Half Year 2024 VGP NV Earnings Call Transcript
Key Points
- VGP SA (VGPBF) reported a significant increase in pretax profit, reaching EUR154.6 million, marking a 218% rise compared to the previous year.
- The company signed and renewed lease agreements worth EUR45.6 million in the first half of 2024, increasing the total committed annualized rental income to over EUR390 million.
- VGP SA (VGPBF) has a solid balance sheet with EUR625 million in cash and EUR400 million in undrawn credit facilities, reducing the gearing ratio from 40.3% to 32.7%.
- The company has a substantial land bank of 8.5 million square meters, offering a development potential of approximately 4 million square meters.
- VGP SA (VGPBF) has increased its photovoltaic capacity by 115% year-on-year, contributing to a 31% rise in gross renewable income despite falling energy prices.
- The vacancy rate has edged up to approximately 5%, although the existing portfolio remains more than 99% let.
- Speculative supply in the market has decreased from 43% in 2022 to 36%, indicating potential challenges in future development pipelines.
- Logistic prime rents have shown a slight decrease in some markets, although there is still rental growth in others.
- The company faces increased construction costs due to stringent ESG requirements, impacting development margins.
- Despite a strong performance, there is a noted slowdown in traditional tenant demand, particularly in the retail sector.
Hello, and welcome to the VGP half year 2024 financial results. My name is Laura, and I will be your coordinator for today's event. (Operator Instructions) Today, we have the CEO, Jan Van Geet; joined by CFO, Piet Van Geet; and VP, Martijn Vlutters, as our presenters. I will now hand you over to your host, Jan Van Geet, to begin today's conference. Thank you.
Yeah. Good morning to everybody, and welcome to our webcast on the occasion of our half year financial results, a publication thereof. I will just immediately go to the first slide, the highlights of the first half year. The picture you are seeing is actually something which I would like to talk a little bit about. It's our -- at the occasion last year when we bought a big part of the Opel facility in Russelsheim, right next to Frankfurt Airport, very close to Frankfurt Airport.
We also have now made an agreement with Opel, wherein we are going to -- what has been announced on the 8th of June, on the occasion of 125 years of
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