Saturday, 10 May 2025
VGP NV, a European provider of logistics and semi-industrial real estate, has announced its financial results for the year ending 31 December 2024, reporting significant growth in profitability, leasing activity, and renewable energy capacity.
The company recorded a net profit of EUR 287 million, reflecting an increase of EUR 200 million or 229% compared to the previous year. Net asset value rose by 8.4% to EUR 2.4 billion, supported by strong earnings across rental, development, and renewable energy activities. EBITDA increased by 57%, with rental income contributing EUR 204.3 million (up 19%), development activities generating EUR 144.8 million (up 178%), and renewable energy projects adding EUR 5.4 million (up 236%).
Leasing activity reached record levels in 2024, with new and renewed lease contracts worth EUR 91.6 million, bringing the total volume of signed lease contracts to EUR 412.6 million, a 17.6% increase year-over-year. 34 projects were under construction at the end of the year, covering 780,000 square meters, with EUR 60.4 million in additional annual rental revenue expected upon completion. These projects were 80% pre-leased, and nearly all developments met sustainability certifications, with 97% achieving at least BREEAM Excellent or equivalent.
During the year, 21 projects totaling 584,000 square meters were completed, adding EUR 36.1 million in annual rent. As a result, net rental income grew by 20.9%, from EUR 159.1 million to EUR 192.4 million, with rental cash flow at year-end increasing by 10.5% to EUR 214.7 million. The occupancy rate for VGP’s property portfolio reached 98%, with an average building age of 4.2 years.
In terms of land acquisitions, 702,000 square meters were secured for future development, while 1.17 million square meters of land were used for ongoing construction. By the end of 2024, VGP had secured 8.7 million square meters of land, with a total development potential exceeding 3.6 million square meters.
The company also advanced its renewable energy initiatives, increasing photovoltaic (PV) capacity by 53% year-over-year to 155.7 MWp, up from 101.8 MWp in 2023. Additional PV projects totaling 41.0 MWp are under development, with another 90.9 MWp planned. VGP also commenced construction on its first 6.8 MWh battery storage project, with further installations in advanced planning stages.
A series of transactions in 2024 strengthened the company’s financial position, including the closure of four joint ventures and the sale of LPM, generating a record EUR 809 million in cash recycling and contributing EUR 92.9 million in realized gains.
The company ended the year with a solid balance sheet, reporting EUR 493 million in liquidity, compared to EUR 210 million in December 2023. Undrawn credit facilities totaled EUR 500 million, while the debt-to-equity ratio improved to 33.6% from 40.3% in 2023. The loan-to-value (LTV) ratio decreased to 48.3% from 53.4%.
As a result of its financial performance, the Board of Directors has proposed an ordinary dividend of EUR 90 million, marking a 12% increase from the previous year, or EUR 3.3 per share.
