Warehouses De Pauw SA · EURONEXT:WDP

Warehouses De Pauw SA — H1 2016 Earnings Presentation

38 slides from Warehouses De Pauw SA's earnings presentation, Aug 5, 2016

  1. Slide 1: H1 2016 Results

    H1 2016 RESULTS 2016 5 AUGUST 1

  2. Slide 2: Agenda

    AGENDA > Roll-out growth plan 2016-20 > Built on strong fundamentals > H1 2016 > Operational review > Introduction Luxembourg region > Portfolio metrics > Highlights > Results analysis > Financing structure > Outlook 2016 > WDP share 2

  3. Slide 3: Growth Plan 2016-20

    GROWTH PLAN Growth plan > Capitalize on existing portfolio, clients and platform > Structural drivers underpinning demand for logistics space 2016-20 > Consolidating market leadership through repeat business > Improved access to funding through size 10 11 12 13 14 15 16 17 18 19 20 3

  4. Slide 4: Growth Plan: strategy underpinned by structural macro trends

    GROWTH PLAN E-COMMERCE SUSTAINABILITY LOGISTIC CAMPUS GROWTH PLAN 2016-20 SPECIALIZATION Strategy underpinned by structural macro trends Further deployment MULTIMODALITY in existing markets LAST MILE DELIVERY SECURITY 4

  5. Slide 5: Growth Plan: portfolio and EPS growth targets

    GROWTH PLAN GROWTH PLAN 2016-20 Portfolio growth EPS growth 1bneuros 25% cumulatively Portfolio DPS EPS 6.25 3bn 5.00 euros euros euros 10 11 12 13 14 15 16 17 18 19 20 5

  6. Slide 6: Growth Plan: basis of the plan

    GROWTH PLAN GROWTH PLAN 2016-20 Based on > Increasing portfolio with 50% or 1bn euros in existing markets, especially the Benelux > Acquisitions that add long-term value to the portfolio (including a high residual value and the potential to create partnerships with customers) > Realization of pre-le

  7. Slide 7: Growth Plan Roll-out Scorecard as of H1 2016

    GROWTH PLAN GROWTH PLAN 2016-20 ROLL-OUT SCORECARD AS OF H1 2016 Targeted Acquisitions Projects (*) portfolio growth secured 80m 90m 17% euros euros (~170m euros) (**) (*) Including solar projects. (**) The identification rate of 17% was realized within the first 6 months of the 5-year growth plan 2

  8. Slide 8: Built on strong fundamentals

    FUNDAMENTALS BUILT ON STRONG FUNDAMENTALS Historical average occupancy rate Headcount – combining >95% Consistently SME entrepreneurship & high portfolio yield large cap sophistication (based on long lease terms) #55 ~ 7.5% 55-60% <10% Constant capital Operating expenses structure synchronizing ~ 3%

  9. Slide 9: Purchases 2016

    H1 2016 PURCHASES 2016 Transaction Surface Tenant BE New acquisition 35,000m² To be communicated NL Duiven 1,100 m² G4S NL Amsterdam 2,300 m² G4S NL Bleiswijk 70,000 m² (*) tbd (land reserve) NL Schiphol 8,300 m² Kuehne + Nagel NL Barendrecht 47,000 m² The Greenery LU Bettembourg 25,000 m² Ampacet C

  10. Slide 10: Projects executed 2016

    H1 2016 PROJECTS EXECUTED 2016 Location Completion Surface Tenant BE Willebroek Q2 2016 15,000 m² Damco growth plan 2013-16 BE WDPort of Ghent Q2 2016 20,000 m² Distrilog Group BE Heppignies Q2 2016 21,000 m² Trafic RO Ramnicu Valcea Q1 2016 12,000 m² Faurecia RO Sibiu (1) Q2 2016 8,000 m² Siemens g

  11. Slide 11: Projects executed 2016

    H1 2016 PROJECTS EXECUTED 2016 WDPort of Ghent Heppignies Aalst Ramnicu Valcea 11

  12. Slide 12: Projects in execution (pre-let)

    H1 2016 PROJECTS IN EXECUTION (PRE-LET) growth plan 2013-16 Location Completion Surface Tenant NL Barendrecht Q4 2016 40,000 m² The Greenery NL Breda Q4 2016 12,000 m² The Greenery RO Sibiu (2) Q3 2016 4,500 m² DPD BE Zellik Q3 2016 30,000 m² Euro Pool System BE New projects (#2) (*) Q2 2017 31,000

  13. Slide 13: Projects in execution (pre-let)

    H1 2016 PROJECTS IN EXECUTION (PRE-LET) Breda Zellik Breda Sibiu Brasov Barendrecht 13

  14. Slide 14: Active in the entire Benelux

    H1 2016 NEW COUNTRY Grand Duchy of EUROHUB CENTRE LUXEMBOURG EUROHUB SUD EUROHUB CENTRE BELGIUM Luxembourg City GERMANY BELGIUM ACQUISITION PLOT FRANCE 22m EUROS (*) 9 HA GERMANY EUROHUB 25,000 M² DEVELOPMENT SUD FRANCE EXISTING FOR LEASED BUILDING FUTURE TENANTS ADDITIONAL STARTING DEVELOPMENT COMM

  15. Slide 15: Development potential

    H1 2016 DEVELOPMENT POTENTIAL (*) Location Potential buildable surface BE WDPort of Ghent (concession) 160,000 m² BE Heppignies 60,000 m² BE Trilogiport (concession) 50,000 m² BE Meerhout (concession) 23,000 m² BE Sint-Niklaas 4,000 m² BE Courcelles 10,000 m² NL Tiel 30,000 m² NL Bleiswijk 40,000 m²

  16. Slide 16: Geographical footprint

    H1 2016 GEOGRAPHICAL FOOTPRINT Airport Port Container terminal Zwolle Amsterdam Utrecht Rotterdam Tiel Nijmegen Tilburg Veghel Breda Venlo Antwerp Genk Ghent Meerhout Brussel s Maastricht ROMANIA Lille Liège Brasov Pitesti Ploiesti Charleroi Namur Value (*) 1,983m euros Corbii Mari Fundulea Constant

  17. Slide 17: Portfolio fair value split H1 2016

    H1 2016 GEOGRAPHICAL FOOTPRINT PORTFOLIO FAIR VALUE SPLIT H1 2016 (*) Belgium Netherlands France Romania Fair value 885m euros 967m euros 77m euros 54m euros 1,983m euros Buildings 1,571,000 m² 1,388,000 m² 146,000 m² 50,000 m² 3,2m m² Land 3,005,000 m² 2,502,000 m² 376,000 m² 976,000 m² 6.9m m² Ave

  18. Slide 18: High-quality portfolio

    H1 2016 HIGH-QUALITY PORTFOLIO Class A Cooled BREEAM 11% warehouse Class A 13% Semi Class C warehouse warehouse 66% industrial 1% General 9% warehouse Other Building 65% Type of Cross-dock 4% quality buildings 5% Cross-dock Other (retail 6% and offices) Class B 5% warehouse Multiple floor 10% Deepfr

  19. Slide 19: Occupancy

    H1 2016 OCCUPANCY Historical occupancy rate Lease maturity profile (till first break) 100,0% 40% 7,0 35% 6,0 97,5% 30% 5,0 95,0% 25% 4,0 92,5% 20% 3,0 15% 90,0% 2,0 10% 87,5% 5% 1,0 85,0% 0% 0,0 2016 2017 2018 2019 2020 2021 2022 2023 2024 > 2024 % Lease maturities renewed at 30 June 2016 (lhs) Vaca

  20. Slide 20: Diversified client base

    H1 2016 DIVERSIFIED CLIENT BASE… Top-10 tenants (~40%) (*) 15% KUEHNE + NAGEL 7,1% 3 PL 8% SOLAR PANELS 6,6% Food GREENYARD FOODS Wholesale 6,1% 7% Other DHL SUPPLY CHAIN 4,4% Fast Consuming Goods DHL EXPRESS 3,4% Tenant industry Automotive DISTRILOG GROUP 3,2% activity 7% Industry ID LOGISTICS 2,7%

  21. Slide 21: With long-term leases

    H1 2016 … WITH LONG-TERM LEASES WEIGHTED AVERAGE LEASE DURATION (in y) TILL FIRST BREAK TILL EXPIRATION Rental contracts (excl. solar panels) 5,8 7,5 Rental contracts (incl. solar panels) 6,3 7,9 > Income visibility > Circa 35% of contracts have a duration of minimum 10y > Focus on long-term quality

  22. Slide 22: Highlights H1 2016

    HIGHLIGHTS H1 2016 H1 2016 SOUND METRICS KEY FIGURES Operational 30.06.2016 31.12.2015 Fair value of real estate portfolio (incl. solar panels) (in million euros) (*) 2 068,5 1 930,0 Gross rental yield (incl. vacancy) (in %) 7,6 7,6 Net initial yield (EPRA) (in %) 6,8 6,9 Average lease duration (til

  23. Slide 23: H1 2016 Consolidated Results

    H1 2016 H1 2016 CONSOLIDATED RESULTS Net current result (in euros x 1 000) H1 2016 H1 2015 % Growth Rental income, net of rental-related expenses 64 590 54 161 19,3% I ndemnification related to early lease terminations -30 5 n.r. I ncome from solar energy 4 354 4 513 -3,5% Other operating income/cha

  24. Slide 24: H1 2016 Consolidated Results: per share data

    H1 2016 H1 2016 CONSOLIDATED RESULTS Per share data H1 2016 H1 2015 % Growth Net current result (EPRA) (*) 2,62 2,32 12,7% Result on the portfolio (I AS 40 result) 0,87 0,43 n.r. Rev aluation of financial instruments (I AS 39 result) -1,07 0,81 n.r. Depreciation of solar panels (I AS 16 result) -0,0

  25. Slide 25: H1 2016 Consolidated B/S

    H1 2016 H1 2016 CONSOLIDATED B/S in euros x 1 000 30.06.2016 31.12.2015 30.06.2015 I ntangible fixed assets 133 96 130 Property inv estments 1 926 673 1 796 888 1 687 400 Other tangible fixed assets (incl. solar panels) 74 542 74 708 73 613 Financial fixed assets 17 169 14 084 13 887 Trade receiv ab

  26. Slide 26: H1 2016 Consolidated B/S

    H1 2016 H1 2016 CONSOLIDATED B/S in euros x 1 000 30.06.2016 31.12.2015 30.06.2015 Capital 147 004 143 568 143 654 I ssue premiums 333 617 304 426 304 426 Reserv es 246 443 177 581 179 891 Net result of the financial year 43 253 142 698 61 753 Equity capital 770 317 768 273 689 724 Long-term financi

  27. Slide 27: Maintaining balanced capital structure

    H1 2016 MAINTAINING BALANCED CAPITAL STRUCTURE 1 100 1 100 1 000 1 000 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 Portfolio growth 2010-16 YTD Funding sources 2010-16 YTD (in million euros) (in million euros) capex existing portfolio retained earnings solar panels ne

  28. Slide 28: Financing structure

    H1 2016 FINANCING STRUCTURE Commercial paper Evolution hedge ratio 13% 90,0% 8,0 80,0% 7,0 70,0% 6,0 Debt 60,0% 5,0 composition Bonds 28% 50,0% 4,0 40,0% 3,0 Long-term bilateral 30,0% credit lines 20,0% 2,0 56% 10,0% 1,0 Straight loan Leasing 1% 0,0% 0,0 1% 2016 2017 2018 2019 2020 2021 2022 2023 20

  29. Slide 29: Financing structure: debt maturities

    H1 2016 FINANCING STRUCTURE Debt maturities (min.) (*) Debt maturities (max.) (*) 250 250 225 225 200 200 175 175 150 150 125 125 100 100 75 75 50 50 25 25 - - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Commercial paper & s

  30. Slide 30: Focus on sustainable cash flow

    H1 2016 FOCUS ON SUSTAINABLE CASH FLOW > Portfolio yielding ~7.5% > High occupancy rate >95% INVESTMENTS > Lease duration ~7y > Opex <10% of rents GENERATING STRONG CASH FLOW PROFILE > Recurring return on equity >10% > High ICR > Balanced risks > High income visibility > Stable debt ratio ~55-60% >

  31. Slide 31: Outlook 2016

    OUTLOOK 2016 31

  32. Slide 32: Outlook 2016: guidance increased

    OUTLOOK 2016 OUTLOOK 2016 BUILDING FURTHER GUIDANCE INCREASED EPS DPS 5.30 4.25 euros euros Debt ratio +/- 56% 32

  33. Slide 33: Outlook 2016

    OUTLOOK 2016 OUTLOOK 2016 (*) BUILDING FURTHER EPS 5.30 euros (upgrade from 5.20 euros) > Equivalent to +6% vs. 5.00 euros in 2015 (and +9% excl. non-recurring items in 2015) (**) > Based on net current result of circa 100m euros in absolute terms DPS 4.25 euros (upgrade from 4.20 euros) > Equivalen

  34. Slide 34: WDP share

    SHARE WDP SHARE 100 5,50 90 5,00 80 4,50 70 4,00 3,50 60 3,00 50 2,50 40 2,00 30 1,50 20 1,00 10 0,50 0 - EPS (EPRA) (rhs) DPS (rhs) WDP share price Net Asset Value (EPRA NAV) > Share statistics > NAV (EPRA) per share of 45.2 euros at the end of H1 2016 > Market cap of ca. 1.7bn euros > Free float o

  35. Slide 35: Consistent performance

    SHARE CONSISTENT PERFORMANCE 5,50 65% 5,00 4,50 4,00 60% 3,50 3,00 55% 2,50 2,00 1,50 50% 1,00 0,50 - 45% 2010 2011 2012 2013 2014 2015 2016E EPS (EPRA) DPS Debt ratio (rhs) > Earnings growth based on constant capital structure > Creating growth and profitability > Efficient deployment of capital (d

  36. Slide 36: Contact details

    Save the date INVESTOR DAY 11 & 12 October 2016 CONTACT DETAILS Mickael Van den Hauwe Joost Uwents CFO CEO +32 (0)473 93 74 91 +32 (0)476 88 99 26 mickael.vandenhauwe@wdp.eu joost.uwents@wdp.eu www.wdp.eu 36

  37. Slide 37: Disclaimer

    DISCLAIMER Warehouses De Pauw Comm. VA, 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 Brussels. This presentation contains forward-looking information, foreca

  38. Slide 38: WDP - Warehouses with brains

    a wbDpP WAREHOUSES WITH BRAINS

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