Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — 9M 2022 Earnings Presentation
44 slides from Warehouses De Pauw Sa's earnings presentation, Oct 19, 2022
Slide 1: 9M 2022 Results
9M 2022 RESULTS 19 October 2022 1 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights • Scorecard growth plan 2022-25 • 9M 2022 activity report • ESG • Results and balance sheet • Financial management • WDP share • Outlook 2022 2
Slide 3: 9M 2022 Highlights | Sustained performance
9M 2022 Highlights | Sustained performance Positioned for further growth SECURED DEVELOPMENT LOAN-TO-VALUE PIPELINE ~660M EUROS 39 % ~535 million euros INVESTMENTS SECURED (1) PORTFOLIO EPRA EPS EPRA EPS 6.9 billion euros 0.95 +14% y/y euro 1.25 +14% y/y euros OCCUPANCY RATE 9M 2022 OUTLOOK 2022 99%
Slide 4: 2022-25 Growth plan | Scorecard
2022-25 Growth plan | Scorecard Targeted portfolio growth secured 30 % 430 million euros(1) DYNAMIC PORTFOLIO DEVELOPMENT 217m euros green- and brownfield projects Acquisitions gross (2) and including solar ACQUISITIONS(3) PROJECTS 6m euros disposals 211 million euros 219 million euros Additional in
Slide 5: Growth for Future
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: Growth for Future: consistent growth trajectory
GROWTH FOR FUTURE EPRA EPS CAGR 8% CAGR 8% CONSISTENT GROWTH TRAJECTORY Culture EPRA EPS % y/y E E E E EPRA EPS 9
Slide 10: Activity Report 9M 2022
ACTIVITY REPORT 9M 2022 10
Slide 11: Acquisitions
Acquisitions EXISTING WAREHOUSES LAND RESERVE 180,000 m² 140,000 m² Capex 153m euros (1) Gross initial yield (1) Cost to come: 53 million euros which is scheduled for Q4 2022, relates to the second phase of the sale-and-leaseback 4.8% with Sedimmo NV/SA, by means of a contribution in kind. 11
Slide 12: Towards a unique pan-EU platform
Towards a unique pan-EU platform Strategic partnership 10% stake in CATENA Sharing knowledge (sustainability – operations – development) Broadening EU footprint Major listed logistics real estate player in Scandinavia Enhancing client services Diversified logistics portfolio offering a wide range of
Slide 13: Projects Executed
PROJECTS EXECUTED 13
Slide 14: Projects executed
Projects executed Capex 243m euros (1) (1) Gross yield in the Benelux: 6.1% and in Romania: 8.2%. Gross initial yield 6.8% 14
Slide 15: Projects Under Development
PROJECTS UNDER DEVELOPMENT 15
Slide 16: Projects under development
Projects under development(1) High pre-letting rate (1) Based on 100% of the investment for the fully consolidated entities (including WDP Romania) and the proportionate share for the joint ventures (i.e. 55% for Luxembourg and 29% for the WDPort of Ghent Big Box – X2O Badkamers/Exterioo). The letta
Slide 17: Projects under development
Projects under development 90% 13 y 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 Timisoa
Slide 18: 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 19: WDP Energy off the starting blocks
WDP Energy off the starting blocks Green conversion of existing site Supporting decarbonisation of client’s supply chain On-site energy production combined with infrastructure Green Decarbonisation of transport and operations Mobility Hub Public charging infrastructure +55 MWp Ambitioned total capac
Slide 20: 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). In the IFRS accounts, those joint ventures are reflected through the equity
Slide 21: High-quality portfolio
High-quality portfolio WAREHOUSE TYPE WAREHOUSE QUALITY ▪ Locations on strategic logistic corridors with around 50% suitable for urban logistics ▪ Robust building quality, integrating sustainability & flexibility throughout lifecycle 7.4 y avg. age ▪ Diversified portfolio and integrated facility man
Slide 22: Occupancy
Occupancy High occupancy and strong customer retention HISTORICAL OCCUPANCY RATE LEASE MATURITY PROFILE (TILL FIRST BREAK) ▪ Occupancy rate 99.0% on 30 September 2022 (vs. 98.5% end 2021) ▪ 90% of the 14% of leases maturing in 2022 already extended ▪ Lease renewal rate of circa 90% over the last 10
Slide 23: Diversified
Diversified Well-spread tenant profile TOP-10 TENANTS (EXCL. SOLAR ~28%) (1) TENANT INDUSTRY ACTIVITIES BE NL RO 12% Dedicated e-commerce ▪ Active in multiple industries and predominantly large (inter)national corporates ▪ Healthy mix between end-users and logistic service providers ▪ Top tenants sp
Slide 24: ESG
ESG 24
Slide 25: 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 26: 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 27: 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 28: 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 29: Financial Results 9M 2022
MOO \ NANANAAN NTT il LAMAR We Re 1 dil, pp | us LA Ap Z 9M 2022
Slide 30: Consolidated results
Consolidated results Analytical P&L 9M 2022 9M 2021 Ayfy (abs.) Ayly (%) Rental income, net of rental-related expenses 216,415 188,595 27,820 14.8% Indemnification related to early lease terminations ° 435 -435 ner. Income from solar energy 18,323 15,150 20.9% (Other operating income/costs 1,449 3,4
Slide 31: Consolidated results
Consolidated results (1) Including solar panels. 31 (2) Including the proportional share of WDP in the portfolio of the joint ventures (WDP Luxembourg at 55%).
Slide 32: Consolidated results B/S
Consolidated results B/S 30.09.2022 31.12.2021 A (abs.) A (%) Intangible fixed assets 760 1,101 -341 nee. Investment properties 6,593,586 5,795,243, 798,343 13.8% Other tangible fixed assets (solar panels inclusive) 187,611 164,586 23,024 14.0% Financial fixed assets 158,663 7.126 151,537 2126.5% Tr
Slide 33: Consolidated results B/S
Consolidated results B/S WwDP Metrics --+- 30.09.2022 31.12.2021 A(abs.) A(%) Pa a IFRS NAV 222 19.0 32 17.0% mia ae EPRA NTA 220 20.1 19 9.5% EPRA NRV 238 217 24 9.5% “++. EPRA NOV 23.1 19.0 aa 21.8% Share price 251 422 74 40.4% ~~ Premium / (discount) vs. EPRA NTA 14.1% 109.8% 95.7% ne. +--+. Loan
Slide 34: Financial management
Financial management Leverage Net debt / EBITDA (adj.)(1) Cost of debt Loan-to-value 8.5 x 1.9 % 39.2 % Coverage 5.9 Interest Coverage Ratio Hedge ratio 100 of financing % needs covered x 86 % Green financing ▪ 100% Refinancing until at least mid-2024 Financing Unused credit facilities(2) Duration o
Slide 35: Financial structure
Financial structure Solid debt metrics and active liquidity management DEBT COMPOSITION EVOLUTION HEDGE RATIO ▪ Cost of debt at 1.9 % ▪ ICR at 5.9x based on long-term visibility and hedge ratio at 86% ▪ Interest rate sensitivity: +100bps Euribor, less than -1.5% EPRA EPS, more than offset by rent in
Slide 36: Financial structure
Financial structure Well-spread debt maturities ▪ Well-spread maturity profile(1) ▪ Duration of outstanding debt of 5.4 y ▪ Commercial paper programme (capped at 200m euros) fully covered (1) Excluding the back-up facilities to cover the commercial paper program. 36
Slide 37: Financial policy
Financial policy Strict capital discipline supporting further growth NET DEBT / EBITDA (adj.) LOAN-TO-VALUE(1) ▪ 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-valu
Slide 38: Share statistics
Share statistics WDP Share ▪ Market cap ~4.5bn euros ▪ Free float of 77% - Family Jos De Pauw 23% ▪ Member of EPRA, Euronext BEL20, AMX, DJSI Sustainability Index Europe and GPR indices 38
Slide 39: Outlook
OUTLOOK 39
Slide 40: Outlook 2022
Outlook 2022 Guidance confirmed EPRA EPS DPS +14% +14% y/y y/y 1.25 euros 1.00 euro 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 ▪ Provision should WDP not be able to continu
Slide 41: Outlook
Outlook Growth plan 2022-25: ▪ Current evolution of external factors such as market volatility, a weakening macroeconomic outlook, a rising cost of capital and changed credit cycle and heightened geopolitical tensions. This emphasizes the importance of ▪ continued profitability (e.g. the Energy as a
Slide 42: Q&A
Q&A 42
Slide 43: Joost Uwents, Mickael Van den Hauwe
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 43
Slide 44: 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