Breaking Down Warehouses De Pauw Financial Health: Key Insights for Investors

Step into the operational heartbeat of Warehouses De Pauw, a logistics real estate leader active across six European countries and steward of more than 6.3 million square meters of logistics space, where a mission to build a sustainable shell around the logistics process meets a vision of "warehouses with brains" that sit at the center of clients' supply chains; driven by a record €300 million revenue in 2023-a 20% increase from the prior year-and a portfolio with over 75% LEED-certified properties, WDP translates core values of integrity, customer focus, sustainability, innovation, collaboration and vital engagement into smart, technology-enabled developments, long-term partnerships and employee-led entrepreneurship that together power durable value for clients and shareholders.

Warehouses De Pauw (WDP.BR) - Intro

• Operational footprint: 6 countries (Belgium, Netherlands, Luxembourg, France, Germany, Romania)
• Total logistics space: 6.3+ million m²
• Primary activities: development, leasing, asset management, and customer-tailored logistics solutions

• Provide high-quality, sustainable logistics real estate that enables customers to optimize their supply chains.
• Build long-term partnerships through flexible, tailor-made solutions and reliable asset management.
• Deliver consistent, predictable returns for investors while advancing environmental and social responsibility.

• Be the partner of choice for logistics real estate in Europe's primary and secondary logistics corridors.
• Lead the sector in sustainable development and operational excellence, integrating innovations that reduce carbon footprint and increase efficiency.
• Expand a resilient, diversified portfolio that balances stable rental income with scalable development opportunities.

• Quality - Delivering premium, fit-for-purpose buildings and services to customers.
• Sustainability - Prioritizing LEED and other green certifications; over 75% certified by 2023.
• Customer Focus - Long-term partnerships, bespoke solutions, high retention rates.
• Innovation - Investing in smart logistics, energy efficiency, and digital asset management.
• Integrity - Transparent governance, prudent financial management, and stakeholder accountability.

• Financial: €300M revenue in 2023, driven by growth in rental income and successful developments (+20% YoY).
• Operational: 6.3M+ m² portfolio concentrated on major corridors to maximize occupier demand and rental stability.
• ESG: >75% of properties LEED-certified; continued investment in energy-saving measures and sustainable construction.
• Growth: Focus on selective pipeline developments and geographic expansion within existing markets to capture logistics demand.

Warehouses De Pauw (WDP.BR) - Overview

• High-quality logistics solutions designed to integrate with clients' supply chains and reduce total cost of logistics.
• Commitment to sustainability - energy-efficient building shells, on-site renewables, and circular construction practices.
• Investment in smart warehouses - automation-ready layouts, digital building management, and IoT-enabled operations.
• Entrepreneurial development approach - proactive land-banking, bespoke build-to-suit projects, and flexible letting strategies.
• Employee engagement - multidisciplinary teams of real estate, technical, ESG and client-facing experts driving execution.

• Sustainability - measurable targets for energy, carbon and circularity in projects and portfolio operations.
• Client-centricity - tailoring design and service to the operational needs of logistics users.
• Entrepreneurship - continuous innovation in product, development and market approach.
• Quality & Safety - building to high technical and safety standards to protect goods and people.
• Transparency & Governance - disciplined capital allocation, reporting and stakeholder engagement.

• Sustainable shells: specification standards for insulation, LED lighting, PV-ready roofs, and BREEAM / DGNB / EPC targets for new builds and refurbishments.
• Smart warehouses: roll-out of digital building management systems, pre-provision of high-power electrical feeds for EV charging and automation, and connectivity-ready designs.
• Entrepreneurial deal-making: active land banking, flexible build-to-suit contracts, and partnerships with logistics operators to secure long-term leases.
• Dedicated team investments: internal project development, technical asset management and ESG specialists to reduce vacancy cycles and improve tenant retention.

• Scale and densify a modern logistics portfolio in key European corridors while controlling environmental impact.
• Embed smart-ready design across all new developments to meet tenant automation and digitalization needs.
• Accelerate rooftop solar and energy efficiency measures to lower total portfolio emissions and operating costs.
• Maintain financial discipline - optimize LTV, diversify funding sources, and preserve access to capital for growth.

Warehouses De Pauw (WDP.BR) - Mission Statement

• Provide smart logistics real estate that integrates automation, IoT and data-driven services to increase client throughput and reduce operational waste.
• Deliver resilient, long-term partnerships by aligning lease structures, capex programmes and site design with customers' growth plans.
• Embed sustainability in every project - minimizing carbon intensity, improving energy efficiency and enabling circular logistics solutions.
• Create shareholder value via disciplined asset rotation, yield-accretive development and active portfolio management.

• Smart infrastructure: retrofits and new-builds equipped for automation, robotics and facility-level intelligence platforms.
• Customer-centricity: flexible space design, multi-modal access and service layer offerings (racked storage, cross-docking, cold chain).
• Sustainability targets: energy performance contracts, rooftop PV programmes and EPC upgrades across the portfolio.

• Smart retrofits: converting legacy warehouses to higher-clearance, sensor-equipped facilities to accept automated AGV/robotics systems and increase usable throughput per square metre.
• Sustainable developments: targeting BREEAM/LEED certifications and installing rooftop PV to lower net energy intensity and operational costs for tenants.
• Client growth programmes: long-term index-linked leases with upgrade options, enabling customers to scale without disruptive relocations.

• Capital allocation balances yield-accretive developments with selective portfolio disposals to recycle capital into higher-growth corridors.
• Maintaining conservative leverage (net LTV in low 30%s) to preserve investment-grade financing capacity for development and tenant co-investment.
• Dividend policy: stable distributions supported by recurring rental cash-flows and disciplined cover ratios.

• Tenant productivity gains enabled by smart facilities (throughput per sq.m, order turnaround time).
• Energy intensity (kWh/sq.m) and absolute CO2 emissions - tracked per asset and consolidated.
• Occupancy and retention rates, average lease duration, and tenant satisfaction scores.
• Return on invested capital for developments and yield on completed projects vs. market cap rates.

Warehouses De Pauw (WDP.BR) - Vision Statement

• Integrity - ethical governance, transparent reporting, and accountability in all transactions and partnerships.
• Customer focus - designing and operating logistics real estate that anticipates tenant needs, reduces downtime and supports e-commerce and omnichannel fulfilment.
• Sustainability - reducing carbon intensity, increasing renewable energy generation on-site, and pursuing circular construction practices.
• Innovation - adopting smart building technologies, automation-ready facilities, and data-driven asset management to increase efficiency.
• Collaboration - partnering with tenants, municipalities, and investors to deliver shared value and optimize land use.
• Being vitally engaged - investing in employee well-being, safety, training and inclusive culture to retain talent and boost operational performance.

• Portfolio quality: focused on prime logistics locations with electrification and loading efficiency.
• Decarbonization: target emissions reductions and expanded on-site solar and green leases.
• Customer experience: enhanced digital tenant portals, rapid fit-out capability and flexible lease structures.
• Scale via disciplined development and selective acquisitions to capture market share in European logistics corridors.
• People: measurable engagement scores, safety KPIs, and continuous learning programs.

• Investment criteria that prioritize energy performance and proximity to major transport hubs (Customer focus + Sustainability).
• Capital allocation framework balancing development yield vs. portfolio risk (Integrity + Collaboration).
• Deployment of IoT and building management systems to optimize energy and operations (Innovation).
• Employee engagement programs, safety training and career pathways to reduce turnover and incidents (Being vitally engaged).