Warehouses De Pauw Nv

For the first time, we are not all together in the same room for an investor call. The proof of our growing European platform. Too much business to do, so we have to spread our spendable time better between clients and investors. Yes, our new 2030 vision, announced with the full year results, landed very well. De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv and the most important use of this report is that we replenished the investment pipeline with 140 million new investments consisting of four new pre-led developments and an add-on acquisition at an NOI of 6.9 and so we keep the pipeline in execution at 700 million and we also signed De Pauw Nv De Pauw Nv The floor is yours.

Good morning, and welcome to the Q&A. If you wish to take a question, there are two options, one via the chat, and the second option is to press pound key five on your telephone keypad, and if you wish to withdraw, it's pound key six. We already have the first question in mind from Marios. You're now unmuted. Can you please take your questions one at a time?

Great, thank you. Good morning and thank you for the update. I've got two questions on my side. I'll ask them one by one as mentioned. So firstly, you mentioned this morning that you see demand broadening, you've got larger space requirements selectively coming back to the market. If I look at your leasing volumes and the proportion of leases renewed through Q1, I think this was running lower year on year. And of course, we've now got the renewed uncertainty around the conflict. How are you thinking about leasing volumes through the year? Should we expect an improvement and are we on track to get to that 90% renewal rate?

First, indeed, demand and the renewal rate is also depending on and can differ from year to year on the moment when the renewals will be there. There can be a lot of renewals in the beginning of the year or in the end of the year. But in general, let's say, like we said previously, De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv

Very clear, thank you.

And then just secondly on country managers now in place across Italy, what are you tracking there in terms of portfolio opportunities around public exposure and how should we think about the timing of this coming through? Thank you.

Well, we always said that the new countries are part of our 27-2030 plan, but that we will engage them now in order to prepare the future. And I say so, they are just De Pauw Nv De Pauw Nv

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Mieke, will you take this?

Yeah, I'll take that one, Frederik. The lease renewals were done at the ERV, so at levels in line with the spread between contractual rents and ERV, and I'd say between 7% and 9% that was, but we can confirm those ERVs. And then the second part of the question was the ERV trend across the markets was flat.

which is also normal with a bit of market volatility but the good thing is we are capturing the spread the fact that we are now on 7% instead of 10% means that we can capture the potential and then it can go up again

Alan, can you maybe comment a bit about, because you are referring to the fact that you are seeing more appetite for larger units, so can we conclude that for the upcoming months you should be announcing something relatively large, a bit to the same extent that what you have been announcing in Antwerp, for instance, in your development pipeline?

De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv and there will be very nice things to come in the near future.

Okay. Thank you. The next question is coming from Suraj from Green Street. You're now unmuted.

Good morning. One question from me. Can you please provide some color on how construction costs are changing in real time across your key development markets given the conflict in the Middle East?

it would be interesting to hear your thoughts on that let's say it's a combination of two factors first of all indeed there is some let's say nervosity with our contractors about those elements of their materials who are let's say linked to oil prices like isolation of course but on the other hand there is also De Pauw Nv De Pauw Nv De Pauw Nv

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On the contrary, let's say since the beginning of the year and since last year, I think there is more and more liquidity and that didn't stop, let's say, the last month. No. More than enough possibilities for us in all the countries.

Perfect. And then a second question was on the contribution of solar energy. You make some comments in the press release. De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv

In our budget in the guidance, you can also see the details in the annual report in the order of magnitude of 26 million for a full year.

All right, thank you.

The next question is coming from Paul May from VARTIES.

You're unmuted, Paul.

Hi, guys. A quick one for me. De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv

So in Q1, it was the normal, usual movement of tenants, and it's fully in tune with our budget, and which we guided for at the start of the year, that we see a normal occupancy rate in a normalized market of between 97% and 98%, and this small quarterly movement just reflects the usual tenant movements.

Okay, perfect. Thank you. And then the second one you mentioned obviously in the opening in the last question about acquisition opportunities definitely being there and I think if anything potentially increasing given higher rates for some of the owners of those assets. How would you look to fund those? I think at the full year you mentioned if there was a large transaction you'd happily equity fund it but obviously your leverage position has been creeping up and just wondered how you're thinking about that with these increased opportunities on the acquisition side that you mentioned.

Well, first of all, Paul, I mentioned that we see indeed acquisition opportunities, but that they all fit. I added that clearly, that they all fit within the 500 million euro investment envelope we have every year. So today they are perfectly fitting in. But like we mentioned at the full year result, if there is a special opportunity, De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv

is it an active value, sort of Nuv-led view? I think in the past you've been more income-led, but just to check.

Income-less.

We want to, our main metric is earnings per share creation and having on all the assets a solid correct risk-adjusted long-term total return, property return. That's how we look at it.

Perfect.

Thank you very much. You're welcome.

Thank you, Paul. De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv

I believe that in the full year results, you mentioned that you were expecting market rental growth to come back in line with inflation and in the long term, maybe above inflation. However, the first quarter, we've had another quarter of flat ERDs roughly, and therefore your reversionary potential is compressing. So I just wanted to know how are you thinking about this, particularly as with inflation going up, you would probably keep a little bit more of this reversionary potential in the absence of ERD growth. De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv

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and I feel like rental growth expected for the full year around 2% and we at that moment said with indexation will be a bit less than 2% for the full year. We have around 50 basis points coming from reversion and that would be then partially offset by the impact of temporary vacancies related to tenant movement. So what you see is actually in tune with that guidance.

We also have one question for you Joost in the chat, coming on cold storage. Can you give some additional feedback on the exposure to cold storage and the attractiveness that we see in that submarket compared to conventional warehouses?

Well indeed it has always been a very interesting segment within our business since indeed you need to let's say you can make better warehouses there is more equipment in and then indeed in those warehouses people stay longer and more and more let's say more and more products needs to be in cold warehouses and the legislation everywhere in Europe is getting up so the requirements are indeed more severe so let's say more and more goods needs to be in cold storage and there is still and let's say in a cold storage there is less activity and I would say less buildings available so there is almost always full occupancy in cold warehouses called meaning them let's say positive between two to four degrees or around 10 degrees of course then you still have the deep freezers to also a very interesting segment since indeed there is less supply in those things and we are able to develop them De Pauw Nv De Pauw Nv De Pauw Nv

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Two things, indeed that we have a clear ambition towards 2030 with a very clear goal and we want to create a fully integrated EU platform providing total supply chain infrastructure solutions and above that and again based on Q1 and the long term where we are already building forward we can say that De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv De Pauw Nv Thank you all and have a good Friday.