WDP Investor Day

WDP Investor Day
22nd of August, 2012
Overview
09:30
10:15
12:45
Welcome & Breakfast
Presentations + Q&A
Lunch & networking
13:45
18:00
18:15
Visit of strategic WDP sites
Arrival at Schiphol Airport
Arrival at WDP site in the Schiphol Logistics Park
Overview
Introduction
WDP H1 2012 results
WDP Strategy
Tri-Vizor Drivers Benelux logistics market
SADC Schiphol airport & logistics
WDP Netherlands portfolio
WDP site visits
DTZ logistics market Netherlands
WDP H1 2012 results
by Mark Duyck, Joost Uwents & Mickael Van den Hauwe
Agenda
Introduction
Highlights H1 2012
Acquisition Lake Side Portfolio
Operational review
Portfolio overview
Financing structure
Results analysis
WDP share
Outlook
Introduction
■ By Mark Duyck, Chairman
“The cult of equity is dying”
Bill Gross, Pimco
Highlights H1 2012
■ Operational
■ Occupancy rate 97.3% (+ 60bps in H1 2012) & letting of Venlo project (28,000m²)
■ Strategic acquisition in second home market the Netherlands (Lake Side Portfolio)
■ Confirmation of Benelux market leadership (deployment in the Netherlands)
■ Financial
■ Renewed success of optional dividend (reinforcing equity base to fund growth)
■ Strengthening financing (several new credit facilities)
■ Controlled cost of debt (based on high hedge ratio)
■ Results
■ Continued growth of the net current result in H1 2012 (+8% on a per share basis) (*)
■ Dividend forecast of EUR 3.10 per share confirmed (+5% compared to 2011)
■ Guidance net current result increased to minimum EUR 51m (EUR 3.60 per share) (*)
(*) Based on the weighted average number of outstanding shares.
Highlights H1 2012
KEY FIGURES
Operational
Fair value of real estate portfolio (incl. solar panels) (EUR m)
Gross rental yield (incl. vacancy) (%)
Net initial yield (EPRA) (%)
Average lease duration (till first break) (y)
Occupancy rate (%)
Like-for-like rental growth (%)
Operating margin (%) (H1 2012 vs. H1 2011)
30.06.2012 31.12.2011
1.098,6
989,4
8,2%
8,3%
7,5%
7,5%
7,2
7,2
97,3%
96,7%
2,9%
2,8%
91,1%
91,8%
Per share data (EUR)
Net current result (EPRA)
Result on portfolio
IAS 39 result
Net result
NAV (IFRS)
NAV (EPRA)
NNNAV (EPRA)
30.06.2012 30.06.2011
1,82
1,70
0,04
-0,11
-0,86
0,53
1,00
2,12
27,93
29,09
32,52
31,32
27,93
29,09
Acquisition Lake Side Portfolio
■ Lake Side Portfolio transaction (*)
■ Acquisition of a high quality, long leased logistics portfolio in the Netherlands
■ 8 modern logistics/industrial facilities rented out to quality tenants
■ Financial details
■ Asset deal of 8 freehold properties for a total investment of EUR 105m (**)
■ Annualized rental income of EUR 8.2m generating a gross initial yield of 7.8% (***)
■ Strategic fit
■ Further deployment in second home market the Netherlands
■ Strengthening portfolio quality & lengthening lease duration
(*) See press releases of 22 March 2012 and 25 April 2012.
(**) Including transaction costs.
(***) Calculated by dividing the annualized gross rental income by the purchase price (including
transaction costs). Over H1 2012, the Lake Side Portfolio contributed EUR 1.8m in rental income.
Strategic rationale
■
Excellent quality assets
■
Long duration leases
■
Complementary to existing portfolio
■
2010-13 growth plan
■
Strengthening Benelux market leadership
■
Building strong platform in the Netherlands
Overview assets Lake Side Portfolio
Location
Type
Tenant
Nieuwegein
Zwolle
Helmond
Veghel
Oss
Roosendaal (*)
Oss
Beek (Maastricht-Airport) (*)
Logistic
Logistic
Industrial
Industrial
Industrial
Industrial
Logistic
Logistic
V&D
Kuehne + Nagel
Prinsen
Vetipak
Vetipak
BIS Industrial Services
Movianto
Koninklijke Mosa
Total
(*) Under construction with deliveries scheduled in H2 2012.
Site area Gross Lettable Occupancy Gross annual
Lease
(m²)
Area (m²)
rate rent (EUR m) duration (y)
42.980
35.826
16.874
10.000
10.089
32.000
21.600
38.200
44.423
19.765
13.025
9.820
11.074
9.091
16.905
25.197
100%
100%
100%
100%
100%
100%
100%
100%
2,5
1,2
0,7
0,5
0,5
0,8
0,9
0,9
15,3
7,6
15,0
9,1
14,0
10,0
10,0
15,0
207.569
149.300
100%
8,2
12,5
Purchases
Transaction
Country
■ Lake Side Portfolio NL
Type
logistics portfolio
Investment
EUR 105m (*)
■ 6 properties transferred during H1 2012
EUR 83m
■ 2 projects scheduled for delivery & transfer in H2 2012
EUR 22m
■ Solar panels
BE
1.2MWp on rooftops
EUR 2m
Total investment of > EUR 100m
Profitable strengthening of market position
(*) The transfer of the properties will occur in phases during 2012. The 6 leased buildings which are
already completed were transferred on 27 April 2012 for approximately EUR 83m. The 2 fully pre-leased
projects currently under construction with investment budgets of respectively approximately EUR 10m
and approximately EUR 12m are expected to be completed and transferred respectively in early
September 2012 and early December 2012.
Disposals (under negotiation)
Transaction
■ Various
Country
BE
Type
logistics
Divestment
EUR 21m
EUR 20m disposals under negotiation (at fair value) (*)
Smaller non-strategic assets
(*) A total of 7 properties are currently held as ‘Assets for sale’. For 4 of these properties a final, binding
sales agreement has been signed.
Projects executed
Location
■ Mollem
■ Mollem
■ Venlo (*)
Total
Country
BE
BE
NL
Surface
3,200m²
3,100m²
15,000m²
Completion
Q1 2012
Q2 2012
Q2 2012
Tenant
Lactalis
Vemoflex
Arrow Electronics
21,300m²
Total capex of EUR 7m (**)
Yield on total cost around 8%
(*) Because of unstable market conditions the completion of this project was postponed in 2009. After
the letting to Arrow Electronics, the finalization of the project has been accelerated in Q2 2012 taking
into account a limited cash-out of EUR 2m.
(**) For Venlo only taking into account the required investment to finish the project.
Projects in execution (pre-let)
Location
Country
■ Willebroek
■ Schiphol
■ Ternat
Total
BE
NL
BE
Surface
15,000m²
10,000m²
10,000m²
Completion
Q3 2012
Q3 2012
Q4 2012
Tenant
Distrilog
Rapid
ATS, Bpost etc
35,000m²
Total capex of EUR 21m (EUR 10m disbursed to date) (*)
Yield on total cost around 8%
(*) Since the Ternat project concerns a renovation, only refurbishment spends were taken into account.
Projects on hold (unlet)
Location
■ n/a
Country
n/a
Surface
Strategy
n/a
n/a
No unfinished & unlet projects left, down y/y from 45,000m²
Further optimization of balance sheet
Development potential (uncommitted)
Location
■
■
■
■
■
Country Buildable surface (*)
St.-Niklaas
Nivelles
Courcelles
Trilogiport
Heppignies
BE
BE
BE
BE
BE
■ Libercourt FR
■ Neprevaska CZ
■ Various
RO
16,000m²
25,000m²
10,000m²
50,000m² (**)
80,000m²
24,000m²
10,000m²
tbd
Land positions with a fair value of EUR 42m
Initiation subject to preletting, secured financing & permits
(*) Potential surfaces that could be built on the sites.
(**) Concession.
Sustainability
■ Investments renewable energy
■ Realized projects to cover rooftops of 4 sites in Belgium with 1.2MWp solar panels
■ Total of 16MWp solar panels in operation on rooftops in Belgium
■ H1 2012: solar panel income stands for 8% of revenues
■ Various initiatives to reduce CO2 footprint
■ Initiated sustainable lighting project (cfr. Mollem – first ‘fully-LED’ warehouse in BE)
■ BREEAM certification for new projects (Willebroek, Schiphol)
■ Constant dialogue with tenants to reduce heating and electricity consumption
■ Looking ahead
■ Political headwind reduces economic viability and lengthens project lead time
■ Examining various alternatives (*)
■ Lake Side Portfolio – two buildings covering 40% of the surfaces BREEAM certified
(*) Like for example the thermal storage systems that are being used in the BREEAM certified
buildings in Nieuwegein and Helmond that are part of the Lake Side Portfolio.
Geographical footprint
Portfolio fair value split H1 2012 (*)
Czech Republic
Netherlands
30%
Belgium
57%
•Value: EUR 25m
•Gross yield: 10.5%
•Vacancy rate: 0.0%
•39,000m² buildings
•131,000m² land
France
8%
Czech
Republic
2%
Romania
3%
Romania
Total
•Value: EUR 25m
•Gross yield: 9.4%
•Vacancy rate: 0.0%
•7,000m² buildings
•861,000m² land
•Value: EUR 1,029m
•Gross yield: 8.2%
•Vacancy rate: 2.9%
•1.8m m² buildings
•4.4m m² land
Belgium
•Value: EUR 586m
(*) Excl. solar panels and incl. •Gross yield: 7.6%
•Vacancy rate: 3.1%
projects. Vacancy rate excl.
solar panels (EPRA definition). •1,090,000m² buildings
•2,218,000m² land
France
Netherlands
•Value: EUR 83m
•Gross yield: 8.4%
•Vacancy rate: 8.3%
•150,000m² buildings
•376,000m² land
•Value: EUR 310m
•Gross yield: 9.0%
•Vacancy rate: 1.6%
•489,000m² buildings
•825,000m² land
Occupancy
■ Continued high occupancy
■ Occupancy rate 97.3% at H1 2012 (vs. 96.7% end 2011)
■ 80% of 2012 rental breaks secured
■ Expected occupancy of minimum 95% end 2012
Historical occupancy rate
Lease maturity profile (till first break)
100,0%
40%
8,0
97,5%
35%
7,0
30%
6,0
25%
5,0
92,5%
20%
4,0
90,0%
15%
3,0
10%
2,0
5%
1,0
0%
0,0
95,0%
87,5%
85,0%
Vacancy due to unlet development projects
Reletting of Hazeldonk post closing of FY04
Occupancy rate
% Lease maturities 2012 renewed at 30.06.2012
% Lease maturities (incl. solar income)
Weighted average lease duration (till first break & incl. solar panels)
Diversified client base6
■ Well-spread tenant profile
■ Active in multiple industries & predominantly large (inter)national corporates
■ Healthy mix between end-users & logistic service providers
■ Top tenants spread over multiple buildings / businesses / countries
Top tenants
Tenant industry activity
Univeg Group (*)
13%
14%
3 PL
15%
Other
DHL (**)
10%
Food
Wholesale
Other
48%
7%
Automotive
Solar panels
8%
4%
41%
4%
Kuehne + Nagel
6%
Top 6-10
11%
Philips Lighting
4%
Telecom & ICT
4%
1% 2% 3%
5%
(*) Due to the growth of WDP and the disposal by Univeg of several non-core activities, the weight of
Univeg within WDP’s revenues will evolve towards 10% by year-end 2012.
(**) The client relationship with DHL concerns multiple rental contracts spread over 10 buildings, 3
countries and 3 business units.
Industry
Textile
Services
Media & Communication
Government & non-profit
6with long-term leases
■ Income visibility
■ Circa 40% of contracts have a duration of minimum 10y
■ Including Lake Side Portfolio with 12.5y weighted average lease length
■ Strong historical client retention rate
Lease duration
Weighted average lease duration (y)
Till first break
Till expiration
Rental contracts (excl. solar panels)
6,4y
8,6y
Rental contracts (incl. solar panels)
7,2y
9,3y
H1 2012 Consolidated results
EUR x 1.000
Net current profit
Net rental result
Income from solar energy
Other operating income/charges
Property result
Property costs
Corporate overheads
Net profit on property
Financial result excl. IAS 39 result
Taxes on net current result
Deferred taxes on net current result
Net current profit
Result on the portfolio
Changes in fair value of property investments (+/-)
Result on the disposals of property investments (+/-)
Deferred taxes on the result of the portfolio
Result on the portfolio
IAS 39 result
Variation in the fair value of financial instruments
Deferred taxes on revaluation of IRSs
IAS 39 result
NET PROFIT
H1 2012
H1 2011
% Growth
2011
35.844
3.238
-280
38.803
-1.012
-2.433
35.357
-10.131
-143
-30
25.053
30.345
3.411
-154
33.602
-721
-2.020
30.861
-9.231
-105
-72
21.453
18,1%
-5,1%
82,2%
15,5%
40,4%
20,5%
14,6%
9,7%
35,9%
-58,1%
16,8%
63.103
6.209
-218
69.094
-1.403
-4.362
63.329
-18.917
-87
-58
44.268
543
-1
12
555
-766
44
-629
-1.352
n.r
n.r
n.r
n.r
3.399
17
-708
2.708
-11.879
-11.879
13.729
6.748
6.748
26.849
n.r
n.r
n.r
n.r
-17.272
-17.272
29.704
H1 2012 Consolidated results
Per share data
H1 2012
H1 2011
% Growth
2011
Net current result (EPRA) (*)
Portfolio result
IAS 39 result
Net profit
Weighted average number of outstanding shares
1,82
1,70
0,04
-0,11
-0,86
0,53
1,00
2,12
13.744.468 12.656.120
7,5%
n.r.
n.r.
n.r.
8,6%
3,42
0,21
-1,33
2,29
12.958.501
Net current result (**)
Total number of dividend entitled shares
1,76
1,63
14.260.534 13.184.375
8,0%
8,2%
3,25
13.638.521
(*) Based on the weighted average number of outstanding shares and based on EPRA Best Practices
Recommendations (www.epra.com).
(**) Based on the total number of dividend entitled shares.
H1 2012 Consolidated B/S
EUR x 1.000
Intangible fixed assets
Property investments
Other tangible fixed assets (incl. solar panels)
Financial fixed assets
Financial lease receivables
Trade receivables and other fixed assets
Deferred tax assets
Fixed assets
Assets intended for sale
Financial leasing receivables
Trade debtors receivables
Tax receivables and other current assets
Cash and cash equivalents
Deferrals and accruals
Current assets
TOTAL ASSETS
30.06.2012
249
1.008.646
71.010
11.396
4.668
1.095.969
20.115
9.773
2.194
2.176
4.647
38.905
1.134.874
31.12.2011
310
908.089
68.185
11.418
4.409
992.410
14.310
6.649
1.431
1.704
2.380
26.474
1.018.884
30.06.2011
376
870.276
67.137
11.433
74
6.169
955.465
2.301
77
8.969
2.001
3.535
3.991
20.875
976.340
H1 2012 Consolidated B/S
EUR x 1.000
Capital
Issue premiums
Reserves
Net result of the financial year
Equity capital
Long-term financial debt
Other long-term liabilities
Long-term liabilities
Short-term financial debt
Other short-term liabilities
Short-term liabilities
TOTAL LIABILITIES
Metrics
NAV (IFRS)
NAV (EPRA)
NNNAV (EPRA)
Share price
Premium / discount
Debt ratio
30.06.2012
111.178
111.584
161.755
13.729
398.247
469.850
66.920
536.770
176.387
23.471
199.857
1.134.873
31.12.2011
106.336
94.168
171.127
29.704
401.333
422.536
55.058
477.594
126.187
13.770
139.955
1.018.882
30.06.2011
102.903
81.509
172.288
26.849
383.549
415.938
30.854
446.792
132.378
13.619
145.998
976.339
27,93
32,52
27,93
42,06
29,8%
58,7%
29,43
33,35
29,43
37,06
11,1%
55,1%
29,09
31,32
29,09
38,41
22,3%
57,3%
Financial management
■ Management of capital structure
■ EUR 22.4m equity raised through optional dividend
■ Success rate of 73%, issue price EUR 36.0 (~ 5.6% discount to VWAP) (*)
■ Debt ratio of 58.7% and expected to evolve towards 57% by year-end 2012
■ New financing
■ Financing package with ABN AMRO increased by EUR 20m to EUR 125m (100+25)
■ New 6y bullet loan of EUR 15m signed with Triodos Bank
■ Buffer of EUR 55m committed undrawn long-term credit facilities
■ Controlled cost of debt
■ Long-term hedges to cover debt taken up to acquire Lake Side Portfolio
■ Reduction in the average financing cost to 3.7% in H1 2012 (vs. 4.0% in H1 2011)
■ Based on a high hedge ratio (currently at 79%)
(*) The modalities were determined based on the basis of the volume-weighted average share price (or
‘VWAP’) during the 5 trading days on Euronext Brussels (corrected for the gross dividend of EUR 2.94 for
2011) preceding the announcement of the conditions of the optional dividend.
Financing structure
■ Solid debt metrics
■ Debt ratio at 58.7%
■ ICR at 3.3x
■ Cost of debt at 3.7%
Debt composition
Evolution hedge ratio
90%
Long-term
bilateral
credit
facilities
70%
Commercial
paper 22%
80%
70%
60%
50%
40%
Leasing 4%
Straight
loans 4%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
.
Financing structure
■ Well-spread debt maturities
■ Duration of outstanding debt of 2.8y (incl. commercial paper)
■ Duration of long-term credit facilities of min. 3.6y and max. 4.4y (*)
■ Committed undrawn long-term credit lines of EUR 55m (**)
Debt maturities (min.) (*)
Debt maturities (max.) (*)
200
200
150
150
100
100
50
50
-
-
2012 2013 2014 2015 2016 2017 2018 2019 >2019
Commercial paper & straight loans
2012 2013 2014 2015 2016 2017 2018 2019 >2019
Commercial paper & straight loans
Long-term credit facilities (undrawn)
Long-term credit facilities (undrawn)
Long-term credit facilities (drawn)
Long-term credit facilities (drawn)
(*) Some loans are structured with a renewal option at the discretion of the lenders. The minimum loan
duration assumes these renewal options are not exercised. The maximum loan duration assumes the
loans are rolled over at the date of the renewal.
(**) Excluding the back-up facilities to cover the commercial paper programme and available short-term
credit facilities.
WDP share
■ Share statistics
■ NAV (EPRA) per share of EUR 32.4 at H1 2012
■ Market cap of ca. EUR 575m
■ Free float of 71% - Family Jos De Pauw 29%
WDP share price vs. NAV
EPS & DPS history
4,00
60
3,50
50
3,00
2,50
40
2,00
30
1,50
20
1,00
0,50
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
WDP share price
Net Asset Value (EPRA NAV)
EPS (EPRA)
DPS
WDP share
■ Return of WDP share
Total return
Average since
H1 2012
IPO / year
WDP
22,0%
12,8%
GPR 250 Belgium
-0,3%
4,4%
GPR 250 Europe
13,1%
5,8%
6,9%
-2,6%
BEL 20
Delivering on strategic growth plan
Achievements
Strategic pillar
■ Letting projects
■
■
■
Reduction of vacancy standing portfolio
Secured pre-lettings for existing projects
Leasing up projects that were on hold
■ CO2 investment plan
■
■
■
Today 16 of 30MWp
Investigating various opportunities
BREEAM & sustainable lighting projects
■ Investments
■
■
■
>EUR 100m investment volume realized
Pruning portfolio through disposals
New projects in execution in BE & NL
On track to realize 20% EPS growth over 2010-13
Robust earnings growth supports projected dividend growth
Outlook 2012
■ Expected net current result of minimum EUR 51m or EUR 3.60 per
shareQ
■ Qincluding Lake Side Portfolio & based on good fundamentals
(high occupancy, long lease duration, healthy underlying market) (*)
■ Expected dividend +5% to EUR 3.10 per shareQ
■ Qbased on a payout ratio of 90%
■ Gearing ratio expected of around 57%
■ Expected occupancy rate of at least 95% end 2012
(*) Based on the present situation and barring unforeseen events (such as a material deterioration of the
economic and financial environment) and a normal level of solar irradiation.
Disclaimer
Warehouses De Pauw Comm.VA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a closed-end
property investment company, incorporated under Belgian law and listed on Euronext Brussels.
By its very nature, any investment in financial instruments carries substantial risks. Investors are invited to carefully consider the risks, uncertainties
and all other relevant information contained before deciding to invest. These risks, if they actually occur, could adversely impact WDP's business,
results of operations, financial conditions and prospects and thereby the value of the shares and the dividend, and consequently, create a loss to
investors of all or part of their investment. This presentation combined with all the declarations, estimates and forecasts and in general all other
corporate information released by WDP contains selected and summarised information and does not express any commitment or acknowledgement
or creates any right expressed or implied to.
This presentation contains forward-looking information, forecasts and estimates prepared by WDP relating to the expected future performance of
WDP and the market in which WDP operates. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general
and specific, and risks exist that the forecasts, estimates and other forward-looking statements will not be achieved. Investors should be aware that a
number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements. Such declarations, forecasts and estimates are based on various hypotheses and assessments of
known and unknown risks, uncertainties and other factors which seemed sound at the time they were made, but which may or may not prove to be
accurate. Some events are difficult to predict and can depend on factors on which WDP has no control.
This uncertainty is further increased due to financial, operational and regulatory risks and risks related to the economic outlook, which reduces the
predictability of any declaration, forecast or estimate made by WDP. Consequently, the reality of the earnings, financial situation, performance or
achievements of WDP may prove substantially different from the guidance regarding the future earnings, financial situation, performance or
achievements set out or suggested in such declarations, forecasts or estimates. Given these uncertainties, investors are advised not to give undue
weight to these forward-looking statements. Additionally, the forecasts and estimates only apply on the date of drafting this presentation and WDP is
not obliged to update these forecasts or estimates to reflect any changes in its expectations in this regard or any change in the events, conditions or
circumstances on which such forecasts or estimates are based on. WDP makes no representation, warranty or prediction that the results anticipated
by such forward-looking statements will be achieved.
WDP Strategy
by Joost Uwents
WDP in a nutshell
Pure player in warehouse sector
Developments
New build
Refurbishments
Acquisitions
Portfolios
Sale & rent back
Active & flexible investor
Sustainability
Creating long-term partnerships
Focus on sustainable solutions
Internal commercial, development &
property management teams
BREEAM
Renewable energy
Built on solid foundations
Supported by defensive REIT status
Geographic diversification
Long-dated experience with
dedicated strategy for > 35y
Strategic vision
Dynamic pure play property company offering
creative long-term solutions to clients
Creating a sustainable & growing income stream
and focus on assets with strong residual value
Building scale & financial strength to diversify
risks and drive performance
Lean & mean positioning within its core markets
as to maintain flexibility
Prioritize controlled growth
Shareholders
Clients
• Improve earnings visibility
• Build long-term partnerships
• Access to debt & equity
markets
• Offer creative deal structuring
& improve services
• Enhance return on equity &
control risks
• Diversify risk exposure &
create efficiency gains
Win/win for all stakeholders
Generating sustainable EPS growth
Built on strong fundamentals
> 95%
Historical average occupancy rate
> 8%
Consistently high portfolio yield
< 10%
Operating expenses as a % of revenues
< 4%
Controlled cost of debt
55-60%
Constant capital structure synchronizing debt & equity issuance
# 35
Headcount – combining SME spirit & large cap sophistication
Executing on 2010-13 growth plan
2011
• Improvement occupancy rate standing portfolio
• Strong investment volume of EUR 100m (acquisitions & projects)
• Funded with a healthy mix of debt & equity (55/45)
• Confirmation of Benelux market leadership
2012
• Strategic acquisition in the Netherlands of EUR 105m
• Renewed success of optional dividend
• Letting of projects previously put “on hold”
• Disposal of smaller non-core assets
2013
• Maintaining good operational & financial metrics
• Exploiting market position to source opportunities
• Preparing for next phase
Executing on 2010-13 growth plan (cont’d)
2013 target
2012E
EUR 3.73 (+20%)
EUR 3.60 (+15%)
2011
EUR 3.42 (+10%)
2010
EUR 3.11 (basis)
On track to meet target of 20% EPS growth in 2010-13
Including recent reinforcement of equity base
At a strategic crossroad
2007
EUR 26m
EUR 600m
EUR 400m
2012
2017?
> EUR 50m Net current profit
> EUR 1bn Fair value portfolio
EUR 500m+
Market cap
Disclaimer
Warehouses De Pauw Comm.VA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a closed-end
property investment company, incorporated under Belgian law and listed on Euronext Brussels.
By its very nature, any investment in financial instruments carries substantial risks. Investors are invited to carefully consider the risks, uncertainties
and all other relevant information contained before deciding to invest. These risks, if they actually occur, could adversely impact WDP's business,
results of operations, financial conditions and prospects and thereby the value of the shares and the dividend, and consequently, create a loss to
investors of all or part of their investment. This presentation combined with all the declarations, estimates and forecasts and in general all other
corporate information released by WDP contains selected and summarised information and does not express any commitment or acknowledgement
or creates any right expressed or implied to.
This presentation contains forward-looking information, forecasts and estimates prepared by WDP relating to the expected future performance of
WDP and the market in which WDP operates. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general
and specific, and risks exist that the forecasts, estimates and other forward-looking statements will not be achieved. Investors should be aware that a
number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements. Such declarations, forecasts and estimates are based on various hypotheses and assessments of
known and unknown risks, uncertainties and other factors which seemed sound at the time they were made, but which may or may not prove to be
accurate. Some events are difficult to predict and can depend on factors on which WDP has no control.
This uncertainty is further increased due to financial, operational and regulatory risks and risks related to the economic outlook, which reduces the
predictability of any declaration, forecast or estimate made by WDP. Consequently, the reality of the earnings, financial situation, performance or
achievements of WDP may prove substantially different from the guidance regarding the future earnings, financial situation, performance or
achievements set out or suggested in such declarations, forecasts or estimates. Given these uncertainties, investors are advised not to give undue
weight to these forward-looking statements. Additionally, the forecasts and estimates only apply on the date of drafting this presentation and WDP is
not obliged to update these forecasts or estimates to reflect any changes in its expectations in this regard or any change in the events, conditions or
circumstances on which such forecasts or estimates are based on. WDP makes no representation, warranty or prediction that the results anticipated
by such forward-looking statements will be achieved.
Drivers Benelux logistics market
By Alex Van Breedam (Tri-Vizor)
The Rhine-Scheldt delta
Alex Van Breedam
Preparing products for
European markets
OPBRENGST
FOCUS
Informatiestroom
4PL
Gain
sharing
Strategisch
3PL
Tactisch
Goederenstroom
2PL
1990
Proximity
Unique Value
Proposition of
Logistics
topregion
Kost per
pallet
Operationeel
1995
2000
2005
Know-how &
3PL evolution
Gateways and
Infrastructure
EDC know-how
Attractiveness
The Blue Banana 2008
Source: Cushman & Wakefield 2008
Attractiveness of Europe 2008
Attractiveness of Logistics regions 2019
EXPECTED RANKING OF LOGISTICS REGIONS 2019
TRA NSPORT
SYSTEM
ACCESSI
BILITY
21,875%
31,250%
31,250%
9,375%
3,125%
3,125%
NORD - PAS-DE-CALAIS (F)
6,6
2,3
1,4
1,3
2,8
3,5
2,9
1
3
VLAANDEREN (B)
7,2
2,1
1,5
2,3
3,1
1,5
3,1
2
1
WALLONIE (B)
6,8
2,6
1,4
2,1
2,9
3,2
3,1
3
2
EST (F)
5,8
3,2
1,8
2,4
3,5
3,6
3,3
4
6
SAARLAND (DL)
5,8
3,5
1,8
1,7
2,7
3,3
3,3
5
4
PICARDIE-CHAMPAGNE ARDENNE (F)
5,7
3,7
1,9
2,1
3,4
4,0
3,4
6
12
NORDRHEIN-WESTFALEN (DL)
8,9
2,6
0,9
2,7
3,1
2,9
3,5
7
8
BRUSSELS HOOFDST. GEWEST (B)
9,8
1,9
1,2
4,0
1,5
2,3
3,6
8
7
ZUID-NEDERLAND (NL)
9,0
2,4
1,2
2,8
5,8
2,0
3,6
9
9
RHEINLAND-PFALZ (DL)
7,8
3,4
1,3
2,3
4,0
3,2
3,6
10
10
OOST-NEDERLAND (NL)
7,6
3,2
1,8
2,2
5,9
2,8
3,7
11
11
ILE DE France (F)
9,6
2,0
1,8
3,8
1,6
2,8
3,8
12
5
10,0
2,3
1,9
3,3
5,0
2,1
4,0
13
13
6,3
4,3
2,9
2,2
5,0
2,7
4,1
14
14
13,3
3,3
1,5
3,5
3,0
2,5
4,9
15
15
COSTS
WEIGHT
WEST-NEDERLAND (NL)
NOORD-NEDERLAND (NL)
LUXEMBOURG (GR. DUCHE)
Source: Cushman & Wakefield 2006
SUPPLY
LABOUR
KNOW
HOW
SCORE
TOTA L
RA NKING
2019
RANKING
2006
Preparing products for
European markets
OPBRENGST
FOCUS
Informatiestroom
4PL
Gain
sharing
Strategisch
3PL
Tactisch
Goederenstroom
2PL
1990
Proximity
Unique Value
Proposition of
Logistics
topregion
Kost per
pallet
Operationeel
1995
2000
2005
Know-how &
3PL evolution
Gateways and
Infrastructure
EDC know-how
Attractiveness
Dublin
London
1000 km
500 km
Amsterdam
Cologne
Brussels
Paris
Frankfurt
Prague
Munich
Milan
Preparing products for
European markets
OPBRENGST
FOCUS
Informatiestroom
4PL
Gain
sharing
Strategisch
3PL
Tactisch
Goederenstroom
2PL
1990
Proximity
Unique Value
Proposition of
Logistics
topregion
Kost per
pallet
Operationeel
1995
2000
2005
Know-how &
3PL evolution
Gateways and
Infrastructure
EDC know-how
Attractiveness
Gateways and Infrastructure
Source: European Distribution Report, Cushman & Wakefield, 2008
Transport infrastructure
The TEN-T projects for the coming years
Source: European Commission
Co-modality
Transport infrastructure
ROAD, RAIL AND WATERWAY NETWORK PER
COUNTRY/REGION
D e ns it y in
k m / 10 0 0 k m ²
TABLE
M o t o rwa ys
R a ilwa ys
Inla nd wa t e rwa ys
EU-27
14
50
9
B elgium
57
116
50
Denmark
24
61
0
Germany
35
107
19
Finland
2
19
26
France
20
54
10
Italy
22
55
5
Luxembo urg
44
106
14
Netherlands
69
83
195
A ustria
20
75
5
P o rtugal
17
31
2
Spain
18
29
1
United Kingdo m
15
70
5
Regio n o f Flanders
63
127
80
4
29
1
Sweden
So urce: EC DG TREN and Euro stat
Mainport Gateways
Mainport Gateways
Airport Gateways
FLAP network dominates
in Europe
Source: Airports Council International
Preparing products for
European markets
OPBRENGST
FOCUS
Informatiestroom
4PL
Gain
sharing
Strategisch
3PL
Tactisch
Goederenstroom
2PL
1990
Proximity
Unique Value
Proposition of
Logistics
topregion
Kost per
pallet
Operationeel
1995
2000
2005
Know-how &
3PL evolution
Gateways and
Infrastructure
EDC know-how
Attractiveness
Logistics Service Providers: ranking
■ Ranking of global logistics service providers
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
DHL – $31bn
K&N – $14.9bn
Schenker/Bax – $14bn
UPS SCS – $8bn
Panalpina – $7.2
CH Robinson – $6.6bn
Agility – $4.9bn
Ceva Logistics – $4.6bn
Expeditors – $4.6bn
NYK Logistics – $4.2bn
Logistics Service Providers: typology
REVENUE
FOCUS
Flow of
information
4PL
Gain
sharing
Strategic
3PL
Flow of
goods
Tactical
2PL
Cost per
pallet
Operational
1990
1995
2000
2005
Preparing products for
European markets
OPBRENGST
FOCUS
Informatiestroom
4PL
Gain
sharing
Strategisch
3PL
Tactisch
Goederenstroom
2PL
1990
Proximity
Unique Value
Proposition of
Logistics
topregion
Kost per
pallet
Operationeel
1995
2000
2005
Know-how &
3PL evolution
Gateways and
Infrastructure
EDC know-how
Attractiveness
European Distribution Structures
Evolution for most product types
1990-2000
traditional central EDC structure
2000-...
Central EDC in hybrid transport structure
EDC
Centre for distribution of goods to more than 5 European countries,
providing value added logistics (VAL) activities and services, in
addition to storage and reception of goods.
The Rhine-Scheldt Delta: highest density of European Distribution
Centres
The new industry!
Know-how
% of population fluent in foreign language
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Logistics know-how and
innovation
s
d
lan
Ire
nce
Fra
nm
a
rk
Ne
t he
rlan
ds
e
ag
gu
e
ag
gu
lan
De
l an
n
ei g
n
ei g
r
fo
Be
lgiu
r
fo
m
1
3
Industrial know-how
(strategic sectors,
assembly,Q)
Preparing products for
European markets
OPBRENGST
FOCUS
Informatiestroom
4PL
Gain
sharing
Strategisch
3PL
Tactisch
Goederenstroom
2PL
1990
Proximity
Unique Value
Proposition of
Logistics
topregion
Kost per
pallet
Operationeel
1995
2000
2005
Know-how &
3PL evolution
Gateways and
Infrastructure
EDC know-how
Attractiveness
Schiphol airport & logistics
By Ruud Bergh (SADC)
Your global business hub
■ Logistics development innovation in the Amsterdam Metropolitan
Content
■ About SADC
■ Hub Amsterdam Airport Schiphol
■ Trends
■ Innovation programs
■ Projects and real estate market
■ Conclusions
About SADC
(*) Based on the weighted average number of outstanding shares.
Hub Amsterdam Airport Schiphol
Amsterdam Airport Schiphol
313
49,8 mln
1,5 mln
60.000
destinations
passengers
tonnes cargo
direct jobs
voted best European Airport and winner of Air Cargo
Excellence Award
Source: Schiphol Group, 2011 .
Schiphol: #3 Cargo hub in Europe
Source: Schiphol Group, 2011 .
Logistics in the Netherlands
■ 2011
■ GDP € 40 billion (8,5% of total)
■ 750,000 jobs
■ # 5 World Logistics Performance Index (2012)
■ Ambition the Netherlands
■ # 1 logistics hub in Europe in 2020
Logistics in Amsterdam Metropolitan Area
■ > 400 years logistics expertise
■ 2nd largest cluster in Amsterdam Metropolitan Area (AMA) after IT
■ Airport – Seaport – Greenport- Dataport
■ > 200 – 3PL companies
Logistics: key economic cluster
■ 2011
■ Trade & Logistics 2nd in added value for AMA
■ 180,000 jobs
■ 25,000 companies
■ Ambition AMA
■ Annual growth added value cluster logistics 5%
higher than national average until 2015.
> 200 Logistics service providers in AMA
Global business hub: Fortune500 HQ’s
Trends
Cargo volumes Amsterdam Airport Schiphol
Amsterdam Metropolitan Area:
Logistics productivity
Integration of airport, city and region
Innovation programs
Logistics Corridor
Amsterdam Connecting Trade
■ Spatial economic investment program
■ Integral development of logistics parks
combined with supply chain innovations
■ Ambition: developing Europe’s most innovative
logistics hub
■ HST Cargo: investment € 700 mln.
■ Infrastructure cargo: investment € 200 mln.
HST Cargo Schiphol:
a high speed freight train
■ Alternative for air freight and road transport.
■ Transporting express goods, flowers and perishable goods by high-speed
train to various economic centres and logistical hubs in Europe.
Seamless Connections
■ Freight movements can be planned and executed more efficient by further
digitization in the logistics chain.
■ Leads to better use of existing infrastructure and available capacity.
■ 9 concrete pilot projects aimed at e.g.:
Accelerating: 15 minutes time saving per hour in handling (project E-Link)
Associating: 1 platform for data entry
Advancing: flexible use existing logistics chains and infrastructure
SmartGate Cargo
■ Innovates government inspections, security procedures and logistic processes
Projects & real estate market
Real estate price indications: logistics
■ Mind the difference between office and industrial estates
■ Vacancies: 7,5 % in the Netherlands, AMS 5,5 %, Tilburg 18 %
■ Real estate and prices per m² in AMS and FRA are comparible. LHR is higher.
■ Prices in the Amsterdam Airport Schiphol region, on average € 250 - 320 per m².
■ Primary industrial (warehouse) real estate prices:
AMS: €60 - €110 per m² per year.
Port of Amsterdam: € 50 - € 70 m² per year.
Almere: € 30 - € 55 m² per year.
■ New large scale development possibilities in e.g. Fokker Logistics Park, Schiphol
Logistics Park and A4 Zone West.
Schiphol Logistics Park
Fokker Logistics Park
A4 Zone West
A4 Zone West: concepts
Conclusions
■ Logistics is in the DNA of the region
■ Continuous innovation
■ Development on demand
■ Attractive, affordable and reliable
■ Various choises for logistics development
WDP Netherlands portfolio
By Joost Uwents & Rien Van Ast
WDP Netherlands
Developed Benelux market leaderschip
Through strategic development in second home market the Netherlands
Active in all strategic submarkets offering a wide range of logistics property solutions
Building critical mass
Strong growth achieved via acquisition of Wereldhave NL and Lake Side Portfolio
Local team present supported from the headquarters in Belgium
Solid platform for further growth
Operating under the tax transparent Dutch REIT regime (*)
Access to local funding
(*) In 2010 WDP Netherlands NV obtained the Dutch REIT status,
also known as “Fiscale Beleggingsinselling” (FBI)
Milestones
EUR 350m
Acquisition of Wereldhave NL logistics portfolio Starts partnership with ABN AMRO to access local funding Start of activities though sale & rent back Hazeldonck (Breda)
Acquisition of Univeg portfolio
2001
2002
2003
2004
2005
2006
2007
Opening a local office and
Setting a team in NL
2008
2009
2010
2011
2012E
Tilburg: 1st BREEAM certificate for logistic building in NL Nijmegen: BREEAM “Very Good” certification Obtained Dutch REIT status Evolution investment value of the porfolio
Strategic acquisition of the Lake Side Portfolio
2013
Key statistics at 30.06.2012
EUR 310m
Fair value
98.4%
Occupancy rate
8.2%
EPRA net initial yield
9.2y
Average lease duration (till first break)
Reference player in the NL
■
Omnipresent in the region
■
From acquisitions to developments
■
Strong platform to offer full service solution
■
Development in important niche markets
■
20% of surfaces BREEAM certified
WDP portfolio
Share of Dutch portfolio within overall portfolio
20%
32%
80%
2007
68%
2012E
Full spectrum of activities
Direct acquisitions
Developments
Assets with medium-term
(re-) development potential
Renovations
Redevelopments
Sale & rent back
transactions
Redevelopment project
Alphen aan den Rijn – VT Verkerk & Logistics B.V.
Before
After
Redevelopment project
Alphen aan den Rijn – VT Verkerk & Logistics B.V.
Before
After
Site visits
by Tony De Pauw, Joost Uwents & Rien Van Ast
Site visits
Schiphol
Iron Mountain
Verkerk
Amsterdam
DHL
Utrecht
Alphen aan den Rijn
V&D
Schiphol (Rapid)
Alphen ad Rijn (Iron Mountain)
Alphen ad Rijn (Verkerk)
Nieuwegein (V&D)
Utrecht (DHL)
Schiphol Logistics Park - Schiphol
Development project
Site area
Floor area
Construction year
Lease term
(Incheonweg 7)
15,512m²
11,759m²
2012
Dec 2022 RAPID LOGISTICS B.V.
Alpen aan den Rijn
(J. Keplerweg 2)
Direct acquisition
Site area
Floor area
Construction year
Lease term
21,235m²
15,542m²
2005
Oct 2020 IRON MOUNTAIN NEDERLAND B.V.
Alpen aan den Rijn
(Eikenlaan 32-34)
Redevelopment project
Site area
Floor area
Construction year
Lease term
31,270m²
23,927m²
2012
Jan 2022 VT Verkerk & Logistics B.V.
Nieuwegein
“Het Klooster” (Inundatiedok 34)
Direct acquisition
Site area
Floor area
Construction year
Lease term
42,980m²
44,423m²
2012 (BREEAM certified “GOOD”)
May 2027 V&D B.V.
Utrecht
(Rutherfordweg 1)
High-yield asset with long-term redevelopment potential
Site area
Floor area
Construction year
Lease term
31,270m²
12,600m²
2009
Feb 2014 DHL EXPRESS (NETHERLANDS) B.V.
DTZ logistics market Netherlands
By Leopold Willems
The Dutch market for
distribution centres
Update
August 2012
www.dtz.com
The Dutch market for distribution centres
Eurozone private consumption
Retail spending squeeze leading to changing occupier demand?
Annual Growth %
2.5
2.0
1.5
1.0
0.5
• 1% per annum between
2011 and 2016
0.0
- 0.5
- 1.0
- 1.5
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
• CEE and Nordics
outperforming the Eurozone
with growth of between
2-3% per annum
Source:Oxford Economics
116
The Dutch market for distribution centres
Eurozone performance
Eurozone business & consumer confidence
Exports and imports in the Euro area
% Balance
2
0
Source: CPB World Trade Monitor
Dec-11
Nov-11
Oct-11
Q4-11
Q3-11
Q2-11
Q1-11
Q4-10
Q3-10
Q2-10
Q1-10
Business (LHS)
Exports
Sept-11
-25
Aug-11
-0,5
July-11
-2%
June-11
-20
May-11
0
Apr-11
0%
Mar-11
-15
Feb-11
0,5
Jan-11
2%
Dec-10
-10
Nov-10
1
Oct-10
4%
-4%
-5
Sept-10
1,5
Aug-10
6%
Consumer (RHS)
Imports
Source: Oxford Economics
117
The Dutch market for distribution centres
Recent history: logistics market touches bottom in 2010
Situation 2010:
• Warehouse stock
16,500,000 m²
• Average vacancy 18%
• Exceptional high local
vacancy levels over 30%
• Dangerous cocktail of high
investment pressure,
finance possibilities and
shrinking occupier market
• New developments
abrupt on hold
118
The Dutch market for distribution centres
H1 2012: strong occupier market performance
Market situation mid 2012
Take-up
Quarter
New occupier transactions
(x 1.000 m² warehouse)
2009
2010
2011
• Prospects for H2 2012 remain
downbeat as the economic context is
still uncertain
2012
• Built-to-suit deals remain prominent
Q1
118
159
125
126
• Vacancy rates of Grade A at lower levels
Q2
232
97
327
301
Q3
68
64
130
65
• Speculative development still effectively
on hold
Q4
66
216
347
Q
484
536
929
Annual Σ
• Prime rents have stabilised across the
country, with a small increase expected
during 2012 in core markets
• Secondary market polarisation
5 year take up > 2007: 1.100.000 m² > 2008: 800.000 m² > 2009: 484.000 m² > 2010: 536.000 m² > 2011: 929.000 m²
119
The Dutch market for distribution centres
Occupier market 2012: take-up analysis
geographical spread:
140000
120000
100000
80000
60000
40000
20000
0
• strong dynamics in food, e-commerce, clothing sector
• vacant space at 3rd party logistics players at minimum
• scarcity of grade-A stock in Brabant and Limburg region
• strongest performance beneath Rotterdam-Arnhem line
120
The Dutch market for distribution centres
Occupier market 2011: largest movements
Location
Tilburg
Almelo
Utrecht
B op Zoom
Zaltbommel
Venlo
Roosendaal
Den Bosch
Roosendaal
Amsterdam
Waalwijk
Vlissingen
Oss
Vianen
Bleiswijk
Venray
Breda
Deventer
Venlo
Tilburg
Roosendaal
Born
Rotterdam
Oss
Moerdijk
Veenendaal
Tilburg
Venray
Ridderkerk
Breda
Schiphol
Venlo
Alphen a/d R.
Rotterdam
Tilburg
Heerenveen
Bleiswijk
Occupier
Syncreon
Timberland
Kuehne+Nagel
TNT Fashion
Hitachi data syst.
DSV
DHL
PostNL
Plus 100
PostNL
DocData
Verbrugge Term.
Movianto
Parts Express
PostNL
Woger Trading
Schenker
PostNL
JCL Logistics
Rhenus
Forever Direct
Helly Hansen
Steinweg
Raben
DSV Solutions
J Heebink Transp.
Lidl
Flextronics
BLG Logistics
Biomet
Aramex
Int. Road Ferry
Hoogvliet
Geodis Vitesse
Fellowes
PostNL
Rexel
Branche
3pl
Fashion
3pl
3pl clothing mark.
ICT systems
3pl
3pl
Mail
garden furniture
mail
eCommerce
Transport
Pharma
3pl automot. market
mail
Ecommerce
3pl (Apple)
Mail
3pl
3pl (Unicef)
aloë vera products
fashion
commodities
transport
3pl
transport
food retail
3pl
3pl
healtcare
3pl
ferry operator
Supermarket
3pl
office supplies
Mail
Electronics
existing
/ new/ bts*
Existing
Bts
Bts
New
Bts
Exist./ new
New
Existing
Existing
Redevelopm.
Bts
Existing
Bts
Bts
Existing
New
New
Existing
Existing
New
Bts
New
Existing
Bts
Existing
Existing
Existing
Existing
Existing
New
Existing
Existing
Existing
Existing
Existing
Existing
New
Lessor
Prologis
OVG
Somerset RE
AXA REIM
Kadans
Goodman
Schroders
AJ investments
HP International RE
COD
Roozen van Hoppe
ProDelta
Van de Ven
Van de Ven
Aberdeen
Industrial Securities
Schroders
Chapron
Prologis
CBRE Global Inv.
HVBM
DHG
KBC RE
Raben
Prologis
Private investor
Hansteen
Eurindustrial
HBI/Internos
HVBM
AMB (Prologis)
Private investor
Krol
Schroders
Versteijnen Transp.
Duurzaamheidscentr.
Prologis
Warehouse
surface (sq m)
45.012
40.000
32.500
32.246
30.000
30.000
29.957
25.375
25.000
24.000
20.266
20.200
20.000
20.000
20.000
19.787
19.196
18.000
17.280
17.330
17.000
16.000
15.640
15.400
14.400
13.000
12.115
11.400
11.053
11.000
11.000
10.500
10.052
10.000
10.000
10.000
10.000
Agency
Weenink (DTZ-CBRE)
C&W
DTZ
DTZ (C&W)
JLL
C&W (JLL)
n.a.
RSP
vd Sande (DTZ)
n.a.
vd Zande
De Mik (van Rijk)
n.a.
n.a.
JLL (Hopman&S)
DTZ
DTZ
Thoma
DTZ (CBRE)
Weenink (DTZ)
CBRE
n.a.
DTZ
n.a.
DTZ-Ooms
C&W
DTZ
CBRE
n.a.
DTZ
DTZ (Schipholland-CBRE)
DTZ
DTZ
DTZ (Ooms-CBRE)
n.a.
DTZ
v Weiler (H&S-Ooms-DTZ)
n.a.: not applicable, nog agent involved
121
The Dutch market for distribution centres
Occupier market 2012: new transactions
Location
Rotterdam
Oosterhout
Roosendaal
Alphen a/d Rijn
Schiphol
Venlo
Rotterdam
Venray
Eindhoven
Amsterdam
Limburg area
Wijchen
Venlo
‘s-Heerenberg
Ede
Waalwijk
Waalwijk
Wijchen
Breda
Born
Venray
Almere
Rotterdam
Oostwold
Breda
Tiel
Tilburg
Son en Breugel
Venlo
Occupier
Trade company
Rietveld o.g.
PostNL
Hoogvliet
Rapid Air
Arrow Electronic
Odin warehous.
Ceva
DAF (owner)
Barts
3PL
Nabuurs
Tommy Hillfiger
JCL
Deli Nuts
Mc Gregor
Van Haren
Papyrus
Lidl
Helly Hansen
Woger Trading
Ahold
Opti warehous.
Gout Internat.
Healthcare
Norbert Dentres.
Versteijnen Log.
Rhenus Contract
UPS
Branche
Commodities
Non-food Lidl products
Mail
Food retail
3pl
Electronic Spare parts
Ferro/ non-ferro
3pl to Microsoft
Truck manufacturing
Clothing
Spare parts
Food distribution
Clothing
3pl
Nuts trade
Clothing
Shoes retailer
Paper trade
Retailer
Clothing
Internet sales
Food retailer
Fruit & vegetables
Food supplements
Pharma
3pl
3pl
3pl
3pl
existing
/ new/ bts*
Existing
Existing
Existing
Existing
Bts
Existing
Existing
Existing
Bts
Bts
Existing
Existing
Existing
Bts
Existing
Bts
Bts
Existing
Existing
Existing
Existing
Existing
Existing
Existing
Existing
Existing
Existing
Bts
Bts
Lessor
Bak
Hi-Logistics
CBRE GI
Krol
WDP
WDP
Prologis
Maessen
Paccar Parts
Barts
PLC
Syntrus Achmea
Altera
JCL
Toonen
Roozen van Hoppe
Van Haren
Syntrus Achmea
Pentagoon
DHG
Industrial Securities
DeliXL
DHG
10Heren
Pentagoon
Hansteen
HVBM
Dokvast
Goodman
Warehouse
surface (sq m)
52,000
16,170
15,217
10,209
10,000
15,000
7,254
30,000
26,000
9,000
15,771
29,143
17,400
16,000
8,332
15,000
12,000
12,600
8,445
6,000
8,925
18,000
13,454
10,800
7,040
10,000
8,605
55,000
10,000
Agency
C&W
DTZ
JLL
DTZ
n.a.
C&W
C&W /JLL
JLL
n.a.
n.a.
DTZ
DTZ
JLL
n.a.
DTZ
n.a.
n.a.
DTZ / Den Outer
DTZ
n.a.
DTZ
JLL
n.a.
Vos-Hoving (Starck Bus.)
n.a.
DTZ
n.a.
Weenink, Bossers &F.
n.a.
n.a.: not applicable, no agent involved
122
The Dutch market for distribution centres
Growing demand for warehouses from online retailers
Retailers are adapting their logistics
requirements to meet the growing e-tail
supply chain
It makes distribution systems more
complex
Changing characteristics of location
choice
E-tail driving new real estate design and location criteria
E-tail will grow an average of 6% this
year across Continental Europe
123
The Dutch market for distribution centres
The Netherlands, UK and the Nordics dominate European e-tail
% of people in Europe who ordered goods
or services over the internet for private use
0
%
10
20
30
40
50
60
70
80
CEE some of the greatest
growth predicted, Netherlands
on top of the list
Netherlands
United Kingdom
Supply chain opportunities
existing in E-tail expanding
countries
Nordics
Germany
EU-27
Belgium
CEE
Spain
Italy
2010
2006
Source: DTZ Research
124
Take up 2012 Europe
125
Take up
Take up of logistics units
2010-2011
The Netherlands
126
Take up
Take up in The Netherlands 2011
127
GDP
GDP Growth
Concentrating in N.E. Europe
Slowing down in S.W. Europe
128
The Dutch market for distribution centres
European investments spectrum
Prime logistics yields in Europe
(Q4 2011) and yields shift
expected in 2012-2016
• logistics real estate attractive asset
Prime yield
5.75% - 6.99%
7.00% - 7.99%
8.00% - 8.99%
9.00% - 10.50%
Yield shift (2011-2016)
-75 to -26 bps
-25 to 25 bps
26 to 50 bps
class
• prime yields stabilising in mature
markets, elsewhere compression slows
Helsinki
Oslo
Tallinn
Glasgow
Vilnius
Hamburg
Dublin Manchester
Birmingham
Rotterdam
London (Heathrow)
Antwerp
Brussels
• investors not only keen on lease length
Berlin
Frankfurt
Warsaw
Prague
Paris (IDF)
and cash flow: tenant solvancy, location
strength and technical quality of the
premises effect yields more than ever
Budapest
Lyon
Milan
Marseille
Barcelona
Madrid
Source : DTZ Research, ESRI
129
The Dutch market for distribution centres
2011 Volume of investments transactions remains well
€Bn
18
12%
Europe:
10%
• €5.2 billion invested in H2-2011
16
14
12
8%
– broadly similar to H1-2011
• Logistics sector share of the
10
6%
8
6
4%
4
2%
2
0
0%
investment market stable at 10%
• Private property vehicles
dominate the market with a
market share of 46%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
H1
H2
Share of logistics investment (RHS)
Volume of €400 million of Dutch logistics investments transacted in 2011
130
Investments
Netherlands 2003-2011
Property Investments
Percentage in Logistics
131
The Dutch market for distribution centres
Investment market
Logistics Investment transactions 2011-2012
Location/ portfolio
Purchaser
Vendor
Lessee
C1000
Ede
W.P. Carey
ProDelta
C1000 Vastgoed C1000
Alecta
Kuehne+Nagel
Express portfolio
WDP
Wereldhave
Maasvlakte
Dudok
Moerdijk
Size
Lease
period
Volume
Agent(s)
200,000 sqm EUR 157 mln.
24,000 sqm EUR 13 mln.
15
4
DTZ
CBRE
DHL, Iron Mountain
75,000 sqm EUR 39.25 mln
4
DTZ
Adidas
Adidas
60,000 sqm EUR
17 mln.
2
JLL
DEKA
DSV
DSV
56,300 sqm EUR
22 mln.
15
C&W
Schiphol Southeast
ACRE Fund
ING REIM
Multi-user site
10,065 sqm EUR 7.3 mln.
3
DTZ
Waalwijk
ABN-AMRO
Spar
Spar
26,200 sqm EUR
23 mln.
15
Savills
Venlo
Aspen RE
Alecta
Tommy Hilfiger
44,705 sqm EUR 23.8 mln.
8
CBRE
Tilburg
DEKA
Somerset RE
Rhenus
34,940 sqm EUR 26.2 mln.
10
C&W
Moerdijk
Peute
Bouwfonds reim Lidl, Wincanton
23,000 sqm EUR
10 mln.
3
CBRE-DTZ
Waalwijk
Prologis
Roozen v Hoppe DocData
21,860 sqm EUR 13.5 mln.
5
Weenink
Moerdijk
ING REIM
HDG Mansur
Hudig van der Helm
21,223 sqm EUR 13.6 mln.
6,5
JLL-DTZ
Moerdijk
Dudok
Zublin
Delta Marine Term.
50,000 sqm EUR
n.a.
C&W-CBRE-JLL
Moerdijk
S&H Tyres
Bouwfonds reim Gondrand
2
CBRE-DTZ
Lakeside portfolio
WDP
Van de Ven
Various
x mln.
9,850 sqm EUR 2.75 mln.
150,000 sqm EUR 105 mln.
12,5
JLL
132
133
Succes factors Logistics Buildings
● Single-story rectangular building
● Building height 12 m
● Column spacing >12.5 m x 25 m
● Design load-bearing capacity of floor > 5,000 kg/m2
● > 1 ramp for 1,000 m² of warehouse space
● Two-sided access in the case of cross docks
● Maneuvering apron > 2 x 17,5 m wide
● Docking over left hand shoulder
● Dividable for multiple users
● Ceiling mounted ESFR Sprinkler
● Direct Gas-fired heaters
● Site fully fenced
● Sufficient parking space for cars, trucks and trailers
● Office space 5% - 10%
● 45% - 60% of site built, rest paved
● minimum size of ca10,000 m²
134
The Dutch market for distribution centres
The next 6 months6.
Challenges Occupational Markets
• Economic context remains uncertain,
especially in Eurozone
• Opportunities exist as portfolio optimisation
drives the corporate agenda
• Vacancy rates of Grade A stock in direction
of scarcity
Capital Markets
• Security of rental income is critical
• Eurozone or non-Eurozone
investment?
• Logistics increasing its asset
share?
• Balancing volume of new development land
at municipalities
• Flexibility in terms and conditions versus
income securitisation and long commitment
• Finance possibilities continue to be too
limited
135
The Dutch market for distribution centres
In-depth knowledge in a strong network
Definitely. DTZ Zadelhoff
136