Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — 9M 2023 Earnings Presentation
40 slides from Warehouses De Pauw Sa's earnings presentation, Oct 18, 2023
Slide 1: 9M 2023 Results
9M 2023 RESULTS 18 October 2023 1 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights • Scorecard growth plan 2022-25 • 9M 2023 activity report • Results and balance sheet • Financial management • WDP share • Outlook 2023 2
Slide 3: 9M 2023 Highlights | Sustained performance
9M 2023 Highlights | Sustained performance Future-proof positioning in a volatile macro environment SECURED PIPELINE Pre-let projects under development 437 million euros LOAN-TO-VALUE 38% WDP ENERGY (1) 70 million euros OCCUPANCY RATE PORTFOLIO EPRA EPS EPRA EPS 99% 6.7 billion euros 1.06 +12% y/y e
Slide 4: 2022-25 Growth plan | Scorecard
2022-25 Growth plan | Scorecard Showcasing WDP’s agile response to new operating environment 50% repeat business 720 SECURED INVESTMENTS million euros ACQUISITIONS PROJECTS WDP ENERGY Additional investment 249 million euros 10% stake 260 390 million euros million euros 70 million euros 9M 2023 IDENT
Slide 5: Confident for what lies ahead
Confident for what lies ahead Download presentations Continued development opportunities ROBUST STRUCTURAL DEMAND ▪ >500,000 m² pre-let under development DRIVERS ▪ ~1,800,000 m² development potential ▪ Target yield on cost ~7% Rental levels experience strong growth UNLOCKING VALUE FROM THE ▪ Through
Slide 6: Growth plan agile response
GROWTH PLAN AGILE RESPONSE 2025 TARGETS STRATEGY Climate as an CONFIRMED ALIGNED WITH CHANGED opportunity Accelerated roll-out OPERATING WDP ENERGY 2021 BASE YEAR ENVIRONMENT EPRA EPS EPRA EPS 1.50 +8% 1.10 euros p.a. euros Structural Value-add from Based on: net debt / EBITDA (adj.) growth existing
Slide 7: Growth for future
GROWTH ▪ Selective capital deployment on new investments (in function of cost of capital and construction costs) ▪ Capitalizing on existing markets BENELUX and RO (with RO <20%) Structural ▪ Broadening EU-footprint: further deployment and activation of FR and DE FOR growth ▪ ▪ Strategic land bank an
Slide 8: Growth for future: key drivers of long term success
GROWTH FOR FUTURE Focus Pure player with EPRA EPS investor/developer Single overarching KPI model KEY Cash earnings based on stable capital structure DRIVERS OF Culture Clients WDP’s Culture Entrepreneurship Customer centricity and and connectivity LONG #TeamWDP TERM SUCCESS Growth Alignment Focus o
Slide 9: Growth for future: consistent growth trajectory
GROWTH FOR Growth plan FUTURE EPRA EPS CAGR till 2021: 8% CAGR 8% EPRA EPS % y/y CONSISTENT GROWTH TRAJECTORY Culture EPRA EPS E E E (1) Reversal of provision related to FBI. 9
Slide 10: Activity report 9M 2023
ACTIVITY REPORT 9M 2023 The largest single rooftop solar park in Europe at WDPort of Ghent. 10
Slide 11: Acquisitions
Acquisitions SALE-AND-LEASE-BACK EXISTING LAND RESERVE WAREHOUSES 33,000 m² 615,000 m² 9M 2023 43 7.3% million euros Yield on cost(1) RETURN HURDLES INCREASED IN FUNCTION OF HIGHER COST OF CAPITAL (1) Excluding land reserve. 11
Slide 12: Projects executed
PROJECTS EXECUTED Logistics centre for wehkamp of 140,000 m² at Zwolle 12
Slide 13: Projects executed
Projects executed Investment Delivery Lettable area (in budget Location Tenant date m²) (in million euros) 2019-23 BE Courcelles DHL 2Q23 2.885 8 BE Gent Sligro 2Q23 21.109 15 2022-25 BE Gent Uselect 3Q23 11.590 9 BE Lokeren stow Robotics 3Q23 23.839 2 BE 59.423 33 2019-23 LU Bettembourg Multi-tenan
Slide 14: Location, more strategically valuable than ever: Barendrecht
Location, more strategically valuable than ever The Netherlands - Barendrecht The 24/7 consumer expects fast and flexible delivery and a wide product range. This requires Albert Heijn adjustments to the logistics network and enhanced automation. Reduced emissions Optimised supply chain Fully automat
Slide 15: Projects under development
PROJECTS UNDER DEVELOPMENT 15
Slide 16: Projects under development
Projects under development(1) 90% High pre-letting rate and long-term lease duration Pre-let Investment Planned budget Location Tenant delivery date Lettable area (in m²) in million euros) 2019-23 BE Antwerp Fully let 1Q25 14,893 18 2022-25 BE BE Bornem Asse Fully let Fully let 2Q25 1Q24 20,215 6,91
Slide 17: Projects under development
Projects under development(1) 90% High pre-letting rate and long-term lease duration Pre-let 2022-25 RO Buzau Ursus Breweries 4Q23 5.216 6 RO RO Sibiu Slatina Siemens Pirelli 3B+C 1Q24 3Q24 8.761 48.335 6 36 11y RO Timisoara Ericsson 2Q24 33.455 32 Lease duration RO Aricestii Rahtivani TRICO 3Q24 11
Slide 18: WDP Energy
WDP ENERGY Decarbonisation of supply chain Targeted capacity 250 MWp Installed capacity 95 MWp 113 MWp 90 MWp in execution Ambitioned installed capacity towards 250 MWp in 2025 Projected investment: Combined with infrastructure for on-site consumption 150m euros(1) Solar capacity Matching energy con
Slide 19: Potential rental income
Potential rental income(1) Long term Reversion and development potential Medium term 2025 Short term Q4 2023 Annualized Indexation Project Annualized Pre-let development Indexation Potential Rent Rent potential Potential long-term rent Q4 2023 completions & rent pipeline for 2024-25 annualized rent
Slide 20: 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 21: High-quality portfolio
High-quality portfolio WAREHOUSE QUALITY WAREHOUSE TYPE ▪ 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 integrated property manage
Slide 22: Occupancy
Occupancy High occupancy and strong client retention HISTORICAL OCCUPANCY RATE LEASE MATURITY PROFILE (TILL FIRST BREAK) ▪ Occupancy rate is 98.8% on 30 September 2023 (vs. 99.1% end 2022) ▪ 85% of the 12% of leases maturing in 2023 already extended ▪ Lease renewal rate of circa 90% over the last 10
Slide 23: Diversified
Diversified Well-spread tenant profile TOP-10 TENANTS (EXCL. SOLAR ~27%) (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 24: Financial results 9M 2023
FINANCIAL RESULTS 9M 2023 21,000 m² distribution centre for Sligro at WDPort of Ghent, delivered in 2023 24
Slide 25: Consolidated results
Consolidated results Analytical P&L 9M 2022 _4 yly (abs.) A yly (%) Rental income, net of rental-related expenses 216,415 32,577 15.1% Indemnification related to early lease terminations ° 159 ne. Income from solar energy 18,323 900 49% Other operating income/costs 1,449 ATT ne. Property result 236,
Slide 26: Consolidated results
Consolidated results (1) Including solar panels. 26 (2) Including the proportional share of WDP in the portfolio of the joint ventures.
Slide 27: Consolidated results B/S
Consolidated results B/S ine ) 30.09.2023 31.12.2022 A (abs.) A(%) Intangible fixed assets 1,024 860 ne Investment properties 6,301,878 «6,351,916 0.6% Other tangible fixed assets (solar panels inclusive) 167,763 166,351 0.8% Financial fixed assets 171,597 169,308 1.4% Trade debtors and other fixed
Slide 28: Consolidated results B/S
WwDP Consolidated results B/S Metrics -_-+-+ 30.09.2023 31.12.2022 A (abs.) A (%) IFRS NAV 202 20.9 “07 3.5% EPRA NTA 19.6 20.7 A 5.2% ~~ EPRA NRV 215 226 aA 48% -+-+-~ EPRA NOV 24 218 -08 -3.5% Share price 23.4 20.7 “33 12.2% ~~ Premium / (discount) vs. EPRA NTA 10.4% 28.0% 0.6% ne. -+--.~ Loan-to-
Slide 29: Financial management
Financial management Ensuring consistency of financial strategy Leverage Net debt / EBITDA (adj.)(1) Cost of debt Loan-to-value 7.2 x 1.9 % 38.1 % Coverage Baa1 BBB+ 6.5 Interest Coverage Ratio Hedge ratio 100 of financing % needs covered x 107 % Moody’s Fitch Financing ▪ 100% Refinancing next 24 mo
Slide 30: Financial structure
Financial structure Solid debt metrics and active liquidity management DEBT MATURITIES 71% Green financing 60% Bank financing 40% Bonds CP ▪ Well-spread debt maturities with 6-year debt duration on average ▪ Limited long-term debt maturities till end-2024 (ca. 330m euros) ▪ Continued solid access to
Slide 31: Hedging profile
Hedging profile Stable cost of debt despite rapid rise in interest rates 6y Average EVOLUTION COST OF DEBT(1) EVOLUTION HEDGE RATIO(2) hedge duration (1) ▪ Cost of debt at 1.9% and expected at ~2% end-2023 ▪ Fully hedged debt profile limits exposure to further fluctuations in interest rates ▪ Prior
Slide 32: 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 38% 5.3% Loan-to-value EPRA NIY ✓ No leverage on historic revaluations ✓ No impact on Net debt / EBITDA ✓ Solid ingoing pos
Slide 33: Financial management driven by cash-flow leverage
Financial management driven by cash-flow leverage Strong track record of issuing equity to calibrate leverage 7.2x 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 / EBITDA
Slide 34: Share
SHARE 14,000 m² new-built warehouse space for Dynalogic at Amsterdam, delivered in 2023 34
Slide 35: 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 10 0,40 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 EPRA EPS (rhs) DPS (rhs) WDP share price EPRA NTA ▪ Market cap ~5bn euros ▪ Free
Slide 36: Outlook
OUTLOOK OUTLOOK WDP Prinsenhil Logistics Park in Breda: 26,000 m² under development. 36
Slide 37: Outlook 2023
Outlook 2023 Guidance confirmed EPRA EPS DPS +12% +12% y/y y/y 1.40 euros 1.12 euros Underlying assumptions (1) : ▪ Impact from pre-let development completions in 2022-23 ▪ Organic growth >5% due to CPl-linked indexation clauses ▪ A minimum average occupancy rate of 98% and stable client payment beh
Slide 38: Q&A
Q&A 38
Slide 39: Joost Uwents, Mickael Van den Hauwe
www.wdp.eu Joost Uwents CEO +32 476 88 99 26 joost.uwents@wdp.eu Mickael Van den Hauwe CFO +32 473 93 74 91 Mickael.vandenhauwe@wdp.eu 39
Slide 40: 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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