Vgp Aktie

Welcome to the review of VGP's financial results over full year 2025. [Operator Instructions] Now I will hand the conference over to the speakers. Please go ahead.

Good morning, everybody, and welcome to the presentation of our full year 2025 financial results. My name is Jan Van Geet, and I'm the CEO of VGP, as most of you know, I think. I'll first start with a little executive summary and the highlights of 2025.

We recorded a pre-tax profit of EUR 338 million, an increase of EUR 19 million or 6% higher than the full year of 2024. Our net asset value grew 8.3% up to EUR 2.6 billion, and that's -- the EPRA NTA is up 9%. We have an EBITDA growth of 28% to EUR 454.7 million, 13.5% increase. And what makes me happy is the historic record of EUR 106.7 million of new and renewed leases, which I will go to more detail later on. The annualized committed leases at the year-end stand now at EUR 468.3 million.

We have 1,052,000 square meters under construction and our development pipeline is 75% pre-let. I can add to that, that we have signed a lot of LOIs, which are in final negotiation. We think that by the end of the first quarter, most of them will translate into new lease agreements. And if they do, and we expect they do because we are finalizing the lease agreements with them, we will have a new record of more than EUR 80 million of signed lease agreements to be started up in the new year. So we are having a solid pipeline to be started up already, which is fully pre-let.

We delivered almost 500,000 square meters last year, 99% let. And the last unit has just been agreed upon. It's a small unit in Koblenz with somebody from the defense industry. We have 1.4 million square meters of land acquired and our total secured land bank stands at 10.3 million square meter, which represents a development potential of at least 4.3 million square meters. We did a net cash recycling of EUR 389 million through a transaction with our joint venture partner in the Saga joint venture, and that led to an additional EUR 60.5 million realized profits in 2025.

And we target another material closing with the Saga, as we already announced it in August last year. We announced that we were going to do EUR 1 billion. I think we'll do a bit more in the second half of 2026, for which we have already all of the assets aligned. It will be a material closing. We'll go more in detail also later on that.

And then finally, VGP and East Capital have agreed to set up at least EUR 1.5 billion of gross asset value of pan-European fund with an emphasis on Central and Eastern Europe. We know East Capital already for 15 years. They are a very reputable boutique fund manager from out of Sweden, which have quite some track record in Eastern European assets and they manage the fund, management thereof. The Board of Directors proposes an ordinary dividend of EUR 92.8 million, which is 3% higher than the ordinary dividend of 2024, or EUR 3.4 per share.

If we look at the summary of the financial results, and you see that the steady growth of the total portfolio value goes up from -- for the full year at 100%, including the joint ventures portfolio at 100% with EUR 900 million almost from EUR 7.8 billion to EUR 8.7 billion. We have a continued strong growth in committed annualized rental income. It grew 13.5% year-on-year. So we're getting bigger every year. It's more and more difficult to beat that, but we're going to do our best this year. I think we're going to be able to set another nice year. We have a lot of demand in the pipeline. And the full year of 2024, we had EUR 412.6 million at the end of the year committed annualized rental income, and at the end of 2025, we had EUR 468.3 million.

The EBITDA increased 28% -- Piet will go more in detail later on -- which followed actually a very solid performance in all of our business segments. It went up from EUR 354.4 million in 2024 to EUR 454.7 million in 2025. And then I already told you about the dividend, which will grow with 3% to -- we're proposing, anyway, to EUR 3.4 per share.

I'll first go a little bit on the market and the market update. These are not our slides. These are slides which we got from Jones Lang LaSalle. And I will compare our own performance a little bit to that. If you look at demand and occupier segments, then you see the take-up share by sector, and then you see that the third-party logistics are still the biggest one. We have very little third-party logistics inside of our own portfolio. We have most end users and also longer-term lease agreements. And we see a very big comeback from e-commerce. It is bigger than what we have in here. And what we have in the pipeline now, what we are working on, is also very e-commerce determined.

So we see them coming back, and we see that there is more and more and more demand from out of that sector. It's not only Chinese companies. Also, they are here. But it's mostly Western European and American people who are coming back to the market. We also see a lot more demand now from the defense sector. We have been able to secure some of them, and we are also currently negotiating with some of them for some new manufacturing things in the pipeline.

The vacancy rate has come up a lot over the past quarters. It actually doubled from 3% to 6.2%. But that compares in our own portfolio to -- we are a little bit more than 98% let at the moment. And we see healthy demand. And we also see that there is a lot less speculative construction in the market. So the vacancy levels, we expect them to go down in the future. If you compare to all the markets which you see right next them, there where we are in Budapest, we have 0 vacancy; Madrid, we have 0 vacancy. If you look at Bratislava, we have 0 vacancy at the moment. In Milan, we have 0 vacancy. In Prague, we have 0 vacancy. Of course, some of these are also speculative buildings which have been started up over the last quarters.

On the supply, you can see that the build-to-suit over the last 3 years is quite flat. The 2023, '24 and '25 levels have remained stable. But you see that the speculative development is coming down quite a lot, which gives us a good view on that there will be soon not so much available anymore in the market because there is quite some take-up over the last year also. We have 16.2 million square meter space under construction, which is the lowest level in the past 5 years now.

Capital markets, I don't know if we can say something intelligent on it. Last year started very well, and we did a very large transaction, EUR 509 million, in the second half year. So that also contributes to it. But we saw that the -- overall, over the whole year, the transactions went up both in volume and in size. And -- but mostly in the smaller markets on the major markets, only U.K., the Netherlands and Poland posted a year-on-year growth.

The yields have been relatively flat. You can see that very well. We've had a devaluation on some of our German assets because our valuator takes the view that vacancy levels in Germany should go up -- no, not should go up, but the reletting should take a longer period. He has made that from 12 months to 18 months. Pete will go in detail to it. But we have seen that in Germany what has come available over the year, we have been able to relet on average in 2 days, not more, and we have a 21% uptake on the rental income of what we have relet. So we can't really concur to that view, but it is what it is in the market. That's what our valuator thinks of it. But it's not visible in our own portfolio.

I will go through the operational performance for the full year. Maybe I'll just go back. This is our park in Arad, which we've just started. And the building which you see on the right side is a building which we constructed for VAT. VAT is a vacuum valve producer for the semiconductor industry, a very specialized product production. It's got 12,000 square meters of clean rooms inside at a very high level. And we have achieved with that building, BREEAM outstanding score of 96.2%, which is the highest of any industrial building in the world last year -- no, over all the years in BREEAM outstanding.

And this is our park in Valsamoggia, which is also fully let and which we've transacted last year through our joint venture with Saga, with our friends from Areim. As I already said, we had a record year in committed rental income, including the JVs at 100%. The group has 465 tenants, but that's divided over more than 650 lease agreements, as you can see. So we have a lot of tenants which come multi times back into our buildings. The committed annualized leases as of 31st of December stand at EUR 468.3 million; occupancy rate, 98%; and it's filling up really very well. At the moment, we really have quite some demand in our portfolio. And if we make the bridge, then you see that the committed annualized rental income started with -- and I think it's 13 -- yes, EUR 412 million and a bit.

We signed new leases, almost EUR 57 million. We had EUR 6.5 million of indexations. We had some amendments in leases, people who wanted some other space or differentiate their space. And that EUR 8.9 million of terminations. And we sold one building in Riga to its user, to Jysk, which declined also EUR 2.4 million of rental income. And that brought us to the EUR 468 million, which we had at the year-end. But meanwhile, we've signed quite some leases already, and we're looking forward to be able to report to you after the first quarter, because, as I said, we have quite some nice LOIs in the pipeline.

The majority of the new contracts which we signed were within the Logistics segment. I have some examples. Logistics was 67.9%. But as I said, we have very little third-party logistics. You don't see many third-party logistics also in the names here. We signed with Studenac, which is one of the largest retailers in the Balkan, a very nice cooled warehouse, which is delivered this week. We signed with Aldi a very nice new warehouse, which we're going to start construction in a couple of weeks in Frankenthal. That's a big one, 60,000 square meters. We signed a very nice lease with Movianto, healthcare dedicated logistics. That's a third-party logistics. But you see Heineken, Eureka, Duomed, Ursus, Farmol, Studenac, they are all end users and they use their own facilities and sometimes use somebody to operate it.

This is something which changes all the time. But e-commerce was last year 16.5%, and I expect it to be quite a bit higher this year. Light industrial, 14%, but that's just a move in time because we also had quite some demand from light industrial over the past year.

Our portfolio is leased to a very diversified and blue-chip tenant base. The weighted average lease term is already here stable. It's 7.8 years. As we keep on growing and most of the leases are relatively long term signed, we have -- the top 10 tenants represent 29.7% of committed leases. But also there, we have -- these represent 28 different lease agreements in many different jurisdictions. So it's well spread, the risk of it.

And yes, if you look in here -- but this is a little bit longer term. The logistics represent 47% in our total portfolio, light industrial, 34% and e-commerce, 17%. And we have some others. We have some -- it's mainly Siemens, yes, where Siemens is in Nuremberg. It's a site where we have offices and which we are going to start rebuilding this year completely. This year, we have some quite iconical projects which are upcoming and about which I will tell a little bit more afterwards in the outlook, because we are going to really have some land plots coming online which are -- from which we expect really a very nice contribution in the coming 12 to 24 months.

If you look at VGP at a glance and you look -- we are always looking forward in how can we grow and where can we grow, in which segments can we grow. And of course, the main part -- the main raw material to be able to grow is the land bank because we always grow organically, we develop everything ourselves. We don't buy any standing assets. And if you look at the December '24 net cash generative rental income, so things which were delivered and really generated cash, it was EUR 350 million or EUR 240 million at share. During 2025, we activated EUR 39 million of new leases. So it went up with 11% to EUR 389 million or EUR 236 million at share, so including 50% of the joint ventures, if you look at it.

The signed leases, which are still under construction and which will be added on in the next 12 to 18 months, is another EUR 79 million. And so that's another 18%, and that takes us to EUR 468 million of income-generating activities or EUR 310 million at share of income-generating lease agreements, of which EUR 321.7 million sits in the joint ventures. But if you look at our land bank which we have today and the ERV of the vacancy and the development pipeline which we have, that's another roughly EUR 300 million, which takes us -- the potential up to EUR 766 million, or, at this moment, EUR 602 million at share. And we are trying to accelerate our development pace as much as we can now.

The development activity, talking about acceleration, drives our second strongest EBITDA in our history. And if you look, there is a couple of notes which I need to say to this. You see very well the division between East and West. In 2021 and in 2020, we had big start-ups in Western Europe because we had these big leases in Giessen and in Munich, which started up at that time. You see also that in 2022, we delivered and then we started up a lot less because of the big inflation. I told you that I was standing very much on the brake at that point because I was afraid about having too much vacancy with buildings for which we paid far too much.

Now we have our costs very well under control. Our margins are going up relatively quickly. We have very sound margins again, which you can also see in the revaluation result, because the revaluation result in this year, I think it's EUR 183 million, is pure and only revaluations from new activities from things which we have started up. And whereas, in 2021, it was a little bit a distorted image because there was also a big uptick in valuations, of course, in the standing portfolio as yields were going down with very steep declining interest rates.

Out of the EUR 634 million record EBITDA in 2021, only EUR 81 million was cash -- was really cash income, recurrent income. Out of the EUR 455 million EBITDA in 2025, it's EUR 249 million, which says a little bit also about the resilience of our result going forward. It's more and more regenerative income.

The net rental and renewable energy income at share has grown a lot year-on-year with 18% in 2025. If you look at it, we are now at EUR 223.384 million in 2025, which we expect a continuous growth in 2026. In the renewable energy, about which Martijn will tell you a lot more later on, we have now a lot diversified also into battery projects, battery projects which have a very high yielding on their investment, and of which we have foreseen to construct quite a lot in 2026 as now we have the permits coming into place to -- in order to be able to do that.

We also thanks to the brownfields which we have been buying over the past years -- most of them have been big factories with enormous electrical connections. For example, we bought Hagen. Hagen has 90-megawatt connection of energy, which not only allows us, if we can, to deliver back very nice battery projects, big in size, but it also opens the potential. And it's very congested today to be able to do a more data center exercise.

So we are trying to take a look at it, whether we could implement a data center also in Hagen, whether the location is the right one. And at the moment, we have 2 identified together with Sarah, our new employee who came from Microsoft. One is in Russelsheim and one is in Bodenheim. And on both, we are very well advanced on our permitting. On the permitting side, we are advancing very well. It will take a little bit more time. These are complex exercises also, but we are on a good way to be able to realize them soon. And it's our ambition to have something by the year-end to be able to say something more concrete about our data center developments going forward.

The portfolio is virtually let on a long-term basis, and you can see there is very little variance. Combined occupancy of the portfolio stood at 98%, WALT at 7.8 years, with the first brick at 7.4 years. Top 10 customers, as I said, that's 28 lease agreements, and the biggest one is still Krauss Maffei. But when we first contracted them, they were 21%. And now thanks to all this growth, it's only 6% left of the total portfolio which is now Krauss Maffei. And Opel is 5.1%, which is a short-term lease, but it will be replaced. And we are going to redevelop, of course, Russelsheim, and we expect to be able to do quite a significant uptake in the leases going forward. Our own weighted average lease term on our own portfolio is 9.6 years at the moment.

On the delivery side. And here, you see our park in Vejle under construction in Denmark. We delivered 21 buildings, which represented almost 500,000 square meters in gross lettable area. That was EUR 32.9 million rental income, 39 new contracts, and they were 99% let. And as I said, we've now have -- we have a tentative agreement with somebody from the defense sector to take the last unit in these buildings, and it will be 100% leased. 100% will be rated BREEAM actually excellent, of which 31% is BREEAM outstanding over the last year, which I think in Europe, at least we believe we have done the best performance with the rating of BREEAM outstanding. You see 2 of our buildings, the VGP Park Parma in Italy, which last year, we delivered to Mutti, the tomato producer, and our Park in

Keckemet, where, amongst others, we also have Mercedes as a customer.

The deliveries in 2025 trending towards logistics, but you see immediately that there is also some quite big productions inside. Hyundai Mobis was a very nice one. We delivered a 50,000 square meter facility in Pamplona. And we delivered to VAT, as I already said, this building for this vacuum valve producer. On the 2 pictures which you see in the -- you see VGP Park Cordoba, which is a production, by the way. And then you see our VGP Park in Montijo, which we delivered last year and which for the biggest part is a cooled and deep cooled warehouse for Logifrio.

The portfolio at share has grown organically and completely organically because we only develop everything ourselves and then we place it in our joint ventures. But it has grown at an annual compounded growth rate of 21.9% and it's gone up from EUR 5 billion to EUR 5.6 billion. We offloaded since 2022 EUR 3.4 billion of gross asset value into the joint ventures. And we aim this model works very well. We aim to continue to do that.

Yes, it's -- if you look at it, Germany is still the strongest market, although the others are now growing maybe a little bit faster relatively. The Czech Republic is now almost EUR 1 billion in assets. Spain is growing quite well. And in the Netherlands, this year will be a huge uptick because we already leased out 60,000 square meters, which is under construction. But we are working on a very big new lease agreement in the Netherlands, which will take out our entire park in Nijmegen.

The investment portfolio on 100% view has grown to EUR 8.7 million, which is up 11% year-on-year. And Western Europe represents 74% of the total portfolio value as of December 2025. You can see the completed is EUR 7 million. Development land is EUR 770 million or 9% of our total investments. And under construction, we have almost EUR 1.930 billion, which is also 11%.

On the development side, the portfolio under construction represents EUR 85.3 million of new leases. And as per today, 43 buildings are under construction, which represents 1 million -- just 1 million of square meters. It's 75% pre-let, including pre-lets on development land. When we finalize these LOIs which we have in the pipeline, it will be well over 80%. So I think it's on a very healthy basis at the moment. We have started last year 761,000 square meter of new buildings in 2025, and we aim -- we have to already start up 450,000 square meters if this materializes, which is already pre-let, which is the highest which we ever had at the beginning of the year, pre-let, to be started up in a given year. So that's a very nice forward-looking thing to have.

You can see again on the right side, you see our park in Rouen, which is now virtually fully let. We only have one last unit left. And then -- and a small one, 4,500 square meters out of the total more than 100,000 square meters -- total more than 150,000 square meters, which we are constructing there. And then you see our VGP Park in Veijle, Denmark, where we also have one last unit left, also 4,500 square meters.

Yes. Again, it's well spread across our geographical footprint. You saw what is the income-generating assets or the assets overall, which are already that Germany in the income is more than 50%. In the -- what is under development, it's only 36%. You will see that the other countries are relatively growing a little bit faster now. They also are becoming more and more mature. France is a big market. Spain is a big market. The United Kingdom, I'm sure, will come up to speed soon. So we think that we will be able to do some very nice developments all over Europe. 2025 was also the first year where we had buildings under construction in literally every country where we're active in. That's never happened before. So that is now -- we have everywhere now buildings under construction.

On the landbank, the picture you see is our beautiful park in Nijmegen, where we have Ahold Delhaize and Bol.com in one of these buildings which you see. And the land bank in front, that's only a very small part of it because we still have more than 20 hectares available, where we now have started groundworks already and we are already under construction for one client which we signed at the end of last year, Pragma Trading. And then we are negotiating -- we have signed an LOI for the rest of the land bank.

The land bank, of course, it's something I am very much dedicated to because it is our -- it is the source of our future growth as we develop everything ourselves. And the land bank -- Piet likes to make bridges, so we have also this in a nice bridge. We owned in 2024 when we started or beginning of 2025, 7.4 million square meters, which is fully permitted, by the way. We acquired 1.37 million of square meters, which we always acquire subject to having the permit in place. So that's also fully permitted. We deployed 1.6 million square meters last year. We sold a little bit, a couple of square meters, but that's nothing.

And then -- so we owned at the end of 2025 7.09 million square meters. But we committed, and in December, we had 3.15 million square meter of committed. So that's land which we have binding agreements on and which we then buy at the moment when we have the permit in order to be able to use it for its intended purpose. So that brings the owned and committed in December 2025 to 10.25 million. And we have another under option and PV contract of 1.51 million square meters. And this means that roughly -- because the 4.3 million is just the ground floor space, you need to calculate mezzanines and offices to it, but at least 4.5 million can be developed on this total land bank versus the 7 and a bit million of buildings which we currently have either finished or under construction.

I also try to take a look -- a very pragmatic look at the land bank. And everywhere, we need to have a nice margin, which, of course, makes it -- in Germany, the yields are a bit lower than the exit yields than they are, for example, in Romania. But we try to target everywhere the same margin. So we -- and we have been able to target lands in all of our countries and the land bank is geographically well diversified. We have some specific countries we really need to take a look at going forward, but we were able to secure quite some really nice land plots, and I will talk a little about it also in the outlook later on.

This is the first part of our operational results. I'll come later back to the JVs. But I'm now going to first give the word to Martijn to talk a little bit about our renewable energy company and its income.

Thank you, Jan. First, giving a short overview of how our renewable energy business has now actually developed 2 segments. Jan already mentioned it at the beginning. Photovoltaic has continued to grow, and we added a good 50% to the revenues for the photovoltaic business. But something that is still a bit nascent, but for which we see good prospects is on the battery projects. You see there's in total 258 projects on the photovoltaic side. There's a few less on the battery side. But actually, it's -- in terms of investments, we see a good opportunity both to deploy capital. There's around EUR 4 million invested now, but yes, we see that grow substantially over the coming 2 years.

And certainly, if you see the megawatt hour deployment that becomes -- with 173, that's a good 30% of the total in renewable energy. So -- and as Jan mentioned also, the profitability of this business is typically much better than for the photovoltaic. So this will start to add to the EBITDA line for renewable energy in 2026, but even more so in 2027 and onwards.

The big constituent of renewable energy remains the photovoltaic business. Certainly, in 2025, we've seen a good growth. As I mentioned, the revenue came from EUR 8.3 million, and we've added another EUR 4 million to the total revenue, which was driven by additional production that was now over 130 gigawatt hours. Energy price at which we've been able to sell has remained broadly constant.

If you look at the outlook, we've added another 13% in operational photovoltaic this year. So you will start to see that also in the production figures for 2026. And then there's another 35-megawatt peak that is under construction, which we expect to become operational in the course of this year. And I think the last thing to add is that the overall yield for photovoltaic has now popped over 10%. So the overall investment of the projects that are operational is EUR 110 million. And as said, gross revenues was EUR 12 million. So the gross yield has actually for the first time now popped over 10%.

Then maybe also briefly on the corporate responsibility. There is one thing here highlighted on the left-hand side, which was something that was recognized at the end of last year by Time Magazine in cooperation with Statista. They've done sort of a science-based and quantitative assessment of all the listed companies across the globe. And based both on our financial revenue growth as well as the sustainability metrics that we have been able to accomplish in 2025, they've highlighted us as one of the top 100 companies globally in terms of realizing sustainable growth.

I think one of the big contributing factors to that is the EU taxonomy, which you see on the third on the left in the smaller boxes. We've now achieved 68% of the total portfolio. But certainly, if you look at the new productions or new construction, we've actually been able to verify EU taxonomy for 95% of the buildings that we are currently constructing. That's all under the EU taxonomy new construction regime. So that's quite a strict regime, which we've set ourselves. And yes, with the 95% you hear, that really has become our internal market practice to adhere to across the group.

A couple of other metrics that we've highlighted here that I'll leave to you to read at your leisure. I think we can move on to the joint venture update. Jan, back to you.

Yes. Our joint venture model is a little bit the cornerstone of our growth model going forward. And so far -- I'll go to the next slide -- we have -- you can see it's been growing consistently. We have done a new transaction last year with Saga, which is our fifth, sixth, whatever you call it, joint venture. And it's now more than 60% invested. And when we are going to do the next transaction, which is planned for the second half of this year, we will be virtually for a big part already fully invested. There will remain some parts of it, but we foresee a very material transaction in the second half year. And we have very positive and constructive talks ongoing also with Saga to continue with the next stage, next vehicle, which we would like to start up in the course of 2027, then going forward after Saga is fully invested.

If you look at Saga -- well, as I said, it's 60% deployed. There remains roughly EUR 600 million of gross asset value. And as some of the parks which we have transferred have some little spaces left, which -- where tenants have expansion option, et cetera, we think that we will do a transaction which will exceed EUR 500 million in the end of the year, where actually everything is already identified. And we have been able to go a lot faster than originally foreseen, also thanks to the fact that we have enhanced the scope of countries in which we do our investments.

In the beginning, what you see, the original scope, the dark green, it was Germany, France, Czech Republic, Slovakia and Hungary. And we have added to that Denmark, Austria, Italy and the Peninsula, Spain and Portugal. And so we now have a lot of assets which we can do. We have 989,000 square meters or 39 assets already spread over all these countries which are in site, and that's 60% of the total gross asset value which we have foreseen to deploy over the first 5-year period, which will become a 3-year period, I think, because by the end of this year, we should normally be fully invested.

We also announced today for the first time that we are working with East Capital, a company which we know already for a very long time. Very nice people out of Sweden. I don't know if they are looking, but hello. VGP and East Capital is to set up a partnership to launch a Luxembourg-based real estate investment fund focused on European industrial logistics real estate with an emphasis on Central and Eastern European countries, not only but mostly. The targeted gross asset value we have agreed upon is at least EUR 1.5 billion. We hope to be able to do a first closing and we trust to be able to do a first closing in 2026 in the second half of the year.

VGP intends to keep up to 50% and the remaining equity should come from third-party investors. The management will be shared between parties. There is no difference between the asset management and property management profile, which we had with the former joint ventures. It will become -- it will be the same. It will be East Capital's responsibility to do the fundraising and to do a little bit of investment advisory. And the portfolio will consist of -- what we are going to buy will be income-generating assets, all ESG aligned in the countries which you see. So it will come a little bit from everywhere, but with an emphasis on Central and Eastern European countries.

That's it a bit on the JVs, and I will give the word now to my brother, Piet, for -- to explain the financial performance. And by the way, what you see on the picture is our park in Serbia, where the building on the right side is Ahold Delhaize, which we have built brand new, which has taken into operation. And the second building, the main tenant there is the Metro Group. And both buildings have been also delivered and both buildings also are BREEAM excellent awarded.

You stole my intro Jan.

Sorry.

As always, I have prepared for you a usual slide deck with P&L, balance sheet, cash flow movements and some further details. And I'm happy to walk you through and also happy to report an increase in our profitability from pre-tax EUR 319 million to EUR 338 million. And as always, there is really a lot playing through our P&L given the fact that we have a hybrid model between own developments and a JV. So I think the best thing is, as also in former formats, to walk you through it in more line by line. We had an issue with some sound, so...

So first and foremost, you see that our net rental and renewable energy income, it has increased with 31% to EUR 88.7 million, basically exists out of the gross rental income or the rental income and the renewable income. The gross rental income on our own balance sheet increased 32.7%, which is EUR 86.7 million --- to EUR 86.7 million. But if you look at it on a proportional basis, meaning this EUR 86.7 million and our share in the joint ventures' gross rental income, this effectively grew from EUR 203 million to EUR 235.5 million of gross rental income.

Maybe just to make a quick recap to what has Jan been presenting before, is we have in the group on an annualized basis EUR 468 million of contracted rental income. From that EUR 468 million, EUR 146.6 million is on our own balance sheet, of which EUR 78 million is active. That EUR 78 million could compare to this EUR 86.7 million, but it is, in fact, more. That is because, of course, we had done a transaction with Saga at year-end, and that still delivered us EUR 15 million of rental income that portfolio before we transferred it into the JV. And on an annualized basis, that transfer was actually EUR 29 million of rental income. So that's it about the rental income, a good positive increase, all built up organically.

In terms of the renewable income, we also see a strong increase, 43% to EUR 11.9 million, coming from EUR 8.3 million on gross renewable income. As Martijn has presented, this was an effective increase in production from 90 gigawatts to 132 gigawatts or a 47% increase. So that brings it down on the net rental and renewable energy income, an increase from EUR 67.7 million to EUR 88.7 million, but also at share from EUR 189 million to EUR 223 million or up 18% in comparison to 2024.

The next line in our P&L is the joint venture management fee or the joint venture fee income. It's EUR 32.7 million last year. That grew with 59% to EUR 52 million. Here, there are also some -- quite some particularities. The joint venture fee income basically exists now out of 3 components. One is our property facility or asset management fee, which on a recurring basis grew with EUR 4 million, and then there is also a provision for EUR 18.4 million on a promote.

Just as a quick reminder, we have multiple joint ventures. The first joint venture, Rheingold, comes up to maturity in May 2026. It has already been extended for 10 years. But after the 10-year -- or the lapse of the 10-year period, VGP is entitled to a promote based on the net IRR performance of that joint venture. Now the net IRR performance, and we are particularly proud of it, has been very good, and we have a 12.4%. This is really net IRR really on a cash level basis after all asset management fees, taxes and whatsoever. And since we have surpassed the hurdle, we have now at 31st of December booked a provision of EUR 18.4 million. This provision, of course, will be updated in the first half at 31st of May based on the valuation of the portfolio as of then, plus its operational performance. So it is our best estimate based on the track record until 31st of December.

And then finally, the remaining part is the development management income. We perform works on behalf of the joint venture. This decreased with EUR 3.2 million to EUR 2.5 million. But overall -- so the joint venture management fee significantly increased to EUR 52 million. And on a recurring basis, we do expect it to increase further in 2026 because we have done a transaction, for instance, in December, where we also have an asset management fee on, which will be accounted for in 2026. Plus then, of course, all of the transactions that we foresee to do, one with Saga and also with the new East Capital fund, which will also lead into increases of our fee income with the JVs.

The next line, that's always a strong influencer on our P&L, that's the net valuation gains that we record on the investment properties. These increased from EUR 187.1 million to EUR 243.6 million, and they are actually composed out of 2. Jan has already hinted to it also that we have an unrealized gain of EUR 183 million, which is an increase of EUR 89 million, which is mainly related to our development activities. That's the profit on our developments.

Whereas there's also a second component, which is the realized gains. That means that we have sold assets towards the JVs or, for instance, also the disposal of VGP Park Riga at a higher level than it had been recorded for in our books, versus the fair value in our books. This led to a EUR 6.5 million additional profit. And our own portfolio has a weighted average yield of 7.48% versus 7.22%. Of course, the number, sometimes we get a question, is a bit higher than in our JVs. But in JVs, it's 5.22%. That is because it's more skewed to Western European countries in the JVs and fully stabilized assets, whereas here, we are still having assets under construction and also quite some Central and Eastern European assets, which have a higher yield, on which, of course, we have also now the nice opportunity with East Capital.

The next line on our P&L is the administration expenses. They are quite, you could say, broadly in line with last year from EUR 61 million to EUR 63 million. In average, the remuneration went up with EUR 1.6 million. But we also had a depreciation increase of EUR 2.2 million. That is mainly related to our renewable energy installations, which are recognized in a cost model, so at acquisition cost and depreciated. We have a general -- I need to move this -- EUR 5 million increase in general admin. Part of that was also the marketing campaign that we launched in 2025. And then since we have more assets under construction in comparison to previous years, we have also higher capitalized expenses on our assets or investment property, which offsets the extra cost of the above with EUR 6.7 million. And at year-end, we have 434 FTE.

Next line is the share in the net profit. And there, we actually see a decline from EUR 92.7 million to EUR 41.3 million. But I can actually explain, I think, what has happened there in the bridge versus last year. First and foremost, the -- and I don't know if you see it also what I'm seeing, but there is a line missing. There is a -- but anyway, the net rental income increased from EUR 121 million to EUR 134.7 million. That's an increase of 10.7%. But the big driver or change in the JVs is the net valuation gains, where it was a positive of EUR 54 million, it actually reduced with EUR 65 million to minus EUR 10 million.

This was driven by a number of facts. One is we have done a few settlements with the JVs where the JV had to pay us a top-up on previous closings, which was a negative impact on the valuation in the JVs. But the second element was mainly that there was -- and there is a strong German portfolio inside of the JVs, which was negatively impacted by a valuation change. So the average yield went from 5.05% to 5.22% in the JVs and the German part was a devaluation of approximately 2%. The appraiser effectively reviewed its prime yields for the country, and as Jan was referring to before, also had -- updated also his discounted cash flow model, foreseeing rather an 18-month vacancy period than a 12-month vacancy period when contracts would come to an end.

Now as we mentioned before, we do not see that trend at all in our German portfolio. In fact, everything what we released last year was at 21% prices, averagely higher, as well as the average term to release something was 2 days. So we didn't really see this. But nonetheless, it did impact a bit our German portfolio and within the joint ventures.

Then the other expenses that you see there, it's actually the promote at share. All of these -- what we see on the bottom table is at share. So it's EUR 18.4 million for us. But it's a cost to the JV. And at share, since we own 50% of the JV, it's EUR 9.2 million. Admin expenses were broadly in line. And I think if we disregard once the valuation movements, then we are actually seeing a very strong set of EPRA results on the joint venture, which is a testament to the very strong operational performance of the joint venture because the EPRA earnings are up 25%, but also our cost ratios are down. So in general, we are actually very satisfied with the performance of the joint ventures. Hence, also, for instance, the above 12% net IRR that we could achieve on the Rheingold joint venture.

Next point in our P&L is the net financial result, which went from an income to a cost of EUR 24 million. This is -- of course, we raised the EUR 576 million of debt last year at a coupon of 4.25%, which gives already a delta in a higher interest cost. On the other hand, also in 2024, we profited quite a lot, also in 2025, but the interest came down on interest on cash on hand. We usually put quite some money on term loans and try to optimize it maximally as possible. But last year, this was an income for us of EUR 12 million. Now it was EUR 5 million. So it's a decrease of EUR 7 million.

We have some higher capitalized interests of EUR 3 million. That is because we -- just like the capitalization on the admin expenses, we have higher amount of volume of assets under construction. So this leads to a high capitalized interest of EUR 3 million. And we have a decrease in our interest income from the JVs. I would say the shareholder loans in the JVs, they effectively increased. But of course, there have been distributions through repayments of shareholders during the year. And only at the end of the year, we created a new shareholder loan with the Saga joint venture because the transaction only materialized in the second half of December. And also, we partly capitalized part of the noncurrent receivables or the shareholder loans on the Deka JV, which also decreased a bit the interest income.

And then finally, as you may recall, we raised EUR 576 million of bonds. But we also bought back in 2025 EUR 200 million worth of bonds, for which we paid EUR 195 million. So we made a profit on that of EUR 5 million.

Going to the next slide. He doesn't want to go to the next slide.

Yes, he did.

Okay. Where Jan also already referred to, and it's a particularly good performance over EBITDA. So the EBITDA is up EUR 100 million versus 2024. So up to EUR 455 million or an increase of 28%. And the increase is to be noted in all of our segments. So in the Investment segment, where we show the EBITDA of our completed portfolio, excluding any valuation gains, you see an EBITDA going from EUR 204 million to EUR 249 million. This represents, actually, if you look at into our balance sheet, EUR 2.9 billion of our total assets.

In terms of Development, as I explained before, net valuation gains of EUR 243 million, composed of the good development profit traction that we have -- something is happening here on the -- with the -- yes, I'm back here. The good traction that we have on the development profits and realized gains. So our EBITDA also increased from EUR 145 million to EUR 199 million. And then the gross renewable energy also has a nice EBITDA increase given also the 47% extra production that we managed to produce in '25 or a 43% increase in its gross renewable energy income.

In terms of the balance sheet, we see a strong increase of our total assets and total liabilities from EUR 4.6 billion to EUR 5.2 billion. The investment property is now EUR 2.4 billion, which, of course, composed of a completed portfolio of EUR 915 million, under construction EUR 777 million versus EUR 579 million. So you see here also the increase versus '24. And then development land, as we did buy quite some very attractive land plots, also increased from EUR 645 million to EUR 728 million.

We did about a total CapEx of EUR 660 million, which is composed of about EUR 490 million on assets and EUR 150 million roughly on land acquisitions. And I mentioned already the weighted average yield of our investment property, 7.48%. The property, plant and equipment, the EUR 141 million, it's an increase of EUR 18 million versus last year. This is mainly related to our renewable energy installations, where we had a EUR 19 million CapEx. And the completed installations, where also then the EUR 11.9 million of gross renewable energy income is coming from, is generated from a complete installation of EUR 109 million, and what is still under construction is EUR 18.6 million.

And our investments in joint ventures increased quite significantly with EUR 109 million. Now we have done quite some transactions with the JVs, not only the Saga closing, but as I mentioned also before, there were some settlements on previous closings which were to the benefit of us, which increased the equity contribution into our joint ventures altogether with roughly EUR 100 million or EUR 98 million.

Then we, of course, have -- since it's reported under equity methods, the allocation of our result or our share in the result of the JVs, which is EUR 41 million. And then we received equity repayments from the JVs, so dividends of EUR 30 million. I will come back on the distributions of the joint ventures in the cash flow statement.

I already mentioned the other noncurrent receivables. So they increased with EUR 63 million following the transactions with Saga, but we also got EUR 32 million of joint venture loan repayments. These were the 2 main movements, I would say, on the noncurrent receivables. And then we ended the year with a cash position of EUR 523 million, got EUR 31 million more than we had last year. And on the disposal group held for sale, the EUR 27 million, that is the VGP Park Tiraines, which is going to be sold in H1 '26. That is under a call option of its tenant. It's located in Latvia, and the transaction is about to be materialized. Everything is more or less done.

The shareholders' equity increased, as already mentioned before, from EUR 2.4 billion to EUR 2.6 billion, very easy movement, EUR 290 million profit, EUR 90 million dividend going out. So that makes the movement there. And then in terms of our financial liabilities, that increased from EUR 2 billion to EUR 2.360 million (sic) [ billion ]. This follows a EUR 576 million bond that we raised in H1. It was actually EUR 500 million with a top-up of EUR 76 million. Then from out of that, we did a tender on our outstanding bonds of January '27 and '29 of EUR 200 million. And '27 was reduced with EUR 179.9 million. The one of '29 was reduced with EUR 20.1 million. But we effectively paid EUR 195 million on that.

And then there was also a bond that came to maturity in March of EUR 80 million, which was also repaid. And then we moved to current financial debt at year-end, now the EUR 190 million bond, which is due in March. I'll come back on the debt also in one of the next slides. But our average cost of debt is now at 2.7% as at 31st of December '25.

And as you may recall, we have also revolving credit facilities, which are untapped. They amount to EUR 500 million. We increased them during the year, and we also prolonged to them. There are more -- there's more info to that in our press release on what and to what extent it has been prolonged. But in the end, it comes up to a consolidated gearing ratio of 35% or a proportional LTV of 50%. We also have a Fitch, and also since 2025, an S&P Global rating. Both investment grade with BBB- and a stable outlook.

I already made a reference to this I think in -- on the previous slide. So our average cost of debt increased to 2.7%. We have a significant liquidity position. And the bond maturities, I've updated it here already, given the January '26 -- in January '26, a few weeks ago, in fact, or 1 month ago, we raised EUR 600 million bond. And from that bond, we also repaid EUR 100 million on the outstanding January '27 bond, which was originally EUR 500 million. We reduced it with EUR 180 million in '25, and we reduced it again in January with EUR 100 million. So it's now still EUR 220 million. And then the remaining bonds to be paid are listed there. But you can see the one in 2025 has a maturity, the EUR 576 million, in '31, and the new one, which was raised in January, has a maturity in 2032.

Speaking of the cash flow statement, we started the year with EUR 492 million. The net cash generated from operating activities is EUR 51 million. Just as a side note, we did an update to our cash flow this year, where interest paid, as you can see now in financing activities, has been moved from operating to financing activities. We felt it's more correct there. It has also been restated in '24. So we go from EUR 33 million to EUR 51 million.

I have a bridge on the left. But in essence, we have spent EUR 171 million in investing activities. The proceeds from disposal, the EUR 389 million, is related to the Saga JV and the disposal of Riga, plus some settlements with the joint ventures. From the EUR 660 million of CapEx that we see on investment property, an effective EUR 642 million has been spent. The remaining will move through our working capital on CapEx payables. Loans to JVs is a loan to one of our development joint ventures.

And then distributions by joint venture, what I referred to before, EUR 82.7 million, broadly in line with last year. The EUR 82.7 million is a combination of interest payments of EUR 20 million, shareholder repayments of EUR 32 million and equity distributions of EUR 30 million. It depends a bit joint venture-by-joint venture, how we take out the excess cash that is inside. That's why I also group it here for simplification purposes. But we all consider this as distributions. There were no investments in joint ventures. That's mainly then related to development joint ventures.

And then in our financing activities, so we paid an interest of EUR 48 million. We paid out a dividend in May of EUR 90 million, which we now propose to increase from EUR 3.3 to EUR 3.4 in '26. So that will go to EUR 93 million as cash out in '26. Then we had proceeds from loans, which is the bond raise of EUR 576 million. After costs and deductions, it's EUR 565 million net cash in. And then the loan repayments, it was a bond that we paid back of EUR 80 million. And then the EUR 200 million that we paid back for EUR 195 million. So EUR 195 million plus EUR 80 million is EUR 275 million that we actually repaid. So that means that we end the year with EUR 523 million of cash.

I think I maybe explained all of this already, but maybe there's one more nice thing to note that is that we raised the bond in April of EUR 576 million at a coupon of 4.25%. We did one in January at 4%. But underlying, there is quite a big difference, because the EUR 600 million bond that we raised in January was at our historic lowest spread ever, 150 basis points. Of course, it was a bit upset and offset with the increase of interest versus the previous bond. But nonetheless, it was still at a cheaper and it was a very successful transaction that we've done. And now the maturity profile of our bonds are as follows.

I believe this was, I think, my last slide. So I hand it over back to Jan.

Yes. Thank you all for listening until now. A summary and the outlook. I am personally very happy that our result is even more and more cash generative and that the profitability of our new developments going forward is going up again. With all that we are going to start up this year, and we are quite bullish on it, we think that we are having a good year in front of us in 2026.

On the relettings, as we have seen, our portfolio is -- we've never had to transact something to the joint ventures with a loss. And if you look at our relettings, they were during 2025, 14% higher than the rental price which they were let at before. And as Piet already said, on average, it took us 2 days to relet in Germany, where our reletting was 21% higher than the one before. And we have heard through the former reporting periods a lot of concerns about the German market, where we have a big exposure to. But we feel very confident in site, and we also see a lot of activity. We have a lot of new things going on. So we feel really very confident on that.

The margins on our new developments, they are EUR 103 million. But there is really a lot in the pipeline, and I already talked about it. There are a couple of LOIs on which we are now finalizing. So cost reimbursement agreements is a better term for it, where we have agreed with tenants mainly out of the e-commerce sector that we're already going to line up everything so we can negotiate the relatively complex lease agreements because they are also relatively complex buildings. But we are on track to close them all before the end of the first quarter, some of them even in this month. So we're really in final negotiations. We already signed one with [ PE ] Capital last week in Bucharest.

And if we look at it, we see that e-commerce is back on track and starting to look really again -- what they had over rented in 2021 and '22 has now been consumed, and they are back on track with growth, which is I think a very positive for us. So if these things materialize, we will at least start 450,000 square meters now in 2026, EUR 80 million which we need to start of rental income, which is already contracted, which is the best position I think we've ever had in our history. So looking forward.

And that's very much supported also by the unlocking of some of the historical iconical parks which we have bought and which are mainly brownfields. And brownfields always take a little bit of a longer time to develop. But if I look at it, we're going to start construction this year on La Naval in Bilbao.

We are going to start demolishing Nuremberg, for which we have a lot of demand. It's a super location, and we're going to start construction. We also are talking to some people out of the defense industry. We have already paid a visit to Hagen, which we bought just after the year-end with a very big tenant and which has been welcomed. Hagen is Dortmund, right next to Dortmund. It's a very nice site, which disposes of a 90-megawatt peak capacity of electricity, which is active. And so which opens a lot of opportunities for us.

We're well proceeding on our Russelsheim development, and we're also very well proceeding on our permitting there because we needed to do a new B plan in Russelsheim, in which we also incorporated our data center and development which we aim to do. And I was puzzled by the presentation which Sarah gave to me about data centers coming from Microsoft. If you look at the actual installed capacities in the big conurbations of Europe where it is -- where everybody talks about, it's actually not that much as you would think. London is 1.7 gigawatts, Frankfurt also. And if you think about us in Russelsheim probably being able to do quite a bit more than 100 megawatts, that gives a total different perspective about the possibilities of our land plots. And we also have a very nice opportunity in Italy, and we're looking at other land plots in Germany. We think that, that would be nice.

We also are going to have Verona coming online this year, our new land plot in Velizy, Paris, which is now -- for which we have also received the building permit and for which we're going to sign our first lease in the next couple of weeks. So all-in-all, we think that we have a very sunny future in front of us, as you can see on this picture, which is our park in Montijo, which is in Portugal.

And then, of course, we are looking very much forward to the further diversification of our joint venture model. We are in continuous talks with our friends from Areim to do the follow-up of our Saga transaction. And also now we have announced it now publicly and we're very much looking forward to our cooperation with East Capital. And we have 2 legs to stand on them going forward and we hope it's going to be a big success.

That's a bit, I think, the summary and the outlook for the next year. And I think that we can now move to questions from your side.

[Operator Instructions] The next question comes from Marios Pastou from Bernstein.

I've got a question mainly around the new partnership with East Capital. I think on the slide, you mentioned the potential for at least EUR 1.5 billion of gross asset value in scope. So I'm just thinking maybe part of the agreement, if you could give some more details on kind of what that total investment volume could scale to, if you've agreed a time frame or a target to reach that fully invested level? And whether the structure is broadly similar to what you've agreed in your prior partnership?

Yes. Shall I take it? We can develop on our total -- on the total land bank at the moment, roughly something between EUR 6.5 billion to EUR 7 billion of new assets, which we are -- including what we have already -- which we still have on our balance sheet. So that is all possible to transfer into new joint ventures going forward. And we have already envisaged and we've already defined quite a large portfolio, which we could transact because it's already income generating and delivered in this year. So we have said we want to do at least EUR 1.5 billion. I think we're targeting more, something like EUR 2 billion. But that is a momentarily view at the moment. When we start, it can also grow bigger. We're very confident on the fact that we are going to be able to deliver -- well, VGP is delivering all the time new assets and all the time starts up new assets. So it will keep on growing in the future.

I think in general, it's indeed more or less a copy of our current joint venture model with an investment period, 3, 4, 5 years. And what we develop, we will offer. And it's broadly similar. We will retain the asset management services on the -- as it is in the current joint venture basically.

Yes. Structurally, it's actually the same. What is different is that we are not targeting one single partner per JV, that we are targeting multiple partners at the other side. More something like a fund structure than just a single JV with one single investor at the other side.

The next question comes from Vivien Maquet from Degroof Petercam.

I hope you can hear me. I had a follow-up question also on the JV. Just to understand from the fundraising perspective, what kind of precommitment do you have on the third-party investor because I just wanted to see because you mentioned a closing in the course of the year. But do you have the -- I would say, the equity already being raised within the fund? Or what [ commitments ] you have on that fund? And also on the structure. Is it closed-ended or open-ended fund?

It's foreseen to be a closed-end fund. And the raising of the funds is an ongoing exercise, which East Capital is predominantly occupied with, knowing that, of course, East Capital has a solid investor base inside of their existing funds. And this is an addition, more of a unique product that they can offer. But it is an addition to what they have in their current fund business. And the exercise is currently ongoing. We are targeting a closing by the end of the year. I think that's about it what we can say today.

Yes. It's a regulated business, Vivien, raising capital. So we can't really say what's been committed already. It's prescribed quite precisely what can and cannot be set in such exercises.

Okay. And then just on the shares management agreement. I understand that deviate a bit from the previous joint venture. What does it mean for you in terms of recurring income you're going to drive from that joint venture?

We expect a similar income model that we have with our current joint ventures also. There is indeed a sharing of services with East Capital, but it's somewhat similar, for instance, with what an Areim or an Allianz also does with their investors behind who are invested into our joint ventures. So East Capital will mainly look into gathering the funds and also doing the investor relations with the investors that they have been able to target. But other than that, our services remain the same. And we expect broadly the same revenues to be incurred from all of the disposals into the JVs.

The next question comes from Wim Lewi from KBCS.

I've got 2 questions. One is a small one on East Capital, if I can bother you with, is does the new fund also allow for countries that were not eligible for the other joint ventures to be transferred? I'm thinking, for instance, on Serbia or maybe other countries that you can now offload more into the future?

The East Capital fund is a Pan-European fund. So every country where we are active in is, in fact, targeted. But it will be skewed more to the Central and Eastern European countries. But in essence, everything -- all countries are on the target list of the fund.

Okay. And then a follow-up, if I may. It's really on these valuators increasing yield in Germany and then especially in the JVs to 5.22%, which you explained that it's based on vacancy. Now you obviously have good leasing activity, which you explained many times. But could there be like a timing difference, because they do that at the end of the year, whereas you have done the re-leasing over the year. Can you give an indication of the amount of re-leasing you have to do in '26 and what you expect from that?

We have very little re-leasing to be done in 2026. And so far, what we see is that, again, also for the things in 2026, which are coming available, we already know on beforehand and mostly months on beforehand that we are going to have a follow-up tenant. So what the valuators have taken as an assumption from a 12-month vacancy period, which we never had in Germany, to an 18-month vacancy period, we find it -- and we've tried to argue about it, but they take a view of the market. We find -- we can't say that we see that reflected in our own portfolio. I don't know what it is about. Maybe it's about older buildings or maybe it's about the total market view. But in our own portfolio, Wim, we are very confident and very -- that we have solid demand for everything. So we don't see, neither expect any deterioration of that in the months going forward. On the contrary, we have a lot of new lease negotiations ongoing also for new buildings.

Maybe if I may, because what we see or what we hear from WDP and Montea is that they can't find anything to buy above 5%. So could there be deals maybe in the near future that could review their case, that if we see that yields come down in deals. Is that something that you expect?

Well, we hope so. We certainly hope so. Also the promote calculation which we have done is based on our risk valuation at the year-end. So it's just our current valuation, where okay --when we are going to have the valuation in May that's going to be based on the capital markets valuation, where the valuator really looks at the transactions as if we were to really sell -- and that's probably going to be a little bit different. We don't know north or south. But we think it's going to be different than what is our risk valuation. Until now, every transaction which we have done with our joint venture partners when we had a real discussion about the valuation, we always had a better exit yield or we always achieved a better exit yield than what we had it in our books for. So we're trying, of course -- we want to be a fair partner, but we are trying, of course, to defend our position also. That is more than normal, I think, in business. And I don't...

[Operator Instructions] The next question comes from John Vuong from Van Lanschot Kempen.

At the end of last year, you had 780,000 square meters under construction. Deliveries came to just short of 500,000 square meters. Were there some delays in the deliveries? And if so, what has been the reason for these delays? And looking at your pipeline going forward, it's currently sitting at a pre-let ratio of 75%, and you're saying that you're seeing quite some strong demand. So how do you think about the size of the pipeline under construction? And what are your thoughts about more speculative developments over the next 12 months?

Yes. Yes, when you report, you always have a cutoff, which is at the 31st of December, and you need to take a look at it. Whereas in development, it's not always really linear. You have sometimes customers which have demands for changes in the building, which entail relatively complicated situations and which makes the delivery going over the reporting period. That's one of the things where we are. So I think you need to look over a period of -- a longer period of time to see really the tendency and not just in the cutoff of 1, 6 months period. That's the thing. We -- I want it to be -- although we have a big incentive to construct more because we now have our costs really back under control as inflation has come down tremendously.

And in the construction industry, in every country at the moment, we can achieve attractive pricing. At the same time, we're also trying to manage our portfolio, so not to create too many vacancy or too many speculative buildings. So we look at on a country-by-country basis, but we try to limit really our speculative buildings to an acceptable level, which for us is -- it should be -- we should be pre-let above 70%. And ideally, by 8 months under construction, we should be above 80% -- above -- after 6 months under construction, above 80%, which we currently also are.

So that's the parameters in which we make the decision internally, do we do speculative developments, yes or no. And it's also depending on the demand which we see in the locations, because not all countries run at the same pace at the moment. So we are also a bit careful in starting up too much square meters where we don't see the demand for it. And on the contrary, where we see a lot of demand, we start up a little bit more. But as I already said, and I hope I was -- it came across enough, at the moment, we really have a very strong pipeline in demand. We divide up our demand, we categorize it in a first contact, a second where we already have commercial negotiations, a third where we have virtually an LOI agreed, and a fourth where we started the negotiations on the lease agreement.

And if I take the 2 last things, we have roughly EUR 50 million of negotiations ongoing, which I don't say we're going to sign all of it, but it's a very healthy indication that there is really demand which wants to contract at some point, because people don't engage with teams and with lawyers and with things if they have no intention to close the lease agreement.

So from that point of view, we, at VGP, with our current portfolio and our land bank and the quality of what we offer, we feel comfortable to start a bit more construction over the year. But I can't tell you a number. As I already said, we have roughly 450,000 which we need to start up anyway because it's already pre-let if these LOIs also materialize. And then, of course, we'll do a bit more because it will bring our vacancy levels -- our pre-let levels up. And then we have a bit more room to also start a bit of speculative buildings in those jurisdictions where we feel demand is strong and supply is very low.

The next question comes from Francesca Ferragina from ING.

I have 2 questions. The first one is about guidance. I understand that you never disclose the guidance. But can you just give at least some qualitative type of comments on 2026? Consensus is pretty dispersed and it doesn't help. And then the second question is on data centers. You managed to hire a dedicated person. Can you provide an update about the opportunities you see here?

We -- indeed, it's a bit difficult for us to give a guidance because we are not a REIT. Our VGP is a multiline model, where we have the development portfolio, where we have the rental income and we have -- it's different than a REIT. If you would only look at a REIT, it would be a little bit more easy to say what it's going to do. And going forward, we can also maybe make a projection of the rental income, what we expect for the year, because there we -- but also there, because we always transact between our own balance sheet and the JVs, it's not so easy to give you a reasonable view because we -- there is always movements from rental income, which is either on our own balance sheet and then it goes into the JVs and then it only accounts for 50%. So we'd rather not say something which we then cannot fulfill. We always give guidance on things where we think that they are achievable and where we feel ourselves also comfortable that we can achieve. And so far, I think, we've never promised something which we haven't delivered. That's something which we are proud of.

On the data center things, so we are not actively buying land plots with the aim of developing really a data center. I see too many accidents in the market. Just last week, there was a big announcement in the press in Germany where a EUR 2.7 billion investment in [indiscernible] was stopped by the local authorities. People had paid a tremendous land price for it and done all the efforts and then it was stopped. So it is really a very risky business because we have a huge congestion in electric energy. And starting to build a land plot and then going for it, it is a very difficult business going forward.

But VGP has a very big land bank, in the very big land bank, has some brownfields. Those brownfields come with a very big historical electric connection, which is there and available. And that's already a very big part of the transaction. And by coincidence, we are also 10 minutes away from Frankfurt Airport in Russelsheim. We've signed an agreement with Stellantis. That's the only one who can develop a data center on that land plot. They also still have a big reserve. But we have an exclusivity on data centers. And we have an agreement with the city on where the data center will come. And that it is going to be incorporated. It's currently part of the new B plan. And Sarah is working on that one and another one in Milan, where we also have a similar constitution, and where we think that -- and where we also have very intensive negotiations ongoing with most of the hyperscalers and some of the colocation investors, and where she is trying to manage that.

And we are trying to take a look at where in the value scale of from just selling the land to core and shell to power shell to completely finished, build-to-suit, and then to completely finished and operational, what we are going to offer and whether we should do that alone or whether we should do that with a partner who has already all the accreditee to -- because he already has done it, something. And as you can hear from me, we are in a very intense process of aligning ourselves in order to be able to bring the best result.

But this is a work which is not just -- it's not like developing a logistic warehouse. There are so many parts running around that it really -- it doesn't go so quick. So also the energy connection, it's not from today and tomorrow. Yes, in our case, it is. And then there is also the connectivity, the grid, et cetera, which you need to do for. And then we still have also to demolish in Russelsheim because now there is building standing on it. So it is not for tomorrow. But we're well on track. And that's everything which I can describe about it and disclose about it. Paul?

A couple of questions from me. Just wanted to check. Coming back on the pre-letting point, because I think that's been declining since 2022. I think you had a high of 89%. Now you're down at 69%. Just wonder what level are you comfortable going to in terms of pre-letting level? And what gives you the comfort in starting more and more speculative schemes as you have been over the last few years? And second question is, linked to that, is just looking at the yield on cost on completed developments. Did you have to give any rent concessions to lease these up? I think in the past you talked to tenant incentives or rent-free periods. Just to get a sense on that. And if you could quantify those, it would be great. And then I do have a very quick third question, but let's see if you let me ask that one.

Paul, on the first one, I think I already answered quite a lot of it. So yes, we've done a bit more speculative construction last year because our construction price came so much down. And we are currently -- after 6 months period, if you look at it, we are 80% pre-let. And we also have a lot of things in the pipeline where we feel very comfortable that we're going to sign it, which will take our pre-lets even more up. So we feel comfortable with today's level of pre-lets of speculative buildings under construction because we also see good activity and good demand on that pipeline going forward. So -- and we've built it for a very good price.

On the activity for the -- from the tenants, we are always -- because we did not buy land at excessive prices and because -- at the time when the land was so expensive, I told you all, I don't find this thing sustainable. In 2022, we really stopped. We didn't buy anything, if you look at it going backwards. We only bought Russelsheim, which we bought for a very good price. But the rest, we couldn't make working. So today, we are in a very good position because we can be aggressive on the rental price but still make a very beautiful margin. Our margin is actually going up instead of going down because we have so good control of our construction cost.

So we don't see anywhere where we need to give excessive rental incentives more than what we have been doing over the last 5 years. It's still the same. So we are -- it's a healthy market, I would say. Also the vacancy level which we see today in the market, 6%, it's not like we haven't had before, a lot more even than that. And I find it still very healthy that people finally have something they can look at, take a look at. And it's an advantage for us as a developer offering new things, where we can be aggressive on the price, that we can grow in a healthy way going forward. And yes, we can be maybe more aggressive than somebody else on some of our land plots because also we act as a general contractor in every country nowadays. And I think we have our -- I wanted to use the word shit, but it's our things very well under control. So it's really going well. Did you have another question?

Rent incentive wise?

That's what I said, just answered, [ Tom ]. So no special rent incentives, yes. And you had a third question, Paul. No.

The next question comes from Steven Boumans from ABN AMRO, ODDO BHF.

So I have some questions on what to expect for signing new leases. So on the LOIs that you mentioned, could you please remind me how much in annualized rental income you expect to sign in Q1? And second, to respond to John's earlier question, how does the EUR 50 million in lease discussions you talked about compare to 6 months ago?

As we said, we don't give guidance. So you've asked me to give a guidance on the first quarter. Well, we have really, let's say, EUR 25 million of lease agreements in final negotiations at the moment ongoing. Whether it will all be signed in the first quarter? I do think so that there is quite some nice things which are in final negotiations. And that's about the guidance which I can give. And if I look at going backwards, I think that the market today, it's -- last year, we signed a lot of lease agreements, really a tremendous amount of lease agreements, but they were all relatively small to the years before when we always had these 1 or 2 big ones standing out, which were really very big lease agreements. Last year, it was a lot more spread over many, many little -- or not little, but smaller lease agreements. On average, before, we signed 22,000 square meters. I think last year, on average, it was below 20,000 square meters. So that was a bit different in demand than it is maybe today, because today, again, we are looking at some very big leases which we are negotiating on.

Yes, the one in the Netherlands is huge. There are a couple of very huge ones in Germany ongoing. There is a very big one in Spain ongoing at the moment in final negotiations, I would say. So that's about what we can say about it.

The next question comes from Thomas Rothaeusler from Deutsche Bank.

Just one question on data centers. I understand you plan to provide concrete plans by the year-end, yes. But maybe you could provide a rough idea about the capacity for Milan and Hagen already. And any indications if it will be powered cell or fully fitted? I mean, considering the high-profile recruitment you have announced, I assume it won't be gas powered land.

You're asking me difficult questions to answer, Thomas. Yes, we hired a high-profile person, and she's a very lovely lady if you meet her with a lot of ambitions. And that's good because that's why we hired her for. We can do quite big -- I don't want to say anything about numbers because I'm going to say something and then it's going to be different, because we actually don't really know yet. But we have -- at the moment, we have a 50-megawatt connection available in Russelsheim from the grid. There is a power plant on our land plot, which is another 100-megawatt available. The question is, can we use it, yes or no, because it's a gas-powered power plant, and we are looking into it. We can expand that power plant quite significantly with gas turbines, and the gas can come from several ways. And that's an exercise which is ongoing.

So it's quite complex to give an answer to your question, as you understand yourself because we are still looking and puzzling the pieces together. And we need to take a look also at what is acceptable for a hyperscaler, which risk he wants to go because he needs to have absolute reliability and the Tier 2 at least supply of energy, which we don't have our things all aligned yet because it's really complex.

And the same is ongoing for our land plot in Milan, where, yes, we do have an agreement on the power supply. We know, plus/minus, when the power supply also will be available. But it's -- we are dependent on a third party. And yes, it's a very big capacity which we have been awarded. And the land plot is perfectly suited for it because it lies really on the super location for it.

But as I said, there is a bit of work to be done on it. And we are going to disclose in the right time when it's ready to disclose where we are and what we do. And I don't want to overpromise. I just wanted to give you an update on where we stand today. And that's in all honesty what I can tell you today. Frederic.

The next question comes from Frederic Renard from Kepler.

A lot of questions already been answered, too, on it. Maybe to have a view on Allianz and the intention from here? And anything new with regard to potentially new JV? And then maybe another question. If I look at the sequential increase in H2 from new construction activity, and you mentioned already a good LOI of demand, so should we expect H1 2026 to actually be sequentially even more bigger than H2 '25?

I will answer first on your last question, whether it's going to be more in H2...

Which one?

In H1 versus H2 last year is -- I don't have immediately in my mind. But we are going to start up roughly -- we have to start up quite some buildings in the first half year of 2026 because they are pre-let and we need to deliver within a certain time frame. So we need to start up. But I would need to calculate how much that is that is going to be for sure in the first half of 2026.

On general, I expect somewhere between the same amount as last year and a bit more to be started up during the year. I think we feel confident that we are going to start up a bit more than last year. So that's the answer on your last question.

And then on the first question regarding the JVs, I think we disclosed -- because it's a regulated business, so we've disclosed on the new JVs where we could. We can't say anything more than what it is. In the current JVs running, actually, everything is running well. There are no divestment plans immediately there. And all partners seem to be very happy with the performance of the things. As Piet said also, the EPRA results of the JVs are outstanding. The relationship -- the day-to-day relationship with Allianz but also with Deka and all the others is going very well.

And the only real discussion which is ongoing at the moment is about our promote, where we have now tentatively agreed on the metrics of how we are going to do it. Because originally, it was, of course, foreseen that there would be after 10 years a liquidation of the JV. But that is not going to happen. So now it's an exercise on which we need to agree. And that will crystallize by -- in the next few weeks. But I'm sure we will find an agreement with Allianz about what it is about.

And for the rest, operational-wise, everything is running well. We are going to -- we have also a refinancing upcoming in the Rheingold joint venture. That's all agreed. We have the term sheet signed. So there is no -- everything is aligned. So there is no clause on the horizon as far as I can see. Everything is good. I think I answered on your questions.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Yes. I want to thank you all first in the first place for being here, both my colleagues and analysts and investors. Thank you very much for listening to what we had to say. I'm looking forward to speaking to you again on our Annual Shareholder Meeting maybe or then in August with the update of our half year results and then we have this year or maybe before on some conference. I hope that I can see all of you soon.

As you could have heard from our side, it was a very busy year because we've done so many things and going forward, and it's grown all the time. But all-in-all, I have a good confidence in our sector that it has still a lot of growth capacity and growth possibilities and that VGP can play a significant role in that. And I hope all the others too, there is room enough on the market. Thank you for listening, and goodbye.

Goodbye. Thank you.

Thank you.

Thanks for participating. You may now disconnect.

Welcome to our webcast on the half year financial results of VGP. I will first go through the executive summary. And the building you are seeing here on the picture is our new plant in Pamplona, which we've constructed for Mobis. It's actually a battery-producing plant, brand new, and they are delivering from there out to many car producers in Europe.

I will first go through the highlights of the first half year. So we have a pretax profit. We reported pretax profit of EUR 208.6 million, which is an increase of 35% versus the first half of 2024. And that's while the valuations remain fairly flat. We have a net asset value growth of 10.5% year-on-year, up to EUR 2.5 billion. The EPRA NTA per share increases 4.8% since December and 11.5% year-on-year. We have an EBITDA growth of 31.7% with a solid contribution from our recurring rental business activities of EUR 118.7 million from the development activities in the amount of EUR 118.1 million, so almost the same, and in the renewable energy of EUR 2.1 million.

We have a historic first half record of EUR 56.1 million or 822 (sic) [ 822,000 ] square meters of new and renewed leases, and we're very upbeat on the leasing, which is ahead of us. We have a very large pipeline of lease negotiations ongoing. The annualized committed leases were EUR 441.3 million, which has grown organically 7% year-to-date and 14.7% year-on-year. Meanwhile, we are well over EUR 450 million already. We have 846,000 square meters under construction and our development pipeline is actually 76% pre-let.

We have 11 projects totaling 264,000 square meters delivered. They were 96% let. There is only one small unit left in Luxembourg, in Vienna, which we are confident we will be able to lease out in the coming months. And 49% of the buildings, which we delivered were BREEAM outstanding. We also delivered the BREEAM outstanding building in Italy, which is actually the first in all asset classes in Italy, which has gone -- which has received BREEAM outstanding.

Our photovoltaic capacity grew 20% year-on-year, and our operational capacity is at the moment at 177.3 megawatt peak versus 143 megawatt peak in June 2024. Our balance sheet total surpasses the EUR 5 billion marker, and we have ample liquidity availability, almost EUR 1 billion. We extended the maturity on outstanding financial indebtedness through the issuance of EUR 576 million bonds, and we did some active liquidity management. We bought back some of the outstanding bonds, and we repaid EUR 80 million of bonds, which came to maturity.

And then finally, we now have 2 ratings. Many of you have said you would like to see also Standard & Poor's. So we have obtained an investment-grade BBB rating -- BBB- rating from Standard & Poor's with stable outlook. The only one missing now today a bit is Moody's. So we have 2 ratings. I'll first go through the market update. The market update is provided on slides, which we have received from Jones Lang LaSalle, and we have put some ourselves comments on what we see. The building that you are seeing here is a build-to-suit for Mutti. It's full of tomato sauce in Parma in the valley of the food in Italy, which we have just handed over to our tenant.

The lease activity according to Jones Lang LaSalle in the European logistics take-up is 3% ahead on the pre-pandemic average in the first half 2025, which says a resilient logistics demand. Everybody is looking a little bit to what the Trump tariffs are going to do. We signed a record of EUR 56 million new and renewed leases. And meanwhile, we signed really a lot. We have roughly EUR 25 million of lease agreements at the moment in final contract negotiations. So we don't see a slowdown.

On the contrary, there is a lot of Asian companies which want to come to Europe. It has caused a shift, and we are trying to profit from that very much so. On the occupier segment, Jones Lang says, yes, there is resilient and emerging manufacturing industries. We signed last year over -- almost 70% of our leases were manufacturing. This year, it's a bit different. But it's no thing to go on because when you take a snapshot every time, it's going to be different. We just signed the last month 3 or 4 new lease agreements, which are all manufacturing.

In the first half year, it was a bit more logistics. But what is a very happy thing is that we see the e-commerce coming back, and it's already 18% of our leases signed in the first half year, which is going to be a big boost for our growth in the future if they start taking up space again. And this -- for many years or at least 3 years, we didn't have any e-commerce-related demand. The vacancy rate continues to climb, it says, and there are some markets with higher level of speculative completions over the past 2 years and/or higher vacancies. But I've looked it up myself.

So the markets where we are in, in Prague, we have 0% vacancy. In Milan, we have 0% vacancy. In Bratislava, we are under 1% of vacancy. And in Budapest, which is a -- Bucharest 0% vacancy, Madrid 0% vacancy. And in Budapest, we have 3,000 square meters available on a total of 122,000 square meters under construction or completed. So I think that is, in our case, very reassuring. And we have everywhere in all those markets also demand. The supply pipeline stabilizes on lower levels. There is less speculative construction.

You have also seen that our pipeline, our pre-lets have gone up significantly. And our KPI for our people is what we have longer than 6 months under construction needs to be more than 80% pre-let, which actually is the case. So we feel quite confident from our side to start up more square meters in the second half of the year. That's -- and we have signed quite some significant build-to-suits meanwhile also, which are also going to fuel our pipeline going forward in the next 6 months.

The yields look stable. They -- we will see what happens, but it looks like the last valuation was fairly stable. VGP reports also in this first half 2025, a complete flat yields in its portfolio, so that's a bit our comparison to the market. And then we have our operational performance in the first half of 2025. First, I'll go through the leasing activities. The 2 buildings you are seeing is our new plant or new park in Valsamoggia right next to Bologna, which is completely let, handed over, and it's all industrial activity, which is inside.

We have a record start in renewed and committed rental income, including the JVs at 100%. The group has now 631 tenant contracts or had at the 31st of June of 631 tenant contracts with 443 tenants. So many tenants have multiple facilities inside of our -- inside of the countries where we are active in. The committed annualized leases of the 30 June were EUR 441.3 million. They're meanwhile already well above EUR 450 million and growing every day. The occupancy rate was 98% for the completed portfolio. That means that is mostly 3 buildings in the Czech Republic for which we have for all 3 of them now final negotiations on the leases.

So it's looking that we are going to be able to improve that a lot by the year-end. And my brother likes to make bridges, as you know. So there is a bridge. The committed annualized leases we started with EUR 412.6 million. We signed EUR 26.3 million new leases. We indexed our existing portfolio with EUR 6.2 million. We did some amendments, some extra offices, which were required or some extra space, which was required from our existing tenants. EUR 4.9 million were terminations. And so we are today at EUR 441.3 million.

What is also reassuring is that what became vacant, we were able to lease out for approximately 12% higher than what was at lease before, so we still think that our portfolio is not over-rented at all. As I said, this is just a picture and a certain moment because it changes every week. When we sign a big one, it is again differently. But in the first half year, almost 70% of what we signed was logistic companies or logistics operations from retailers like Studenac is, for example, the largest retailer in Croatia, which we have signed a lease agreement with, which is under construction in Split.

FDS is a Chinese e-commerce company. They've taken up a lot of space in Magdeburg. We have breweries too at the moment. We have Movianto, which is really pharmaceutical, which is going to our plant in Heidelberg. And then Rhenus Logistics has followed us in many Western European countries, and now they're also in France. So that's a little bit what has been signed in the first half year. There are many more, but this is a flavor of what we have signed. Parma is really production in Calcio in Italy.

The e-commerce takes up a significant part in the first half of 2025 leasing activity. And we see a lot of demand still on the market coming from e-commerce from all over the place. The known names are very active, but there are also many new players in the market. And you can see that 18% in the first half year was already e-commerce, which is really -- we're very happy that we can say that. And then most of those tenants invest a lot in our buildings, really significant investments, whether it is production, the light industrial activity or it is e-commerce.

It's also very automated and very much production-heavy. So it also means that they are committing to very long-term lease agreements and the weighted average lease term is now standing at 8 years, including 100% of our joint ventures. In our own portfolio, it's more like almost 10 years. And in the joint JV portfolio, it's 7.2 years. And you can see it's a mix of a lot of blue-chip companies. So the risk is very spread. Actually, the 10 biggest tenants are only 31% of our committed leases. And also, they are spread over 29 different lease agreements, so there is no concentration risk at all in our portfolio, I would say.

This is an interesting one. It says a little bit about the possibilities of VGP in the future. We started the year or we ended last year with EUR 350 million of cash-generative rental income, meaning buildings which already generate rental income, which have been handed over to the tenant and is actually paying rent, EUR 350 million on an annualized basis or EUR 214 million at share. That increased during the first half of 2025 with 7% or EUR 26 million to EUR 376 million or EUR 238 million at share. So that's income generating.

And then the signed leases, which are going to become cash generative in the next period are EUR 65.3 million. That's an increase of 17% up to EUR 441.3 million or EUR 298.1 million at share. And then we have the potential insights on our existing pipeline -- on our existing development pipeline. And I remind you that all the land that we buy, which is in our books is also a permit for its intended purpose. We don't buy land without a permit, at least the basic one, the zoning permit, and that's another 53% capacity of our total rental income, which we can still develop over the years to come. That goes to EUR 676.9 million or EUR 528.3 million at share.

And then if we look at what we have now as ERV on the committed land, land, which we have already signed exclusivity on or a binding agreement that we will buy it at the moment when we receive the permit, that's another growth possibility of 7% to EUR 727 million or EUR 578.4 million share. Now these numbers are all plus/minus because we are constantly transferring inside of the JVs. So the share -- and the total will probably change a little bit. But that is the potential of development, which we still have today in the pipeline.

If you look at the delivery side, and again, the building of Mobis Hyundai in Pamplona, which we are, you can tell, very proud. We have delivered 11 buildings, 264,000 square meter, actually the same as last year in the first half year, EUR 18 million rental income by 19 new contracts. It was 96% -- more than 96% let. As I said, the last unit, which is vacant is in Luxembourg, should be leased before the year-end. They are 100% rated excellent or better and 49% of the deliveries was actually certified BREEAM Outstanding. As I told you, in Italy, we have the first building BREEAM outstanding in all asset classes just achieved this week.

You can see it's very well spread over all the geographies. It's also for the first time in the history of VGP this year that we will have buildings under construction in all the 18 countries where we are active in, in every single one of them. In the deliveries, in the first half of 2025, they were tending a little bit towards logistics. That's -- you can always have different views on it. But in square meters, it was logistics, 60%; and light industrial, 40%. But if you look at the names, which we have delivered to, then you see SIPLA, it's in Italy, VAT on which we are very proud because it's very comparable to the high-tech industry.

It's -- they make vacuum walls for the chip industry, and it's a lot of square meters of clean rooms, plus 1,000. It's really a fantastic building in Arad. Hyundai Mobis, it's the battery plant production. But then, of course, you have also Ahold Delhaize, which we have as a customer on many places. You have Toyota Material Handling, which is actually a showroom in Vienna and then you have some other distributors. So that's been the delivery side. And then I'll have some examples.

The first one is in Barcelona, Martorell, which we leased out to GDaisa, which is a production site. You have 60 [ Cuckoo ] robot inside, which are doing welding processes and everything possible. Barcelona is 100% let at the moment. You have Valsamoggia too, where we have 35,000 square meter and the main tenant is CEI, but we also have SIPLA, Dino Corsini and PROSGM, which are all productions. They're all producing over there. It's right next to Bologna. We also delivered our parking -- in our park in Brasov, the largest building which we have there to Inter Cars, which is very impressive, I have to say.

I visited the building not so long time ago. And the customer, a Polish stock exchange quoted car dealer, car parts dealer, has invested an impressive amount of money in the automization in that building. So I also guess they're going to stay for a very long time. Currently, we are expanding our park in Brasov. We have signed the agreements with the neighboring land plots, and we're going to be able to extend it. We delivered our park in Luxembourg, where we have this one little last unit free in the building in front, which you see, which is only 3,500 square meters, 4,000 square meters, and the rest is all fully let.

And it's really very well located immediately adjacent to the highway towards -- from Vienna to Graz and it's in the south of Vienna, a really nice location. We have the building in Pamplona, which I talked already too much about. And then we have the building in Arad for VAT. On one of our nicest realizations, which we've done. I'm very proud of our team. As you know, we split up all of our building in its components, and then we coordinate this ourselves and make sure that everything is well placed. This is really an outstanding building with 12,000 square meter of -- or 18,000 square meters of clean rooms inside, and it's really very impressive.

Also, the customer was very, very happy with the building when I saw it. It's vacuum walls for the chip industry, very long time lease. We expanded the building for Continental in Bratislava, and our park in Bratislava is now also almost fully let. We are expanding the last unit with the current tenant. We just need to sign it, and then it's fully let. And then we have some developments, which are currently undergoing. The plot you are seeing on the screen is our development in Vejle, Denmark. We have been able to buy some really very iconical land plots in Denmark over the last past months, the boys in Denmark, which is a relative new team, they have a lot to do. And these 2 buildings are pre-let mostly for the biggest part.

The portfolio under construction represents EUR 72.8 million of new leases as a possibility. As per today, it's 36 buildings are under construction. We started up quite some after the 30th of June already, representing 846,000 at the 30th of June. The portfolio under construction is 73%. But if we include the pre-lets on the development land, the ratio amounts to 76%. And the assets under construction, which our internal KPI longer than 6 months are more than 80% pre-let now. And we have initiated 325,000 square meters in the first half. And based on the current pre-let pipeline and the contracts under final negotiations, we expect to start up more construction in the second half than we did during the first half of 2025.

It's very well spread across all of the countries. As I said, we have now constructions ongoing in every country where we are active in. We just started also back in the Netherlands, where we pre-leased 2 buildings now. So you will see right away, I'll tell you a little bit more. You see our park in Bernau at the right side and our park in Lucko, which is Zagreb, Croatia, which is also a pre-let completely for P3M. This is our park in Split, which we have pre-let completely to Studenac and Atlantic Group, a food processor. Studenac being the largest retailer in the country.

We have our park in Leipzig Flughafen, where the first building of 20,000 square meters is already completely leased out. And the second building we started speculatively, and we are in final negotiations on the first half of the building. We have started our park in Brasov. We have started the last unit for Ursus Breweries, which is just under construction now. That's the last building, which we can do in the current park. And as I said, we're going to expand it.

And then we started our building in Rüsselsheim. Rüsselsheim, we bought 70 hectares, a little bit more than 70 hectares 2 years ago with the sale and leaseback with Stellantis Group with Opel. We managed to get very quickly, and I want to thank the authorities for being so cooperative, a first building permit for the new headquarters of Stellantis in Germany, which is a 22,000 square meter office building, plus a very large R&D center, which is virtually a standardized building, but very much adapted on the inside. It's a 20-year lease agreement with a guarantee -- a very solid guarantee for the whole lease.

And we're very excited to be able to do this. It unlocks also the rest. This is only 3% or 4% of the total land plot, which we own this building in Rüsselsheim, and we are very much looking forward to develop the rest of the site, which is going to be relatively imminent. We have really -- we are in very far advanced negotiations with the city, and we also have a lot of interested parties to come and be there. In Bernau, Berlin, we have 2 buildings under construction. We just signed this morning a lease agreement for 27,000 square meter with B&O.

And so that's a really nice one, and the right building is completely leased already. to BerVaTek and [ 4Wheels ]. So that's a park under construction. Then we have finally -- not finally, but our park in Nijmegen. In Nijmegen, we have bought the land years ago for a normal price. Meanwhile, the land around us has been transacted for EUR 350 per square meter, more than the double that we bought it for. So the land valuation have gone up, but it's still sitting in our books at the original value because we don't revalue land.

We only revalue it at the moment when we really unlock it and start developing it and start construction on it and then the valuation grows as we lease it out, et cetera. Now we have 2 pre-lets in Nijmegen that have been started up. One is to Dustin Group. It's a very bespoke building, not a very bespoke building. It's a standard building, but it's got a very nice facade in glass right next to the highway, which has already started construction upon, which needs to be delivered next year. And we have also started the building E, which is leased to Protempo, also at 20,000 square meter, and we have still a lot, which we can construct in Nijmegen at this land which we bought historically very well.

And we are in very far negotiations with some very big tenants to be able to develop also the rest. It looks like we've been lucky to sit out this window in the Netherlands and have not been tempted to buy land too expensively, but now we can be very competitive while still realizing really very nice margins also in the Netherlands. And I wish my Dutch team a lot of success. They seem to be extra motivated now.

We are in Italy. In Italy, we are growing a lot lately. We've expanded our team a lot. We just bought this land plot in Parma right next to our GLS building, and we're also buying the land plot behind it. You will see it afterwards in the land bank. We already signed a lease for this building. It's under construction now in Parma, the 14,000 square meters. And then -- but we also have signed a very nice pre-let last week also in the Reggio Emilia region, where we're going to construct a 45,000 square meter building coming on, and there is a lot of land acquisition going on, which leads me to the land bank.

And then if you look at the land bank, and I'm very pleased this year, we've been very, very busy in trying to achieve -- because now we can -- we have been able to secure a land bank, which really has embedded in itself a lot of value for the future. And that's always the main driver of our future growth. It's how well you buy the land bank and how strategic well located it is and what demand you're going to generate, and it's all a question of all these vectors which need to come together. We are currently finishing some really iconical acquisitions. Some of them have been announced already by the sellers like Odense in Denmark or Køge in Denmark.

But some of them we can't announce yet, but we signed exclusivity, and we will -- I'm very looking forward to announce them in the coming months. There are really some goodies inside. When if you look at the land bank, so we started in December -- we ended in December last year with 7.4 million square meters. We acquired 633,000 this year. We deployed more, 670,000 square meters. So the owned land bank in the end of June was 7,342,000 square meters. But we committed 2.3 million square meters in June '25, which brings the owned and committed in June '25 to 9.7 million square meters on which we can develop more than 4 million square meters in the future.

And we have under option or precontract another 1.9 million square meters, which first -- which is now in the phase of due diligence and where we don't have a final binding agreement on, but we think that most of them will become committed by the year-end. I'll go quickly through some of the things. We did our first acquisition in the U.K. We bought a very nice land plot in the Midlands in the so-called Golden Triangle in the U.K. And we plan -- it's -- we can develop 77,000 square meters. We just contracted the general contractor for the first 2 buildings. And we plan a lot more acquisitions in the U.K. We are currently working on 2 very iconical ones also there.

We have bought quite some land in Portugal for the first time in long years, and this is probably the nicest one, which we have been able to do so far because of its site. The numbers which you see in there was only the original auction plot, which we bought, but we have been able to expand the land to over 230,000 square meters now in Vila Nova de Gaia, really in Porto, and it's a very flat land plot. We bought it very well. and there is a lot of demand in Porto, so we hope that we can be -- we're going to be able to lease very well. Actually, everything which we have developed in Portugal so far in the 2 locations, it's everything fully let. We also have Loures 2, an expansion of our DPD and DHL sites. We have signed the PSPA, which is a lot bigger. And we also signed Famalicão with a pre-let. So there is a lot ongoing in Portugal.

In Greve, which is a bit the same situation, we first bought a small land plot, which is a 57,000 square meter. Meanwhile, we have also bought some other 2 fantastic plots around it. And nowadays, we can develop 110,000 square meters. Greve is actually right next to Copenhagen at the exit of the highway, as you can see on this render. The location is really stunning, and there is a lot of demand for Copenhagen. So we're very much looking forward to be able to dislock the value of this land plot going forward.

We also bought Odense and Køge, as I said already, and we have already a park in Vejle. In Magdeburg, we just expanded because our park is fully let. It's the biggest park we have, I think, in Germany. We just expanded with -- we bought an existing building with some land, which we can develop that just acquired. In Parma, as I already said, we acquired a land plot in the extension of the building, which you see, which is roughly the same size. And then we just signed [ Cavasa ] in the Reggio Emilia region, which is another 200,000 square meters. We are going to do some other pre-lets, which we will announce certainly soon.

And before I give the word to Martijn about the renewable energy, I want to give a quote of my father who is a poet. And he said yesterday when we were sitting together, every economy needs cheap energy, who denies that rule is just a fool. So it's now up to Martijn to explain. Thank you.

Thank you very much, Jan. On the renewable energy business, here you see actually for the first time, we are showing now the renewable energy business not constituting just of the photovoltaic projects and pipeline, but we've also included the BESS, the battery energy storage systems. And you see that the combined 2 segments result in a total project pipeline, which is 30% higher compared to a year ago. If you look at the energy production, which is driven by the renewable energy photovoltaic panels, we're up 50% year-over-year to 70 gigawatt hours. That is driven by the production capacity at the beginning of the year, which has also grown 50%.

If you take the December numbers from this year compared to December '23, you see that was up 50%. So production has kept up in line with the additional capacity that we were able to install. The revenues have gone up a little bit further. You see that the gross renewable energy income generated was EUR 6.5 million, so that has gone up with more than 70%, which is a result of a better revenue mix where we have less energy going directly into the grid, but also more being consumed in our buildings. And at the same time, also the margin has actually improved a little bit where last year, we saw the start-up of our full, what we call [indiscernible] in Germany.

And now we're back up at a margin of above 70% for the net revenues generated EUR 4.7 million. Total investments have amounted to EUR 129 million. And there's an additional projects, which we've identified in the battery energy storage system of roughly EUR 20 million, which we are currently assessing, which you see here as part of the pipeline and hope to be able to move further to the left of the waterfall as we move along in the coming 6 to 12 months. That is it on renewable energy.

I would just add -- we have removed the section on ESG for the sake of also keeping the presentation a little bit shorter. The only noteworthy point that I would like to highlight is that at the first half of the year, we were rated A by CDP. So that was the first rating to have received this year and an A rating from the Carbon Disclosure Project is, among the 2% highest of the companies that they rate globally, and that's more than 60% of global market cap. So we were quite pleased with that outcome on the CDP and also on their suppliers engagement, we received the highest score from CDP again. Second half of the year, we expect to receive more of the other ratings. And Jan already alluded to the BREEAM outstanding that we're incredibly pleased of as well. With that, no further ado, move to the joint ventures.

Thank you, Martijn. Indeed, I have an update on the joint ventures. The picture that you see is, again, our VGP Park in Munich. It's a bit of an older picture on the right, on the bottom, there is, in fact, already a building. But as it's such -- we are proud of it. So I'm happy to show that picture once more. In fact, I've shown this graph already in the previous presentations that we have made. This year, we have not done any closing yet with the joint ventures other than some settlements on which I will talk about a little bit more in the financial section. Nonetheless, we are targeting a material closing in H2 '25 with Areim.

In fact, to give some perspective or some numbers on it, I think we can do within the next 12 months from EUR 500 million to EUR 1 billion sizing of transaction. And we hope to do a material part or a large part of that in the H2 '25, but it depends a bit on completions of certain assets, et cetera. It's something that we are closely now in discussion with our joint venture partners. Otherwise, the joint venture landscape as it is at June and its performance in the first half of '25 is excellent. The EPRA earnings, as you can see, they went up. This is all at share. So we have a 50% stake in the joint venture. So the numbers you see is all at share. So the EPRA earnings, they went up from EUR 27 million to EUR 30.6 million.

The cost ratio went down. The valuations, as Jan said before, they are very stable with a net initial yield basically flat. Net tangible assets that went up from EUR 1.441 billion to EUR 1.497 billion. Also the vacancy went down from 1.8% to 1.2% and also the LTV went down from 31.5% to 30.2%. So there is about EUR 5.6 billion of completed assets, gross asset value inside of these joint ventures that we have together with Allianz, that is Rheingold, Aurora and Ymir. Deka, that's Red. And Saga, which is with Areim. And you can see that the largest part of the asset value is still Germany with 63%, followed by the Czech Republic historically at 14% and then some other countries. Just walking you through also the financial performance of H1. The part that you see here is the Brasov Park with in the back. The large building is the Inter Cars building, which was referred to before.

So basic summary on the P&L. Again, I have a P&L and balance sheet, cash flow and some other analysis for you prepared. Starting with the P&L. The good news, of course, is that we have a significant increase of our net profit from EUR 141.5 million to EUR 180.5 million also on gross profit before tax, 35% up to EUR 209 million. And the result, in fact, is a combination of a lot of factors, but all of them have a positive evolution, whether it's our development, whether it's our recurring income, whether it's refinancing or all aspects have brought a positive contribution to the result.

So maybe starting on top with the net rental and renewable energy income that you will see we have an increase of 24.3%, which is composed obviously out of the -- out of 2 elements. One is our rental income, which we have on our own balance sheet. Just to recap their ones, Jan mentioned before that we have EUR 441 million of contracted annualized rental agreements across the group. EUR 150 million of those are still on our own balance sheet and EUR 95 million of those are active. So we had EUR 39 million of gross rental income, which was a 16% or a 21% increase versus the first half of this year. And of course, it will ramp up further to the EUR 150 million, but we intend to dispose a major part again into joint ventures in H2 and in H1 next year.

On the other hand, we have the renewable energy income where Martijn just actually basically gave the whole summary on it. So we had a EUR 6.5 million gross revenue, EUR 4.7 million net. We produced more, but we also had some positive revenue effects from direct contracts through tenants, amongst others. Now the net rental renewable energy amounts now to EUR 40.9 million. If you would add the share that we have in the joint ventures on top of that, then in fact, it increases from EUR 89.3 million to EUR 103.9 million. So that's the rental income that VGP economically owns, and that was also an increase of 16.4%, and that's fully driven organically. We haven't acquired any rental income. It has been developed. It has been delivered. It has been indexed. It has been replaced with higher rental income. All of those effects play in that 16.4%.

Now in the next line in our P&L is the joint venture management fee income that went up with 2.6% to EUR 16.1 million. Just as a quick reminder, it's composed out of 2 elements. One is a recurring fee, which is basically related to the size of the joint ventures as the size of the joint venture has grown, especially in the last year with a lot of transactions that have been done. Our recurring fees that we charge to those joint ventures for managing them because we manage them entirely, went up from EUR 12.7 million to EUR 14.4 million, and that's recurring. So we expect to further increase also to the year-end and then by doing additional transactions, again, to increase that recurring fee.

On the other hand, there is some nonrecurring fees. Sometimes there are developments done on assets in the JVs for which we charge. And that, in fact, was a bit lower this year. There were less developments ongoing in the JVs that was EUR 1.3 million lower, so it reduced to EUR 1.7 million. But the main and key element here, obviously, is the recurring income. Then the next line, which is always a very defining line in our result, obviously, is the net valuation gains on investment properties, which went up at 42.8% all the way to EUR 141.5 million.

Here, basically, there are 2 elements in play. One is an unrealized revaluation of EUR 121 million and a realized gain of EUR 20 million. Now the unrealized gain of EUR 121.6 million, which significantly increased is fully related or by majority related to our ongoing developments. As at 30th of June, we had 845,000 square meters under construction, and we started up 325,000 square meters, as Jan said before, and on those 2 together, so what we have initiated and that's by majority, we have about EUR 105 million of revaluation gains. And then EUR 15 million is a revaluation on an existing completed portfolio, knowing that the total completed assets on our own balance sheet amount to EUR 1.2 million -- EUR 1 billion, sorry, EUR 1.2 billion.

So it's, in fact, as you could also see on the market slides of Jones Lang before and as Jan has said, we had a relatively flat or a very flat valuation effect on the portfolio. On the other hand, we have a strong contribution from our development angle in the business. Our own portfolio on the balance sheet is -- has an average weighted yield of 7.3%, which was 7.22% as at the 31st of December '24. The realized gains, that's the second element of the net valuation gains is EUR 19.9 million. We did not transfer any assets into joint ventures, but what we did with joint ventures in the first half was some settlements to -- relating to prior closings.

We usually sell or we always sell shares into the joint ventures on provisional numbers. And then after some time, 3, 6 months, 1 year, we audit this and make up the final numbers, and it turns out that our profit was larger due to the fact there were some additions with tenants. So there was more in the cash than in the company was previously provisioned. And hence, we received or we booked an additional gain on that of about EUR 20 million. Next up is the admin expenses. So the admin expenses, they increased with EUR 2.6 million.

We -- the group has grown in FTEs. So in June '24, we had 372 FTEs. Now we have at June '25, 412, so roughly 40 FTEs more. It's also related to the growth of the business and we have more completed assets, more facility management, but also the new countries that have been ramping up, such as the U.K., France and Denmark, which have to hit the ground running. And the next line in the P&L is the share of results of joint ventures. Again, joint ventures had an excellent performance. We see that also in the contribution of the net result. So it went up from EUR 33.7 million to EUR 43.8 million. That's our 50% share in the net result of the JVs.

If you look at the underlying factors or contributors, you can see that well on the graph below, where I make the bridge between the proportional net result of the JVs from June '24 or H1 '24 to H1 '25, you can see the net rental income that went up with EUR 9 million. Obviously, we transferred quite some rental income in '24, but nonetheless, there was also an indexation effect of EUR 2.5 million at share. The valuation was positive, but there was -- it's EUR 9 million more. It's EUR 18 million at share. But again, on the EUR 5.6 billion portfolio in the joint ventures, the valuation was relatively flat, nonetheless positively contributing.

Admin expenses were roughly in line. Financial result is a bit -- we have a bit more interest expense, but that is, of course, that we did quite some sizable transactions last year, which were partly financed by debt in '24 also in second half of last year. So that increases a bit the net financial result, albeit that the LTV went down to 30.5%. And then in taxes, there is EUR 2 million more, but it's fully related to the deferred tax movement on the revaluations. That brings us actually to an operating result of EUR 211.8 million, which is 40% up. It was EUR 151.7 million in last year.

The net financial result, it went down from EUR 2.9 million to EUR 3.1 million. The effects that are in play here, and I will say a little bit more about it also on the next slides, but we raised the new bond and we repaid EUR 200 million -- or we repurchased EUR 200 million of outstanding bonds, and those EUR 200 million of bonds were bought for EUR 195 million. I mean the EUR 5.2 million of profit on that. On the other hand, we have the interest due to the fact that the interest rates with the ECB are going down, which we all are very happy about. But there is a counter effect. Of course, we have quite some cash. We are cash rich and the interest that we get on the cash on hand dropped with EUR 3 million versus last year.

We have a little bit less interest from JV loans. That is because we did some repayments and also Moerdijk was sold in the first half of last year, which was a big contributor there. And then our interest expense as we have -- we carry more debt than what we had in -- at the end of June or in the first half of last year, we have also EUR 2.9 million more interest expense. Also, our average interest expense went up to 2.7%, but I will show a separate slide on that. Other financial expenses are mainly some exchange rates and costs related to the issuance of bonds.

That brings us to a result before taxes of EUR 208.6 million, up 35%. The taxes are -- have also increased. But in fact, our tax expense has gone down at EUR 1.6 million. It's mainly a deferred tax recognition due to the unrealized gains on the revaluations, as I mentioned before. Earnings per share, obviously also went up with 27.5%. They are now at EUR 6.6. Splitting up the P&L in the 3 segments, you have the investment, you have the development, and the renewable energy. Then the investment basically shows the EBITDA of EUR 118.7 million of all completed assets, including our share in the EBITDA of the joint ventures, excluding any revaluation effect.

So this is purely the cash EBITDA that comes out of it. There, we see a solid increase. We expect to see a further increase in the future given we are constantly delivering new assets and building up our recurring rental income. This total segment, if you look at on the balance sheet total represents EUR 3.1 billion of our total assets. On the development side, we have also a nice increase on the EBITDA. We had, as I explained before, a solid contribution from our assets under construction and the assets that were initiated construction in the first half of this year. There was a total CapEx spend of EUR 257 million, and this represents a total asset base of EUR 1.4 billion. And then we have the renewable energy, where we see also an increase in EBITDA and a renewable energy income of EUR 6.5 million.

Just walking once quickly through the balance sheet. On the total balance sheet, we are proud that we breached the EUR 5 billion marker on total assets and total liabilities, including the -- what is booked under held-for-sale, the EUR 240 million there. We have a completed portfolio on our own balance sheet of EUR 1.2 billion, which is up from EUR 879 million in '24. And then under construction is up with EUR 657 million or at EUR 657 million and development land, as Jan also explained before, EUR 650 million. There was a total CapEx of EUR 257 million, and it's all valued at a weighted average yield of 7.3%.

Property, plant and equipment is EUR 127.1 million. It increased with roughly EUR 5 million. This is by majority related to the renewable energy installations and battery installations. It's not only PV installations anymore. They represent EUR 97 million in completed installations and EUR 20.4 million in installations under construction out of a total commitment of almost EUR 130 million. Our investments in joint ventures, they went up, but basically, it is our share in the result that makes the most of the movement, and we haven't done any transaction with the JVs, which would increase our equity stake inside of the joint ventures in the first half.

This is, of course, expected to change in the second half. The same is a bit valid for the other noncurrent receivables. And then our cash position is at EUR 423.6 million. Knowing that, of course, we have EUR 5 million in several multiyear unsecured revolving -- sorry, EUR 500 million in several multiyear unsecured revolving credit facilities, which are undrawn and available and have all been prolonged either in H2, H1 or just this week even one of EUR 75 million, which expired at end of '26 has also been prolonged with 5 years as of 31st of December '26. So it's quite good.

On the liability side, so our equity went up, very easy movement. We had the result of EUR 180.5 million and a dividend paid out of EUR 90 million in the first half of this year. It's an increase of 3.8% since December or 10.5% year-over-year. And then on the debt side, I already hinted towards it on the previous slides, but we raised a new bond of EUR 576 million. It was, in fact, EUR 500 million plus a top-up by the EBRD of EUR 76 million at the same conditions. With that, simultaneously, we did execute an active liquidity management exercise on which we paid back EUR 200 million on outstanding bonds.

I'll show some graph on it in the next page to make it a bit more visual, on which then we, in the end, repaid or we paid them for EUR 195 million. We also paid back a bond that matured in March of EUR 80 million. And there is another bond that has now been classified as current because it is payable in March '26, and that is EUR 190 million. The average cost of debt is 2.7%, slightly up from December '24, and we still have the EUR 500 million availability. In terms of the ratios on our balance sheet, we have a gearing ratio of 37.9%, which is well below any covenant that we have on the bonds or any of our debts.

And the proportional LTV, so taking into account also our share in the assets and net debt position of the joint ventures, we are at 50%. Also happy to announce that we have a new rating from Standard & Poor's just obtained. It's like Fitch, it's a BBB- with stable outlook investment grade. And if we wrap up the financial numbers once on a proportional basis, I have already hinted somewhat to it, but this is basically the proportional P&L where you see in the first column, the own P&L and then you see the lion's share of net profit from JVs and associates is 0.

It's EUR 43.8 million, which is then in the second column, the JV at share shown on every line individually so that you can see in the third column, proportional income statement, what the group economically owns today with 50% of the JVs included. So then our net rental renewable energy income of EUR 40.9 million increases to EUR 108.7 million in this respect. So it's a 19% increase. We had a total valuation gain on the portfolio of EUR 159 million, of which EUR 141 million in our own balance sheet. The operating result increases to EUR 252 million.

What I also would like to point out here is even if you were to take out fully the revaluation effect, our operational result increased with 21%. And then if you look at it on the investment properties, it's the 2 lines on the bottom. So we have EUR 2.5 billion on our own balance sheet. There is EUR 2.9 billion, almost EUR 3 billion that we take in at share from the joint venture. So we have EUR 5.5 billion worth of investment property economically. That is up from EUR 5 billion or an increase of 8.3%. And similarly, you can then calculate also the proportional LTV, which is 50%, as I mentioned before.

The cash flow statement, it's basically a summary, I think, or a conclusion of what I've been saying before. I've sorted them starting with the liquidity position from EUR 492 million at year-end and ending them EUR 423 million at end of June. I've sorted them from the big plus to the small minuses. So -- but first off -- first and foremost, we raised EUR 576 million, which brought us net cash after costs and other deductions, EUR 565 million. You can see in the cash flow, net cash generating from operating activities, EUR 14.5 million. That, in fact, contains an operating cash flow of EUR 31 million, but then you have a change in working capital of EUR 2.9 million and interest payable or interest paid of EUR 43 million and a tax paid of EUR 2.8 million that brings it down to an operating -- or a net cash generated from operating activities of EUR 14.5 million.

We had -- I will stick maybe to the graph and follow that one, JV distributions of EUR 7.6 million, so we expect about EUR 80 million of distributions from JVs in '25, of which we already received EUR 7.6 million in the first half of this year through interest payments on shareholder loans in the Deka and Areim joint venture. We had some proceeds from disposals, EUR 1.7 million based on those settlements with the JVs I mentioned before. Then we paid back EUR 275 million of loans. That's the EUR 80 million bond plus the EUR 200 million outstanding bonds, which were repurchased for EUR 195 million, so EUR 195 million plus EUR 80 million is EUR 275 million.

We had a CapEx effectively spent of EUR 241 million. We paid out a dividend of EUR 90 million. We paid interest of EUR 43 million, as I mentioned before. And we also had loans to JVs for ongoing CapEx there, which -- on assets which are economically owned by us of EUR 22 million. That brings it to EUR 423.6 million of cash or a total cash flow of the period of EUR 68.9 million.

Maybe a word on the average cost of debt. So it went up from 2.2% to 2.7%. The new bond that was raised EUR 576 million was at a coupon of 4.25%, and it matures in January 31. So we have a total debt position of EUR 2.3 billion on the balance sheet with cash EUR 424 million and unutilized credit facilities. And there is an expiry of EUR 190 million in '26. Maybe just to make it a bit visual, this was the financial profile at year-end '24, where you could see in '25, the EUR 80 million was what we needed to pay back, and we had a 3.7 years average debt maturity that changed then into 4.1 years as of June '25. So the EUR 80 million has been paid back.

You can see in 2031, there is now the new bond of EUR 576 million included. And then, we topped off the EUR 500 million bond and EUR 600 million -- EUR 500 million bond in '27 and EUR 600 million bond in '29 with, respectively, EUR 180 million on the '27 bond and EUR 20 million on the '29 bond. And I think this was probably my last slide. Thank you. I'll give back to Jan.

Yes. So to summarize it and to give you a little bit of outlook on the second half of the year, I want to stress once more that we have a very solid year so far in terms of land acquisitions. We will be able to announce in the foreseeable future some truly iconic new land plots in most of the -- or in all of the countries we're active in. Combined with that, we have an even more solid performance on the letting side with more than EUR 50 million signed and renewed in the first half and the very filled order book in final negotiations, all over our market on new leases, which some of them have been already signed and some are really in the final stretch. So we hope to be able to sign them before the end of September, even all of them.

Then, we -- as a result of that, we expect to start up more square meters than we did in the first half year. That's based on the lease evolution, and we will manage that in function of our occupancy rates going forward. As you know, we have a KPI over 6 months under construction. It should be more than 80% for our people. We feel very confident that we have our construction prices very well under control and that we can realize on the land, which we bought at economic fair terms. We can realize a really nice extra value.

We have ample liquidity today and plan to transfer quite a bit of assets between EUR 0.5 billion and EUR 1 billion in the next 12 months to our JVs. And that's a bit -- the timing of that is only dependent on the pace at which we can develop some of our parks out and at the time of maturity when they are ready to transfer, but we're very confident on that.

And finally, I also want to say a word of thanks. We are going to launch the second part of our marketing campaign, which many of you will have seen in September, where our customers make a testimonial to their cooperation with us. And I want to express my sincere gratitude for the enthusiasm and engagement, which we have been working together with them over all these years. And we're very grateful that they agreed to be -- to make a testimonial to us. When you travel through the airports, look around, you will see we'll be everywhere.

Thank you. That's it from my side, and I think it's time for questions and answers.

Yes, operator, we can open the line for questions.

[Operator Instructions] The next question comes from Suraj Goyal from Green Street.

You mentioned that your pipeline is strong, you expect more construction in the second half of the year. We also picked up quite a few attractive land plots. How are the construction costs trending year-to-date? It'd be good to get some color from market to market. I appreciate you see Europe as one market, but if you could dig in across the various markets, that would be quite helpful.

I guess that's a question for me because I'm the CEO. And I'm involved with that every day. We see everywhere we -- over the past years, the construction price has been consistently coming down since the very high peak where it exploded in 2022 and where I stood completely on the break since last year, a testimonial to that is also that we are now constructing in literally every market where we are active in. We have seen the construction prices coming down.

They are at the bottom, I would say, today, everywhere. We are back to pre-pandemic construction prices. We see still a lot of construction companies in trouble in some of the markets, and there is still some room for improvement maybe, but I'm fairly sure that we are bottoming out. We have everywhere around the same level, of course. It's a bit dependent on the cost of the local people workforce. But material wise, we tend to be able to do very big purchases all over Europe, and we combine really our volumes.

We split up our buildings, and we combine volumes, and we buy directly at the producers of those volumes. So we get really very good pricing. If you look at it, I would say that the construction price is everywhere in line with our margin target. So we are everywhere able at today to achieve those targets that we want. So of course, it will be a lot cheaper to construct or cheaper to construct in a country like Romania, but then we have a higher yield, but the exit yield is also higher. So the value is different. So we aim for a higher yield versus Germany. But of course, we have a higher construction price, but that -- the exit yield is also lower. So it looks like -- everywhere, we're under budget at the moment. So we are really performing very well. We have no accidents.

I think if you look at the numbers, you can see it. And I -- there is no point in going through every country separately because it's everywhere the same. It's really everywhere we have the construction price really very well under control. That's the best I can answer.

The next question comes from Wim Lewi from KBCS.

I've got a question on the cash recycling. So you mentioned EUR 0.5 billion to EUR 1 billion. You also mentioned depending on some particular completions, and you also mentioned Areim. My question is really the size. So the final size, does that depend on finding other JV partners? If so, can you say anything about the type of those partners? Would that be a similar partner to what you already have like Allianz, Areim or Deka? What is really the negotiation about if this takes longer? Because I think you've been talking about this for a while.

And then maybe lastly on the JVs, as you mentioned your cost of debt goes up. But obviously, you use part of that debt to finance the JVs. Can you also then increase your interest rates that you charge these JVs so that, that kind of balances out a bit?

The closings, we are planning on a logical evolution of the commitments, which we have made with Areim over a programmatical joint venture, which we are rolling out at the moment. So that is what we have in the short term that we are working on. That's what we are going to transact today. In the second half, there is a very large transaction plan and in the first half of 2026, there's also a very large transaction plan.

At the same time, we have several working teams, which we are in advanced discussions with other people to set up a new joint venture, which is normally completely in line with what we have already achieved before, where we're trying to set up the same things and which we can't disclose yet today because we are just in the middle of negotiations and have not reached principal agreement yet.

On the rental level, if the debt of -- the level of debt goes up towards -- of cost of debt goes up, we are completely aligned with our other investment partners in the JVs. So we have a common interest on the interest level, which we are charging through. And the ones which we are financing where we still have the economic value of the property, and it's -- although it's already sitting in a JV, but we still have the economic value of the asset that we are free to decide whatever we want.

On the interest rate, and it's left pocket, right pocket. And the rest is just a mechanism, which is set out in the JVs.

The next question comes from Vivien Maquet from Degroof Petercam.

Just coming back or maybe on the pre-let, I understand that your -- I would say, internal target is 80% for projects to be started within the last 6 months. But looking at the numerous projects we intend to add to the development pipeline, as you mentioned, sizable deal negotiations, are you confident to keep the level of the pre-let to above 75%, if you account for everything under construction by year-end?

I'm very comfortable in saying that we are going to do more in the second half year without deteriorating our current pre-let scenarios. Yes, absolutely. It's based on what we have in the pipeline. If only -- what we sign now, if we already start up that and there is a little bit of more -- how you call, speculative development, we are going to sit at exactly the same or even better rates at the year-end. And we have a very -- we are monitoring this very closely because it's one of the things which really are important to us. We don't want to start building castles in the air. We really want to grow, and cash flow is for us a very important thing, getting it back. It's always been. We've always been at the same parameter. And so my answer is straightforward and blunt, yes, I'm confident. I will make it like that.

All right. And just maybe on the deliveries, the reason you removed the 700,000 square meter expected to be delivered by the year with any specific reason or just timing effect?

No, it's just timing effect. I think what is under construction is indeed planned to be delivered to what has been said before, but there can be some tenant specificities that may interrupt, but other, no specific reason.

The next question comes from Marios Pastou from Bernstein.

Just a follow-up question on the development and the costs associated. Can you just quantify the average development margins you are targeting and achieving across your pipeline? And then just on rental growth, can you confirm what the like-for-like rental growth was across the portfolio on a year-on-year basis?

Okay. So on the margins which we are trying to achieve everywhere is there is an internal thing. It's, of course, it depends a little bit. It goes from project to project, not all projects. We don't bake breads. It's not like we have a machine at which comes every product is exactly the same, but we target a 30% margin on it. That's where we -- and we seem to be able to achieve that throughout the portfolio everywhere. So that means that the yields are different everywhere because you have -- the exit yields are different for -- I already said many times, I look at Europe as one market. And I have the idea that eventually the yields will flatten out between separate markets a little bit more than they are today. They are -- the extremes between the markets are too big and some people don't understand enough the Eastern European countries, which are evaluating and growing at a lot faster pace and modernizing at a lot faster pace in the Western European countries.

So I think over time, with a little bit of faith, this will flatten out. But we try to have a stable margin. We try to keep pragmatic approach so that we can say through all of these markets, it makes sense to be there because our margin is everywhere roughly the same. In some markets, it will be a bit better than another. But on average, it will be 30%. And there is no country where we say we just planted the flag here and we want to be there. And so we are going to develop even with a negative margin. That's also why I didn't develop anything over the last 3 years in the Netherlands and only now I started because we just didn't have the inputs to make a nice margin there. Now we do have it, and that's how we really think about our countries, how we really think about the regions, I would call it more regions than countries where we look at. So it's a very big preoccupier for myself, the margin and as I said, we target to have at least 30%.

In terms of the rental growth question or the like-for-like rental growth, it was 2.4%. Some connotations to make, however, is that we do not have a lot of relettings to do. We have a relatively long WALT in the portfolio. It's 8 years on total, almost 10 years on our own balance sheet. But we had terminations of EUR 4.9 million in the first half of this year, to give you an example, EUR 4.1 million of those were replaced by EUR 4.8 million of rental income. So we had a serious uplift there. And other than that, we had the indexation on the portfolio, but the portfolio is relatively young. And the average age of our buildings is 4.5 years, and we have been delivering a lot in the last years as a result out of that. I hope that helps.

The next question comes from [ Vincy Lia ] from Kempen.

First one on the intended transaction. Just to make it clear, is it only planned transactions with Areim? Or is it also based on further JVs?

And then maybe second one on project starts, you said you would likely start more than in the first half. Given the typical lead time, that would imply that next year, you would be delivering close to 700,000 square meters. Would that be the correct assumption?

Yes. No. I forgot the first part of the question. Yes. Yes. The -- and the joint venture, the EUR 0.5 billion to EUR 1 billion, which we have planned now and next year is indeed the ones which are planned already, which have been signed and which are running on and where we have a commitment to from both sides of the table to close these things, and they are only dependent on the speed at which we can finalize our buildings in the jurisdictions, which we have agreed upon. So that's minimum EUR 0.5 billion, but we are very optimistic that it will be a lot more.

Separately, there are -- as I already said, there are other JV negotiations running, but I can't disclose yet what the timing nor the size will be until I've really reached an agreement. So yes, there are negotiations running, but we can't disclose yet anything on it. So that is the answer to the first question.

And the second question, how much we are going to deliver next year is really dependent how much we start up in the second half of this year. So if we start up EUR 500,000 or EUR 700,000 or EUR 400,000, it's going to define really what we deliver next year. So I can't really answer on that, [ Vincy ], even if I wanted to, but I think it will be sizable, yes, as it will be sizable in the second half of this year also because there are a lot of buildings coming to the end. And I think that's the right answer to your question.

The next question comes from Paul May from Barclays.

Just a couple of questions. Just on the first one. Are you able to quantify the remaining firepower in the existing JV. So how much more can they buy before you need to get new JVs signed up to continue disposals?

And then the second question, you obviously highlighted and we can see that in the market data that the market is generally weaker. We've had less take-up across the market every year. I think since 2021, there's been the less take-up, yet you're able to continue to deliver, continue to sign new leases, continue to sign new development, operating ahead of the market. Just wondering what it is that differentiates your land plots or your land values, your rental levels that you can offer versus the competition and why you're able to continue to deliver where the market is broadly struggling?

Yes. The remaining firepower in the JV is actually a little bit more than EUR 1 billion. So that is what we have still. So the rest, we need to work on. And why are we able to, we have tried to make from VGP, somebody who is very integrated and is -- we have been always focused on being a very good construction company. A very good construction company means we -- in all of our markets, we split up our buildings in all of its components. And then we are able -- then we just do ourselves the construction site, even very complex projects, also the BMW R&D facility or KraussMaffei production or the VAT thing.

And on average, I think that gives us a better margin over our projects than the competition or a sharper edge than the competition.

And on the land plot acquisition, I've always been looking at -- we have laid off a lot of land plot acquisitions, where people have been looking at rental growth and projected rental growth to where I never believed in it. And today, where we can buy the land back at very reasonable prices or fare prices. It's not what it was before 2022, but it's not also what it was after 2022 and 2023, when the prices were just crazy. We have really very nice land plots bought.

And with our 416 employees, which we have today, of which more than 60% are construction engineers, we managed really to be very aggressive while still maintaining our 30% margin. Hence, we can be more aggressive than many of the people who are working with a general contractor and are looking at it from an excel point of view, basis point of view, and we try to have a very close relationship to our customers. There is no secret to it. It's just hard work. There is nothing else. It's -- that's it.

And sorry, just to follow up on that one. Are you able to offer a lower rental level because you bought land well? Is that you say your underwriting of the land into your construction engineers, you're able to offer tenants a lower rental level? As a result, you can get good development margins on lower rent and then drive those rents higher in the future years. Is that sort of part of the strategy?

Indeed, it is, yes. We are not the only ones who are doing that. There are a couple of players like us in the market who have the same features, but that's the strategy. It is -- we really can be -- we try to be the best -- to offer the best solution in any view of you look at it, so everybody, wherever it comes in Europe, in all of our markets, we have the same strategy, and we try to really be a good partner for our customers, and that includes a very aggressive rental price policy, yes.

Sorry, last one. We've seen that across sort of the U.K. markets companies getting larger, seeing more tenant interest as a result. There's been quite a bit of equity funding of growth profiles that's being well supported by investors. Just wondered if that is something that you consider as an alternative to the JV structure, looking to be more on balance sheet funded by your own equity.

We have many possibilities to alter our strategy. But so far, it has worked very well, and it is our first choice, and we have no aim to do anything different in the near future. We don't have to.

Thank you, Paul. We will go to the next one.

The next question comes from Thomas Rothaeusler from Deutsche Bank.

Just one question actually on acquisitions. I mean, you indicate to acquire a number of strategic and iconic land plots, what you say. So it seems overall, you still see good buying opportunities in the market. Maybe you could elaborate a bit on this. And is it still the same opportunities you see as you saw last year?

Well, we see a lot of brownfield opportunities and a lot of these brownfield opportunities, they have been a lot of big production facilities. And I gave the quote of my father before about the energy. Energy has been a really big problem in Europe. And many of these large production facilities today, they need to reduce their footprint. So there is a lot of brownfields coming available in various markets, and we are very much looking at them because mostly they also come with a very large electricity connection, and it offers a lot of opportunity to us to exploit that.

They are not the same than last year. They are the same from type than last year, but there is a lot more of them in the market today. And I also have the feeling that although in some places, there is very tight competition for them because we're all looking at the same thing, in some other places, we have less competition, and we seem to be able to convince the local politicians with all the experience which we have from before and having done this. And it's very difficult also to manage the expectation of the local politicians about what are you going to do with a large brownfields on which there was a lot of workforce employment, and a lot of things generated overall these years, how are you going to treat it? And for that, I think we've built up a solid reputation, and it puts us -- it gives us an edge in the markets to acquire these land plots and to have the trust of the local people and giving them -- being in a very close cooperation with them to try to unlock the potential of these land plots.

And we see that there is quite some -- you can see it in our rental thing, there is quite some movement in the markets. There is a lot of onshoring ongoing, but there is also a lot of movement from different kinds of companies coming back or coming to Europe because they can't go anywhere else anymore or so they can't go to some other places. So I am very confident that we can keep on building up really land plots, which are in super locations and unlock their future profit contribution to VGP in the short term.

The next question comes from Steven Boumans from ABN AMRO - ODDO BHF.

Could you please provide some insight in the expected performance fee of the first Allianz joint venture? So to get some feeling of the proceeds, maybe what would be the amount if it would have closed today?

And maybe second, could you provide an expected range what you see as likely given today's markets? And any general comments to understand these proceeds would be very welcome.

Thank you for the question, I'll take it. It is correct that in some of the Allianz or in the joint venture, there is a promote structure, of which the first one is to come to maturity in May 2026. At the moment, it's not entirely -- we need to sit with Allianz and define the mechanism. It was always how we prolonged the promote with any -- we prolonged the JV term with 10 years about 2 years ago, so we need to redefine a bit how we are going to pay out the promote and how we're going to calculate it. So this is a negotiation or a talk that needs to go on with Allianz.

I expect that by the year-end, we will have further clarity on that and that we will then take the necessary provisions for that in our books. At the moment, it's difficult to ascertain.

The next question comes from Rob Jones from BNP Paribas.

It's Robert Jones. Steven still answering this question? Or is it myself who's answering?

Yes. I think the mic is now only open for you, Rob. Indeed, it was a bit cut...

Okay, no worries. We cut him off. No worries -- maybe just -- maybe we can come back then. Just a quick one. No worries. Just a very quick one. I really appreciate the JV EPRA earnings. That's really helpful. Is there a group EPRA earnings figure for H1 you can give? And then just going back to that promote, I was expecting your answer to be we've got a spreadsheet. This is implicitly the number in terms of it is closed today. But obviously, there's lots of moving parts to now and 2026. I was kind of surprised to get the answer around where we've got to go back to Allianz and renegotiate the structure or the way the payment mechanism works.

And I guess linked to that statement, I wonder if there are any other JV promotes that you have on your other 5 JVs and how we should think about the likelihood of getting -- as to whether those structures in terms of the promote if they exist are set in stone or whether actually when it gets to kind of year 10, and there needs to be a new debate and actually from a shareholder perspective, there isn't a guarantee of a certain quant of future income coming in relation to that promote structure.

Rob, the initial documentation, which we have with Allianz, where we have -- so yes, there is a promote structure in 4 of the 5 JVs, there is one which has no promote structure, which is the Deka one. All the others have a similar or exactly copy of the promote structure. And the Allianz deal, it was negotiated in 2016 back, and then, there was the idea of having an exit in the year 2026 at the end of the 10-year running, on which there is -- there are a lot of parameters set in the event of a liquidation.

Now 2 years ago, we have prolonged together with Allianz, the running part of the JV, the investment period of the JV with another 10 years until 2036. So there is no liquidation event until 2036 foreseen at the moment. And it has been defined that we are entitled to promote, which is exactly -- yes, there is an Excel sheet. But there are a couple of things which we need to define with Allianz because they are different. There is no liquidation at the moment. So we need to really go back and really discuss it with them. And we don't want to give you a number which is not accurate because then you are going to calculate with something. I mean it's different more or less. So give us a little bit of time, please, at the end of the year. And then I hope that we can give you clarity on this. Yes.

Perfect. And EPRA earnings?

Well, the EPRA earnings, I can give you a number, but you always have to take into account that VGP is also a developer, is also a renewable energy company. It would be roughly, I think, around EUR 52 million, EUR 53 million, if you calculate it, and it's easily calculatable. You take the proportional income statement I have shared before. You take out the revaluation gains and the deferred taxation, depreciation on the solar energy and then the early repayment on the bond of EUR 5 million. If you take that all back, then you come roughly around EUR 53 million.

But of course, the EPRA earnings does not reflect the development profits that we're able to make, and it reflects the full cost of our admin, our administration expenses, which, of course, are also for a large part as you can see in the segmentation of the EBITDAs allocated or a representative for our development part of the business. So...

I would say that 80% of our cost structure is around development and land acquisition. And so it's not fair to compare an EPRA metrics, which is really made for a REIT towards us where you should split up the company then and say, I will look at it from the investment point of view, where is the rental income and the allocated, and there is an EPRA metrics, which you can also easily calculate. We don't give it on purpose because we don't think it's suitable to use on us in the structure as we are.

This is the end of the Q&A session. So I hand the conference back to the speakers for any closing comments.

I just want to thank you all for being -- having been on the call. If there is any other questions, we are gladly available for a phone call with you. And I wish you all good luck and I hope you do the same to us. Thank you. Bye-bye.

Thank you. We will speak soon. Bye-bye.

Bye-bye.

Thank you for participating.