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Investing.com -- Shares of Warehouses de Pauw (EBR:WDPP) (WDP) ticked up 0.5% after the company released its earnings report, which showed a headline EPS of €1.50, including a one-off termination fee.
Excluding this fee, the EPS of €1.47 was in line with both Barclays (LON:BARC) and company guidance. The adjusted figures represent a 9% EPS growth year-on-year (YoY), despite a slowdown in like-for-like (LFL) rental growth to 2.6% from the 6.0% seen in the previous fiscal year.
The company’s FY25E guidance of €1.53 EPS aligns with Barclays’ estimate and indicates a 4% growth YoY. Warehouses de Pauw also highlighted an underlying increase of about 7% after adjustments for the loss of FBI status in FY25E, which will result in higher tax payments. In addition, the firm confirmed its BLEND27 plan, aiming for a €1.70 EPS in FY27E, matching Barclays’ forecast.
For the FY24, the dividend per share (DPS) of €1.20 is set to increase by 7%, slightly exceeding Barclays’ prediction of €1.18. The FY25E guidance DPS of €1.23, marking a 2.5% increase, is consistent with expectations.
In terms of investment strategy, Warehouses de Pauw secured €1 billion in investments and €25 million in disposals during FY24, with a strategic shift towards acquisitions over developments. This shift is considered appropriate given the reduced tenant demand, higher market vacancies, and the attractive income returns available on acquisitions.
The acquisitions totaled €800 million, with €400 million in Core at a 5.3% net operating income (NOI) Yield with growth potential, and another €400 million in Core+/Value-Add at a 7.0% NOI Yield.
Barclays commented on the company’s financial outlook, saying: "The shares on a 7.5% FY25E EPS yield look attractive and we reiterate our OW rating."
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