Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — H1 2013 Earnings Presentation
45 slides from Warehouses De Pauw SA's earnings presentation, August 2013
Slide 1: WDP H1 2013 results
WDP H1 2013 results August 2013
Slide 2: Agenda
Agenda Introduction WDP in a nutshell Highlights H1 2013 Roll-out growth plan 2013-16 Operational review Results analysis Financing structure WDP share Outlook 2013 2
Slide 3: WDP in a nutshell
WDP in a nutshell Pure player in warehouse sector Developments Acquisitions Sustainability New build Portfolio BREEAM Refurbishments Sale & rent back Renewable energy Active & flexible investor Built on solid foundations Creating long-term partnerships Supported by defensive REIT status Focus on sus
Slide 4: Prioritize controlled growth
Prioritize controlled growth Shareholders Clients • Improve earnings visibility • Build long-term partnerships • Access to debt & equity markets • Offer creative deal structuring & improve services • Enhance return on equity & conservative risk profile • Diversify risk exposure & create efficiency g
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 & eq
Slide 6: Maintaining balanced capital structure
Maintaining balanced capital structure 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 2010-13YTD (EUR m) Funding sources 2010-13YTD (EUR m) capex existing portfolio retained earnings solar panels new equity pre-let (re-)developments disposals a
Slide 7: Geographical footprint
Netherlands Geographical footprint 33% Belgium Portfolio fair value split H1 2013 (*) 58% France Netherlands 7% •Value: EUR 369m TOTAL Romania •Gross yield: 8.8% 2% •Vacancy rate: 1.8% •Value: EUR 1,125m •668,000 m² buildings •Gross yield: 8.2% •1,012,000 m² land •Vacancy rate: 3.0% •2.0m m² buildin
Slide 8: Healthy sector & strategic logistics location
Healthy sector & strategic logistics location Know-how & 3PL evolution Preparing products for FOCUS OPBRENGST European markets Informatie- Gain stroom sharing 4PL Strategisch 3PL Tactisch 2PL Goederen- Kost per stroom Operationeel pallet Proximity Unique value 1990 1995 2000 2005 proposition of logi
Slide 9: Roll-out growth plan 2013-16
Roll-out growth plan 2013-16 ■ Ambition to grow EPS in 4 years by 20-25% to EUR 4.40-4.60 by 2016 ■ … based on: ■ Increasing portfolio with 50% or EUR 600m in existing markets, especially the Benelux ■ Acquisitions (direct, sale & rent back, portfolio) ■ Developments for own account on existing and/
Slide 10: Roll-out growth plan 2013-16
Roll-out growth plan 2013-16 EUR 70m Acquisitions 30 % of EUR 600m targeted EUR 180m portfolio growth identified identified EUR 40m Projects in EUR 70m execution New projects (*) (*) Excluding long-term uncommitted development potential on land reserves and concessions (see slide 24). These projects
Slide 11: Highlights H1 2013 – On track
Highlights H1 2013 – On track ■ Operational ■ Strong fundamentals sustained (occupancy at 97% & lease duration at 7y) ■ Global investment package of EUR 180m identified (roll-out of new growth plan 2013-16) ■ Steadily strengthening operating platform (people & organization) ■ Financial ■ Active bala
Slide 12: Highlights H1 2013 – On track
Highlights H1 2013 – On track KEY FIGURES Operational 30.06.2013 31.12.2012 Fair value of real estate portfolio (incl. solar panels) (EUR m) 1.193,1 1.163,1 Gross rental yield (incl. vacancy) (%) 8,2% 8,2% Net initial yield (EPRA) (%) 7,5% 7,4% Average lease duration (till first break) (y) 7,1 7,2 O
Slide 13: Purchases
Purchases Transaction Country Type Investment Vilvoorde BE logistic site EUR 46m Alphen aan de Rijn NL logistic site EUR 2m Barneveld NL logistic site EUR 4m (*) Zaltbommel NL logistic site EUR 8m (*) Venray NL logistic site EUR 9m (*) Total investment of circa EUR 70m Further deployment in core Ben
Slide 14: 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. VILVOORDE BRUSSELS 14
Slide 15: The Netherlands – Zaltbommel
The Netherlands – Zaltbommel Acquisition of a new distribution centre fully rented out to Oriental Merchant. ZALTBOMMEL BRUSSELS 15
Slide 16: The Netherlands – Venray
The Netherlands – Venray Purchase of a brand new logistic site leased on the basis of a 15y fixed lease contract. VENRAY BRUSSELS 16
Slide 17: Disposals
Disposals Transaction Country Type Divestment Executed ■ WDP CZ CZ logistics & retail EUR 25m In execution ■ Aalst BE logistics EUR 9m ■ Wieze BE land reserve EUR 1m Optimizing portfolio ~ EUR 36m disposals (at fair value) (*) WDP CZ + smaller non-strategic assets (*) All disposals realized or to be
Slide 18: Projects in execution (pre-let)
Projects in execution (pre-let) Location Country Surface Completion Tenant Zwijndrecht BE 20,000 m² Q4 2013 Van Moer Group Nivelles BE 4,000 m² Q4 2013 GLS Aalst BE 3,000 m² Q4 2013 Tech Data Londerzeel BE 14,500 m² Q1 2014 Colfridis Londerzeel BE 9,500 m² Q3 2015 Lantmännen Unibake Brasov RO 5,000
Slide 19: Belgium – Londerzeel project (overall)
Belgium – Londerzeel project (overall) Development, renovation, redevelopment and relocation project. LONDERZEEL BRUSSELS 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 the
Slide 20: Belgium – Londerzeel project (Davigel)
Belgium – Londerzeel project (Davigel) 20
Slide 21: Belgium – Londerzeel project (Crown Baele)
Belgium – Londerzeel project (Crown Baele) 21
Slide 22: Belgium – Londerzeel project (Colfridis)
Belgium – Londerzeel project (Colfridis) New development of a 14,500 m² tailor made warehouse along A12 motorway. LONDERZEEL BRUSSELS 22
Slide 23: 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) BRUSSELS SARULESTI / FUNDULEA 23
Slide 24: Development potential (uncommitted)
Development potential (uncommitted) Location Country Buildable surface (*) Sint-Niklaas BE 16,000 m² Nivelles BE 6,000 m² Courcelles BE 10,000 m² Trilogiport BE 50,000 m² (**) Heppignies BE 80,000 m² Port of Ghent BE 180,000 m² (**) Meerhout BE 23,000 m² (**) Libercourt FR 24,000 m² Various RO tbd L
Slide 25: 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 & harbor connections. PORT OF GHENT BRUSSELS 25
Slide 26: Development potential: Meerhout
Development potential: Meerhout Multimodal site with potential for 23,000 m² warehouses. Highway, railway & harbor connections. MEERHOUT BRUSSELS 26
Slide 27: Development potential: Heppignies
Development potential: Heppignies Strategically located site in the heart of the economic activity near Charleroi-airport, near a junction of motorways. The site boasts 80,000 m² development potential. HEPPIGNIES BRUSSELS 27
Slide 28: Sustainability
Sustainability ■ Investments in sustainability through ‘offset’ and ‘reduce’ ■ ‘Offset’ through investments in renewable energy ■ ‘Reduce’ through reduction of energy consumption in existing & new buildings ■ Only investments based on low-risk assessment & similar return pattern ■ Investments in ren
Slide 29: Strong portfolio quality
Strong portfolio quality ■ Investments reflect long-term thinking & entrepreneurship ■ Locations on strategic logistic corridors ■ Robust building quality, integrating sustainability & flexibility throughout lifecycle ■ Diversified portfolio & integrated facility management to tailor clients’ needs
Slide 30: Occupancy
Occupancy ■ Continued high occupancy ■ Occupancy rate 97.2% end H1 2013 (vs. 97.3% end 2012) ■ Lease renewal rate of 90% in 2012 ■ More than 90% of rental breaks in 2013 already secured year-to-date Historical occupancy rate Lease maturity profile (till first break) 100,0% 40% 8,0 97,5% 35% 7,0 30%
Slide 31: Diversified client base…
Diversified client base… ■ Well-spread tenant profile ■ Active in multiple industries & predominantly large (inter)national corporates ■ Healthy mix between end-users & logistic service providers ■ Top tenants spread over multiple buildings / businesses / countries (max. building risk <5%) Top tenan
Slide 32: … with long-term leases
… with long-term leases ■ Income visibility ■ Circa 35% of contracts have a duration of minimum 10y ■ Focus on long-term quality cash flows ■ Strong historical client retention rate & fidelity Lease duration Weighted average lease duration (y) Till first break Till expiration Rental contracts (excl.
Slide 33: H1 2013 Consolidated results
H1 2013 Consolidated results EUR x 1.000 H1 2013 H1 2012 % Growth Net current profit Net rental result 40.496 35.844 13,0% Income from solar energy 3.244 3.238 0,2% Other operating income/charges -111 -279 n.r. Property result 43.629 38.803 12,4% Property costs -1.288 -1.011 27,4% Corporate overhead
Slide 34: H1 2013 Consolidated results
H1 2013 Consolidated results Per share data H1 2013 H1 2012 % Growth Net current result (EPRA) (*) 1,93 1,82 6,0% Portfolio result 0,23 0,04 IAS 39 result 0,98 -0,86 Net profit 3,15 1,00 Weighted average number of outstanding shares 15.198.946 13.744.468 10,6% Net current result (EPRA) (**) 1,88 1,7
Slide 35: H1 2013 Consolidated B/S
H1 2013 Consolidated B/S EUR x 1.000 30.06.2013 31.12.2012 30.06.2012 Intangible fixed assets 162 213 249 Property investments 1.115.584 1.060.615 1.008.646 Other tangible fixed assets (incl. solar panels) 68.568 69.018 71.010 Financial fixed assets 11.391 11.396 11.396 Trade receivables and other f
Slide 36: H1 2013 Consolidated B/S
H1 2013 Consolidated B/S EUR x 1.000 30.06.2013 31.12.2012 30.06.2012 Capital 121.952 117.349 111.178 Issue premiums 159.221 138.428 111.584 Reserves 146.183 159.078 161.755 Net result of the financial year 47.878 35.326 13.729 Equity capital 475.234 450.181 398.247 Long-term financial debt 518.130
Slide 37: Financial management
Financial management ■ Management of capital structure ■ Matching property acquisitions with simultaneous debt & equity issuance ■ Renewed success of optional dividend (72% take-up) leading to EUR 25m capital increase (*) ■ Debt ratio expected to remain stable in 2013 vs. 2012 (at around 56%) ■ Debt
Slide 38: Financing structure
Financing structure ■ Solid debt metrics ■ Debt ratio H1 2013 at 56.5% ■ ICR at 3.8x based on long-term visibility and high hedge ratio (currently at 80%) (*) ■ Cost of debt at 3.6% Debt composition Evolution hedge ratio 90% 6,0 Commercial paper 19% 80% 5,0 70% Long-term 60% 4,0 bilateral Bond 2013
Slide 39: Financing structure
Financing structure ■ Well-spread debt maturities ■ Duration of outstanding debt of 2.7y (incl. commercial paper) ■ Duration of long-term credit facilities of min. 3.5y and max. 4.0y (*) ■ Committed undrawn long-term credit lines of EUR 85m (**) Debt maturities (min.) (*) Debt maturities (max.) (*)
Slide 40: WDP share
WDP share ■ Share statistics ■ NAV (EPRA) per share of EUR 33.94 at H1 2013 ■ Market cap of ca. EUR 800m ■ Free float of 72% - Family Jos De Pauw 28% WDP share price vs. NAV EPS & DPS history 60 4,50 4,00 50 3,50 40 3,00 30 2,50 2,00 20 1,50 10 1,00 0,50 0 - 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 41: WDP share
WDP share ■ Return of WDP share 41
Slide 42: Outlook 2013
Outlook 2013 ■ Expected net current result per share of EUR 3.85… (*) ■ … based on: ■ high occupancy (projected to be at least 96% end 2013) ■ high lease renewal rate (13% lease expiries in 2013, of which already >90% renewed) ■ reinvestment of proceeds from ongoing disposals and optional dividend a
Slide 43: 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 43
Slide 44: 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 informati
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