Warehouses De Pauw FIRST LOOK : 1H23 Results, in line with guidance

The 1H23 results came in line after the DBI update on 3/7 when EPS23 guidance was raised to 1.40 from 1.35. EPRA EPS of 0.71 equals our 0.71 estimate incl. 4 cent of DBI impact. WDP repeated its 1.40 EPRA EPS guidance which equals also our 1.40 incl. 5 cent DBI uplift. The GRI of 163.7m also came close to our 164.6m estimate. The negative impact on the FV over 2Q23 slowed down slightly to 60.3m from. 76.8m over 1Q23. A 1H23 yield expansion on the existing portfolio of 27bps (15bps 1Q23) was partly compensated by a 3.5% (1.6% 1Q23) increase in ERV. We expected 25bps of total yield expansion over 1H23 in our model. The new projects identified over 1H23 amounted to 85m, with an expected GIY of 7%. The solar investments of 70m are on track. WDP changed its strategy to more selective investments for higher Yld on cost, combined with a focus on solar expansion. The LTV remains relatively low at 38.3%. We believe that in case of an European economic downturn, WDP is in pole position to pick up interesting assets. Analyst call at 10H00. WDP Capital Market Days are set for 13-14 September : subscription link.