Warehouses De Pauw SA · EURONEXT:WDP

Warehouses De Pauw SA — FY2013 Earnings Presentation

48 slides from Warehouses De Pauw SA's earnings presentation, Feb 12, 2014

  1. Slide 1: FY 2013 Results

    FY 2013 RESULTS 12 FEBRUARY 2014 1

  2. Slide 2: Agenda

    AGENDA > Introduction > WDP in a nutshell > Roll-out growth plan 2013-16 > Operational review > Highlights FY 2013 > Results analysis > Financing structure > WDP share > Outlook 2014 2

  3. Slide 3: Introduction

    INTRODUCTION > By Mark Duyck – Chairman of the Board Walking on eggshells 3

  4. Slide 4: Introduction

    INTRODUCTION 2013 2014 2015-16 > Roll out new > A “year of growth plan construction” > 40% or 250m > Multiple new euros of pre-let targeted projects in growth execution identified > Financing secured > Reloading the development pipeline > Ca. 120m euros pre-let projects under construction 4

  5. Slide 5: Built on strong fundamentals

    BUILT ON STRONG FUNDAMENTALS >95% Historical average occupancy rate >8% Consistently high portfolio yield (based on long lease duration) <10% Operating expenses as a % of revenues <4% Controlled cost of debt (based on solid risk profile) 55-60% Constant capital structure synchronizing debt and equit

  6. Slide 6: Geographical footprint

    GEOGRAPHICAL FOOTPRINT Portfolio fair value split FY 2013 (*) TOTAL > Value: 1,196m euros > Gross yield: 8.2% > Vacancy rate: 2.8% > 2.1m m² buildings > 4.8m m² land The Netherlands > Value: 405m euros > Gross yield: 8.9% > Vacancy rate: 1.7% > 694,000 m² buildings > 1,137,000 m² land Belgium > Valu

  7. Slide 7: Roll-out growth plan 2013-16

    ROLL-OUT GROWTH PLAN 2013-16 > Ambition to grow EPS in 4 years by 20-25% to 4.40-4.60 euros by 2016 > … based on: ■ Increasing portfolio with 50% or 600m euros in existing markets, especially the Benelux - Acquisitions (direct, sale and rent back, portfolio) - Developments for own account on existin

  8. Slide 8: Roll-out growth plan 2013-16

    ROLL-OUT GROWTH PLAN 2013-16 110m euros acquisitions ca. 40 % of 600m euros targeted ca. 250m euros portfolio growth identified (*) identified 120m euros projects in execution 20m euros (**) projects executed (*) In addition, WDP is looking at various specific investments for an amount of ca. 25m eu

  9. Slide 9: Purchases

    PURCHASES Transaction Country Type Investment Vilvoorde BE logistic site € 46m Kobbegem (Asse) BE logistic site € 5m Geel BE logistic site € 24m Alphen aan de Rijn NL logistic site € 2m Barneveld NL logistic site € 4m Zaltbommel NL logistic site € 8m Venray NL logistic site € 9m Zwolle NL logistic s

  10. Slide 10: Belgium – Vilvoorde (Cargovil)

    BELGIUM – VILVOORDE (CARGOVIL) Acquisition of an existing 75,000 m² logistic site (13 units), fully rented out to Carrefour, on a prime multimodal location 10

  11. Slide 11: Disposals

    DISPOSALS Transaction Country Type Divestment Executed WDP CZ CZ Logistics and € 25m retail Nivelles BE Land reserve € 2m Aalst BE Industrial € 9m In execution Wieze BE Land reserve € 1m Boom BE Office € 1m > Optimizing portfolio ~ 38m euros disposals (at fair value) (*) > WDP CZ + smaller non-strat

  12. Slide 12: Projects executed

    PROJECTS EXECUTED Location Country Surface Completion Tenant Aalst BE 3,000 m² Q3 2013 Tech Data Nivelles BE 4,000 m² Q4 2013 GLS Zwijndrecht BE 20,000 m² Q4 2013 Van Moer Group Brasov RO 5,000 m² Q4 2013 Inter Cars Sarulesti RO n.r. Q4 2013 Solar ground park Fundulea RO n.r. Q4 2013 Solar ground pa

  13. Slide 13: Belgium – Aalst (Tech Data)

    BELGIUM – AALST (TECH DATA) Expansion of the existing warehouse by 3,000 m², including lease renewal 13

  14. Slide 14: Belgium – Nivelles (GLS)

    BELGIUM – NIVELLES (GLS) Tailor-made green cross-dock warehouse of 4,000 m² for GLS 14

  15. Slide 15: Belgium – Zwijndrecht (Van Moer Group)

    BELGIUM – ZWIJNDRECHT (VAN MOER GROUP) Site expansion potential of 20,000 m² exploited for Van Moer Group 15

  16. Slide 16: Romania – Brasov (Inter Cars)

    ROMANIA – BRASOV (INTER CARS) Warehouse of 5,000 m² including solar panels 16

  17. Slide 17: Romania – Sarulesti/Fundulea

    ROMANIA – SARULESTI/FUNDULEA Development of two solar ground parks on available land plots. Total installed capacity of circa 13 MWp (6,0 MWp + 7,4 MWp) 17

  18. Slide 18: Projects in execution (pre-let)

    PROJECTS IN EXECUTION (PRE-LET) Location Country Surface Completion Tenant Londerzeel BE 14,500 m² Q1 2014 Colfridis Londerzeel BE 9,500 m² Q3 2015 Lantmännen Unibake Zwolle NL 4,000 m² Q1 2014 Kuehne + Nagel Eindhoven NL 8,000 m² Q3 2014 Brocacef Schiphol NL 13,000 m² Q4 2014 tbc (*) Bleiswijk NL 1

  19. Slide 19: Belgium – Londerzeel project

    BELGIUM – LONDERZEEL PROJECT Development, renovation, redevelopment and relocation project A: new warehouse for Colfridis. B: light renovation - Crown Baele moves into an adapted industrial complex. C: Davigel centralizes its activities by relocating to Bornem. Now there is room for a newly built wa

  20. Slide 20: Belgium – Londerzeel project (Colfridis)

    BELGIUM – LONDERZEEL PROJECT (COLFRIDIS) New development of a 14,500 m² tailor-made warehouse along A12 motorway 20

  21. Slide 21: The Netherlands – Eindhoven (Brocacef)

    THE NETHERLANDS – EINDHOVEN (BROCACEF) Turnkey development of warehouse of more than 8,000 m² 21

  22. Slide 22: The Netherlands – Zwolle (wehkamp.nl)

    THE NETHERLANDS – ZWOLLE (WEHKAMP.NL) BREEAM-certified e-commerce warehouse, tailor-made for wehlamp.nl of around 35,000 m² 22

  23. Slide 23: Development potential (uncommitted)

    DEVELOPMENT POTENTIAL (UNCOMMITTED) Location Country Buildable surface (*) Port of Ghent BE 180,000 m² (**) Heppignies BE 80,000 m² Trilogiport BE 50,000 m² (**) Meerhout BE 23,000 m² (**) Sint-Niklaas BE 16,000 m² Vilvoorde BE 7,000 m² Courcelles BE 10,000 m² Libercourt FR 24,000 m² Various RO tbd

  24. Slide 24: Development potential: WDPort of Ghent

    DEVELOPMENT POTENTIAL: WDPORT OF GHENT . Multimodal site with potential for circa 180,000 m² of flexible warehouse solutions. Highway, railway and harbor connections. 24

  25. Slide 25: Highlights FY 2013 – on track

    HIGHLIGHTS FY 2013 – ON TRACK OPERATIONAL RESULTS FINANCIAL > Continued growth of the > Strong fundamentals > Active balance sheet net current result in 2013 sustained (occupancy at management (synchronized (+5% on a per share basis) 97% and lease duration at debt and equity issuance) (*) 7y) > New

  26. Slide 26: Highlights FY 2013 – key figures

    HIGHLIGHTS FY 2013 – ON TRACK KEY FIGURES Operational 31.12.2013 31.12.2012 Fair value of real estat e port folio (incl. solar panels) (in million euros) 1 273,1 1 163,1 Gross rent al yield (incl. vacancy) (in %) 8,2 8,2 Net init ial yield (EPRA) (in %) 7,5 7,4 Average lease duration (t ill first br

  27. Slide 27: Strong portfolio quality

    STRONG PORTFOLIO QUALITY > Investments reflect long-term consideration and entrepreneurship Locations on strategic logistic corridors Robust building quality, integrating sustainability & flexibility throughout lifecycle Diversified portfolio and integrated facility management to tailor clients’ nee

  28. Slide 28: Occupancy

    OCCUPANCY > Continued high occupancy ■ Occupancy rate 97,4% end 2013 (vs. 97.3% end 2012) ■ Lease renewal rate of 90% in 2013 ■ Circa 60% of rental breaks in 2014 already secured year-to-date Historical occupancy rate Lease maturity profile (till first break) 100,0% 40% 8,0 35% 7,0 97,5% 30% 6,0 95,

  29. Slide 29: Diversified client base

    DIVERSIFIED CLIENT BASE… > Well-spread tenant profile ■ Active in multiple industries and predominantly large (inter)national corporates ■ Healthy mix between end-users and logistic service providers ■ Top tenants spread over multiple buildings / businesses / countries (max. building risk <5%) Unive

  30. Slide 30: … with long-term leases

    … WITH LONG-TERM LEASES > Income visibility ■ Circa 30% of contracts have a duration of minimum 10y ■ Focus on long-term quality cash flows ■ Strong historical client retention rate & fidelity WEIGHTED AVERAGE LEASE DURATION (in Y) TILL FIRST BREAK TILL EXPIRATION Rental contracts (excl. solar panel

  31. Slide 31: FY 2013 consolidated results

    FY 2013 CONSOLIDATED RESULTS Net current profit (in euros x 1 000) FY2013 FY2012 % Growth Rental income, net of rental-related expenses 83 032 75 384 10,1% I ncome from solar energy 6 561 6 275 4,6% Other operating income/charges 78 -324 n.r. Property result 89 669 81 335 10,2% Property costs -2 579

  32. Slide 32: FY 2013 consolidated results – per share data

    FY 2013 CONSOLIDATED RESULTS Per share data FY2013 FY2012 % Growth Net current result (EPRA) (*) 3,85 3,67 5,0% Portfolio result -0,05 0,12 n.r. I AS 39 result 1,35 -1,30 n.r. Net profit 5,15 2,49 n.r. Weighted av erage number of outstanding shares 15 460 354 14 194 272 8,9% Net current result (**)

  33. Slide 33: FY 2013 consolidated B/S

    FY 2013 CONSOLIDATED B/S in euros x 1 000 31.12.2013 31.12.2012 31.12.2011 I ntangible fixed assets 114 213 310 Property inv estments 1 194 061 1 060 615 908 089 Other tangible fixed assets (incl. solar panels) 77 605 69 018 68 185 Financial fixed assets 11 466 11 396 11 418 Trade receiv ables and o

  34. Slide 34: FY 2013 consolidated B/S

    FY 2013 CONSOLIDATED B/S in euros x 1 000 31.12.2013 31.12.2012 31.12.2011 Capital 124 898 117 349 106 336 I ssue premiums 177 057 138 428 94 168 Reserv es 145 451 159 078 171 127 Net result of the financial year 79 674 35 326 29 704 Equity capital 527 080 450 181 401 334 Long-term financial debt 53

  35. Slide 35: Financial management

    FINANCIAL MANAGEMENT > Management of capital structure ■ Matching property acquisitions with simultaneous debt and equity issuance ■ Equity base strengthened by ca. 60m euros (*) ■ Debt ratio expected to remain stable in 2014 vs. 2013 (at around 56%) > Debt financing ■ Diversification of funding sou

  36. Slide 36: Maintaining balanced capital structure

    MAINTAINING BALANCED CAPITAL STRUCTURE 450,0 450,0 400,0 400,0 350,0 350,0 300,0 300,0 250,0 250,0 200,0 200,0 150,0 150,0 100,0 100,0 50,0 50,0 - - Portfolio growth 2010-13 (in million Funding sources 2010-13 (in million euros) euros) capex existing portfolio retained earnings solar panels new equi

  37. Slide 37: Financing structure

    FINANCING STRUCTURE > Solid debt metrics ■ Debt ratio FY 2013 at 55.5% ■ ICR at 3.6x based on long-term visibility and high hedge ratio (currently at 78%) (*) ■ Cost of debt at 3.6% Evolution hedge ratio 90% 6,0 Commerci 80% al paper 5,0 20% 70% 60% 4,0 50% Bond 2013 Debt 7% 40% 3,0 Long-term compos

  38. Slide 38: Financing structure

    FINANCING STRUCTURE > Well-spread debt maturities ■ Duration of outstanding debt of 3.0y (incl. commercial paper) ■ Duration of long-term credit facilities of min. 3.4y and max. 4.2y (*) ■ Committed undrawn long-term credit lines of 130m euros(**) Debt maturities (min.) (*) Debt maturities (max.) (*

  39. Slide 39: WDP share

    WDP SHARE +0,72 -0,18 34,64 35,92 -3,11 +3,85 NAV (EPRA) Dividend Net current Effect Portfolio NAV (EPRA) 2012 distribution result capital result and 2013 increases other > 13% return on equity > Nearly 100% cash based 39

  40. Slide 40: WDP share

    WDP SHARE > Share statistics ■ NAV (EPRA) per share of ca. 36 euros at the end of 2013 ■ Market cap of ca. 850m euros ■ Free float of 72% - Family Jos De Pauw 28% WDP share price vs. NAV EPS and DPS history 60 4,50 4,00 50 3,50 40 3,00 2,50 30 2,00 20 1,50 1,00 10 0,50 0 - WDP share price Net Asset

  41. Slide 41: WDP share – return of WDP share

    WDP SHARE > Return of WDP share 41

  42. Slide 42: Outlook 2014 – Year of construction

    OUTLOOK “2014 – Year of construction” > Expected net current result per share of 4.00 euros … (*) > … based on: ■ high occupancy (projected to be minimum 95% on average throughout 2014) ■ high lease renewal rate (13% lease expiries in 2014, of which already ca. 60% renewed) ■ investment potential th

  43. Slide 43: Consistent performance

    CONSISTENT PERFORMANCE Earnings growth based on constant capital structure 4,00 65% 3,50 3,00 60% 2,50 2,00 55% 1,50 1,00 50% 0,50 - 45% 2009 2010 2011 2012 2013 2014E EPS (EPRA) DPS Debt ratio (rhs) > Creating growth and profitability > Efficient deployment of capital (debt & equity) 43

  44. Slide 44: Energy efficiency tool

    ENERGY EFFICIENCY TOOL Free download on App Store and Google Play http://mobile.wdp.eu/ 44

  45. Slide 45: The answers for an accelerating world

    THE ANSWERS FOR AN ACCELERATING WORLD 45

  46. Slide 46: Contact details

    CONTACT DETAILS > Joost Uwents CEO T +32 (0)52 338 400 M +32 (0)476 88 99 26 joost.uwents@wdp.be > Mickael Van den Hauwe CFO T +32 (0)52 338 400 M +32 (0)473 93 74 91 mickael.vandenhauwe@wdp.be 46

  47. Slide 47: Disclaimer

    DISCLAIMER Warehouses De Pauw Comm. VA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a public closed-end property investment company, incorporated under Belgian law and listed on Euronext Brussels. This presentation contains forward-looking informatio

  48. Slide 48: WDP – Warehouses with brains

    wbDpP WAREHOUSES WITH BRAINS

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