Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — Q1 2024 Earnings Presentation
39 slides from Warehouses De Pauw Sa's earnings presentation, Apr 19, 2024
Slide 1: Q1 2024 Results
Q1 2024 RESULTS 19 April 2024 1 www.wdp.eu
Slide 2: Agenda
AGENDA • Q1 2024 highlights • New growth plan #BLEND2027 • Q1 2024 activity report • Results and balance sheet • Financial management • WDP share • Outlook 2024 2
Slide 3: Q1 2024 Solid start of our growth ambitions
Q1 2024 Solid start of our growth ambitions #BLEND2027 ROBUST BALANCE SHEET STRONG INVESTMENT PIPELINE LOAN-TO-VALUE 34% 500 DEVELOPMENTS ACQUISITIONS million euros ENERGY 6.6 x NET DEBT / EBITDA (ADJ.) INVESTMENT PIPELINE OCCUPANCY RATE PORTFOLIO Q1 2024 FY 2024e 0.33 +7% y/y euros 1.47 +5% y/y eur
Slide 4: #BLEND2027 Combining multiple drivers in multiple markets
#BLEND2027 Combining multiple drivers in multiple markets Growth plan kicked off with confidence BUILD LOAD EXTRACT NEUTRALISE DISCIPLINED Continued structural 200 million euros in Indexation of leases by Scaling up PV capacity to Net debt / EBITDA (adj.) demand drivers and yielding assets added in
Slide 5: #BLEND2027 New growth plan 2024-27
#BLEND2027 New growth plan 2024-27 5
Slide 6: #BLEND2027 Combining multiple drivers in multiple markets
#BLEND2027 Combining multiple drivers in multiple markets BUILD B Robust structural demand drivers L LOAD Developments and acquisitions BOLSTERING OUR EUROPEAN E EXTRACT Capturing internal growth AMBITIONS(1) N NEUTRALIZE Decarbonizing logistics supply chain D DISCIPLINED Strong financial position a
Slide 7: #BLEND2027 Ambition 2027
#BLEND2027 Ambition 2027 CAPEX EPRA EPS 1.5bn euros (2) 500m euros/y with full-year impact in 2027 1.70 euros 1.36 euros DPS COST OF DEBT <2.5% +6% CAGR(1) NET DEBT / EBITDA (ADJ.) ~8x Key assumptions • Sustained structural demand in logistics real estate, with a temporary cyclical slowdown and a ca
Slide 8: Activity Report Q1 2024
ACTIVITY REPORT Q1 2024 8 WDPORT OF GHENT (BELGIUM)
Slide 9: Acquisitions
Acquisitions Optimization of existing clusters EXISTING WAREHOUSES 33,000 m² LAND RESERVE 268,000 m² Capex(1) 40m euros Gross initial yield(2) 6.6% (1) Cost to come: 34 million euros. (2) Excluding land reserves. 9
Slide 10: High-end view location
A12 E34 E40 ANTWERP EXISTING WAREHOUSES E19 10,600 m² GHENT BRUSSELS FULLY LET HIGH-END VIEW LOCATION WILLEBROEK A12 ANTWERP-BRUSSELS BROWNFIELD 50,000 m² DEVELOPMENT POTENTIAL 10
Slide 11: Projects executed
PROJECTS EXECUTED 11 MOLLEM (BELGIUM)
Slide 12: Projects executed
Projects executed Capex(1) 36m euros Gross initial yield(2) 5.9% 9y Lease duration (1) Gross yield in the Benelux: 5.5% and in Romania: 6.9%. 12
Slide 13: Projects under development
PROJECTS UNDER DEVELOPMENT 13 LOKEREN (BELGIUM)
Slide 14: Projects under development
Projects under development(1) (1) Based on 100% of the investment for the fully consolidated entities (incl. WDP RO) and the proportionate share for the JV’s (i.e. 55% for Luxembourg and 29% for Gosselin-WDP). The lettable area for joint ventures is always shown on a 100% basis. 14
Slide 15: Projects under development
Projects under development(1) Capex(1) 379m euros Yield on cost (2) 6.7% Western-Europe: 6.4% and in Romania: 7.8% Cost to come: 234 million euros 11y 100% 70% Lease Green Pre-let(2) duration certified(3) (1) Based on 100% of the investment for the fully consolidated entities (incl. WDP RO) and the
Slide 16: Breda (The Netherlands)
16 BREDA (THE NETHERLANDS)
Slide 17: WDP Energy
WDP ENERGY Decarbonisation of supply chain Targeted capacity 350 MWp Installed capacity 113 MWp 187 MWp Solar capacity 2008 2022 Q1 2024 2027 76 MWp under development CAPEX 65m euros(1) Green Mobility Hub Green electricity through PV for warehouse EV charging infrastructure Batteries supporting EV c
Slide 18: Portfolio fair value split
Portfolio fair value split (1) Development potential ~1,800,000 m² Buildable surface (1) Excluding solar panels and including projects, land reserve and assets held for sale. Including the proportional share of WDP in the portfolio of the joint ventures (mainly WDP Luxembourg). In the IFRS accounts,
Slide 19: High-quality portfolio
High-quality portfolio WAREHOUSE QUALITY WAREHOUSE TYPE 48% Green certified(1) ▪ Locations on strategic logistic corridors with around 50% suitable for urban logistics ▪ Robust building quality, integrating sustainability & flexibility throughout lifecycle 8y Avg. age ▪ Diversified portfolio and int
Slide 20: Occupancy
Occupancy High occupancy and strong client retention HISTORICAL OCCUPANCY RATE LEASE MATURITY PROFILE (TILL FIRST BREAK) ▪ Occupancy rate of 98.4% on 31 March 2024 (vs. 98.5% end 2023) ▪ 70% of the 10% of leases maturing in 2024 extended ▪ Lease renewal rate of circa 90% over the last 10 years ▪ Lea
Slide 21: Diversified
Diversified Well-spread tenant profile TOP-10 TENANTS (EXCL. SOLAR ~26%) (1) TENANT INDUSTRY ACTIVITIES BE NL 15% Dedicated e-commerce ▪ Active in multiple industries and predominantly large (inter)national corporates ▪ Healthy mix between end-users and logistic service providers ▪ Top tenants sprea
Slide 22: Financial Results Q1 2024
FINANCIAL RESULTS Q1 2024 22 DE LIER (THE NETHERLANDS)
Slide 23: Consolidated results
Consolidated results Analytical P&L a1 2024 12023 A yly (abs.) A yly (%) Rental income, net of rental-related expenses 80,894 9,561 11.8% Indemnification related to early lease terminations ° ° ne . Income from solar energy 3,677 “58 1.6% a Other operating income/costs 2,944 1,661 ne Property result
Slide 24: Consolidated results
Consolidated results (1) Including solar panels. 24 (2) Including the proportional share of WDP in the portfolio of the joint ventures.
Slide 25: Consolidated results B/S
Consolidated results B/S in ) 31.03.2024 31.12.2023 A (abs.) A(%) Intangible fixed assets 1314 1,198 116 ne Investment properties 6,684,919 6,430,464 245,455 3.8% Other tangible fixed assets (solar panels inclusive) 170,377 166,037 4,341 2.6% Financial fixed assets 98,609 86,476 12,133, 14.0% Trade
Slide 26: Consolidated results B/S
Consolidated results B/S Metrics 31.03.2024 31.12.2023 A (abs.) Ah) IFRS NAV 20.7 20.2 04 21% EPRA NTA 20.5 20.1 04 2.0% EPRANRV 224 220 o4 1.8% EPRANDV 212 208 o4 2.0% ‘Share price 26.5 28.5 -2.0 7.2% Premium / (discount) vs. EPRA NTA 28.8% 41.5% 12.7% ne. Loan-to-value 34.4% 33.7% 0.7% ne. Debt ra
Slide 27: Aricestii Rahtivani (Romania)
27 ARICESTII RAHTIVANI (ROMANIA)
Slide 28: Financial management
Financial management Ensuring consistency of financial strategy Leverage Net debt / EBITDA (adj.)(1) Cost of debt Loan-to-value 6.6 x 1.7 % 34.4 % Coverage Baa1 BBB+ 7.3 Interest Coverage Ratio Hedge ratio 100 of financing % needs covered x 112 % Moody’s Fitch Financing ▪ 100% Refinancing next 24 mo
Slide 29: Debt overview
Debt overview Solid debt metrics and active liquidity management DEBT MATURITIES 82% Green 00 financing 00 00 00 60% Bank 00 financing 00 40% 00 Bonds 00 CP 100 0 0 0 0 0 0 0 0 0 0 1 0 0 0 ommercial paper straight loans Bonds ong term credit facilities (drawn) ong term credit facilities (undrawn) ▪
Slide 30: Hedging profile
Hedging profile Stable cost of debt despite increased interest rates 6y Average EVOLUTION COST OF DEBT EVOLUTION HEDGE RATIO(1) hedge duration 1 0% % % % 100% % 0% % 1% 0% 1% 0% 0% 0% 01 0 0 0 1 0 0 1 0 1% 0 % 0 % 0 % 0% 1 0 0 0 0 0 0 0 0 0 0 1 0 0 verage cost of debt (in %) uribor m (in %) Maturity
Slide 31: Prudent financial policy throughout the cycle
Prudent financial policy throughout the cycle Strict capital discipline and well-balanced capital structure based on Historic policy of not adding leverage against revaluations 34.4% 5.3% Loan-to-value EPRA NIY ✓ No leverage on historic revaluations ✓ No impact on Net debt / EBITDA ✓ Financial robus
Slide 32: Financial management driven by cash-flow leverage
Financial management driven by cash-flow leverage Strong track record of issuing equity to calibrate leverage 6.6 x 8.1x Net debt / 10-year EBITDA (adj.) average ✓ Real measure of leverage on the business ✓ Within control of management ✓ Not impacted by property valuations ▪ Policy: Net debt / EBITD
Slide 33: Share
SHARE 33 DEJ (ROMANIA)
Slide 34: Share statistics
Share statistics WDP Share 45 1.60 40 1.40 35 1.20 30 1.00 25 0.80 20 0.60 15 0.40 10 5 0.20 0 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 EPRA EPS (rhs) DPS (rhs) WDP share price EPRA NTA ▪ Market cap ~5.5bn euros
Slide 35: Outlook
OUTLOOK 35 CONTERN (LUXEMBOURG)
Slide 36: Outlook 2024
Outlook 2024 Guidance EPRA EPS DPS +5% +5% y/y y/y 1.47 euros 1.18 euros Underlying assumptions (1) : ▪ Impact from acquisitions and pre-let development completions in 2023-24 ▪ Organic growth of 3% mainly through CPl-linked indexation ▪ A minimum average occupancy rate of 98% and stable client paym
Slide 37: Q&A
Q&A 37
Slide 38: Joost Uwents, Mickael Van den Hauwe
Joost Uwents CEO joost.uwents@wdp.eu Mickael Van den Hauwe CFO Mickael.vandenhauwe@wdp.eu www.wdp.eu 38
Slide 39: Disclaimer
Disclaimer Warehouses De Pauw NV/SA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a public regulated real estate company, incorporated under Belgian law and listed on Euronext. This presentation contains forward-looking information, forecasts, beliefs