Fu Full Ye Year 2 2019 R Results ts Pr Presenta tati tion 28 28 Februa uary 2020 2020
1. Highlights 2019
Stro St rong demand for r pre remium Euro ropean logist stics s asse ssets s dri rives s an annual al results n Re Record net profit of € 205.6 million, a 69.8% YoY increase n Co Continued strong business growth n Record signed and renewed rental income of € 54.9mm n Total signed rental income of € 155.0mm (+48.9% YoY) n Record 34 buildings with 706,000 m ² under construction at year-end n Record owned and secured land bank of 6.21mm m ² (+39.6% YoY) n Delivered 19 projects with 287,000 m ² of lettable area n Started landmark VGP Park Munich project with several other iconic projects in the pipeline, including Laatzen and Magdeburg n Expan Ex anded par artnership with Allian anz Real al Es Estat ate n Launched second 50:50 joint venture (similar € 1.7 billion gross asset value target) n Completed three successful transactions for a total value of € 610mm n Co Completed € 150mm bond issue an and ar arran anged several al bilat ateral al credit fac acilities 3
On Ongoing strong fi finan ancial al pe perfo forman ance €2,771m n tfolio value 1 Str Strong growth th of f to tota tal portfo €1,936m +43% 2018 2019 €155.0m €104.1m n Re Record growth in committed annualised rental +49% income 1 inc 2018 2019 €205.6m n Record net profit due to development Re €121.1m and letting activities at record levels +70% 2018 2019 €3,25 n Intention to propose to AGM distribution of gross €2,20 dividend of € 60 million (+ (+ 47.7% YoY) +48% 2018 2019 1 Including JVs portfolio at 100% 4
Su Sust stainable development achievements s for r 2019 and enhanced goals s for r 2020 onw 2020 nwards Launch of VGP Renewable Energy N.V. 16MW of PV solar installed or under construction and further 36.8 MW in pipeline Target 100% BREEAM Very Good certification for new developments Changes to the board – women now represent 60% of our board; 60% of our board are independent non-executive directors Launch of VGP Foundation Setup a green financing framework Start of construction of VGP Park Munich: a trophy sustainable project Introducing new company-wide Code of Conduct and to publish Corporate Responsibility reporting in accordance with GRI Standards 5
2. Operational performance
2019 2019 saw end ndur uring ng strong ng mo mome ment ntum um for leasing ng growth… h… Committed annualised re Co rental income and number r of tenancy contra racts 1 300 €175 Annualised Rent income - (€ million) €150 250 €125 Number of contracts 200 €100 150 €75 100 €50 50 €25 0 €- 2014 2015 2016 2017 2018 2019 Rolling rental income Increase in rental income Number of contracts n In total 245 tenant contracts driving committed annualised leases to € 155.0 million, an increase of 48.9% YoY n € 52.7 million through own portfolio and € 102.3 million through the Joint Venture n Occupancy rate of 99.8% for the completed portfolio 1 Record signed and renewed rental income of € 54.9 million in 2019 7 1 Including 100% of JVs’ assets
…d …driving res esilien ent portfolio growth … JV ( € mm) To Total al portfo folio – in inclu ludin ing 100% JV Own portfolio JVs-related 1 3.000 2,771 2,771 Compound Annual Growth Rate 2.500 ’19: 46.1% ) ’14-’1 (CAGR) Co 1,936 1,936 (C 2.000 1.978 1,506 1,506 1.500 1,195 1,195 1.360 878 1.000 645 500 793 677 628 576 550 416 - 2014 2015 2016 2017 2018 2019 Ca Capital exp xpenditure € 337.0m € 261.0m € 352.7m € 539.5m € 1,490m Ne Net c cash i inflow f from d divestments € 236.1m € 155.7m € 438.4m 2 € 339.0m € 1,169m Portfolio Po lio growth prim imarily ily driv iven by contin inued capit ital l expendit iture fi financed mostly by ra rapid cash re recycling As of December 2019 1 JVs-related includes German 5.1% stake held directly by VGP and portion of Held-for-Sale being developed on behalf of the JVs 8 2 Includes sale of Mango building, Spain ( € 150m)
…which …w ch has res esulted ed in a diver ersified ed inves estmen ent portfolio Investment portfolio breakdown 1 In Co Country ry bre reakdown Completed vs Under Co r Co Constru ruction vs Land Ba Bank Hungary Slovakia € 79mm – 3% Development land € 91mm € 391mm Other 3% Romania 14% € 109mm € 94mm 4% 3% Netherlands Under € 116mm – 4% Construction € 469mm Spain € 216mm – 8% 17% Completed € 1,911mm Czech Republic Germany 69% € 451mm € 1,615mm 16% 58% n The Investment portfolio has grown to € 2,771 million 1 , up 43. 43.1% 1%YoY As of Dec 2019, Western Europe represents 73% of total portfolio 1 (and 78% of operating EBITDA n incl. JVs at share) n Germany contributed 65% of the combined portfolio growth n Netherlands growing at fastest relative pace (63% YoY) As of 31 December 2019 1 Including 100% of JVs assets 9
Por Portfol olio l o leased on on a a l lon ong-te term basis to to a diversified and blue-ch chip customer cu er base Weighted average term of the portfolio Blue-chip top 10 Tenants (JVs at 100%) Krauss Maffei 17,5% Combined 8.9 years Amazon 7,3% 7.0 years JV Rhenus 5,2% Drylock Own 12.5 years 3,1% MediaMarktSaturn 3,0% years 0 2 4 6 8 10 12 14 4PX 2,1% BMW Group First Break WALT 2,1% Volkswagen Te Tenan ant portfo folio break akdown – by by indu dustry segment 1,9% Lidl 1,7% Other Lekkerland 13.3% 1,7% Light industrial Automotive-related 30.7% 11.2% E-commerce 19.4% Logistics 25.5% Top 10 clients count for 45.5% Diversified customer base 10 As of 31 December 2019
So Solid delivery ry of new developments s in 2019 n During 2019 a total of 19 buildings were delivered, representing 287,000 m 2 n Largest share of new developments delivered for VGP Park San Fernando de Henares, tenants active in: VGP Park Berlin, Germany Spain - e-commerce (41%) - logistics (35%) - light industrial (11%) VGP Park Leipzig, Germany VGP Park Olomouc, Czech Republic VGP Park Lliçà d'Amunt (Barcelona), VGP Park Kekava, Latvia Spain 11
Cu Current d develop opment p pipeline n At At Dec Dec 2019 a total l of 34 build ildin ings wer ere e under er ction, representing 706,000 m 2 co construct n This equates to € 45.8 million of new lease contracts n The portfolio Under Construction was 78% pre-let at year-end if immediate pipeline projects are included VGP Park Munich, Germany n Western Europe reflects 78% of the total development pipeline n In pipeline we have 11 pre-let projects to be started up in the coming months, representing 331,000m 2 n This equates to € 30.4 million of pre-let agreements Deve De velopments – ge geogra graphic b c bre reakdown ( (by m m 2 ) VGP Park Valencia, Spain Other 6% Italy 4% Germany 43% Romania 6% Czech 11% Netherlands 15% Spain 16% VGP Park Nijmegen, Netherlands 12
We Well advanced land bank to to support t futu ture gr growth wth Land bank 1 – ge nk (m 2 ) Bu Build-up up of Land nd bank La geogr graphic breakdown wn 7, 7,230, 230,000 000 1,020,000 6,210, 6, 210,000 000 Other 5% Netherlands 5% Hungary 5% Germany 33% 1,800,000 Spain 8% 4, 4,410, 410,000 000 2,850, 2, 850,000 000 1, 1,160, 160,000 000 Slovakia 11% 2,880,000 1,320,000 Romania 14% Czech Republic 19% Land owned Deployed Acquired Secured Letters of Deployed Secured Dec 2018 2019 2019 intent Land owned 2018 Acquired 2019YTD LoI 1 Geographical breakdown of development potential (m 2 ) of the owned and secured land bank Own Owned an and sec ecured ed la land bank Total land bank (owned and secured) of 6.21 million m 2 equates to development potential of 2. n 2.78 78 million m 2 In addition, 1.02 million m 2 of land under option, subject to due diligence, with 0. 51 million m 2 of n 0.51 development potential 94 million m 2 development potential has been added In 2020 1 , a further 1.64 million m 2 LoIs with 0. n 0.94 29 million m 2 of 3. 3.29 of develop opment pot otential embedded in the Land bank As of 31 Dec 2019 1 Additional signed Letters of Intent as of 28 February 2020 13
2. Financial performance
Recommend
More recommend
