2024-02-22 20:33:05 ET
VGP NV (VGPBF)
Q4 2023 Earnings Conference Call
February 22, 2024 04:30 AM ET
Company Participants
Jan Van Geet - Chief Executive Officer
Martijn Vlutters - Vice President, business Development & Investor Relations
Piet Van Geet - Chief Financial Officer
Conference Call Participants
Frederic Renard - Kepler Cheuvreux.
Inna Maslova - DeGroof Petercam
Pieter Runneboom - Van Lanschot Kempen
Marios Pastou - Societe Generale
Gerardo Ibanez Herrero - ABN AMRO ODDO BHF
Paul May - Barclays
Presentation
Operator
Good day, and welcome to the review of VGP's Financial Results over Full Year 2023. My name is Kevin and I will be your coordinator for today's event. Please note this conference is being recorded and for the duration of the call, your line will be on listen-only. However, you will have the opportunity to ask questions. [Operator Instructions]
I will now hand the call over to Jan Van Geet, CEO. Please go ahead.
Jan Van Geet
Good morning, everybody, and welcome to our webcast, in which we will give you some more details on our full year 2023 financial results.
Before I start, I wanted to say when it comes to real estate location is everything and you have to remember that real estate development is in many ways very equal to the job of my ancestors. You first have to sow before you can harvest and that is what we did in 2023.
I'll first take you to the 2023 highlights. Let me just move on with the presentation. You see a building in Erfurt, which we are now going to transfer into our new joint ventures from Zeitfracht. And the highlights of 2023, first of all we had a very strong operational performance, which was supported by a very dynamic leasing activity with a significant share of light industrial segment. While we delivered many buildings in the logistic activity last year, 57% of our new leases are related to light industrial activity and I will give some more detail later in the call.
We report a profit before tax of €112.7 million, which results in a net profit of €87.3 million despite some devaluations in our portfolio and that's a €3.20 per share profit. We have a nice evolution in our joint venture strategy with two new joint venture partners, which we're very happy with and that resulted in strong net cash recycling, the activities which we did over the last year of €676 million, which is an absolute record. We never recycled more than last year.
We acquired 1.93 million square meters of land of which many iconic land plots also one in the vicinity of Paris and Frankfurt, which we bought from Stellantis for a total of €212.4 million. And as of today actually we now have the money in our account. We sold our 50% stake in the Logistics Park, Moerdijk for €170 million where we owned 50% of 700,000 square meters of development land which was ready to be developed.
We are sure that we have a solid balance sheet with over €400 million of undrawn credit facilities available. We have a €150 million new 10-year financing facility, which we just closed with the European Investment Bank and we expect at least €525 million to be recycled in 2024 out of the joint venture closings, which are all planned at fixed pricing and which should happen this year once the buildings are finished and delivered. We also have a nice recognition for our ESG efforts which includes a four-star GRESB developer rating, the second highest among peers in the European logistics segment.
For myself I think we are number one, because the one who is now in place number one, you have to look for it is somebody who have never actually developed a building. They just bought it from developers, so no more comments....
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VGP NV (VGPBF) Q4 2023 Earnings Call Transcript