VGP NV: Full Year Results 2025

Core Insights - VGP NV reported a pre-tax profit of €338 million for FY 2025, marking a 6% increase from FY 2024, with net asset value growing by 8.3% to €2.6 billion and EBITDA increasing by 28% to €454.7 million, second only to the exceptional performance in 2021 [1] Financial Performance - The company achieved a historic record of €106.7 million in new and renewed leases, resulting in annualized committed leases of €468.3 million, a 13.5% increase [1] - Net rental income grew by 16.7% to €224.4 million, with year-end cash generative net rental income at €236.5 million, up 10% from €214.7 million in FY 2024 [1] - The balance sheet remains solid with a cash position of €524 million and undrawn credit facilities of €500 million, while the proportional loan-to-value (LTV) ratio increased to 50% from 48.3% in FY 2024 [1] Development and Projects - VGP has 43 projects under construction, totaling 1,052,000 sqm, with an expected additional annual rent of €85 million once fully built and let [1] - The total secured landbank stands at 10.3 million sqm, representing a development potential of over 4.3 million sqm [1] - 21 projects were delivered during the year, representing 494,000 sqm and generating an additional €32.9 million in annual rent, with a current occupancy rate of 99% [1] Joint Ventures and Strategic Initiatives - VGP executed several joint venture closings and disposals, resulting in net cash recycling of €389 million and realized profits of €60.5 million in FY 2025 [1] - A new Pan-European fund targeting at least €1.5 billion in gross asset value has been established in collaboration with East Capital, focusing on Central and Eastern Europe [1] Sustainability and Energy - Photovoltaic energy production increased by 47% year-on-year, with operational capacity reaching 170.5 MWp by the end of 2025 [1] - The company aims for its building portfolio to be 100% sustainably certified, with 11% of buildings expected to achieve BREEAM Outstanding or DGNB Platinum certification [1] Ratings and Dividends - VGP received an investment grade rating of BBB- with a stable outlook from S&P Global, and Fitch reaffirmed its rating [3] - The board proposed an ordinary dividend of €92.8 million, a 3% increase compared to the previous year, equating to €3.40 per share [3]