VGP NV (VGPBF) Q2 2026 Earnings Report

The call presented a predominately positive operational and financial picture: strong profitability (EUR 120m net), growing recurring income (+~18% at share), improving committed rent (near EUR 0.5bn), robust liquidity (>EUR 1bn), attractive development economics (yield on cost ~8.7%) and progress in renewables and JV activity. Negative points were mostly timing and mix effects (a subdued Q2, lower development EBITDA versus a strong prior period, working-capital timing and modestly higher interest costs), plus typical execution/permitting risks in select markets and the early-stage nature of the data-center plans. Overall, the positives materially outweigh the negatives, while management remains cautious and prudent on speculative development and timing.

Guidance from the call was that VGP expects continued expansion of recurring income and careful, pre-let‑led development: committed annualized rent was EUR 489m at 30 June (now EUR 496m, +11% YoY) and management expects to breach the EUR 0.5bn mark (targeted in September); cash‑generative rent stood at EUR 260m at share (EUR 419.9m total), with €52.7m of rent signed/renewed in H1 and H1 deliveries of 12 buildings (236,000 sqm, €17.1m annualized rent, 86% let); 314,000 sqm of new developments were initiated and 1.1m sqm are under construction (44 buildings, representing €90.6m annualized rent), with management estimating ~300–400k sqm of completions in H2; balance‑sheet and capital guidance: net profit before tax EUR 140.9m (after tax EUR 120m), EPS EUR 4.26, EBITDA EUR 186.4m (recurring investment segment EUR 130.5m), net rental & renewable income at share EUR 128.2m (+17.9% YoY; recurring at share EUR 128m, +18%), renewable EBITDA €4.3m (from €2.1m), solar output up (71→78, ~9–10%), renewables CapEx/committed investments ~EUR 170m (≈€30m BESS); development economics remain attractive (yield‑on‑cost range 7.2–11.5%, avg 8.7%; weighted appraiser yields avg ~6.5%; portfolio yield ~7%, JV yield ~5.22–5.25%); JVs: EPRA earnings ~16.4%, vacancy down 2.0%→1.2%, JV LTV 32%→31.5% and a Rheingold promote of EUR 18.4m received 1 July; liquidity and financing: AUM EUR 9.2bn (investment property at share EUR 6.1bn), total assets ~EUR 5.8bn, shareholders’ equity EUR 2.9bn (+10.5% YTD after EUR 247m equity raise), cash EUR 599m + undrawn RCF EUR 500m (liquidity > EUR 1bn), proactive bond activity (bonds raised EUR 576m & EUR 600m, net proceeds ~EUR 593m; repaid EUR 190m and bought back EUR 100m; only EUR 220m bond remains in 2027), average funding cost up ~2.7%→3%; outlook items: expect minimum EUR 80m JV distributions for the year, capital recycling to accelerate into 2027, SAGA1 >90% deployed in 2027 and SAGA2 targeting at least EUR 600m equity, data‑center JV/MOU to roll out over 2–3 years (potential +EUR 3bn GAV) and batteries to start contributing materially in H2 — all while maintaining conservative pre‑let discipline and a consolidated gearing ~35.5% (proportional LTV ~49.3–49.4%).