Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — Q1 2021 Earnings Presentation
37 slides from Warehouses De Pauw Sa's earnings presentation, Apr 21, 2021
Slide 1: Q1 2021 Results
Q1 2021 RESULTS 21 April 2021 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights Q1 2021 • Roll-out growth plan 2019-23 • Industry drivers • ESG • Q1 2021 activity report • Results and balance sheet • Financial management • WDP share • Outlook 2021 and Covid-19 statement WDP Q1 2021 RESULTS 2
Slide 3: Highlights Q1 2021
Highlights Q1 2021 Q1 2021 Positioned for further growth DEVELOPMENT PIPELINE ~100M EUROS Rent collection rate ~550 INVESTMENTS SECURED 98% million euros PORTFOLIO ~5 billion euros EPRA EPS 0.24 euro OCCUPANCY RATE +8% y/y 99% sustained WDP Q1 2021 RESULTS 3
Slide 4: Roll-out scorecard growth plan as of Q1 2021
Roll-out scorecard growth plan as of Q1 2021 5Y GROWTH PLAN Towards a 6bn portfolio in 2019-23 Targeted portfolio growth secured 56 % 1.1 billion euros(1) DYNAMIC PORTFOLIO DEVELOPMENT 188m euros ACQUISITIONS(2) PROJECTS 860m euros acquisitions gross Green- and brownfield projects 18m euros disposal
Slide 5: Growth plan 2019-23
Growth plan 2019-23 5Y GROWTH PLAN Towards a 6bn portfolio Property portfolio EPRA EPS DPS ambition 2023(2,3) ambition 2024(2,3) ambition 2024(2,3) +2 (1) +6 % +6 % billion euros new p.a. p.a. investments at least 1.25 >6 billion euros +10 p.a. % euros + 45 % 1.00 euros cumulatively BASE YEAR 2018 (
Slide 6: Growth plan 2019-23: Based on
Based on 5Y GROWTH PLAN • Increasing portfolio with 2.0bn 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, capitalizing on WDP’s developer/investor model • Consid
Slide 7: Industry drivers
Industry drivers MARKET INSIGHTS • Omni-channel business models are most resilient with elevated levels of online sales OMNI-CHANNEL • Online shopping will play a significant role in the demand for cold storage space • Pent-up demand from parcel companies • Leading to more complex developments and i
Slide 8: WDP's journey on ESG
WDP’s journey on ESG ESG Goals for WDP’s corporate social responsibility ESG Framework ESG Roadmap 2019-23 ESG 2018 2019 2020 2021 2022 2023 #TeamWDP training and development ESG KPI for each team member Attraction of talent S HSES Stakeholder engagement S Charity Employee Code of Conduct Supplier C
Slide 9: Ratings and indices
Ratings and indices ESG Progress status and future ambition 2019 2020 Ambition BB BBB A Dec 2018 Not Prime Not Prime Prime D+ C- C Corporate ratings Index 22/100 42/100 Inclusion WDP Q1 2021 RESULTS 9
Slide 10: Activity Report Q1 2021
ACTIVITY REPORT Q1 2021 WDP Q1 2021 RESULTS 10
Slide 11: Projects executed
PROJECTS EXECUTED
Slide 12: Projects executed
Projects executed Q1 2021 Location Delivery Lettable area Investment Investment budget Tenant (in m2) (in million euros) date Delivery Lettable area budget Location Tenant date (in m²) (in million euros) 2019-23 NL Bleiswijk, Prismalaan West 31 Boland 1Q21 16,400 18 NL Dordrecht Crocs Europe 1Q21 48
Slide 13: Projects in execution
Q1 2021 PROJECTS IN EXECUTION
Slide 14: Projects under development (pre-let)
Projects under development (pre-let) Q1 2021 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 2Q21 2,190 2 BE Geel, Hagelberg 12 Distrilog 1Q
Slide 15: Projects under development (pre-let)
Projects under development (pre-let) 92 Pre-let % Q1 2021 12 y Avg. lease 2019-23 duration RO Bucharest - Stefanestii de Jos LPP 3Q21 22,000 10 RO Bucharest - Stefanestii de Jos Eobuwie 3Q21 15,640 8 RO Cluj Fedex 3Q21 2,198 2 RO Craiova Profi 2Q21 58,000 33 RO Paulesti Rosti 2Q21 11,000 7 RO Roman
Slide 16: Development potential
Development potential Q1 2021 Land reserves continuously being replenished NL BE-LU-FR DEVELOPMENT >1,000,000 POTENTIAL M²(1) RO (1) Potential buildable surface. WDP Q1 2021 RESULTS 16
Slide 17: Development potential
Development potential Further strengthening the landbank Gelsenkirchen - Germany Bucharest - Romania Capex 10m euros WDP Q1 2021 RESULTS 17
Slide 18: Portfolio fair value split
Portfolio fair value split(1) Q1 2021 (1) Excluding solar panels and including projects, land reserve and assets held for sale. Vacancy rate excluding solar panels (EPRA definition). Including the proportional share of WDP in the portfolio of the joint ventures (mainly WDP Luxembourg at 55%). In the
Slide 19: Evolution portfolio yield
Evolution portfolio yield Q1 2021 Fair value standing portfolio 2/3 1/3 (1) Calculated on a warehouse square meter equivalent basis. WDP Q1 2021 RESULTS 19
Slide 20: High-quality portfolio
High-quality portfolio Q1 2021 Warehouse Type of quality warehouse average age: 7.2y • Locations on strategic logistic corridors • Robust building quality, integrating sustainability & flexibility throughout lifecycle • Diversified portfolio and integrated facility management to tailor clients’ need
Slide 21: Occupancy
Occupancy Q1 2021 High occupancy and strong customer retention Historical occupancy rate Lease maturity profile (till first break) • Occupancy rate 98.8% on 31 March 2021 (vs. 98.6% end 2020) • 67% of the 10% of leases maturing in 2021 already extended • Lease renewal rate of circa 90% over the last
Slide 22: Diversified
Diversified Q1 2021 Well-spread tenant profile 36% 3PL 64% end user Top-10 tenants (~29%)(1) Tenant industry activities 12% 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 23: Consolidated results
Consolidated results Q1 2021 ANALYTICAL P&L (in euros x 1.000) Q1 2021 Q1 2020 ∆ y/y (abs.) ∆ y/y (%) Rental income, net of rental-related expenses 61,246 54,031 7,216 13.4% Indemnification related to early lease terminations 220 0 220 n.r. Income from solar energy 2,812 2,740 72 2.6% Other operatin
Slide 24: Consolidated results
Consolidated results Q1 2021 OPERATIONAL (in %) Q1 2021 Q1 2020 ∆ y/y (abs.) % Growth Occupancy rate (1) 98.8% 98.6% 0.3% n.r. Like-for-like rental growth 1.8% 2.3% -0.5% n.r. (2) Operating margin 90.4% 89.6% 0.8% n.r. PER SHARE DATA (in euros per share) Q1 2021 Q1 2020 ∆ y/y (abs.) % Growth EPRA Ea
Slide 25: Consolidated B/S
Consolidated B/S Q1 2021 (in euros x 1.000) 31.03.2021 31.12.2020 ∆ (abs.) ∆ (%) Intangible fixed assets 1,369 1,193 176 n.r. Investment properties 4,775,366 4,566,601 208,764 4.6% Other tangible fixed assets (solar panels inclusive) 131,462 126,719 4,742 3.7% Financial fixed assets 5,979 6,929 -950
Slide 26: Consolidated B/S
Consolidated B/S Q1 2021 METRICS 31.03.2021 31.12.2020 ∆ (abs.) ∆ (%) IFRS NAV 15.0 13.5 1.5 11.0% EPRA NTA 15.7 14.3 1.4 9.8% EPRA NRV 17.1 15.7 1.4 8.9% EPRA NDV 14.9 13.5 1.5 11.1% Share price 28.2 28.3 -0.1 -0.3% Premium / (discount) vs. EPRA NAV 79.3% 97.4% -18.1% n.r. Loan-to-value 40.2% 45.0%
Slide 27: Financial management
Financial management Q1 2021 Leverage Loan-to-value 7.5 x Net debt / EBITDA (adj.)(1) 2.1 % Cost of debt 40.2 % Coverage Interest Coverage Ratio Hedge ratio 4.7 x 96 % Green financing 100 of financing needs ✓ % covered 100% Refinancing until end-2022 Financing 32 % 640 ✓ ✓ 100% CAPEX 2021-22 covered
Slide 28: Financing structure
Financing structure Q1 2021 Solid debt metrics and active liquidity management Debt composition Evolution hedge ratio • Cost of debt at 2.1% for 2020, declining further towards 1.8% by end-2021 • ICR at 4.7x based on long-term visibility and hedge ratio (at 95.8%) • Interest rate sensitivity: +100bp
Slide 29: Financing structure
Financing structure Q1 2021 Well-spread debt maturities • Liquidity through undrawn long-term credit lines of over 850 million euros (1) • Duration of outstanding debt of 4.3y and 5.3y excl. commercial paper • Commercial paper programme (capped at 200m euros) fully covered (1) Excluding the back-up
Slide 30: Share statistics
Share statistics WDP SHARE • Market cap >5bn euros • Free float of 76% - Family Jos De Pauw 24% • Member of EPRA, Euronext BEL20, AMX and GPR indices WDP Q1 2021 RESULTS 30
Slide 31: Outlook 2021 / Statement Covid-19
OUTLOOK 2021 STATEMENT COVID-19 WDP Q1 2021 RESULTS 31
Slide 32: Outlook 2021 and Covid-19 statement
Outlook 2021 and Covid-19 statement OUTLOOK 2021 AND COVID-19 STATEMENT • Outlook 2021 confirmed • EPRA EPS: 1.07 euros, an increase of 7% y/y • DPS: 0.86 euros, y/y increase in line with projected EPRA EPS growth rate and based on low payout ratio of 80% • Underlying assumptions: • Strong impact fr
Slide 33: Q&A
Q&A a WODP Q1 2021 RESULTS 33
Slide 34: 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 35: 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 36: 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 37: 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