Warehouses De Pauw (WDP) Q1 2025 earnings summary

Executive summary

• Achieved 8% year-over-year EPRA EPS growth in Q1 2025 to €0.36, with total EPRA Earnings up 12% to €80.6 million, driven by strong leasing, investment activity, and healthy market dynamics.

• Occupancy rate reached 98.1% (+10 bps quarter-over-quarter), with robust client retention, 165,000 m² of new leases signed, and 75,000 m² of fully pre-let projects completed.

• Investment pipeline execution remains robust, with €320 million in new projects and acquisitions secured in Q1 and a total pipeline of €820 million at a 6.7% NOI yield.

• The #BLEND2027 growth plan is on track, targeting EPRA EPS of €1.70 by 2027, supported by a strong balance sheet, €1.4 billion in unused credit lines, and expected auto-financing of €600 million over 2025-27.

• Guidance for 2025 confirmed: EPRA EPS expected at €1.53 (+7% y/y), with a minimum occupancy rate of 97% and a projected dividend of €1.23 per share.

Financial highlights

• Property result increased 20.9% year-over-year to €108.2 million, with like-for-like rental growth of 1.8% and operating margin at 90.0%.

• Net result (IFRS) was €68.1 million, down from €105.9 million in Q1 2024, mainly due to lower fair value changes and higher depreciation on solar panels.

• Portfolio fair value rose to €8.15 billion (+3.5% vs. end 2024), with a gross initial yield of 6.2% and EPRA Net Initial Yield stable at 5.4%.

• Loan-to-value increased to 40.2% (from 38.3% at end 2024), net debt/EBITDA (adj.) at 7.5x, and cost of debt at 2.3%.

• EPRA NTA per share rose to €21.7 (+2.7% vs. end 2024); occupancy rate at 98.1%; average lease term 5.4 years.

Outlook and guidance

• 2025 EPRA Earnings per share expected at €1.53 (+7% y/y), excluding 2024 one-off gain and Dutch REIT regime impact; dividend per share projected at €1.23 (gross), payout ratio 80%.

• Growth plan #BLEND2027 targets EPRA EPS of €1.70 by 2027, with all funding and building blocks in place.

• Assumes minimum 97% occupancy, stable client payment, and cost of debt below 2.5% through 2027.

• Dutch REIT regime abolishment to impact EPRA EPS by -€0.05 per share from 2025, increasing annual tax burden by €11 million.

• 15% cumulative EPS growth targeted by 2027, supported by execution and leasing of the current pipeline.