VGP NV: Annual Results 2013

Press Release
Regulated Information

21 March 2014

Annual results 2013

Summary  

2013 has been a year of change and transformation for VGP. During the year VGP continued to prepare the development pipeline for future growth by substantially expanding its footprint in Germany through the acquisition of 803,000 m² of new development land and by acquiring 110,000 m² new development land in Tallinn (Estonia) and 45,000 m² of development land in the Czech Republic.

The encouraging increase in demand for new lettable space observed during the first half of 2013 gained momentum during the second half of 2013, and is continuing throughout the first months of 2014. Especially Germany, the Czech Republic, Estonia and Romania saw a significant increase in demand of lettable area.  On the back of these increased demands, the development activities accelerated and by the end of 2013, 11 projects, representing 152,514 m² were under construction with another 3 projects (32,210 m²) being started up during the first quarter of 2014.

Germany has clearly become a major source of potential growth and development where the roll-out of VGP's niche strategy has proven a successful recipe to attract new and potential tenants. This strategy concentrates on end-users and medium sized units and focusses on acquiring strategically located plots of land i.e. land always located in vicinity of urban centres to allow easy access to highways and ring roads and assuring availability of adequate workforce as well as to ensure that operating processes of tenants are efficiently and effectively integrated in VGP's  buildings.

VGP's activities during the year 2013 can be summarised as follows:

• The operating activities resulted in a profit for the year of € 24.3 million (€ 1.31 per share) for the financial year ended 31 December 2013 compared to a profit of € 11.6 million (€ 0.62 per share) for the financial year ended 31 December 2012). 

• The increase in demand of lettable area resulted in the signing of new lease contracts In excess of € 15.1 million in total of which € 10.9 million related to new or replacement leases (€ 5.5 million on behalf of associates) and € 4.2 million (€4.0 million on behalf of associates) were related to renewals of existing lease contracts. 

• The Group's property portfolio reached an occupancy rate of 96.9% at the end of December 2013 (excluding the associates) compared to 94.9% as at 31 December 2012. The occupancy rate of the associates' portfolio reached 96.0% at the end of 2013 (compared to 94.5% at the end of 2012)  

• The investment property portfolio consists of 9 completed buildings representing 134,201 m² of lettable area with another 11 buildings under construction representing 152,514 m² of lettable area.  

• Besides this VGP partially owns through its associates another 58 buildings which represent 627,523 m² of lettable area and for which property and facility management services are provided by the VGP Group. At the end of December 2013 there were no buildings under construction on behalf of the associates. 

• During Q4, 2013, VGP continued to expand its land bank in Germany and acquired a 218,000 m² land plot in the Frankfurt area. In addition, during December 2013, VGP secured a 537,000 m² land plot in the Munich area which was subsequently acquired in January 2014. 

• The net valuation of the property portfolio as at 31 December 2013 showed a net valuation gain of
  € 27.9 million against a net valuation gain of € 12.3 million per 31 December 2012. 

• As at 31 December 2013 the financial income continued to benefit from the interest income on loans made available to associates but was adversely impacted by the interest on the 2 bonds issued during the year. This resulted in a net financial income of € 0.7 million as at 31 December 2013 against a net financial income of € 2.9 million as at 31 December 2012. 

• In January 2014, the Group made a distribution of a € 7.6 million capital reduction (€ 0.41 per share) to its shareholders 

• During the financial year the Group successfully issued 2 bonds i.e. on 12 July 2013 a 4 year € 75 million bond was issued and on 6 December 2013 a 5 year € 75 million bond was issued. 

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