Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — 9M 2020 Earnings Presentation
45 slides from Warehouses De Pauw Sa's earnings presentation, Oct 21, 2020
Slide 1: 9M 2020 Results
9M 2020 RESULTS 21 October 2020 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights 9M 2020 • Roll-out growth plan 2019-23 • Market insights • 9M 2020 activity report • Financial management • WDP share • ESG • Statement Covid-19 and Outlook 2020 WDP 9M 2020 RESULTS 2
Slide 3: Highlights 9M 2020
HIGHLIGHTS 9M 2020 9M 2020 Positioned for further growth DEVELOPMENT PIPELINE 300M EUROS ~470 million euros INVESTMENTS SECURED YTD PORTFOLIO 4.6 billion euros EPRA EPS 0.76 euros OCCUPANCY RATE +8% y/y 98% sustained WDP 9M 2020 RESULTS 3
Slide 4: Roll-out scorecard growth plan as of 9M 2020
ROLL-OUT SCORECARD GROWTH PLAN AS OF 9M 2020 5Y GROWTH PLAN Towards a 5bn portfolio in 2019-23 Targeted portfolio growth secured 60 ~850 % million euros(1) DYNAMIC PORTFOLIO DEVELOPMENT 163m euros ACQUISITIONS(2) PROJECTS 645m euros acquisitions gross Green- and brownfield projects 18m euros disposa
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 9M 2020 RESULTS 9
Slide 10: Key role in supply chain
KEY ROLE IN SUPPLY CHAIN MARKET INSIGHTS MODERN INTELLIGENT LOGISTICS WDP 9M 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 9M 2020
ACTIVITY REPORT 9M 2020 WDP 9M 2020 RESULTS 13
Slide 14: Acquisitions
ACQUISITIONS 9M 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 BE Genk land reserve 130.000 9 BE 130.000 9 2019-23 NL Drachten, Dopplerlaan 1 Sligro 27.500 17 NL Rotterdam-Zuid land re
Slide 15: Projects executed
PROJECTS EXECUTED 9M 2020 Investment Delivery Lettable area budget Location Tenant date (in m²) (in million euros) 2019-23 BE Asse - Mollem, Zone 5 nr. 191, 192, 320, 321 AMP 2Q20 9.000 4 BE Heppignies, rue de Capilône 6C Cora 1Q20 32.000 16 BE 41.000 20 2016-20 LU Bettembourg (Eurohub Sud 3) Trendy
Slide 16: Projects executed (NL, RO)
NL Bleiswijk, Prismalaan 17-19 CEVA Logistics 2Q20 22.000 13 NL Bleiswijk, Snelliuslaan 13 Drake & Farrell 3Q20 17.000 16 NL Breda, Heilaarstraat 263 Lidl 3Q20 5.000 3 NL Eindhoven, Park Forum Brocacef 1Q20 10.000 10 PROJECTSNL EXECUTED Kerkrade, Steenbergstraat NL Maastricht, Habitatsingel 59 Berne
Slide 17: Projects executed
9M 2020 PROJECTS EXECUTED
Slide 18: Projects under development (pre-let)
PROJECTS UNDER DEVELOPMENT (PRE-LET) 9M 2020 Investment budget Planned Lettable area (in (in million Location Tenant delivery date m²) euros) 2019-23 BE Asse - Mollem, Zone 5 nr. 191, 192, 320, 321 AMP 3Q21 3.200 2 BE Courcelles, rue de Liège 25 Conway 1Q21 2.190 2 BE Geel, Hagelberg 12 Distrilog 1Q
Slide 19: Projects under development (pre-let)
PROJECTS UNDER DEVELOPMENT (PRE-LET) 96 Pre-let % 9M 2020 Planned Lettable area (in Investment budget (in million 9.5 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 20: Projects in execution
9M 2020 PROJECTS IN EXECUTION
Slide 21: Development potential
DEVELOPMENT POTENTIAL 9M 2020 Land reserves continuously being replenished NL BE-LU-FR DEVELOPMENT ~1,000,000 POTENTIAL M²(1) RO (1) Potential buildable surface. WDP 9M 2020 RESULTS 21
Slide 22: Infrastructure, multimodal, consumer
INFRASTRUCTURE MULTIMODAL CONSUMER WDP 9M 2020 RESULTS 22
Slide 23: Portfolio fair value split
PORTFOLIO FAIR VALUE SPLIT(1) 9M 2020 PORTFOLIO STATISTICS BY COUNTRY Belgium Netherlands France Luxembourg Romania Total Fair value (in million euros) 1.411,4 2.140,5 127,1 50,6 711,0 4.440,7 Gross lettable area (in m²) 1.810.644 2.297.544 191.636 50.119 1.005.406 5.355.349 Land (in m²) 3.592.255 4
Slide 24: Evolution portfolio yield
EVOLUTION PORTFOLIO YIELD 9M 2020 2/3 1/3 (1) Calculated on a warehouse square meter equivalent basis. WDP 9M 2020 RESULTS 24
Slide 25: High-quality portfolio
HIGH-QUALITY PORTFOLIO 9M 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 26: Occupancy
OCCUPANCY 9M 2020 High occupancy and strong customer retention Historical occupancy rate Lease maturity profile (till first break) • Occupancy rate 98.4% on 30 September 2020 (vs. 98.1% end 2019) • Lease renewal rate of circa 90% over the last 5 years • 97% of the 13% of leases maturing in 2020 alre
Slide 27: Diversified
DIVERSIFIED 9M 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 28: Consolidated results
CONSOLIDATED RESULTS 9M 2020 ANALYTICAL P&L (in euros x 1.000) 9M 2020 9M 2019 ∆ y/y (abs.) ∆ y/y (%) Rental income, net of rental-related expenses 168.733 149.856 18.878 12,6% Indemnification related to early lease terminations 0 611 -611 n.r. Income from solar energy 14.575 13.129 1.446 11,0% Othe
Slide 29: Consolidated results
CONSOLIDATED RESULTS 9M 2020 OPERATIONAL (in %) 9M 2020 9M 2019 ∆ y/y (abs.) % Growth Occupancy rate (1) 98,4% 98,1% 0,4% n.r. Like-for-like rental growth 2,4% 1,4% 1,0% n.r. (2) Operating margin 91,1% 91,5% -0,4% n.r. PER SHARE DATA (in euros per share) 9M 2020 9M 2019 ∆ y/y (abs.) % Growth EPRA Ea
Slide 30: Consolidated B/S
CONSOLIDATED B/S 9M 2020 (in euros x 1.000) 30.09.2020 31.12.2019 ∆ (abs.) ∆ (%) Intangible fixed assets 939 422 517 n.r. Investment properties 4.370.475 4.002.340 368.135 9,2% Other tangible fixed assets (solar panels inclusive) 123.423 125.244 -1.822 -1,5% Financial fixed assets 4.934 4.743 191 4,
Slide 31: Consolidated B/S metrics
CONSOLIDATED B/S 9M 2020 METRICS 30.09.2020 31.12.2019 ∆ (abs.) ∆ (%) IFRS NAV 12,7 12,2 0,5 4,3% EPRA NTA 13,6 12,8 0,8 6,1% EPRA NRV 14,6 13,7 0,9 6,9% EPRA NDV 12,7 12,2 0,5 4,2% Share price 31,1 23,2 7,9 34,0% Premium / (discount) vs. EPRA NAV 128,7% 81,0% 47,7% n.r. Loan-to-value 45,6% 45,0% 0,
Slide 32: Financial management
FINANCIAL MANAGEMENT 9M 2020 Net debt vs. EBITDA (adj.)(1) Hedge ratio 8.1 x 89 % Loan-to-value Buffer unused 45.6 % credit facilities(2) Cost of debt 575 million euros 2.1 % • Strong liquidity position covering all committed capex and debt maturities till at least end 2021 • Yearly strengthening of
Slide 33: Financing structure
FINANCING STRUCTURE 9M 2020 Solid debt metrics and active liquidity management Debt composition Evolution hedge ratio • Cost of debt at 2.1% for 9M 2020 • ICR at 5.0x based on long-term visibility and hedge ratio (at 89%) • Interest rate sensitivity: +100bps Euribor, -1.3% EPRA EPS WDP 9M 2020 RESUL
Slide 34: Financing structure: debt maturities
FINANCING STRUCTURE 9M 2020 Well-spread debt maturities • Liquidity through undrawn long-term credit lines of 575m euros (1) • Duration of outstanding debt of 4.5y and 5.2y excl. commercial paper • Commercial paper programme (capped at 200m euros) fully covered (1) Excluding the back-up facilities t
Slide 35: Share statistics
SHARE STATISTICS WDP SHARE • Market cap >5bn euros • Free float of 75% - Family Jos De Pauw 25% • Member of Euronext BEL20 and AMX WDP 9M 2020 RESULTS 35
Slide 36: 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 9M 2020
Slide 37: 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 38: Statement Covid-19 and Outlook 2020
STATEMENT COVID-19 OUTLOOK 2020 WDP 9M 2020 RESULTS 38
Slide 39: Statement Covid-19 and Outlook 2020: outlook, financial
STATEMENT COVID-19 AND OUTLOOK 2020 COVID-19 AND OUTLOOK 2020 • Outlook 2020 On the basis of the results realised during the first nine months of 2020, and the expectations for Q4 2020, WDP expects EPRA Earnings per share of 1.00 euro in 2020 (compared to guidance Q2 2020: “at the upper end of the r
Slide 40: Statement Covid-19: portfolio, clients, payment behaviour
STATEMENT COVID-19 AND OUTLOOK 2020 COVID-19 AND OUTLOOK 2020 • Portfolio and clients 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 functio
Slide 41: Statement Covid-19: long-term perspective
STATEMENT COVID-19 AND OUTLOOK 2020 COVID-19 AND OUTLOOK 2020 • Long-term perspective In the longer term, WDP believes that structural trends are intact - such as changes in consumer behaviour (e.g. e-commerce), technological developments, omni-channel and demand for sustainability, leading to adjus
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 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 44: 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 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