VGP NV: Annual results 2014

Press Release

Regulated Information

 2 March 2015

Annual results 2014

Summary

2014 proved to be a vintage year for VGP.

During the year of 2014 VGP recorded a strong growth in all the markets where the Group is active, and demands for lettable area gained momentum during the second half of 2014 and is continuing throughout the first months in 2015.

Germany firmly established itself as the main source of growth for the VGP Group with a significant rise in development and leasing activities. In other markets, such as Estonia, Romania and Czech Republic development and leasing activities were also buoyant.

During the year 10 projects totalling 132,645 m² of lettable area were delivered. At the end of the year 14 projects were under construction representing 171,455 m² lettable area with another 5 projects totalling 96,000 m² of lettable area (97% pre-let) to be started-up during the first half of 2015.

VGP's activities during the year 2014 can be summarised as follows:

• The operating activities resulted in a profit for the year of € 49.4 million (€ 2.66 per share) for the financial year ended 31 December 2014 compared to a profit of € 24.3 million (€ 1.31 per share) for the financial year ended 31 December 2013).
• The increase in demand of lettable area resulted in the signing of new lease contracts in excess of € 12.7 million in total of which € 12.2 million related to new or replacement leases and
   € 0.5 million were related to renewals of existing lease contracts.
•  The Group's property portfolio reached an occupancy rate of 94.0% at the end of December 2014 compared to 96.9% as at 31 December 2013.
• The investment property portfolio consists of 17 completed buildings representing 268,232 m² of lettable area with another 14 buildings under construction representing 171,455 m² of lettable area.
• The net valuation of the property portfolio as at 31 December 2014 showed a net valuation gain of
  € 53.9 million against a net valuation gain of € 27.8 million per 31 December 2013.
• As at 31 December 2014 the financial income continued to benefit from the interest income on loans made available to associates until 22 October 2014 (when these loans were repaid).  The interest expenses saw the full year impact of the interest on the 2 bonds issued during 2013. This resulted in a net financial expense of € 7.7 million as at 31 December 2014 against a net financial income of € 0.7 million as at 31 December 2013.
• On 22 October 2014 VGP and its joint venture partners completed the sale of the Czech VGP CZ I and VGP CZ II portfolios. With this transaction VGP sold its remaining 20% stake in these 2 Czech portfolios.

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