Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — WDP — FY2010 Earnings Presentation
36 slides from Warehouses De Pauw SA's earnings presentation, Feb 22, 2011
Slide 1: Full Year Results 2010
Full Year Results 2010 February 22nd 2011
Slide 2: Introduction
Introduction Mark Duyck – Chairman “Optimism is the cure for the downturn” Sir David Tang 25 02 2009 And it worked!
Slide 3: Introduction: Economic sentiment indicator
Introduction Economic sentiment indie ator (s.a.) 1990 1991 1992 1993 1994 1995 1996 1997 898 1999 2000 AM 202 MG AH 2005 206 AOF 2008 2009 2M ANI sounm: Eu pean ommise ion servicer a WwDP warehouses with brains
Slide 4: Agenda FY Results 2010
Agenda FY Results 2010 • Portfolio: real estate projects FY 2010: purchases – sales – projects executed – projects in execution – potential • Occupancy rate • Portfolio • Presentation of FY 2010 results • Financing structure • WDP share • 2011-2013: Creating growth and profitability • Outlook 2011 B
Slide 5: Real estate projects 2010: Purchases
Real estate projects 2010: Purchases • No purchases in 2010
Slide 6: Real estate projects 2010: Sales
Real estate projects 2010: Sales • Sale of part of land (111,000 m²) in Sint-Niklaas • Sale of vacant site (17,000 m²) in Lesquin (FR) • Sale of site in Sint-Jans-Molenbeek Totaling 20 million euro
Slide 7: Real estate projects 2010: Projects executed (pre-let)
Real estate projects 2010: Projects executed (pre-let) • Genk 16,000 m² – completion Q2 2010 – Terumo • Tilburg (NL) 16,000 m² – completion Q2 2010 – K+N • Libercourt (FR) 6,000 m² – completion Q2 2010 – ID Logistics • Nijmegen (NL) 16,000 m² – completion Q4 2010 – Ter Beke • Vilvoorde 11,000 m² – r
Slide 8: Real estate projects 2010: Projects executed (not let)
Real estate projects 2010: Projects executed (not let) • No projects were executed without being pre-let
Slide 9: Projects in execution (pre-let)
Real estate projects 2010-2011: Projects in execution (pre-let) • Merchtem 3,000 m² – completion Q1 2011 – Aldi and Brico • Flemalle 5,700 m² – completion Q3 2011 – DPD Belgium • Mollem 3,200 m² – completion Q4 2011 – Lactalis • Oarja (RO)* 5,000 m² – completion Q4 2011 – Röchling • Oarja (RO)* 7,00
Slide 10: Projects in execution (not let)
Real estate projects 2010-2011: Projects in execution (not let) • Venlo 15,000m² (on hold) • Libercourt 6,000m² (on hold) • Puurs 14,000m² (renovation, in function of tenants) • Ternat 10,000m² (renovation, in function of tenants) Investment value of 25 million euro
Slide 11: Non-committed development potential
Non-committed development potential • Landbank Belgium and France Sint-Niklaas, Courcelles III, Nivelles, Libercourt II Concession at Trilogiport At fair value in balance sheet for 15 million euro • Landbank Romania At fair value in balance sheet for 23 million euro Can be initiated subject to: • pr
Slide 12: Geographical footprint
Geographical footprint Fair value split as per 31/12/2010 Czech Czech Republic Republic 2,9% Romania Netherlands 2,8% 19,0% • Value: EUR 24m • Gross yield: 10.69% • 39,000m² France 9,8% Belgium 65,5% Romania Belgium • Value: EUR 23m • Gross yield: N/A • Value: EUR 537m • 929,000m² (landbank) • Gross
Slide 13: Occupancy rate 2010
Occupancy rate 2010 • Occupancy rate: 95.7% (92.4% on December 31st 2009) • Standing portfolio: maximum 3.5% lease contracts can expire in 2011 (mainly Q4) negotiations for different sites ungoing
Slide 14: Historical occupancy rate
Historical occupancy rate 99% 99% 99% 98% 98% 97% 97% 96% 96% 95% 94% 95% 93% 92% 91% 90% 89% 87% 85% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2004 vacancy was 90% but amounted to 95% excluding the impact of the vacancy of the Hazeldonk site
Slide 15: Historical rental value per m²
40 40,5 41 41,5 42 42,5 43 43,5 44 44,5 45 jun/05 sep/05 dec/05 mrt/06 jun/06 sep/06 dec/06 mrt/07 jun/07 sep/07 dec/07 mrt/08 jun/08 sep/08 dec/08 mrt/09 Average rental value per m² (mixed) jun/09 sep/09 dec/09 Historical rental value per m² mrt/10 jun/10 sep/10 dec/10
Slide 16: High profile client base
High profile client base Top tenants 2010 High profile corporates among Top-10 clients Univeg 15,2% Other 45,3% Solarpanels 7,8% DHL 7,0% Kühne&Nagel 5,9% Philips 5,2% Top 6-10 13,6%
Slide 17: In different industries
:in different industries Well balanced industry portfolio Wholesale Automotive 9% 4% Telecom & ICT 5% Food Others 19% 6% Government & non- profit 4% Industry 12% Logistics, Transport, Distribution & Retail 41%
Slide 18: With long term leases
:with long term leases • Univeg + Solar panels count for 23% of total income, 20 year fix • Average duration contracts Avg time to Avg time to (in years) first break expiry Excl. solar income 5.25 7.33 Incl. solar income 6.73 8.80
Slide 19: FY 2010 Consolidated balance sheet (Assets)
FY 2010 Consolidated balance sheet (Assets) (in ‘000 euro) 2010.DEC 2009.DEC 2008.DEC Intangible fixed assets 422 287 184 Property investments 821.511 815.392 742.129 Other tangible fixed assets (incl. solar panels) 65.773 55.232 32.359 Financial fixed assets 12.535 11.737 10.618 Financial leasing r
Slide 20: FY 2010 Consolidated balance sheet (Liabilities)
FY 2010 Consolidated balance sheet (Liabilities) (in ‘000 euro) Capital 97.853 97.853 68.913 Issue premiums 63.960 63.960 Reserves 236.070 231.129 212.901 Impact on fair value of estimated transfer duties and transfer costs of the hypothetical -27.626 -27.124 -22.106 disposal of property investments
Slide 21: Financing structure (I)
Financing structure (I) 31/12/2010 Financing (EURk) Long term • Average cost of debt 2010: 4.28% Long Term loans 340.000 Leasing 31.000 • 84% of total debt hedged – duration 4.9 years Other 8.000 Short term Commercial Paper 112.000 Straight loans 10.000 TOTAL 501.000
Slide 22: Financing structure (II)
Financing structure (II) 140.000 131.000 133.000 127.000 120.000 100.000 •Total average duration: 3.9 years 80.000 • Average duration long term loans: 5.1 years 60.000 48.000 40.000 31.000 31.000 20.000 0 2011 2012 2013 2014 2015 > 2015
Slide 23: FY 2010 Consolidated Results
FY 2010 Consolidated Results (in ‘000 euro) 2010.DEC 2009.DEC 2008.DEC Net current profit Net rental result 57.985 54.127 46.645 Income from solar energy 5.029 3.704 247 Other operating income/charges -349 -58 -11 Property result 62.665 57.773 46.880 Property costs -1.285 -1.083 -1.195 Corporate ove
Slide 24: FY 2010 Results per share and dividend
FY 2010 Results per share and dividend • Net current result per share of 3.11 euro compared 3.14 euro over the same period last year (*) • Proposed total dividend of 2.94 euro (net 2.50 euro) for FY 2010 • Optional stock dividend as of 2010 dividend (subject to approval by Extraordinary General Meet
Slide 25: WDP share
WDP share Share price versus NAV • NAV per share: EUR 32.58 60,0 (31/12/2010 – excl IAS 39) 50,0 • Share price of EUR 39.62 (18/02/2011) 40,0 • Market capitalization of ca EUR 497 m (E UR) 30,0 (18/02/2011) • Free float 69% - Family Jos De Pauw 31% 20,0 10,0 0,0 2000 2001 2002 2003 2004 2005 2006 20
Slide 26: WDP share
WDP share Vergelijking return van het aandeel WDP met GPR 250 Belgium en GPR 250 Europe 450 Total return index 425 400 375 350 325 300 275 250 225 200 175 150 125 100 75 dec/99 dec/00 dec/01 dec/02 dec/03 dec/04 dec/05 dec/06 dec/07 dec/08 dec/09 dec/10 jun/99 jun/00 jun/01 jun/02 jun/03 jun/04 jun/
Slide 27: FY 2010 Return of the WDP share
FY 2010 Return of the WDP share Average since 31/12/2010 IPO/Year WDP 12.82% 11.86% GPR 250 Belgium 6.49% 16.95% GPR 250 Europe 5.48% 5.53% BEL 20 2.67% -1.67% Bron: Global Property Research (Kempen BV)
Slide 28: Creating Growth & Profitability
2011- 2013 Creating Growth & Profitability 20% increase of net current result per share by end 2013 Based on existing capital base & acceptable gearing Returning to 90% payout ratio Further dividend growth afterwards
Slide 29: Creating Growth & Profitability: Driver I
2011- 2013 Creating Growth & Profitability Driver I: Letting projects: Existing portfolio of 2.7 million euro rental value Projects on hold of 45,000 m²: Puurs, Ternat, Libercourt, Venlo Development of domestic landbank of +200,000 m² Development of landbank in Romania Development on new land
Slide 30: Creating Growth & Profitability: Driver II
2011- 2013 Creating Growth & Profitability Driver II: CO2 investment plan: Today on 14 of 30 MW 4MW planned in France (on hold due to government restrictions) Further development via solar, wind or other alternatives
Slide 31: Creating Growth & Profitability: Driver III
2011- 2013 Creating Growth & Profitability Driver III: Acquisitions: Projects Land Existing portfolios
Slide 32: Outlook 2011
2011 Outlook • Expected net current result of min 41 million euro • Expected net current result per share of min. 3.27 euro • Total expected dividend of gross 2.94 euro per share, returning to 90% payout ratio • Stabilized gearing around 55% • Stabilized occupancy rate around 95%
Slide 33: 2010 Major accomplishments
2010 Major accomplishments • Occupancy increased by 300 bp • F.B.I.-status (NL) acquired • E.I.B. financing RO obtained • Sustainability in progress BREEAM Carbon neutrality
Slide 34: 2011-2013 Major objectives
2011-2013 Major objectives • Further improve occupancy • Use F.B.I. and E.I.B. intelligently, to grow in NL & RO • Further roll out ‘carbon neutral’ program • Increase EPS at horizon 2013 by 20%
Slide 35: Financial Calendar
2011 Financial Calendar • EGM (First date) April 8, 2011 • EGM (Second date) April 27, 2011 • AGM April 27, 2011 • Q1 Results May 17, 2011 For further information, see financial calendar at www.wdp.be
Slide 36: Question time
warehouses with brains <—_- WwDP Question time