Welcome to our Webcast on the Half Year Financial Results of VGP. I will first go through the executive summary. The building you are seeing here on the picture is our new plant in Pamplona which we've constructed for Mobis . It's actually a battery producing plant, brand new, and they are delivering from there out to many car producers in Europe. I will first go through the highlights of the first half year. We have a pre-tax profit. We report a pre-tax profit of EUR 208.6 million, which is an increase of 35% versus the first half of 2024. While the valuations remain fairly flat, we have a net asset value growth of 10.5% year-on-year, up to EUR 2.5 billion. The EPRA NTA per share increases 4.8% since December and 11.5% year-on-year.
We have an EBITDA growth of 31.7% with a solid contribution from our recurring rental business activities of EUR 118.7 million, from the development activities in the amount of EUR 118.1 million, so almost the same, and in the renewable energy of EUR 2.1 million. We have a historic first half record of EUR 56.1 million, or 822,000 square meters of new and renewed leases, and we're very upbeat on the leasing which is ahead of us. We have a very large pipeline of lease negotiations ongoing. The annualized committed leases were EUR 441.3 million, which has grown organically 7% year to date and 14.7% year-on-year. Meanwhile, we are well over EUR 450 million already. We have 846,000 square meters under construction and our development pipeline is actually 76% pre-let. We have 11 projects totaling 264,000 square meters delivered. They were 96% let.
There is only one small unit left in Luxembourg in Vienna, which we are confident we will be able to lease out in the coming months. 49% of the buildings which we delivered were BREEAM Outstanding. We also delivered the BREEAM Outstanding building in Italy, which is actually the first in all asset classes in Italy which has received BREEAM Outstanding. Our photovoltaic capacity grew 20% year-on-year, and our operational capacity is at the moment at 177.3 MWp versus 143 MWp in June 2024. Our balance sheet total surpasses the EUR 5 billion marker and we have ample liquidity availability, almost EUR 1 billion. We extended the maturity on outstanding financial indebtedness through the issuance of EUR 576 million bonds, and we did some active liquidity management. We bought back some of the outstanding bonds and we repaid EUR 80 million of bonds which came to maturity.
Finally, we now have two ratings. Many of you have said you would like to see also Standard & Poor's. We have obtained an investment-grade BBB-/stable rating from Standard & Poor's with stable outlook. The only one missing now today is at PT smoothies. We have two lay things. I'll first go through the market update. The market update is provided on slides which we received from Jones Lang LaSalle and we have put ourselves comments on what we see. The building that you are seeing here is built to suit for Mutti. It's full of tomato sauce in Parma, in the Valley of the Food in Italy, which we have just handed over to our tenant. The lease activity according to Jones Lang LaSalle in the European logistics take-up is 3% ahead on the pre-pandemic average in the first half 2025, which says resilient logistics demand.
Everybody is looking a little bit to what the Trump tariffs are going to do. We signed a record of EUR 56 million new and renewed leases and meanwhile we signed really a lot. We have roughly EUR 25 million of lease agreements at the moment. In final contract negotiations we don't see a slowdown. On the contrary, there is a lot of Asian companies which want to come to Europe. It has caused a shift and we are trying to profit from that very much so on the occupier segment. Jones Lang says yes, there is resilient and emerging manufacturing industries. We signed last year over almost 70% of our leases were manufacturing. This year it's a bit different but it's nothing to go on because when you take a snapshot every time it's going to be different.
We just signed the last month three or four new lease agreements which are all manufacturing. In the first half year, it was a bit more. It was a bit more logistics. What is a very happy thing is that we see the e-commerce coming back and it's already 18% of our leases signed in the first half year, which is going to be a big boost for our growth in the future if they start taking up space again. For many years or at least three years we didn't have any e-commerce related demand. The vacancy rates continue to climb, it says, and there are some markets with higher level of speculative completions over the past two years and or higher vacancies, but I've looked it up myself. The markets where we are in, in Prague we have 0% vacancy, in Milan we have 0% vacancy.
In Bratislava we are under 1% of vacancy. In Budapest we say Bucharest 0% vacancy, Madrid 0% vacancy. In Budapest we have 3,000 square meters available on a total of 122,000 square meters on the construction are completed. I think that is in our case very reassuring. We have everywhere in all those markets also demand. The supply pipeline stabilizes on lower levels, there is less speculative construction. You have also seen that our pipeline, our pre-lets have gone up significantly. Our KPI for our people is what we have longer than six months on the construction needs to be more than 80% pre-let, which actually is the case. We feel quite confident from our side to start up more square meters in the second half of the year. We have signed quite some significant build-to-suits meanwhile also which are also going to fuel our pipeline going forward.
In the next six months the yields look stable. We will see what happens. It looks like the last valuation was fairly stable. VGP reports also in its first half 2025 a complete flat yields in its portfolio. That's a bit our comparison to the market. Then we have our operational performance in the first half of 2025. I'll go through the leasing activities. The two buildings you are seeing is our new plant, our new park in Valsa Moggia, right next to Bologna, which is completely let, handed over, and it's all industrial activity which is inside. We have a record start in renewed and committed rental income, including the JVs at 100%. The group has now 631 tenant contracts or had at 30 June. 631 tenant contracts with 443 tenants. Many tenants have multiple facilities inside of the countries where we're active in.
The committed annualized leases of the 30 June were EUR 441.3 million. They're meanwhile already well above EUR 450 million and growing every day. The occupancy rate was 98% for the completed portfolio. That means that is mostly three buildings in the Czech Republic for which we have for all three of them now final negotiations on the leases. It's looking that we are going to be able to improve that a lot by the year end. My brother likes to make bridges, as you know. There is a bridge. The committed annualized leases we started with EUR 412.6 million. We signed EUR 26.3 million new leases. We indexed our existing portfolio with EUR 6.2 million. We did some amendments, some extra offices which were required or some extra space which was required from our existing tenants. EUR 4.9 million terminations. We are today at EUR 441.3 million.
What is also reassuring is that what became vacant we were able to lease out for approximately 12% higher than what was at least before. We still think that our portfolio is not over rented at all. As I said, this is just a picture at a certain moment because it changes every week. When we sign a big one, it is again different. In the first half year, almost 70% of what we signed was logistics companies or logistics operations from retailers. Studenac is, for example, the largest retailer in Croatia, which we have signed a lease agreement with, which is under construction in Split. FDS is a Chinese e-commerce company. They've taken up a lot of space in Magdeburg. We have breweries too. At the moment we have Movianto, which is really pharmaceutical, which is going to our plant in Heidelberg.
Reynolds Logistics has followed us in many Western European countries and now they're also in France. That's a little bit what has been signed in the first half year. There are many more, but this is a flavor of what we have signed. Farmal is really production in Calcio in Italy. The e-commerce takes up a significant part in the first half of 2025 leasing activity. We see a lot of demand still on the market coming from e-commerce from all over the place. The known names are very active, but there are also many new players in the market. You can see that 18% in the first half year was already e-commerce, which is really, we're very happy that we can say that. Most of those tenants invest a lot in our building, really significant investments.
Whether it is production, the light industrial activity, or it is e-commerce, it's also very automated and very much production heavy. It also means that they are committing to very long-term lease agreements. The weighted average lease term is now standing at eight years, including 100% of our joint ventures. In our own portfolio, it's more like almost 10 years. In the joint venture portfolios it's 7.2 years. You can see it's a mix of a lot of blue-chip companies. The risk is very spread. The 10 biggest tenants are only 31% of our committed leases. They are also spread over 29 different lease agreements. There is no concentration risk at all in our portfolio. I would say this is an interesting one. It says a little bit about the possibilities of VGP in the future.
We started the year, or we ended last year, with EUR 350 million of cash generative rental income, meaning buildings which already generate rental income, which have been handed over to the tenant and he's actually paying rent. EUR 350 million on an annualized basis or EUR 214 million at share. That increased during the first half of 2025 with 7%, or EUR 26 million, to EUR 376 million or EUR 238 million at share. That's income generating. The signed leases which are going to become cash generative in the next period are EUR 65.3 million. That's an increase of 17% up to EUR 441.3 million or EUR 298.1 million at share. We have the potential insights on our existing pipeline, on our existing development pipeline. I remind you that all the land that we buy, which is in our books, is also a permit for its intended purpose.
We don't buy land without a permit, at least the basic one, the zoning permit. That's another 53% capacity of our total rental income which we can still develop over the years to come. That goes to EUR 676.9 million or EUR 528.3 million at share. If we look at what we have now as ERV on the committed land, land which we have already signed exclusivity on, or a binding agreement that we will buy it at the moment when we receive the permit, that's another growth possibility of 7% to EUR 727 million or EUR 578.4 million at share. These numbers are all plus minus because we are constantly transferring inside of the joint ventures. The at share will and the total will probably change a little bit. That is the potential of development which we still have today in the pipeline.
If you look at the delivery side, and again the building of Mobis Hyundai in Pamplona, on which we are, you can tell, very proud. We have delivered 11 buildings, 264,000 square meters. Actually the same as last year. In the first half year, EUR 18 million rental income by 19 new contracts. It was more than 96% let. As I said, the last unit which is vacant is in Luxembourg, should be leased before the year end. They are 100% rated Excellent or better, and 49% of the deliveries was actually certified BREEAM Outstanding. As I told you, in Italy we have the first building, BREEAM Outstanding in all asset classes, just achieved this week. You can see it's very well spread over all the geographies.
It's also for the first time in the history of VGP this year that we will have buildings under construction in all the 18 countries where we are active, in every single one of them. In the deliveries in the first half of 2025 they were tending a little bit towards logistics. You can always have different views on it, but in square meters it was logistics 60% and light industrial 40%. If you look at the names which we have delivered to, then you see Cipla, it's in Italy, VAT, on which we are very proud because it's very comparable to the high tech industry. They make vacuum walls for the chip industry and it's a lot of square meter clean rooms class thousand. It's really a fantastic building in Arad. Hyundai Mobis, it's the battery plant production.
Of course, you have also Ahold Delhaize, which we have as a customer in many places. You have Toyota Material Handling, which is actually a showroom in Vienna, and then you have some other distributors. That's been the delivery side. I'll have some examples. The first one is in Barcelona Martorell, which we leased out to DDESA, which is a production site. You have 60 KU.K.A robots inside which are doing welding processes and everything possible. Barcelona is 100% let at the moment. You have Valsamoggia too, where we have 35,000 square meters and the main tenant is SEAT. We also have Cipladina, Corsini, and Pro GSM, which are all productions. They're all producing over there, it's right next to Bologna. We also delivered our park in Brasov, the largest building which we have there, to Inter Cars, which is very impressive, I have to say.
I visited the building not so long time ago and the customer, a Polish stock exchange quoted car parts dealer, has invested an impressive amount of money in the automation in that building. I also guess they're going to stay for a very long time. Currently we are expanding our park in Brasov. We have signed the agreements with the neighboring land plots and we're going to be able to extend it. We delivered our park in Luxembourg, where we have this one little last unit free in the building in front, which you see, which is only 3,500 square meters, 4,000 square meters and the rest is all fully let and it's really very well located immediately adjacent to the highway towards Vienna to Graz and it's in the south of Vienna. A really nice location.
We have the building in Pamplona, which I talked already too much about, and then we have the building in Arad for VAT. One of our nicest realizations which we've done. I'm very proud of our team. As you know, we split up all of our building in its components and then we coordinate this ourselves and make sure that everything is well placed. This is really an outstanding building with 12,000 square meter or 18,000 square meter of clean rooms inside. It's really very impressive. Also, the customer was very, very happy with the building when I saw it. It's vacuum walls for the chip industry. Very long time lease. We expanded the building for Continental in Bratislava and our park in Bratislava is now also almost fully let. We are expanding the last unit with the current tenant.
We just need to sign it and then it's fully let. We have some developments which are currently undergoing. The plot you are seeing on the screen is our development in Vela, Denmark. We have been able to buy some really very iconic land plots in Denmark over the last past months. The boys in Denmark, which is a relatively new team, they have a lot to do and these two buildings are pre-lets mostly for the biggest part. The portfolio under construction represents EUR 72.8 million of new leases as a possibility. As per today, it's 36 buildings are under construction. We started up quite some after the 30th of June already representing 846,000. At the 30th of June, the portfolio under construction is 73%.
If we include the pre-lets on the development land, the ratio amounts to 76% and the assets under construction which our internal KPI longer than six months are more than 80% pre-let now. We have initiated 325,000 square meters in the first half. Based on the current pre-let pipeline and the contracts on the final negotiations, we expect to start up more construction in the second half than we did during the first half of 2025. It's very well spread across all of the countries. As I said, we have now constructions ongoing in every country where we are active in. We just started also back in the Netherlands where we pre-leased two buildings now. You will see right away, I'll tell a little bit more.
You see our park in Brno at the right side and our park in Lučko, which is Zagreb, Croatia, which is also a pre-let complet for P3M. This is our park in Split, which we have pre-let completely to Studenac and Atlantic Group. Food processor Studenac being the largest retailer in the country. We have our park in Leipzig, Flughafen, where the first building of 20,000 square meter is already completely leased out. The second building we started speculatively and we are in final negotiations on the first half of the building. We have started our park in Brasov. We have started the last unit for Ursus Breweries, which is just under construction now. That's the last building which we can do in the current park. As I said, we are going to expand it. We started our building in Rüsselsheim. Rüsselsheim.
We bought 70 hectares, a little bit more than 70 hectares, two years ago with the sale and lease back with Stellantis Group, with Opel we managed to get very quickly. I want to thank the authorities for being so cooperative. A first building permit. The new headquarters of Stellantis in Germany, which is a 22,000 square meter office building, plus a very large R&D center, which is virtually a standardized building, but very much adapted on the inside. It's a 20-year lease agreement with a guarantee, a very solid guarantee for the whole lease. We are very excited to be able to do this. It unlocks also the rest. This is only 3% or 4% of the total land plot which we own, this building in Rüsselsheim. We are very much looking forward to develop the rest of the site, which is going to be relatively imminent.
We are in very far advanced negotiations with the city and we also have a lot of interested parties to come and be there. In Brno Berlin we have two buildings under construction. We just signed this morning a lease agreement for 27,000 square meter with B&O. That's a really nice one. The right building is completely leased already to Bewatek and Four Wheels. That's a park under construction. Not finally, but our park in Nijmegen. In Nijmegen, we have bought the land years ago for a normal price. Meanwhile, the land around us has been transacted for EUR 350 per square meter, more than double that we bought it for.
The land valuation have, but it's still sitting in our books at the original value because we don't revalue land, we only revalue it at the moment when we really unlock it and start developing it and start construction on it, and then the valuation grows as we lease it out, etc. Now we have two pre-lets in Nijmegen that have been started up. One is to Dustin Group. It's a very bespoke building. Not a very bespoke building, it's a standard building, but it's got a very nice facade in glass right next to the highway, which has already started construction upon, which needs to be delivered next year. We also started the building E, which is Liszto Pro Temple, also a 20,000 square meter. We have still a lot which we can construct in Nijmegen at this land which we bought historically very well.
We are in very far negotiations with some very big tenants to be able to develop also the rest. It looks like we've been lucky to sit out this window in the Netherlands and have not been tempted to buy land expensively. Now we can be very competitive while still realizing really very nice margins also in the Netherlands, and I wish my Dutch team a lot of success. They seem to be extra motivated. Now we are in Italy. In Italy, we are growing a lot. Lately we've expanded our team a lot. We just bought this land plot in Parma right next to our GLS building, and we're also buying the land plot behind it. You will see it afterwards in the Land Bank. We already signed the lease for this building. It's under construction now in Parma, the 14,000 square meters.
We also have signed a very nice pre-let last week also in the Reggio Emilia region, where we're going to construct a 45,000 square meter building coming on. There is a lot of land acquisition going on, which leads me to the Land Bank. If you look at the Land Bank, I'm very pleased. This year we've been very, very busy in trying to achieve because now we can. We have been able to secure a land bank which really has embedded in itself a lot of value for the future. That's always the main driver of our future growth. It's how well you buy the Land Bank and how strategic, well-located it is and what demand you're going to generate. It's all a question of all these vectors which need to come together. We are currently finishing some really iconic acquisitions.
Some of them have been announced already by the sellers, like Odense in Denmark or Køge in Denmark. Some of them we can't announce yet, but we signed exclusivity and I am very much looking forward to announce them in the coming months. There are really some goodies inside if you look at the Land Bank. We started in December, we ended in December last year with 7.4 million square meters. We acquired 633,000 square meters. This year we deployed more, 670,000 square meters. The owned land bank at the end of June was 7,342,000 square meters. We committed 2.3 million square meters in June 2025, which brings the owned and committed in June 2025 to 9.7 million square meters, on which we can develop more than 4 million square meters in the future.
We have under option or pre-contract another 1.9 million square meters, which is now in the phase of due diligence and where we don't have a final binding agreement. We think that most of them will become committed by the year end. I'll go quickly through some of the things we did. Our first acquisition in the U.K., we bought a very nice land plot in the Midlands in the so-called Golden Triangle in the U.K., and we plan we can develop 77,000 square meters. We just contracted a general contractor for the first two buildings, and we planned a lot more acquisitions in the U.K. We are currently working on two very iconic ones also there. We have bought quite some land in Portugal for the first time in long years.
This is probably the nicest one which we have been able to do so far because of its site. The numbers which you see in there was only the original auction plot which we bought, but we have been able to expand the land to over 230,000 square meters now in Vila Nova de Gaia, really in Porto. It's a very flat land plot. We bought it very well, and there is a lot of demand in Porto. We hope that we can be, we're going to be able to lease very well actually everything which we have developed in Portugal so far in those three locations. It's everything fully let. We also have Loures 2, an expansion of our DPD and DHL site. We have signed the PSPA, which is a lot bigger, and we also signed Family Cow with the pre-let. There is a lot ongoing in Portugal.
In Greve, which is a bit the same situation, we first bought a small land plot which is a 57,000 square meter. Meanwhile, we have also bought some other two fantastic plots around it. Nowadays, we can develop 110,000 square meters. Greve is actually right next to Copenhagen at the exit of the highway. As you can see on this render, the location is really stunning. There is a lot of demand for Copenhagen. We are very much looking forward to build to unlock the value of this land plot going forward. We also bought Odense and Køge, as I said already. We have already a park in Wehle, in Magdeburg. We just expanded because our park is fully let. It's the biggest park we have, I think, in Germany. We just expanded with. We bought an existing building with some land which we can develop.
They just acquired in Parma, as I already said that we acquired a land plot in the extension of the building which you see, which is roughly the same size. We just signed Cavassa in the Reggio Emilia region, which is another 200,000 square meters. We are going to do some other pre-lets which we will announce certainly soon. Before I give the word to Martijn about the renewable energy, I want to give a quote of my father, who is a poet. He said yesterday when we were sitting together, every economy needs cheap energy. Who denies that rule is just a fool. It's now up to Martijn to explain. Thank you.
Thank you very much, Jan. On the r enewable energy.
Business here you see, actually for the first time we are showing now the renewable energy business not constituting just of the photovoltaic projects and pipeline, but we've also included the BESS, the battery energy storage systems. You see that the combined two segments result in a total project pipeline, which is 30% higher compared to a year ago. If you look at the energy production, which is driven by the renewable energy photovoltaic panels, we're up 50% year-over-year to 70 GWh. That is driven by the production capacity at the beginning of the year, which has also grown 50%. If you take the December numbers from this year compared to December 2023, you see that was up 50%. Production has kept up in line with the additional capacity that we were able to install. The revenues have gone up a little bit further.
You see that the gross renewable energy income generated was EUR 6.5 million. That has gone up with more than 70%, which is a result of a better revenue mix where we have less energy going directly into the grid, but also more being consumed in our buildings. At the same time, also the margin has actually improved a little bit. Where last year we saw the startup of our full, what we call Volfesorgung in Germany. Now we're back up at a margin of above 70% for the net revenues generated, EUR 4.7 million.
Total investments have amounted to EUR 129 million and there's an additional project which we've identified in the battery energy storage system of roughly EUR 20 million which we are currently assessing, which you see here as part of the pipeline and hope to be able to move further to the left of the waterfall as we move along in the coming six to 12 months. That is it on renewable energy. I would just add we have removed the section on ESG for the sake of also keeping the presentation a little bit shorter. The only noteworthy point that I would like to highlight is that at the first half of the year we were rated A by CDP. That was the first rating to have received this year.
An A rating from the Carbon Disclosure Project is among the top 2% of the companies that they rate globally and that's more than 60% of global market cap. We were quite pleased with that outcome on the CDP and also on their suppliers engagement. We received the highest score from CDP. Second half of the year we expect to receive more of the other ratings and Jan already alluded to the dream outstanding that we're incredibly pleased of as well. With that, no further ado. Move to the joint ventures.
Yep. Thank you, Martijn. Indeed, I have an update on the joint ventures. The picture that you see is again our VGP Park in Munich. It's a bit of an older picture. On the right on the bottom there is in fact already a building, but as it's such or we are proud of it, so I'm happy to show that picture once more. In fact, I've shown this graph already in the previous presentations that we have made this year. We have not done any closing yet with the joint ventures other than some settlements on which I will talk about a little bit more in the financial sector. Nonetheless, we are targeting a material closing in H2 2025 with ARIM.
In fact, to give some perspective or some numbers on it, I think we can do within the next 12 months from EUR 500 million- EUR 1 billion sizing of transaction and we hope to do a material part or a large part of that in the H2 2025, but it depends a bit on completions of certain assets etc. It's something that we are closely now in discussion with our joint venture partners. Otherwise, the joint venture landscape as it is at June and its performance in H1 2025 is excellent. The EPRA earnings as you can see they went up. This is all at share. So we have a 50% stake in the joint venture. The numbers you see is all at share. The EPRA earnings went up from EUR 27 million- EUR 30.6 million. The cost ratio went down.
The valuations, as Jan said before, they are very stable with the net initial yield basically flat. Net tangible assets went up from EUR 1.41 billion to EUR 1.497 billion. Also, the vacancy went down from 1.8% to 1.2% and also the LTV went down from 31.5% to 30.2%. There is about EUR 5.6 billion of completed assets. Gross asset value inside of these joint ventures that we have together with Allianz, that is Rheingold, Aurora and Immo Deka, that's Red and Saga, which is with ARIM. You can see that the largest part or the asset value is still Germany with 63%, followed by the Czech Republic historically at 14% and then some other countries just walking you through. Also, the financial performance of H1. The park that you see here is the Brasov Park with on in the back.
The large building is the Intercars building where I was referred to before. Basic summary on the P&L again I have a P&L, a balance sheet, cash flow and some other analysis for you prepared starting with the good news of course is that we have a significant increase of our net profit from EUR 141.5 million to EUR 180.5 million. Also on gross profit and before tax 35% up to EUR 209 million. The result in fact is a combination of a lot of factors, but all of them have a positive evolution. Whether it's our development, whether it's our recurring income, whether it's refinancing, all aspects have brought a positive contribution to the result. Maybe starting on top with the net rental renewable energy income, there you will see we have an increase of 24.3% which is composed obviously out of two elements.
One is our rental income which we have on our own balance sheet. Just to recap there, once Jan mentioned before that we have EUR 441 million of contracted annualized rental agreements across the group. EUR 150 million of those are still on our own balance sheet and EUR 95 million of those are active. We had EUR 39 million of gross rental income which was a 16% or 21% increase versus the first half of this year. It will ramp up further to the EUR 150 million. We intend to dispose a major part again into joint ventures in H2 and in H1 next year. On the other hand, we have the renewable energy income where Martijn just actually basically gave the whole summary on it. We had a EUR 6.5 million gross revenue, EUR 4.7 million net. We produced more, but we also had some positive revenue effects from direct contracts through tenants amongst others.
Now the net rental renewable energy amounts now to EUR 40.9 million. If you would add the share that we have in the joint ventures on top of that, then in fact it increases from EUR 89.3 million to EUR 103.9 million. That's the rental income that VGP economically owns and that was also an increase of 16.4%. That's all fully driven organically. We haven't acquired any rental income. It has been developed, it has been delivered, it has been indexed, it has been replaced with higher rental income. All of those effects play in that 16.4%. Now, the next line on our P&L is the joint venture management fee income that went up with 2.6% to EUR 16.1 million. Just as a quick reminder, it's composed out of two elements. One is a recurring fee which is basically related to the size of the joint ventures.
As the size of the joint venture has grown, especially in the last year with a lot of transactions that have been done, our recurring fees that we charge to those joint ventures for managing them, because we manage them internally, went up from EUR 12.7 million to EUR 14.4 million. That's recurring. We expect to further increase also to the year end and then by doing additional transactions again to increase that recurring fee. On the other hand, there is some non-recurrent fees. Sometimes there are developments done on assets in the JVs for which we charge and that in fact was a bit lower. This year there were less developments ongoing in the JVs. That was EUR 1.3 million lower, so it reduced to EUR 1.7 million. The main and key element here obviously is the recurring income.
The next line, which is always a very defining line in our result, obviously is the net valuation gains on investment properties which went up with 42.8% all the way to EUR 141.5 million. Here basically there are two elements in play. One is an unrealized revaluation of EUR 121 million and a realized gain of EUR 20 million. The unrealized gain of EUR 121.6 million, which significantly increased, is fully related or by majority related to our ongoing developments. As at 30th of June we had 845,000 square meters under construction and we started up 325,000 square meters, as Jan said before. On those two together, so what we have initiated, and that's by majority, we have about EUR 105 million of revaluation gains and then EUR 15 million is a revaluation on an existing completed portfolio. Knowing that the total completed assets on our own balance sheet amount to EUR 1.2 billion.
So it's in fact, as you could also see on the market slides of Jan before, and as Jan s aid, we had a relatively flat or a very flat valuation effect on the portfolio. On the other hand, we have a strong contribution from our development angle in the business. Our own portfolio on the balance sheet has an average weighted yield of 7.3%, which was 7.22% as at 31 December 2024. The realized gains, that's the second element of the net valuation gains, is EUR 19.9 million. We did not transfer any assets into joint ventures, but what we did with joint ventures in the first half was some settlements relating to prior closings. We usually sell, or we always sell shares into the joint ventures on provisional numbers. After some time, three, six months, one year, we audit this and make up the final numbers.
It turns out that our profit was larger due to the fact there were some additions with tenants. There was more in the cash than in the company was previously provisioned, and hence we received, or we booked an additional gain, about EUR 20 million. Next up is the admin expenses. The admin expenses increased to EUR 2.6 million. The group has grown in FTE. In June 2024 we had 372 FTEs. Now we have at June 2025, 412, so roughly 40 FTEs more. It's also related to the growth of the business and we have more completed assets, more facility management, but also the new countries that have been ramping up, such as the U.K., France, and Denmark, which have to hit the ground running. The next line, the P&L, is the sharing result of joint ventures.
Again, joint ventures had an excellent performance and we see that also in the contribution of the net result. It went up from EUR 33.7 million to EUR 43.8 million. That's our 50% share in the net result of the JVs. If you look at the underlying factors or contributors, you can see that well on the graph below, where I make the bridge between the proportional net result of the JVs from June 2024 or H1 2024 to H1 2025. You can see that the net rental income went up by EUR 9 million. Obviously we transferred quite some rental income in 2024. Nonetheless, there was also an indexation effect of EUR 2.5 million a share. The valuation was positive, it's EUR 9 million more, it's EUR 18 million at share. On the EUR 5.6 billion portfolio in the joint ventures, the valuation was relatively flat, nonetheless positively contributing. Admin expenses were roughly in line.
Financial result is a bit, we have a bit more interest expense, but that is of course that we did quite some sizable transactions last year which were partly financed by debt in 2024 also in the second half of last year. That increases a bit the net financial result, albeit that the LTV went down to 30.5%. In taxes there is EUR 2 million more, but it's fully related to the deferred tax movement on the revaluations. That brings us actually to an operating result of EUR 211.8 million, which is 40% up. It was EUR 151.7 million in last year. The net financial result went down from EUR 2.9 million to EUR 3.1 million. The effects that are in play here, I will say a little bit more about it also on the next slides.
We raised a new bond and we repurchased EUR 200 million of outstanding bonds and those EUR 200 million of bonds were bought for EUR 195 million. We made EUR 5.2 million of profit on that. On the other hand, we have the interest due to the fact that the interest rates with the ECB are going down, which we all are very happy about. There is a counter effect. Of course we have quite some cash. We are cash rich and the interest that we get on the cash on hand dropped by EUR 3 million versus last year. We have a little bit less interest from JV loans. That is because we did some repayments. Also, Mourdack was sold in the first half of the year last year, which was a big contributor there.
Our interest expense, as we carry more debt than what we had at the end of June or in the first half of last year, has also increased by EUR 2.9 million. Our average interest expense went up to 2.7%. I will show a separate slide on that. All the financial expenses are mainly some exchange rates and costs related to the bond issuance. That brings us to a result before taxes of EUR 208.6 million, up 35%. The taxes have also increased, but in fact our tax expense has gone down by EUR 1.6 million. It's mainly a deferred tax recognition due to the unrealized gains on the revaluations. As I mentioned before, earnings per share obviously also went up by 27.5%. They are now at 6%. Splitting up the P&L in the three segments, you have the investment, you have the development, and the renewable energy.
The investment basically shows the EBITDA of EUR 118.7 million of all completed assets, including our share in the EBITDA of the joint ventures, excluding any revaluation effect. This is purely the cash EBITDA that comes out of it. There we see a solid increase. We expect to see a further increase in the future given we are constantly delivering new assets and building up our recurring rental income. This total segment, if you look at it on the balance sheet, represents EUR 3.1 billion of our total assets. On the development side, we have also a nice increase on the EBITDAs. We had, as I explained before, solid contribution from our assets under construction and assets that were initiated construction. In the first half of this year, there was a total CapEx spend of EUR 257 million and this represents a total asset base of EUR 1.4 billion.
We have the renewable energy where we see also an increase in EBITDA and a renewable energy income of EUR 6.5 million. Just walking once quickly through the balance sheet, on the total balance sheet we are proud that we breached the EUR 5 billion marker on total assets and total liabilities, including what is booked under held for sale, the EUR 240 million. There we have a completed portfolio on our own balance sheet of EUR 1.2 billion, which is up from EUR 879 million in 2024. Then under construction is up with EUR 657 million, or at EUR 657 million. Development land, as Jan also explained before, EUR 650 million. There was a total CapEx of EUR 257 million, and it's all valued at a weighted average yield of 7.3%. Property, plant and equipment is EUR 127.1 million. It increased with roughly EUR 5 million. This is by majority related to the renewable energy installations and battery installations.
It's not only PV installations anymore. They represent EUR 97 million in completed installations and EUR 20.4 million in installations under construction out of a total commitment of almost EUR 130 million. Our investments in joint ventures, they went up, but basically it is our share in the result that makes the most of the movement. We haven't done any transaction with the JVs which would increase our equity stake inside of the joint ventures in the first half. This is of course expected to change in the second half. The same is a bit valid for the other non-current receivables. Our cash position is at EUR 423.6 million, knowing that of course we have EUR 500 million in several multi-year unsecured revolving credit facilities which are undrawn and available and have all been prolonged either in H2, H1, or just this week.
Even one of EUR 75 million which expired at end of 2026 has also been prolonged with five years as of 31st of December 2026. That's quite good on the liability side. Our equity went up. Very easy movement. We had the result of EUR 180.5 million and a dividend paid out of EUR 19 million in the first half of this year. It's an increase of 3.8% since December or 10.5% year-over-year. On the debt side, I already hinted towards it on the previous slides, but we raised a new bond of EUR 576 million. It was in fact EUR 500 million plus a top up by the EBRD of EUR 76 million at the same conditions. With that, simultaneously, we did execute an active liquidity management exercise on which we paid back EUR 200 million on outstanding bonds.
I'll show some graph on it in the next page to make it a bit more visual, on which then we in the end repaid or we paid them for EUR 195 million. We also paid back a bond that matured in March of EUR 80 million. There is another bond that has now been classified as current because it is payable in March 2026, and that is EUR 190 million. The average cost of debt is 2.7%, slightly up from December 2024, and we still have the EUR 500 million availability. In terms of the ratios on our balance sheet, we have a gearing ratio of 37.9%, which is well below any covenant that we have on the bonds or any of our debts and the proportional LTV. Taking into account also our share in the assets and net debt position of the joint ventures, we are at 50%.
Also happy to announce that we have a new rating from S&P just obtained. Like Fitch, it's a BBB-/stable investment-grade rating. If we wrap up the financial numbers once on a proportional basis, I have already hinted somewhat to it, but this is basically the proportional P&L where you see in the first column, the own P&L. Then you see the line share of net profits from JVs and Associates is 0. It's EUR 43.8 million, which is then in the second column, the JV at share shown on every line individually, so that you can see in the third column, proportional income statement, what the group economically owns today with 50% of the JVs included. Our net rental renewable energy income of EUR 40.9 million increases to EUR 108.7 million in this respect. It's a 19% increase.
We had a total valuation gain on the portfolio of EUR 159 million, of which EUR 141 million in our own balance sheet. The operating result increases to EUR 252 million. What I also would like to point out here is even if you were to take out fully the revaluation effect, our operational result increased with 21% . If you look at it on the investment property, it's the two lines on the bottom. We have EUR 2.5 billion on our own balance sheet. There is EUR 2.9 billion, almost EUR 3 billion, that we take in at share from the joint venture. We have EUR 5.5 billion worth of investment property, economically that is up from EUR 5 billion, or an increase of 8.3%. Similarly, you can then calculate also the proportional LTV, which is 50%, as a fact of matter mentioned before.
The cash flow statement is basically a summary, I think, or a conclusion of what I've been saying before. I've sorted them, starting with the liquidity position from EUR 492 million at year end and ending them EUR 423 million at end of June. I've sorted them from the big plus to the small minuses. First of all, first and foremost, we raised EUR 576 million, which brought us net cash after costs and other deductions, EUR 565 million. You can see in the cash flow net cash generating from operating activities EUR 14.5 million. That in fact contains an operating cash flow of EUR 31 million, but then you have a change in working capital of EUR 2.9 million and interest payable or interest paid of EUR 43 million and a tax paid of EUR 2.8 million. That brings it down to a net cash generated from operating activities of EUR 14.5 million.
I will stick maybe to the graph and follow that. JV distributions of EUR 7.6 million. We expect about EUR 80 million of distributions from joint ventures in 2025, of which we already received EUR 7.6 million in the first half of this year through interest payments on shareholder loans in the Deka and ARIM joint venture. We had some proceeds from disposals, EUR 1.7 million based on those settlements with the joint ventures I mentioned before. We paid back EUR 275 million of loans. That's the EUR 80 million bond plus the EUR 200 million outstanding bonds which were repurchased for EUR 195 million. So EUR 195 million plus EUR 80 million is EUR 275 million. We had a CapEx effectively spent of EUR 241 million. We paid out a dividend of EUR 90 million. We paid interest of EUR 43 million as I mentioned before.
We also had loans to joint ventures for ongoing CapEx there on assets which are economically owned by us of EUR 22 million. That brings it to EUR 423.6 million of cash or a total cash flow. The period of EUR 68.9 million. Maybe a word on the average cost of debt. It went up from 2.2% to 2.7%. The new bonds that were raised, EUR 576 million, was at a coupon of 4.25% and it matures on January 31. We have a total debt position of EUR 2.3 billion on the balance sheet with cash EUR 424 million and unutilized credit facilities. There is an expiry of EUR 190 million in 2026. Maybe just to make it a bit visual, this was a financial profile at year end 2024 where you could see in 2025 the EUR 80 million was what we needed to pay back.
We had a 3.7 years average debt maturity that changed then into 4.1 years as in June 25th. The EUR 80 million has been paid back. You can see in 2031 there is now the new bond of EUR 576 million included. We topped off the EUR 500 million bond in 2027 and EUR 600 million bond in 2029 with respectively EUR 180 million on the 2027 bond and EUR 20 million on the 2029 bond. I think this was probably my last slide. Thank you. I'll give back to. Yeah, yeah.
To summarize it and to give you a little bit of outlook on the second half of the year, I want to stress once more that we had a very solid year so far in terms of land acquisitions. We will be able to announce in the foreseeable future some truly iconic new land plots in most of the or in all of the countries we're active in. Combined with that, we have an even more solid performance on the letting side with more than EUR 50 million signed and renewed in the first half and a very filled order book in final negotiations all over our market on new leases, which some of them have been already signed and some are really in the final stretch. We hope to be able to sign them before the end of September, even all of them.
As a result of that, we expect to start up more square meters than we did in the first half year. That's based on the lease evolution and we will manage that in function of our occupancy rates going forward. We have a KPI over six months under construction should be more than 80% for our people. We feel very confident that we have our construction prices very well under control and that we can realize on the land which we bought at economic fair terms that we can realize a really nice extra value. We have ample liquidity today and plan to transfer quite a bit of assets between EUR 500 million and EUR 1 billion in the next 12 months to our joint ventures.
The timing of that is only dependent on the pace at which we can develop some of our parks out and at the time of maturity when they are ready to transfer. We're very confident on that. Finally, I also want to say a word of thanks. We are going to launch the second part of our marketing campaign which many of you will have seen in September, where our customers make a testimonial to their cooperation with us. I want to express my sincere gratitude for the enthusiasm and engagement which we have been working together with them over all these years. We're very grateful that they agreed to make a testimonial to us. When you travel through the airports, look around, you will see we'll be everywhere. Thank you. That's it from my side and I think it's time for questions and answers.
Yes, Moderator, we can open the line for questions.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Suraj Goyal from Green Street. Please go ahead.
Morning all. Thanks for taking my question. You mentioned that your pipeline is strong. You expect more construction in the second half of the year. Also picked up quite a few attractive land plots. How are the construction costs trending year to date? Be good to get some color from market to market. I'm pretty sure you see Europe as one market, but if you could dig in across the various markets, that would be quite helpful, thank you.
I guess that's a question for me because I'm the CEO and I'm involved with that every day. We see everywhere over the past years, the construction price has been consistently coming down since the very high peak where it exploded in 2022 and where I stood completely on the brake since last year. A testimonial to that is also that we are now constructing in literally every market where we are active in. We have seen the construction prices coming down. They are at the bottom. I would say today everywhere we are back to pre-pandemic construction prices, we see still a lot of construction companies in troubles in some of the markets and there is still some room for improvement maybe, but I'm fairly sure that we are bottoming out. We have everywhere around the same level.
Of course, it's a bit dependent on the cost of the local people workforce, but material wise, we tend to be able to do very big purchases all over Europe. We combine really our volumes. We split up our buildings and we combine volumes and we buy directly at the producers of those volumes. We get really very good pricing. If you look at it, I would say that the construction price is everywhere in line with our margin target. We are everywhere able at today to achieve those targets that we want. It will be a lot cheaper to construct or cheaper to construct in a country like Romania. Then we have a higher yield, but the exit yield is also higher, so the value is different. You aim for a higher yield versus Germany, where we have a higher construction price, but the exit yield is also lower.
It looks like everywhere we're under budget at the moment. We are really performing very well. We have no accidents. I think if you look at the numbers, you can see it. There is no point in going through every country separately because it's everywhere the same. It's really everywhere. We have the construction price really very well under control. That's the best I can answer.
The next question comes from Wim Lewi from KBCS. Please go ahead.
Yes. Hi. Thanks for the presentation. I've got the question on the cash recycling. You mentioned half billion to a billion. You also mentioned depending on some particular completions. You also mentioned ARIM. My question is really the size. The final size, does that depend on finding other JV partners? If so, can you say anything about the type of those partners? Would that be a similar partner to what you already have, like Allianz, ARIM or Deka? What is really the negotiation about if this takes longer because I think you've been talking about this for a while. Maybe lastly on the JVs, as you mentioned, your cost of debt goes up, but obviously you use part of that debt to finance the JVs. Can you also then increase your interest rates that you charge these JVs so that that kind of balances out a bit.
The closings we are planning are a logical evolution of the commitments which we have made with ARIM over programmatical joint venture which we are rolling out at the moment. That is what we have in the short-term that we are working on. That's what we are going to transact today. In the second half there is a very large transaction plan and in the first half of 2026 is also a very large transaction plan. At the same time we have several working streams which we are in advanced discussions with other people to set up a new joint venture which is normally completely, completely in line with what we have already achieved before where we're trying to set up the same things and which we can't disclose yet today because we are just in the middle of negotiations and have not reached a principal agreement yet.
On the rental level, if the level of debt goes up towards cost of debt goes up, we are completely aligned with our other investment partners in the JVs. We have a common interest on the interest level which we are charging through and the ones which we are financing where we still have the economic value of the property and it's although it's already sitting in a JV but we still have the economic prop. The economic value of the asset that we are free to decide whatever we want on the interest rate and it's left pocket, right pocket and the rest is just a mechanism which is set out the JVs.
Okay, thanks a lot.
You're welcome.
The next question comes from [Vivian McKay] from Degroof Petercam. Please go ahead.
Yes, good morning. Thank you for taking my question. Just coming back or maybe on the pretext I understand that your receiving internal target is 80% for project to be started within the last six months. Looking at the numerous projects we intend to add to the development pipeline, as you mentioned sizable deal negotiations, are you confident to keep the level of the project above 75% if you account for everything under construction by year end.
I'm very comfortable in saying that we are going to do more in the second half year without deteriorating our current pre-let scenarios. Yes, absolutely. It's based on what we have in the pipeline. If only what we sign now, if we already start up that and there is a little bit of more, how you call, speculative development, we are going to sit at exactly the same or even better rates at the year end. We are monitoring this very closely because it's one of the things which really are important to us. We don't want to start building castles in the air. We really want to grow and cash flow is for us a very important thing. Getting it back, it's always been. We've always been at the same parameters. My answer is straightforward and blunt. Yes, I'm confident I will make it like that.
All right. Just maybe on the deliveries, is the reason you removed the 700,000 square meters expected to be delivered over the year? Is it any specific reason or just timing effect?
No, it's.
Go ahead.
It's just timing effect. I think what is under construction is indeed planned to be delivered to what has been said before. There can be some tenant specificities that may interrupt, but other than that, no specific reason.
The next question comes from Marios Pastou from Bernstein. Please go ahead.
Good morning. Thank you for the presentation and for taking the questions. Just a follow up question on the developments and the costs associated. Can you just quantify the average development margins you are targeting and achieving across your pipeline, and then just on rental growth, can you confirm what the like-for-like rental growth was across the portfolio on a year-on-year basis? Thank you.
Okay, so on the margins which we are trying to achieve everywhere, there is an internal thing. Of course, it depends a little bit. It goes from project to project. Not all projects. We don't bake breads. It's not like we have a machine at which comes every product is exactly the same, but we target a 30% margin on it. That's where we, and we seem to be able to achieve that throughout the portfolio everywhere. That means that the yields are different everywhere because you have the exit yields are different for. I already said many times I look at Europe as one market and I have the idea that eventually the yields will flatten out between separate markets a little bit more than they are today.
The extremes between the markets are too big and some people don't understand enough the Eastern European countries which are evaluating and growing at a lot faster pace and modernizing at a lot faster pace than the Western European countries. I think over time with a little bit of faith this will flatten out. We try to have a stable margin. We try to keep a pragmatic approach so that we can say through all of these markets it makes sense to be there because our margin is everywhere roughly the same. In some markets it will be a bit better, but on average it will be 30%. There is no country where we say we just planted the flag here and we want to be there, and so we are going to develop even with a negative margin.
That's also why I didn't develop anything over the last three years in the Netherlands and only now I started because we just didn't have the input to make a nice margin there. Now we do have it and that's how we really think about our countries, how we really think about the regions. I would call it more regions than countries where we look at. It's a very big preoccupier for myself, the margin. As I said, we target to have at least 30%.
In terms of the rental growth question or the like-for-like rental growth, it was 2.4%. Some kind of connotations to make, however, is that we do not have a lot of real lettings to do. We have a relatively long vault in the portfolio. It's 80 years on total, almost 10 years on our own balance sheet. We had terminations of EUR 4.9 million in the first half of this year. To give you an example, EUR 4.1 million of those were replaced by EUR 4.8 million of rental income. We had a serious uplift there. Other than that, we had the indexation on the portfolio. The portfolio is relatively young and the average age of our buildings is four and a half years. We have been delivering a lot in the last years as a result. Out of that. Hope that helps.
Thank you very much. Appreciate it.
The next question comes from Ventsi Iliev from Kempen. Please go ahead.
Hi, good morning. Thank you for the presentation and for taking my questions. First one, on the intended transactions. Just to make it clear, is it only planned transactions with ARIM or is it also based on further joint ventures? Maybe second one on project starts. You said you would likely start more than in the first half. Given the typical lead time, that would imply that next year you would be delivering close to 700,000 square meters. Would that be the correct assumption?
Yeah, no, I forgot the first part of the question. Yes. The joint venture, the EUR 0.5 million- EUR 1 billion which we've planned now and next year is indeed the ones which are planned already, which have been signed and which are running on and where we have a commitment to, from both sides of the table to close these things. They're only dependent on the speed at which we can finalize our buildings in the jurisdictions which we have agreed upon. That's minimum half a billion. We're very optimistic that it will be a lot more. Separately, as I already said, there are other JV negotiations running, but I can't disclose yet what the timing nor the size will be until I've really reached an agreement. Yes, there are negotiations running, but we can't disclose yet anything on it.
That is the answer to the first question and the second question, how much we are going to deliver next year is really dependent how much we start up in the second half of this year. If we start up 500,000 or 700,000 or 400,000, it's going to define really what we deliver next year. I can't really answer on that, Bensi, even if I wanted to. I think it will be sizable, as it will be sizable in the second half of this year also because there are a lot of buildings coming to the end and I think that's the right answer to your question.
Okay, thank you very much.
You're welcome.
The next question comes from Paul May from Barclays. Please go ahead.
Just a couple of questions. On the first one, are you able to quantify the remaining firepower in the existing JV? How much more can they buy before you need to get new JVs signed up to continue disposals? The second question, obviously highlighted, and we see that in the market data, that the market is generally weaker. We've had less take-up across the markets every year. I think since 2021 has been the less take-up. Yet you're able to continue to deliver, continue to sign new leases, continue to sign new development operating ahead of the market. Just wondering what it is that differentiates your land plots or your land values, your rental levels that you can offer versus the competition and why you're able to continue to deliver where the market is broadly. Thanks.
Yeah, the remaining firepower in the JV is actually a little bit more than EUR 1 billion. That is what we have still. The rest we need to work on and why are we able to. We have tried to make from VGP somebody who is very integrated and we have been always focused on being a very good construction company. A very good construction company means we all, in all of our markets, we split up our buildings in all of its components and then we are able, then we just do ourselves the construction side, even very complex projects. Also the BMW R&D facility or Crossbar 5 production or the VAT thing. On average, I think that gives us a better margin over our projects than the competition or a sharper edge than the competition.
On the land plot acquisition I've always been looking at, we have laid off a lot of land plot acquisitions where people have been looking at rental growth and projected rental to where I never believed in it and today where we can buy the land back at very reasonable prices or fair prices. It's not what it was before 2022, but it's not also what it was after 2022 and 2023 when the prices were just crazy. We have really very nice land plots bought and with our 416 employees, which we have today, of which more than 60% are consistent construction engineers, we manage really to be very aggressive while still maintaining our 30% margin. Hence we can be more aggressive than many of the people who are working with a general contractor and are looking at it from an Excel point of view, basis point of view.
We try to have a very close relationship to our customers. There is no secret to it. It's just hard work. There is nothing else and that's it.
Just to follow up on that one, are you able to offer a lower rental level because you've bought land? Is that, we say, your underwriting of the land, your construction engineers, you're able to offer tenants a lower rental level? As a result, you can get good development margins on lower rent and then drive those rents higher in future years. Is that sort of part of the strategy?
Indeed it is, yes. We are not the only ones who are doing that. There are a couple of players like us in the market who have the same features. That's the strategy we really can be. We try to be the best to offer the best solution in any view, if you look at it. Everybody, wherever it comes in Europe, in all of our markets, we have the same strategy and we try to really be a good partner for our customers. That includes a very aggressive rental price policy. Yes.
The last one, we've seen, of course, the U.K. markets, companies getting larger, seeing more tenant interest as a result, quite a bit of equity funding of growth profiles that's very well supported by investors. I just wondered if that is something that you consider as an alternative to the JV structure, looking to the more on balance sheet funded by your own equity.
Rob, we have many possibilities to alter our strategy, but so far it has worked very well and it is our first choice, and we have no aim to do anything different in the near future. We don't have to.
Thank you. Thank you, Paul. Let's move to the next one.
The next question comes from Thomas Rothaeusler from Deutsche Bank. Please go ahead.
Hi. Morning all. Just one question actually. On acquisition, I mean you indicate to acquire a number of strategic and iconic land plots. What you say? It seems overall you still see good buying opportunities in the market. Maybe you could elaborate a bit on this. Is it still the same opportunities you see as you saw last year?
We see a lot of brownfield opportunities and a lot of these brownfield opportunities. They have been a lot of big production facilities and I gave the quote of my father before about the energy. Energy has been a really big problem in Europe and many of these, of these large production facilities today they need to reduce their footprint. There is a lot of brownfields coming available in various markets and we are very much looking at them because mostly they also come with a very large electricity connection and it offers a lot of opportunity to us to exploit that. They are not the same as last year, they are the same from type as last year but there is a lot more of them in the market today.
I also have the feeling that although in some places there is very tight competition for them because we're all looking at the same thing, in some other places we have less competition and we seem to be able to convince the local politicians with all the experience which we have from before and having done this. It's very difficult also to manage the expectation of the local politicians about what are you going to do with a large brownfields or where there was a lot of workforce employment and a lot of things generated overall this year. How are you going to treat it?
For that I think we've built up a solid reputation and it gives us an edge in the markets to acquire these land plots and to have the trust of the local people being in a very close cooperation with them to try to unlock the potential of these land plots. We see that there is quite some, you can see it in our rental thing. There is quite some movement in the markets. There is a lot of onshoring ongoing but there is also a lot of movement from different kinds of companies coming back or coming to Europe because they can't go anywhere else anymore or they can't go to some other places. I am very confident that we can keep on building up really land plots which are in super locations and unlock their future profit contribution to VGP in the short-term.
Thank you.
The next question comes from Steven Boumans from ABN AMRO-ODDO BHF. Please go ahead.
Hi, good morning and thank you for taking my question. Could you please provide some information on the expected performance fee of the first Allianz joint venture? To get some feeling of the proceeds, maybe what would be the amount if it would have closed today, and maybe second, could you provide an expected range of what you see as likely given today's markets? Any general comments to understand these proceeds would be very welcome.
Thank you for the question. I'll take it. It is correct that in some of the Allianz or in the joint venture there is a promote structure of which the first one is to come to maturity in May 2026. At the moment it's not entirely, we need to sit with Allianz and define the mechanism. It was always, oh, we prolonged the promote with 10, we prolonged the JV term with 10 years, what, two years ago. We need to redefine a bit how we are going to pay out the promote and how we're going to calculate it. This is a negotiation or a talk that needs to go on with Allianz. I expect that by the year end we will have further clarity on that and that we will then take the necessary provisions for that in our books. At the moment it's difficult to ascertain.
Okay,
The next question comes from Rob Jones from BNP Paribas. Please go ahead.
That was a bit quick.
Maybe we can tell him.
Hi, it's Rob Jones. Is Steven still answering his question or is it myself who's answering?
Yeah, I think the mic is now only open for you, Rob. Indeed, it was a bit cut.
Okay, no worries, we catch him off.
It's artificial intelligence.
No worries.
It's a new tool.
Maybe we can come back soon.
Yes.
Yeah, apologies to the.
Just a quick one. No worries, just very quick one. Really appreciate the JV EPRA earnings, that's really helpful. Is there a group EPRA earnings figure for H1 you can give, and then just going back to that promote, I was expecting your answer to be we've got a spreadsheet. This is implicitly the number in terms of if it closed today, but obviously there's lots of moving parts between now and 2026. I was kind of surprised to get the answer around we've got to go back to Allianz and renegotiate the structure or the way the payment mechanism works.
I guess linked to that statement, I wonder if there are any other JV promotes that you have on your other five JVs and how we should think about the likelihood of getting a as to whether those structures in terms of the promote, if they exist, are set in stone or whether actually when it gets to kind of year 10, there needs to be a new debate. Actually, from a shareholder perspective, there isn't a guarantee of a certain quantity of future income coming in relation to that promote structure.
Rob, the initial documentation which we have with Allianz where we have. Yes, there is a promote structure in four of the five JVs. There is one which has no promote structure, which is the Deka one. All the others have a similar or exactly copy of the promote structure and the Allianz deal. It was negotiated in 2016 back and then there was the idea of having an exit in the year 2026 at the end of the 10-year running on which there are a lot of parameters set in the event of a liquidation. Two years ago, we have prolonged together with Allianz the running part of the JV, the investment period of the JV, with another 10 years until 2036. There is no liquidation event until 2036 for C at the moment, and it has been defined that we are entitled to a promote, which is exactly.
Yes, there is an Excel sheet, but there are a couple of things which we need to define with Allianz because they are different. There is no liquidation at the moment, so we need to really go back and really discuss it with them. We don't want to give you a number which is not accurate because then you are going to calculate with something. I mean, it's different, more or less. Give us a little bit of time, please, to the end of the year and then I hope that we can give you clarity on this. Yeah.
EPRA earnings.
The EPRA earnings I can give you a number, but you always have to take into account that VGP is also a developer, is also a renewable energy company. It would be roughly, I think around EUR 52 million, EUR 53 million. If you calculate it and it's easily calculatable, you take the proportional income statement I have shared before. You take out the revaluation gains and the deferred taxation depreciation on the solar energy and then the early repayment on the bond of EUR 5 million. If you take that all back, then you come roughly around EUR 53 million.
Of course, the EPRA earnings does not reflect the development profits that we are able to make and it reflects the full cost of our admin, our administration expenses, which of course are also for a large part, as you can see in the segmentation of the EBITDAs, allocated or representative for our development part of the business.
I would say that 80% of our cost structure is around development and land acquisition, and it's not fair to compare an EPRA metrics, which is really made for a REIT, towards us where you should split up the company then and say we'll look at it from the investment part of view, where is the rental income and the allocated, and that is the. There is an EPRA metrics which you can also easily calculate. We don't give it on purpose because we don't think it's suitable to use on us in this structure as we are.
Thank you very much. Cheers. Thank you.
Bye bye. Thank you.
I think that was the last question.
This is the end of the Q and A session. I hand the conference back to the speakers for any closing comments.
I just want to thank you all for having been on the call. If there are any other questions, we are gladly available for a phone call with you. I wish you all good luck and I hope you do the same to us. Thank you. Bye bye.
Speak so soon.
Bye bye.
Bye bye.
Thank you for participating.