Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — FY2011 Earnings Presentation
32 slides from Warehouses De Pauw SA's earnings presentation, Feb 15, 2012
Slide 1: Full Year Results 2011
Full Year Results 2011 February 15, 2012
Slide 2: Agenda
Agenda ■ Introduction ■ Highlights FY 2011 ■ Operational review ■ Portfolio overview ■ Financing structure ■ Results analysis ■ WDP share ■ Outlook ■ Visuals
Slide 3: Introduction
Introduction ■ By Mark Duyck, Chairman “Timeo Danaos et dona ferentes” Vergilius, Aeneis
Slide 4: WDP in a nutshell
WDP in a nutshell Pure player in warehouse sector Developments Acquisitions CO2 abatement ■ 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 sta
Slide 5: Highlights FY 2011
Highlights FY 2011 ■ Operational ■ New important lettings bring occupancy to >96% (Wallonia, France) ■ Strategic acquisitions (Wereldhave, Genk, Betafence, Alphen, solar panels) ■ Market leader Benelux (deployment in second home market Netherlands) ■ Financial ■ Success of optional dividend & contri
Slide 6: Highlights FY 2011
Highlights FY 2011 100,0 100,0 75,0 75,0 50,0 50,0 25,0 25,0 - - Portfolio growth 2011 (EUR m) Funding sources 2011 (EUR m) solar panels retained earnings new equity (*) pre-let (re-)developments disposals acquisitions change in net financial debt Global investment volume of EUR 100m Based on a cons
Slide 7: Highlights FY 2011
Highlights FY 2011 KEY FIGURES 31.12.2011 31.12.2010 Operational Fair value of real estate portfolio (incl. solar panels) (EUR m) 989,4 889,2 Gross rental yield (incl. vacancy) (%) 8,3% 8,3% Net initial yield (EPRA) (%) 7,5% 7,5% Average lease duration (till first break) (y) 7,2 6,1 Occupancy rate (
Slide 8: Purchases
Purchases Transaction Country Type Investment ■ Wereldhave NL logistics portfolio EUR 42m ■ Genk BE warehouse EUR 9m ■ Betafence BE sale & rent back EUR 16m ■ Alphen ad Rijn NL logistic asset EUR 7m ■ Heppignies BE strategic land position EUR 2m (*) ■ Solar panels BE 1.8MWp on rooftops EUR 4m Total
Slide 9: Disposals
Disposals Transaction Country Type Divestment ■ Anderlecht BE 8th floor office building EUR 0.3m ■ Wespelaar BE older logistic building EUR 1.9m ■ Boom BE undeveloped land EUR 0.6m ■ Receivable NL Kuehne + Nagel EUR 2.8m Total disposals of EUR 6m Smaller non-strategic assets
Slide 10: Projects executed
Projects executed Location Country Surface Completion Tenant ■ Merchtem BE 3,000m² Q3 2011 Aldi & Brico ■ Flémalle BE 5,700m² Q3 2011 DPD ■ Libercourt FR 6,000m² Q3 2011 Condi Services ■ Oarja (*) RO 5,000m² Q3 2011 Röchling ■ Oarja (*) RO 7,000m² Q4 2011 Pelzer-Pimsa ■ Puurs BE 14,000m² Q4 2011 Fem
Slide 11: Projects in execution (pre-let)
Projects in execution (pre-let) Location Country Surface Completion Tenant ■ Mollem BE 3,200m² Q1 2012 Lactalis ■ Willebroek BE 15,000m² Q3 2012 Distrilog ■ Schiphol NL 10,000m² Q3 2012 Rapid Total 28,200m² (**) Total capex of EUR 24m (EUR 4m expensed to date) Yield on total cost above 8% (*) 51% WD
Slide 12: Projects on hold (unlet)
Projects on hold (unlet) Location Country Surface Strategy ■ Venlo NL 15,000m² on hold, prospecting clients ■ Ternat BE 10,000m² renovation in function of tenants Total 25,000m² Investment value of EUR 16m (*) 25,000m² down from 45,000m² y/y (*) Limited cash out to finish sites.
Slide 13: Development potential (uncommitted)
Development potential (uncommitted) Location Country Buildable surface (*) ■ St.-Niklaas BE 28,000m² ■ Nivelles BE 25,000m² ■ Courcelles BE 10,000m² ■ Trilogiport BE 50,000m² (**) ■ Heppignies BE 80,000m² ■ Libercourt FR 24,000m² ■ Neprevaska CZ 10,000m² ■ Various RO tbd Land positions with an inves
Slide 14: Sustainability
Sustainability ■ Investments renewable energy ■ Covered rooftops of 7 sites in Belgium with 1.8MWp solar panels ■ Total of 15MWp solar panels in operation on rooftops in Belgium ■ 2011: solar panel income stands for 9% of revenues ■ Various initiatives to reduce CO2 footprint ■ Initiated sustainable
Slide 15: Geographical footprint
Geographical footprint Portfolio fair value split end 2011(*) Netherlands Czech Republic 23% • Value: EUR 25m • Gross yield: 10.5% Belgium • Vacancy rate: 0.0% 63% France • 39,000m² buildings 9% • 131,000m² land Czech Republic Romania 3% 3% Romania Total • Value: EUR 25m • Gross yield: 9.5% • Value:
Slide 16: Occupancy
Occupancy ■ Strong leasing activity in 2011 ■ Occupancy rate 96.7% end 2011 (vs. 95.7% end 2010) ■ Lease renewal rate of 90% ■ Leasing up of vacant space in Wallonia, France Historical occupancy rate Lease maturity profile (till first break) 100,0% 40% 8,0 97,5% 35% 7,0 30% 6,0 95,0% 25% 5,0 92,5% 2
Slide 17: Diversified client base
Diversified client base< ■ Well-spread tenant profile ■ Active in multiple industries & predominantly large (inter)national corporates ■ Top tenants spread over multiple buildings / businesses / countries ■ Strong historical client retention rate Top tenants Tenant industry activity Univeg Group 15%
Slide 18: with long-term leases
<with long-term leases ■ Income visibility ■ Univeg & solar panels stand for a quarter of income for 17y ■ Average lease duration till first break of investments in 2011 equals nearly 10y ■ 35% of contracts have a duration of minimum 10y Lease duration Avg duration Avg duration (in years) till first
Slide 19: FY 2011 Consolidated results
FY 2011 Consolidated results EUR x 1.000 FY 2011 FY 2010 % Growth Net current profit Net rental result 63.103 57.985 8,8% Income from solar energy 6.209 5.029 23,5% Other operating income/charges -218 -349 -37,4% Property result 69.094 62.665 10,3% Property costs -1.403 -1.285 9,2% Corporate overhea
Slide 20: FY 2011 Consolidated results
FY 2011 Consolidated results Per share data FY 2011 FY 2010 % Growth (*) Net current result (EPRA) 3,42 3,11 9,7% Portfolio result 0,21 -0,33 n.r. IAS 39 result -1,33 -0,18 n.r. Net profit 2,29 2,60 n.r. Weighted average number of outstanding shares 12.958.501 12.533.938 3,4% (**) Net current result
Slide 21: FY 2011 Consolidated B/S
FY 2011 Consolidated B/S EUR x 1.000 31.12.2011 31.12.2010 31.12.2009 Intangible fixed assets 310 422 287 Property investments 908.089 821.511 815.392 Other tangible fixed assets (incl. solar panels) 68.185 65.773 55.232 Financial fixed assets 11.418 12.535 11.737 Financial lease receivables - 107 1
Slide 22: FY 2011 Consolidated B/S
FY 2011 Consolidated B/S EUR x 1.000 31.12.2011 31.12.2010 31.12.2009 Capital 106.336 97.853 97.853 Issue premiums 94.168 63.961 63.961 Reserves 171.127 176.870 204.592 Net result of the financial year 29.704 32.602 437 Equity capital 401.334 371.286 366.843 Long-term liabilities 477.594 411.691 413
Slide 23: Financial management
Financial management Signed new credit facility to fund Dutch portfolio & diversify banking pool 2011 Refinanced 2012 debt maturities Raised equity to maintain loan-to-value at 55% Negotiated new credit 2012 facility to fund growth Important extension of 2013 debt maturities 7,2y 6,3y 2012 & 4,1y be
Slide 24: Financial management
Financial management ■ Management of capital structure ■ Loan-to-value stable at 55% ■ Including EUR 100m investment volume realized in 2011 ■ Reinforcing equity base by EUR 45m (optional dividend, Betafence, retained earnings) ■ New financing ■ Refi 2012-13: BNPPF EUR 25m and ING EUR 75m ■ New fina
Slide 25: Financing structure
Financing structure ■ Solid debt metrics ■ Debt ratio stable at 55% ■ ICR at 3.1x ■ Cost of debt at 4.0% Debt composition Evolution hedge ratio 80% Long-term 70% bilateral Commercial credit paper 20% 60% facilities 50% 73% 40% 30% Leasing 5% 20% Straight 10% loans 2% 0% 2011 2012 2013 2014 2015 2016
Slide 26: Financing structure
Financing structure ■ Lengthening of debt maturities ■ Duration of outstanding debt of 3.5y (*) ■ Duration of long-term credit facilities of min. 4.1y and max. 4.9y (**) ■ Committed undrawn long-term credit lines of EUR 70m Debt maturities (min.) (*) Debt maturities (max.) (*) 140 140 120 120 100 10
Slide 27: WDP share
WDP share ■ Share statistics ■ NAV (EPRA) per share of EUR 33.3 vs. share price of EUR 39.0 (*) ■ Market cap of ca. EUR 525m ■ Free float of 70% - Family Jos De Pauw 30% 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 2
Slide 28: WDP share
WDP share Return of WDP share 2011 Average since IPO/Year WDP 8.6% 11.6% GPR 250 Belgium 4.7% -5.0% GPR 250 Europe -10.4% 5.0% BEL 20 -19.2% -3.2%
Slide 29: Delivering on strategic growth plan
Delivering on strategic growth plan Strategic pillar Achievements ■ Letting projects ■ Reduction of vacancy standing portfolio ■ Secured pre-lettings for existing projects ■ Delivered first projects in Romania ■ CO2 investment plan ■ Today 15 of 30MWp ■ Investigating various opportunities ■ BREEAM &
Slide 30: Outlook 2012
Outlook 2012 ■ Expected net current result of minimum EUR 49m (*)S ■ Sbased on good fundamentals (high occupancy, long lease duration) ■ Expected dividend +5% to EUR 3.10 per shareS ■ Sbased on a payout ratio of 90% ■ Gearing ratio expected of around 55% ■ Expected average occupancy rate of at least
Slide 31: Disclaimer
Disclaimer Warehouses De Pauw Comm.VA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a closed-end property investment company, incorporated under Belgian law and listed on Euronext Brussels. By its very nature, any investment in financial instruments c
Slide 32: Question time
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