WDP - FY21 results and the 2025 ambition WDP BB

FY21 EPRA EPS came bang in line with the company guidance of € 1.10.The outlook for FY22 of 1.20 also answers to our expectations. WDP also gave an EPRA EPS projection of 1.50 by FY25 (8% CAGR) vs. our current expectation of 1.42. WDP overshot its earlier FY19-23 plan, but for the moment we remain cautious on the investment beyond 2024. It is clear that the sector currently benefits from tailwinds like e-commerce, supply chain optimisation and environmental investments. WDP forecasts total Capex of 2bn over FY22-25. The earnings momentum is driven by tailwinds for the sector and solid operational performance. Occupancy rates remain high at 98.6%. The financial position remains solid with LTV at 36.7%. We raise our TP slightly from € 38.5 to € 40.0 on DCF rolling forward. The current inflation fear is not a big risk for WDP as it profits from rent indexation, while at the same time it has hedged 83% of its debt. We maintain a Hold rating as the upside to our target remains limited. WDP also announced its climate action plan and took a 25% stake in energy prop-tech company nanoGrid. A conference call will be held at 15h00. Most likely we will get more data on how WDP expects to grow till FY25 and on its ESG strategy called M.A.D.E.