VGP (VGP) CMD 2026 summary

Strategic direction and growth initiatives

• Focus on long-term value creation through a 10.4 million sq m land bank in prime European locations, with 4.3–5 million sq m developable, supporting growth for the next 4–5 years.

• Transitioning from single-investor joint ventures to multi-investor vehicles and multiple funds, broadening the capital platform and reducing dependency on individual partners, with €3.6bn+ gross asset value available for transactions.

• Emphasis on automation, robotics, and sustainable building features to meet evolving tenant demands in logistics, e-commerce, and advanced manufacturing.

• Expansion into renewable energy and battery storage, with 193.4 MW solar installed, €140m invested at 10%+ gross yield, and storage platform expected to grow fivefold.

• Entry into data center development via a 50/50 joint venture, leveraging powered land and grid connections in Tier 1 and Tier 2 European markets, with c.225 MW identified opportunity and €2.0-2.5bn gross implied platform capex.

Financial guidance and capital allocation

• Annual development CapEx of €500–750 million, with €2.2 billion recycled since 2022 and reinvested in growth.

• Targeting €311 million in theoretical rental value from the current land bank, with €500 million+ annualized rental income (including JVs) already contracted and €69m of rent signed but not yet paying.

• Asset management fees projected to grow from €33.7 million in 2025 to €80–100 million by 2030, with 18% CAGR since 2020 and €6.7bn in assets managed across 213 buildings in 13 countries.

• Dividend policy remains stable, with distributions based on steadily growing recurring income, now 72% of group EBITDA from investment and renewable energy segments.

• Data center projects expected to deliver yields on cost well above 10%, with first cash flows from Rüsselsheim anticipated around 2030 and Milan following two years later.

New business developments and operational highlights

• Eleven landmark sites totaling 1.24 million m² of lettable area are entering execution within 6-12 months, with high pre-letting rates and strong tenant demand in key sites.

• Secured 50 MW grid connection for a data center in Rüsselsheim and 120 MW in Milan, with construction to start post-permitting; both projects to be contributed to the JV at market value.

• Renewable energy business now generates €7.6 million gross income in H1, with further growth expected as more projects come online.

• Flexible approach to JV ownership, with the ability to dilute from 50% to 25% if capital requirements become too high, while retaining operational control.

• Commitment to sustainable construction, aiming for DGNB gold or platinum certifications and significant CO2 and material savings in new developments.