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1. Company Snapshot

1.a. Company Description

WDP develops and invests in logistics property (warehouses and offices).WDP's property portfolio amounts to more than 5 million m².This international portfolio of semi-industrial and logistics buildings is spread over around 250 sites at prime logistics locations for storage and distribution in Belgium, France, the Netherlands, Luxembourg, Germany and Romania.

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1.b. Last Insights on WDP

Recent drivers behind Warehouses De Pauw's performance include strategic growth and European expansion, with over EUR1 billion in investments. The company reported robust financial performance, despite challenges in Germany and rising tax rates. This growth is expected to continue, driven by its strong European presence and strategic investments.

1.c. Company Highlights

2. WDP.BR Delivers Strong Q1 2025 Results Amid Robust Logistics Demand

WDP.BR reported a solid Q1 2025, with revenues and earnings per share (EPS) matching consensus estimates at €0.36. The company demonstrated strong operational performance, securing 165,000 square meters of new leases and investing over €300 million in logistics real estate. This highlights the continued demand for high-quality logistics facilities across Europe. The renewal rate of 80% underscores tenant loyalty and market stability, despite geopolitical uncertainties. Management emphasized the positive impact of trends such as continentalization and supply chain reshoring, which are driving growth in the logistics sector.

Publication Date: Apr -25

📋 Highlights
  • High Renewal Rate: - 80% renewal rate, indicating strong market recovery and tenant retention.
  • Robust Investment Pipeline: - €800 million pipeline targeting 6.7% NOI yield and 97% occupancy by 2027.
  • Conservative Debt Management: - Net debt-to-EBITDA below 8x and LTV below 40%, ensuring financial stability.
  • Occupancy Outlook: - 150bps potential decline in 2025 occupancy, but recovery expected by 2027.
  • Strategic Growth Aim: - Targeting €10 billion AUM with 15% EPS growth by 2027, supported by resilient logistics demand.

Operational Highlights and Strategic Initiatives

The company’s ability to deliver comprehensive logistics solutions was evident in its notable deal with KDL, showcasing WDP.BR’s competitive edge. During the Q&A session, management expressed confidence in its €800 million investment pipeline, targeting a 6.7% net operating income (NOI) yield and 97% occupancy by 2027. This aligns with the company’s long-term strategy to expand its presence in Western Europe’s logistics market. WDP.BR also highlighted its disciplined approach to financial management, maintaining a conservative leverage policy with net debt-to-EBITDA below 8x and loan-to-value (LTV) below 40%.

Valuation and Strategic Outlook

From a valuation perspective, WDP.BR currently trades at a P/E ratio of 11.37 and a P/B ratio of 1.04, reflecting its stable growth prospects. The company’s focus on execution and capturing growth opportunities is supported by a robust investment pipeline yielding between 6.5% and 7%. Management’s strategic plan, #BLEND2027, aims to position WDP.BR as a leading logistics real estate player in Western Europe, targeting a 15% EPS growth by 2027. This growth trajectory is underpinned by resilient logistics fundamentals, with active sectors such as food, FMCG, and e-commerce driving demand. Analysts expect revenues to grow by 9.5% next year, aligning with the company’s strategic ambitions.

3. NewsRoom

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Is Warehouses De Pauw’s 2025 Recovery for Real After Improving Logistics Demand?

Sep -15

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Warehouses De Pauw SA (WDPSF) (FY 2024) Earnings Call Highlights: Strategic Growth and ...

Feb -06

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Warehouses De Pauw SA (WDPSF) Q3 2024 Earnings Call Highlights: Strong Financial Growth Amid ...

Oct -19

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Warehouses De Pauw SA (WDPSF) (Q2 2024) Earnings Call Highlights: Strategic Investments and ...

Oct -09

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Warehouses De Pauw SA's Dividend Analysis

Apr -24

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Logistics Site Leasing

Expected Growth: 4%

The 4% growth in Logistics Site Leasing from Warehouses De Pauw is driven by increasing e-commerce demand, rising need for efficient supply chain management, and growing importance of strategic warehouse locations. Additionally, the rise of urban logistics and last-mile delivery, coupled with limited warehouse supply, contribute to the growth of this segment.

7. Detailed Products

Agricultural Commodities

Warehouses De Pauw offers a wide range of agricultural commodities such as grains, oilseeds, and pulses, sourced from top producers around the world.

Food Ingredients

The company provides a variety of food ingredients, including starches, sweeteners, and emulsifiers, used in the production of food products.

Animal Feed

Warehouses De Pauw supplies animal feed ingredients, such as grains, proteins, and minerals, to the livestock industry.

Biofuels

The company offers biofuels, such as biodiesel and ethanol, as a sustainable alternative to fossil fuels.

Logistics and Supply Chain Management

Warehouses De Pauw provides logistics and supply chain management services, including storage, transportation, and customs clearance.

8. Warehouses De Pauw's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for Warehouses De Pauw, as there are some alternative options available for customers, but they are not very attractive.

Bargaining Power Of Customers

The bargaining power of customers is high for Warehouses De Pauw, as customers have many options and can easily switch to competitors.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Warehouses De Pauw, as the company has a strong negotiating position and can dictate prices.

Threat Of New Entrants

The threat of new entrants is low for Warehouses De Pauw, as there are significant barriers to entry and it would be difficult for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is moderate for Warehouses De Pauw, as there are several competitors in the market, but they are not extremely aggressive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.27%
Debt Cost 3.95%
Equity Weight 65.73%
Equity Cost 6.29%
WACC 5.49%
Leverage 52.15%

11. Quality Control: Warehouses De Pauw passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Tritax Big Box

A-Score: 6.1/10

Value: 4.1

Growth: 5.7

Quality: 6.8

Yield: 8.1

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.6

Growth: 6.3

Quality: 8.4

Yield: 10.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Safestore

A-Score: 5.6/10

Value: 5.2

Growth: 5.8

Quality: 7.4

Yield: 7.5

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
WDP

A-Score: 5.6/10

Value: 4.1

Growth: 5.7

Quality: 6.4

Yield: 6.2

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Big Yellow

A-Score: 5.2/10

Value: 4.3

Growth: 4.4

Quality: 7.5

Yield: 7.5

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
SEGRO

A-Score: 4.7/10

Value: 3.0

Growth: 3.4

Quality: 6.2

Yield: 6.2

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.46$

Current Price

21.46$

Potential

-0.00%

Expected Cash-Flows