Warehouses De Pauw (WDP) Q4 2024 earnings summary

Executive summary

• Achieved over €1 billion in new investments in 2024, doubling prior years' activity, with a robust €1.1 billion pipeline and €1.7 billion liquidity available.

• Portfolio fair value reached €8 billion, with operations across five local platforms in six countries and annualized rent up 18% year-over-year to €644 million.

• Achieved 7% year-over-year growth in EPRA EPS to €1.50, surpassing guidance, and 7% DPS growth to €1.20.

• Strategic focus shifted from Benelux-centric to a core Western European platform, with France as a key growth market and Romania as a strategic extra.

• Confirmed 2027 EPRA EPS target of €1.70 (+6% CAGR), supported by a strong balance sheet and funding.

Financial highlights

• Net rental income rose 15.1% year-over-year to €387.4 million; property result up 16.8% to €417.5 million.

• EPRA NTA per share rose 4.7% to €21.1; total accounting return reached 10%.

• Maintained a 98% occupancy rate and a loan-to-value (LTV) of 38.3%.

• Debt to EBITDA stands at 7.2x, with a strong balance sheet supporting growth.

• €1 billion in new investments secured at a net yield of 6.4%, with a record €1.1 billion pipeline in execution at a 6.6% yield.

Outlook and guidance

• All building blocks and funding are in place to achieve the €1.70 EPS target by 2027, with 2025 EPRA EPS guidance set at €1.53 (+7% underlying) and DPS of €1.23.

• Underlying EPS growth projected at 7% year-on-year, with a 6% annual underlying growth rate.

• Minimum occupancy rate of 97% expected; cost of debt guided at 2.25%.

• Effective tax rate expected to rise from 3% in 2024 to 5% in 2025, stabilizing at 6% by 2027 due to the Dutch REIT regime abolishment, impacting EPS by -€0.05/share from 2025.