WDP Q results. Roadshow November & December 2012

Transcription

1 WDP Q results Roadshow November & December 2012

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3 Agenda WDP in a nutshell Strategic vision Highlights 9M 2012 Acquisition Lake Side Portfolio Update on WDP Netherlands Operational review Portfolio overview Financing structure Results analysis WDP share Outlook

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5 WDP in a nutshell Pure player in warehouse sector Developments New build Refurbishments Acquisitions Portfolios Sale & rent back Sustainability BREEAM Renewable energy Active & flexible investor Creating long-term partnerships Focus on sustainable solutions Internal commercial, development & property management teams Built on solid foundations Supported by defensive REIT status Geographic diversification Long-dated experience with dedicated strategy for > 35y

6 Strategic vision Dynamic pure play property company offering creative long-term solutions to clients Creating a sustainable & growing income stream and focus on assets with strong residual value Building scale & financial strength to diversify risks and drive performance Lean & mean positioning within its core markets as to maintain flexibility

7 Prioritize controlled growth Shareholders Improve earnings visibility Access to debt & equity markets Enhance return on equity & control risks Clients Build long-term partnerships Offer creative deal structuring & improve services Diversify risk exposure & create efficiency gains Win/win for all stakeholders Generating sustainable EPS growth

8 Built on strong fundamentals > 95% Historical average occupancy rate > 8% Consistently high portfolio yield < 10% Operating expenses as a % of revenues < 4% Controlled cost of debt 55-60% Constant capital structure synchronizing debt & equity issuance # 35 Headcount combining SME spirit & large cap sophistication

9 Highlights 9M 2012 Operational Occupancy rate 97.2% (+ 50bps in 9M 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 Success of optional dividend & Lake Side bis (reinforcing equity base to fund growth) (*) Strengthening financing (several new credit facilities) Controlled cost of debt (based on high hedge ratio) Results Continued growth of the net current result in 9M 2012 (+7% on a per share basis) (**) Dividend forecast of EUR 3.10 per share confirmed (+5% compared to 2011) Guidance net current result increased to minimum EUR 51m (EUR 3.60 per share) (**) (*) The Lake Side bis -transaction was realized on 9 October 2012 and encompasses the (indirect) contribution in kind of 3 properties within the expanded Lake Side Portfolio for an amount of EUR 30m against payment in newly issued WDP shares, thereby reinforcing the equity base. (**) Based on the weighted average number of outstanding shares.

10 Highlights 9M 2012 KEY FIGURES Operational Fair value of real estate portfolio (incl. solar panels) (EUR m) 1.109,9 989,4 Gross rental yield (incl. vacancy) (%) 8,2% 8,3% Net initial yield (EPRA) (%) 7,4% 7,5% Average lease duration (till first break) (y) 6,9 7,2 Occupancy rate (%) 97,2% 96,7% Like-for-like rental growth (%) 2,5% 2,8% Operating margin (%) (H12012 vs. H1 2011) 91,4% 91,7% Per share data (EUR) Net current result (EPRA) 2,79 2,61 Result on portfolio 0,09 0,12 IAS 39 result -1,22-1,05 Net result 1,66 1,67 NAV (IFRS) 28,60 28,74 NAV (EPRA) 33,52 32,54 NNNAV (EPRA) 28,60 28,74

11 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 (EUR 105m) Expanded with the purchase of an extra property in Veghel (EUR 9m) Financial details Asset deal of 9 freehold properties for a total investment of EUR 105m + EUR 9m (**) Annualized rental income of EUR 8.2m generating a gross initial yield of 7.8% (***) Partially paid in shares via (indirect) contribution in kind of 3 properties (EUR 30m) (*) Strategic fit Further deployment in second home market the Netherlands Strengthening portfolio quality & lengthening lease duration Matching property acquisition with reinforcement of equity through Lake Side bis (*) (*) See press releases of 22 March 2012, 25 April 2012, 3 October 2012 and 9 October (**) Including transaction costs. (***) Calculated by dividing the annualized gross rental income by the purchase price of EUR 105m (including transaction costs). The property of EUR 9m was acquired at a gross initial yield of 8.0%.

12 Strategic rationale Excellent quality assets Long duration leases Complementary to existing portfolio growth plan Strengthening Benelux market leadership Building strong platform in the Netherlands

13 Overview assets Lake Side Portfolio Location Type Tenant Site area (m²) Gross Lettable Area (m²) Occupancy rate Gross annual rent (EUR m) Lease duration (y) Nieuwegein Logistic V&D % 2,5 15,3 Zwolle Logistic Kuehne + Nagel % 1,2 7,6 Helmond Industrial Prinsen % 0,7 15,0 Veghel Industrial Vetipak % 0,5 9,1 Oss Industrial Vetipak % 0,5 14,0 Roosendaal (*) Industrial BIS Industrial Services % 0,8 10,0 Oss Logistic Movianto % 0,9 10,0 Beek (Maastricht-Airport) (*) Logistic Koninklijke Mosa % 0,9 15,0 Total % 8,2 12,5 (*) Under construction with deliveries scheduled respectively mid-september 2012 (Roosendaal) and early December 2012 (Beek). On 9 October 2012, these projects have together with the property in Veghel (let to K+N, excluded from the list above) been acquired through the Lake Side bis - transaction. See press releases of 3 October 2012 and 9 October 2012.

14 WDP Netherlands Developed Benelux market leadership Through strategic development in second home market the Netherlands Active in all strategic submarkets offering a wide range of logistics property solutions Building critical mass Strong growth achieved via acquisition of Wereldhave NL and Lake Side Portfolio Local team present supported from the headquarters in Belgium Solid platform for further growth Operating under the tax transparent Dutch REIT regime (*) Access to local funding (*) In 2010 WDP Netherlands NV obtained the Dutch REIT status, also known as Fiscale Beleggingsinselling (FBI)

15 Milestones in the Netherlands EUR 350m Acquisition of Wereldhave NL logistics portfolio - Starts partnership with ABN AMRO to access local funding - Start of activities though sale & rent back Hazeldonck (Breda) Acquisition of Univeg portfolio Opening a local office and Setting a team in NL E 2013 Tilburg: 1st BREEAM certificate for logistic building in NL - Nijmegen: BREEAM Very Good certification - Obtained Dutch REIT status - Evolution investment value of the porfolio Strategic acquisition of the Lake Side Portfolio

16 Purchases Transaction Country Type Investment Lake Side Portfolio NL logistics portfolio EUR 114m (*) 6 properties transferred during H EUR 83m 2 projects scheduled for delivery in H EUR 22m 1 extra property added to Lake Side Portfolio in H EUR 9m Londerzeel BE industrial site EUR 3m Zwijndrecht BE logistics site EUR 9m Total investment of > EUR 100m Profitable strengthening of market position (*) The transfer of the portfolio has occurred in phases during The 6 completed & rented buildings were transferred on 27 April 2012 for approximately EUR 83m. The 2 fully pre-leased projects with investment budgets of respectively approximately EUR 10m and approximately EUR 12m have together with the property in Veghel been transferred on 9 October 2012 through the Lake Side bis -transaction.

17 Disposals Transaction Country Type Divestment Various BE logistics EUR 20m Executed EUR 5m In negotiation EUR 15m EUR 20m disposals foreseen (at fair value) (*) Smaller non-strategic assets (*) A total of 6 properties with a fair value of EUR 15m are currently held as Assets for sale in the accounts per September 30, For 3 of these properties a final, binding sales agreement has been signed. In September 2012, one property was already sold for an amount of EUR 5m.

18 Projects executed Location Country Surface Completion Tenant Mollem BE 3,200m² Q Lactalis Mollem BE 3,100m² Q Vemoflex Venlo (*) NL 15,000m² Q Arrow Electronics Schiphol NL 10,000m² Q Rapid Total 31,300m² Total capex of EUR 21m (**) Yield on total cost around 8% (*) Because of unstable market conditions the completion of this project was postponed in After the letting to Arrow Electronics, the finalization of the project has been accelerated in Q taking into account a limited cash-out of EUR 2m. (**) For Venlo only taking into account the required investment to finish the project.

19 Projects in execution (pre-let) Location Country Surface Completion Tenant Willebroek BE 15,000m² Q Distrilog Ternat BE 10,000m² Q ATS, Bpost etc Total 25,000m² Total capex of EUR 7m (EUR 4m disbursed to date) (*) Yield on total cost around 8% (*) Since the Ternat project concerns a renovation, only refurbishment spends were taken into account.

20 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

21 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 Various RO tbd 10,000m² Land positions with a fair value of EUR 42m Initiation subject to preletting, secured financing & permits (*) Potential surfaces that could be built on the sites. (**) Concession.

22 Redevelopment project Alphen aan den Rijn VT Verkerk & Logistics B.V. Before After

23 Redevelopment project Alphen aan den Rijn VT Verkerk & Logistics B.V. Before After

24 Sustainability Investments renewable energy Realized projects to cover rooftops of 6 sites in BE/RO with 1.5MWp solar panels Total of 16MWp solar panels in operation on rooftops in Belgium 9M 2012: solar panel income stands for 9% of revenues Various initiatives to reduce CO 2 footprint Initiated sustainable lighting project (cfr. Mollem first fully-led warehouse in BE) BREEAM certification for new projects (Willebroek, Schiphol) Constant dialogue with tenants to reduce heating and electricity consumption Looking ahead Political headwind reduces economic viability and lengthens project lead time Examining various alternatives (*) Lake Side Portfolio two buildings covering 40% of the surfaces BREEAM certified (*) Like for example the thermal storage systems that are being used in the BREEAM certified buildings in Nieuwegein and Helmond that are part of the Lake Side Portfolio.

25 Geographical footprint Portfolio fair value split 9M 2012 (*) Belgium 57% Total Value: EUR 1,040m Gross yield: 8.2% Vacancy rate: 3.0% 1.8m m² buildings 4.6m m² land Netherlands 30% France 8% Czech Republic 2% Romania 2% Czech Republic Value: EUR 25m Gross yield: 10.5% Vacancy rate: 0.0% 39,000m² buildings 131,000m² land Romania Value: EUR 25m Gross yield: 9.0% Vacancy rate: 0.0% 7,000m² buildings 861,000m² land Belgium France Netherlands (*) Excl. solar panels and incl. projects. Vacancy rate excl. solar panels (EPRA definition). Value: EUR 598m Gross yield: 7.8% Vacancy rate: 3.3% 1,117,000m² buildings 2,362,000m² land Value: EUR 82m Gross yield: 8.6% Vacancy rate: 8.4% 150,000m² buildings 376,000m² land Value: EUR 310m Gross yield: 8.7% Vacancy rate: 1.5% 526,000m² buildings 856,000m² land

26 Occupancy Continued high occupancy Occupancy rate 97.2% at 9M 2012 (vs. 96.7% end 2011) 90% of 2012 rental breaks secured Expected occupancy of minimum 96% end ,0% Historical occupancy rate 40% Lease maturity profile (till first break) 8,0 97,5% 95,0% 92,5% 35% 30% 25% 20% 7,0 6,0 5,0 4,0 90,0% 87,5% 85,0% 15% 10% 5% 0% 3,0 2,0 1,0 0,0 Vacancy due to unlet development projects Reletting of Hazeldonk post closing of FY04 Occupancy rate % Lease maturities 2012 renewed at % Lease maturities (incl. solar income) Weighted average lease duration (till first break & incl. solar panels)

27 Diversified client base 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 activity Univeg Group (*) 13% 14% 15% 3 PL Other DHL (**) 10% Food Wholesale Other 48% Top % Solar panels 8% Kuehne + Nagel 6% Philips Lighting 4% 41% 1% 2% 3% 7% 4% 4% 4% 5% Telecom & ICT Automotive Industry Textile Services Media & Communication Government & non-profit (*) Due to the growth of WDP and the disposal by Univeg of several non-core activities, the weight of Univeg within WDP s revenues will evolve towards 10% by year-end (**) The client relationship with DHL concerns multiple rental contracts spread over 10 buildings, 3 countries and 3 business units.

28 with 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 Rental contracts (excl. solar panels) 6,1y 8,2y Rental contracts (incl. solar panels) 6,9y 8,9y

29 9M 2012 Consolidated results EUR x M M 2011 % Growth 2011 Net current profit Net rental result ,5% Income from solar energy ,1% Other operating income/charges n.r Property result ,2% Property costs ,0% Corporate overheads ,6% Net profit on property ,4% Financial result excl. IAS 39 result ,0% Taxes on net current result n.r. -87 Deferred taxes on net current result n.r. -58 Net current profit ,1% Result on the portfolio Changes in fair value of property investments (+/-) n.r Result on the disposals of property investments (+/-) n.r 17 Deferred taxes on the result of the portfolio n.r -708 Result on the portfolio n.r IAS 39 result Variation in the fair value of financial instruments (IAS 39 impa n.r Deferred taxes on revaluation of IRSs - - n.r - IAS 39 result n.r NET PROFIT n.r

30 9M 2012 Consolidated results Per share data 9M M 2011 % Growth 2011 Net current result (EPRA) (*) 2,79 2,61 7,0% 3,42 Portfolio result 0,09 0,12 n.r. 0,21 IAS 39 result -1,21-1,05 n.r. -1,33 Net profit 1,66 1,67 n.r. 2,29 Weighted average number of outstanding shares ,5% Net current result (**) 2,71 2,54 6,7% 3,25 Total number of dividend entitled shares ,8% (*) Based on the weighted average number of outstanding shares and based on EPRA Best Practices Recommendations ( (**) Based on the total number of dividend entitled shares.

31 9M 2012 Consolidated B/S EUR x Intangible fixed assets Property investments Other tangible fixed assets (incl. solar panels) Financial fixed assets Financial lease receivables Trade receivables and other fixed assets Deferred tax assets Fixed assets Assets intended for sale Financial leasing receivables Trade debtors receivables Tax receivables and other current assets Cash and cash equivalents Deferrals and accruals Current assets TOTAL ASSETS

32 9M 2012 Consolidated B/S EUR x Capital Issue premiums Reserves Net result of the financial year Equity capital Long-term financial debt Other long-term liabilities Long-term liabilities Short-term financial debt Other short-term liabilities Short-term liabilities TOTAL LIABILITIES Metrics NAV (IFRS) 28,60 29,43 28,74 NAV (EPRA) 33,52 33,35 32,54 NNNAV (EPRA) 28,60 29,43 28,74 Share price 40,71 37,06 37,05 Premium / discount 23,2% 11,5% 14,4% Debt ratio 57,7% 55,1% 56,5%

33 Financial management Management of capital structure Equity raised through optional dividend (EUR 22m) and Lake Side bis (EUR 30m) (*) Average issue price of EUR 38.7 (**) Debt ratio of 57.7% and expected to evolve towards 55% by year-end 2012 (*) New financing New credit facilities with existing and new banking partners For a total amount of EUR 70m Buffer of EUR 75m committed undrawn long-term credit facilities Controlled cost of debt Long-term hedges to cover debt taken up to acquire Lake Side Portfolio Reduction in the average financing cost to 3.6% in 9M 2012 (vs. 4.0% in 9M 2011) Based on a high hedge ratio (currently at 80%) (*) Post balance sheet date, on 9 October 2012, the equity base was reinforced through the Lake Side bistransaction, which encompassed the (indirect) contribution in kind of 3 properties for an amount of EUR 30m. (**) The EUR 22.4m equity raised in May through the stock dividend was issued at EUR per share. The EUR 30.0m raised through the Lake Side bis -transaction was issued at EUR The average also includes the EUR 3.4m contribution in kind of Immo Wever, with shares issued at EUR

34 Financing structure Solid debt metrics Debt ratio at 57.7% ICR at 3.4x Cost of debt at 3.6% Debt composition 90% Evolution hedge ratio Long-term bilateral credit facilities 73% Commercial paper 23% 80% 70% 60% 50% 40% Leasing 3% Straight loans 1% 30% 20% 10% 0%

35 Financing structure Well-spread debt maturities Duration of outstanding debt of 2.7y (incl. commercial paper) Duration of long-term credit facilities of min. 3.3y and max. 4.2y (*) Committed undrawn long-term credit lines of EUR 75m (**) Debt maturities (min.) (*) Debt maturities (max.) (*) >2019 Commercial paper & straight loans Long-term credit facilities (undrawn) Long-term credit facilities (drawn) >2019 Commercial paper & straight loans Long-term credit facilities (undrawn) Long-term credit facilities (drawn) (*) Some loans are structured with a renewal option at the discretion of the lenders. The minimum loan duration assumes these renewal options are not exercised. The maximum loan duration assumes the loans are rolled over at the date of the renewal. (**) Excluding the back-up facilities to cover the commercial paper programme and available short-term credit facilities.

36 WDP share Share statistics NAV (EPRA) per share of EUR 33.5 at 9M 2012 Market cap of ca. EUR 600m Free float of 71% - Family Jos De Pauw 29% WDP share price vs. NAV WDP share price Net Asset Value (EPRA NAV) 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 - EPS & DPS history EPS (EPRA) DPS

37 WDP share Return of WDP share Total return 9M 2012 Average since IPO / year WDP 18,1% 12,3% GPR 250 Belgium -0,8% 4,3% GPR 250 Europe 19,7% 6,2% BEL 20 13,9% -2,1%

38 Executing on growth plan Improvement occupancy rate standing portfolio Strong investment volume of EUR 100m (acquisitions & projects) Funded with a healthy mix of debt & equity (55/45) Confirmation of Benelux market leadership Strategic acquisition in the Netherlands of EUR 105m Renewed success of optional dividend Letting of projects previously put on hold Disposal of smaller non-core assets 2013 Maintaining good operational & financial metrics Exploiting market position to source opportunities Preparing for next phase

39 Executing on growth plan (cont d) 2013 target 2012E EUR 3.73 (+20%) EUR 3.60 (+15%) 2011 EUR 3.42 (+10%) 2010 EUR 3.11 (basis) On track to meet target of 20% EPS growth in Including recent reinforcement of equity base

40 Outlook 2012 Expected net current result of minimum EUR 51m or EUR 3.60 per share including Lake Side Portfolio & based on good fundamentals (high occupancy, long lease duration, healthy underlying market) (*) Expected dividend +5% to EUR 3.10 per share based on a payout ratio of 90% Gearing ratio expected of around 55% Expected occupancy rate of at least 96% end 2012 (*) Based on the present situation and barring unforeseen events (such as a material deterioration of the economic and financial environment) and a normal level of solar irradiation.

41 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 carries substantial risks. Investors are invited to carefully consider the risks, uncertainties and all other relevant information contained before deciding to invest. These risks, if they actually occur, could adversely impact WDP's business, results of operations, financial conditions and prospects and thereby the value of the shares and the dividend, and consequently, create a loss to investors of all or part of their investment. This presentation combined with all the declarations, estimates and forecasts and in general all other corporate information released by WDP contains selected and summarised information and does not express any commitment or acknowledgement or creates any right expressed or implied to. This presentation contains forward-looking information, forecasts and estimates prepared by WDP relating to the expected future performance of WDP and the market in which WDP operates. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the forecasts, estimates and other forward-looking statements will not be achieved. Investors should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. Such declarations, forecasts and estimates are based on various hypotheses and assessments of known and unknown risks, uncertainties and other factors which seemed sound at the time they were made, but which may or may not prove to be accurate. Some events are difficult to predict and can depend on factors on which WDP has no control. This uncertainty is further increased due to financial, operational and regulatory risks and risks related to the economic outlook, which reduces the predictability of any declaration, forecast or estimate made by WDP. Consequently, the reality of the earnings, financial situation, performance or achievements of WDP may prove substantially different from the guidance regarding the future earnings, financial situation, performance or achievements set out or suggested in such declarations, forecasts or estimates. Given these uncertainties, investors are advised not to give undue weight to these forward-looking statements. Additionally, the forecasts and estimates only apply on the date of drafting this presentation and WDP is not obliged to update these forecasts or estimates to reflect any changes in its expectations in this regard or any change in the events, conditions or circumstances on which such forecasts or estimates are based on. WDP makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.

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