VGP NV, a leading European player in logistics and light industrial property development and a provider of renewable energy solutions, has published its financial results for the first half of 2026. The company recorded a pre-tax profit of EUR 141 million. Net asset value increased by 10.5 percent to EUR 2.9 billion during this period. EBITDA reached EUR 186 million, reflecting solid contributions from all business segments and the continuous growth of recurring revenues.
During the reporting period, VGP concluded new leases and lease extensions totalling EUR 52.7 million. This resulted in annualised contractual rental income of EUR 488.9 million as of the reporting date, corresponding to organic growth of 10.8 percent compared to the previous year. In addition, vacant premises were re-let in 2026 at an average of six percent higher rents. After 30 June 2026, further leases with annualised rental income of EUR 7 million were signed, increasing total annualised contractual rental income to EUR 496 million.
VGP's development pipeline comprised 44 projects under construction in the first half of the year, with a total area of 1,140,000 square metres. Of these, 13 buildings with an area of 314,000 square metres were newly commenced. These projects will generate additional annual rental income of EUR 90.6 million upon full completion and letting. The entire development pipeline is 74 percent pre-let and includes contractual annual rental income of EUR 77.1 million. Twelve projects with a total area of 236,000 square metres were completed during the year, representing additional annual rental income of EUR 17.1 million and currently 86 percent let. Net rental income increased on a proportionally consolidated basis by 18 percent to EUR 122.8 million.
The completed property portfolio comprises 6.6 million square metres, an increase of six percent year-on-year. With an occupancy rate of 98 percent and an average building age of 5.1 years, this portfolio generates annualised rental income of EUR 411 million, representing a ten percent increase compared to the previous year. VGP also acquired 1.2 million square metres of new development land and utilised 590,000 square metres of development area for commenced projects. Secured land bank reached 10.4 million square metres as at 30 June 2026, representing a development potential of over 4.3 million square metres or potential additional rental income of more than EUR 275 million.
VGP has further expanded its joint venture strategy. In collaboration with East Capital, work is underway on launching a pan-European fund aiming to acquire VGP-developed properties with a gross asset value of at least EUR 1.5 billion, focusing on Central and Eastern Europe. A letter of intent was concluded for the launch of an extended continuation vehicle for the Saga Joint Venture, which aims to achieve a gross asset value of at least EUR 1.5 billion. Furthermore, a letter of intent was finalised for the establishment of a pan-European data centre development platform with a specialised partner.
Renewable energy activities generated gross revenues of EUR 7.2 million in the first half of 2026, an increase from EUR 6.5 million in the prior-year period. This is due to a ten percent increase in the amount of solar power sold to 78 GWh and higher operational photovoltaic capacity. By the end of June 2026, VGP operated 152 photovoltaic installations with a total capacity of 193.4 MWp. For the first time, battery storage systems were connected to the grid and are expected to contribute to revenue from the second half of 2026.
The company's balance sheet remains solid. Cash and cash equivalents increased from EUR 524 million in December 2025 to EUR 599 million. Additionally, unused credit lines of EUR 500 million were available. The proportional loan-to-value (LTV) stood at 49.4 percent, compared to 50 percent at year-end 2025. Gearing remained stable at 35.5 percent. Since December 2025, bonds totalling EUR 600 million have been issued. A bond of EUR 190 million was repaid in March 2026, and a buy-back offer of EUR 100 million for the bonds due in January 2027 was successfully completed. A capital increase of EUR 250 million in May 2026 supported the company's continued growth.
