Warehouses De Pauw FY24 Results, Macro worries and noise overdone, FY27 outlook intact

EPRA EPS FY24 came above our expectation at EUR 1.50 vs. 1.45 exp. and guidance of 1.47. The difference is largely explained by a +0.03 impact from a lease-break fee in Romania. Also higher capitalised interest as the pipeline grew. The 7.1% EPRA EPS yoy growth is still impressive as its average share count increased by 8%. WDP guided EPRA EPS25 to 1.53, slightly above our 1.52 estimate. The “Blend27” strategy was repeated with a guidance of 1.70 EPRA EPS by FY27. Current development pipeline stands at 331m of which 60% is pre-let with a GIY of 6.8%. The decline in pre-let is related to some Brownfield projects and cluster extensions. On 19/3, KBCS organizes a panel on brownfields to explain their complexity and impact on financials. The shares recovered slightly from a steep sell-off that started on macro worries. The noise on potential exit of MSCI developed index added to the decline (overdone). Recently, acquisitions increased as WDP enters France, but the recent 200k sqm Vilvoorde deal shows their development DNA.