Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — 9M 2021 Earnings Presentation
39 slides from Warehouses De Pauw Sa's earnings presentation, Oct 20, 2021
Slide 1: 9M 2021 Results
9M 2021 RESULTS 20 October 2021 www.wdp.eu
Slide 2: Agenda 9M 2021
AGENDA 9M 2021 • Highlights 9M 2021 • Roll-out growth plan 2019-23 • Industry drivers • ESG • 9M 2021 activity report • Results and balance sheet • Financial management • WDP share • Outlook 2021 WDP 9M 2021 RESULTS 2
Slide 3: Highlights 9M 2021
Highlights 9M 2021 9M 2021 Positioned for further growth DEVELOPMENT Rent collection rate PIPELINE ~300M EUROS 99% ~520 million euros INVESTMENTS SECURED PORTFOLIO EPRA EPS EPRA EPS ~5.6 billion euros 0.83 +10% y/y euro 1.10 +10% y/y euros OCCUPANCY RATE 9M 2021 OUTLOOK 2021 99% sustained WDP 9M 202
Slide 4: Roll-out scorecard growth plan as of 9M 2021
Roll-out scorecard growth plan as of 9M 2021 5Y GROWTH PLAN Towards a 6bn portfolio in 2019-23 Targeted portfolio growth secured 65 % 1.3 billion euros(1) DYNAMIC PORTFOLIO DEVELOPMENT 250m euros 1,090m euros acquisitions gross green- and brownfield projects 40m euros ACQUISITIONS(2) PROJECTS 11m eu
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 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 Corporate Attraction of talent S HSES S citizenship Stakeholder engagement S strategy Charity Di
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 9M 2021 RESULTS 9
Slide 10: Activity Report 9M 2021
ACTIVITY REPORT 9M 2021 WDP 9M 2021 RESULTS 10
Slide 11: Acquisitions
Acquisitions 9M 2021 Investment Lettable area budget Location Tenant (in m²) (in million euros) BE Gent Gates 20,000 12 BE Lokeren, Brandstraat 30 DPG Media Services 36,905 26 BE 56,905 38 NL Zoetermeer Fully let 10,000 7 NL Zuid-Limburg land reserve 176,779 19 NL 186,779 26 RO Bucharest - Dragomire
Slide 12: Projects Executed
9M 2021 PROJECTS EXECUTED
Slide 13: Projects executed
Projects executed 9M 2021 Investment Delivery Lettable Lettable area (inarea budget Delivery Investment budget Location Tenant date m²) Location Tenant date (in m(in 2) million euros) (in million euros) BE Asse - Mollem, Zone 5 nr. 191, 192, 320, 321 AMP 3Q21 3,200 2 BE Courcelles, rue de Liège 25 C
Slide 14: Projects in Execution
9M 2021 PROJECTS IN EXECUTION
Slide 15: Projects under development (pre-let)
Projects under development (pre-let) 9M 2021 Investment budget Planned Lettable area (in (in million Location Tenant delivery date m²) euros) BE Geel, Hagelberg 12 Distrilog 1Q22 8,000 4 BE Heppignies Trafic 1Q22 2,000 5 BE WDPort of Ghent X2O / Overstock Home / Overstock Garden 1Q23 150,000 23 BE W
Slide 16: Projects under development (pre-let)
Projects under development (pre-let) 92 Pre-let % 9M 2021 12 y Avg. lease duration RO Bucharest - Stefanestii de Jos (2) Eobuwie 4Q21 15,640 8 RO Bucharest - Stefanestii de Jos (2) Metro - Extension 4Q21 9,715 5 RO Buzau Metro 2Q22 3,750 6 RO Cluj Fedex 4Q21 2,198 2 RO North-Cluj region Various 4Q21
Slide 17: Development potential
Development potential 9M 2021 Land reserves continuously being replenished NL BE-LU-FR +37.6 -36.8 -13.6 +43.1 +32.1 DEVELOPMENT -43.1 143.2 +13.6 110.3 111.2 >1,000,000 POTENTIAL M²(1) RO (1) Potential buildable surface. Land reserve Additional Transfers Land reserve Land reserves Transfers Future
Slide 18: Portfolio fair value split
Portfolio fair value split(1) 9M 2021 (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 at 55% and Germany at 50%). In the IFRS accounts, those joint ventures
Slide 19: Evolution portfolio yield
Evolution portfolio yield 9M 2021 Fair value standing portfolio Fair value 870 euro/m²(1) 9% 6,000 Million euros 8% 5,000 7% 6% 4,000 2/3 5% 3,000 4% 3% 2,000 2% 1,000 1% 1/3 0% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 2021 Portfolio proportionate Gross initial yiel
Slide 20: High-quality portfolio
High-quality portfolio 9M 2021 Other Other 1.7% Class A warehouse 1.8% Future redevelopment General warehouse Class C warehouse 60.6% 2.3% 3.7% 54.0% Cross-dock Class B 3.9% warehouse Warehouse High bay & Multiple floor Type of 10.2% quality 5.4% warehouse Manufacturing Class A green certified 8.4%
Slide 21: Urban logistics
Urban logistics 9M 2021 URBAN WAREHOUSES Transfer of goods in the last leg of the supply chain Within vicinity of densely populated areas, typically within a 30-minute drive Optimized delivery of fast-moving products of the property portfolio Warehouse suited for urban logistics 51% suited for urban
Slide 22: Occupancy
Occupancy 9M 2021 High occupancy and strong customer retention Historical occupancy rate Lease maturity profile (till first break) 100% 98% 95% 93% 90% 88% 85% Q3 2021 2013 2014 2015 2016 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2017 2018 2019 2020 Occupancy rate Vacancy
Slide 23: Diversified tenant profile
Diversified 9M 2020 Well-spread tenant profile 65% end user 35% 3PL Top-10 tenants (excl. solar~27%)(1) Tenant industry activities 11% dedicated e-commerce 3.4% Industrial Solar panels BE NL RO 5.8% 4.7% 5.1% 18.6% Retail (Food) Kuehne + Nagel 5.1% FMCG Greenyard 3.5% 5.2% Food, fruit & vegetables C
Slide 24: Financial Results 9M 2021
FINANCIAL RESULTS 9M 2021 WDP 9M 2021 RESULTS 24
Slide 25: Consolidated results
Consolidated results 9M 2021 ANALYTICAL P&L (in euros x 1.000) 9M 2021 9M 2020 ∆ y/y (abs.) ∆ y/y (%) Rental income, net of rental-related expenses 188,595 168,733 19,862 11.8% Indemnification related to early lease terminations 435 0 435 n.r. Income from solar energy 15,150 14,575 575 3.9% Other op
Slide 26: Consolidated results
Consolidated results 9M 2021 OPERATIONAL (in %) 9M 2021 9M 2020 ∆ y/y (abs.) % Growth Occupancy rate (1) 98.7% 98.6% 0.2% n.r. Like-for-like rental growth 1.4% 2.3% -0.9% n.r. Operating margin (2) 91.3% 91.1% 0.1% n.r. PER SHARE DATA (in euros per share) 9M 2021 9M 2020 ∆ y/y (abs.) % Growth EPRA Ea
Slide 27: Consolidated B/S
Consolidated B/S 9M 2021 (in euros x 1.000) 30.09.2021 31.12.2020 ∆ (abs.) ∆ (%) Intangible fixed assets 1,237 1,193 44 n.r. Investment properties 5,390,517 4,566,601 823,915 18.0% Other tangible fixed assets (solar panels inclusive) 143,649 126,719 16,930 13.4% Financial fixed assets 5,714 6,929 -1
Slide 28: Consolidated B/S
Consolidated B/S 9M 2021 METRICS 30.09.2021 31.12.2020 ∆ (abs.) ∆ (%) IFRS NAV 17.4 13.5 3.9 29.0% EPRA NTA 18.3 14.3 4.0 27.8% EPRA NRV 19.8 15.7 4.2 26.5% EPRA NDV 17.4 13.5 3.9 29.1% Share price 35.0 28.3 6.7 23.8% Premium / (discount) vs. EPRA NTA 91.3% 97.4% -6.1% n.r. Loan-to-value 37.9% 45.0%
Slide 29: Financial management
Financial management 9M 2021 Leverage Loan-to-value 7.7 x Net debt / EBITDA (adj.)(1) 2.1 % Cost of debt 37.9 % Coverage Interest Coverage Ratio Hedge ratio 5.6 x 86 % Green financing 100 of financing needs ✓ % covered 100% Refinancing until at least Financing 38 % 800 6.6 end-2022 Duration of hedge
Slide 30: Financing structure
Financing structure 9M 2021 Solid debt metrics and active liquidity management Debt composition Evolution hedge ratio y y Straight loan 1.1% y Commercial paper y 9.5% Long-term bilateral credit lines y 75.0% y Bonds 14.3% y y edge ratio Weighted average hedge duration (y (rhs • Cost of debt at 2.1%
Slide 31: Financing structure
Financing structure 9M 2021 Well-spread debt maturities Bonds ong term credit facilities (drawn ommercial paper straight loans ong term credit facilities (undrawn • Liquidity through undrawn long-term credit lines of ca. 600 million euros (1) • Duration of outstanding debt of 4.5y and all drawn and
Slide 32: Share statistics
Share statistics WDP SHARE • Market cap >6bn euros • Free float of 76% - Family Jos De Pauw 24% • Member of EPRA, Euronext BEL20, AMX and GPR indices WDP 9M 2021 RESULTS 32
Slide 33: Outlook 2021
OUTLOOK 2021 WDP 9M 2021 RESULTS 33
Slide 34: Outlook 2021
Outlook 2021 OUTLOOK 2021 EPRA EPS DPS +10 p.a. % +10 p.a. % 1.10 euros 0.88euros Underlying assumptions: • Strong impact from pre-let development completions in 2020-21 • A minimum average occupancy rate of 98% and stable client payment behaviour (rent collection rate of 99% in Q3 2021). As for the
Slide 35: Q&A
Q&A a WODP 9M 2021 RESULTS 35
Slide 36: Joost Uwents and 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 37: 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 38: 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 39: 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