Warehouses De Pauw 9m24 Results, executing Blend2027

EPRA EPS 9m24 came slightly above our expectation at EUR 1.09 vs. 1.07 exp. (Excl. 0.05 FBI). WDP repeated the FY24 EPRA EPS guidance of 1.47. The 5% expected EPRA EPS yoy growth is impressive as its average share count increased by 8%. The NIY is relatively stable at 5.4%, while development and acquisition gains increased the FV by 107.1m (+1.5%). The “Blend27” strategy was repeated with a guidance of 1.70 EPRA EPS by FY27. WDP will spend up to 1.5bn Capex and already identified 600m at a 7% GIY. Current development pipeline stands at 354m of which 72% is pre-let with a GIY of 6.7%. WDP explains the decline in pre-let since 1Q24 by the addition of brownfields and site extensions. The share price has been weak lately and its premium to NTA has declined. The market seems to anticipate that WDP will revert more to acquisitions at lower NIY. We believe this fear is overdone and any potential deal will be earnings enhancing. The recent acquisitions in Romania are an illustration of that.