VGP Posts Mixed 2025 Financials: Recurring EPS Jumps 33%, but Profit Metrics Lag Expectations

Belgian logistics real estate player VGP (BR:VGP) unveiled its 2025 financial results showing a blend of solid growth and missed marks. Recurring earnings per share (EPS) climbed 33% to €3.76, topping analyst forecasts by roughly 6%, signaling strength beneath the surface.

The company recorded a 17% increase in total proportionally consolidated gross rental income, which reached €247.4 million-just nudging past Jefferies' estimates by 2.4%. Net rental income also grew by 18%, hitting €223.4 million, reflecting steady rental operations.

Despite the recurring EPS surge, VGP's operating profit including valuation gains came in at €433 million, a 9% rise over 2024 but still 17% shy of analyst predictions. Net profit held steady at €290 million (€10.64 per share), though it fell 23% short of Jefferies' €379 million projection.

The company completed 21 projects last year, adding almost half a million square meters of lettable space (494,000 sqm) with an occupancy rate at a strong 99%. These new leases contribute an annualized €33 million, illustrating solid market demand. Meanwhile, 43 projects remain in the pipeline under construction, expected to expand lettable area by over 1 million square meters once finished.

VGP also bolstered its land reserves significantly, acquiring an additional 1.33 million square meters last year and growing its total land bank to 10.3 million square meters. Announcing a joint fund initiative with East Capital targeting a €1.5 billion gross asset value, the firm is clearly shifting some focus toward Central and Eastern Europe.

Shareholder value showed mixed signals with EPRA Net Tangible Assets per share rising 9% to €97.33, falling short of the €101.80 analysts expected. On the debt side, proportional net debt expanded 13% to €3.4 billion, with a loan-to-value ratio steady at 50%, a figure that's quite typical within this capital-intensive sector.

VGP suggested a dividend increase to €3.40 per share from last year's €3.30, yet this also came in below the analyst consensus of €3.50. While the dividend growth is modest, it may hint at a more cautious cash deployment approach.

This year's results paint a picture of a company growing its core rental base and expanding land holdings, but facing some hurdles in meeting profit expectations. It raises the question of how VGP will balance growth ambitions with profitability in the coming years.