Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — H1 2020 Earnings Presentation
45 slides from Warehouses De Pauw Sa's earnings presentation, Jul 31, 2020
Slide 1: HY 2020 Results
HY 2020 RESULTS 31 July 2020 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights HY 2020 • Roll-out growth plan 2019-23 • Market insights • HY 2020 activity report • Financial management • WDP share • ESG • Statement Covid-19 and Outlook 2020 WDP HY 2020 RESULTS 2
Slide 3: Highlights HY 2020
HIGHLIGHTS HY 2020 HY 2020 Positioned for further growth DEVELOPMENT PIPELINE 200M EUROS ~500 million euros INVESTMENTS SECURED PORTFOLIO 4.5 billion euros EPRA EPS 0.49 euros OCCUPANCY RATE +8% y/y 98% sustained WDP HY 2020 RESULTS 3
Slide 4: Roll-out scorecard growth plan as of HY 2020
ROLL-OUT SCORECARD GROWTH PLAN AS OF HY 2020 5Y GROWTH PLAN Towards a 5bn portfolio in 2019-23 Targeted portfolio growth secured 50 ~750 % million euros(1) DYNAMIC PORTFOLIO DEVELOPMENT 135m euros ACQUISITIONS(2) PROJECTS 597m euros greenfield projects 120 630 acquisitions gross 15m euros 10m euros
Slide 5: Growth plan 2019-23: towards a 5bn portfolio
GROWTH PLAN 2019-23 5Y GROWTH PLAN Towards a 5bn portfolio Property portfolio(2,3) Growth EPRA EPS(2,3) DPS ambition 2023(2,3) +1.5 (1) +6 % +6 % billion euros p.a. p.a. at least > 5 billion euros +10 p.a. % 1.15 euros + 33 % 0.93 euros cumulatively BASE YEAR 2018 ✓ EPRA EPS: 0.86 euros (1) Investme
Slide 6: Growth plan 2019-23 BE-LU-FR, NL, RO
GROWTH PLAN 2019-23 5Y GROWTH PLAN Towards a 5bn portfolio NL ~500m euros growth ~45% of 5bn portfolio BE-LU-FR RO ~500m euros growth ~500m euros growth ~35% of 5bn portfolio ~20% of 5bn portfolio PORTFOLIO GROWTH 1.5BN EUROS • Three commercial platforms capitalizing on developer/investor model • Su
Slide 7: Growth plan based on
BASED ON 5Y GROWTH PLAN • Increasing portfolio with 1.5bn euros(1) in existing geographical markets • Based on further strengthening footprint in BE-NL-LU-FR-RO and with RO <20% • Mainly through pre-let developments on existing and/or new land • Considering the pricing environment opportunistically
Slide 8: Drivers
DRIVERS 5Y GROWTH PLAN VOLUME billion euros PROFITABILITY Long-term relations with clients leading to repeat business Development projects on strategic land reserves 55% of growth last 3 year Constantly replenishing land reserves p.a. +10% Capacity to source off market deals through complex puzzles
Slide 9: Market insights
MARKET INSIGHTS LONG-TERM DRIVERS IN LOGISTICS WDP HY 2020 RESULTS 9
Slide 10: Key role in supply chain
KEY ROLE IN SUPPLY CHAIN MARKET INSIGHTS MODERN INTELLIGENT LOGISTICS WDP HY 2020 RESULTS 10
Slide 11: From commodity to game changer
FROM COMMODITY TO GAME CHANGER MARKET INSIGHTS Digital connectivity Supply chain reconfiguration Intelligent warehouses E-commerce From Technological Changing COMMODITY developments Warehouse automation consumer behavior to ADDED VALUE GAME CHANGER LOGISTICS LOGITICS Energy transition Instant gratif
Slide 12: Future trends
FUTURE TRENDS MARKET INSIGHTS Sound positioning Client Brownfields partnerships High-tech • Strong client-based franchise & automated Puzzles Highbay | Multiple-floor • Vast network & inhouse team of buildings Complex business developers deals • Technology requiring specific knowledge and expertise
Slide 13: Activity report H1 2020
ACTIVITY REPORT H1 2020 WDP HY 2020 RESULTS 13
Slide 14: Acquisitions
ACQUISITIONS HY 2020 Lettable area Investment budget Location Tenant (in m2) (in million euros) Investment Lettable budget Location Tenant area (in m²) (in million euros) 2019-23 NL Drachten, Dopplerlaan 1 Sligro 27.500 17 NL 27.500 17 Total 27.500 17 Capex 17m euros WDP HY 2020 RESULTS 14
Slide 15: Projects executed
PROJECTS EXECUTED Delivery Lettable area Investment budget HY 2020 Location Tenant date (in m²) (in million euros) Delivery Lettable area Investment budget Location Tenant 2019-23 date (in m2) (in million euros) BE Asse - Mollem, Zone 5 nr. 191, 192, 320, 321 AMP 2Q20 9.000 4 BE Heppignies, rue de C
Slide 16: Projects executed
HY 2020 PROJECTS EXECUTED
Slide 17: Projects under development (pre-let)
PROJECTS UNDER DEVELOPMENT (PRE-LET) HY 2020 Investment budget Planned Lettable area (in (in million Location Tenant delivery date m²) euros) 2019-23 BE Courcelles, rue de Liège 25 Conway 1Q21 2.190 2 BE Geel, Hagelberg 12 Distrilog 3Q21 8.000 4 BE Heppignies Fully let 4Q21 2.000 5 BE Heppignies, ru
Slide 18: Projects under development (pre-let)
PROJECTS UNDER DEVELOPMENT (PRE-LET) 96 Pre-let % HY 2020 Planned Lettable area (in Investment budget (in million 9.8 y Avg. lease Location Tenant delivery date m²) euros) duration 2016-20 2019-23 RO BE Buzau Courcelles, rue de Liège 25 Ursus Conway Breweries 4Q20 1Q21 21.000 2.190 13 2 RO Deva BE G
Slide 19: Projects in execution
HY 2020 PROJECTS IN EXECUTION
Slide 20: Development potential
DEVELOPMENT POTENTIAL(1) HY 2020 Fair value(1) 105 million euros ~ 1,000,000 m² Development potential(2) RO NL BE-LU-FR > 500,000 m² 160,000 m² 280,000 m² (1) Uncommitted development potential. The 105m euros refers to the fair value of the (freehold) land reserves in the balance sheet. (2) Initiati
Slide 21: Infrastructure, multimodal, consumer
INFRASTRUCTURE MULTIMODAL CONSUMER WDP HY 2020 RESULTS 21
Slide 22: Portfolio fair value split
PORTFOLIO FAIR VALUE SPLIT(1) HY 2020 (1) Excluding solar panels and including projects, land reserve and assets held for sale. Vacancy rate excluding solar panels (EPRA definition). Including the proportional share of WDP in the portfolio of the joint ventures (mainly WDP Luxembourg at 55%). In the
Slide 23: Evolution portfolio yield
EVOLUTION PORTFOLIO YIELD HY 2020 2/3 1/3 (1) Calculated on a warehouse square meter equivalent basis. WDP HY 2020 RESULTS 23
Slide 24: High-quality portfolio
HIGH-QUALITY PORTFOLIO HY 2020 Warehouse Type of quality warehouse average age: 7.3y • Locations on strategic logistic corridors • Robust building quality, integrating sustainability & flexibility throughout lifecycle • Diversified portfolio and integrated facility management to tailor clients’ need
Slide 25: Occupancy
OCCUPANCY HY 2020 High occupancy and strong customer retention Historical occupancy rate Lease maturity profile (till first break) • Occupancy rate 98.2% on 30 June 2020 (vs. 98.1% end 2019) • Lease renewal rate of circa 90% over the last 5 years • 90% of the 13% of leases maturing in 2020 already e
Slide 26: Diversified
DIVERSIFIED HY 2020 Well-spread tenant profile 36% 3PL 64% end user Top-10 tenants (~35%)(1) Tenant industry activities 10% dedicated e-commerce • Active in multiple industries and predominantly large (inter)national corporates • Healthy mix between end-users and logistic service providers • Top ten
Slide 27: Consolidated results HY 2020
CONSOLIDATED RESULTS HY 2020 WDP HY 2020 RESULTS 27
Slide 28: Consolidated results
CONSOLIDATED RESULTS HY 2020 (1) Including solar panels. (2) Including the proportional share of WDP in the portfolio of the joint ventures (mainly WDP Luxembourg at 55%). WDP HY 2020 RESULTS 28
Slide 29: Consolidated B/S
CONSOLIDATED B/S HY 2020 WDP HY 2020 RESULTS 29
Slide 30: Consolidated B/S
CONSOLIDATED B/S HY 2020 WDP HY 2020 RESULTS 30
Slide 31: Financial management
FINANCIAL MANAGEMENT HY 2020 Net debt vs. EBITDA (adj.)(1) Hedge ratio 8.3 x 84 % Loan-to-value Buffer unused 46.6 % credit facilities(2) Cost of debt 550 million euros 2.1 % • New green financing packages of circa 355 million euros with IFC/WorldBank and EBRD • Strong liquidity position covering al
Slide 32: Financing structure
FINANCING STRUCTURE HY 2020 Solid debt metrics and active liquidity management Debt composition Evolution hedge ratio • Cost of debt at 2.1% for HY 2020, guidance for 2.1% in FY 2020 • ICR at 4.9x based on long-term visibility and hedge ratio (at 84%) • Interest rate sensitivity: +100bps Euribor, -1
Slide 33: Financing structure: debt maturities
FINANCING STRUCTURE HY 2020 Well-spread debt maturities • Commercial paper programme (capped at 200 million euros) fully covered • Liquidity through undrawn long-term credit lines of 550m euros (1) • Duration of outstanding debt of 4.5y and 5.5y excl. commercial paper (1) Excluding the back-up facil
Slide 34: Share statistics
SHARE STATISTICS WDP SHARE • Market cap of circa 4.5bn euros • Free float of 75% - Family Jos De Pauw 25% • Member of Euronext BEL20 and AMX WDP HY 2020 RESULTS 34
Slide 35: WDP ESG roadmap 2019-23
WDP ESG ROADMAP 2019-23 ESG EMPLOYEE DEVELOPMENT Environmental Social Governance CORPORATE GOVERNANCE HEALTH AND SAFETY SUSTAINABLE SUSTAINABLE EMPLOYMENT ENTREPRENEURSHIP ENERGY EFFICIENCY RETAINING AND ATTRACTING TALENT DIGITISATION Positioned for a sustainable future CORPORATE CULTURE WDP HY 2020
Slide 36: WDP ESG roadmap 2019-23
WDP ESG ROADMAP 2019-23 ESG Employee development Employee training program ESG KPI for every employee Covid-19 Safe working environment Working from home and safe re-boarding Energy efficiency Commercialisation data energy Digitisation monitoring tool >1/3 of portfolio equipped with Internal project
Slide 37: Statement Covid-19 and Outlook 2020
STATEMENT COVID-19 OUTLOOK 2020 WDP HY 2020 RESULTS 37
Slide 38: Statement Covid-19 and Outlook 2020: General, Financial
STATEMENT COVID-19 AND OUTLOOK 2020 COVID-19 AND OUTLOOK 2020 • General #TeamWDP has remained fully operational throughout the lockdown through a digital environment and modern communication tools, and is constantly available to assist customers and to navigate through this crisis together with all
Slide 39: Statement Covid-19 and Outlook 2020: Portfolio and customers
STATEMENT COVID-19 AND OUTLOOK 2020 COVID-19 AND OUTLOOK 2020 • Portfolio and customers WDP boasts a diversified and qualitative client base both in terms of exposure per country and sector as well as location, which ensures risk diversification. In addition, the warehouses are operational and funct
Slide 40: Statement Covid-19 and Outlook 2020: Payments, projects, outlook
STATEMENT COVID-19 AND OUTLOOK 2020 COVID-19 AND OUTLOOK 2020 • Payment records of clients Currently, WDP has received 94% of the rents of Q2 2020. 4% or 2.7 million euros of the rents is subject to a rearranged payment term and 2% still has to be paid. As regards the due rental invoices of July 202
Slide 41: Statement Covid-19 and Outlook 2020: Long-term perspective
STATEMENT COVID-19 AND OUTLOOK 2020 COVID-19 AND OUTLOOK 2020 • Long-term perspective In the longer term, WDP believes that the structural trends are intact – such as changes in client behaviour (e.g. e-commerce, technological developments and the demand for sustainability) that lead to adapted cons
Slide 42: Joost Uwents, Mickael Van den Hauwe
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 www.wdp.eu
Slide 43: Lexicon
LEXICON Hedge ratio Occupancy rate Percentage of fixed-rate and floating-rate debts hedged against interest rate fluctuations by means of derivatives. This economic Calculation based on the rental values of leased properties and non-leased surfaces, including income from solar panels. Ongoing parame
Slide 44: Lexicon
LEXICON APM (Alternative Performance Measure) markets based on its current capital and financing structure, including real estate transfer taxes. An alternative performance measure is a financial measure of historical or future financial performance, financial position, or cash - EPRA NTA: this is t
Slide 45: Disclaimer
DISCLAIMER Warehouses De Pauw NV/SA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 This uncertainty is further increased due to financial, operational and regulatory risks and risks related to the Wolvertem (Belgium), is a public regulated real estate company, incorporated un
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