Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — Q1 2022 Earnings Presentation
49 slides from Warehouses De Pauw Sa's earnings presentation, Apr 22, 2022
Slide 1: Q1 2022 Results
Q1 2022 RESULTS 22 April 2022 1 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights Q1 2022 • Scorecard growth plan 2022-25 • Market insights • Q1 2022 activity report • ESG • Results and balance sheet • Financial management • WDP share • Outlook 2022 2
Slide 3: Q1 2022 Highlights | Sustained performance
Q1 2022 Highlights | Sustained performance Positioned for further growth DEVELOPMENT Rent collection rate PIPELINE ~330M EUROS 98% ~660 million euros INVESTMENTS SECURED PORTFOLIO EPRA EPS EPRA EPS At least 6.3 billion euros 0.29 +20% y/y euro 1.20 +9% y/y euros OCCUPANCY RATE Q1 2022 OUTLOOK 2022 9
Slide 4: 2022-25 Growth plan | Scorecard Q1 2022
2022-25 Growth plan | Scorecard Q1 2022 Towards an 8bn portfolio Targeted portfolio growth secured 22 % 330 million euros(1) DYNAMIC PORTFOLIO DEVELOPMENT 240m euros green- and brownfield projects acquisitions gross(2) and including solar 0m euros ACQUISITIONS(3) PROJECTS disposals 240 million euros
Slide 5: Growth for Future 2022-25
2022-25 GROWTH FOR FUTURE FROM EXTERNAL GROWTH TO EXTERNAL GROWTH+ 5
Slide 6: Strong 2025 earnings targets
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 6
Slide 7: 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 and activation of FR and DE FOR growth ▪ ▪ Strategic land bank and focus on pre-let
Slide 8: 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 9: 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 At least 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 EP
Slide 10: Market Insights WDP Positioning
MARKET INSIGHTS WDP POSITIONING 10
Slide 11: 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% +6.4% +3.0% 7% 3.6% +4.9% +3.5% 23% 4.8% +6
Slide 12: 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 13: Activity Report Q1 2022
ACTIVITY REPORT Q1 2022 13
Slide 14: Acquisitions
Acquisitions EXISTING WAREHOUSES LAND RESERVE 5,600 m² 65,000 m² Capex 10m euros 14
Slide 15: Strategic partnership
Strategic partnership Towards a unique pan-EU platform 10% stake in CATENA(1) Sharing knowledge Broadening Enhancing (sustainability – EU footprint client services operations – development) Major listed logistics real estate player in Scandinavia Diversified logistics portfolio offering a wide range
Slide 16: Projects Executed
PROJECTS EXECUTED 16
Slide 17: Projects executed
Projects executed Capex 19m euros Gross initial yield 6.3% 17
Slide 18: Projects in Execution
PROJECTS IN EXECUTION 18
Slide 19: Projects under development
Projects under development High pre-letting rate • High pre-letting rate 19
Slide 20: Projects under development
Projects under development 90% 11 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 21: Development potential
Development potential Land reserves continuously being replenished BE-LU- NL FR DEVELOPMENT POTENTIAL 1,500,000 m² ~ Buildable surface RO Land reserves acquired for future development (i.e. without pre-letting agreement) (in million euros) Land acquired for immediate development (i.e. based on pre-l
Slide 22: Portfolio fair value split
Portfolio fair value split (1) (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 ventures are re
Slide 23: High-quality portfolio
High-quality portfolio FY 2021 Warehouse Type of quality Warehouse (avg. age 7.1 y) ▪ Locations on strategic logistic corridors with around 50% suitable for urban logistics ▪ Robust building quality, integrating sustainability & flexibility throughout lifecycle ▪ Diversified portfolio and integrated
Slide 24: Occupancy
Occupancy High occupancy and strong customer retention HISTORICAL OCCUPANCY RATE LEASE MATURITY PROFILE (TILL FIRST BREAK) ▪ Occupancy rate 98.6% on 31 March 2022 (vs. 98.5 % end 2021) ▪ 68% of the 14% of leases maturing in 2022 already extended ▪ Lease renewal rate of circa 90% over the last 10 yea
Slide 25: Diversified
Diversified Well-spread tenant profile TOP-10 TENANTS (EXCL. SOLAR~29%) (1) TENANT INDUSTRY ACTIVITIES BE NL RO 65% end user 35% 3PL 11% dedicated e-commerce ▪ Active in multiple industries and predominantly large (inter)national corporates ▪ Healthy mix between end-users and logistic service provid
Slide 26: ESG
ESG 26
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: Financial Results Q1 2022
MOO \ NANANAAN NTT il LAMAR We Re 1 dil, pp | us LA Ap Z Q1 2022
Slide 35: Consolidated results
Consolidated results Analytical P&L Qt 2022 Q12021 _Ayly (abs.) Ayly (%) Rental income, net of rental-related expenses 70,238 61,246 8,993, 14.7% Indemnification related to early lease terminations o 220 220 as. Income from solar energy 3,624 2.812 812 28.9% Other operating incomeicosts 2,037 “3,526
Slide 36: Consolidated results
Consolidated results (1) Including solar panels. 36 (2) Including the proportional share of WDP in the portfolio of the joint ventures (WDP Luxembourg at 55% and the German portfoli o at 50%).
Slide 37: Consolidated results B/S
Consolidated results B/S a4 31.03.2022 34.12.2021 A (abs.) A (%) Intangible fixed assets 967 4,101 134 ne. Investment properties 6,042,932 5,798,243 247,690 4.3% ea aneaan aa = Other tangible fixed assets (solar panels inclusive) 165,132 164,586 546 0.3% Financial fixed assets 26,900 7,126 19,774 27
Slide 38: Consolidated results B/S
Consolidated results B/S WwDP Metrics -+-- 34.03.2022 31.12.2021 4 (abs.) A (%) IFRS NAV 20.7 19.0 17 87% EPRANTA 244 20.4 1.0 5.1% baer iain EPRANRV 22.8 a7 14 5.0% a= EPRANDV 20.7 19.0 17 8.8% Share price 301 42.2 34 1.3% baie siecle Premium / (discount) vs. EPRA NTA 85.0% 109.8% 24.8% ne. a Loan-
Slide 39: Financial management Q1 2022
Financial management Q1 2022 Leverage Loan-to-value 7.7 x Net debt / EBITDA (adj.)(1) 1.8 Cost of debt (3) % 36.0 % Coverage 5.9 Interest Coverage Ratio Hedge ratio 100 of financing % needs covered x 85 % Green financing ▪ 100% Refinancing until at least end-2024 Financing Unused credit facilities(2
Slide 40: Financial structure
Financial structure Solid debt metrics and active liquidity management DEBT COMPOSITION EVOLUTION HEDGE RATIO ▪ Cost of debt at 1.9 % for Q1 2022, which decreased from 2.0% as of end of 2021 ▪ ICR at 5.9x based on long-term visibility and hedge ratio at 85% ▪ Interest rate sensitivity: +100bps Eurib
Slide 41: Financial structure
Financial structure Well-spread debt maturities ▪ Well-spread maturity profile(1) ▪ Duration of outstanding debt of 4.5y ▪ Commercial paper programme (capped at 200m euros) fully covered (1) Excluding the back-up facilities to cover the commercial paper program and excluding the 500 million euros in
Slide 42: Financial policy
Financial policy Strict capital discipline supporting further growth ▪ Stable capital structure based on a net debt / EBITDA (adj.) of ~8x ▪ Financing of investments with minimum 50% equity and maximum 50% debt across growth plan ▪ Maintaining a loan-to-value of <50% throughout the cycle 42
Slide 43: Share statistics
Share statistics WDP Share 45 1.40 40 1.20 35 1.00 30 25 0.80 20 0.60 15 0.40 10 5 0.20 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 2022 EPRA EPS (rhs) DPS (rhs) WDP share price EPRA NTA ▪ Market cap >7bn euros ▪ Free float of
Slide 44: Outlook
OUTLOOK 44
Slide 45: Outlook 2022
Outlook 2022 Robust guidance EPRA EPS DPS +9 p.a. % +9 p.a. % At least At least 1.20 euros 0.96 euros 45
Slide 46: Outlook 2022
Outlook 2022 Robust guidance Underlying assumptions (1) : ▪ Strong impact from pre-let development completions in 2021-22 ▪ A minimum average occupancy rate of 98% and stable client payment behaviour (2) ▪ Provision should WDP not be able to continue to qualify as FBI in NL due to current important
Slide 47: Q&A
Q&A 47
Slide 48: Contact details
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 48
Slide 49: 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