WDP – Annual results for 2023

“With the 2025 EPS target in sight, the time has come for a new chapter in our growth story: #BLEND2027. In this challenging environment, value creation will depend more than ever on harmoniously blending different drivers across multiple regions. Over the past two years, we have laid the foundations for this with #TeamWDP. Moreover, to achieve our ambitions, we can rely on one of the strongest balance sheets in the industry. Our DNA that puts entrepreneurship and client- centricity at the heart of our business will continue to make the difference,” says Joost Uwents – CEO, WDP

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Strong earnings growth in 2023 is reflected in the EPRA Earnings per share of 1.40 euros, showing a remarkable increase of +12% year-on-year (or 1.35 euros, which reflects an +8% year-on-year growth, adjusting for a one-off impact of +0.05 euros per share related to the FBI status). This growth was primarily driven by organic factors, including a +6% increase through rent indexation and pre-let projects/acquisitions, all while maintaining a stable cost of debt despite portfolio growth and rising interest rates. Consequently, WDP proposes a dividend of 1.12 euros per share, reflecting a +12% year-on-year increase.

The company maintained a high occupancy rate of 98.5% as of December 31, 2023, supported by strong market dynamics and healthy demand, with approximately 436,000 m2 of pre-let new construction projects completed in the same year.

WDP’s portfolio demonstrated a robust performance, valued at a 5.3% EPRA Net Initial Yield after a limited write-down of -0.5% in Q4 2023. This yield shift was offset by an increase in estimated market rent values, and the contractual rent remained approximately 13% below market rent.

Financially, WDP remained robust in the face of volatile interest rates, with a substantially improved loan-to-value ratio of 33.7% as of December 31, 2023, compared to 38.1% in Q3 2023. The net debt / EBITDA ratio stood strong at 6.4x, and the balance sheet remained liquid, backed by undrawn credit lines of approximately 1.8 billion euros, all with debt fully hedged.

The growth plan for 2022-25 exceeded expectations, with an investment volume of 462 million euros in 2023, comfortably surpassing the targeted annual investment volume of 250 million euros. With an expected EPRA Earnings of 1.47 euros per share for 2024, the 2025 target of 1.50 euros is within reach one year in advance, bolstered by a significantly strengthened balance sheet.

Looking ahead to #BLEND2027, the new four-year growth plan for 2024-27, WDP aims to continue its earnings growth by leveraging multiple drivers across various geographic markets. The company aspires to achieve an EPRA Earnings per share of 1.70 euros in 2027, marking an underlying annual increase of +6% year-on-year compared to 1.35 euros in 2023. WDP plans to invest a total of 1.5 billion euros across its operations and multiple countries, including developments, acquisitions, internal growth, and energy solutions. With a strong financial position and expected retained earnings, WDP is well-prepared to finance these future investments.