Warehouses De Pauw FIRST LOOK 9m23 Results, running on schedule

The 9m23 results came in line after the FBI update on 3/7 when EPS23 guidance was raised to 1.40 from 1.35. EPRA EPS of 1.06 equals our 1.06 estimate incl. FBI impact. WDP repeated its 1.40 EPRA EPS guidance which equals also our 1.40 incl. 5 cent FBI uplift. The GRI of 249.0m also came close to our 248.2m estimate. The negative impact on the FV over 3Q23 slowed down further to 55.5m from 137.1m over 1H23. The 9m23 yield expansion on the existing portfolio of 7bps (27bps 1H23) was partly compensated by a 5% increase in ERV. We expect 30bps of total yield expansion over 9m23 in our model vs. now 34bps reported. The new projects identified over 3Q23 amounted to 28m, with an expected GIY of 7.6%. 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 38.1%. We believe that in case of an European economic downturn, WDP is in pole position to pick up interesting assets. Analyst call at 10H00.