Vgp N.V.

VGP reported profit before tax of EUR 140.9 million, net profit after tax of EUR 120 million, EPS of EUR 4.26, and EBITDA of EUR 186.4 million. Net rental and renewable income at share was EUR 128.2 million, up 17.9% year on year on a proportional basis. Recurring investment segment EBITDA increased from EUR 118 million to EUR 131 million; development segment EBITDA fell from EUR 118 million to EUR 52 million because H1 2025 benefited from extra revaluation gains and JV transactions; renewable energy EBITDA doubled from EUR 2.1 million to EUR 4.3 million. Committed annualized rent income was EUR 489 million at June 30 and EUR 496 million by the call date; cash-generative leases were EUR 420 million at June 30, and proportional annualized contracted income was EUR 327 million, of which EUR 260 million was already cash generative. Delivered buildings totaled 236,000 square meters and were 86% let; new developments initiated totaled 314,000 square meters. Shareholders’ equity increased 10.5% year to date after a EUR 247 million net equity raise. Proportional LTV declined from 50% to 49.3%, consolidated gearing was 35.5%, cash was EUR 599 million, and untapped RCFs were EUR 500 million. Management did not give formal full-year financial guidance, but said third-quarter leasing had started well, that H2 should be stronger, and that cash-generative rent could ultimately scale toward about EUR 800 million if the full land bank is developed.

Jan Van Geet framed the first half as uneven but ultimately encouraging: Q1 started well, Q2 was subdued, and Q3 had already picked up. He emphasized strong leasing momentum, especially in Germany, Spain, Italy, and parts of Eastern Europe, and said the company is seeing demand return from e-commerce and defense-related users. He also previewed two strategic growth areas: a larger joint-venture recycling program and a data-center strategy that he said he would reveal in more detail at Capital Markets Day.

Piet Geet focused on the earnings bridge and balance sheet. He highlighted recurring rental and renewable income growth to EUR 128 million at share, valuation gains of EUR 65.9 million on the company P&L and EUR 25 million at share in JVs, and a stronger JV profile with EPRA earnings up 16.4%, vacancy down to 1.2%, and LTV down to 31.5%. On liquidity and capital allocation, he cited cash of EUR 599 million, untapped RCFs of EUR 500 million, CapEx of EUR 376 million in H1, and expected JV distributions of at least EUR 80 million for the year. He also noted debt-market activity including a EUR 600 million bond issue, a EUR 190 million repayment, and proactive buybacks, while average interest cost moved from 2.7% to 3%.

Analysts focused on reversion capture, H2 leasing momentum, development starts, and the timing of the East Capital and second SAGA joint ventures. Management said the 6% rent uplift in H1 should not be read in isolation because uplift depends on lease mix, market, and whether contracts actually roll; they said they cannot quantify total reversion potential but believe there is still significant upside. On development, Jan Van Geet said some larger deals are in late-stage negotiation and that H2 starts should be at or above H1, while Piet Geet suggested 300,000 to 400,000 square meters of deliveries in H2. On East Capital, management said the timing slip to 2027 is due to process and due diligence rather than weaker investor appetite, and said SAGA 2 is more likely to launch in the second half of next year.