Press release
Wednesday, 27 August 2008, 7a.m.
HALF-YEARLY FINANCIAL REPORT OF THE MANAGER
FOR THE PERIOD 01/01/2008 TO 30/06/2008
REGULATED INFORMATION1
NET CURRENT PROFIT2 OF 13.9 MILLION IN THE FIRST HALF OF THE YEAR WAS
HIGHER THAN FORECAST; GROSS INTERIM DIVIDEND OF 1.41 EURO PER SHARE
92% OF THE 93 MILLION EURO PROJECTS ARE CURRENTLY PRE-LET FOR THE
SECOND HALF OF 2008
Closed-end real estate investment company WDP (Euronext: WDP) had a net current profit
of 13.9 million euros (before allowance for the result on the portfolio and application of the
IAS 39 rules) in the first half of 2008. WDP saw its profits rise slightly more than forecast,
confirming the higher projected gross dividend for 2008 of 2.94 euro per share. WDP will
follow its usual custom of distributing a gross interim dividend on 3 September 2008 of 1.41
euros (1.20 euros net per share). The portfolio value3 rose in the first half of 2008 to 688.70
million euros. The Net Asset Value4 per WDP share amounted to 37.04 euros per share at 30
June 2008. The occupancy rate5 remained high at 98.5%.
1. INTERIM MANAGEMENT REPORT
The net current profit for the first six months of the year was slightly higher than forecast
In the first six months of 2008, WDP’s net current profit was 13.9 million euros (before allowing
for the result on the portfolio and application of the IAS 39 rules). This is an increase of 11.5% as
compared with the 12.5 million euros for the first half of 2007. WDP therefore again performed
better than the expectations as published in the press release of February 20th 2008.
1
This half-yearly financial report has to be read together with the half-year report which is made in accordance with IAS 34
following the RD of November 14th 2007. You can find this half-year report on www.wdp.be.
2
Previously, the operating profit.
3
The portfolio value derives from property investments and development projects.
4
The material asset value is the equity capital per share based solely on the estimated value of the individual properties and
is not a valuation of WDP in its entirety.
5
The occupancy rate is calculated by dividing the rental value of let surface area by the rental value of the rentable surface
area. Projects under construction and/refurbishment are not included in the calculation.
The current profit per share for the first half year amounted to 1.62 euros, as compared with 1.45
euros for the same period in the previous year. This rise was largely due to the growth of the profit
on property of more than 28% as a result of the continuing pursuit of WDP’s strategic growth plan.
Details of certain other key figures from the balance sheet and income statement at 30 June
2008
Net profit on property6
The profit on property was more than 28% higher than for the same period in the previous year.
This derived from the higher occupancy rate for the portfolio, indexation of a number of current
leases and, of course, the ongoing development of the portfolio (including the Univeg projects),
which continued to expand in the first six months of the year with, inter alia, delivery of the
property in Grimbergen and the inauguration of the first solar-energy power station.
Property costs and other overheads amounted to 2.5 million euros, up 19.9% as compared with the
same period in the previous year. This was a consequence of the growth in the portfolio, the
corresponding reorganisation of the internal structure and an increase in staff required for future
growth. The operating margin remained unchanged at 88.9%.
The net profit on property for the first six months of 2008 amounted to 19.7 million euros.
Financial result (excluding the IAS 39 results)
The financial result for the first half of 2008 fell to - 5.5 million euros. This was the result of the
investments made by WDP in 2007 that were financed in full by additional debt. It also included a
net unrealised foreign exchange gain of 0.5 million euros on the financing of activities in the Czech
Republic.
Result for the portfolio
The result for the portfolio was - 0.45 million euros, or -0.05 euros per share, in the first six months
of 2008. This was due to the limited losses seen in the Netherlands and France which were
compensated by the realisation of a surplus of 1.5 million euros in the second quarter on the
delivery of the property in Grimbergen. The value of the portfolio in Romania and the Czech
Republic remains unchanged.
Result after application of the IAS 39 rules7
The result after application of the IAS 39 rules was 7.8 million euros. As a non-cash item, it is
reported in the financial result and shown separately in the income statement. The positive result is
due to the rise in market value of interest-rate hedging instruments held in the first half year.
6
Previously the operating result.
The impact of the IAS 39 rules is calculated on the basis of the mark-to-market (MtM) value of the interest-rate hedging
instruments held. This latent surplus/loss is reported in the financial result and indicated separately in the income statement.
7
Net Asset Value
The Net Asset Value per WDP share (before profit distribution) was 37.04 euros at 30 June 2008.
Gearing
The gearing, based on IFRS rules (equity capital divided by the dividend), rose to 54.33% at 30
June 2008, as compared with 51.74% at 31 March 2008.
Occupancy rate again remained unchanged at 98.5% at 30 June 2008
The occupancy rate for the WDP portfolio continued to be high, equating to 98.5% for the first six
months of 2008. In the second half of 2008, no more than 23,000 square meters of property in the
current portfolio will fall vacant.
WDP is currently in negotiation with existing or potential new lessees for each of these properties.
Furthermore, new projects, with a total investment value of 93 million euros, will be completed in
the second half of 2008, and notably the projects in Aarschot, Genk I, Willebroek (including the
second solar panel installation) and Zele in Belgium, acquisitions in Raamsdonksveer and Veghel
in the Netherlands and Seclin (2/3) in France. With regard to the property in Seclin, WDP has been
able, in the meantime, to let 8,000 m2, with 2/3 of that property being pre-let before building works
start. Furthermore, WDP will be completing Phases 1 and 2 of its solar panel project in the second
half of 2008.
To date, a total of 92% of the projects still to be completed in 2008 have been pre-let.
The portfolio value rose to 688.70 million euros at 30 June 2008
The market value of WDP’s property portfolio, based on fair value8 under IAS 40 rules, was jointly
valued by independent property experts Cushman & Wakefield and Stadim at 688.70 million euros
at 30 June 2008, up on the figure of 643.6 million year at 31 March 2008.
The growth in the portfolio of over 45 million euros as compared with the first quarter is the result
of continuing implementation of the investment plan together with the development projects for the
Genk, Sint-Niklaas and Willebroek sites in Belgium, the Ridderkerk and Venlo sites in the
Netherlands, and Seclin in France
In total, the portfolio generated a gross rental yield of 7.17%.
8
For full details of the valuation method used, please refer to the BEAMA press release of 6 February 2006:
http://www.beama.be/content/index.php
Gross interim dividend of 1.41 euros per share
WDP will, as usual, pay an interim dividend for the first six months of the year, this time of 1.41
euros per share (1.20 euros net), an increase as compared with the (gross) interim dividend for the
first six months of 2007, which amounted to 1.29 euros per share. The interim dividend will
become payable on 3 September 2008 through the financial institutions concerned.
WDP is expanding its portfolio further through strategic land bank in Romania
As part of its strategic growth plan, WDP opted in 2007 to start up activities in Romania. WDP
launched those activities in summer 2007 by acquiring of 5 plots, with a total surface area of almost
950,000 m², split between three strategic locations close to the capital, Bucharest, namely sites
along the main highway to Constanta, Pitesti and Ploiesti. WDP is now adding three new plots at
Brasov, Constanta and Pitesti, the total acquisition price being 12.5 million euros. This brings to the
total land banked in Romania to almost 2,000,000 m2.
WDP expects to be granted its first building permits in Romania in autumn 2008. Work will begin
after the winter on the construction of a first project of 30,000 m2 on the first of the plots purchased
in Ploisti and a second project of 10,000 m2 in Fundulea, on the Constanta highway.
Outlook for 2008: WDP is putting in place a framework for further growth
Projects amounting to a total of 93 million euros are to be completed for the second half of 2008.
There will be 110 million euros in property by 2009, of which 70 million euros have been
committed to date for the properties in Courcelles I and Nijvel in Belgium, Raamsdonksveer,
Ridderkerk and Venlo in the Netherlands and Seclin (1/3) in France. To date, 54% of these project
have been pre-let. Furthermore, 39 million euros have been set aside for the investments scheduled
for the projects in Libercourt in France and Aricestii and Fundulea in Romania, depending on
demand.
For 2010 and thereafter, investments amounting to 140 million euros are planned, of which 15
million euros have been committed to date for the pre-let property in Sint-Katelijne-Waver.
Other investments are planned for 2010 and thereafter for properties in Courcelles II, Genk II,
Libercourt II, Sint-Niklaas and Trilogiport Liège in Belgium and Neprevazka in the Czech
Republic, depending on market demand. WDP then also plans to implement Phase 3 of the solar
panel project.
To date, WDP’s gearing is 54.33%. If the projects in the pipeline referred to above for the rest of
2008 and 2009 are all fully implemented by the end of 2009, including the projects for which
commitments have not yet been made, the gearing will then rise further to 64%. This gearing is
based on the current valuation of the portfolio not taking into account any potential capital gains on
project developments and profit reservation. To date, WDP disposes over sufficient short and long
term credit facilities to finance all the aforementioned projects planned until the end of 2009.
WDP opts for further growth. WDP wants to grow further by identifying new profitable projects
and continuing to anticipate potential growth opportunities in the different business areas. With a
higher gearing expected between now and 2009, which is legally limited at 65%, WDP will also be
assessing the measures that might be taken to expand its capital base in autumn 2008. Among the
options being considered by WDP are contributions of property in return for shares, convertible
loans and a capital increase in cash.
The current growth forecasts and the exceptional occupancy rate, confirm WDP’s forecast of a rise
in the net current profit for 2008 to a minimum of 28 million euros. This net current profit would
give a profit per share of 3.25 euros. At a pay-out ratio of 90%, a gross final dividend of 1.53 euros
per share is projected, after distribution of the interim dividend.
This half-yearly financial report has to be read together with the half-year report which is made
in accordance conform IAS 34 following the RD of November 14th 2007. You can find this halfyear report on www.wdp.be.
For more information, please contact:
Joost Uwents, WDP, tel: +32 (0)52 338 402; [email protected] or
Nathalie Verbeeck, Citigate, tel. +32 (0)2 713 07 32; [email protected]
You can find more information about WDP on its website: www.wdp.be.
The presentation for the press conference today, 27 August 2008, will be available from 12:00 on
the WDP website under the sub-section ‘Presentations’ under the ‘Investor Relations’ heading.
This presentation provides more detailed information about the WDP’s results and plans.
Pictures of the various WDP sites are also shown on that website.
Closed-end real-estate investment company WDP constructs, develops and lets semi-industrial and logistics
property (warehouses and offices). WDP’s property portfolio amounts to a surface area of almost 1 million m2.
This international portfolio of semi-industrial and logistics buildings is spread over 80 sites at prime logistical
locations for storage and distribution in Belgium, France, the Netherlands and the Czech Republic. Furthermore
WDP disposes of a land bank in Romania of almost 2 million m². WDP is listed on the Brussels and Paris
Euronext market and has a market capitalisation of approximately 350 million euros. More information about
WDP can be found at www.wdp.be.
2. CONDENSED FINANCIAL STATEMENTS
Key figures HY12008 – WDP
Consolidated results (EUR thousand)
2008.JUN
2007.DEC
2007.JUN
Net profit on ordinary activities
Net rental result
Other operating income/charges
Property result
Property costs
Corporate overheads
Net property result
Financial result, excl. IAS 39 result
Taxes payable on net operating result
Net profit from ordinary activities
Result for the portfolio
Changes in fair value of property investments (+/-)
Gains/losses on disposals of investment property (+/-)
Latent tax liabilities
Result for the portfolio
IAS 39 result
Revaluation of financial instruments (IAS 39 impact)
Latent tax liabilities on revaluation of IRSs
IAS 39 result
NET PROFIT
Net profit from ordinary activities/share
Result for the portfolio/share
Proposed dividend distribution
Dividend distribution percentage (compared with net profit ordinary activities)
Number of shares at the end of the period
Gross dividend/share
Net dividend/share
Growth MAV/share (after profit distribution)
22,001.85
184.57
22,186.42
-637.08
-1,823.84
19,725.51
-5,478.24
-362.23
13,885.03
38,348.13
-71.44
38,276.69
-1,389.44
-2,675.48
34,211.78
-7,691.24
-276.21
26,244.32
17,205.98
46.37
17,252.35
-719.59
-1,309.62
15,223.13
-2,539.84
-229.24
12,454.04
-2,241.15
-4.56
1,801.80
-443.91
27,300.54
-930.17
-238.82
26,131.54
11,920.64
-158.96
-674.00
11,087.68
7,885.12
-124.18
7,760.94
21,202.06
689.16
131.04
820.20
53,196.06
4,878.82
.00
4,878.82
28,420.54
1.62
-0.05
12,130.90
87.37%
8,592,721
3.05
3.04
23,351.98
88.98%
8,592,721
1.45
1.29
11,119.99
89.29%
8,592,721
1.41
1.20
-0.47
2.72
2.31
3.51
1.29
1.10
2.01
Consolidated balance sheet (EUR thousands)
NAV*/share before profit distribution for current financial year
NAV*/share after profit distribution for current financial year
Share price
PREMIUM/DISCOUNT on price compared with NAV* before profit distribution
GEARING ** (dividend as debt)
GEARING ** (dividend as equity)
Fair value of the portfolio
37.04
35.63
39.05
5.42%
55.96%
54.33%
688.70
36.10
34.69
45.50
26.04%
52.32%
50.47%
614.10
34.48
33.19
47.65
38.20%
41.88%
39.69%
464.02
NAV = Net Asset Value or Material Asset Value (MAV) = Equity capital
For the precise gearing calculation formula refer to the Royal Decree of 21 June 2006.
Intangible fixed assets
Investment properties
Development projects
Other tangible fixed assets
Financial fixed assets
Financial leasing receivables
Trade debtors receivable and other fixed assets
Deferred tax assets
Fixed assets
180.81
105.00
114.00
600,485.47 570,794.00 448,301.00
88,210.41
43,310.00
15,719.00
4,333.98
1,090.00
976.00
32,188.20
9,598.84
9,706.95
316.77
355.00
393.00
319.48
470.16
467.05
769.07
665.00
687.00
726,804.19 626,388.00 476,364.00
Assets acquired or constructed for resale
Financial leasing receivables
Trade debtors receivable
Taxes receivable and other current assets
Cash and cash equivalents
Deferrals and accruals
Current assets
TOTAL ASSETS
750.00
2,476.00
.00
75.12
73.00
69.00
5,160.35
10,057.00
4,767.00
3,395.89
13,379.00
20,520.00
2,305.82
9,015.00
2,529.00
4,524.24
2,062.00
3,301.00
16,211.42
37,062.00
31,186.00
743,015.61 663,450.00 507,550.00
Capital
Reserves
Profit
Impact on fair value of estimated transfer duties and transfer costs
Exchange differences
Minority interests
Capital and reserves
68,913.37
68,913.00
68,913.00
219,421.33 219,449.00 197,031.00
47,566.35
38,202.00
41,583.00
-19,030.35 -18,662.00 -12,334.00
969.79
1,857.00
1,080.00
441.00
441.00
.00
318,281.48 310,200.00 296,273.00
Long-term liabilities
Short-term liabilities
254,449.92
170,284.21
424,734.13
743,015.61
Liabilities
TOTAL LIABILITIES
219,118.00
59,776.00
134,132.00 151,501.00
353,250.00 211,277.00
663,450.00 507,550.00
Balance sheet and income statement at 30 June 2008
Balance sheet - Assets
Notes on the
accounts
FIXED ASSETS
726,804
626,388
Intangible fixed assets
181
105
Investment properties
600,485
570,794
Project development
88,210
43,310
4,334
1,090
32,188
9,599
Financial leasing receivables
317
355
Trade debtors receivable and other fixed assets*
320
470
Deferred tax assets
769
665
16,212
37,062
750
2,476
75
73
Trade debtors receivable
5,160
10,057
Taxes receivable and other current assets
3,396
13,379
Cash and cash equivalents
2,306
9,015
Deferrals and accruals
4,525
2,062
743,016
663,450
Other tangible fixed assets
Financial fixed assets*
CURRENT ASSETS
Assets acquired or constructed for resale
Financial leasing receivables
TOTAL ASSETS
*
6/30/2008
12/31/2007
EUR (x1.000) EUR (x1.000)
In the yearly report of 2007 the fair value of the IRS's was mentioned
under the account 'Tradedebtors receivable and other current asset' for an amount of 9,599,000 EUR.
On 30/06/2008 these were redirected to the account 'Financial fixed assets',
following the RD of June 21st 2006.
Before redirection the account 'Tradedebtors receivable and other current asset'
amounted to 10.068.576 EUR. The 'Financial fixed assets' were 0.
Balance sheet - Liabilities
Notes on the
accounts
CAPITAL AND RESERVES
6/30/2008
12/31/2007
EUR (x1.000) EUR (x1.000)
318,281
310,200
317,840
309,759
68,913
68,913
219,422
219,449
47,566
38,202
-19,031
-18,662
Exchange differences
970
1,857
Minority interests
441
441
LIABILITIES
424,735
353,250
I.
254,450
219,118
1,495
1,486
236,163
202,445
6,679
3,911
Deferred tax liabilities
10,113
11,276
Short-term liabilities
170,285
134,132
Short-term financial debts
153,638
120,151
12,724
10,580
Other short-term liabilities
1,159
1,640
Deferrals and accruals
2,764
1,761
743,016
663,450
I.
Equity capital allocated to the parent company
shareholders
Capital
Reserves
Profits
Application of fair value rules to estimated transfer duties
and transfer costs on the hypothetical disposal of
investment property and of the valuation of
development projects at cost price
II.
Long-term liabilities
Provisions
Long-term financial debts
Other long-term financial liabilities
II.
Trade debts payable and other short-term debts
TOTAL LIABILITIES
N o te s o n th e
a c c o u n ts
R e n ta l inc o m e
6 /30 /2 0 08
6/3 0 /2 00 7
E U R (x 1 . 0 0 0 ) E U R ( x 1 . 0 0 0 )
2 2 ,0 78
1 7 ,26 8
-76
-6 2
2 2 ,0 02
1 7 ,20 6
R e c o v e re d re n t a l c h a rg e s n o rm a ll y p a y a b l e b y
te n a n t s o n l e t p ro p e r t ie s
2 ,3 34
2 ,08 7
R e n t a l c h a rg e s a n d t a x e s n o r m a l l y p a y a b l e b y
te n a n t s o n l e t p ro p e r t ie s
-2 ,5 23
- 2 ,22 3
3 74
18 2
2 2 ,1 87
1 7 ,25 2
T ec h n ic a l co s t s
-4 73
- 47 9
C o m m er c ial c o st s
-1 98
- 12 1
33
- 12 0
0
0
-6 37
- 72 0
2 1 ,5 50
1 6 ,53 2
-1 ,8 24
- 1 ,31 0
1 9 ,7 26
1 5 ,22 2
-5
- 15 9
-2 ,2 41
1 1 ,92 1
1 7 ,4 80
2 6 ,98 4
F in a n c ia l in c o m e
1 6 ,2 29
7 ,63 3
I n t e re s t c h a rg e s
-6 ,6 69
- 3 ,36 7
O th e r f i n a n c i a l c h a r g e s
-7 ,1 53
- 1 ,92 6
2 ,4 07
2 ,34 0
1 9 ,8 87
2 9 ,32 4
1 ,3 15
- 90 3
2 1 ,2 02
2 8 ,42 1
8 ,59 2 ,7 21
8,5 9 2 ,72 1
2 .47
3.3 1
2 1 ,2 02
0
2 8 ,42 1
0
R e lat e d r e n t a l ex p e n s e s
N ET RENTAL RES ULT
O th e r l e t ti n g -r e la t e d i n c o m e a n d e x p e n d i tu re
P R O PE R TY R ESU LT
P ro p e rt y m a n a g e m e n t c o s t s
O th e r p ro p e r t y c o s t s
P R O PE R TY C O ST S
O P E R A T IN G R E S U L T F O R P R O P E R T Y
C o rp o r a t e o v e r h e a d s
O P E R A T IN G R E S U L T B E F O R E R E S U L T F O R T H E P O R T F O LIO
G a in s o r l o s s e s o n d i s p o s a l s o f in v e s tm e n t p ro p e rt y
C h a n g e s i n fa i r v a l u e o f p r o p e rt y i n v e s t m e n t s
O P E R A T IN G R E S U L T
F IN A N C IA L R E S U LT
R ESULT BEFO RE TA XES
T A X L I A B I L I T IE S *
N E T P R O F IT
N UMB ER O F SHAR ES
N E T P R O F IT P E R S H A R E ( E U R )
A L L O C A T IO N T O S H A R E H O L D E R S W I T H I N T H E G R O U P
M IN O R ITY IN T E R E S T S
*
I n t h e ye a r ly r e p o r t o f 2 0 0 7 t h e ' d e f e r r e d t a x e s ' o n t h e r e s u lt o n t h e p o r t f o lio w e r e p a r t o f t h e s e c t io n
P r o p e r t y v a lu a t io n v a r ie t y in th e f a ir v a lu e ' f o r a n a m o u n t o f - 6 7 4 . 0 0 0 E U R .
O n 3 0 / 0 6 /2 0 0 8 t h e s e w e re r e d ir e c t e d t o t h e a c c o u n t 'T a x e s ' , f o llo w in g th e R D o f J u n e 2 1 s t 2 0 0 6 .
B e f o re r e d i re c t io n th e a c c o u n t 'T a x e s ' a m o u n t e d t o - 2 2 9 . 2 4 4 E U R .
Auditor’s report9
WAREHOUSES DE PAUW SCA
LIMITED REVIEW REPORT ON THE CONSOLIDATED HALF-YEAR
FINANCIAL INFORMATION FOR THE SIX MONTHS PERIOD ENDED 30 JUNE
2008
To the Board of Directors
We have performed a limited review of the accompanying consolidated condensed balance sheet,
condensed income statement, condensed cash flow statement, condensed statement of changes in
equity and selective notes (jointly the “interim financial information”) of WAREHOUSES DE
PAUW SCA (“the company”) and its subsidiaries (jointly “the group”) for the six months period
ended 30 June 2008. The Board of Directors of the company is responsible for the preparation and fair
presentation of this interim financial information. Our responsibility is to express a conclusion on this
interim financial information based on our review.
The interim financial information has been prepared in accordance with IAS 34, “Interim Financial
Reporting” as adopted by the EU.
Our limited review of the interim financial information was conducted in accordance with the
recommended auditing standards on limited reviews applicable in Belgium, as issued by the
”Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren”. A limited review consists of
making inquiries of group management and applying analytical and other review procedures to the
interim financial information and underlying financial data. A limited review is substantially less in
scope than an audit performed in accordance with the auditing standards on consolidated annual
accounts as issued by the ”Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren”.
Accordingly, we do not express an audit opinion.
Based on our limited review, nothing has come to our attention that causes us to believe that the
interim financial information for the six months period ended 30 June 2008 is not prepared, in all
material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
Diegem, 21 August 2008
The Statutory Auditor
DELOITTE Bedrijfsrevisoren / Reviseurs d’Entreprises SC s.f.d. SCRL
Represented by Rik Neckebroeck
9
Condensed Financial statements have been made in accordance with IAS 34 and have been published in the half-yearly
financial report on the website. The Auditor has performed a limited review of these financial statements and has delivered
the report above.
3. STATEMENT OF THE HALF-YEARLY FINANCIAL REPORT
In accordance with article 13 § 2 of the RD of 14 November 2007, the manager of WDP NV,
represented by its permanent representative and managing director Tony De Pauw, declares that,
according to its knowledge:
a) the condensed interim financial statements established on the basis of the principles for financial
reporting in accordance with IFRS and in accordance with IAS 34 “Interim financial reporting” as
accepted by the European Union, give a true description of the equity, the financial situation and the
results of WDP and the companies recorded in the consolidation.
b) the interim management report gives a true statement of the main events which occurred during
the first six months of the current financial year, their influence on the condensed financial
statements, the main risk factors and uncertainties regarding the remaining months of the financial
year, as well as the main transactions between related parties and their possible effect on the
condensed financial statements if these transactions should have a significant importance and were
not concluded at normal market conditions.
In these condensed interim financial statements the same principles for financial reporting and
calculation method are applied as those applied in the consolidated financial statements at 31
December 2007.