Full Year 2024 Warehouses de Pauw NV Earnings Call Transcript
Key Points
- Warehouses De Pauw SA (WDPSF) achieved strong financial and operational results in 2024, with significant investments enhancing their European footprint.
- The company successfully tripled its portfolio in France, marking a strategic milestone and establishing France as a fifth platform.
- WDPSF maintained a high occupancy rate of 98% and achieved an annualized rent of EUR 450 million.
- The company has a robust investment pipeline of EUR 1.1 billion with a net initial yield of 6.6%, indicating profitable growth potential.
- WDPSF is well-positioned to achieve its EUR 1.7 EPS target by 2027, supported by a strong balance sheet and funding strategy.
- The occupancy rate is expected to decline to 97% by mid-2025 due to certain spaces being returned.
- The company faces challenges in Germany, where investment activity has lagged behind France.
- There is a higher tax burden anticipated from 2025 due to the cancellation of the Dutch REIT regime, impacting earnings per share.
- Development costs have stabilized but remain high, with no significant decline expected due to rising labor costs and quality standards.
- The pre-letting rate on the development pipeline decreased from 72% to 60%, partly due to a client cancellation in Romania.
Hello everyone and thank you for joining today. It's clear that '24 has been a pivotal year for WDP highlighted by strong financial and operational results and strategic milestones, while celebrating 25 years on the stock exchange.
We made bold moves in the capital cycle, investing over EUR1 billion significantly enhancing our European footprint and more than doubling our investment activity compared to previous years. Through selective capital deployment, we navigated the risk spectrum replenishing our investment pipeline and solidifying our market presence.
At the same time, we've taken organizational changes to position WDP as a truly leading European player with five local platforms in six countries. A cornerstone of this strategy has been our success in France where we tripled our portfolio in just two years.
Under the newly appointed country manager, a local French team WDP will unlock new opportunities and extend our presence in this market. Germany also marked a milestone with our first major project of
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