Warehouses De Pauw FY23 Results in line, ambitious Blend27 strategy outlined

The FY23 EPRA EPS came in line with the 1.40 guidance and our 1.41 estimate. However, the FY24 EPRA EPS guidance of 1.47 comes above our 1.42 expectation. The 5% expected yoy growth is impressive as WDP issued 5.9% new shares only last November and Capex plans became more selective. This transaction lowered the LTV to 33.7%, but WDP plans to put the cash to work relatively fast this year. WDP also presents a “Blend27” strategy with a guidance of 1.70 EPRA EPS by FY27. It will spend up to 1.5bn Capex to get there. The yield expansion on the portfolio continued over 4Q23 with 20bps, but was partly compensated by 6% increase in ERV. The current pipeline stands at 402m with a 71% pre-let level. The stock will react positively thanks to the positive long term outlook in an uncertain economic climate. Analyst call at 15H00.