25 JULY 2025
Press ReleaseParticipate in the
Analyst and investor video call
Friday, 25 July 2025
Press release - 30 July 2021
10 a.m. CET
#BLEND2027 strategy confirms effectiveness
- Strong earnings per share growth: EPRA Earnings per share +6% y/y to 0.75 euros in H1 2025.
- Leasing activity emphasises the strength of WDP platform: over 300,000 m² of new leases in H1 2025 across the breadth of operations and a slightly better-than-expected occupancy rate of 97.3%.
- #BLEND2027 - all required investments fully secured: 440 million euros in development projects and acquisitions secured in H1 2025 at 6.8% NOI yield. As a result, all investments that were previously in the exclusive negotiation phase have now been committed. Moreover, approximately 125,000 m² of fully pre-let projects were completed.
- #BLEND2027 - focus on execution, targets confirmed: upon qualitative execution of the investment pipeline and the successful leasing of the limited available space, WDP will achieve the 2027 EPRA Earnings target of 1.70 euros per share. All this within a fully funded framework with a robust balance sheet, strong cash generation and ample liquidity position.
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Outlook 2025: confirmation of expected EPRA Earnings for 2025 of 1.53 euros per share, an underlying increase of +7% y/y and based on a minimum occupancy rate of 97%.
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Once again, WDP demonstrates the effectiveness of its #BLEND2027 strategy. Our leasing activity remains remarkably strong and versatile. As expected, our occupancy rate bottomed out in Q2 2025, and even came in slightly ahead of expectation. This highlights the strength of our commercial teams to capture demand, even in a stabilising market whose further recovery will depend on the broader geopolitical and macroeconomic environment.
Moreover, we succeeded in securing all investments under #BLEND2027. Upon high-quality execution of our attractive investment pipeline and the successful leasing of the limited available space, we will realise our EPRA EPS target of 1.70 euros by 2027.
This is where WDP truly sets itself apart: the ability to consistently deliver earnings per share growth throughout market cycles - even beyond 2027. Our strategic pillars - client centricity, generating attractive total returns and capital discipline - remain key as we steadfastly build on our unique 10+ billion euros European logistics real estate platform.
Joost Uwents - CEO
Participate in the Analyst and investor video call
25 July 2025 - 10:00 a.m. CET
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Strong earnings growth thanks to effective multi-driver approach: EPRA Earnings of
171.2 million euros over H1 2025, a +10% increase y/y or +6% to 0.75 euros per share. This earnings growth was driven by investment activity and organic rental growth (+2.2%) combined with high operational efficiency (90%+ operating margin) and a continued competitive cost of debt (2.3%).
- Leasing activity emphasises the strength of WDP platform: over 300,000 m² of new leases signed in H1 2025. This includes the existing portfolio, pre-let for ongoing projects under development - which stand out due to a significant increase to 75% pre-let (Q4 2024: 60%) - and new pre-let development projects. Occupancy remains high at 97.3% on 30 June 2025 (98.0% at the end of 2024), a slight decrease year-to-date as announced. This rental activity highlights the strength of our commercial platform, which is characterised by a client-centric focus and a diversified portfolio. In the short term, demand is stabilising at a lower level compared to previous years, with further recovery depending on the evolution of the geopolitical and macroeconomic environment.
- Slight positive portfolio revaluation: +18.9 million euros or +0.2% since the beginning of this year (in Q1 2025: +11.4 million euros), based on a stable EPRA Net Initial Yield (5.4%). The net reversionary yield is 6.2% based on a fully occupied portfolio at market rent. The reversionary potential on the total portfolio amounts to +9%.
- #BLEND2027 - all required investments fully secured: with 440 million euros of pre-let projects and acquisitions secured in H1 2025. This brings the pipeline in execution to 800 million euros at 6.7% NOI yield 1 . As a result, all investments that were previously in the exclusive negotiation phase, required for the achievement of the 2027 EPS target, have been secured.
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#BLEND2027 - focus on execution, objectives confirmed: upon the successful execution of the investment pipeline and the further leasing of the limited available space, WDP will achieve the 2027 EPRA Earnings target of 1.70 euros per share. The growth plan is fully funded due to the ample liquidity position of 1.2 billion euros of unused credit lines and expected auto-financing of cumulatively
+600 million euros over 2025-2027 (via retained earnings and optional dividends). This leaves the capital structure unchanged upon completion (with expected net debt / EBITDA (adj.) of <8x and a loan-to-value of <40% at the end of 2027) - respectively 7.7x and 41.3% as of 30 June 2025. As anticipated, this slight increase is the result of the execution of investments and the payment of the dividend (May 2025) - with a gradual decrease due to the strong cash flow generation over 2H 2025.
- Further steps towards a full-fledged 10+ billion European platform: WDP's unique, high-quality and diversified portfolio of 8+ billion euros consists of essential supply chain infrastructure primarily supplying the European economy - in stable sectors, such as food, pharma, e-commerce and FMCG. Since the launch of #BLEND2027, a solid foundation has been laid for continued growth into a full-fledged 10+ billion euros European platform. This year, WDP further strengthened its local footprint in France and Germany through the appointment of two experienced Country Managers and opening of new offices.
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Outlook 2025: Confirmation of expected EPRA Earnings per share for 2025 of 1.53 euros, an underlying increase of +7% y/y.
These forecasts are based on the current knowledge and situation and are barring unforeseen circumstances within the context of a volatile macroeconomic and geopolitical climate.
1The NOI Yield is defined as the annualised net operating result (gross rental income minus the non-recoverable operating costs for property) compared to the total investment.
All building blocks in place to achieve the #BLEND2027 earnings target
As of 31 December 2024, the investment pipeline in execution amounted to 1.1 billion euros. During the first half of 2025, 375 million euros of this was executed and transferred to the existing real estate portfolio. As a result, WDP currently holds a remaining investment pipeline in execution of 800 million euros.
With this robust investment pipeline in execution across the breadth of its operations and regions, and with continued structural positive trends supported by a strong balance sheet and full funding, WDP has everything in place to achieve its earnings target of 1.70 euros in EPRA Earnings per share in 2027.
H1 2025: € 440m deals secured-previously in exclusive negotiation(2)
Pre-let development projects Acquisitions
)
Energy investments
1.1bn Pipeline in execution
+150m
+248m
+42m
375m
Projects and acquisitions completed
800m
Pipeline in execution
WDP
HOLDS
ALL
BUILDING BLOCKS TO ACHIEVE ITS EPRA EPS TARGET OF 1.70 EUROS BY 2027
Deals in exclusive
negotiation (1
Investment pipeline in execution
Internal growth opportunities
Robust fundamental drivers
Liquidity available
Balance sheet capacity
CONTINUED FOCUS ON EXECUTION
31.12.2024
Pipeline in execution (1)
2025 H1
New investments secured
2025 H1
Projects and acquisitions
completed
30.06.2025
Investment pipeline in
execution (2)(3)
(1)Pipeline in execution of 1.1 billion euros, of which 400 million euros of transactions are in exclusive negotiations as of 31 December 2024.
(2)Deals previously in exclusive negotiations were fully secured as of 30 June 2025.
(3)Cost to come: 651 million euros as of 30.06.2025.
Annual rental potential as an indicator of future earnings growth(1)
Long term
Reversion, leasing and development potential
111
709
44
14
€m
Medium term2026-27
Short term
2025
44 540
19
4
7 477
25 466
440
Annualised rent
31.12.20 24
Rent added in H1 2025
Annualised rent
31.06.2025
Indexation 2025
Project completions & acquisitions 2025
Annualised rent
31.12.2025
Indexation for 2026-27(2)
Project completions and
acquisitions
Potential annualised rent
31.12.2027
Letting activity potential
Rent reve rsion potential
Rent potential of secured land bank
Potential longterm
annualised rent
(1)The information in this chart is not construed as an earnings forecast or guidance of any kind and should thus not be read as such and is thus solely intended for illustrative purposes. It depicts the short- and medium-term impact of indexation based on economic forecasts and the impact of the committed development pipeline, the potential of further lettings and the theoretical potential of rent reversion and rent from buildable surface of uncommitted projects on the land bank.
(2)Assumption based on 5y inflation swap of 2%.
I. Performance
Operational activities
SUSTAINABLE GROWTH
Occupancy rate and leasing activity
WDP recorded strong and broad leasing activity in the first half of 2025. On a total portfolio of approximately 8 million m² of lettable area, over 300,000 m² of new leases were signed: in the existing portfolio, for ongoing projects under development and new pre-let projects (i.e. excluding renewals in the existing portfolio). Notably, the pre-letting rate for projects under development increased significantly to 75% (Q4 2024: 60%). These new leases were contracted at the market rental levels and emphasise the commercial strength of the WDP platform in capturing new demand. In addition, approximately 125,000 m² of fully leased projects were delivered in H1 2025.
As of 30 June 2025, the occupancy rate of the portfolio remained high at 97.3%, slightly better than expectations. Compared to 98.0% at year-end 2024, the slight decline was expected. In 2025, 13% of lease agreement will reach their next break: of these, 90% have already been successfully renewed, while the remaining 10% vacated, have been partly relet and are fully absorbed into the occupancy rate per 30 June 2025. This corresponds to a limited numbers of terminations, as previously outlined in the Q3 2024 results of 30 September 2024. The retention rate has normalised compared to year-end, with 90% in line with the multi-year average. As previously communicated, WDP expects a minimum occupancy rate of 97% and a normalising retention rate for 2025, based on current rental market conditions.
These healthy dynamics point to early signs of market recovery in the demand for logistics space. In the short term, demand is stabilising at a lower level compared to recent years. However, further recovery is dependent on developments in the geopolitical and macroeconomic environment, which are currently delaying clients' decision-making.
Over the longer term, positive trends continue to support demand for logistics real estate, such as limited available space and the scarcity of land. Moreover, these trends seem to be reinforced by deglobalisation, which fuels diversification and resilience in supply chains and brings consumers and producers closer together. WDP's clients are also predominantly focused on supplying the European economy and consumer, with a focus on resilient sectors such as food, pharma, e-commerce and FMCG.
440 million euros in new investments were signed in the first half of 2025
During 2025, WDP signed for approximately 440 million euros in investments. This package delivers a NOI yield of 6.8%2 and comprises new pre-let project developments and acquisitions as well as energy investments. Over the first half of 2025, these investments were either executed or further added in the ongoing 1.5. investment pipeline in execution of approximately 800 million euros.
These investments include the 400 million euros package of deals that was in exclusive negotiation as of 31 December 2024. Now that the negotiations are completed and the investment pipeline is secured,
2Excluding energy projects. This concerns 6.2% in Western Europe and 8.6% in Romania.