In This Article:
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New Investments: EUR500 million at an average yield of 7%.
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Loan-to-Value and Net Debt to EBITDA: 6.8x.
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Portfolio Value: More than EUR7 billion.
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Expected Earnings: EUR1.47, a 5% increase from last year.
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Total Investment Pipeline: More than EUR850 million.
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Occupancy Rate: Stable.
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Rent Indexation: Increased by more than 3%.
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Positive Rent Reversion: 15% on 100,000 square meters, totaling 200,000 square meters for the year.
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Reversionary Potential: Portfolio is 12% under rented.
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Energy Projects: Target of 350 million megawatt peak of solar panels; 82 megawatt peaks in development.
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Battery Park Investment: EUR65 million for 660 megawatts in Genk.
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Liquidity: EUR2 billion.
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Annual Total Return (25 years): 15% per year.
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EPRA Earnings Growth (25 years): 7% per year.
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NAV Growth (25 years): 8% per year.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Warehouses De Pauw SA (WDPSF) achieved EUR500 million in new investments with an average yield of 7%, marking a significant milestone in the company's history.
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The company maintains a strong balance sheet with a loan-to-value and net debt to EBITDA ratio of 6.8x, supporting its growth strategy.
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WDPSF's investment pipeline is well-diversified across regions, with over 70% in Western Europe, enhancing its geographical footprint.
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The company has successfully indexed leases by more than 3% and achieved a positive rent reversion of 15% on 200,000 square meters, indicating strong rental growth potential.
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WDPSF is advancing its energy projects, aiming for 350 million megawatt peak of solar panels, and is developing a significant battery park in Genk, showcasing its commitment to sustainable energy solutions.
Negative Points
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The company faces challenges with a slight decline in occupancy rates, now below 98%, which is the lowest since the first half of 2019.
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There are concerns about sluggish occupier demand, particularly in consumer-driven sectors like fashion and FMCG, which could impact future growth.
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WDPSF experienced a 12.5% decline in solar income, attributed to both weather conditions and pricing mix, affecting its renewable energy revenue.
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The development pipeline has a pre-letting rate of 77%, with some projects, like the one in Kerkrade, having lower pre-letting rates, posing potential risks.
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The cost of debt is expected to rise to around 2% by the end of 2024, which could impact the company's financial flexibility.
Q & A Highlights
Q: Can you comment on the yield achieved in Germany and the Netherlands? A: In the Netherlands, the yield is 6% on the forward funding deal and 7% on development. In Germany, it's 5% net. (Joost Uwents, Co-CEO; Mickael Van de Hauwe, CFO)