Warehouses De Pauw Model Update after FY23 results and Blend27

The FY23 results came in line with the guidance, but the attention on the analyst call was fixed on the FY24 outlook and “Blend27” strategy. The previous tone of “low economic visibility” and “selective investing” gave way for a confident growth plan into 2027. First, the FY24 EPRA EPS guidance of 1.47 came above our 1.42 expectation. The 5% expected yoy growth is impressive as WDP issued 5.9% new shares only last November. A fast ramp up of rental income has to come from more acquisitions (FR,GE). WDP also presented 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 current pipeline stands at 402m with a 71% pre-let level. This implies a lot of additional growth that has come either from market acquisitions or future developments from the land bank. WDP seems to expect some distressed assets coming to the market. Their access to relative cheap funding is a clear advantage vs. competitors.