Q3 2024 Warehouses de Pauw NV Earnings Call Transcript
Key Points
- Warehouses De Pauw SA (WDPSF) reported a 5% growth in earnings per share, aligning with their target of EUR1.47 by year-end.
- The company added EUR600 million in value to its balance sheet, reaching a total of EUR4.7 billion, indicating strong financial growth.
- WDPSF maintains a high and stable occupancy rate of 98%, showcasing the quality and demand for their portfolio.
- The company successfully executed EUR600 million in new investments, with a blend of equity and debt deals in Belgium and France.
- WDPSF's balance sheet remains strong and liquid, providing significant investment potential and supporting future growth initiatives.
- There is a noted slowdown in tenant demand, impacting tenant retention and development pipeline expectations.
- The company anticipates a drop in client retention from 90% to 80% for 2025, indicating potential challenges in maintaining occupancy.
- Economic uncertainty is causing delays in new developments, as clients adopt a wait-and-see approach before committing to large investments.
- The market is experiencing a cyclical downturn, with stocks bottoming out and clients reducing surplus inventory.
- Speculation about potential acquisitions, such as the rumored [or shop] portfolio, raises concerns about the impact on yield expectations.
Good morning, everybody. Welcome to the Q3 results of WDP. I think I can say, again, a perfect plan. Indeed, today, we create value with all our drivers as we have foreseen in our plan.
First of all, of course, our earnings per share are fully in line, and we are on the right way to the EUR1.47 for the end of this year, which is a growth of 5%. And until today, we added EUR600 million of value to our balance sheet, which let it grow up to EUR4.7 billion. And still, we have a perfect balance sheet, super strong, liquid, with investment potential, thanks to our permanent matching principle of debt and equity with acquisitions by Q3: two nice deals, one in equity, one in debt.
So based on that, and we can grow further. And yes, we realized, again, a very nice -- totally, we realized this year a very nice growth again globally, EUR600 million this year, of which EUR100 million included in Q3, and of course, based on a very good and high-quality portfolio with a high and stable occupancy rate of 98%.
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