WDP holds steady despite operational softening and rising leverage

Published 25/07/2025, 08:10
© Reuters.

Investing.com -- Warehouses de Pauw (EBR:WDPP) (EBR:WDP) on Friday reported its H1 2025 results, confirming its full-year guidance despite slightly softening operational metrics and increasing leverage.

The logistics property company reported H1 rental income of €220.8 million, up 19.2% year-over-year, with like-for-like rental growth of 2.2%, compared to 1.8% in Q1 and 2.6% in FY-24. Operating result rose 19.6% to €206 million.

WDP’s EPRA Earnings reached €171.2 million, a 10% increase despite financial expenses jumping 135%. EPRA earnings per share grew 6% to €0.75. The company confirmed its 2025 guidance of €1.53 EPRA EPS (up 7% year-over-year) and maintained its €1.70 target for 2027.

Operational metrics showed some softening, with occupancy falling to 97.3% from 98.1% in Q1 and 98.0% at year-end 2024. Of the 13% of lease agreements reaching their next break in 2025, 90% have been successfully renewed while 10% have vacated.

The company signed over 300,000 square meters of new leases in H1 out of its 8 million square meter portfolio.

The reversionary potential decreased to 9%, down from 10% in Q1, 11% in 2024, and 15% in 2023. WDP expects to maintain a minimum occupancy rate of 97%.

Portfolio revaluation was modest at +0.2% in H1, with Belgium down 0.5%, Netherlands up 1.7%, and Romania flat. EPRA Net Initial Yield remained stable at 5.4%, while EPRA NTA declined 1.4% to €20.8, affected by dividend payments.

The company completed €440 million of investments in H1 at a yield of 6.8%. Its investment pipeline stands at €800 million (with €651 million yet to be spent) for 700,000 square meters at a yield on cost of 6.7%.

Leverage metrics deteriorated, with EPRA LTV ratio rising to 42.9% from 39.3% in 2024, and net debt to adjusted EBITDA increasing to 7.7x from 7.2x. The interest coverage ratio declined to 5x from 6.9x in 2024.

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