VGP (1K) | Buy | Unchanged view

Research evidence excerpt

VGP (1K) | Buy | Unchanged view

VGP Buy | Target Price: EUR108.00

Company description Management

VGP is a vertically integrated developer, manager, and investor in high-quality Jan Van Geet, CEO

logistics parks across Europe. Through its partnership with Allianz, the company Piet Van Geet, CFO

has been entering a new phase, allowing it to accelerate its development Martijn Vlutters, IR

pipeline. To date, VGP has developed logistics properties across 18 countries,

with the bulk of this development in Germany. The company has also some Key shareholders

opportunities in datacentres. Free float 50.89% Jan Van Geet Group 32.02%

Bart Van Malderen Group 17.09%

Investment case Valuation methodology

E-commerce and supply chain relocations are boosting the We value the company based on an SOP with both the

logistics market in Europe. While supply has been responsive to developer and investor models, valuing the JV independently.

this trend, low vacancy rates and limited speculative We have deconstructed the company’s investor, property

developments still indicate that demand remains unmet, manager, and developer profiles. This SOP method is the best

creating opportunities in the market. way to capture every specific aspect of the company, in our

VGP has always been a developer but has reduced its risk profile view.

through partnerships with anchor investors (Allianz, DEKA, Risks to our rating

AREIM or East Capital). The JV exposure allows for constant Prolonged economic slowdown.

recycling of cash, which should permit further growth. A further increase in interest rates.

VGP has a land bank of almost providing 5-6 years of visibility on Missing on Disposals.

developments.

Catalysts

Clarity on the data-centre trajectory (to be unveiled early

September)