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Belgian VGP's gross rental income climbs 81% in H1 '09.

(ADPnews) - Aug 17, 2009 - Belgian real estate developer VGP NV saw its gross rental income jump by 81.2% on the year to EUR 9.3 million (USD 13.1m) in the first half of 2009.

The company also confirmed its targets for the whole year and promised to pay a dividend for 2009.

The last half year, VGP, which is chiefly active in central Europe, was able to sign new lease contracts for EUR 3.1 million. The occupancy rate of its real-estate portfolio rose to 90.8%.

The company said it does not see a deterioration of the lease market in the Czech Republic, which is its core region.

Besides, VGP managed to sign four lease contracts in Hungary, Slovakia and Estonia over the past quarter.

The company's first-half net current profit, which excludes changes in the valuation of the property portfolio, rose by 41.9% to EUR 3.3 million.

On the other hand, a big part of the increase of the rental income was nullified by the strong rise of the financial costs. At net level, VGP came thus in the red.

Net loss amounted to EUR 11.7 million and was almost fully attributed to a negative value adjustment of the real-estate portfolio of EUR 36 million.

By the end of the year, the company's property portfolio is expected to contain 45 buildings with a total area of over 500,000 sq m (5.382m sq ft), meeting VGP's annual target.

(EUR 1.0 = USD 1.414)

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Publication:ADP News Belgium
Date:Aug 17, 2009
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