Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — FY2022 Earnings Presentation
50 slides from Warehouses De Pauw Sa's earnings presentation, Jan 27, 2023
Slide 1: FY 2022 Results
FY 2022 RESULTS 27 January 2023 Online press conference Friday 27 January 2023 3PM CET Join 1 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights • Scorecard growth plan 2022-25 • Market insights • FY 2022 activity report • ESG • Results and balance sheet • Financial management • WDP share • Outlook 2023 2
Slide 3: FY 2022 Highlights | Sustained performance
FY 2022 Highlights | Sustained performance Positioned for further growth SECURED PIPELINE Pre-let projects under development ~580 million euros LOAN-TO-VALUE WDP ENERGY (1) +55 MWp solar 35 % & Green Mobility Hub pilot OCCUPANCY RATE PORTFOLIO 99% 6.7 EPRA EPS EPRA EPS billion euros 1.25 +13% y/y eu
Slide 4: 2022-25 Growth plan | Scorecard
2022-25 Growth plan | Scorecard 536 SECURED INVESTMENTS million euros(1) ACQUISITIONS PROJECTS WDP ENERGY 213 283 million euros million euros 40 million euros 219m euros Green- and brownfield projects Renewable energy Acquisitions gross (1) and investments in energy transition 6m euros Disposals Add
Slide 5: Growth for Future
2022-25 GROWTH FOR FUTURE FROM EXTERNAL GROWTH TO EXTERNAL GROWTH+ 5
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: Energy & Sustainability Team
Energy optimization of the property portfolio Installed solar capacity of 100 MWp Energy monitoring system 2007-21 Our response to EU Green Deal targets WDP towards a fully sustainable supply chain 2022 Responding to customer energy needs ENERGY PATHWAY Accelerated roll-out of the WDP ENERGY Energy
Slide 9: 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 10: Consistent growth trajectory
GROWTH FOR Growth plan FUTURE EPRA EPS CAGR till 2021: 8% CAGR 8% CONSISTENT GROWTH TRAJECTORY Culture EPRA EPS % y/y E E E EPRA EPS 10
Slide 11: Market fundamentals remain robust despite economic headwinds
Market fundamentals remain robust despite economic headwinds Market insights BELGIUM - LUXEMBOURG NETHERLANDS ROMANIA Market Vacancy GDP Market Vacancy GDP Market Vacancy GDP Inflation Inflation Inflation share rate growth share rate growth share rate growth 2023e 2023e 2023e 2023e 2023e 2023e 16% ~
Slide 12: Fundamentals bolster demand for logistics space
Fundamentals bolster demand for logistics space Normalized but meaningful demand Regional presence Challenges of driver Digital economy Omnichannel NL Outbound demand to grow at BELUX a normalized pace Cold storage space FR DE OUTBOUND Reverse logistics Reshoring RO Grid connection Land scarcity Str
Slide 13: Green Mobility Hub
RESPONDING TO MARKET TRENDS Green Mobility Hub Warehouse sites can play a crucial role in the decarbonisation of WDP Zellik, Belgium Client VPD its customer’s supply chain 1.5 MWp solar plant Battery storage capacity 10 fast charging points trucks/vans 17 car charging points Investment budget 4m eur
Slide 14: Multilayer warehouse
RESPONDING TO MARKET TRENDS Multilayer warehouse Enhancing distribution capacity through creative building design Land scarcity and rising land prices ▪ Optimizing storage and distribution capacity while minimizing the footprint ▪ More restrictive zoning and regulatory pressure for sustainable land
Slide 15: Robotisation and integration
RESPONDING TO MARKET TRENDS Robotisation and integration Optimization of transportation time, cost and customer service WDP Barendrecht, The Netherlands Client Ahold Delhaize Leasable surface 27,000 m² BREEAM certified Home Shop Center Smart automation to improve efficiency and increase client satis
Slide 16: Activity Report FY 2022
ACTIVITY REPORT FY 2022 16
Slide 17: Acquisitions
Acquisitions EXISTING LAND RESERVE WAREHOUSES 180,000 m² 370,000 m² GLA development potential Capex 174m euros Gross initial yield 4.8% 17
Slide 18: Towards a unique pan-EU platform
Towards a unique pan-EU platform Gradual geographical expansion 10% stake in Catena Sharing knowledge (sustainability – operations – development) Full consolidation of WDP Germany ~100 million euros operating platform Dedicated in-house team Commercialisation project Dunkerque 90,000 m² development
Slide 19: Projects Executed
PROJECTS EXECUTED 19
Slide 20: Projects executed
Projects executed Capex 300m euros (1) Gross yield in the Benelux: 6.1% and in Romania: 8.2%. Gross initial yield(1) 6.7% 20
Slide 21: Projects Under Development
PROJECTS UNDER DEVELOPMENT 21
Slide 22: Projects under development
Projects under development(1) High pre-letting rate (1) Based on 100% of the investment for the fully consolidated entities (including WDP Romania) and the proportionate share for the joint ventures (i.e. 55% for Luxembourg and 29% for the WDPort of Ghent Big Box – X2O Badkamers/Exterioo). The letta
Slide 23: Projects under development
Projects under development 95% 13 y High pre-letting rate Avg. Lease Pre-Let duration Investment budget Planned Lettable area (in (in million Location Tenant delivery date m²) euros) NL 447,960 377 RO Buzau Metro 2Q22 3,750 6 RO Roman Profi 1Q22 12,000 14 RO Slatina Pirelli 1Q23 25,000 15 RO Timisoa
Slide 24: 2022 | WDP ENERGY off the starting blocks
2022 | WDP ENERGY off the starting blocks Green conversion of existing site Supporting decarbonisation of client’s supply chain On-site energy production combined with infrastructure Green Battery and (public) charging points (car, van and trucks) Mobility Hub Decarbonisation of transport and operat
Slide 25: Development potential
Development potential Land reserves continuously being replenished BE-LU- NL FR DEVELOPMENT POTENTIAL 1,500,000 m² ~ Buildable surface RO (1) Not yet reflected in the balance sheet. 25
Slide 26: 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 27: High-quality portfolio
High-quality portfolio WAREHOUSE TYPE WAREHOUSE QUALITY ▪ Locations on strategic logistic corridors with around 50% suitable for urban logistics ▪ Robust building quality, integrating sustainability & flexibility throughout lifecycle 7 y avg. age ▪ Diversified portfolio and integrated facility manag
Slide 28: Occupancy
Occupancy High occupancy and strong customer retention HISTORICAL OCCUPANCY RATE LEASE MATURITY PROFILE (TILL FIRST BREAK) ▪ Occupancy rate 99.1% on 31 December 2022 (vs. 98.5% end 2021) ▪ 40% of the 12% of leases maturing in 2023 already extended ▪ Lease renewal rate of circa 90% over the last 10 y
Slide 29: Diversified
Diversified Well-spread tenant profile TOP-10 TENANTS (EXCL. SOLAR ~27%) (1) TENANT INDUSTRY ACTIVITIES BE NL 14% 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 30: ESG
ESG 30
Slide 31: WDP's journey on ESG
WDP’s journey on ESG 2007 2018 2019 2020 2021 2022 2023 2050 Materiality matrix Materiality refresh for SETTING THE DIRECTION ESG Roadmap 2019-23 ESG 2023 and beyond CLIMATE ACTION PLAN WDP Energy WDP Decarb+ E WDP Green Our industry-leading pathway towards net-zero by 2050 Talent attraction & devel
Slide 32: Climate action plan
Climate action plan M.A.D.E. Your energy service provider Material use Lead the transition towards renewable FOR WDP Energy energy generation and optimized consumption FUTURE Adaptation Reduce our environmental footprint Reducing GHG emissions and the WDP Decarb+ environmental impact by becoming net
Slide 33: Climate Action Plan scorecard
Climate Action Plan 2022 scorecard 2021 2022 WDP electricity procurement green(1) 100% 56% 90% by 2023 Renewable energy capacity 250 MWp 95 MWp 113 MWp by 2025 WDP Energy 100% Energy monitoring system 73% 78% by 2025 100% LED coverage(2) by 2030 40% 60% 2020 base year 2022 Scope 1 & 2 corporate offi
Slide 34: Financial Results FY 2022
MMM VAK ANAT ’ LENA We WOON xn a P Ta ws FY 2022
Slide 35: Consolidated results
Consolidated results Analytical P&L FY 2022 FY 2021 _Ayly (abs.) A yly (%) Rental income, net of rental-related expenses 292,940 255,525 37,415 14.6% Indemnification related to early lease terminations. ° 435 435 ner Income from solar energy 22,902 17,754 5,148 29.0% Other operating income/costs 3,7
Slide 36: Consolidated results
Consolidated results (1) Including solar panels. 36 (2) Including the proportional share of WDP in the portfolio of the joint ventures (WDP Luxembourg at 55%).
Slide 37: Consolidated results B/S
Consolidated results B/S in euros x 1,000) 34.12.2022 34.12.2021 A (abs.) A (%) Intangible fixed assets 860 4,401 244 ne Investment properties 6,351,918 5,795,243, 556,073 9.6% Other tangible fixed assets (solar panels inclusive) 166,351 164,588 4,765 1.4% Financial fixed assets 169,308 7126 162,182
Slide 38: Consolidated results B/S
WwDP Consolidated results B/S Metrics -_-+-+ 34.42.2022 91.12.2021 A (abs.) A(%) IFRS NAV 20.9 19.0 20 10.3% EPRA NTA 207 20.1 06 3.0% ~~ EPRA NRV 226 27 09 41% -+-+-~ EPRA NDV 218 190 28 15.0% Share price 20.7 422 ASS 36.7% ~~ Premium / (discount) vs. EPRA NTA 28.0% 109.8% 80.9% ne. “+ --; Loan-to-
Slide 39: Financial Management FY 2022
FINANCIAL MANAGEMENT FY 2022 39
Slide 40: FY 2022 Highlights | Strengthened financial profile
FY 2022 Highlights | Strengthened financial profile Ensuring consistency of financial strategy Leading to a solid Hedge profile 2023 ingoing position Equity Creditworthiness Debt raised significantly strengthened confirmed improved 7.1x Net debt / EBITDA Baa1 ~ 1.0 bn ~ 700 m 97% Moody’s Euros(1) Eu
Slide 41: Credit ratings through solid long-term financial management
Credit ratings through solid long-term financial management Prudent, pro-active and disciplined capital management Prudent financial policy Baa1 BBB+ and strong access to capital Moody’s Fitch Investment grade and stable outlook ✓ High quality portfolio in Western-EU and RO Track record of an ✓ Stru
Slide 42: Financial structure
Financial structure Solid debt metrics and active liquidity management DEBT MATURITIES 58% EVOLUTION HEDGE RATIO Green financing 60% Bank financing 40% Bonds CP(1) ▪ Cost of debt at 1.9 % ▪ ICR at 5.9x based on long-term visibility and hedge ratio at 97% (87% on average until 2027) ▪ Duration of out
Slide 43: 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 35% 5.0% Loan-to-value EPRA NIY ✓ No leverage on historic revaluations ✓ No impact on Net debt / EBITDA ✓ Solid ingoing pos
Slide 44: Financial management driven by cash-flow leverage
Financial management driven by cash-flow leverage Strong track record of issuing equity to calibrate leverage 7.1x 8.2x 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 45: Share statistics
Share statistics WDP Share ▪ Market cap ~6bn euros ▪ Free float of 78% - Family Jos De Pauw 22% ▪ Member of EPRA, Euronext BEL20, AMX, DJSI Sustainability Index World/Europe and GPR indices 45
Slide 46: Outlook
OUTLOOK 46
Slide 47: Outlook 2023
Outlook 2023 Guidance EPRA EPS DPS +8% +8% y/y y/y 1.35 euros 1.08 euro Underlying assumptions (1) : ▪ Impact from pre-let development completions in 2022-23 ▪ Organic growth of 5% due to CPl-linked indexation clauses ▪ A minimum average occupancy rate of 98% and stable client payment behaviour ▪ Pr
Slide 48: Q&A
Q&A 48
Slide 49: 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 49
Slide 50: 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