Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — H1 2012 Earnings Presentation
32 slides from Warehouses De Pauw SA's earnings presentation, Aug 22, 2012
Slide 1: WDP H1 2012 results
WDP H1 2012 results August 22, 2012
Slide 2: Agenda
Agenda Introduction Highlights H1 2012 Acquisition Lake Side Portfolio Operational review Portfolio overview Financing structure Results analysis WDP share Outlook
Slide 3: Introduction
Introduction ■ By Mark Duyck, Chairman “The cult of equity is dying” Bill Gross, Pimco
Slide 4: Highlights H1 2012
Highlights H1 2012 ■ Operational ■ Occupancy rate 97.3% (+ 60bps in H1 2012) & letting of Venlo project (28,000m²) ■ Strategic acquisition in second home market the Netherlands (Lake Side Portfolio) ■ Confirmation of Benelux market leadership (deployment in the Netherlands) ■ Financial ■ Renewed suc
Slide 5: Highlights H1 2012 key figures
Highlights H1 2012 KEY FIGURES Operational 30.06.2012 31.12.2011 Fair value of real estate portfolio (incl. solar panels) (EUR m) 1.098,6 989,4 Gross rental yield (incl. vacancy) (%) 8,2% 8,3% Net initial yield (EPRA) (%) 7,5% 7,5% Average lease duration (till first break) (y) 7,2 7,2 Occupancy rate
Slide 6: Acquisition Lake Side Portfolio
Acquisition Lake Side Portfolio ■ Lake Side Portfolio transaction (*) ■ Acquisition of a high quality, long leased logistics portfolio in the Netherlands ■ 8 modern logistics/industrial facilities rented out to quality tenants ■ Financial details ■ Asset deal of 8 freehold properties for a total inv
Slide 7: Strategic rationale
Strategic rationale ■ Excellent quality assets ■ Long duration leases ■ Complementary to existing portfolio ■ 2010-13 growth plan ■ Strengthening Benelux market leadership ■ Building strong platform in the Netherlands
Slide 8: Overview assets Lake Side Portfolio
Overview assets Lake Side Portfolio Site area Gross Lettable Occupancy Gross annual Lease Location Type Tenant (m²) Area (m²) rate rent (EUR m) duration (y) Nieuwegein Logistic V&D 42.980 44.423 100% 2,5 15,3 Zwolle Logistic Kuehne + Nagel 35.826 19.765 100% 1,2 7,6 Helmond Industrial Prinsen 16.874
Slide 9: Purchases
Purchases Transaction Country Type Investment ■ Lake Side Portfolio NL logistics portfolio EUR 105m (*) ■ 6 properties transferred during H1 2012 EUR 83m ■ 2 projects scheduled for delivery & transfer in H2 2012 EUR 22m ■ Solar panels BE 1.2MWp on rooftops EUR 2m Total investment of > EUR 100m Profi
Slide 10: Disposals (under negotiation)
Disposals (under negotiation) Transaction Country Type Divestment ■ Various BE logistics EUR 21m EUR 20m disposals under negotiation (at fair value) (*) Smaller non-strategic assets (*) A total of 7 properties are currently held as ‘Assets for sale’. For 4 of these properties a final, binding sales
Slide 11: Projects executed
Projects executed Location Country Surface Completion Tenant ■ Mollem BE 3,200m² Q1 2012 Lactalis ■ Mollem BE 3,100m² Q2 2012 Vemoflex ■ Venlo (*) NL 15,000m² Q2 2012 Arrow Electronics Total 21,300m² Total capex of EUR 7m (**) Yield on total cost around 8% (*) Because of unstable market conditions t
Slide 12: Projects in execution (pre-let)
Projects in execution (pre-let) Location Country Surface Completion Tenant ■ Willebroek BE 15,000m² Q3 2012 Distrilog ■ Schiphol NL 10,000m² Q3 2012 Rapid ■ Ternat BE 10,000m² Q4 2012 ATS, Bpost etc Total 35,000m² Total capex of EUR 21m (EUR 10m disbursed to date) (*) Yield on total cost around 8% (
Slide 13: Projects on hold (unlet)
Projects on hold (unlet) Location Country Surface Strategy ■ n/a n/a n/a n/a No unfinished & unlet projects left, down y/y from 45,000m² Further optimization of balance sheet
Slide 14: Development potential (uncommitted)
Development potential (uncommitted) Location Country Buildable surface (*) ■ St.-Niklaas BE 16,000m² ■ Nivelles BE 25,000m² ■ Courcelles BE 10,000m² ■ Trilogiport BE 50,000m² (**) ■ Heppignies BE 80,000m² ■ Libercourt FR 24,000m² ■ Neprevaska CZ 10,000m² ■ Various RO tbd Land positions with a fair v
Slide 15: Sustainability
Sustainability ■ Investments renewable energy ■ Realized projects to cover rooftops of 4 sites in Belgium with 1.2MWp solar panels ■ Total of 16MWp solar panels in operation on rooftops in Belgium ■ H1 2012: solar panel income stands for 8% of revenues ■ Various initiatives to reduce CO2 footprint ■
Slide 16: Geographical footprint
Geographical footprint Portfolio fair value split H1 2012 (*) Netherlands Czech Republic 30% •Value: EUR 25m •Gross yield: 10.5% •Vacancy rate: 0.0% Belgium •39,000m² buildings France 57% •131,000m² land 8% Czech Republic 2% Romania 3% Romania Total •Value: EUR 25m •Gross yield: 9.4% •Value: EUR 1,0
Slide 17: Occupancy
Occupancy ■ Continued high occupancy ■ Occupancy rate 97.3% at H1 2012 (vs. 96.7% end 2011) ■ 80% of 2012 rental breaks secured ■ Expected occupancy of minimum 95% end 2012 Historical occupancy rate Lease maturity profile (till first break) 100,0% 40% 8,0 97,5% 35% 7,0 30% 6,0 95,0% 25% 5,0 92,5% 20
Slide 18: Diversified client base
Diversified client base6 ■ Well-spread tenant profile ■ Active in multiple industries & predominantly large (inter)national corporates ■ Healthy mix between end-users & logistic service providers ■ Top tenants spread over multiple buildings / businesses / countries Top tenants Tenant industry activi
Slide 19: Long-term leases
6with long-term leases ■ Income visibility ■ Circa 40% of contracts have a duration of minimum 10y ■ Including Lake Side Portfolio with 12.5y weighted average lease length ■ Strong historical client retention rate Lease duration Weighted average lease duration (y) Till first break Till expiration Re
Slide 20: H1 2012 Consolidated results
H1 2012 Consolidated results EUR x 1.000 H1 2012 H1 2011 % Growth 2011 Net current profit Net rental result 35.844 30.345 18,1% 63.103 Income from solar energy 3.238 3.411 -5,1% 6.209 Other operating income/charges -280 -154 82,2% -218 Property result 38.803 33.602 15,5% 69.094 Property costs -1.012
Slide 21: H1 2012 Consolidated results per share
H1 2012 Consolidated results Per share data H1 2012 H1 2011 % Growth 2011 Net current result (EPRA) (*) 1,82 1,70 7,5% 3,42 Portfolio result 0,04 -0,11 n.r. 0,21 IAS 39 result -0,86 0,53 n.r. -1,33 Net profit 1,00 2,12 n.r. 2,29 Weighted average number of outstanding shares 13.744.468 12.656.120 8,6
Slide 22: H1 2012 Consolidated B/S
H1 2012 Consolidated B/S EUR x 1.000 30.06.2012 31.12.2011 30.06.2011 Intangible fixed assets 249 310 376 Property investments 1.008.646 908.089 870.276 Other tangible fixed assets (incl. solar panels) 71.010 68.185 67.137 Financial fixed assets 11.396 11.418 11.433 Financial lease receivables - - 7
Slide 23: H1 2012 Consolidated B/S
H1 2012 Consolidated B/S EUR x 1.000 30.06.2012 31.12.2011 30.06.2011 Capital 111.178 106.336 102.903 Issue premiums 111.584 94.168 81.509 Reserves 161.755 171.127 172.288 Net result of the financial year 13.729 29.704 26.849 Equity capital 398.247 401.333 383.549 Long-term financial debt 469.850 42
Slide 24: Financial management
Financial management ■ Management of capital structure ■ EUR 22.4m equity raised through optional dividend ■ Success rate of 73%, issue price EUR 36.0 (~ 5.6% discount to VWAP) (*) ■ Debt ratio of 58.7% and expected to evolve towards 57% by year-end 2012 ■ New financing ■ Financing package with ABN
Slide 25: Financing structure
Financing structure ■ Solid debt metrics ■ Debt ratio at 58.7% ■ ICR at 3.3x ■ Cost of debt at 3.7% Debt composition Evolution hedge ratio 90% 80% Long-term Commercial bilateral paper 22% 70% credit 60% facilities 70% 50% 40% Leasing 4% 30% 20% Straight loans 4% 10% 0% 2012 2013 2014 2015 2016 2017
Slide 26: Financing structure
Financing structure ■ Well-spread debt maturities ■ Duration of outstanding debt of 2.8y (incl. commercial paper) ■ Duration of long-term credit facilities of min. 3.6y and max. 4.4y (*) ■ Committed undrawn long-term credit lines of EUR 55m (**) Debt maturities (min.) (*) Debt maturities (max.) (*)
Slide 27: WDP share
WDP share ■ Share statistics ■ NAV (EPRA) per share of EUR 32.4 at H1 2012 ■ Market cap of ca. EUR 575m ■ Free float of 71% - Family Jos De Pauw 29% WDP share price vs. NAV EPS & DPS history 60 4,00 3,50 50 3,00 40 2,50 2,00 30 1,50 20 1,00 0,50 10 - 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 28: WDP share
WDP share ■ Return of WDP share Average since Total return H1 2012 IPO / year WDP 22,0% 12,8% GPR 250 Belgium -0,3% 4,4% GPR 250 Europe 13,1% 5,8% BEL 20 6,9% -2,6%
Slide 29: Delivering on strategic growth plan
Delivering on strategic growth plan Strategic pillar Achievements ■ Letting projects ■ Reduction of vacancy standing portfolio ■ Secured pre-lettings for existing projects ■ Leasing up projects that were on hold ■ CO2 investment plan ■ Today 16 of 30MWp ■ Investigating various opportunities ■ BREEAM
Slide 30: Outlook 2012
Outlook 2012 ■ Expected net current result of minimum EUR 51m or EUR 3.60 per shareQ ■ Qincluding Lake Side Portfolio & based on good fundamentals (high occupancy, long lease duration, healthy underlying market) (*) ■ Expected dividend +5% to EUR 3.10 per shareQ ■ Qbased on a payout ratio of 90% ■ G
Slide 31: Disclaimer
Disclaimer Warehouses De Pauw Comm.VA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a closed-end property investment company, incorporated under Belgian law and listed on Euronext Brussels. By its very nature, any investment in financial instruments c
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