VGP, the Belgian logistics real estate group, released its 2025 results showing a mix of outperformance and shortfalls across financial and operating metrics.
The company reported recurring earnings per share of 3.76, a 33% increase versus the prior year and 6% ahead of analyst expectations. Proportionally consolidated total gross rental income reached 247.4 million, up 17% year-on-year and 2.4% above Jefferies' estimate. Net rental income rose 18% to 223.4 million.
Despite those gains, several key profit measures fell below forecasts. Proportional operating profit including valuation gains was 433 million, a 9% increase from 2024 but 17% lower than analyst projections. Reported net profit remained unchanged at 290 million (10.64 per share), coming in 23% under Jefferies' estimate of 379 million.
On the development front, VGP completed 21 projects during 2025, adding 494,000 square meters of lettable area. Those completions reached a 99% occupancy level and represent 33 million in annualized lease income. The company has 43 projects currently under construction, which are expected to add 1,052,000 square meters of lettable area once finished.
VGP also expanded its land holdings, growing the land bank to 10.3 million square meters after acquiring 1,327,000 square meters of land last year. In a strategic move to broaden its capital base, the company said it intends to establish a fund with East Capital that will target at least 1.5 billion in gross asset value with an emphasis on Central and Eastern Europe.
Measures of balance-sheet strength and shareholder value were mixed. EPRA Net Tangible Assets per share rose 9% year-over-year to 97.33, but this measure was below analyst expectations of 101.80. Proportional net debt increased 13% to 3.4 billion and the loan-to-value ratio stood at 50%.
For shareholders, VGP proposed a dividend of 3.40 per share, up from 3.30 a year earlier but short of the 3.50 level some analysts had anticipated.
These results present a combination of operational expansion and financial metrics that did not fully meet market forecasts, leaving investors to weigh growth in rental income and development activity against profit and valuation measures that disappointed relative to analyst expectations.