Warehouses De Pauw Sa · EURONEXT:WDP
Warehouses De Pauw Sa — FY2020 Earnings Presentation
49 slides from Warehouses De Pauw Sa's earnings presentation, Jan 29, 2021
Slide 1: FY 2020 Results
FY 2020 RESULTS 29 January 2021 www.wdp.eu
Slide 2: Agenda
AGENDA • Highlights FY 2020 • Roll-out growth plan 2019-23 • Market insights • ESG • FY 2020 activity report • Financial management • WDP share • Outlook 2021 and Covid-19 statement WDP FY 2020 RESULTS 2
Slide 3: Highlights FY 2020
Highlights FY 2020 FY 2020 Positioned for further growth DEVELOPMENT PIPELINE >450M EUROS Rent collection rate ~540 INVESTMENTS SECURED 99% million euros PORTFOLIO ~4.8 billion euros EPRA EPS 1.00 euros OCCUPANCY RATE +8% y/y 99% sustained WDP FY 2020 RESULTS 3
Slide 4: Roll-out scorecard growth plan as of FY 2020
Roll-out scorecard growth plan as of FY 2020 5Y GROWTH PLAN Towards a 5bn portfolio in 2019-23 Targeted portfolio growth secured 68 % ~ billion euros(1) 1 DYNAMIC PORTFOLIO DEVELOPMENT 173m euros ACQUISITIONS(2) PROJECTS 800m euros acquisitions gross Green- and brownfield projects 18m euros disposal
Slide 5: Growth plan 2019-23 upgrade: towards a 6bn portfolio
Growth plan 2019-23 UPGRADE 5Y GROWTH PLAN Towards a 6bn portfolio Property portfolio EPRA EPS DPS ambition 2023(2,3) ambition 2024(2,3) ambition 2024(2,3) +500m euros +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 cumulativ
Slide 6: Growth plan 2019-23: upgrade versus previous
Growth plan 2019-23 5Y GROWTH PLAN Towards a 6bn portfolio UPGRADE Property portfolio EPRA EPS DPS ambition 2023(2,3) ambition 2024(2,3) ambition 2024(2,3) at least >6 billion euros + 2.0 billion euros investments (1) + 10% annually 1.25 euros + 45% cumulatively annually + 6% 1.00 euros + 6% annuall
Slide 7: 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 8: Market Insights - WDP Positioning
MARKET INSIGHTS WDP POSITIONING WDP FY 2020 RESULTS 8
Slide 9: Resilient occupier market and optimistic outlook
Resilient occupier market and optimistic outlook MARKET INSIGHTS BELGIUM - LUXEMBOURG NETHERLANDS ROMANIA Market Vacancy GDP growth Market Vacancy GDP growth Market Vacancy GDP growth share rate share rate share rate 2020A 2021E 2020A 2021E 2020A 2021E 15% 1.2% -8.4% +4.1% 7% 4.7% -5.3% +2.2% 21% 6.
Slide 10: Market trends
Market trends MARKET INSIGHTS Logistics demand holds up Take-up has remained resilient Covid-19 brought forward higher online sales 12 Million 25% 10 20% 8 15% 6 10% 4 2 5% 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Belgium Netherlands France Germany Romania UK EU Average Q3 Belgium France Ne
Slide 11: Market trends
Market trends MARKET INSIGHTS Vacancy rates Prime yields 8 10 7 9 8 6 7 5 6 4 5 3 4 3 2 2 1 1 0 0 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Belgium Netherlands Romania France WDP vacancy rate Belgium Netherlands Romania France WDP gross yield • Vacancy broadly unchanged and pipelin
Slide 12: Industry drivers: omni-channel
Industry drivers MARKET INSIGHTS OMNI-CHANNEL • Accelerated online growth spur demand for new warehouse space • Increased number of (new) consumers • Retailers are strengthening their omni- channel presence • Low penetration segments see rapid growth in revenues • Reverse logistics WDP is developing
Slide 13: Industry drivers: automation
Industry drivers MARKET INSIGHTS AUTOMATION • Modernisation of supply chain and increased efficiency of floorspace • Complexity in logistics supply chain • Predictive analytics and big data • Enhancing prediction and planning, creating smart warehouses • Conveyor belts to autonomous robots and elect
Slide 14: Industry drivers: supply chain transformation
Industry drivers MARKET INSIGHTS SUPPLY CHAIN TRANSFORMATION • Supply chain reconfiguration • Disruptions in the movement of goods reflect the importance of resilient supply chains • Just in time to just in case • Globalization to regionalization • Real estate is just a fraction of the total supply
Slide 15: Industry drivers: sustainable developments
Industry drivers MARKET INSIGHTS SUSTAINABLE DEVELOPMENTS • Efficient land utilisation and multi- level construction • Brownfield (re)-developments • Limiting environmental impact • Building for the future: integrating latest techniques and technologies • Strategic locations as value creator • Circu
Slide 16: Covid-19 and beyond
Covid-19 and beyond 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 an
Slide 17: ESG 2020 realisations
ESG 2020 realisations ESG Employee development HSES Employee training program Awareness ESG KPI for every employee On-site promotion Covid-19 Safe working environment Working from home and safe re-boarding Energy efficiency Roll-out and commercialisation Digitisation data energy monitoring tool Inte
Slide 18: 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 19: 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 FY 2020 RESULTS 19
Slide 20: Activity Report FY 2020
ACTIVITY REPORT FY 2020 WDP FY 2020 RESULTS 20
Slide 21: Acquisitions
Acquisitions FY 2020 Lettable area Investment budget Location Tenant (in m2) (in million euros) Capex 54m euros(1) Gross initial yield (1) An amount of 18 million euros related to the land purchases has not yet accrued in the balance sheet and is scheduled for 2021. Next to that, the acquisition of
Slide 22: Projects Executed
PROJECTS EXECUTED
Slide 23: Projects executed
Projects executed FY 2020 WDP FY 2020 RESULTS 23
Slide 24: Projects executed
Projects executed FY 2020 Delivery Lettable area Investment Investment budget Location Tenant Delivery date (in m2) Lettable area (in budget (in million euros) Location Tenant date m²) (in million euros) 2016-20 2016-20 RO Bucharest - Stefanestii de Jos Auchan 1Q20 77,000 45 RO Buzau Ursus Breweries
Slide 25: Projects in Execution
FY 2020 PROJECTS IN EXECUTION
Slide 26: Projects under development (pre-let)
Projects under development (pre-let) FY 2020 WDP FY 2020 RESULTS 26
Slide 27: Projects under development (pre-let)
Projects under development (pre-let) 96 Pre-let % FY 2020 Investment budget Location Tenant Planned Lettable area (in delivery date m²) (in million euros) 12 y Avg. lease 2019-23 duration RO Bucharest - Stefanestii de Jos Decathlon 1Q21 10.000 5 RO Bucharest - Stefanestii de Jos LPP 3Q21 22.000 10 R
Slide 28: Development potential
Development potential FY 2020 Land reserves continuously being replenished NL +18,1 -42,5 BE-LU-FR +5,1 -1,7 +42,5 +29,1 -29,1 DEVELOPMENT 128,5 110,3 106,9 ~1,000,000 POTENTIAL M²(1) RO Land reserve Additional Transfers Land reserve Land reserves Transfers Future land 31.12.2019 land reserves to pr
Slide 29: Portfolio fair value split
Portfolio fair value split(1) FY 2020 (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 30: Evolution portfolio yield
Evolution portfolio yield FY 2020 2/3 1/3 (1) Calculated on a warehouse square meter equivalent basis. WDP FY 2020 RESULTS 30
Slide 31: High-quality portfolio
High-quality portfolio FY 2020 Other Other 1,8% Class A warehouse 1,9% 57,7% General warehouse Class C warehouse Future redevelopment 3,6% 53,8% 3,1% Class B High bay & Multiple floor warehouse 3,0% 11,3% Warehouse Cross-dock Type of quality 4,2% warehouse Manufacturing Class A green certified 9,3%
Slide 32: Occupancy
Occupancy FY 2020 High occupancy and strong customer retention Historical occupancy rate Lease maturity profile (till first break) y y y y y y y y y lease maturities renewed year to date (lhs ccupancy rate acancy due to unlet development projects lease maturities (incl solar income (lhs Weighted ave
Slide 33: Diversified
Diversified FY 2020 Well-spread tenant profile 36% 3PL 64% end user Top-10 tenants (~35%)(1) Tenant industry activities 10% dedicated e-commerce ndustrial olar panels B , G uehne agel etail ( ood Greenyard ood, fruit vegetables Distrilog Group etail ( on ood arrefour Post parcel delivery hold Delhai
Slide 34: Consolidated results
Consolidated results FY 2020 WDP FY 2020 RESULTS 34
Slide 35: Consolidated results
Consolidated results FY 2020 (1) Including solar panels. (2) Including the proportional share of WDP in the portfolio of the joint ventures (WDP Luxembourg at 55% and the German portfolio at 50%). WDP FY 2020 RESULTS 35
Slide 36: Consolidated B/S
Consolidated B/S FY 2020 WDP FY 2020 RESULTS 36
Slide 37: Consolidated B/S
Consolidated B/S FY 2020 WDP FY 2020 RESULTS 37
Slide 38: Financial management
Financial management FY 2020 Leverage Loan-to-value 8.3 x Net debt / EBITDA (adj.)(1) 2.1 % Cost of debt 45.0 % Coverage Interest Coverage Ratio Hedge ratio 4.9 x 90 % Green financing 100 of financing needs ✓ % covered 100% Refinancing until mid-2022 Financing 33 % 685 ✓ ✓ 100% capex 2021-22 covered
Slide 39: Financing structure
Financing structure FY 2020 Solid debt metrics and active liquidity management Debt composition Evolution hedge ratio y y traight loan 0 y ommercial paper y ong term bilateral 0 credit lines y 0 y y Bonds 0 y y edge ratio Weighted average hedge duration (y (rhs • Cost of debt at 2.1% for 2020, decli
Slide 40: Financing structure
Financing structure FY 2020 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 over 700 million euros (1) • Duration of outstanding debt of 4.6y and 5.2y excl. co
Slide 41: Return on equity
Return on equity FY 2020 P growth , , , , P Dividend P arnings ffect capital Portfolio result P ransfer taxes P distribution increases and other ( Return on Equity 18% Cash return 8% Fair value and other 10% WDP FY 2020 RESULTS 41
Slide 42: Share statistics
Share statistics WDP SHARE • Market cap ~5bn euros • Free float of 75% - Family Jos De Pauw 25% • Member of EPRA, Euronext BEL20 and AMX indices WDP FY 2020 RESULTS 42
Slide 43: Statement Covid-19 Outlook 2021
STATEMENT COVID-19 OUTLOOK 2021 WDP FY 2020 RESULTS 43
Slide 44: Outlook 2021 and Covid-19 statement
Outlook 2021 and Covid-19 statement OUTLOOK 2021 AND COVID-19 STATEMENT • Outlook 2021 • 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 from develop
Slide 45: Q&A
Q&A ue WOP FY 2020 RESULTS 45
Slide 46: 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 47: 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 48: 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 49: 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