Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — 9M 2024 Earnings Presentation
42 slides from Warehouses De Pauw Sa's earnings presentation, Oct 18, 2024
Slide 1: 9M 2024 Results
9M 2024 RESULTS 18 October 2024 1 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights 9M 2024 • Growth plan #BLEND2027 • Outlook 2024 • 9M 2024 activity report • Results and balance sheet • Financial management • WDP share 2
Slide 3: 9M 2024 Continued profitable growth
9M 2024 Continued profitable growth Solid execution of strategy with a focus on sustainable earnings growth ROBUST BALANCE SHEET NEW INVESTMENTS SECURED IN 9M 2024 LOAN-TO-VALUE 600 Yield(2) VALUE CREATION 37% ~ million euros ~ 7% ACROSS ALL REGIONS AND DRIVERS ~100m euros in Q3 2024 6.9 x NET DEBT
Slide 4: 9M 2024 Volume meets profitability
9M 2024 Volume meets profitability #BLEND2027: Substantial amount of investments bolsters earnings growth and total return potential 9M 2024 INVESTMENT ACTIVITY 600m euros 7% volume (1) WESTERN EUROPE DRIVES GROWTH WITH ~75% share of new investments YTD ADDED TO YIELD 22% 29% 14% 10% 26% INVESTMENT
Slide 5: 9M 2024 New investments secured
9M 2024 New investments secured A12 E34 E40 ANTWERP EXISTING GHENT E19 WAREHOUSES BRUSSELS 10,600 m² HIGH-END FULLY LET VIEW LOCATION WILLEBROEK A12 ANTWERP-BRUSSELS BROWNFIELD 50,000 m² DEVELOPMENT POTENTIAL Well-positioned for earnings growth and strong total returns 600m euros 7% (1) ADDED TO YIE
Slide 6: #BLEND2027 Effective multiple driver multiple markets approach
#BLEND2027 Effective multiple driver multiple markets approach 9M 2024 status update BUILD LOAD EXTRACT NEUTRALISE DISCIPLINED Continued structural 600m euros investments Indexation of leases by Targeted PV capacity of Net debt / EBITDA (adj.) demand drivers and secured in 9M 2024 at ~3% 350 MWp by
Slide 7: #BLEND2027 Strong total return potential
#BLEND2027 Strong total return potential Through organic growth, acquisitions and developments (1) Long term Reversion and development potential m euros Medium term 2025-26 Short term 2024 Annualized Rent added Annualized Indexation Project Annualized Indexation Project Potential Rent Rent potential
Slide 8: 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 ▪ Average occupancy rate of 98% and stable client payment behavi
Slide 9: #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 10: #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 11: #BLEND2027 Robust structural demand drivers
#BLEND2027 Robust structural demand drivers Outbound demand to E-commerce & omni-channel grow at a normalized pace Cold storage space OUTBOUND Reverse logistics Last-mile and urbanization MULTIPLE LONG-TERM Inbound demand in response Stay- and reshoring DEMAND to supply chain resilience Automation D
Slide 12: Activity Report 9M 2024
ACTIVITY REPORT 9M 2024 12 ZWOLLE (THE NETHERLANDS)
Slide 13: Acquisitions 9M 2024
Acquisitions 9M 2024 Capturing profitable growth opportunities across all markets Lettable area (in Real estate Location Tenant m²) BE Sint-Katelijne-Waver Fully let 2,750 BE Willebroek, Brownfieldlaan Various 10,617 BE Waregem Fully let 70,000 FR Reims Various 74,000 FR Cross-dock portfolio Various
Slide 14: Bolstering FR footprint to over 300M euros
BOLSTERING FR FOOTPRINT TO OVER MONTATAIRE 300M EUROS CAEN ROMBAS EVREUX DIJON 43,000 M² Cross-dock 50M EUROS INVESTMENT last-mile ADDED IN Q3 2024 network BREEAM DIRECT CONTRIBUTION TO EPS WDP FRANCE Existing REVERSIONARY Land potential POTENTIAL 14
Slide 15: Projects Executed
PROJECTS EXECUTED 15 BREDA (NEDERLAND)
Slide 16: Projects executed
Projects executed 100% 13y Leased Lease duration Capex 142m euros Gross initial yield 6.8% Western-Europe: 6.0% and in Romania: 7.7% 16
Slide 17: Projects Under Development
PROJECTS UNDER DEVELOPMENT 17 GENK (BELGIUM)
Slide 18: Projects under development
Projects under development(1) 72% 10y 100% Pre-let(2) Lease Green duration certified Capex(1) 354m euros(2) Yield on cost 6.7% Western-Europe: 6.5% and in Romania: 7.8% Yield on projects identified 9M 2024: 106m euros at 7.4% (1) Based on 100% of the investment for the fully consolidated entities (i
Slide 19: Kerkrade (The Netherlands)
19 KERKRADE (THE NETHERLANDS)
Slide 20: Development potential
Development potential Development potential (GLA) ~ 2,100,000 m² Buildable surface 20
Slide 21: WDP Energy
WDP ENERGY Decarbonisation of supply chain Solar capacity Energy integrated in projects Targeted capacity 350 MWp Installed capacity 204 MWp 113 MWp 2008 2022 Q3 2024 2027 89 MWp under development Green electricity through PV for warehouse CAPEX 62m euros(1) EV charging infrastructure for cars and t
Slide 22: 60 MW 240 MWh Front of the Meter battery
60 MW power capacity 240 MWh storage FRONT OF THE METER STABILITY & FLEXIBILITY TO GRID WDP GENK (BELGIUM) BATTERY ENERGY STORAGE • BALANCING GRID DURING PEAK/SHORTAGES Capex 65m euros SYSTEM • RESPONDING TO ENERGY PRICE VARIABILITY Targeted IRR 10-15% 22 Delivery envisaged end 2028, subject to conn
Slide 23: Portfolio fair value split
Portfolio fair value split (1) (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, those joint ventures are reflected through the equity
Slide 24: High-quality portfolio
High-quality portfolio 55% WAREHOUSE QUALITY WAREHOUSE TYPE Green certified(1) Future development Other 2% 2% Class A warehouse Cross-dock General 84% 4% warehouse 56% High bay & Multiple floor 5% Manufacturing 8% Class B warehouse 10% Class C warehouse 4% Big box / XXL (> 50.000) Other 23% 2% ▪ Loc
Slide 25: Occupancy
Occupancy High occupancy and strong client retention HISTORICAL OCCUPANCY RATE LEASE MATURITY PROFILE (TILL FIRST BREAK) ▪ Occupancy rate remains high at 98% on 30 September 2024 (stable q/q) ▪ 80% of the 10% of leases maturing in 2024 extended ▪ Lease renewal rate of circa 90% over the last 10 year
Slide 26: Diversified
Diversified Well-spread tenant profile TOP-10 TENANTS (EXCL. SOLAR ~25%) (1) TENANT INDUSTRY ACTIVITIES BE NL 16% 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 27: Financial Results 9M 2024
FINANCIAL RESULTS 9M 2024 27 DE LIER (THE NETHERLANDS)
Slide 28: Consolidated results
Consolidated results Analytical P&L 9M 2024 9M 2023 4 yly (abs.) A yly (%) Rental income, net of rental-related expenses 284,655 248,993 35,662 14.3% Indemnification related to early lease terminations ° 159 159 ne. Income from solar energy 18,258 19,223 965 5.0% Other operating income/costs 605 -2,
Slide 29: Consolidated results
Consolidated results (1) Including solar panels. 29 (2) Including the proportional share of WDP in the portfolio of the joint ventures.
Slide 30: Consolidated results B/S
Consolidated results B/S in ) 30.09.2024 31.12.2023 A (abs.) A(%) Intangible fixed assets 1,622 1,198 424 ne Investment properties 7,090,022 6,430,464 650,557 10.1% Other tangible fixed assets (solar panels inclusive) 167,191 166.037 1,154 0.7% Financial fixed assets 63,580 86.476 -22,887 -26.5% Tra
Slide 31: Consolidated results B/S
Consolidated results B/S Metrics 30.09.2024 31.12.2023 A (abs.) Ah) IFRS NAV 20.5 20.2 02 11% EPRA NTA 20.5 20.1 04 1.9% EPRANRV 224 220 o4 1.7% EPRANDV 208 208 oo 0.2% ‘Share price 23.9 28.5 46 16.0% Premium / (discount) vs. EPRA NTA 16.6% 41.5% -24.9% ne. Loan-to-value 36.6% 33.7% 2.9% ne. Debt ra
Slide 32: Financial management
Financial management Ensuring consistency of financial strategy Leverage Net debt / EBITDA (adj.)(1) Cost of debt Loan-to-value 6.9 x 1.8 % Moody’s Fitch 36.6 % Coverage Baa1 BBB+ 7.2 Interest Coverage Ratio Hedge ratio 100 of financing % needs covered x 100 % Positive Outlook Stable Outlook Financi
Slide 33: Debt overview
Debt overview Solid debt metrics and active liquidity management DEBT MATURITIES 73% Green financing 60% Bank financing 40% Bonds CP ▪ Well-spread debt maturities with 5-year debt duration on average ▪ Limited long-term debt maturities till end-2025 (ca. 290m euros) ▪ Continued solid access to unsec
Slide 34: Hedging profile
Hedging profile Stable cost of debt despite increased interest rates 5y Average EVOLUTION COST OF DEBT EVOLUTION HEDGE RATIO hedge duration ▪ Cost of debt at 1.8% over 9M 2024 (1.9% end 2023) and expected to remain <2% over 2024 ▪ Fully hedged debt profile with average hedge maturity of 5y ▪ Prior t
Slide 35: Prudent financial policy throughout the cycle
Prudent financial policy throughout the cycle Strict capital discipline and well-balanced capital structure Historic policy of not adding leverage against revaluations 0% based on 36.6% 5.4% % Loan-to-value EPRA NIY 0% oan to val e %) ield %) % ✓ No leverage on historic revaluations 0% ✓ No impact o
Slide 36: Financial management driven by cash-flow leverage
Financial management driven by cash-flow leverage Strong track record of issuing equity to calibrate leverage 6.9 x 8.0x 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 37: Share
25th listing anniversary #4 euronext ie EURONEXT Brussels’
Slide 38: Share statistics
Share statistics WDP Share ▪ Market cap ~5.5bn euros ▪ Free float of 79% - Family Jos De Pauw 21% ▪ Member of EPRA, Euronext BEL20, AMX, DJSI Sustainability Index World/Europe and GPR indices 38
Slide 39: Great Place To Work certified
Great Place To ' Work. -~ Certified . Certified . MAY 2024-MAY 2025 MAY 2024-MAY 2025 F BELGIUM 7 ROMANIA iy Great Place To Work. Certified MAY 2024-MAY 2025
Slide 40: Q&A
Q&A 40
Slide 41: Joost Uwents, Mickael Van den Hauwe
Joost Uwents CEO Mickael Van den Hauwe CFO investorrelations@wdp.eu www.wdp.eu 41
Slide 42: 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
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