Brussels-listed logistics developer WDP is raising its full-year earnings forecast after lifting its EPRA earnings for the first half of 2017 by 18% to €57.2 mln.
The company’s Dutch operations performed particularly well, CEO Joost Uwents told PropertyEU in a telephone interview following the publication of the first-half results. ‘The Netherlands was hit hard by the financial crisis, but it took the necessary measures and it is now recovering better and faster than our home market Belgium. The economy is now much healthier and stronger consumer spending is driving production and the need for more logistics space.’
WDP’s Dutch portfolio generated a 3.9% increase in fair value over the six-month period, compared to just 1.9% for its Belgian operations. The Netherlands accounts for 49% of WDP’s total operations compared to 43% for Belgium. France (4%) and Romania (4%) make up the remainder.
The French and Romanian portfolios booked fair value increases of 1.6% and 2.5% respectively. Overall, the value of WDP’s portfolio rose 3% over the six-month period to €2.3 bn.
The Netherlands is also one of the star performers in terms of occupancy levels. At end-June, the vacancy rate of the Dutch portfolio totalled 1.5% compared to 4.8% for the Belgian operations and 5.2% for France. Only Romania turned in a better performance with a zero vacancy rate.
Net earnings (IFRS) for H1 2017 soared more than 200% to €137 mln from €43.3 mln in the year-earlier period.
For full-year 2017, WDP is now forecasting EPRA earnings per share (EPS) will rise to €5.50. It is proposing a full-year dividend of €4.50, which would reflect an increase of 6% year-on-year.
The company is also upgrading its longer-term forecast: EPRA EPS are seen growing to ‘at least’ €6.50 in 2020 (from €6.25 previously) with gross dividends rising to €5.25 (previously €5.00).
