Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — WDP — FY2014 Earnings Presentation
51 slides from Warehouses De Pauw SA's earnings presentation, Feb 11, 2015
Slide 1: FY 2014 Results
FY 2014 RESULTS 11 FEBRUARY 2015 1
Slide 2: Agenda
AGENDA > Introduction > 2014 accomplishments > Upscaling growth plan 2013-16 > Built on strong fundamentals > Operational review > Highlights FY 2014 > Results analysis > Financing structure > WDP share > Outlook 2015 2
Slide 3: Introduction
INTRODUCTION WAREHOUSES WITH BRAINS
Slide 4: 2014 Accomplishments
2014 ACCOMPLISHMENTS >97% Strong occupancy rate sustained 275m euros Net investment volume realized 40bps Cost of debt reduction after lengthening hedging instruments 6% Growth y/y in EPRA earnings per share 4
Slide 5: 2013-16 Growth Plan – Recap Initial Targets
2013-16 GROWTH PLAN – RECAP INITIAL TARGETS 600m euros Growth in portfolio by 2016 to 1.8bn euros 55-60% Maintenance of solid capital structure 4.40-4.60 euros Targeted EPRA earnings per share in 2016 5-6% CAGR (*) in EPRA earnings per share over 4 year horizon (*) Compound annual growth rate. 5
Slide 6: Roll-out Growth Plan 2013-16
ROLL-OUT GROWTH PLAN 2013-16 2014 2015 2016 2013 > Roll out new > A “year of > Capitalizing on > Envisaged portfolio growth plan construction” Benelux platform of 1.8bn euros > 40% or 250m > Multiple new > Upscaling euros of pre-let projects ambitions of growth targeted in execution plan growth > Ac
Slide 7: Roll-out Growth Plan 2013-16
ROLL-OUT GROWTH PLAN 2013-16 ca. 290m euros acquisitions (**) ca. 85% of 600m euros targeted ca. 525m euros portfolio growth identified identified ca. 115m euros projects in ca. 120m execution (*) euros projects executed (*) Excluding long-term uncommitted development potential on land reserves and
Slide 8: Upscaling Growth Plan 2013-16
UPSCALING GROWTH PLAN 2013-16 > Ambition to grow EPS in 4 years by CAGR 6-8% (from 5-6%) to 4.70-5.00 euros (from 4.40-4.60) in 2016 > … based on: ■ Increasing portfolio with 800m euros to 2bn euros (*) in existing markets, especially the Benelux ■ Continuation of matching property acquisitions with
Slide 9: 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 and e
Slide 10: Geographical Footprint
GEOGRAPHICAL FOOTPRINT Portfolio fair value split FY 2014(*) TOTAL > Value: 1.492 m euros > Gross yield: 8.0% > Vacancy rate: 2.6% > 2.4m m² buildings > 5.7m m² land The Netherlands > Value: 647m euros > Gross yield: 8.2% > Vacancy rate: 1.1% > 905,000 m² buildings > 1,591,000 m² land Belgium > Valu
Slide 11: Purchases 2014 & Planned 2015
PURCHASES 2014 & PLANNED 2015 Transaction Country Surface Type Ternat BE 9,000 m² Logistic site Zaventem BE 19,000 m² Multi-unit Asse (*) BE 26,000 m² Logistic site Bornem (**) BE 90,000 m² Logistic site + solar Zwolle NL 18,000 m² Logistic site Tilburg NL 20,000 m² Logistic site Duiven NL 23,000 m²
Slide 12: Purchases 2014
PURCHASES 2014 12
Slide 13: Projects Executed 2014
PROJECTS EXECUTED 2014 Location Country Surface Completion Tenant Londerzeel BE 14,500 m² Q1 2014 Colfridis Luik (Flémalle) BE 2,000 m² Q3 2014 DPD Willebroek, Victor Dumonl. BE 34,000 m² Q4 2014 Bakker Logistiek Groep Grimbergen (*) BE 60,000 m² Q4 2014 Caterpillar Distribution Services Europe Will
Slide 14: Belgium – Londerzeel (Colfridis)
BELGIUM – LONDERZEEL (COLFRIDIS) A 14,500 m² tailor-made warehouse along A12 motorway 14
Slide 15: Belgium – Luik (Flémalle) (DPD)
BELGIUM – LUIK (FLÉMALLE) (DPD) Extension of existing warehouse of around 2,000 m² 15
Slide 16: Belgium – Willebroek (Bakker Logistiek Groep)
BELGIUM – WILLEBROEK (BAKKER LOGISTIEK GROEP) Renovation and transformation of the existing site of some 34,000 m² into a fully-conditioned warehouse, fully reflecting the needs of the tenant 16
Slide 17: Belgium – Grimbergen (Caterpillar)
BELGIUM – GRIMBERGEN (CATERPILLAR) Existing site partially redeveloped and expanded into a strategic logistic hub of some 60,000 m² 17
Slide 18: The Netherlands – Eindhoven (Brocacef)
THE NETHERLANDS – EINDHOVEN (BROCACEF) Turnkey development of warehouse of more than 8,000 m² Check out YouTube movie 18
Slide 19: The Netherlands – Bleiswijk (MRC Transmark)
THE NETHERLANDS – BLEISWIJK (MRC TRANSMARK) Warehouse with adjoining offices of more than 10,000 m² 19
Slide 20: The Netherlands – Tiel (Kuehne + Nagel)
THE NETHERLANDS – TIEL (KUEHNE + NAGEL) Development project, totaling 27,000 m² of warehouse space with adjoining offices 20
Slide 21: Projects in Execution (Pre-let)
PROJECTS IN EXECUTION (PRE-LET) Location Country Type Surface Completion Tenant Vilvoorde BE New build 7,000 m² Q1 2015 Intertrans Londerzeel BE Redevelopment 9,500 m² Q3 2015 Lantmännen Unibake Schiphol Logistics Parc NL New build 14,000 m² Q1 2015 Kuehne + Nagel Harderwijk NL New build 17,000 m² Q
Slide 22: Belgium – Vilvoorde (Intertrans)
BELGIUM – VILVOORDE (INTERTRANS) A warehouse of around 7,000 m² for the benefit of logistics service provider Intertrans. 22
Slide 23: Belgium – Londerzeel (Lantmännen Unibake)
BELGIUM – LONDERZEEL (LANTMÄNNEN UNIBAKE) Development of 9,500 m² deep- freeze warehouse for 30,000 pallet places 23
Slide 24: The Netherlands – Schiphol (Kuehne + Nagel)
THE NETHERLANDS – SCHIPHOL (KUEHNE + NAGEL) Development of a brand new warehouse of 13,000 m² at a high quality logistic site 24
Slide 25: The Netherlands – Harderwijk (Alcoa)
THE NETHERLANDS – HARDERWIJK (ALCOA) Development of warehouse of around 17,000 m², tailor-made for Alcoa 25
Slide 26: The Netherlands – Zwolle (wehkamp.nl)
THE NETHERLANDS – ZWOLLE (WEHKAMP.NL) BREEAM-certified e-commerce warehouse, developed for wehkamp.nl of around 35,000 m² 26
Slide 27: The Netherlands – Tiel (Kuehne + Nagel)
THE NETHERLANDS – TIEL (KUEHNE + NAGEL) Development project, totaling 27,000 m² of warehouse space with adjoining offices 27
Slide 28: Development Potential (Uncommitted)
DEVELOPMENT POTENTIAL (UNCOMMITTED) Location Country Buildable surface (*) Port of Ghent BE 180,000 m² (**) Heppignies BE 80,000 m² Trilogiport BE 50,000 m² (**) Meerhout BE 23,000 m² (**) Sint-Niklaas BE 16,000 m² Courcelles BE 10,000 m² Libercourt FR 24,000 m² Various RO tbd > Land positions with
Slide 29: Highlights FY 2014 – Well on Track
HIGHLIGHTS FY 2014 – WELL ON TRACK OPERATIONAL > Strong fundamentals FINANCIAL RESULTS sustained (occupancy at > Active balance sheet > Net current result for 2014 ca. 97% and lease duration management (synchronized +6% y/y at 4.10 euros per at 7y) debt and equity issuance) share (*) > Global invest
Slide 30: Highlights FY 2014 – Key Figures
HIGHLIGHTS FY 2014 – WELL ON TRACK KEY FIGURES 31.12.2014 31.12.2013 Operational restated Fair value of real estate portfolio (incl. solar panels) (in million euros) (*) 1.567,3 1.273,1 Gross rental yield (incl. vacancy) (in %) 8,0 8,2 Net initial yield (EPRA) (in %) 7,3 7,5 Average lease duration (
Slide 31: Strong Portfolio Quality
STRONG PORTFOLIO QUALITY > Investments reflect long-term consideration and entrepreneurship Locations on strategic logistic corridors Robust building quality, integrating sustainability & flexibility throughout lifecycle Diversified portfolio and integrated facility management to tailor client
Slide 32: Occupancy
OCCUPANCY > Continued high occupancy ■ Occupancy rate 97.6% end 2014 (vs. 97.4% end 2013) ■ Lease renewal rate of circa 90% over the last 5 years ■ Already 70% of rental breaks maturing in 2015 (11% of total rent roll) secured to date Historical occupancy rate Lease maturity profile (till first brea
Slide 33: Diversified Client Base…
DIVERSIFIED CLIENT BASE… > Well-spread tenant profile ■ Active in multiple industries and predominantly large (inter)national corporates ■ Healthy mix between end-users and logistic service providers ■ Top tenants spread over multiple buildings / businesses / countries (max. building risk <5%) 13% 3
Slide 34: … 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 WEIGHTED AVERAGE LEASE DURATION (in Y) TILL FIRST BREAK TILL EXPIRATION Rental contracts (excl. solar panel
Slide 35: FY 2014 Consolidated Results
FY 2014 CONSOLIDATED RESULTS (*) Net current profit (in euros x 1 000) FY 2014 FY 2013 % Growth restated Rental income, net of rental-related expenses 93.438 82.585 13,1% I ncome from solar energy 6.819 6.353 7,3% Other operating income/charges 1.567 92 n.r. Property result 101.824 89.030 14,4% Prop
Slide 36: FY 2014 Consolidated Results (Per Share)
FY 2014 CONSOLIDATED RESULTS Per share data FY 2014 FY 2013 % Growth restated Net current result (EPRA) (*) 4,10 3,85 6,4% Result on the portfolio (I AS 40 result) (*) 1,20 -0,05 n.r. Rev aluation of financial instruments (I AS 39 result) (*) -1,18 1,35 n.r. Depreciation of solar panels (I AS 16 res
Slide 37: FY 2014 Consolidated B/S
FY 2014 CONSOLIDATED B/S (*) in euros x 1 000 31.12.2014 31.12.2013 31.12.2012 restated restated I ntangible fixed assets 93 114 212 Property inv estments 1 461 814 1 167 733 1 035 414 Other tangible fixed assets (incl. solar panels) 63 699 66 814 68 379 Financial fixed assets 13 573 23 384 23 323 T
Slide 38: FY 2014 Consolidated B/S
FY 2014 CONSOLIDATED B/S in euros x 1 000 31.12.2014 31.12.2013 31.12.2012 restated restated Capital 135.329 124.898 117.349 I ssue premiums 239.399 177.057 138.428 Reserv es 174.016 145.451 159.078 Net result of the financial year 64.750 79.674 35.326 Equity capital 613.494 527.080 450.181 Long-ter
Slide 39: Financial Management
FINANCIAL MANAGEMENT > Management of capital structure ■ Matching property acquisitions with simultaneous debt and equity issuance ■ Equity base strengthened by 90m euros (*) ■ Debt ratio expected to remain stable in 2015 vs. 2014 (at around 56%) > Debt financing ■ Retail bond issue of 125m euros wi
Slide 40: Maintaining Balanced Capital Structure
MAINTAINING BALANCED CAPITAL STRUCTURE 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 Portfolio growth 2010-14 (in million Funding sources 2010-14 (in million euros) euros) capex existing portfolio retained earnings solar panels new equity pre-let (re-)developments disposals acq
Slide 41: Focus on Sustainable Cash Flow
FOCUS ON SUSTAINABLE CASH FLOW Investments Generating strong cash flow profile > Portfolio yielding ~8% > Recurring return on equity >10% > High occupancy rate ~97% > High ICR > Lease duration ~7y Funding > Balanced risks > Opex <10% of rents > Stable debt ratio ~55-60% > High income visibility > Co
Slide 42: Financing Structure
FINANCING STRUCTURE > Solid debt metrics ■ Debt ratio FY 2014 at 55.8% ■ ICR at 3.3x based on long-term visibility and high hedge ratio (currently at 82%) ■ Cost of debt at 3.5% during FY 2014 and evolving towards 3% in 2015 Evolution hedge ratio 90% 8,0 Commercial paper 80% 7,0 16% 70% 6,0 60% 5,0
Slide 43: Financing Structure
FINANCING STRUCTURE > Well-spread debt maturities ■ Duration of outstanding debt of 3.5y (incl. commercial paper) ■ Duration of long-term credit facilities of min. 4.1y and max. 4.4y (*) ■ Committed undrawn long-term credit lines of 130m euros(**) Debt maturities (min.) (*) Debt maturities (max.) (*
Slide 44: WDP Share
WDP SHARE 35,92 -3,25 +4,10 +1,40 +0,97 39,13 +0,97 +1,40 39,13 35,92 -3,25 +4,10 NAV (EPRA) Dividend Net current Effect Portfolio NAV (EPRA) 2013 distribution result capital result and 2014 increases other > 18% return on equity > 2/3 cash based and 1/3 fair value movements 44
Slide 45: WDP Share
WDP SHARE > Share statistics ■ NAV (EPRA) per share of 39.2 euros at end 2014 ■ Market cap of ca. 1.2bn euros ■ Free float of 73% - Family Jos De Pauw 27% WDP share price vs. NAV EPS and DPS history 80 5,00 4,50 70 4,00 60 3,50 50 3,00 40 2,50 2,00 30 1,50 20 1,00 10 0,50 0 - WDP share price Net Ass
Slide 46: WDP Share
WDP SHARE > Return of WDP share 800 700 600 500 400 300 200 100 0 FTSE EPRA/NAREIT Belgium/Luxembourg Index Total return (in euros) FTSE EPRA/NAREIT Euro Zone Index Total return (in euros) FTSE EPRA/NAREIT Developed Europe Index Total return (in euros) WDP Total return (in euros) 46
Slide 47: Outlook 2015
OUTLOOK 2015 > Expected net current result per share (EPRA) of minimum 4.40 euros (*) > … based on: ■ high occupancy (projected to be minimum 96% on average throughout 2015) ■ high lease renewal rate (11% lease expiries in 2015, of which already 70% renewed) ■ further portfolio growth conform to gro
Slide 48: Consistent Performance
CONSISTENT PERFORMANCE Earnings growth based on constant capital structure 4,50 65% 4,00 3,50 60% 3,00 2,50 55% 2,00 1,50 1,00 50% 0,50 - 45% 2009 2010 2011 2012 2013 2014 2015E EPS (EPRA) DPS Debt ratio (rhs) > Creating growth and profitability > Efficient deployment of capital (debt and equity) 48
Slide 49: 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 49
Slide 50: 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
Slide 51: Warehouses with Brains
a wbDpP WAREHOUSES WITH BRAINS