Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — H1 2011 Earnings Presentation
30 slides from Warehouses De Pauw SA's earnings presentation, Aug 24, 2011
Slide 1: Half Year Results 2011
Half Year Results 2011 August 24, 2011
Slide 2: Agenda
Agenda ■ Introduction ■ Highlights H1 2011 ■ Operational review ■ Portfolio overview ■ Financing structure ■ Results analysis ■ WDP share ■ Outlook ■ Visuals
Slide 3: Introduction
Introduction ■ By Mark Duyck, Chairman
Slide 4: Highlights H1 2011
Highlights H1 2011 ■ Operational ■ New important lettings (Wallonia, France) ■ Strategic acquisitions (Wereldhave portfolio) ■ New investments H2 2011 (Genk, The Netherlands) (*) ■ Financial ■ Success of optional dividend (reinforcing equity base) ■ New financing package (to fund Dutch portfolio) ■
Slide 5: Purchases
Purchases ■ H1 2011: acquisition of logistics portfolio of Wereldhave NL for EUR 42m ■ H2 2011: new investments planned for EUR 30m ■ Genk EUR 8.7m (*) ■ Alphen aan de Rijn EUR 6.0m ■ Development project in NL EUR 15.0m (*) (*) Subject to a number of custumary closing conditions
Slide 6: Sales
Sales ■ H1 2011: plot of land in Boom for EUR 0.5m ■ H2 2011: Sales in execution of EUR 2.3m ■ Site in Wespelaar EUR 2.0m ■ 8th floor of office building in Anderlecht EUR 0.3m
Slide 7: Projects executed
Projects executed ■ Solar energy project completion of 1.6MWp on Belgian sites ■ No other projects were delivered during H1 2011
Slide 8: Projects in execution (pre-let)
Projects in execution (pre-let) Location Country Surface Completion Tenant ■ Merchtem BE 3,000m² Q3 2011 Aldi & Brico ■ Flémalle BE 5,700m² Q3 2011 DPD ■ Libercourt FR 6,000m² Q3 2011 Condi Services ■ Oarja(*) RO 5,000m² Q3 2011 Röchling ■ Oarja(*) RO 7,000m² Q4 2011 Pelzer-Pimsa ■ Mollem BE 3,200m²
Slide 9: Projects on hold (unlet)
Projects on hold (unlet) Location Country Surface Strategy ■ Venlo NL 15,000m² on hold, prospecting clients ■ Puurs BE 14,000m² renovation in function of tenants ■ Ternat BE 10,000m² renovation in function of tenants Total 39,000m² Investment value of EUR 22.0m Limited cash out to finish sites
Slide 10: Development potential (uncommitted)
Development potential (uncommitted) Location Country Buildable surface ■ St.-Niklaas BE 28,000m² ■ Nivelles BE 25,000m² ■ Courcelles BE 10,000m² ■ Trilogiport BE 50,000m² (*) ■ Lille FR 24,000m² ■ Neprevaska CZ 10,000m² ■ Various RO tbd Land positions with an investment value of EUR 37.5m Initiation
Slide 11: Geographical footprint
Geographical footprint Portfolio fair value split June 30, 2011(*) France 9% Czech Republic Netherlands 23% • Value: EUR 24m • Gross yield: 10.70% • 39,000m² Belgium 62% Czech Republic 3% Romania 3% Romania Total • Value: EUR 23m • Value: EUR 870m • Gross yield: n.r. • Gross yield: 8.36% • 929,000m²
Slide 12: Occupancy
Occupancy ■ Leased up 20,000m² vacant sites in Wallonia (Courcelles, Nivelles) ■ Occupancy rate: 96.5% end H1 2011 (95.7% year-end 2010) ■ New lettings for 10,000m² in France in Q3 2011 (Séclin, Libercourt) ■ Limited lease maturities in H2 2011 (1.6%) ■ Londerzeel 0.7% ■ Flexible contracts 0.9% ■ An
Slide 13: Historical occupancy rate
Historical occupancy rate 100% 98% 96% 94% (*) 92% 90% 88% 86% 84% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1H11 (*) 2004 vacancy equated to 90% but was 95% excluding the impact of the vacancy of the Hazeldonk site
Slide 14: High profile client base
High profile client base- Top tenants H1 2011 High profile corporates among Top-10 clients Univeg group 14% Solar panels 10% Other 45% DHL 10% Keuhne + Nagel 5% Philips Lighting 5% Top 6-10 11%
Slide 15: In different industries
-in different industries- 3 PL 36,8% Government & non profit 2,0% Media & communication 2,1% Services 2,1% Textile 3,4% Industry 4,0% Automotive 5,8% Other 14,4% Telecom & ICT 6,3% Wholesale 8,7% Food 14,3%
Slide 16: With long-term leases
-with long-term leases ■ Univeg & solar panels stand for 24% of income with duration of 18 years ■ Key tenant Belgacom prolonged lease through a 10 year firm contract ■ 30% of contracts have a duration >10 years ■ Average remaining term: Avg time to Avg time to (in years) first break expiry Excl. so
Slide 17: H1 2011 Consolidated results
H1 2011 Consolidated results EUR x 1.000 H1 2011 H1 2010 2010 Net current profit Net rental result 30.345 28.617 57.985 Income from solar energy 3.411 2.633 5.029 Other operating income/charges -154 -180 -349 Property result 33.602 31.071 62.655 Property costs -721 -569 -1.285 Corporate overheads -2
Slide 18: H1 2011 Consolidated results
H1 2011 Consolidated results Per share data H1 2011 H1 2010 2010 Net current result * 1,63 1,52 3,11 Net current result ** 1,70 1,52 3,11 Portfolio result ** -0,11 0,19 -0,33 IAS 39 result ** 0,53 -1,02 -0,18 Net profit ** 2,12 0,68 2,60 Weighted average number of outstanding shares 12.656.120 12.53
Slide 19: H1 2011 Consolidated B/S
H1 2011 Consolidated B/S EUR x 1.000 H1 2011 2010 H1 2010 Intangible fixed assets 376 422 417 Property investments 870.276 821.511 828.560 Other tangible fixed assets (incl. solar panels) 67.137 65.773 58.592 Financial fixed assets 11.433 12.535 12.962 Financial lease receivables 74 107 151 Trade re
Slide 20: H1 2011 Consolidated B/S
H1 2011 Consolidated B/S EUR x 1.000 H1 2011 2010 H1 2010 Capital 102.903 97.853 97.853 Issue premiums 81.509 63.961 63.961 Reserves 228.498 236.169 183.117 Impact on fair value of estimated transfer duties -30.346 -27.726 -25.863 Disposal of property investments (-) Exchange rate differences 985 1.
Slide 21: Financial management
Financial management ■ Success of optional dividend ■ New opportunity as a result of new Belgian REIT legislation ■ EUR 22.7m new equity (70% of coupons reinvested) ■ Created EUR 50m investment potential ■ New financing ■ New financing package with ABN Amro of EUR 60+25m to fund Dutch portfolio ■ To
Slide 22: Financing structure
Financing structure Debt composition Leasing 29.200 5% Other 9.300 2% ■ Average cost H1 2011: 4.0% ■ Debt ratio of 57.2% Commercial paper 115.200 ■ ICR at 3.3x 21% Long-term loans 382.300 70% Straight loans 12.500 2%
Slide 23: Financing structure
Financing structure Debt maturity profile 140.000 120.000 ■ Total duration of 3.2 years 100.000 ■ Duration of long-term loans: (*) 4.0 years 80.000 ■ Stable CP programme 60.000 40.000 20.000 - 2011 2012 2013 2014 2015 2016 2017 > 2017 (*) Commercial paper and straight loans
Slide 24: Financing structure
Financing structure Evolution hedge ratio 80% 70% ■ 73% of total debt hedged 60% ■ Duration of 6.2 years 50% ■ Average rate of 3.9% (excl. 40% bank margins) 30% 20% 10% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 25: WDP share
WDP share Share price versus NAV 60 50 ■ NAV per share: EUR 31.40 ■ Share price: EUR 34.45 (*) 40 ■ Market cap ca. EUR 455m (*) 30 ■ Free float 70% - Family Jos 20 De Pauw 30% 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 WDP NAV (*) Based on the closing of August 22, 2011
Slide 26: WDP share
WDP share Long-term total return comparison 450 425 400 375 350 325 300 275 250 225 200 175 150 125 100 75 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 WDP GPR 250 Belgium GPR 250 Europe
Slide 27: WDP share
WDP share Return of WDP share Year-to-date Average since 30.06.2011 IPO/Year WDP 12.6% 12.4% GPR 250 Belgium 5.7% 4.5% GPR 250 Europe 8.1% 6.9% BEL 20 -0.2% -1.6%
Slide 28: Delivering on strategic growth plan
Delivering on strategic growth plan Strategic pillar Achievements ■ Letting projects ■ Reduction of vacancy standing portfolio ■ Secured pre-lettings for existing projects ■ Development of land bank in Romania ■ CO2 investment plan ■ Today 14 of 30MWp ■ Additional 0.8MWp planned in Belgium ■ Investi
Slide 29: Outlook
Outlook ■ Expected net current result of minimum EUR 43mP ■ Pequivalent to a net current result per share of minimum EUR 3.26 (*) ■ Confirmation of total expected dividend of EUR 2.94 per shareP ■ Pleading to a normalization of the payout ratio to 90% ■ Gearing ratio expected of 56.4% ■ Occupancy ra
Slide 30: Question time
waist BR Question time