VGP NV: VGP reports full year 2017 record profits

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VGP reports full year 2017 record profits

23 February 2018 - 7.30 a.m. CET, Diegem (Belgium): VGP NV ('VGP' or 'the Company'), today announced results for year ended 31 December 2017.

• Record profit for the period of € 96.0 million (+ € 4.7 million compared to 31 December 2016)
• Proposal for the distribution of a dividend of € 35.3 million (€ 1.90 per share) representing a gross dividend yield of 3.1%^[1].
• Record signed and renewed rental income of € 27.4 million driven by 484,000 m² of new lease agreements signed corresponding to € 24.3 million of new annualised rental income combined with 61,000 m² of lease agreements renewed corresponding to € 3.1 million of annualised rental income.  Total net increase of € 21.7 million when considering the sale of Estonia.
• The signed annualised committed leases represent € 82.8 million equivalent to 1.66 million m² of lettable area, a 35.0% increase since December 2016 (when excluding Estonia).
• New development land of 729,939 m² acquired and an additional 1,452,336 m² of new land plots under option, subject to receiving permits expected to be acquired during 2018 which adds to a total remaining development land bank as of December 2017 of 3,261,364 m² (34% net increase since December 2016)
• A total of 17 projects delivered representing 349,871 m² of lettable area, with an additional 22 projects under construction representing 475,113 m² of future lettable area. It is expected that more than 200,000 m² of lettable area will be delivered during the first quarter of 2018.
• Continued geographical expansion into Western Europe with consolidation of presence in Spain where 4 buildings are under construction (2 new buildings started up after year-end) and where 3 new lease contracts with blue chip tenants were signed during the past few months.
• VGP European Logistics joint venture saw one closing in 2017 of €173 million, this is expected to be followed by an > € €370 million closing by end of March 2018 which will allow VGP to reinvest in its development pipeline and continue to grow the business.
• A new long-term remuneration plan aligned with shareholders' interests, based on the growth of VGP's NAV, is currently being reviewed by the remuneration committee and will disclosed in further detail in the remuneration report included in the Annual Report 2017. The new plan will be applicable as from 2018 onwards.
• Conservative financing policy in place with a current gearing of 42.3%, in line with the Company's target maximum consolidated gearing of 55%.

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