Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — WDP — H1 2015 Earnings Presentation
43 slides from Warehouses De Pauw SA's earnings presentation, Aug 7, 2015
Slide 1: H1 Results 2015
H1 RESULTS 2015 7 AUGUST 2015 1
Slide 2: Agenda
AGENDA > Highlights H1 2015 > Roll-out growth plan 2013-16 > Operational review > Portfolio metrics > Results analysis > Financing structure > WDP share > Outlook 2015 2
Slide 3: Highlights H1 2015 – Accomplishments
HIGHLIGHTS H1 2015 – ACCOMPLISHMENTS >97% Strong occupancy rate sustained 230m euros Net investment volume realized 2.8% New cost of debt after lengthening hedging instruments 14% Growth y/y in EPRA earnings per share 3
Slide 4: Highlights H1 2015 – Increase in Guidance
HIGHLIGHTS H1 2015 – INCREASE IN GUIDANCE OPERATIONAL RESULTS > Strong fundamentals FINANCIAL sustained (occupancy at > EPS for H1 2015 +14% y/y > Active balance sheet at 2.32 euros (*) ca. 97% and lease duration management (synchronized at 7y) debt and equity issuance) > Ambition of an EPS for > Gl
Slide 5: Highlights H1 2015 – Sound Metrics
HIGHLIGHTS H1 2015 – SOUND METRICS KEY FIGURES Operational 30.06.2015 31.12.2014 Fair value of real estate portfolio (incl. solar panels) (in million euros) (*) 1 805,9 1 567,3 Gross rental yield (incl. vacancy) (in %) 7,9 8,0 Net initial yield (EPRA) (in %) 7,1 7,3 Average lease duration (till firs
Slide 6: Ambitions Growth Plan 2013-16
AMBITIONS GROWTH PLAN 2013-16 > Ambition to grow EPS in 4 years by CAGR 6-8% to 4.70-5.00 euros in 2016 > … based on: ■ Increasing portfolio with 800m euros to 2bn euros in existing markets, especially the Benelux ■ Continuation of matching property acquisitions with synchronous debt and equity issu
Slide 7: Roll-out Growth Plan 2013-16
ROLL-OUT GROWTH PLAN 2013-16 2014 2015 2016 2013 > Roll out new > A “year of > Capitalizing on > Envisaged portfolio growth plan construction” Benelux platform of 2bn euros > 40% or 250m > Multiple new > Upscaling euros of pre-let projects ambitions of growth targeted in execution plan growth > Acce
Slide 8: Roll-out Growth Plan 2013-16
ROLL-OUT GROWTH PLAN 2013-16 ca. 420m euros acquisitions (**) ca. 85% of 800m euros targeted ca. 700m euros portfolio growth identified identified ca. 110m euros projects in ca. 170m execution (*) euros projects executed (*) Excluding long-term uncommitted development potential on land reserves and
Slide 9: Purchases 2015
PURCHASES 2015 Transaction Country Surface Type Asse BE 26,000 m² Logistic site Bornem BE 90,000 m² Logistic site Willebroek BE 15,000 m² Logistic site Moerdijk NL 41,000 m² Logistic site Breda NL 175,000 m² (*) Logistic site Barendrecht (1) NL 70,000 m² (*) Logistic site Barendrecht (2) NL 50,000 m
Slide 10: Purchases 2015
PURCHASES 2015 10
Slide 11: Projects Executed 2015
PROJECTS EXECUTED 2015 Location Country Surface Completion Tenant Vilvoorde BE 7,000 m² Q1 2015 Intertrans Schiphol Logistics Parc NL 14,000 m² Q1 2015 Kuehne + Nagel Zwolle NL 35,000 m² Q2 2015 wehkamp.nl Harderwijk NL 17,000 m² Q2 2015 Alcoa Total 73,000 m² > Total capex of ca. 67m euros > Yield o
Slide 12: Belgium – Vilvoorde (Intertrans)
BELGIUM – VILVOORDE (INTERTRANS) A 14,000 m² warehouse in the Cargovil zoning 12
Slide 13: Netherlands – Schiphol Logistics Parc (Kuehne + Nagel)
NETHERLANDS – SCHIPHOL LOGISTICS PARC (KUEHNE + NAGEL) BREEAM-certified warehouse of 14,000 m² for centralizing Kuehne + Nagel’s airfreight activities at Schiphol 13
Slide 14: Netherlands – Zwolle (wehkamp.nl)
NETHERLANDS – ZWOLLE (WEHKAMP.NL) BREEAM-certified e-commerce warehouse, developed for wehkamp.nl of around 35,000 m² 14
Slide 15: The Netherlands – Harderwijk (Alcoa)
THE NETHERLANDS – HARDERWIJK (ALCOA) Development of warehouse of around 17,000 m², tailor-made for Alcoa 15
Slide 16: Projects in Execution (Pre-let)
PROJECTS IN EXECUTION (PRE-LET) Location Country Type Surface Completion Tenant Londerzeel BE Redevelopment 9,500 m² Q3 2015 Lantmännen Unibake Bornem BE New build 18,000 m² Q4 2015 DHL Supply Chain Willebroek BE New build 15,000 m² Q2 2016 Damco Soesterberg NL New build 7,000 m² Q4 2015 Hypsos Pape
Slide 17: Belgium – Londerzeel (Lantmännen Unibake)
BELGIUM – LONDERZEEL (LANTMÄNNEN UNIBAKE) Development of 9,500 m² deep- freeze warehouse for 30,000 pallet places 17
Slide 18: The Netherlands – Soesterberg (Hypsos)
THE NETHERLANDS – SOESTERBERG (HYPSOS) Development of 7,200 m² warehouse space with adjoining offices 18
Slide 19: The Netherlands – Papendrecht (Staay Food Group)
THE NETHERLANDS – PAPENDRECHT (STAAY FOOD GROUP) (*) Development of 7,000 m² tailor- made warehouse space with adjoining offices (*) Project in execution as part of the recently announced transaction at Alblasserdam/Papendrecht. 19
Slide 20: Romania – Braila (Yazaki)
ROMANIA – BRAILA (YAZAKI) Development of 16,000 m² of warehouse space tailor made for Yazaki with possible extension 20
Slide 21: Romania – Ploiesti (Federal Mogul)
ROMANIA – PLOIESTI (FEDERAL MOGUL) Development of 12,000 m² of warehouse space for Federal Mogul 21
Slide 22: Romania – Brasov (Inter Cars)
ROMANIA – BRASOV (INTER CARS) Development of 5,000 m² tailor- made warehouse space for Inter Cars – doubling its existing site 22
Slide 23: Development Potential (Uncommitted)
DEVELOPMENT POTENTIAL (UNCOMMITTED) Location Country Buildable surface (*) Port of Ghent BE 180,000 m² (**) Heppignies BE 80,000 m² Trilogiport BE 50,000 m² (**) Meerhout BE 23,000 m² (**) Sint-Niklaas BE 16,000 m² Courcelles BE 10,000 m² Tiel NL 30,000 m² Libercourt FR 24,000 m² Various RO tbd > La
Slide 24: Geographical Footprint
GEOGRAPHICAL FOOTPRINT Portfolio fair value split H1 2015(*) TOTAL > Value: 1,720.9m euros > Gross yield: 7.9% > Vacancy rate: 2.7% > 2.9m m² buildings > 6.3m m² land The Netherlands > Value: 790,8m euros > Gross yield: 7.8% > Vacancy rate: 0.9% > 1,181,000 m² buildings > 2,124,000 m² land Belgium >
Slide 25: Strong Portfolio Quality
STRONG PORTFOLIO QUALITY > Investments reflect long-term consideration and entrepreneurship Locations on strategic logistic corridors Robust building quality, integrating sustainability & flexibility throughout lifecycle Diversified portfolio and integrated facility management to tailor client
Slide 26: Occupancy
OCCUPANCY > Continued high occupancy ■ Occupancy rate 97.5% H1 2015 (vs. 97.6% end 2014) ■ Lease renewal rate of circa 90% over the last 5 years ■ Already 93% of rental breaks maturing in 2015 (11% of total rent roll) secured to date Historical occupancy rate Lease maturity profile (till first break
Slide 27: Diversified Client Base…
DIVERSIFIED CLIENT BASE… > Well-spread tenant profile ■ Active in multiple industries and predominantly large (inter)national corporates ■ Healthy mix between end-users and logistic service providers ■ Top tenants spread over multiple buildings / businesses / countries (max. building risk <5%) 3 PL
Slide 28: … With Long-Term Leases
… WITH LONG-TERM LEASES > Income visibility ■ Circa 35% of contracts have a duration of minimum 10y ■ Focus on long-term quality cash flows ■ Strong historical client retention rate & fidelity WEIGHTED AVERAGE LEASE DURATION (in Y) TILL FIRST BREAK TILL EXPIRATION Rental contracts (excl. solar panel
Slide 29: H1 2015 Consolidated Results
H1 2015 CONSOLIDATED RESULTS Net current result (in euros x 1 000) H1 2015 H1 2014 % Growth Rental income, net of rental-related expenses 54 166 45 134 20,0% I ncome from solar energy 4 513 3 826 17,9% Other operating income/charges -193 338 n.r. Property result 58 486 49 297 18,6% Property costs -1
Slide 30: H1 2015 Consolidated Results
H1 2015 CONSOLIDATED RESULTS Per share data H1 2015 H1 2014 % Growth Net current result (EPRA) (*) 2,32 2,04 14,0% Result on the portfolio (I AS 40 result) (*) 0,43 0,10 n.r. Rev aluation of financial instruments (I AS 39 result) (*) 0,81 -0,68 n.r. Depreciation of solar panels (I AS 16 result) (*)
Slide 31: H1 2015 Consolidated B/S
H1 2015 CONSOLIDATED B/S in euros x 1 000 30.06.2015 31.12.2014 30.06.2014 I ntangible fixed assets 130 93 142 Property inv estments 1 687 400 1 461 814 1 292 825 Other tangible fixed assets (incl. solar panels) 73 613 63 699 65 349 Financial fixed assets 13 887 13 573 23 337 Trade receiv ables and
Slide 32: H1 2015 Consolidated B/S
H1 2015 CONSOLIDATED B/S in euros x 1 000 30.06.2015 31.12.2014 30.06.2014 Capital 143 654 135 329 128 574 I ssue premiums 304 426 239 399 196 262 Reserv es 179 891 174 016 170 279 Net result of the financial year 61 753 64 750 23 445 Equity capital 689 724 613 494 518 560 Long-term financial debt 7
Slide 33: Financial Management
FINANCIAL MANAGEMENT > Management of capital structure ■ Matching property acquisitions with simultaneous debt and equity issuance ■ Equity base strengthened by circa 100m euros in 2015 (*) ■ Debt ratio expected to remain stable in 2015 vs. 2014 (around 56%) > Debt financing ■ Bond issue of 92m euro
Slide 34: Financing Structure
FINANCING STRUCTURE > Solid debt metrics ■ Debt ratio H1 2015 at 58.2% ■ ICR at 4.0x based on long-term visibility and high hedge ratio (currently at 77%) ■ Cost of debt declined to 2.8% due to reshuffling of interest rate hedges (*) Evolution hedge ratio 90% 8,0 Commercial paper 80% 7,0 13% 70% 6,0
Slide 35: Financing Structure
FINANCING STRUCTURE > Well-spread debt maturities ■ Duration of outstanding debt of 3.9y (incl. commercial paper) ■ Duration of long-term credit facilities of min. 4.3y and max. 4.6y (*) ■ Committed undrawn long-term credit lines of 110m euros (**) Debt maturities (min.) (*) Debt maturities (max.) (
Slide 36: Maintaining Balanced Capital Structure
MAINTAINING BALANCED CAPITAL STRUCTURE 1 000 1 000 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 Portfolio growth 2010-15 YTD (in Funding sources 2010-15 YTD (in million euros) million euros) capex existing portfolio retained earnings solar panels new equity pre-let (re
Slide 37: Focus on Sustainable Cash Flow
FOCUS ON SUSTAINABLE CASH FLOW Investments Generating strong cash flow profile > Portfolio yielding ~8% > Recurring return on equity >10% > High occupancy rate ~97% > High ICR > Lease duration ~7y Funding > Balanced risks > Opex <10% of rents > Stable debt ratio ~55-60% > High income visibility > Co
Slide 38: WDP Share
WDP SHARE > Share statistics ■ NAV (EPRA) per share of 40.3 euros at H1 2015 ■ Market cap of ca. 1.3bn euros ■ Free float of 74% - Family Jos De Pauw 26% WDP share price vs. NAV EPS and DPS history 90 5,00 80 4,50 4,00 70 3,50 60 3,00 50 2,50 40 2,00 30 1,50 20 1,00 10 0,50 0 - WDP share price Net A
Slide 39: Outlook 2015
OUTLOOK 2015 > Expected net current result per share (EPRA) upped from 4.50 euros to 4.70 euros (*) > … based on: ■ high occupancy (projected to be minimum 97% on average throughout 2015) ■ high lease renewal rate (11% lease expiries in 2015, of which already 93% renewed) ■ portfolio growth conform
Slide 40: Consistent Performance
CONSISTENT PERFORMANCE Earnings growth based on constant capital structure 5,00 65% 4,50 4,00 60% 3,50 3,00 2,50 55% 2,00 1,50 50% 1,00 0,50 - 45% 2009 2010 2011 2012 2013 2014 2015E EPS (EPRA) DPS Debt ratio (rhs) > Creating growth and profitability > Efficient deployment of capital (debt and equit
Slide 41: Contact Details
CONTACT DETAILS > Joost Uwents CEO T +32 (0)52 338 400 M +32 (0)476 88 99 26 joost.uwents@wdp.be > Mickael Van den Hauwe CFO T +32 (0)52 338 400 M +32 (0)473 93 74 91 mickael.vandenhauwe@wdp.be 41
Slide 42: Disclaimer
DISCLAIMER Warehouses De Pauw Comm. VA, 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 Brussels. This presentation contains forward-looking information, foreca
Slide 43: WDP – Warehouses with Brains
a wbDpP WAREHOUSES WITH BRAINS