VGP - Half year results 2014

Profit for the period of € 43.4 million (+ € 34.3 million against 1H 2013)

Sale of the remaining 20% stake of the VGP CZ I and VGP CZ II portfolios during the month of August 2014 creating substantial additional shareholder value

105.3% growth in gross rental income (+ € 2.1 million) to € 4.1 million

25.0 % increase of committed annualised rent income to € 13.0 million (+ € 2.6 million compared to 31 December 2013) The signed committed lease agreements represent a total of 252,288 m² of lettable area with the weighted average term of the committed leases standing at 7.1 years at the end of June 2014 (7.6 years as at 31 December 2013)

8 projects under construction representing 121,148 m² of future lettable area

584,000 m² of new development land acquired in Germany with another 238,000 m² land plots (152,000 m² located in Germany) targeted and already partially committed to expand land bank and support development pipeline

Net valuation gain on the investment portfolio reaches € 40.9 million (+ € 33.6 million against 1H 2013)

The fair value of the investment properties as at 30 June 2014 increased with 46.2% to € 330.2 million (+ € 104.3 million compared to 31 December 2013)

Summary

During the first half of 2014 VGP delivered a solid performance in terms of development, leasing and property and facility management activities.

Roll out of the Group's activities gathered pace in Germany with additional leases being signed and new developments being completed and or in last stages of completion. The potential pipeline for future leases and developments in Germany continued to fill up well, which will result in the signing of significant new lease contracts and start-up of new developments during the second half of 2014. During the first half of 2014 VGP's activities can be summarised as follows:

The operating activities resulted in a net profit of € 43.4 million (€ 2.33 per share) for the period ended 30 June 2014 compared to a net profit of € 9.1 million (€ 0.49 per share) for the period ended 30 June 2013.

The increase in demand of lettable area resulted in the signing of new lease contracts in excess of € 7.0 million in total of which € 4.5 million related to new or replacement leases (€ 2.6 million for VGP's own portfolio) and € 2.5 million (all on behalf of the associates) were related to renewals of existing lease contracts.

The Group's property portfolio reached an occupancy rate of 96.7% at the end of June 2014 (excluding the associates) compared to 96.9% as at 31 December 2013.

The investment property portfolio consists of 15 completed buildings representing 214,287 m² of lettable area with another 8 buildings under construction representing 121,148 m² of lettable area.

Besides this VGP partially (20%) owns through its associates another 58 buildings which represent 627,523 m² of lettable area and for which property and facility management services are provided by the VGP Group. During the month of August 2014 the 20% stake in these buildings was disposed of.

During the first half of 2014, VGP continued to expand its land bank and acquired 584,000 m² of new development land in Germany. In addition at the end of June the Group had 238,000 m² land plots (152,000 m² located in Germany) targeted and partially committed to expand the land bank and support the development pipeline.

The net valuation of the property portfolio as at 30 June 2014 showed a net valuation gain of € 40.9 million against a net valuation gain of € 7.4 million per 30 June 2013 reflecting the improving market conditions and the increased attractiveness from investors for A-grade logistic buildings.

As at 30 June 2014 the financial income continued to benefit from the interest income on loans made available to associates but was adversely impacted by the interest on the 2 bonds which were issued during the financial year 2013. This resulted in a net financial expense of € 3.2 million compared to a net financial income of € 1.7 million as at 30 June 2013.

On 22 August 2014 VGP and its joint venture partners entered into a sales agreement to sell the Czech VGP CZ I and VGP CZ II portfolios. With this transaction VGP sold its remaining 20% stake in these 2 Czech portfolios. The completion of the transaction is expected to occur during the last quarter of 2014.

More information at VGP website.