Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — FY2021 Earnings Presentation
54 slides from Warehouses De Pauw Sa's earnings presentation, Jan 28, 2022
Slide 1: FY 2021 Results
FY 2021 RESULTS 28 January 2022 1 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights FY 2021 • Status growth plan 2019-23 • New growth plan 2022-25 • Market insights • FY 2021 activity report • ESG: launching Climate Action Plan • Results and balance sheet • Financial management • WDP share • Outlook 2022 2
Slide 3: FY 2021 Highlights | Sustained performance
FY 2021 Highlights | Sustained performance Positioned for further growth DEVELOPMENT Rent collection rate PIPELINE ~500M EUROS 99% ~590 million euros INVESTMENTS SECURED PORTFOLIO EPRA EPS EPRA EPS ~6.0billion euros 1.10 +10% y/y euro 1.20 +9% y/y euros OCCUPANCY RATE FY 2021 OUTLOOK 2022 99% sustai
Slide 4: Growth plan 2019-23 | Roll-out scorecard end 2021
2019-23 Growth plan 2019-23 | Roll-out scorecard end 2021 Towards a 6bn portfolio Targeted portfolio growth secured 75 % 1.5 billion euros(1) DYNAMIC PORTFOLIO DEVELOPMENT 350m euros green- and brownfield projects acquisitions gross and including solar 40m euros ACQUISITIONS(2) PROJECTS disposals 0.
Slide 5: Growth plan 2019-23 | Targets achievable 1y earlier
2019-23 Growth plan 2019-23 | Targets achievable 1y earlier Towards a 6bn portfolio Identified growth EPRA EPS FY 2022 >6 FY 2021 1.20 +40% FY 2022 guidance(2) billion ~1.5 GUIDANCE euros portfolio billion euros euros cumulatively investments TARGETS WITHIN Property portfolio ambition 2023 (2) At le
Slide 6: Growth for Future 2022-25
2022-25 GROWTH FOR FUTURE FROM EXTERNAL GROWTH TO EXTERNAL GROWTH+ 6
Slide 7: Strong earnings targets 2025
STRONG 2025 EARNINGS TARGETS DRIVERS 2021 BASE YEAR 01 EPRA EPS EPRA EPS +8% 1.50 1.10 Structural growth euros p.a. euros Portfolio +500m Portfolio 02 03 8bn euros 6bn euros p.a. euros Value-add from Climate as existing portfolio opportunity Based on: net debt / EBITDA (adj.) ~8x 7
Slide 8: Growth for Future
GROWTH ▪ 2bn euros(1) in sustained investments in supply chain strengthening and omni-channel ▪ Capitalizing on existing markets BENELUX and RO (with RO <20%) Structural ▪ Broadening EU-footprint: further deployment in DE and activation of FR FOR growth ▪ ▪ Strategic land bank and focus on pre-let d
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 EPRA EPS
GROWTH FOR FUTURE EPRA EPS CAGR 8% CAGR 8% 20% CONSISTENT 11% 6% 6% 7% 7% 5% 8% 8% 8% 10% 9% GROWTH EPRA EPS % y/y 1.50 TRAJECTORY 1.20 Culture 1.10 1.00 0.93 0.86 0.80 0.76 0.71 0.59 0.52 0.55 0.49 0.44 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025 E EPRA EPS 10
Slide 11: Market Insights WDP Positioning
MARKET INSIGHTS WDP POSITIONING 11
Slide 12: Strong occupier market and positive outlook
Strong occupier market and positive outlook Market insights BELGIUM - LUXEMBOURG NETHERLANDS ROMANIA Market Vacancy GDP Growth Market Vacancy GDP Growth Market Vacancy GDP Growth share rate share rate share rate 2021A 2022E 2021A 2022E 2021A 2022E 16% 0.5% +5.6% +3.1% 7% 3.6% +3.8% +3.2% 23% 4.8% +7
Slide 13: Industry drivers | Sustained structural growth
Industry drivers | Sustained structural growth Continued strong demand ▪ Omni-channel business models are most resilient with elevated levels of online sales OMNI-CHANNEL ▪ Online shopping will play a significant role in the demand for cold storage space ▪ Pent-up demand from parcel companies ▪ Lead
Slide 14: Activity Report FY 2021
ACTIVITY REPORT FY 2021 14
Slide 15: Acquisitions
Acquisitions EXISTING WAREHOUSES LAND RESERVE 217,000 m² 1,000,000 m² 116m euros 57m euros Capex 173m euros (1) Gross initial yield (1) An amount of 102 million euros has not yet accrued in the balance sheet on 31 December 2021. 6.2% (2) (2) Excluding land reserves. 15
Slide 16: Projects Executed
PROJECTS EXECUTED 16
Slide 17: Projects executed
Projects executed Investment Delivery Lettable area (in budget Location Tenant date m²) (in million euros) BE Asse - Mollem, Zone 5 nr. 191, 192, 320, 321 AMP 3Q21 3,200 2 BE Courcelles, rue de Liège 25 Conway 2Q21 2,190 2 BE Heppignies, rue de Capilône 6 Trafic 2Q21 13,000 5 BE Lokeren, Industriete
Slide 18: Projects executed
Projects executed Investment Delivery Lettable area (in budget Location Tenant date m²) (in million euros) RO Bucharest - Stefanestii de Jos Decathlon 1Q21 10,000 5 RO Bucharest - Stefanestii de Jos (1) LPP 3Q21 22,000 10 RO Bucharest - Stefanestii de Jos (2) Eobuwie 4Q21 15,640 8 RO Bucharest - Ste
Slide 19: Projects in Execution
PROJECTS IN EXECUTION 19
Slide 20: Projects under development
Projects under development High pre-letting rate Investment budget Planned Lettable area (in (in million Location Tenant delivery date m²) euros) BE Antwerp Region Fully let 4Q23 7,872 11 BE Courcelles, rue de Liège 25 Fully let 2Q23 2,885 6 BE Flanders Fully let 3Q23 19,200 27 BE Geel, Hagelberg 12
Slide 21: Projects under development
Projects under development 91% 12 yrs 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 Timis
Slide 22: Development potential
Development potential Land reserves continuously being replenished BE-LU- NL FR In million euros -36.8 +86.3 -45.6 13.7 -9.1 DEVELOPMENT POTENTIAL +9.1 1,500,000 m² ~ +45.6 Buildable surface RO 173.53 173.5 159.80 159.8 159.80 110.3 110.32 Land reserve Additional Transfers Land reserve Land reserves
Slide 23: Portfolio fair value split
Portfolio fair value split (1) FY 2021 (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 at 55% and Germany at 50%). In the IFRS accounts, those joint venture
Slide 24: High-quality portfolio
High-quality portfolio FY 2021 Other 2% Other Class C warehouse Class A warehouse 2% 2% 58% Future redevelopment General warehouse 3% 55% Class B Cross-dock Warehouse 4% Type of warehouse 10% quality Warehouse (avg. age 7.7y) High bay & Multiple floor 5% Class A green certified warehouse Manufacturi
Slide 25: Occupancy
Occupancy High occupancy and strong customer retention HISTORICAL OCCUPANCY RATE LEASE MATURITY PROFILE (TILL FIRST BREAK) 100% 35% 8y 30% 7y 98% 6y 25% 5y 95% 20% 4y 15% 93% 3y 10% 2y 90% 5% 1y 88% 0% 0y 2022 2023 2024 2025 2026 2027 2028 2029 2030 > 2031 85% % of leases maturing already extended o
Slide 26: Diversified
Diversified Well-spread tenant profile TOP-10 TENANTS (EXCL. SOLAR~29%) (1) TENANT INDUSTRY ACTIVITIES 3.9% Industrial 5.1% Solar panels BE NL RO 5.4% 17.6% Retail (Food) 4.9% Kuehne + Nagel 4.6% FMCG Greenyard 3.8% 5.4% Food, fruit & vegetables Ceva 3.6% 5.9% 64% end user Retail (Non-Food) Distrilo
Slide 27: ESG: Launching Climate Action Plan
ESG LAUNCHING CLIMATE ACTION PLAN 27
Slide 28: WDP's journey on ESG
WDP’s journey on ESG Goals for WDP’s corporate social responsibility ESG Framework ESG Roadmap 2019-23 Refresh ESG Framework ESG 2018 2019 2020 2021 2022 2023 #TeamWDP training and development ESG KPI for each team member #TeamWDP: Corporate Attraction of talent Intrapreneurship S S citizenship S HS
Slide 29: WDP's focus on climate change adaptation
WDP’s focus on climate change adaptation Pioneering since 2007, focused on the long term Decarbonizing Rollout Energy Decarbonizing energy Monitoring System corporate consumption activities clients First Green US Private Placement Net-zero scope 1 Net-zero scope 3 by a Belgian and 2 corporate downst
Slide 30: 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 31: WDP Energy
WDP ENERGY ▪ On-site renewable energy production ▪ Untapped capacity of buildings ▪ Client’s energy service provider Warehouses Green power ▪ Rollout energy monitoring system with brains+ charging for cars ▪ Decarbonize energy consumption ▪ Electrification of warehouse sites ▪ Battery storage system
Slide 32: WDP Decarb+
WDP DECARB+ ▪ Decarbonizing activities ▪ Net-zero targets across entire value chain ▪ 1.5° degrees pathway aligned ▪ Decarbonize own corporate offices ▪ Reduce GHG emissions of leased assets ▪ Reduce embodied carbon emissions from developments ▪ Aim for a net positive impact Lead by example on the b
Slide 33: WDP Green
WDP GREEN ▪ Futureproof & sustainable corporate ▪ Diversified green financing pool ▪ Expand green certified assets ▪ Developments at least BREEAM Very Good(2) ▪ Increase efforts to certify portfolio ▪ Maintain existing and engage in new ESG benchmarks and ratings ▪ Disclosure on climate related risk
Slide 34: Analyzing WDP's footprint
Analyzing WDPs footprint 12 DIMENSIONS All encompassing approach IMPACTING WDP’S ENVIRONMENTAL FOOTPRINT Scope 1 & 2 Energy consumption Corporate Land use offices Car park Material use Scope 3 Resilient buildings Energy use Biodiversity Climate footprint(1) Air pollution by WDP clients Light Cradle-
Slide 35: WDP climate footprint
WDP climate footprint BASE YEAR 2020 (TOTAL FOOTPRINT 232,259 tCO2e) NET-ZERO TARGETS Scope 1 & <1% Scope 2 50% 50% Corporate offices Energy consumption Energy consumption 2025 scope 1 & 2 corporate offices car park 25 kgCO2e / m² 1,150 kgCO2e / FTE Car park Scope 3 >99% 2030 scope 1 & 2 35% 55% 5%
Slide 36: Carbon removal: roadmap to decarbonize scope 3
Roadmap to decarbonize SCOPE 3 Scope 3 UPSTREAM Material footprint from developments in 2020 Carbon Predictive 270 kgCO2e / m² Sustainable Circular materials Sustainable and maintenance and materials and procurements circular PV panels innovative technologies removal 2050 Scope 3 net zero DOWNSTREAM
Slide 37: Financial Results FY 2021
MOO \ NANANAAN NTT il LAMAR We Re 1 dil, pp | us LA Ap Z FY 2021
Slide 38: Consolidated results
Consolidated results ANALYTICAL P&L (in euros x 1.000) FY 2021 FY 2020 ∆ y/y (abs.) ∆ y/y (%) Rental income, net of rental-related expenses 255,525 228,449 27,076 11.9% Indemnification related to early lease terminations 435 0 435 n.r. Income from solar energy 17,754 16,472 1,282 7.8% Other operatin
Slide 39: Consolidated results
Consolidated results OPERATIONAL (in %) FY 2021 FY 2020 ∆ y/y (abs.) % Growth Occupancy rate (1) 98.6% 98.6% 0.1% n.r. Like-for-like rental growth 1.4% 2.3% -0.9% n.r. Operating margin (2) 90.6% 90.6% 0.0% n.r. PER SHARE DATA (in euros per share) FY 2021 FY 2020 ∆ y/y (abs.) % Growth EPRA Earnings 1
Slide 40: Consolidated results B/S
Consolidated results B/S (in euros x 1.000) 31.12.2021 31.12.2020 ∆ (abs.) ∆ (%) Intangible fixed assets 1,101 1,193 -92 n.r. Investment properties 5,795,243 4,566,601 1,228,641 26.9% Other tangible fixed assets (solar panels inclusive) 164,586 126,719 37,867 29.9% Financial fixed assets 7,126 6,929
Slide 41: Consolidated results B/S metrics
Consolidated results B/S METRICS 31.12.2021 31.12.2020 ∆ (abs.) ∆ (%) IFRS NAV 19.0 13.5 5.5 41.0% EPRA NTA 20.1 14.3 5.8 40.4% EPRA NRV 21.7 15.7 6.1 38.6% EPRA NDV 19.0 13.5 5.5 41.1% Share price 42.2 28.3 13.9 49.3% Premium / (discount) vs. EPRA NTA 109.8% 97.4% 12.5% n.r. Loan-to-value 36.7% 45.
Slide 42: Financial management FY 2021
Financial management FY 2021 Leverage Loan-to-value 7.9 x Net debt / EBITDA (adj.)(1) 1.8 Cost of debt (3) % 36.7% Coverage 100 of financing % needs covered 5.6 x Interest Coverage Ratio 83 Hedge ratio % Green financing ▪ 100% Refinancing until at least end-2023 Financing Unused credit facilities(2)
Slide 43: Financial structure
Financial structure Solid debt metrics and active liquidity management DEBT COMPOSITION EVOLUTION HEDGE RATIO 100% 7y 90% Straight loan 6y 80% 0.2% 70% 5y 60% 4y Commercial paper 9.1% 50% Long-term bilateral 40% 3y credit lines 30% 2y 76.9% 20% 1y Bonds 10% 13.7% 0% 0y 2021 2022 2023 2024 2025 2026
Slide 44: Financial structure
Financial structure Well-spread debt maturities 500 450 400 350 300 250 200 150 100 50 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Commercial paper & straight loans Bonds Long-term credit facilities (drawn) Long-term credit facilities (undrawn) ▪ Liquidity through undrawn long-term cred
Slide 45: Financial policy
Financial policy Strict capital discipline supporting further growth 10.0x 60 9.5x 55 9.0x 50 8.5x 8.0x 45 7.5x 40 7.0x 35 6.5x 6.0x 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net debt / EBITDA (adjusted) Loan-to-value (%) ▪ Stabl
Slide 46: Return on equity
Return on equity +40% EPRA NTA growth Return on equity 46% Cash return 8% Fair value and other 46 38%
Slide 47: Share statistics
Share statistics WDP Share 45 1.20 40 1.00 35 30 0.80 25 0.60 20 15 0.40 10 0.20 5 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 EPRA EPS (rhs) DPS (rhs) WDP share price EPRA NTA ▪ Market cap ~7bn euros ▪ Free float of 76% - Fami
Slide 48: Outlook
OUTLOOK 48
Slide 49: Outlook 2022
Outlook 2022 EPRA EPS DPS +9 p.a. % +9 p.a. % 1.20 euros 0.96 euros Underlying assumptions: ▪ Strong impact from pre-let development completions in 2021-22 ▪ A minimum average occupancy rate of 98% and stable client payment behaviour (1) ▪ Provision should WDP not be able to continue to qualify as F
Slide 50: Q&A
Q&A 50
Slide 51: 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 51
Slide 52: Lexicon
Lexicon APM (Alternative Performance Measure) EPRA NAV metrics An alternative performance measure is a financial measure of historical or future financial performance, financial The EPRA NAV metrics make adjustments to the IFRS NAV in order to provide stakeholders with the most relevant position, or
Slide 53: Lexicon
Lexicon Hedge ratio Operating margin Percentage of fixed-rate and floating-rate debts hedged against interest rate fluctuations by means of derivatives. The operating margin is calculated by dividing net operating result (before the result on the portfolio) by the This economic parameter is not a co
Slide 54: 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