Half Year 2026 VGP NV Earnings Call

August 20, 2026

Operator: VGP's financial results over H1 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing #5 on their telephone keypad. Now I will hand the conference over to the speakers. Please go ahead.

Operator: VGP's financial results over H1 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers. Please go ahead.

Speaker #1: VGP's financial results for the half-year 2026. For the first part of the conference call, participants will be in listen-only mode. During the Q&A session, participants can ask questions by dialing #key5 on their telephone keypad.

Speaker #1: Now, I will hand the conference over to the speakers. Please go ahead.

Speaker #2: Good morning, everybody, and welcome to the presentation and webcast of our performance over the first half-year. I'll start with an executive summary of what has happened: the first quarter—the year actually started very well—and the second quarter was a little bit subdued due to this Operation Epic Fury, which everybody has been following with great interest.

Jan Van Geet: Good morning, everybody, and welcome to the presentation of that webcast of our performance and over this H1. I will start with an executive summary of what has happened. The first quarter, the year actually started very well, and the second quarter was a little bit subdued to this Operation Epic Fury, which everybody has been following with great interest. It seems now that dust is settling a little bit. The third quarter has been very well so far. We have very nice prospects for the rest of the year, especially in newly signed lease agreements underway. We report a net profit before tax of EUR 141 million, EUR 140.9 million. That is EUR 120 million net profit after tax, earnings per share of EUR 4.26.

Speaker #2: It seems now that, with things settling a little bit, the third quarter has been very good so far, and we have very nice prospects for the rest of the year, especially in newly signed lease agreements underway.

Speaker #2: We report a net profit before tax of $141 million—$140.9 million, to be precise. That's $120 million net profit after tax, with earnings per share of $4.26. We also report an EBITDA of $186.4 million, and you'll probably be pleased to hear that $130.5 million of that is from the recurring investment segment—so, recurrent income.

Jan Van Geet: We also report an EBITDA of EUR 186.4 million, and you will be probably pleased to hear that EUR 130.5 million from that is recurring investment segment, so recurrent income. We had EUR 128.2 million of net rental and renewable income at share, which is a growth of 17.9% year-on-year on a proportional basis. At 30 June, our committed annualized rent incomes stood at nearly half a billion at EUR 489 million. That has grown to EUR 496 million meanwhile. It is 11% year-on-year growth, and we will soon break the half a billion barrier, which we have been always looking for. I hope it will happen in September. I am sure it will happen in September. We have EUR 260 million of cash generative leases at the moment at share, which means handed over generating lease income already.

Speaker #2: We had $128.2 million of net rental and renewable income at share, which is a growth of 17.9% year-on-year on a proportional basis. And at the 30th of June, our committed annualized rent income stood at nearly half a billion, at $489 million.

Speaker #2: That has grown to $496 million meanwhile, and it's 11% year-on-year growth. And we will soon break the half-a-billion barrier, which we've always been looking for, and I hope it will happen in September.

Speaker #2: I'm sure it will happen in September. We have $260 million of cash-generative leases at the moment at share, which means handed over, generating lease income already.

Speaker #2: We initiated 314,000 square meters of new developments and delivered 236,000 square meters in the first half, which were 86% let. Our proportional LTV dropped from 50% at year-end to 49.3%.

Jan Van Geet: We initiated 314,000 square meter of new developments and delivered 236,000 square meters in the H1, which are 86% let. We have our proportional LTV dropped from 50% at the year-end to 49.3%. We have a consolidated gearing of 35.5%, and we still have a BBB- with a stable outlook both from Fitch and Standard & Poor's. Our shareholders' equity was up 10.5% year to date after of EUR 247 million net equity raise. At the moment, we have EUR 9.2 billion assets under management. If you look at our investment property at share, then that is EUR 6.1 billion. In December, we had EUR 8.7 billion assets under management. We have multiple joint venture closings upcoming. As you know, our SAGA, our latest joint venture, is momentarily 60% deployed.

Speaker #2: We have a consolidated gearing of 35.5%, and we still have a BBB minus rating—I mean, a stable outlook, both from Fitch and Standard & Poor's.

Speaker #2: Our shareholders' equity was up 10.5% year to date, after a $247 million net equity raise. At the moment, we have $9.2 billion in assets under management.

Speaker #2: If you look at our investment property at share, then that is $6.1 billion. And in December, we had $8.7 billion in assets under management. We have multiple joint venture closings upcoming.

Speaker #2: As you know, our SAGA, our latest joint venture, is currently 60% deployed. We foresee doing a large transaction both at the end of this year, the beginning of next year, and then starting a second SAGA vehicle.

Jan Van Geet: We foresee to do a large transaction both in the end of this year, beginning of next year, then to start a second SAGA vehicle. Our East Capital fund is in preparation for 2027. Then I also have some news which I will talk a little bit about, but mostly on our Capital Markets Day, about our data center deployment. We've always been very careful in communicating about it because we wanted to be sure before we say something that we also can deliver. I think the time has come to reveal a little bit what we plan to do in the next 2 to 3 years on the data center side. I am going to hand over the work to Piet first now for the financial performance.

Jan Van Geet: We foresee to do a large transaction both in the end of this year, beginning of next year, then to start a second SAGA vehicle. Our East Capital fund is in preparation for 2027. Then I also have some news which I will talk a little bit about, but mostly on our Capital Markets Day, about our data center deployment. We've always been very careful in communicating about it because we wanted to be sure before we say something that we also can deliver. I think the time has come to reveal a little bit what we plan to do in the next two to three years on the data center side. I am going to hand over the work to Piet first now for the financial performance.

Speaker #2: And our East Capital fund is in preparation for 2027. I also have some news, which I will talk a little bit about, but mostly on our Capital Markets Day.

Speaker #2: Regarding our data center deployment, we've always been very careful in communicating about it, because we wanted to be sure that before we say something, we also can deliver.

Speaker #2: So I think the time has come to reveal a little bit, to reveal a little bit what we plan to do in the next two to three years on the data center side.

Speaker #2: I'm going to hand over the word to Piet first. Now, for the financial performance.

Speaker #3: Thank you, Jan. As always, I've prepared a set of slides to walk you through the main changes over the period, albeit this time it's in a bit of a new jacket.

Piet Van Geet: Thank you, Jan. As always, I have prepared you a set of slides to walk you through the main changes over the period, albeit this time it is in a bit of a new jacket. As Jan mentioned, we are happy to report a profit of EUR 120 million or EUR 140 million before taxes with a strong contribution from all of our business segments, resulting also in EUR 186 million of EBITDA. If you compare a bit year-over-year, then you will see that the EBITDA by the segments has grown from EUR 118 million to EUR 131 million in the investment segment. That is mainly as a result of the recurring earnings and the net rental income that has grown significantly, both in our own portfolio as in the joint ventures. I will share a bit more details on that on the next slide.

Speaker #3: But as Jan mentioned, we are happy to report a profit of $120 million, or $140 million before taxes, with a strong contribution from all of our business segments, resulting also in $186 million of EBITDA.

Speaker #3: If we compare a bit year over year, then you will see that the EBITDA by the segments has grown from $118 million to $131 million in the investment segment.

Speaker #3: That is mainly as a result of the recurring earnings and the rental and renewable—the net rental income that has grown significantly, both in our own portfolio as well as in the joint ventures.

Speaker #3: Our share is a bit more detailed on that on the next slide. In the development, we have a decrease from $118 million to $52 million; it's not that there is anything outspokenly negative happening in H1, it's just that H1 25 benefited from some additional revaluation gains, as well as transactions with joint ventures, which resulted in a significant realized gain, and we haven't done any joint venture transactions to date.

Piet Van Geet: In the development, we have a decrease of EUR 118 million to EUR 52 million. It is not that there is anything outspokenly negative happening in H1. It is just that H1 2025 benefited from some additional revaluations gains, as well as transactions with joint ventures which resulted in a significant realized gain, and we have not done any joint venture transactions to date. On the other hand, the renewable energy EBITDA doubled from EUR 2.1 million to EUR 4.3 million as a result of a higher output of our solar installations and also the battery systems that are coming online. If we break it down a bit and focus on the different contributing factors, the first and foremost is our recurring earnings, which have grown significantly organically also, which is at share up with 18% to EUR 128 million.

Speaker #3: On the other hand, the renewable energy EBITDA doubled from $2.1 million to $4.3 million, as a result of higher output from our solar installations and also the battery systems that are coming online.

Speaker #3: So, if we break it down a bit and focus on the different contributing factors, the first and foremost is our recurring earnings, which have grown significantly. Organically also, which is, at share up with 18% to $128 million.

Speaker #3: So, that's $51.7 million, or 26% up in our own portfolio, and $76 million is our share in the joint ventures. Rental income—that's up 13%—so I think it's a testament to the quality of our rental, and as Jan mentioned, we have $489 million of contracted annualized rental income in the entire group at 100%.

Piet Van Geet: That is EUR 51.7 million or 26% up in our own portfolio, EUR 76 million in our share in the joint ventures. Rental income, that is up 13%. I think it is a testament to the quality of our rental. As Jan mentioned, we have EUR 489 million of contracted annualized rental income in the entire group at 100%. Out of that, proportionally, EUR 327 million is the contracted income, of which EUR 260 million is already cash generative. The rest is being handed over, of which a majority part will be in the next 12 months delivered. Solar, as I mentioned, is up 10%. It is mainly a production increase from 71 to 78 gigawatts, and also a capacity increase that is exactly linked to it. Basically, it is 9%, and we have now 170 megawatts under construction.

Speaker #3: Out of that, proportionally, $327 million is the contracted income, of which $260 million is already cash-generative. The rest is being handed over, with the majority to be delivered in the next 12 months.

Speaker #3: Solar, as I mentioned, is up 10%. It's mainly a production increase from 71 to 78 gigawatts, and also a capacity increase. That is exactly linked to it, basically.

Speaker #3: It's 9%, and we now have $170 million under construction. We also had good indexation on the portfolio in the first half of this year, and we were also able to re-let vacant space.

Piet Van Geet: We also had a good indexation on the portfolio in H1 of this year. We were also able to relet vacant space, with an average 6% increase in the rental price. That is compared to the latest rental price that was active in that building and that we now replaced. It is not just one contract, it is quite spread over the group. All in all, the recurring income, the rental, and renewable energy performed very well. The valuation gains, they are EUR 65.9 million on our own P&L. On the joint ventures, there is a EUR 25 million revaluation, so at share. The total revaluations at share is EUR 91 million. As you can see, the valuation gains, they are primarily driven by the constructions that have been initiated in H1 2026.

Speaker #3: With an average 6% increase in the rental price—that is, compared to the latest rental price that was active in that building and that we now replaced.

Speaker #3: And it's not just one contract; it's quite spread over the group. So, all in all, the recurring income, the rental, and renewable energy performed very well.

Speaker #3: The valuation gains—they are $65.9 million on our own P&L, and on the joint ventures, there is a $25 million revaluation at share. So, the total revaluations at share is $91 million.

Speaker #3: As you can see, the valuation gains are primarily driven by the constructions that have been initiated in the first half of '26. And just to give you a bit of color on that—how the development gains are coming to be—I've made the box and whisker graph on the left, which shows a bit of title development gap. It shows, on the left side, the yield on cost of the developments, and on the right side, the weighted average yield by the appraisers of these developments.

Piet Van Geet: Just to give you a bit of color on that, how the development gains are coming to be, I have made the box and whisker graph on the left, with the title Development Gap, which shows on the left side the yield on cost of the developments. On the right side, the weighted average yield by the appraisers of these developments. You should always know that these developments that have been initiated, they are at the beginning of their construction period. There might still be some vacancy in. Up until the moment you stabilize the asset and the asset becomes completed and fully rented, the weighted average yield, provided there are no real fluctuations in other movements in valuations assumptions, it will come down.

Speaker #3: But you should always know that these developments that have been initiated, they are at the beginning of their construction period. There might still be some vacancy in, so up until the moment you stabilize the asset and the asset becomes completed and fully rented, the weighted average yield, provided there are no real fluctuations in the other movements in valuation assumptions, it will come down.

Speaker #3: But as you can see, the yield on cost—we are very enthusiastic about it—and the lowest asset that we have is at 7.2%, while the highest we have is at 11.5%.

Piet Van Geet: But as you can see, the yield on cost, we are very enthusiastic about it. The lowest asset that we have is at the 7.2%. The highest we have is at 11.5%. On the average, we are around 8.7% yield on cost, fully loaded, of course, with capitalized interest and development fees, et cetera. Whereas you see the weighted average yield, of course, should be lower. That triggers the margin, is between 5.4% to 9.6%, where the average is at the moment 6.5%. That looks very promising also for the future because we expect this to ramp up further, by continuing to develop these assets that have initiated. You can also see this in the average yield of our portfolio on our own balance sheet. That is around 7%. In joint ventures portfolio, it is very stable at 5.22% to 5.25%.

Speaker #3: And on average, we are around 8.7% yield on cost, fully loaded, of course, with capitalized interest and development fees, et cetera. Whereas, you see, the weighted average yield, of course, should be lower; that triggers the margin.

Speaker #3: It's between 5.4 and 9.6, where the average at the moment is 6.5. So that looks very promising, also for the future, because we expect this to ramp up further by continuing to develop these assets that have been initiated.

Speaker #3: You can also see this in the average yield of our portfolio on our own balance sheet; that's around 7%. And in the joint ventures portfolio, it's very stable: 5.22 to 5.25.

Speaker #3: Also, the revaluation in the joint venture: we have a €25 million contribution at share, but that's towards the size of the joint ventures—which you can see on the right side.

Piet Van Geet: Also, the revaluation of the joint venture, we have a EUR 25 million contribution and share, but towards the size of the joint ventures, which you can see on the right side. That is quite a stable revaluation. As Jan was mentioning, we have EUR 9.2 billion assets under management. The inner circle shows it at 100%, so the EUR 2.8 billion is on our own balance sheet. The rest is in the JVs. The outer circle shows actually in the gray bars, which are in the joint venture, which is our share. So we own EUR 3.3 billion inside of the joint ventures IP. EUR 3.1 billion is, of course, economically owned and legally owned by our joint venture partners. Together, EUR 6.1 billion and 74% of the assets of the EUR 9.2 billion, they are also located in Western Europe.

Speaker #3: That is quite a stable revaluation. And as Jan was mentioning, we have €9.2 billion assets under management. The inner circle shows you that 100%, so the €2.8 billion is on our own balance sheet.

Speaker #3: The rest is in the JVs. The outer circle actually shows, in the gray bars, which are in the joint venture, which is our share.

Speaker #3: So we own €3.3 billion inside of the joint ventures’ IP, and €3.1 billion is, of course, economically owned and legally owned by our joint venture partners.

Speaker #3: So, together, €6.1 billion. And 74% of the assets, of the €9.2 billion, are also located in Western Europe. I think I mentioned already, probably most of what has happened in our joint ventures.

Piet Van Geet: I think I mentioned already probably most what has happened in our joint venture. So strong increase in the net rental income with 13% valuation gains I have just described. I am also very happy to show once the EPRA metrics of our joint ventures, because we always consider our joint ventures a sort of a REIT, and they are fully stabilized portfolios. We try to run them as efficiently as possible. We try to distribute all of the excess cash during the year in different formats. But it is a result that our EPRA earnings of the joint ventures have increased to 16.4%. Cost ratios are well in check. The valuation yields, they are very stable. The vacancy rate has come down from 2% to 1.2%. Very happy to see that. The LTV has also come down from 32% to 31.5%.

Speaker #3: So, strong increase in the net rental income with 13%. Valuation gains, I've just described. But I'm also very happy to show, once the EPRA metrics of our joint ventures, because we always consider our joint ventures sort of as a REIT—they are fully stabilized portfolios, and we try to run them as efficiently as possible.

Speaker #3: We try to distribute all of the excess cash during the year, and in different formats. But as a result, our EPRA earnings of the joint ventures have increased to 16.4%.

Speaker #3: Cost ratios are well in check. The valuation yields are very stable. The vacancy rate has come down from 2% to 1.2%. Very happy to see that.

Speaker #3: And then the LTV has also come down from 32% to 31.5%. There was also an excellent performance in our Rheingold joint venture, which has a track record, in its 10-year existence now, of above 12%.

Piet Van Geet: There was also an excellent performance in our Rheingold joint venture, which has a track record in its 10-year existence now of above 12%. This triggers the promotes of EUR 18.4 million. This was also already provisioned at year-end, has also been paid out. But the cash was received on 1 July, so you will see that popping up in our cash flow in the H2 of this year. Finally, Rheingold also needed to refinance, as the term of the JV came to its maturity, such that its debt, that was EUR 844 million. We have completely been able to refinance that quite easily, even in the volatile market environment. It is now replaced with a bullet facility with a small top-up of EUR 886 million, which also allowed for the payment of the promotes to VGP. On the balance sheet, I think it is a pretty straightforward story.

Speaker #3: This triggers a promote of €18.4 million. This was also already provisioned at year-end and has also been paid out. But the cash was received on 1 July, so you will see that popping up in our cash flow in the second half of this year.

Speaker #3: Finally, Rheingold also needed to refinance as the term of the JV came to its maturity, such that it is debt. That was $844 million.

Speaker #3: We have completely been able to refinance that quite easily, even in the volatile market environment. And it's now replaced with a bullet facility, with a small top-up of $886 million, which also allowed for the payment of the promote to VGP.

Speaker #3: On the balance sheet, I think it's a pretty straightforward story. Our total assets and equity and liabilities have increased from €5.2 billion to €5.8 billion.

Piet Van Geet: Our total assets and equity and liabilities have increased from EUR 5.2 billion to EUR 5.8 billion. The shareholders' equity is up to EUR 2.9 billion. So the investment property increased from EUR 2.4 billion to EUR 2.8 billion. It is the equation of EUR 378 million of CapEx and then the revaluation effects. Our share in the joint ventures, as I showed their performance on the previous slide, that equates an equity participation in value of EUR 1.5 billion. Our consolidated gearing is stable with 35.5%, and our proportional LTV at share came down to 49.4%. We have a very solid cash position with EUR 599 million and untapped RCF, so EUR 500 million. So we have a liquidity position of above EUR 1 billion. Maybe to zoom in once on our debt, because we have been quite active in the last 18 months on the debt markets. Last year, we raised a bond of EUR 576 million.

Speaker #3: The shareholders’ equity is up to €2.9 billion. So, the investment property increased from €2.4 to €2.8 billion. It’s the equation of €378 million of capex and then the revaluation effects.

Speaker #3: Our share in the joint ventures, as I showed their performance on the previous slide, that equates in an equity participation in value of €1.5 billion.

Speaker #3: Our consolidated gearing is stable at 35.5%, and our proportional LTV at share came down to 49.4%. We have a very solid cash position, with €599 million and an untapped RCF of €500 million.

Piet Van Geet: We have a very solid cash position with EUR 599 million and untapped RCF, so EUR 500 million. So we have a liquidity position of above EUR 1 billion. Maybe to zoom in once on our debt, because we have been quite active in the last 18 months on the debt markets. Last year, we raised a bond of EUR 576 million.

Speaker #3: So we have a liquidity position of above €1 billion. Maybe to zoom in once on our debt, because we have been quite active in the last 18 months on the debt markets. Last year we raised a bond of €576 million; at the beginning of January, we raised one of €600 million, which was then used to repay a bond in March of €190 million. Also, we bought back €100 million on the January 2027 bond outstanding.

Piet Van Geet: Beginning of January, we raised one of EUR 600 million, which was then used to repay a bond in March of EUR 190 million, and also we bought back EUR 100 million on the January 2027 bond outstanding. As you can see in the graph on the left, that bond is now EUR 220 million. It was one and a half years ago, EUR 500 million, but they have been proactively extending the maturity on these bonds and being repaying them and very happy that we did so. So the refinancing that we are looking at now until 2029 is very limited, with only one bond remaining in 2027 of EUR 220 million. Of course, in the current interest environment, I do not think it will come as a surprise that our interest has come up from 2.7% to 3%.

Speaker #3: As you can see in the graph on the left, that bond is now €220 million. It was, 1.5 years ago, €500 million, but they have been proactively extending the maturity.

Speaker #3: On this bond and being repaying them. And very happy that we did so. So, the refinancing that we are looking at now until 2029 is very limited, with only one bond remaining in '27 of €220 million.

Speaker #3: Of course, in the current interest environment, I don't think it will come as a surprise that our interest has come up from 2.7% to 3%.

Piet Van Geet: But again, we are looking quite bright to the future as we do not have to do any major refinance in the next years to come. Revenue is vanity, EBITDA is sanity, but the cash is the reality. It is always good to also look once at the cash flow and see where the money has flown through. You can see that the net cash from the operating activities went from EUR 28 million to EUR 4 million. It is not that our operating cash flow went down. On the contrary, it is mainly the movement on the working capital that has played its part. It is a bit of an unfortunate that the promote was only received on 1 July. Otherwise, this picture would have looked already different, but it is mainly buildups in some short-term receivables, but nothing out of the ordinary. But that is a good contribution.

Speaker #3: But again, we are looking quite bright to the future, as we don't have to do any major refinance in the next years to come.

Speaker #3: You know, revenue is vanity, EBITDA is sanity, but cash is reality. So it's always good to also look once at the cash flow and see where the money has flowed through.

Speaker #3: You can see that the net cash from operating activities went from $28 million to $4 million. It's not that our operating cash flow went down.

Piet Van Geet: It is not that our operating cash flow went down. On the contrary, it is mainly the movement on the working capital that has played its part. It is a bit of an unfortunate that the promote was only received on 1 July. Otherwise, this picture would have looked already different, but it is mainly buildups in some short-term receivables, but nothing out of the ordinary. But that is a good contribution.

Speaker #3: On the contrary, it's mainly the movement on the working capital that has played this part. It's a bit unfortunate that the promote was only received on 1 July.

Speaker #3: Otherwise, this picture would have already looked different. But it's mainly build-ups in some short-term receivables, but nothing out of the ordinary. But that is a good contribution.

Speaker #3: The net cash used in the investing activities is €331 million. It's up versus last year. It's mainly driven by a higher capex spend of €376 million.

Piet Van Geet: The net cash used in the investing activities is EUR 331 million. It is up versus last year. It is mainly driven by a higher CapEx spend of EUR 376 million. We also sold one of our parks in Latvia, which was VGP Park Tiraines. Last year, we sold VGP Park, Riga in the H2 of the year. That provided some cash in of EUR 26 million. We had distributions of joint ventures in the H1 up versus last year. It was EUR 19.2 million. I think we can expect minimum EUR 18 million for the year. But the JV distributions, they usually come in the H2 of the year. Some of them pay it regularly, others, we do it in one go. But we expect about EUR 18 million at least. Then in the finance activities, also a big swing versus the previous year.

Speaker #3: We also sold one of our parks in Latvia, which was VGP Park Tīraines, last year. We sold VGP Park Riga in the second half of the year.

Speaker #3: That provided some cash inflow of €26 million. We had distributions of joint ventures in the first half, up versus last year. It was €19.2 million.

Speaker #3: I think we can expect a minimum of €18 million for the year, but the JV distributions usually come in the second half of the year.

Speaker #3: Some of them pay it regularly; others, we do it in one go. But we expect about €18 million at least. And then, in the finance activities, also a big swing versus the previous year.

Speaker #3: So we raised a bond of €600 million, which raised €593 million net of proceeds. We repaid a €190 million bond in January, and €100 million proactively.

Piet Van Geet: We raised a bond of EUR 600 million, which raised EUR 593 million net of proceeds. We repaid EUR 190 million bond in January and EUR 100 million proactively, so that is EUR 190 million net. We raised an equity of EUR 250 million, net EUR 247 million. We paid out the dividends, we paid out the interest on our bonds. The interest that you will see in the P&L is lower than the interest paid. That is because most of our bonds have been raised in the H1 of the year, and that is when we also pay the interest. So that is actually less to be expected in the H2, cash flow-wise. I think that will conclude my slides, and I will give it back to Jan. Thank you very much.

Speaker #3: So that's €190 million net. We raised an equity of €250 million, net €247 million. We paid out the dividends. We paid out the interest on our bonds.

Speaker #3: The interest that you will see in the P&L is lower than the interest paid. That is because most of our bonds have been raised in the first half of the year, and that is when we also pay the interest.

Speaker #3: So that's actually less to be expected in the second half, cash flow-wise. And I think that will conclude my slides, and I'll give it back to Jan.

Speaker #3: Thank you very much.

Speaker #1: Yes.

Jan Van Geet: Yes. I will continue with the operational performance. The park you are seeing on the picture in the presentation is our VGP park in East Midlands, and we have already leased the first building under construction now to GameStop. It was just signed. It will start generating income at the end of this year, and we are in active negotiations for the second building. On the leasing activity, I will start with the leasing activity. We just put in the slide 1. This is our park in Vélizy, not very far away from Versailles. As you can see, you can see also the Eiffel Tower, which is here in the back. It is really 13 kilometers away from the Eiffel Tower. We are very proud of the location. We think it is absolutely stunning. That is our VGP park in Vélizy, completely demolished meanwhile now.

Speaker #3: I will continue with the operational performance. The park you see in the picture in the presentation is our VGP Park in East Midlands.

Speaker #3: And we have already leased the first building, which is under construction now, to GameShop. The agreement was just signed. It will start generating income at the end of this year.

Speaker #3: And we are in active negotiations for the second building. On the leasing activity, I will start with the leasing activity. We just put in this slide once.

Speaker #3: This is our park in Vélizy, not very far away from Versailles. And as you can see, you can also see the Eiffel Tower, which is here in the back.

Speaker #3: It's really starting kilometers away from the Eiffel Tower. We're very proud of the location. We think it's absolutely stunning. That's our VGP Park in Vélizy, completely demolished meanwhile now.

Speaker #3: It used to be an R&D facility for Stellantis. And we are signing our first lease agreement on the building right in the corner on top.

Jan Van Geet: It used to be an R&D facility for Stellantis, and we are signing our first lease agreement on the building right in the corners on top in the coming week. We have a record committed rental income at 30 June of EUR 489 million, including the joint ventures at 100%. Our committed annualized rental income has gone up by 7.6 times over the last 10 years. We have grown considerably. We have 482 tenants, but 693 tenancy contracts, which also shows that we have a lot of repetition clients, a lot of clients who put their faith in us and come again, and also over multiple countries. If somebody talks about a real European platform, we have assets in 16 different countries. I think we are a real European player, also from a shareholding perspective. The bridge of the committed annualized rental income, if you look at it.

Speaker #3: In the coming week, we have a record committed rental income as of June 30th of €489 million, including the joint ventures at 100%. Our committed annualized rental income has increased 7.6 times over the last 10 years.

Speaker #3: So we've grown considerably. We have 482 tenants, but 693 tenancy contracts, which also shows that we have a lot of repeat clients—a lot of clients who put their faith in us and come again, and also over multiple countries.

Speaker #3: And if somebody talks about a real European platform, I mean, we have assets in 16 different countries. I think we are a real European player, also from a shareholding perspective.

Speaker #3: The bridge of the committed annualized rental income, if you look at it. So, we started with €468.3 million of leases at the year end.

Jan Van Geet: We started with EUR 468.3 million of leases at the year-end. We signed EUR 24 million of new leases. Meanwhile, that has gone up to EUR 31 million. We have some indexations, EUR 7.6 million. We have amendments to existing lease agreements, people who want something extra, and there is amendments, EUR 2.2 million. We had EUR 11.3 million of terminations, and we sold one building, which is EUR 1.8 million, and that makes the bridge to EUR 489 million. Meanwhile, that has gone up to EUR 496 million. We signed EUR 52.7 million in total of rental income signed and renewed during the H1 2026, roughly in line with our record year of last year. As Piet already said, the relettings of the vacant space achieved a 6% on average increase in rental price. That is over total our portfolio, and it is a lot of lease agreements.

Speaker #3: We signed €24 million of new leases. Meanwhile, that's gone up to €31 million. We have some indexations—€7.6 million. We also have amendments to existing lease agreements.

Speaker #3: People who want something extra and the amendments: €2.2 million. We had €11.3 million of terminations. And we sold one building, which is €1.8 million.

Speaker #3: And that makes the bridge to €489 million. Meanwhile, that's gone up to €496 million. We signed €52.7 million in total rental income signed and renewed during the first half of 2026.

Jan Van Geet: Meanwhile, that has gone up to EUR 496 million. We signed EUR 52.7 million in total of rental income signed and renewed during the H1 2026, roughly in line with our record year of last year. As Piet already said, the relettings of the vacant space achieved a 6% on average increase in rental price. That is over total our portfolio, and it is a lot of lease agreements.

Speaker #3: Roughly in line with our record year of last year. And, as I already said, as Piet already said, the relettings of the vacant space achieved a 6% on average increase in rental price.

Speaker #3: And that's over our total portfolio. And it's a lot of lease agreements. We have an 84% retention rate at the moment for those leases which come to an end.

Jan Van Geet: We have an 84% retention rate at the moment of those leases which come to an end and we need then to relet. 84% of the tenants stay. The new tenant, the amount is shifting back towards e-commerce. E-commerce has been very off the market since 2022 until last year. We had virtually no e-commerce deals. Now we see them coming back and really coming back big time. At the moment, as we speak, we have a number of really very large new e-commerce players which are going to sign up with us, so we are in final lease negotiations. I am very happy that I am going to be able to show you the Zalando building on our capital markets day, because I think it is a reflection of what is going to happen also with robotization and automatization. You will see the building is incredible.

Speaker #3: And we need them to relet. Eighty-four percent of the tenants stay. The new tenant demand is shifting back towards e-commerce. E-commerce has been very off the market since 2022 until last year.

Speaker #3: We had virtually no e-commerce deals. Now we see them coming back—and really coming back big time. At the moment, as we speak, we have a number of really very large new e-commerce players which are going to sign up with us.

Speaker #3: So we're in final lease negotiations, and I'm very happy that I am going to be able to show you the Zalando building on our Capital Markets Day, because I think it's a reflection of what is going to happen also with robotization and automatization.

Speaker #3: You will see the building is incredible. It's fully automated, and it's really impressive. I'm very glad to be able to show you that. Logistics is the largest part.

Jan Van Geet: It is fully automated, and it is really impressive. I am very glad to be able to show you that. Logistics is the largest part. You can see in the new lease agreements by segment, it is 51% of what we have signed. The e-commerce is growing again. It will grow a lot bigger in the H2 because these contracts with the e-commerce providers are really very big. We expect to sign some very large new leases. Light industrial has been 21.6%. For example, GE, who is as an example here, we also see quite some demand out of the defense sector, which is really picking up. The occupancy of our standing portfolio, it is 98%. Compared to the market where we think the average vacancy is around 5% to 6%, we are performing quite a bit better. We have now EUR 419 million of cash generative leases.

Speaker #3: You can see the new lease agreements by segment. It's 51% of what we have signed. E-commerce is growing again. It will grow a lot bigger in the second half because these contracts with the e-commerce providers are really very big.

Jan Van Geet: We expect to sign some very large new leases. Light industrial has been 21.6%. For example, GE, who is as an example here, we also see quite some demand out of the defense sector, which is really picking up. The occupancy of our standing portfolio, it is 98%. Compared to the market where we think the average vacancy is around 5% to 6%, we are performing quite a bit better. We have now EUR 419 million of cash generative leases.

Speaker #3: We expect to sign some very large new leases. Light industrial has been 21.6%. And, for example, GE—who is an example here—we also see quite some demand out of the defense sector, which is really picking up.

Speaker #3: And yeah, the occupancy of our standing portfolio, it's 98%. That's compared to the market, where we think the average vacancy is around 5 to 6%.

Speaker #3: We are performing quite a bit better. We now have €419 million of cash-generative leases. We have a land bank, as you know. I will come to the land bank later on.

Jan Van Geet: We have a land bank, as you know, I will come to the land bank later on, which is fully permitted, where we have all the permits in place which we can develop. We think some of them are now coming to maturity because we are demolishing inside, and there are some sale and leasebacks, and they are going to come to the end. If we develop all of that, we have a potential to grow our income-generating assets to roughly EUR 800 million per year. Piet likes to make bridges as always, so we started the year with 389.3 million of cash generative leases. We activated 30.6 million of new leases. So we handed over to the customer, and he started to pay rent. The cash generative leases, 419.9, EUR 420 million as at the end of June 2026.

Speaker #3: Which is fully permitted, where we have all the permits in place, which we can develop. And we think some of them are now coming to maturity because we are demolishing inside, and there are some sale and leasebacks, and they are going to come to the end.

Speaker #3: And so, if we develop all of that, we have the potential to grow our income-generating assets to roughly €800 million per year.

Speaker #3: And Piet likes to make bridges, as always. So we started the year with €389.3 million of cash-generative leases. We activated €30.6 million of new leases.

Speaker #3: So we handed over to the customer and he started to pay rent. So the cash-generative leases: €419.9 million, €420 million, as at the end of June 2026.

Speaker #3: We have €69 million of signed leases, which are under construction and which will be delivered in the next 12 to 18 months. And then the vacancy and the pipeline ERV.

Jan Van Geet: We have EUR 69 million of signed leases, which are under construction, and which will be delivered in the next 12 to 18 months. The vacancy and the pipeline ARV, so what we can still construct and what is not yet leased together, it is another EUR 310.6 million. That is future music, which you can see develop, and that would bring the total rental potential to roughly EUR 800 million. We have added, in the H1 2026, 8% of cash-generated rent. We have 17% from cash generative to committed annualized rent uptake. The growth potential is still 67%. I will go to the next slide. On the delivery side, the building you are seeing is in Split, and it is leased, fully let to Studenac and Atlantic Grupa. Both are very active. It is in Croatia.

Speaker #3: So what we can still construct and what is not yet leased—together, that's another €310.6 million. That's future music, which we can develop, and that would bring the total rental potential to roughly €800 million.

Speaker #3: We have added, in the first half of 2026, 8% of cash-generative rent. And we have 17% from cash-generative to committed annualized rent uptake, and so the growth potential is still 67%.

Speaker #3: I'll go to the next slide. On the delivery side, the building you are seeing is in splits, and it's leased—fully let to students.

Speaker #3: And Atlantis Group. Atlantic Group. Both are very active. It’s in Croatia. And we delivered 12 buildings—236,000 square meters of gross lettable area—which was completed in the first half of 2026. On the top right, you see our park in Alicante, Spain.

Jan Van Geet: We delivered 12 buildings, 236,000 square meters gross lettable area, which was completed in the H1 2026. On the right top, you see our park in Alicante, Spain, and then underneath of it, you see once more our park in Split, Croatia. It is EUR 17.1 million of annualized rental income, which it was spread over through 35 new contracts. It is 86% let at delivery. There are some smaller units which remain to be leased out. The sustainability credentials, which Martijn will talk about a little bit later, all of them are 100% BREEAM excellent or better, and 39% of the deliveries which we did in the first half year are even BREEAM outstanding. The deliveries were mostly logistic activities. So we have some examples of customers which you can see there. ID Logistics, Spain, we have a little bit everywhere around the group.

Speaker #3: And then underneath of it, you see once more our parking split, Croatia. It's €17.1 million of annualized rental income, which is spread over 35 new contracts.

Speaker #3: It's 86% let at delivery. There are some smaller units which remain to be leased out. And the sustainability credentials, which Martijn will talk about a little bit later— all of them are 100% BREEAM Excellent.

Speaker #3: Or better. And 39% of the deliveries, which we did in the first half-year, are even BREEAM Outstanding. Yeah. The deliveries were mostly logistic activities.

Speaker #3: So we have some examples of customers, which you can see there. ID Logistics, Spain—we have a little bit everywhere around the group. And 76% of what we delivered was logistics, and e-commerce is growing and I think it's going to become really a big driver again in the next years to come.

Jan Van Geet: 76% of what we delivered was logistics, and e-commerce is growing. I think it is going to become really a big driver again in the next years to come. You can also see in the bottom the two pictures of one of our VGP Park in Vejle, Denmark, and then of our new VGP Park Sibiu in Romania, where we are leasing out our last units. All the H1 deliveries are certified sustainable, and of which them 39% are BREEAM outstanding. Then you can see for the rest of the portfolio, virtually everything is now certified, and you can see the split down, BREEAM outstanding and BREEAM excellent. Together, it is almost 70% of our portfolio characteristics a little bit of our standing portfolio.

Speaker #3: You can also see at the bottom the two pictures: one of our VGP Park in Vele, Denmark, and then of our new VGP Park CBU in Romania, where we are leasing out our last units.

Speaker #3: All the first half year deliveries are certified sustainable. And of which them 39% are BREEAM outstanding. And then you can see for the rest of the portfolio, I'll virtually everything is now is now certified.

Speaker #3: And you can see the split down. BREEAM Outstanding and BREEAM Excellent together make up almost 70% of our portfolio. These are some characteristics of our standing portfolio.

Speaker #3: So, the average building age—we've been growing a lot, as we've shown you, that we have grown our leasing income by 7.6 times over the last 10 years.

Jan Van Geet: The average building age, we have been growing a lot, as we have shown you that we have done our leasing income times 7.6 over the last 10 years, so we have built a lot over the last 10 years also. The average building age is 5.1 years. 74% of our buildings is younger than 10 years, and it is younger than 2 years, even 20%. It is a very young portfolio, very up-to-date, very well certified. 24,000 square meters is our average building size, and we have a lot of large facilities, and we think that large facilities are going to remain very much coming on, especially with automatization and robotization. We still think that it is going to be large facilities.

Speaker #3: So, we've built a lot over the last 10 years also. So, the average building age is 5.1 years. Seventy-four percent of our buildings are younger than 10 years.

Speaker #3: And if it's younger than two years, it's even 20%. So, it's a very young portfolio, very up-to-date, very well certified. Twenty-four thousand square meters is our average building size.

Speaker #3: And we have a lot of large facilities. And we think that large facilities are going to remain very much in demand, especially with automatization and robotization.

Speaker #3: We still think that it's going to be large facilities. And then, within these €800 million, if we develop them all, we will have a completed portfolio of roughly 12 million square meters.

Jan Van Geet: Then we have inside, these EUR 800 million, if we develop them all, then we will have a completed portfolio of 12 million square meters, roughly, of which now the standing assets are 6.6 million square meters. We have 1.1 million under construction, and we have a land bank in which we can still develop quite a lot of square meters. Quite still 4.3 million square meters, roughly on our standing land bank, which is constantly evolving as we are looking at new opportunities. On the development side, the park you are seeing on this picture is our VGP Park in Nijmegen, where last year we virtually let out everything. The building you are seeing down here is immediately adjacent to the highway. It is the last building in the park that is leased to Protempo.

Speaker #3: Of which now the standing assets are 6.6 million square meters. We have 1.1 million under construction, and we have a land bank on which we can still develop quite a lot of square meters.

Speaker #3: Quite still, 4.3 million square meters, roughly, on our ascending land bank, which is constantly evolving as we are looking at new opportunities. On the development side, the park you are seeing in this picture is our VGP Park in Nijmegen, where last year we virtually let out everything.

Speaker #3: The building you are seeing down here is immediately adjacent to the highway. It's the last building in the park. That's leased to ProTempo. In the back, we are building a very big, also very automated thing for a closing retailer.

Jan Van Geet: In the back, we are building a very big, also, with a very automated, thing for a clothing retailer. I cannot disclose the name, unfortunately. It is a very big park also. We have 160,000 square meters, of which is now 120,000 square meters under construction, plus the already existing buildings. The park is quite substantial in Nijmegen. We are very happy with it. It is performing very well. It is a nice contribution to our profit. We have 44 buildings under construction, which represent EUR 90.6 million of annual rental income once fully let and built. I have already told you a lot of times that I am a very big believer in that we should really try and help the re-industrialization of Europe.

Speaker #3: I can't disclose the name, unfortunately. It's a very big park also. We have 160,000 square meters, of which 120,000 square meters are now under construction.

Speaker #3: Plus the already existing buildings, so the park is quite substantial in Nijmegen. We're very happy with it. It's performing very well. It made a nice contribution to our profit.

Speaker #3: We have 44 buildings under construction, which represent €90.6 million of annual rental income, once fully let and built. And I have already told you a lot of times that I'm a very big believer in that we should really try and help the reindustrialization of Europe.

Speaker #3: On the right top side, you see a very nice example of Building D in our VGP Park in Munich, where we have Isar Aerospace.

Jan Van Geet: On the right top side, you see a very nice example of the Building D in our VGP Park in Munich, where we have Isar Aerospace, our European answer to SpaceX, I hope, upcoming. They really did a lot of capital rounds and are now very much supported, and we are very proud to have them. We are going to deliver that building now in September to them. It is virtually ready. So they are making rockets inside. Then underneath, you see the building of the very big clothing retailer, which we are constructing in Nijmegen. It is 74% pre-let, our development pipeline. We are going to remain very careful over the H2 also with our pre-let levels. Not too much speculative building, so we will remain at the same levels or a bit better. It is very well spread across our geographical footprint at the moment.

Speaker #3: Our European answer to SpaceX, I hope. Recently, they did a lot of capital rounds and are now very much supported. And we're very proud to have them.

Speaker #3: And we are going to deliver that building now in September to them. It's virtually ready, so they are making rockets inside. And then, underneath, you see the building of the very big clothing retailer, which we are constructing in Nijmegen.

Speaker #3: It's 74% pre-let. In our development pipeline, we're going to remain very careful over the second half of the year, also with our pre-let levels—not too much speculative building.

Speaker #3: So, we will remain at the same levels, or a bit better. And it's very well spread across our geographical footprint at the moment. In every country where we are active, we have constructions ongoing.

Jan Van Geet: In every country where we are active, we have constructions ongoing. Almost ongoing. There is only 2 countries where we are going to start up normally in the H2 of the year. All the rest, in 14 countries, we have constructions ongoing. The largest park under construction are Nijmegen, our Rüsselsheim area, Rouen, and Mulhouse. Rouen is meanwhile also fully let. It is complete. We are constructing the last 2 buildings. On our land bank, the picture you are seeing is one of our most iconic parks. It is in Nuremberg. Nuremberg was an office site which we bought from Siemens. They are going out later this year. We are finalizing a very large lease agreement, which we hope to sign October, November this year with a very big e-commerce retailer. It is right adjacent to the ring road. It cannot be a better location.

Speaker #3: So, almost ongoing. There are only two countries where we are going to start up. Normally, in the second half of the year, all the rest—in 14 countries—we have constructions ongoing.

Speaker #3: And the largest park under construction are Nijmegen, our Rüsselsheim area, Rouen, and Mulhouse. Rouen is meanwhile also fully let. It's complete. We are constructing the last two buildings.

Speaker #3: On our land bank, the picture you are seeing is one of our most iconic parks. It's in Nürnberg. Nürnberg was an office site which we bought from Siemens.

Speaker #3: They are going out later this year, and we are finalizing a very large lease agreement, which we hope to sign in October or November this year with a very big e-commerce retailer.

Speaker #3: It's right adjacent to the ring road. It can't be a better location. And we went with them to the mayor of Nürnberg, and the mayor of Nürnberg and the political side already approved, which is always an advantage if you have a backup.

Jan Van Geet: We went with them to the mayor of Nuremberg, and the mayor of Nuremberg and the political side already approved, which is always an advantage if you have a backup, for which we are very grateful from the politicians to implement this thing at our site in Nuremberg, and it is going to be a very long lease agreement. That will be a very nice thing to develop. The land bank is now 10.4 million square meter owned and committed. We started the year with 7.1 million square meters. We acquired 1.2 million square meters. We deployed 600,000. We sold nothing. We own at the end of June, 7.7 million square meters. Then we have committed, as you know, we always buy our land subject to receiving the permits through which we can use it for its intended purpose.

Speaker #3: For which we're very grateful to the politicians for implementing this at our site in Nürnberg. And it's going to be a very long lease agreement.

Speaker #3: So that will be a very nice thing to develop. The land bank is now 10.4 million square meters, all 10 committed. We started the year with 7.1 million square meters.

Speaker #3: We acquired 1.2 million square meters. We deployed 600,000. We sold nothing. So we own, at the end of June, 7.7 million square meters. And then we have committed—as you know, we always buy our land subject to receiving the permit through which we can use it for its intended purpose.

Speaker #3: So, once we obtain these permits, we will also buy the 2.7 million of committed square meters, which then brings it to 10.4 million square meters of land which we own or have a commitment on, which is binding.

Jan Van Geet: Once we will obtain these permits, we will also buy the 2.7 million of committed square meters, which then brings it to 10.4 million square meter of land, which we own or have a commitment on, which is binding. Then we are under option at the moment. We are looking at another 1.4 million square meters. We are very careful in trying to locate really the top quality assets in the market at reasonable prices. Our land bank is very well spread across the countries. As I said, we are a truly pan-European group. We have been building very carefully at this. You can see the biggest country is also the biggest land bank. Of course, in square meters, the land banks can be varying.

Speaker #3: And then, we are under option at the moment. We are looking at another 1.4 million square meters. We're very careful in trying to locate really the top-quality assets in the market at reasonable prices.

Speaker #3: Our land bank is very well spread across the countries. As I said, we are a truly pan-European group. We've been building very carefully at this.

Speaker #3: You can see the biggest country is also the biggest land bank. Of course, in square meters, the land banks can be varying. For example, Serbia has a very big land bank.

Jan Van Geet: For example, Serbia has a very big land bank, but in euros it is small because we only paid a very small price compared to the land bank and the values of land in other countries. We are constantly looking at expanding it, and CEE is 44% of the land bank today. Western Europe is 56% of the land bank, but that varies every time again when you look at it. Maybe just a small word on some of our most iconic parks, because some of them are now coming really to maturity. Some of them have been a sale and leaseback, like the Rüsselsheim facility or the Nuremberg facility. In Rüsselsheim, we have the grEEn-campus under construction with Opel. It is a very large construction site, and the Opel facility, it was a production site of cars since 1864.

Speaker #3: But in euros, it's small because we only paid a very small price compared to the land bank and the values of land in other countries.

Speaker #3: But we are constantly looking at expanding it. And CEE is 44% of the land bank today. Western Europe is 56% of the land bank.

Speaker #3: But that varies every time. Again, when you look at it. Maybe just a small word on some of our most iconic parks, because they have now come—they are now coming, some of them are now coming really to maturity.

Speaker #3: So, some of them have been a sale and leaseback, like the Rüsselsheim facility or the Nürnberg facility. In Rüsselsheim, we have the green campus under construction with Opel.

Speaker #3: It's a very large construction site. And the Opel facility was a production site for cars since 1864. They have grown over time.

Jan Van Geet: They have grown over the time, and they have a very big electrical connection. We, being a partner of Opel and making for them also the grEEn-campus, we have been able to secure quite a substantial amount of electric capacity directly from the grid, and have a nice view on more capacity coming on later in a couple of years. Hence, that is also why we want to develop our first more modest data center development in Rüsselsheim, but I will disclose the details of that only on our capital market days. You have to come, otherwise you won't know. Vélizy has now been completely demolished and decontaminated, and we are starting construction activity in October this year, and the first building will be completely pre-let. We are working on the last pages of negotiation on the lease agreement.

Speaker #3: And they have a very big electrical connection. We, being a partner of Opel and making for them also the green campus, have been able to secure quite a substantial amount of electric capacity directly from the grid and have a nice view on more capacity coming on later in a couple of years.

Speaker #3: Hence, that's also why we want to develop our first, more modest data center development in Rüsselsheim. But I will disclose the details of that only on our Capital Market Days.

Speaker #3: You have to come, otherwise you won't know. And Vélizy has now been completely demolished and decontaminated, and we are starting construction activity in October.

Speaker #3: This year. And it will be—the first building will be completely pre-let. We are working on the last pages of negotiation on the lease agreement.

Speaker #3: The same goes for Vila Nova de Gaia in Porto, where we are also in final negotiations with a very big industrial group to sign the first building.

Jan Van Geet: The same goes for Vila Nova de Gaia in Porto, where we also are in final negotiations with a very big industrial group to sign the first building. We have our park in Hagen, which is also the same story. It is a very big paper mill, it used to be. A lot of electric capacity, so we have already ordered a very large battery storage thing to be placed there, and we are in negotiations again with two very large tenants for the whole site. So we hope to be able to bring you at the year-end, the two names of the people who are going to lease out, both retailers in this park in Hagen. Hagen is right next to Dortmund in the Ruhr area, a really nice location. Nuremberg, I already explained.

Speaker #3: We have our park in Hagen, which is also the same story. It's a very big paper mill. It used to have a lot of electric capacity.

Speaker #3: So, we have already ordered a very large battery storage unit to be placed there, and we are in negotiations again with two very large tenants for the whole site.

Speaker #3: So we hope to be able to bring you, at the year end, the two names of the people who are going to lease out both retailers in this park in Hagen.

Speaker #3: Hagen is right next to Dortmund in the Ruhrgebiet—a really nice location. Nürnberg I already explained. And in Reggio Emilia, Gavassa, we already signed the lease agreement with Salvini d'Albene.

Jan Van Geet: In Reggio Emilia, Gavassa, we already signed the lease agreement with Savino Del Bene, and the big building at the right side, which you are looking at, that is also under lease negotiation at the moment with a very large retailer. So fingers crossed, touch wood, but we have really a lot of activity in the pipeline. I will hand over renewable energy topics to Martijn, our specialist in that case. Martijn, go ahead.

Speaker #3: And the big building at the right side, which you're looking at, that is also under lease negotiation at the moment with a very large retailer.

Speaker #3: So, fingers crossed, touch wood. But we have really a lot of activity in the pipeline. I will hand over the renewable energy topics to Martin, our specialist in the case.

Speaker #3: Martin, go ahead.

Martijn Giezen: Thank you, Jan, and good morning, everybody. On the renewable energy, the story starts to stand more and more on two legs now. We have always presented the photovoltaic leg as obviously being the most important constituent, and in terms of revenues, that is still the case. Battery starts to become more of an important growth prospect every reporting period. Starting with the photovoltaic, there we have really been able to catch up on the rollout of our existing portfolio. You see that we now have 284 projects in total on the platform. If you compare that to the number of buildings that we have, which is 319, you see that we have really been able to catch up mostly on the rollout of our existing portfolio. So also in terms of growth, this will start to become more and more aligned with the growth of our overall portfolio.

Martijn Vlutters: Thank you, Jan, and good morning, everybody. On the renewable energy, the story starts to stand more and more on two legs now. We have always presented the photovoltaic leg as obviously being the most important constituent, and in terms of revenues, that is still the case. Battery starts to become more of an important growth prospect every reporting period. Starting with the photovoltaic, there we have really been able to catch up on the rollout of our existing portfolio. You see that we now have 284 projects in total on the platform. If you compare that to the number of buildings that we have, which is 319, you see that we have really been able to catch up mostly on the rollout of our existing portfolio. So also in terms of growth, this will start to become more and more aligned with the growth of our overall portfolio.

Speaker #2: Thank you, Jan. And good morning, everybody. On the renewable energy, the story starts to stand more and more on two legs now. We've always presented the photovoltaic leg as obviously being the most important constituent, and in terms of revenues, that is still the case.

Speaker #2: Battery starts to become more of an important growth prospect every reporting period. Starting with the photovoltaic there, we've really been able to catch up on the rollout of our existing portfolio.

Speaker #2: You see that we now have 284 projects in total on the platform. If you compare that to the number of buildings that we have, which is 319, you see that we've really been able to catch up, mostly on the rollout of our existing portfolio.

Speaker #2: So, also in terms of growth, this will start to become more and more aligned with the growth of our overall portfolio. Obviously, we will continue to build photovoltaic on our new construction projects.

Martijn Giezen: As obviously we will continue to build photovoltaic on our new construction projects, but there is less of a catch-up to do. If you look at the gross renewable income, Piet already touched on it. If you look at the performance of the portfolio and compare it to the portfolio photovoltaic that was operational at the beginning of the year, which was around EUR 105 million worth of investment, the yield is very similar as it was in 2025 and in 2024. If you annualize that gets to around EUR 13.5 million for the full year because the H2 is always a little bit less productive, in terms of sunny hours. But yeah, we will also work on adding additional platform through the H2. On the battery projects, we've been able to connect the first projects in the H1.

Martijn Vlutters: As obviously we will continue to build photovoltaic on our new construction projects, but there is less of a catch-up to do. If you look at the gross renewable income, Piet already touched on it. If you look at the performance of the portfolio and compare it to the portfolio photovoltaic that was operational at the beginning of the year, which was around EUR 105 million worth of investment, the yield is very similar as it was in 2025 and in 2024. If you annualize that gets to around EUR 13.5 million for the full year because the H2 is always a little bit less productive, in terms of sunny hours. But yeah, we will also work on adding additional platform through the H2. On the battery projects, we've been able to connect the first projects in the H1.

Speaker #2: But there is less of a catch up to do. If you look at the gross renewable income Pete already touched on it. If you look at the performance of the portfolio and compare it to the portfolio photovoltaic that was operational at the beginning of the year, which was around 105 million euros worth of investments, the yield is very similar as was it was in 2025 and in 2024.

Speaker #2: And if you annualize that, that gets to around 13.5 million for the full year, because the second half is always a little bit less productive in terms of sunny hours.

Speaker #2: But yeah, we will also work on adding additional platforms through the second half. Then on the battery projects, we've been able to connect the first projects in the first half.

Martijn Giezen: These need to be approved by the local grid operators, et cetera, so it takes some time before they start generating revenues. But we anticipate that these will start in the H2 to start meaningfully contribute. If you look at the total investments, then the total CapEx that is either spent or committed, which is on the middle of the bullet points, is EUR 170 million now. Of that, there is already over EUR 30 million that is related to BESS projects. As I said, it really starts to become a meaningful contributor to the investments, and we will expect to see that in the top and bottom line in the coming periods as well. We'll talk a little bit more about the BESS rollout at the Capital Markets Day. With that, I think I'll hand it over to Jan for the joint ventures.

Martijn Vlutters: These need to be approved by the local grid operators, et cetera, so it takes some time before they start generating revenues. But we anticipate that these will start in the H2 to start meaningfully contribute. If you look at the total investments, then the total CapEx that is either spent or committed, which is on the middle of the bullet points, is EUR 170 million now. Of that, there is already over EUR 30 million that is related to BESS projects. As I said, it really starts to become a meaningful contributor to the investments, and we will expect to see that in the top and bottom line in the coming periods as well. We'll talk a little bit more about the BESS rollout at the Capital Markets Day. With that, I think I'll hand it over to Jan for the joint ventures.

Speaker #2: These need to be approved by the local grid operators, et cetera. So it takes some time before they start generating revenues. But we anticipate that these will start in the second half to start meaningfully contributing.

Speaker #2: And if you look at the total investments, then the total capex that is either spent or committed, which is in the middle of the bullet points, is €170 million now.

Speaker #2: Of that, there is already over €30 million that is related to best projects. So it is, as I said, it really starts to become a meaningful contributor to the investments.

Speaker #2: And we will expect to see that in the top and bottom line in the coming periods as well. We'll talk a little bit more about the BES rollout at the Capital Markets Day.

Speaker #2: But with that, I think I'll hand it over to Jan for the joint ventures.

Speaker #1: Yes. The building you are seeing on this slide is a small business unit in České Budějovice, which is completely let. Also, Vélizy is more of a small business unit.

Jan Van Geet: Yes. The building you are seeing on this slide is a small business unit in Prague, which is completely let. Also, Vélizy is more of a small business unit, NCBU now, which is a new business line also. We achieve higher rents and it's a bit more volatile in the occupancy, but it's a very nice segment in the market, and it's C-Growth flagship. We are also trying to do more and more of them where we are very urban, so it's part of our business line now. Here's an update on the joint venture. So, we have a running joint venture, which is SAGA One, which is now for already 60% deployed. In 2027, it will be deployed more than 90% with what we have foreseen to transact, which is two years earlier than expected, and that's why we have been negotiating on a second joint venture.

Speaker #1: And CBU now, which is a new business line also, we achieve higher rents, and it's a bit more volatile in the occupancy. But it's a very nice segment in the market.

Speaker #1: And it's Cigrós' flagship. We are also trying to do more and more of them. We are very urban, so it's part of our business line now.

Speaker #1: This is an update on the joint venture. We have a running joint venture, which is Saga One, and it is already 60% deployed.

Speaker #1: It will be in 2027. It will be deployed more than 90% with what we have foreseen to transact, which is two years earlier than expected.

Speaker #1: And that's why we have been negotiating on a second joint venture. The memorandum of understanding is signed. The launch is foreseen in 2027. The joint venture structure is virtually a copy of the one which we had, with RM acting as manager for the other 50% stake.

Jan Van Geet: The memorandum of understanding is signed. The launch is foreseen in 2027. The joint venture structure is virtually a copy of the one which we had, with RM acting as manager for the other 50% stake. The focus is on Western Europe, and that's very complementary to our East Capital's from Central and Eastern European mandate, which is also running at the moment. It targets, the new one targets at least EUR 600 million of equity. So, it's going to take us to at least EUR 1.5 billion, but we hope to do a lot more in the second SAGA joint venture is EUR 600 million minimum, is the minimum equity ticket which we are focusing on.

Speaker #1: The focus is on Western Europe, and that's very complementary to our East Capitals Fund Central and Eastern European mandate, which is also running at the moment.

Speaker #1: And it targets the new one targets at least 600 million of equity. So that is at least it's going to take us to at least one and a half billion.

Speaker #1: But we hope to do a lot more in the second SAGA joint venture. It is €600 million minimum—we are focusing on that as the minimum equity ticket.

Speaker #1: And the capital recycling—because we now have so many income-generating assets on our own balance sheet, which are coming to maturity, especially in the beginning of next year, and then throughout 2027, 2028, and 2029.

Jan Van Geet: The capital recycling, because we have now so much income-generating assets on our own balance sheets, which are coming to maturity, especially in the beginning of next year, and then throughout 2027, 2028, and 2029, we expect it to pick up in the second half of this year, but then accelerate really a lot into 2027 and the years coming. For a summary and outlook, just once more, what you see in front of you is our grEEn-campus. You will see it is the building on your left side, which is an office building, high-end office building, completely passive. When you come to the Capital Markets Day, you will notice it is only 10 minutes away from Frankfurt Airport. It is really very close to Frankfurt. This is our cooperation with Opel, which is going very well. Opel is very committed to the site.

Speaker #1: We expect it to pick up in the second half of this year, but then accelerate really a lot into 2027 and the years coming.

Speaker #1: Yeah. For a summary and outlook, just once more, what you see in front of you is our Green Campus. You will see it's the building on your left side, which is an office building, a high-end office building, completely passive.

Speaker #1: It's 10 minutes away from—you will, when you come to the Capital Markets Day, you will notice it's only 10 minutes away from Frankfurt Airport.

Speaker #1: It's really very close to Frankfurt, and this is our cooperation with Opel, which is going very well. Opel is very committed to the site.

Speaker #1: Also, Stellantis is very committed to the site, to remain there. Big parts of the other sites around it are going to be sold separately.

Jan Van Geet: Stellantis is also very committed to the site to remain there. Big parts of the other sites around it are going to be sold separately, but that is to other users than we do. It is retail and/or housing, which VGP doesn't want to do. We focus on the industrial part, which we have bought out, and we have an exclusivity for the whole Opel site on data center development, which we negotiated when we bought the site of ours. The outlook, we want to develop further on towards our 12-million square meter target without putting a fixed date on it when we want to achieve it. Because we want to maintain a very disciplined approach to the development, we prioritize pre-let levels. I don't want to construct millions of square meters of vacancy that brings nothing, and certainly not when money is getting a bit more expensive.

Speaker #1: But that's to other users than we do. It's retail and/or housing, which VGP doesn't want to do. We focus on the industrial part, which we have bought out.

Speaker #1: And we have an exclusivity for the whole Opel site on data center development, which we negotiated when we bought the site. So the outlook is that we want to develop further toward our 12 million square meter target, without putting a fixed date on when we want to achieve it.

Speaker #1: But because we want to maintain a very disciplined approach to the development, we prioritize pre-let levels. I don't want to construct millions of square meters of vacancy that brings nothing.

Speaker #1: And certainly not when money is getting a bit more expensive. We are focusing very much on our development margin. As you have seen from what Piet showed you, we have very nice development margins.

Jan Van Geet: We are focusing very much on our development margin. As you have seen from what Piet showed you, that we have very nice development margins. The average yield on total cost is now 8.7%. That is including also our iconic developments in Germany, in France, in the more mature markets. We are feeling very confident that we have a nice margin. We are very confident, and that is the message that I wanted to give mostly, that we are securing very nice pre-lets on our new brownfield locations, which are now going to initiate development. The recurring income is for us very important. Its income base is expected to continue to expand, and it is accelerated by further growth in renewable energy. It looks that the battery projects which we have are very profitable, and we have some really very nice, big, several Battery Energy Storage Systems.

Speaker #1: The average yield on total cost is now 8.7%. So that's including also our iconic developments in Germany, in France, in the more mature market.

Speaker #1: So we're feeling very confident that we have a nice margin, and we are very confident. That's the message that I wanted to give, mostly.

Speaker #1: That we are securing very nice pre-lets on our new brownfield locations, which are now going to initiate development. The recurring income is, for us, very important.

Speaker #1: Its income base is expected to continue to expand, and it's accelerated by further growth in renewable energy. It looks like the battery projects which we have are very profitable.

Speaker #1: And we have some really very nice, big, several battery energy storage systems. And then we are going to, of course, grow the joint ventures.

Jan Van Geet: We are going to, of course, grow the joint ventures, and that will also lead to increased recurring joint venture management fees besides our share in the rental income, which we get every year. The 12-million square meter equates to EUR 800 million of total rental income per year, which we want to grow to now. We are very focused on capital recycling. As I already said, it is expected to accelerate in 2027 with the launch of new JV initiatives. That is as well as the start-up of the development platform for data centers, for which we also have signed a memorandum of understanding with a very reputable company.

Speaker #1: And that will also lead to increased recurrent joint venture management fees, besides our share in the rental income, which we get every year. Yeah.

Speaker #1: And so, the 12 million square meters equates to €800 million of total rental income per year, which we want to grow. And then, we're very focused on capital recycling.

Speaker #1: As I already said, it's expected to accelerate in 2027 with the launch of new JV initiatives, as well as the startup of the development platform for data centers, for which we have also signed a memorandum of understanding with a very reputable company.

Jan Van Geet: We acknowledge that it is not easy to develop a data center, and we acknowledge that we want to avoid having to go a long way to build up reputational skills and a good name in the market. That is why we have chosen to sign a memorandum of understanding with somebody who has a very good standing reputation in the market and a very nice track record, and who will bring its technical expertise and know-how to our JV. We will do the same from our side. We will bring in our land plots, which are now already feasible, which is virtually 2, Paderborn and Rüsselsheim, which we have now in the last straight line, I would call it, in order to be able to start a data center development, which is slower than you would expect.

Speaker #1: We acknowledge that it's not easy to develop a data center, and we acknowledge that you need—we want to avoid having to go a long way to build up reputational skills and a good name in the market.

Speaker #1: And that's why we have chosen to sign a memorandum of understanding with somebody who has a very good standing, reputation in the market, and a very nice track record.

Speaker #1: And who will bring its technical expertise and know-how to our JV. And we will do the same from our side; we will bring in our land plots, which are now already feasible.

Speaker #1: Which is virtually two, Paderno and Rüsselsheim, which we have now in the last straight line, I would call it, in order to be able to start a data center development.

Speaker #1: Which is slower than you would expect, so I will tell a lot more about it. And which leads to another €3 billion of gross asset value, not taking into account the data center rollout.

Jan Van Geet: I will tell a lot more about it, which leads to another EUR 3 billion of gross asset value, not taking into account the data center rollout of transactions which we have at the moment under an MOU. This is the slide made by AI as it should be. "When Europe needs more cloud, we keep it grounded," it is called. It is a very hearty invitation to our Capital Markets Day. I will be there, and I will join you on 3 September 2026. Just a small word on it. The idea is that we first go to take a visit to our Gießen site, which is roughly 70 kilometers north of Frankfurt. We will foresee all the necessary transportation. We will get a guided tour through the Zalando facility by the management, by the people who manage the Zalando operations.

Speaker #1: Of transactions which we have at the moment under MO, this is the slide made by AI as it should be. When Europe needs more cloud, we keep it grounded.

Speaker #1: It's called. It's a very hearty invitation to our Capital Markets Day. I will be there, and I will join you at the start of September 2026.

Speaker #1: Just a small word on it. The idea is that we first go to take a visit to our Gießen site, which is roughly 70 kilometers north of Frankfurt.

Speaker #1: We will arrange all the necessary transportation. We will get a guided tour through the Zalando facility by the management, by the people who manage the Zalando operations.

Speaker #1: It's a very fine example of a building in which there is an incredible amount of automatization. Actually, Zalando made a lot bigger investment inside of the building than we in the building itself.

Jan Van Geet: It is a very fine example of a building in which there is an incredible amount of automatization. Actually, Zalando made a lot bigger investment inside of the building than we in the building itself. I think it is worthwhile seeing it because it is the future. It is how things should go. It is so much more efficient in operations than the other buildings which were before for the same purpose. Then afterwards, we will take you to the Rüsselsheim site. It is our largest brownfield to date, which we bought in the heart of Frankfurt. It is 10 minutes away from Frankfurt Airport. We will show you the grEEn-campus, which we are developing for Opel.

Speaker #1: I think it's worthwhile seeing it, because it's the future. It's how things should go. It's so much more efficient in operations than the other buildings.

Speaker #1: Which were before for the same purpose. And then afterwards, we will take you to the Rüsselsheim site. It's our largest brownfield to date, which we bought in the heart of Frankfurt.

Speaker #1: It's 10 minutes away from Frankfurt Airport. We will show you the green campus, which we are developing for Opel. And we will explain to you also.

Jan Van Geet: We will explain you also, because the grEEn-campus is only 10 hectares out of 71 hectares, what we are going to do with all the other potential, which is there, how it is phased, what is the plans. I will lift a little bit more the veil on what we have been hiding so far because we wanted to be absolutely sure that we can deliver. If you want to know more about it, please come to the Capital Markets Day. Do not ask me any questions today. I won't answer them. I want to keep it for that day. Thank you very much for listening to us, and we will be happy to answer any questions which we can answer on.

Speaker #1: Because the green campus is only 10 hectares out of 71 hectares, what are we going to do with all the other potential that is there? How is it faced? What are the plans? I will lift a little bit more the veil on what we have been hiding so far.

Speaker #1: Because we wanted to be absolutely sure that we can deliver. So, if you want to know more about it, please come to the Capital Markets Day.

Speaker #1: Don't ask me any questions today. I won't answer them. I want to keep it for that day. Thank you very much for listening to us.

Speaker #1: And we'll be happy to answer any questions that we can answer.

Speaker #2: Thank you, Jan. Operator, we can open the slide.

Martijn Giezen: Thank you, Jan. Operator, we can open the lines for questions.

Martijn Vlutters: Thank you, Jan. Operator, we can open the lines for questions.

Operator: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. For timing consideration, please stick to one question per analyst. We will now start with the first question. The next question comes from Vivien Maquet from Degroof Petercam. Please go ahead.

Speaker #3: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad.

Speaker #3: For timing considerations, please stick to one question per analyst. We will now start with the first question. The next question comes from Vivian McKay from Degroof Petercam.

Speaker #3: Please go ahead.

Speaker #4: Yes, good morning. Thanks for taking my question. I will lead myself to one. As requested, it will be on the reversion capture on the reletting.

Vivien Maquet: Yes. Good morning, and thanks for taking my question. I will limit myself to one as requested. It will be on the reversion capture on the reletting. If I compare the 6% that you capture in H1 to the 14% in 2025, and even the 18.5% for the first 4 months of 2026, did you manage to capture the entire reversion, or did you accept some concession in the course of Q2 to secure the lettings? In addition to that, can you provide the number of the reversion potential that you have on the standing portfolio? Thank you.

Speaker #4: If I compare the 6% that you captured in H1 to the 14% in 2025, and even the 18.5% over the first four months of 2026, I'm wondering: did you manage to capture the entire reversion, or did you accept some concession in the course of Q2 to secure the letting?

Speaker #4: In addition to that, can you provide the number of the reversion potential that you have on the spending portfolio? Thank you.

Speaker #2: Yes. Vivian, thank you for your question. It's a difficult one to answer because we have our contracts are all they all have renewable clauses inside through which our tenant can opt to just prolong the lease agreement.

Jan Van Geet: Yes, Vivian, thank you for your question. It is a difficult one to answer because our contracts are all. They all have renewable clauses inside through which our tenants can opt to just prolong the lease agreement. So we can only take the uptake of a new lease agreement at the moment when a lease agreement really ends, and we need to re-lease it in the market. Otherwise, we have no, except for the UK, where this is totally standard that you have clauses inside where there is a market revision. We have no possibility, only when there is a reversion moment, which is when a lease agreement stops. I do not think you need to look so much at the 6.6% because it is depending very much on the mix of the buildings which we have to re-lease again.

Speaker #2: And so we can only take the uptake of a new lease agreement at the moment when a lease agreement really ends, and we need to release it in the market.

Speaker #2: Otherwise, we have none, except for the UK where it is totally standard that you have clauses inside where there is a market revision. We have no possibility.

Speaker #2: Only when there is a reversion moment, which is when a lease agreement stops. And I don't think you need to look so much at the 6.6%, because it's depending very much on the mix of the buildings which we have to release again.

Speaker #2: And in some of the markets, in some of the lease agreements, it's a bit more difficult to achieve a higher rent. And in some of the other, older lease agreements, we have very low leases compared to the actual market lease.

Jan Van Geet: In some of the markets, in some of the lease agreements, it is a bit more difficult to achieve a higher rent than in some of the others. Older lease agreements where we have very low leases compared to the actual market lease. It is a mix of maybe 20. No, it was, I think, yeah, 20 different lease agreements which we have been reletting, and sometimes it will be more, sometimes it will be less. But we still think, and I cannot quantify it today, we still think that we have a huge potential of uptake in our buildings. If you look at the average price per square meter of our buildings, it is EUR 1,250 per square meters, roughly, of the total value. That is compared to what we see around us, that is still very low.

Speaker #2: So it's a mix of maybe 20—no, it was, I think, yeah, 20 different lease agreements which we have been reletting. And sometimes it will be more.

Speaker #2: Sometimes it will be less. But we still think and I can't quantify it today. We still think that we have a huge potential of uptake in our buildings.

Speaker #2: If you look at the average price per square meter of our buildings, it's €1,250 per square meter, roughly, of the total value.

Speaker #2: And that's compared to what we see around us. That's still very low, so it means also that the underlying rent has the potential to grow a lot.

Jan Van Geet: It means also that the underlying rent has the potential to grow a lot. But I cannot at the spot here quantify it. I do not know if Piet can quantify it, but I think it is difficult also because all of these leases have different running times. We are on average still 7.7-year leased and 84% is retained. The people just until today, so the people just prolong. There is limited uptake when they just prolong. It is only at the moment when it is replaced. But I am afraid it is a question which is very difficult to answer upon, except for what I just said.

Speaker #2: But I can't, at the spot here, quantify it. I don't know if Piet can quantify it. But I think it's difficult also because all of these leases have different running times.

Speaker #2: And you know, we are on average still at a 7.7-year lease, and 84% is retained. So the people—just until today—so the people just prolong.

Speaker #2: So there is limited uptake when they just prolong. It's only at the moment when it is replaced. So I'm afraid it's a question which is very difficult to answer upon, except for what I just said.

Speaker #1: Yeah, I think you said everything.

Piet Van Geet: Yeah, I think you said everything.

Vivien Maquet: Yeah, I think you said everything.

Speaker #3: The next question comes from Marius Pastu from Bernstein. Please go ahead.

Operator: The next question comes from Marius Pascu from Bernstein. Please go ahead.

Operator: The next question comes from Marios Pastou from Bernstein. Please go ahead.

Speaker #4: Good morning. Thank you for the update and for taking my question. I did have something on data centers, but I'll save it for the Capital Markets Day.

Marius Pascu: Good morning. Thank you for the update, for taking my question. I did have something on data centers, but I will save it for the capital markets day. Can you just provide a bit of color on project deliveries and the quantum of development which is coming out from here? So based on the timeline you are currently looking at, what completions should we be tracking for 2026? If you then manage to get some of the various EVA-driven leases agreed over the H2, should we then expect a bit of a ramp-up in the level of development starts over the H2 compared to what you proposed today? Thank you.

Marios Pastou: Good morning. Thank you for the update, for taking my question. I did have something on data centers, but I will save it for the capital markets day. Can you just provide a bit of color on project deliveries and the quantum of development which is coming out from here? So based on the timeline you are currently looking at, what completions should we be tracking for 2026? If you then manage to get some of the various EVA-driven leases agreed over the H2, should we then expect a bit of a ramp-up in the level of development starts over the H2 compared to what you proposed today? Thank you.

Speaker #4: Could you just provide a bit of color on project deliveries and the quantum of development coming up here? So, kind of based on the timeline you're currently looking at, what completions should we be tracking for 2026?

Speaker #4: And if you then manage to get some of the various EMS-driven leases agreed over the second half, should we then expect a bit of a ramp-up in the level of development starts over the second half compared to what you reported today?

Speaker #4: Thank you.

Speaker #2: I will answer on the developments which we start. As I said, we're going to be very careful, and there are a lot of big projects in the pipeline.

Jan Van Geet: I will answer on the developments, which we start. As I said, we are going to be very careful and there is a lot of big projects in the pipeline. Most of them, some of them are going to be started in this year, and some of them are going to be started in the H1 of next year because they still need some fine-tuning and some permit adaptations. I am not quite sure what we are going to start up in the H2. It will depend very much on the market environment. But it will be somewhere in the line or more than what we did in the H1, I think. We have foreseen a lot more, but I am going to be prudent. So I am also prudent in what I am answering.

Speaker #2: Most of them—some of them are going to be started this year, and some of them are going to be started in the first half of next year, because they still need some fine-tuning.

Speaker #2: And some permit adaptations. So I'm not quite sure what we are going to start up in the second half of the year. It will depend very much on the market environment.

Speaker #2: But it will be somewhere in line with, or more than, what we did in the first half-year, I think. We foresee a lot more.

Speaker #2: But I'm going to be prudent, so I'm also prudent in what I'm answering. And it will depend a little bit on how fast we are able now to secure these lease agreements, which are under negotiation.

Jan Van Geet: It will depend a little bit on how fast we are able now to secure these lease agreements, which are under negotiation. Which we have our lease negotiations, we have them lined up in four different categories, of which the last two categories are, we call it DOI three and DOI four. DOI four is lease agreements, which we have currently under negotiation, where we have exchanged the lease with the people, and DOI three is where we have virtually an accepted heads of terms or commercial conditions, and we are still fine-tuning the technical specification of the building. These two together, they represent more than EUR 15 million of rental income, and we are convinced or we are very confident that we can sign quite a lot of them in the next two to three months.

Speaker #2: Which we have our lease negotiations. We have them lined up in four different categories. Of which the last two categories are we call it DOI3 and DOI4.

Speaker #2: DOI4 is lease agreements which we have currently under negotiation, where we have exchanged the lease with the people. And DOI3 is where we have virtually an accepted heads of terms or commercial conditions.

Speaker #2: And we are still fine-tuning the technical specification of the building. These two together, they represent more than €15 million of rental income. And we are convinced, or we are very confident, that we can sign quite a lot of them in the next two to three months.

Speaker #2: So by the next trading update, we should be able to tell you a little bit more on that. And then, on the delivery side, we have 1.1 million under construction.

Jan Van Geet: So by the next trading update, we should be able to tell you a little bit more on that. On the delivery side, we have 1.1 million under construction. Piet, you know how much we are going to?

Speaker #2: And Piet, you know how much we are going to.

Speaker #1: Yeah, I think it will be the same or higher than it was in the first half of this year. I think between 300,000 and 400,000 square meters would be a good estimate.

Piet Van Geet: Yeah, I think it will be same or higher than it was in the H1 of this year. I think between 300,000 and 400,000 square meters would be a good estimate. It depends a bit on the leasing activity and the finalizations of the building. So a bit more than in the H1, that would be my best estimate on this.

Speaker #1: It depends a bit on the leasing activity and the finalizations of the building. So, a bit more than in the first half—that would be my best estimate on this.

Marius Pascu: Great. Thank you very much.

Marios Pastou: Great. Thank you very much.

Speaker #4: Great. Thank you very much.

Speaker #1: You're welcome.

Piet Van Geet: You are welcome.

Operator: The next question comes from Suraj Goyal from Green Street. Please go ahead.

Speaker #3: The next question comes from Suraj Goyal from Green Street. Please go ahead.

Speaker #4: Good morning. Just one question. As you mentioned, for year '25, you were talking about the first closing with this capital, I think in 2026, or as was suggested.

Suraj Goyal: Morning. Just one question as you mentioned. So full year 2025, you were talking first closing with BEES Capital, I think in 2026 or that is what was suggested. Today it looks like it may be pushed to 2027. I just wanted to understand if there is potentially a shift in terms of invest appetite or their return requirements potentially linked to some softening in operating fundamentals in Central and Eastern Europe, or is it purely timing?

Speaker #4: And today it looks like maybe pushed to 2027. I just wanted to understand if there's potentially a shift in terms of investment appetite. Are there return requirements potentially linked to some softening in operating fundamentals in Central and Eastern Europe?

Speaker #4: Or is it purely timing?

Jan Van Geet: It is purely timing. We have started this process in March, April this year.

Speaker #2: It's purely timing. We have started this process in March, April this year, so it's normal that people need a bit of time to set up their things.

Jan Van Geet: It is normal that people need a bit of time to set up their things. It is a regulated fund business, so we cannot really answer on where they are with it because that is forbidden to do that. But the sounds we are hearing is that it goes that they have very positive feedback and that they are very confident to do something with us. I think it is just we are in August now. We need to do due diligence. They need to do due diligence. We need to do afterwards. We need to agree on the first seed portfolio. We need to do it. It is very unlikely that for the Eastern European part, we will be able to still close the transaction before the year-end. It will be more H1 of next year.

Speaker #2: It's a regulated fund business. So we can't really answer on where they are with it because that's forbidden to do that. But the sounds we are hearing is that it goes that they have very positive feedback.

Speaker #2: And that they are very confident to do something with us. I think it's just, we are in August now, and we need to do due diligence.

Speaker #2: We need to—they need to do a due diligence. We need to do it afterwards. We need to agree on the first seed portfolio. We need to do it.

Speaker #2: So, it's very unlikely that, for the Eastern European part, we will be able to still close a transaction before the year end. It will be more in the first half of next year.

Speaker #2: But in the Saga one, we're aiming for a transaction still in this year, with the second one, the second part of it, also in the first half of 2027.

Jan Van Geet: But in the Saga One, we are aiming for a transaction still in this year with the second one, second part of it also in H1 of 2027. For which we have identified the buildings, for which we have identified the scope, for which we roughly know what is going to be transacted and how much it will exactly be in H2 of this year or H1 of next year is depending a little bit on our tempo of completions and the number of lettings which we need to do on some of the buildings still. Was it 900 it was about, Wybo? I think. Okay.

Speaker #2: For which we have identified the buildings, for which we have identified the scope, for which we roughly know what is going to be transacted.

Speaker #2: And how much it will exactly be in the first, in the second half of this year, or the first half of next year? It's depending a little bit on our tempo of completions and the number of lettings which we need to do on some of the buildings still.

Speaker #2: It was annoying, Sandra. It was a point.

Speaker #1: No.

Speaker #2: OK.

Speaker #3: The next question comes from Steven Boomans from ABN AMRO Auto BHF. Please go ahead.

Operator: The next question comes from Steven Boumans from ABN AMRO-ODDO BHF. Please go ahead.

Operator: The next question comes from Steven Boumans from ABN AMRO - ODDO BHF. Please go ahead.

Steven Boumans: Hi. Good morning. Thank you for taking my questions. On leasing metrics, they seem a bit weak in H1, but what about H2? Where would you expect, for example, pre-letting levels, rent uplifts from lettings and committed annualized rental income to lend by year-end? Could we, for example, see uplift of those metrics in H2? Something like, I don't know, over 8% pre-lettings delivery and committed annualized rental income growth of 15% a year. Is that realistic?

Steven Boumans (ABN AMRO: Hi. Good morning. Thank you for taking my questions. On leasing metrics, they seem a bit weak in H1, but what about H2? Where would you expect, for example, pre-letting levels, rent uplifts from lettings and committed annualized rental income to lend by year-end? Could we, for example, see uplift of those metrics in H2? Something like, I don't know, over 8% pre-lettings delivery and committed annualized rental income growth of 15% a year. Is that realistic?

Speaker #4: Hi. Good morning. Thank you for taking my questions. So, on leasing metrics, they seem a bit weak in H1. But what about H2? Where would you expect, for example, pre-letting levels, rent uplifts from lettings, and committed annualized rental income to land by year end?

Speaker #4: So, could we, for example, see an uplift of those metrics in H2? Something like, I don't know, over 80% pre-lettings delivery and committed annualized rental income growth of 15% a year.

Speaker #4: Is that realistic?

Jan Van Geet: Steven, I don't have a crystal ball. I can't tell you. It also depends on what the market is going to do. But I think throughout the whole presentation, we have given quite some indications about the level of demand which we are seeing already in Q3. It has been picking up. Normally, it's very quiet in the months of July and August. Everybody is on holidays. Nevertheless, we managed to sign EUR 7.2 million of new rental agreements which have been finished. It's already at 496 now at the moment. We have quite some heads of terms which have been signed off, where the people have said, "We agree on your commercial terms," and where we're now in exchange of a lease agreement, which should be signed in H2.

Speaker #2: Steven, I don't have a crystal ball. I can't tell you. It also depends on what the market is going to do. But I think throughout the whole presentation, we have given quite a few indications about the level of demand that we are seeing.

Speaker #2: Already in the third quarter, it has been picking up. Normally, it's very quiet in the months of July and August—everybody is on holiday.

Speaker #2: Nevertheless, we managed to sign €7.2 million of new rental agreements, which have been finished. And so, it's already at 496 now at the moment.

Speaker #2: And we have quite a few heads of terms which have been signed off, where the people have said, "We agree on your commercial terms," and where we're now in exchange of a lease agreement, which should be signed in the second half of the year.

Speaker #2: So, and as I said, there are these very large transactions which we are trying to finalize now, especially in Germany, where we have quite some.

Jan Van Geet: As I said, there are these very large transactions which we are trying to finalize now, both on, especially in Germany, where we have quite some, but also in France and in Spain. We have some really very nice new ones. We are confident that we are going to have a strong letting in H2 2026. But how much it's going to be? I never want to stick to a number where you afterwards are going to say, "It's a lot more, it's a lot less." That's something which I also need to. It's also going to depend on what Trump is going to do and which bombs are going to fall, I think. We are doing our best to land all of this, and we are very confident that we will. But I can't glue a number on it.

Speaker #2: But also in France and in Spain, we have some really very nice new ones. So we are confident that we are going to have a strong letting in the second half of 2026.

Speaker #2: But how much it's going to be, I never—I never want to stick to a number where you afterwards are going to say it's a lot more.

Speaker #2: It's a lot less. That's something which I also need to—it's also going to depend on what Trump is going to do, and which bombs are going to fall, I think.

Speaker #2: So we are doing our best to land all of this, and we are very confident that we will. But I can't put a number on it.

Speaker #2: And maybe I can already tell a little bit more at the Capital Markets Day because it's still in two weeks from now, and we are really in very advanced negotiations on some of it.

Jan Van Geet: And maybe I can already tell a little bit more at the Capital Markets Day because it is still in 2 weeks from now, and we are really in very advanced negotiations on some of it. But that is, at the moment, the most I can tell you.

Speaker #2: But that is, at the moment, the most I can tell you.

Speaker #3: The next question comes from Thomas Rothhausler from Deutsche Bank. Please go ahead.

Operator: The next question comes from Thomas Rothaeusler from Deutsche Bank. Please go ahead.

Speaker #4: Hi, morning. Just a quick one on the second Saga TV. Could you indicate by when we should expect the first closings there?

Jan Van Geet: Hi. Morning. Just a quick one on the second SAGA JV. Could you indicate by when should we expect the first closings there? Hi, Thomas. I think H2 of next year. I think, or maybe Q3, but rather maybe H2 of next year. I think we will deploy, define due diligence by H1 of next year and then launch in H2. But we will first also complete. Okay. We will also complete first the SAGA joint venture one. It makes more sense to first complete that one before we start with another one. And that is, the portfolio is inside to do that, and that will be over multiple closings in this year and next year. And then I think immediately after, we will start with the SAGA two one.

Thomas Rothaeusler: Hi. Morning. Just a quick one on the second SAGA JV. Could you indicate by when should we expect the first closings there?

Piet Van Geet: Hi, Thomas. I think H2 of next year. I think, or maybe Q3, but rather maybe H2 of next year. I think we will deploy, define due diligence by H1 of next year and then launch in H2. But we will first also complete. Okay. We will also complete first the SAGA joint venture one. It makes more sense to first complete that one before we start with another one. And that is, the portfolio is inside to do that, and that will be over multiple closings in this year and next year. And then I think immediately after, we will start with the SAGA two one.

Speaker #2: Hi, Thomas. I think second half of next year—I think, or maybe Q3. But rather, maybe second half of next year. I think we will deploy, define due diligence, by the first half of next year.

Speaker #2: And then launch in the second half. But we will first also complete— we will also complete first the Saga joint venture one. Makes more sense to first complete that one before we start with another one.

Speaker #2: And that is a portfolio that is inside to do that. And that will be over multiple closings this year and next year. And then I think immediately after, we will start with the Saga 2.1.

Speaker #2: And just to make it complete, the Saga 1 deployment, which we still need to do, is roughly more than half a billion.

Jan Van Geet: Just to make it complete, the SAGA one deployment, which you still need to do, is roughly, is more than EUR 0.5 billion. So it is still quite sizable with the transactions which you need to do in the SAGA one portfolio. Okay, sir. Thank you.

Speaker #2: So, it's still quite sizable with the transactions which we need to do in the Saga One portfolio.

Speaker #4: OK.

Thomas Rothaeusler: Okay, sir.

Speaker #1: Thank you.

Jan Van Geet: Thank you.

Speaker #3: The next question comes from Peter Runboom from Van Lantje Kempen. Please go ahead.

Operator: The next question comes from Pieter Runboom from Van Lanschot Kempen. Please go ahead.

Operator: The next question comes from Pieter Runneboom from Van Lanschot Kempen. Please go ahead.

Speaker #4: Hi. Good morning. Thanks for taking my question. I have a question on the market dynamics. Which markets are you currently most enthusiastic about, and which one the least?

Pieter Runboom: Hi. Good morning. Thanks for taking my question. Got a question on the market dynamics. Which markets are you currently most enthusiastic about, and which ones the least?

Pieter Runneboom: Hi. Good morning. Thanks for taking my question. Got a question on the market dynamics. Which markets are you currently most enthusiastic about, and which ones the least?

Speaker #2: Hello, Peter, and welcome back. I'm truly European, so I'm quite enthusiastic about all the markets where we are active in. We see opportunities everywhere.

Jan Van Geet: Hello, Pieter, and welcome back.

Pieter Runboom: Thank you.

Pieter Runneboom: Thank you.

Jan Van Geet: I am a truly European, so I am quite enthusiastic about all the markets where we are active in. We see everywhere opportunities. If I have to pick out 2 or 3 which we are currently seeing a lot of activity ongoing, they are actually all performing quite well. Germany is, at the moment, very active. It is funny enough, it is not directly the German companies which are very active there. It is from other continents, which have people running around everywhere and really leasing out quite some square meters, besides, of course, also some German activities. We are very positive about the demand which we still see in Spain. Spain is doing still very well. Also now Italy. Italy has been taking up.

Speaker #2: But if I have to pick out two or three, which we are currently seeing a lot of activity ongoing, they're actually all performing quite well.

Speaker #2: But Germany is, at the moment, very active. And, funny enough, it's not directly the German companies which are very active there. It's companies from other continents which have people running around everywhere.

Speaker #2: And really leasing out quite some square meters, besides of course also some German activities. And then we're very positive about the demand, which we still see in Spain.

Speaker #2: Spain is still doing very well, but also now Italy. Italy has been taking up. Maybe it was because we didn't have the right land plots before.

Jan Van Geet: Maybe it was because we did not have the right land plots before, but now that we have Verona coming online and that we have Reggio Emilia online, we just started the 40,000 square meter development in Mancasale in Reggio Emilia for a tenant, for Gi-Erre, which is a 10-year lease agreement. The big economies are doing really very well. Eastern Europe is doing very well. In Eastern Europe, we had to reshuffle a bit our team in Romania, which was a bit of a hassle, but we are now fully back on track, and we expect. We have a lot of demand at the moment, so we are very positive also about our Romanian, which is our biggest Eastern European market at the moment, that that is going to perform very well in the H2.

Speaker #2: But now that we have Verona coming online, and that we have Reggio Emilia online, we just started the 40,000-square-meter development in Mancasale in Reggio Emilia for a tenant for Gair, which is a ten-year lease agreement.

Speaker #2: So, the big economies are doing really very well. Also, Eastern Europe is doing very well. In Eastern Europe, we had to reshuffle a bit our team in Romania, which was a bit of a hassle.

Speaker #2: But we are now fully back on track, and we expect— we have a lot of demand at the moment. So we're very positive also about Romania, which is our biggest Eastern European market at the moment. That is going to perform very well in the second half of the year.

Speaker #2: I would say difficult markets. The market where it is most difficult at the moment is by far Austria. It's very silent in Austria. But we don't have a very big exposure to that.

Jan Van Geet: I would say difficult markets, the markets where it is most difficult at the moment is by far Austria. It is very silent in Austria. We do not have a very big exposure to that. We just agreed on one transaction there, a lease transaction. We see a lot of activity also in the UK, so we are confident on the UK. We want to grow a bit everywhere. France is also. We signed quite some leases over the past year. More of my concern is that is sometimes very difficult to keep the growth in some of the countries because of lack of land positions at the moment. The Netherlands are very difficult, although we are very successful there, but it is not so easy to buy new land in the Netherlands, especially with this nitrogen thing, which needs to get solved at some point.

Speaker #2: We just agreed on one transaction there—at least one transaction. And then we see a lot of activity also in the UK, so we're confident on the UK.

Speaker #2: We want to grow a bit everywhere. France is also we signed quite some leases over the past over the past year. And then more of my concern is that it's sometimes very difficult to keep the growth in some of the countries because of lack of land positions at the moment.

Speaker #2: The Netherlands are very difficult. Although we're very successful there, it's not so easy to buy new land in the Netherlands, especially with this nitrogen thing, which needs to get solved at some point.

Speaker #2: I mean, I always hear the politicians say that we need to reduce rules, but I have the feeling that we always have more and more rules.

Jan Van Geet: I always hear the politicians say that we need to reduce rules, but I have the feeling that we always have more and more rules. That is a little bit the biggest break on our development, I would say. It is the complexity. It is also the advantage which we have, is the complexity of the permitting. I hope that answered your question. If not, we see each other maybe on our Capital Markets Day.

Speaker #2: That's a little bit the biggest brake on our development, I would say. It's the complexity. It's also the advantage which we have. It's the complexity of the permitting.

Speaker #2: I hope that answered your question. If not, we’ll see each other maybe at our Capital Markets Day. Thank you.

Pieter Runboom: Thank you. I will be there.

Pieter Runneboom: Thank you. I will be there.

Jan Van Geet: Thank you.

Speaker #1: Thank you, Peter.

Speaker #2: Thank you. Looking forward to it. Thank you, everybody.

Martijn Giezen: Thank you.

Martijn Vlutters: Thank you.

Jan Van Geet: Thank you. Looking forward to it. Thank you, everybody.

Operator: This ends the Q&A session, so I hand the conference back to the speakers for any closing comments.

Speaker #3: This ends the Q&A session. So I hand the conference back to the speakers for any closing comments.

Speaker #2: I just wanted to thank you all for being on the call. I hope we gave the right color so that you understand where we are.

Jan Van Geet: I just wanted to thank you all for being on the call. I hope we gave the right color so that you understand where we are. We are really doing our best in this market to grow, to keep on growing, to deliver what we have promised, and I am looking forward to see you on the Capital Markets Day. I am looking to really be able in person to exchange with you directly about our future plans and about all the exciting things which are ongoing inside of VGP.

Speaker #2: We're really doing our best in this market—to grow, to keep on growing, to deliver what we have promised. And I'm looking forward to seeing you on the Capital Markets Day.

Speaker #2: I'm looking forward to really being able, in person, to exchange with you directly about our future plans and about all the exciting things that are ongoing inside of VGP.

Speaker #1: Thank you very much. See you soon.

Martijn Giezen: Thank you very much.

Martijn Vlutters: Thank you very much.

Jan Van Geet: Thank you.

Martijn Giezen: Speak soon.

Martijn Vlutters: Speak soon.

Jan Van Geet: Bye-bye.

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