Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — FY2012 Earnings Presentation
38 slides from Warehouses De Pauw SA's earnings presentation, Feb 13, 2013
Slide 1: WDP FY 2012 results
WDP FY 2012 results February 13, 2013
Slide 2: Agenda
Agenda 2 Introduction WDP in a nutshell Highlights FY 2012 Operational review Financing structure Results analysis WDP share New ambition 2013-16 Outlook 2013
Slide 3: Introduction by Mark Duyck - Chairman
Introduction by Mark Duyck - Chairman 3 “It’s Getting Better All The Time” The Beatles
Slide 4: WDP in a nutshell
WDP in a nutshell 4 Pure player in warehouse sector Developments Acquisitions Sustainability New build Portfolios BREEAM Refurbishments Sale & rent back Renewable energy Active & flexible investor Built on solid foundations Creating long-term partnerships Supported by defensive REIT status Focus on
Slide 5: Prioritize controlled growth
Prioritize controlled growth 5 Shareholders Clients • Improve earnings visibility • Build long-term partnerships • Access to debt & equity markets • Offer creative deal structuring & improve services • Enhance return on equity & control risks • Diversify risk exposure & create efficiency gains Win/w
Slide 6: Built on strong fundamentals
Built on strong fundamentals 6 > 95 % Historical average occupancy rate >8% Consistently high portfolio yield < 10 % Operating expenses as a % of revenues <4% Controlled cost of debt 55-60 % Constant capital structure synchronizing debt & equity issuance # 35 Headcount – combining SME spirit & large
Slide 7: Highlights FY 2012
Highlights FY 2012 7 ■ Operational ■ Confirmation of Benelux market leadership (deployment in the Netherlands) ■ Strong fundamentals sustained (occupancy at 97% & lease duration at 7y) ■ Gross investment volume realized of ca. EUR 185m (portfolio of EUR 1.2bn) ■ Financial ■ Active balance sheet mana
Slide 8: Highlights FY 2012
Highlights FY 2012 8 200,0 200,0 175,0 175,0 150,0 150,0 125,0 125,0 100,0 100,0 75,0 75,0 50,0 50,0 25,0 25,0 - - Portfolio growth 2012 (EUR m) Funding sources 2012 (EUR m) capex existing portfolio retained earnings solar panels new equity (*) pre-let (re-)developments disposals acquisitions change
Slide 9: Highlights FY 2012
Highlights FY 2012 9 KEY FIGURES Operational 31.12.2012 31.12.2011 Fair value of real estate portfolio (incl. solar panels) (EUR m) 1.163,1 989,4 Gross rental yield (incl. vacancy) (%) 8,2% 8,3% Net initial yield (EPRA) (%) 7,4% 7,5% Average lease duration (till first break) (y) 7,2 7,2 Occupancy ra
Slide 10: Geographical footprint
Geographical footprint 10 Portfolio fair value split FY 2012 (*) Netherlands 33% Czech Republic •Value: EUR 25m •Gross yield: 10.5% •Vacancy rate: 0.0% •39,000 m² buildings Belgium •131,000 m² land France 55% 7% Czech Republic 2% Romania 2% TOTAL Romania •Value: EUR 1,095m •Value: EUR 25m •Gross yie
Slide 11: Purchases
Purchases 11 Transaction Country Type Investment Lake Side Portfolio NL logistics portfolio EUR 114m (*) ■ 6 properties transferred during H1 2012 EUR 83m ■ 2 pre-let projects acquired after delivery in Q4 2012 EUR 22m ■ 1 extra property added to Lake Side Portfolio in Q4 2012 EUR 9m Londerzeel BE i
Slide 12: Lake Side portfolio, Londerzeel, Zwijndrecht, Barneveld purchases
Lake Side portfolio Londerzeel Purchases Barneveld Zwijndrecht 12
Slide 13: Disposals
Disposals 13 Transaction Country Type Divestment Realized ■ Doornik BE semi-industrial EUR 5m ■ Sint-Niklaas BE land reserve EUR 3m ■ Sint-Katelijne-Waver BE logistics EUR 2m In execution ■ WDP CZ CZ logistics & retail EUR 25m ■ Aalst, Wieze BE logistics EUR 10m Optimizing portfolio ~ EUR 45m dispos
Slide 14: Projects executed
Projects executed 14 Location Country Surface Completion Tenant Mollem BE 3,200 m² Q1 2012 Lactalis Mollem BE 3,100 m² Q2 2012 Vemoflex Venlo (*) NL 15,000 m² Q2 2012 Arrow Electronics Schiphol NL 10,000 m² Q3 2012 Rapid Willebroek BE 15,000 m² Q4 2012 Distrilog Ternat BE 10,000 m² Q4 2012 ATS, Bpos
Slide 15: Projects executed
Mollem Mollem Projects executed Schiphol Venlo 15
Slide 16: Projects executed
Ternat Alphen aan den Rijn Projects executed 16
Slide 17: Projects in execution (pre-let)
Projects in execution (pre-let) 17 Location Country Surface Completion Tenant Zwijndrecht BE 20,000 m² Q4 2013 Van Moer Nivelles BE 4,000 m² Q4 2013 GLS Aalst BE 3,000 m² Q4 2013 Tech Data Total 27,000 m² Total capex of EUR 11m Yield on total cost minimum 8%
Slide 18: Development potential (uncommitted)
Development potential (uncommitted) 18 Location Country Buildable surface (*) Sint-Niklaas BE 16,000 m² Nivelles BE 8,000 m² Courcelles BE 10,000 m² Trilogiport BE 50,000 m² (**) Heppignies BE 80,000 m² Libercourt FR 24,000 m² Various RO tbd Land positions with a fair value of EUR 40m Initiation sub
Slide 19: Development potential: Heppignies
Development potential: Heppignies 19
Slide 20: Sustainability
Sustainability 20 ■ Investments renewable energy ■ Realized projects to cover rooftops of 6 sites in BE/RO with 1.5MWp solar panels ■ Total of 16MWp solar panels in operation on rooftops in Belgium & Romania ■ FY 2012: solar panel income stands for 8% of revenues ■ Various initiatives to reduce CO2
Slide 21: Occupancy
Occupancy 21 ■ Continued high occupancy ■ Occupancy rate 97.3% end 2012 (vs. 96.7% end 2011) ■ Lease renewal rate of 90% in 2012 ■ More than 70% of rental breaks in 2013 already secured year-to-date Historical occupancy rate Lease maturity profile (till first break) 40% 8,0 100,0% 35% 7,0 97,5% 30%
Slide 22: Diversified client base…
Diversified client base… 22 ■ Well-spread tenant profile ■ Active in multiple industries & predominantly large (inter)national corporates ■ Healthy mix between end-users & logistic service providers ■ Top tenants spread over multiple buildings / businesses / countries (max. building risk <5%) Top te
Slide 23: … with long-term leases
… with long-term leases 23 ■ Income visibility ■ Circa 35% of contracts have a duration of minimum 10y ■ Investments in 2012 realized with an average lease duration of > 10y ■ Strong historical client retention rate Lease duration Weighted average lease duration (y) Till first break Till expiration
Slide 24: FY 2012 Consolidated results
FY 2012 Consolidated results 24 EUR x 1.000 2012 2011 % Growth Net current profit Net rental result 75.384 63.103 19,5% Income from solar energy 6.275 6.209 1,1% Other operating income/charges -324 -218 48,4% Property result 81.335 69.094 17,7% Property costs -2.149 -1.403 53,2% Corporate overheads
Slide 25: FY 2012 Consolidated results
FY 2012 Consolidated results 25 Per share data 2012 2011 % Growth Net current result (EPRA) (*) 3,67 3,42 7,4% Portfolio result 0,12 0,21 n.r. IAS 39 result -1,30 -1,34 n.r. Net profit 2,49 2,29 n.r. Weighted average number of outstanding shares 14.194.272 12.958.501 9,5% Net current result (**) 3,4
Slide 26: FY 2012 Consolidated B/S
FY 2012 Consolidated B/S 26 EUR x 1.000 31.12.2012 31.12.2011 31.12.2010 Intangible fixed assets 213 310 422 Property investments 1.060.615 908.089 821.511 Other tangible fixed assets (incl. solar panels) 69.018 68.185 65.773 Financial fixed assets 11.396 11.418 12.535 Financial lease receivables -
Slide 27: FY 2012 Consolidated B/S
FY 2012 Consolidated B/S 27 EUR x 1.000 31.12.2012 31.12.2011 31.12.2010 Capital 117.349 106.336 97.853 Issue premiums 138.428 94.168 63.961 Reserves 159.078 171.127 176.870 Net result of the financial year 35.326 29.704 32.602 Equity capital 450.181 401.334 371.286 Long-term financial debt 481.446
Slide 28: Financial management
Financial management 28 ■ Management of capital structure ■ Matching property acquisitions with simultaneous debt & equity issuance ■ Raised EUR 55m equity at average issue price of EUR 38.7 (*) ■ Debt ratio of 56.1% and expected remain stable in 2013 (**) ■ New financing ■ New credit facilities wit
Slide 29: Financing structure
Financing structure 29 ■ Solid debt metrics ■ Debt ratio at 56.1% ■ ICR at 3.4x ■ Cost of debt at 3.6% Debt composition Evolution hedge ratio 90% 80% Long-term Commercial 70% bilateral paper 22% credit 60% facilities 50% 71% 40% 30% Leasing 3% 20% Straight 10% loans 4% 0% 2013 2014 2015 2016 2017 20
Slide 30: Financing structure
Financing structure 30 ■ Well-spread debt maturities ■ Duration of outstanding debt of 2.7y (incl. commercial paper) ■ Duration of long-term credit facilities of min. 3.6y and max. 4.2y (*) ■ Committed undrawn long-term credit lines of EUR 75m (**) Debt maturities (min.) (*) Debt maturities (max.) (
Slide 31: WDP share
WDP share 31 EUR 33.25 -2.94 3.67 0.52 0.14 34.64 NAV (EPRA) Dividend Net current Effect capital Portfolio result NAV (EPRA) 2011 distribution result increases & other 2012 13% return on equity Nearly 100% cash based
Slide 32: WDP share
WDP share 32 ■ Share statistics ■ NAV (EPRA) per share of EUR 34.6 at end 2012 ■ Market cap of ca. EUR 700m ■ Free float of 71% - Family Jos De Pauw 29% WDP share price vs. NAV EPS & DPS history 60 4,00 50 3,50 3,00 40 2,50 30 2,00 1,50 20 1,00 10 0,50 - 0 2000 2001 2002 2003 2004 2005 2006 2007 200
Slide 33: WDP share
WDP share 33 ■ Return of WDP share Average since Total return 2012 IPO / year WDP 37,0% 13,3% GPR 250 Belgium 5,6% 4,7% GPR 250 Europe 29,5% 6,7% BEL 20 18,8% -1,7%
Slide 34: Executing on 2011-13 growth plan
Executing on 2011-13 growth plan 34 2013 target 2012 EUR 3.73 (+20%) EUR 3.67 (+18%) 2011 EUR 3.42 (+10%) 2010 EUR 3.11 (basis) Target EPS nearly achieved after 2 years Including reinforcement of equity base
Slide 35: New growth plan 2013-16
New growth plan 2013-16 35 ■ Ambition to grow EPS in 4 years by 20-25% to EUR 4.40-4.60 by 2016 ■ …based on: ■ Increasing portfolio with 50% or EUR 600m in existing markets, especially the Benelux ■ Acquisitions (direct, sale & rent back, portfolios) ■ Developments for own account on existing and/or
Slide 36: Outlook 2013
Outlook 2013 36 ■ Expected net current result of minimum EUR 60m… (*) ■ …based on: ■ high occupancy (at least 96% end 2013) ■ reinvestment of proceeds from disposals and optional dividend assuming a constant capital structure with a gearing ratio around 56% ■ Net current result per share of minimum
Slide 37: Disclaimer
Disclaimer 37 Warehouses De Pauw Comm. VA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a public closed- end property investment company, incorporated under Belgian law and listed on Euronext Brussels. This presentation contains forward-looking inform
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