VGP (ENXTBR:VGP) Stock Trades At A Discount As Leverage Lingers

VGP stock came into this earnings print treading water, roughly flat over the past week and month, and trading on a P/E around 10.7x that many investors already viewed as cautious for a logistics landlord with growth ambitions. The headline today is not a flashy profit spike. It is the grind of recurring rental power, with proportional net rental and renewable income at €128.2m and an almost full portfolio at 98% occupancy, set against a balance sheet that still carries meaningful leverage.

Is VGP really a bargain at a 10.7x P/E versus peers on 23.8x, or is that discount a warning sign given the €168.1m one off gain and weaker cash coverage metrics? See how the current market price lines up against intrinsic value in our valuation analysis for VGP

H1 2026 Earnings Summary

• Revenue (H1 2026 vs H1 2025): €67.959m vs. €105.494m (decline of 35.6%)
• Net Income (Excl. Extra Items, H1 2026 vs H1 2025): €119.785m vs. €180.525m (decline of 33.6%)
• Basic EPS (H1 2026 vs H1 2025): €4.26 vs. €6.61 (decline of 35.6%)
• Proportional Net Rental and Renewable Income (H1 2026 vs H1 2025): €128.2m vs. approximately €108.7m (increase of 17.9%)

Prefer clear visuals instead of another page of dense earnings tables? View a full, at-a-glance picture of VGP's balance sheet strength and debt profile in our interactive company report for VGP.

VGP bullish story backed by recurring income

For a bullish view, the key question is whether VGP is genuinely building a more resilient, cash driven platform. Proportional net rental and renewable income of €128.2m, up 17.9% year on year, points in that direction. Occupancy at 98% and committed annualised rent moving from €489m to about €496m support the idea that tenants are sticking and new leases are being added. With 44 buildings under construction and renewables EBITDA doubling to €4.3m, the earnings mix is tilting further toward contracted and service based income.

Bearish concerns around growth quality and leverage

Bears will point to the 35.6% drop in reported revenue and a 33.6% fall in net income excluding extra items, which temper the headline profit before tax of €140.9m that includes a €168.1m one off gain. That raises questions about how clean VGP earnings are. Proportional loan to value near 49% and higher average interest costs around 3% show that leverage is meaningful. Even with €1.1b of liquidity and bond refinancing progress, the direction of cash earnings needs to do more of the heavy lifting over time.

Compare VGP's 17.9% growth in proportional net rental and renewable income and 98% occupancy with the 35.6% drop in reported revenue and weaker cash coverage, then consider whether analysts think this earnings mix deserves a higher multiple or a continued discount. See the consensus price target analysis for VGP to check how Wall Street price targets stack up against the current €81.1 share price.

Take Control Of Your Next Move

If the mix of recurring rental income, one off gains and leverage at VGP has you watching for a cleaner earnings trend, register free with Simply Wall St and add it to a Watchlist to track price against fair value and spot a potential entry that fits your plan. After you build a position, use the Portfolio Command Center to keep your holdings organised and surface only the most important updates that could affect your thesis. For a longer term view, tap into the Community to see how other investors are interpreting new data points and risks. This combination helps you spot hidden catalysts and potential red flags early so you can stay ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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