VGP drops as fewer project starts drag profits

VGP NV

26/08/2022 09:19

** Shares in Dutch real estate group VGP  VGP1.BR  fall 8%
as fewer new development starts weigh on H1 profits
    ** It reports a 24.9% slump in H1 net profit to EUR 151.3
mln ($150.8 mln), well below KBC's estimate of EUR 297.8 mln
 urn:newsml:reuters.com:*:nS8N2RH0A6
    ** "We expected 840k sqm of new developments starts over
1H22 that could have delivered EUR 320m of development profit.
Instead VGP started only 206k sqm of new developments," KBC says
    ** The broker adds it is possible that negotiations due to
rising construction costs and economic uncertainty have delayed
certain project starts
    ** Shares are on track for their worst day since May 9, when
they closed 9% lower, and trading at their lowest level in over
a year
    ** The stock is down more than 40% YTD, as Friday's losses
wipe off around EUR 300 mln from the market cap

($1 = 1.0033 euros)

 (Reporting by Federica Mileo in Gdansk)
 ((Federica.mileo@thomsonreuters.com))