 | 264,038 |
Other non-current receivables relate to non-current balance due by the shareholder of the LPM Joint Venture. The 2020 balance related to the non-current balance due by Allianz Real Estate in respect of the acquisition of VGP Park München and which shall become payable by Allianz Real Estate in different instalments based on the completion dates of the respective buildings. As it is expected that these buildings will be completed during the second half of 2022 the this balance balance was reclassified as Other current receivables in 2021.
| in thousands of € | 2021 | 2020 |
|---|---|---|
| As at 1 January | 654,773 | 387,246 |
| Additions | 23,770 | 211,091 |
| Result of the year | 186,703 | 63,338 |
| Repayment of equity | (7,130) | (6,902) |
| As at the end of the period | 858,116 | 654,773 |
1 The First and Second Joint Venture have been valued by an independent valuation expert. The valuation of the Third Joint Venture is based on the agreed proportional purchase price with Allianz Real Estate. The LPM Joint Venture and VGP Park Belartza Joint Venture only hold development land and hence have been excluded from the weighted average yield calculation.
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Bank and other interest income | - | 2 |
| Interest income - loans to joint venture and associates | 12,318 | 9,292 |
| Other financial income | 4 | 25 |
| Financial income | 12,322 | 9,319 |
| Bond interest expense | (31,251) | (24,706) |
| Bank interest expense – variable debt | (2,825) | (1,871) |
| Interest capitalised into investment properties | 13,212 | 11,881 |
| Net foreign exchange expenses | (786) | (282) |
| Other financial expenses | (3,326) | (2,933) |
| Financial expenses | (24,976) | (17,911) |
| Net financial costs | (12,654) | (8,592) |
| In number | 2021 | 2020 |
|---|---|---|
| Weighted average number of ordinary shares (basic) | 20,696,064 | 19,960,099 |
| Dilution | - | - |
| Weighted average number of ordinary shares (diluted) | 20,696,064 | 19,960,099 |
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Result for the period attributable to the Group and to ordinary | ||
| shareholders | 650,055 | 370,939 |
| Earnings per share (in €) - basic | 31.41 | 18.58 |
| Earnings per share (in €) - diluted | 31.41 | 18.58 |
In October 2019, the EPRA published its new Best Practice Recommendations which set out the financial indicators listed real estate companies should disclose so as to provide more transparency across the European listed sector. The EPRA NAV and EPRA NNNAV were consequently replaced by three new Net Asset Value indicators: Net Reinstatement Value (NRV), Net Tangible Assets (NTA) and Net Disposal Value (NDV). The EPRA NAV indicators are obtained by adjusting the IFRS NAV in such a way that stakeholders get the most relevant information about the fair value of assets and liabilities. The three different EPRA NAV indicators are calculated on the basis of the following scenarios:
| 31 December 2021 | EPRA NRV | EPRA NTA | EPRA NDV | EPRA NAV | EPRA NNNAV |
|---|---|---|---|---|---|
| In thousands of € | |||||
| IFRS NAV | 2,175,565 | 2,175,565 | 2,175,565 | 2,175,565 | 2,175,565 |
| IFRS NAV per share (in euros) | 99.65 | 99.65 | 99.65 | 99.65 | 99.65 |
| NAV at fair value (after the exercise of options, convertibles and other equity) |
2,175,565 | 2,175,565 | 2,175,565 | 2,175,565 | 2,175,565 |
| To exclude: | |||||
| Deferred tax | 160,176 | 160,176 | - | 160,176 | - |
| Intangibles as per IFRS balance sheet | - | (1,051) | - | - | |
| Subtotal | 2,335,741 | 2,334,690 | 2,175,565 | 2,335,741 | 2,175,565 |
| Fair value of fixed interest rate debt | - | - | (7,470) | - | (7,470) |
| Real estate transfer tax | 63,285 | - | - | - | - |
| NAV | 2,399,026 | 2,334,690 | 2,168,095 | 2,335,741 | 2,168,095 |
| Number of shares | 21,833,050 | 21,833,050 | 21,833,050 | 21,833,050 | 21,833,050 |
| NAV / share (in euros) | 109.88 | 106.93 | 99.30 | 106.98 | 99.30 |
| 31 December 2020 | EPRA NRV | EPRA NTA | EPRA NDV | EPRA NAV | EPRA NNNAV |
|---|---|---|---|---|---|
| In thousands of € | |||||
| IFRS NAV | 1,305,737 | 1,305,737 | 1,305,737 | 1,305,737 | 1,305,737 |
| IFRS NAV per share (in euros) | 63.44 | 63.44 | 63.44 | 63.44 | 63.44 |
| NAV at fair value (after the exercise of options, convertibles and other equity) |
1,305,737 | 1,305,737 | 1,305,737 | 1,305,737 | 1,305,737 |
| To exclude: | |||||
| Deferred tax | 48,770 | 48,770 | - | 48,770 | - |
| Intangibles as per IFRS balance sheet | - | (557) | - | - | |
| Subtotal | 1,354,507 | 1,353,950 | 1,305,737 | 1,354,507 | 1,305,737 |
| Fair value of fixed interest rate debt | - | - | (8,021) | - | (8,021) |
| Real estate transfer tax | 25,019 | - | - | - | - |
| NAV | 1,379,526 | 1,353,950 | 1,297,716 | 1,354,507 | 1,297,716 |
| Number of shares | 20,583,050 | 20,583,050 | 20,583,050 | 20,583,050 | 20,583,050 |
| NAV / share (in euros) | 67.02 | 65.78 | 63.05 | 65.81 | 63.05 |
| 2021 | ||||||
|---|---|---|---|---|---|---|
| Under | Development | |||||
| In thousands of € | Completed | Construction | land | Total | ||
| As at 1 January | 166,410 | 456,681 | 297,060 | 920,151 | ||
| Capex | 163,678 | 231,983 | 24,499 | 420,160 | ||
| Acquisitions | - | 17,935 | 281,211 | 299,146 | ||
| Capitalised interest | 777 | 12,435 | - | 13,212 | ||
| Capitalised rent free and agent's fee | 7,995 | 2,045 | 676 | 10,716 | ||
| Sales and disposals | (36,419) | - | - | (36,419) | ||
| Transfer on start-up of development | - | 177,545 | (177,545) | - | ||
| Transfer on completion of development | 318,947 | (318,947) | - | - | ||
| Net gain from value adjustments in | ||||||
| investment properties | 124,443 | 436,253 | 12,457 | 573,153 | ||
| Reclassification to held for sale | (183,100) | (160,770) | (3,735) | (347,605) | ||
| As at 31 December | 562,730 | 855,160 | 434,624 | 1,852,514 |
| 2020 | ||||||
|---|---|---|---|---|---|---|
| In thousands of € | Under | Development | ||||
| Completed | Construction | land | Total | |||
| As at 1 January | 94,056 | 338,266 | 360,623 | 792,945 | ||
| Capex | 67,452 | 201,226 | 7,353 | 276,031 | ||
| Acquisitions | - | 9,851 | 130,256 | 140,107 | ||
| Capitalised interest | 3,902 | 7,934 | 45 | 11,881 | ||
| Capitalised rent free and agent's fee | 3,245 | 2,351 | 32 | 5,628 | ||
| Sales and disposals | (191,596) | (292,107) | (10,083) | (493,786) | ||
| Transfer on start-up of development | - | 193,574 | (193,574) | - | ||
| Transfer on completion of development | 155,018 | (155,018) | - | - | ||
| Net gain from value adjustments in | 36,477 | 150,604 | 2,408 | 189,489 | ||
| investment properties | ||||||
| Reclassification to held for sale | (2,144) | - | - | (2,144) | ||
| As at 31 December | 166,410 | 456,681 | 297,060 | 920,151 |
As at 31 December 2021 investment properties totalling € 30.8 million (same as at 31 December 2020) were pledged in favour the Group's banks.
| In thousands of € | 2021 | 2020 |
|---|---|---|
| Investment property | 54,496 | 608,483 |
| Trade and other receivables | 678 | 16,011 |
| Cash and cash equivalents | 2,172 | 24,057 |
| Non-current financial debt | 0 | - |
| Shareholder Debt | (41,658) | (372,515) |
| Other non-current financial liabilities | (502) | (2,229) |
| Deferred tax liabilities | (2,192) | (31,459) |
| Trade debts and other current liabilities | (1,108) | (26,637) |
| Total net assets disposed | 11,886 | 215,711 |
| Realised valuation gain on sale | 12,136 | 167,111 |
| Total non-controlling interest retained by VGP | (1,108) | (1,989) |
| Shareholder loans repaid at closing | 40,362 | 313,415 |
| Equity contribution | (11,457) | (191,454) |
| Total consideration | 51,819 | 502,794 |
| Consideration to be received - Third Joint Venture | (73,093) | |
| Consideration paid in cash | 51,819 | 429,701 |
| Cash disposed | (2,172) | (24,057) |
| Net cash inflow from divestments of subsidiaries and investment | ||
| properties | 49,647 | 405,644 |
The cash flow from disposal of subsidiaries and investment properties relate to the different closings with the Allianz Joint Ventures. In 2021 an eight closing of the First Joint Venture took place.
The table below includes the proportional consolidated income statement interest of the Group in the Joint Ventures. The interest held directly by the Group (5.1%) in the German asset companies of the Joint Ventures have been included in the 50% Joint Ventures' figures (share of VGP).
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| In thousands of € | Group | Joint Ventures |
Total | Group | Joint Ventures |
Total |
| Gross rental income | 17,618 | 62,435 | 80,053 | 12,078 | 52,095 | 64,173 |
| Property operating expenses | (2,219) | (7,116) | (9,335) | (3,784) | (5,133) | (8,917) |
| Net rental and related income | 15,399 | 55,319 | 70,718 | 8,294 | 46,962 | 55,256 |
| Joint venture management fee income |
21,303 | 0 | 21,303 | 14,699 | - | 14,699 |
| Net valuation gains / (losses) on investment properties |
610,261 | 186,670 | 796,931 | 366,361 | 48,072 | 414,433 |
| Administration expenses | (52,112) | (995) | (53,107) | (29,296) | (1,092) | (30,388) |
| Other expenses | (5,000) | 0 | (5,000) | (4,000) | - | (4,000) |
| Operating profit / (loss) | 589,851 | 240,994 | 830,845 | 356,058 | 93,942 | 450,000 |
| Net financial result | (12,654) | (15,342) | (27,996) | (8,593) | (17,751) | (26,344) |
| Taxes | (113,845) | (38,949) | (152,794) | (39,865) | (12,853) | (52,718) |
| Profit for the period | 463,352 | 186,703 | 650,055 | 307,600 | 63,338 | 370,938 |
The table below includes the proportional consolidated balance sheet interest of the Group in the Joint Ventures. The interest held directly by the Group (5.1%) in the German asset companies of the Joint Ventures have been included in the 50% Joint Ventures' figures (share of VGP).
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| In thousands of € | Group | Joint Ventures |
Total | Group | Joint Ventures |
Total |
| Investment properties | 1,852,514 | 1,746,770 | 3,599,284 | 920,151 | 1,445,062 | 2,365,213 |
| Investment properties included in assets held for sale |
484,360 | - | 484,360 | 102,309 | - | 102,309 |
| Total investment properties | 2,336,874 | 1,746,770 | 4,083,644 | 1,022,460 | 1,445,062 | 2,467,522 |
| Other assets | 300,050 | 1,851 | 301,901 | 283,325 | 252 | 283,575 |
| Total non-current assets | 2,636,924 | 1,748,620 | 4,385,544 | 1,305,785 | 1,445,314 | 2,751,097 |
| Trade and other receivables | 148,022 | 13,129 | 161,151 | 44,828 | 14,451 | 59,279 |
| Cash and cash equivalents | 222,160 | 49,862 | 272,022 | 222,356 | 46,140 | 268,496 |
| Disposal group held for sale | 17,517 | - | 17,517 | - | - | - |
| Total current assets | 387,699 | 62,990 | 450,689 | 267,184 | 60,591 | 327,775 |
| Total assets | 3,024,623 | 1,811,611 | 4,836,234 | 1,572,969 | 1,505,905 | 3,078,872 |
| Non-current financial debt | 1,340,609 | 764,095 | 2,104,704 | 748,796 | 714,277 | 1,463,073 |
| Other non-current financial liabilities |
- | 192 | 192 | - | 823 | 823 |
| Other non-current liabilities | 32,459 | 5,049 | 37,508 | 10,461 | 5,718 | 16,179 |
| Deferred tax liabilities | 112,295 | 132,816 | 245,111 | 43,813 | 91,638 | 135,451 |
| Total non-current liabilities | 1,485,363 | 902,153 | 2,387,516 | 803,070 | 812,456 | 1,615,526 |
| - | ||||||
| Current financial debt | 44,147 | 15,055 | 59,202 | 34,468 | 13,728 | 48,196 |
| Trade debts and other current liabilities |
107,510 | 36,288 | 143,798 | 77,725 | 24,949 | 102,677 |
| Liabilities related to disposal group held for sale |
70,154 | - | 70,154 | 6,742 | - | 6,742 |
| Total current liabilities | 221,811 | 51,342 | 273,153 | 118,935 | 38,676 | 157,614 |
| Total liabilities | 1,707,174 | 953,495 | 2,660,669 | 922,005 | 851,132 | 1,773,140 |
| Net assets | 1,317,449 | 858,116 | 2,175,565 | 650,964 | 654,773 | 1,305,737 |
Means, (i) in relation to the First Joint Venture, Allianz AZ Finance VII Luxembourg S.A., SAS Allianz Logistique S.A.S.U. and Allianz Benelux SA (all affiliated companies of Allianz Real Estate GmbH) taken together, (ii) in relation to the Second Joint Venture, Allianz AZ Finance VII Luxembourg S.A., (iii) in relation to the Third Joint Venture, Allianz Pensionskasse A.G., Allianz Versorgungskasse Versicherungsverein A.G., Allianz Lebensversicherungs A.G. and Allianz Private Krankenversicherungs A.G., and (iv) in relation to the Fourth Joint Venture, Allianz Finance IX Luxembourg S.A. and YAO NEWREP Investments S.A.;
Means either and each of (i) the First Joint Venture; (ii) the Second Joint Venture; (iii) the Third Joint Venture; and (iv) the Fourth Joint Venture;
Means either and each of (i) the joint venture agreement made between Allianz and the VGP NV in relation to the First Joint Venture; (ii) the joint venture agreement made between Allianz and the VGP NV in relation to the Second Joint Venture; (iii) the joint venture agreement made between Allianz and the VGP NV in relation to the Third Joint Venture; and (iv) the joint venture agreement made between Allianz and the VGP NV in relation to the Fourth Joint Venture;
The annualised committed leases or the committed annualised rent income represents the annualised rent income generated or to be generated by executed lease – and future lease agreements.
Means either and each of the subsidiaries of the First Joint Venture or Fourth Joint Venture in which VGP NV holds a direct 5.1% (10.1%) participation,
the € 150 million fixed rate bond maturing on 2 April 2023 which carries a coupon of 2.75% per annum (listed on the regulated market of Euronext Brussels with ISIN Code: BE0002677582 – Common Code: 208152149).
Means the € 600 million fixed rate bond maturing on 8 April 2029 which carries a coupon of 1.50% per annum (listed on the Euro MFT Market in Luxembourg with ISIN Code: BE6327721237 – Common Code: 232974028.
means the Belgian Code of Companies and Associations dated 23 March 2019 (Wetboek van vennootschappen en verenigingen/Code des sociétés et associations), as amended or restated from time to time.
Drawn up by the Corporate Governance Commission and including the governance practices and provisions to be met by companies under Belgian Law which shares are listed on a regulated market (the"2020 Code"). The Belgian Corporate Governance Code is available online at www.corporategovernancecommittee.be.
First option to terminate a lease.
The gross rent as contractually agreed in the lease on the date of signing.
The non-cash assets contributed to a company at the time of formation or when the capital is increased.
The code of conduct containing rules that must be complied with by the members of the Board of Directors, the members of executive management, and all employees of the VGP Group, who by virtue of their position, possess information they know or should know is insider information.
As a borrower, VGP wishes to protect itself from any rise in interest rates. This interest rate risk can be partially hedged by the use of derivatives (such as interest rate swap contracts).
Means either and each of (i) the LPM Joint Venture; (ii) the VGP Park Belartza Joint Venture; and (iii) the VGP Park Siegen Joint Venture.
Means either and each of (i) the joint venture agreement made between Roozen and VGP in relation to the LPM Joint Venture; (ii) the joint venture agreement made between Revikon and VGP in relation to the VGP Park Siegen Joint Venture; and (iii) the joint venture agreement made between VUSA and the VGP in relation to the VGP Park Belartza Joint Venture
This is a valuation method based on a detailed projected revenue flow that is discounted to a net current value at a given discount rate based on the risk of the assets to be valued.
The European Public Real Estate Association, a real estate industry body, which has issued Best Practices Recommendations Guidelines in order to provide consistency and transparency in real estate reporting across Europe.
Is a weighted average of the net initial yield and reversionary yield and represents the return a property will produce based upon the timing of the income received. The true equivalent yield assumes rents are received quarterly in advance. The nominal equivalent assumes rents are received annually in arrears.
Estimated rental value (ERV) is the external valuers' opinion as to the open market rent which, on the date of valuation, could reasonably be expected to be obtained on a new letting or rent review of a property.
Is the capitalisation rate applied to the net income at the end of the discounted cash flow model period to provide a capital value or exit value which an entity expects to obtain for an asset after this period.
Means the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction, as defined in IAS 40. In addition, market value must reflect current rental agreements, the reasonable assumptions in respect of potential rental income and expected costs;
VGP European Logistics S.à r.l., the 50:50 joint venture between VGP and Allianz.
VGP European Logistics 3 S.a .r.l. (currently named VGP DEU 44 S.a .r.l.), the future 50:50 joint venture between the Issuer and Allianz.
Means the Financial Services and Markets Authority (Autoriteit voor Financiële Diensten en Markten / Autorité des services et marchés financiers).
Is a ratio calculated as consolidated net financial debt divided by total equity and liabilities or total assets.
International Accounting Standards / International Financial Reporting Standards. The international accounting standards drawn up by the International Accounting Standards Board (IASB), for the preparation of financial statements.
The rent is contractually adjusted annually on the anniversary of the contract effective date on the basis of the inflation rate according to a benchmark index in each specific country.
Any information not publicly disclosed that is accurate and directly or indirectly relates to one or more issuers of financial instruments or one or more financial instruments and that, if it were publicly disclosed, could significantly affect the price of those financial instruments (or financial instruments derived from them).
The value of the portfolio, including transaction costs, as appraised by independent property experts
means either and each of (i) the Allianz Joint Ventures; and (ii) the Development Joint Ventures.
Means the € 75 million fixed rated bond maturing on 6 July 2024 which carries a coupon of 3.25% per annum (listed on the regulated market of Euronext Brussels with ISIN Code: BE0002287564 – Common Code: 163738783.
Means either and each of (i) the Allianz Joint Venture Agreements and; (ii) the Development JVA's.
The date on which a lease can be cancelled.
Means LPM Holding B.V., the 50:50 joint venture between the Company and Roozen.
Means the € 80 million fixed rate bond maturing on 30 March 2025 which carries a coupon of 3.35% per annum (unlisted with ISIN Code: BE6294349194 – Common Code: 159049558).
Means the € 190 million fixed rate bond maturing on 19 March 2026 which carries a coupon of 3.50% per annum (listed on the regulated market of Euronext Brussels with ISIN Code: BE0002611896 – Common Code: 187793777).
Closing stock market price multiplied by the total number of outstanding shares on that date.
The value of the total assets minus the value of the total liabilities.
Total financial debt minus cash and cash equivalents.
Is the annualised rents generated by an asset, after the deduction of an estimate of annual recurring irrecoverable property outgoings, expressed as a percentage of the asset valuation (after notional purchaser's costs).
The occupancy rate is calculated by dividing the total leased out lettable area (m²) by the total lettable area (m²) including any vacant area (m²).
The ratio between the (initial) contractual rent of a purchased property and the acquisition value at a prime location.
Management of building and renovation projects. VGP employs an internal team of project managers who work exclusively for the company.
Independent property expert responsible for appraising the property portfolio.
The property investments, including property for lease, property investments in development for lease, assets held for sale and development land.
Is the anticipated yield, which the initial yield will rise to once the rent reaches the ERV and when the property is fully let. It is calculated by dividing the ERV by the valuation.
Means Revikon GmbH.
Means in relation to the LPM Joint Venture, Roozen Landgoederen Beheer B.V.
VGP European Logistics 2 S.a r.l., the 50:50 joint venture between VGP and Allianz.
Letting of rental spaces to users in the rental market during a specific period.
VGP Park Mu nchen GmbH, the 50:50 joint venture between VGP and Allianz.
Means Belartza Alto SXXI, S.L, the 50:50 joint venture between the Company and VUSA.
Means the LPM Joint Venture.
Means the Third Joint Venture.
Means Grekon 11 GmbH, the 50:50 joint venture between the Company and Revikon.
Means Valeriano Urrutikoetxea, S.L.U.; Galdakarra XXI, S.L.; Saibigain XXI, S.L.U.; and Belartza Garaia, S.L.U.;
The weighted average term of financial debt is the sum of the current financial debt (loans and bonds) multiplied by the term remaining up to the final maturity of the respective loans and bonds divided by the total outstanding financial debt.
The weighted average term of leases is the sum of the (current rent and committed rent for each lease multiplied by the term remaining up to the final maturity of these leases) divided by the total current rent and committed rent of the portfolio
The sum of the contractual rent of a property portfolio to the acquisition price of such property portfolio.
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