Warehouses De Pauw Nv

Yes, a difficult choice this morning between the Catena and the WDP call organized at the same time. So, thank you for joining us. But, let me start with the key message of today. Delivering today, building tomorrow. Our key highlights. Nine months into Blend 2030 plan, we have made significant progress in putting the building blocks for future growth in place. We continue to secure new developments, redevelopments, acquisitions of attractive returns of 7% NOI yield, which we enriched with a new A really unique land bank of 1 million square meters of land from Zwolle to Toulouse, securing the next phase of developments. We are scaling up in Germany with a 250 million portfolio taking shape, supported by our local teams on the ground. We are preparing an early entry in Italy with the first investments, while Spain is in startup mode. And on top of all of that, we have proposed you the unique EU merger with Argan, transforming WDP from a Benelux Plus to a core Western European logistic platform. And importantly, We have also strengthened our balance sheet through our recent successful 400 million ADV. So, we have the opportunities, the teams, and the financial capacity to execute our ambitions with a clear vision for tomorrow. And while building For tomorrow, we continue to deliver today. Our EPS is up 5%, supported by continued strong operating performance. Our occupancy remains high and our platform continues to capture demand across our markets. And we confirm our full-year guidance This with a strengthened balance sheet. But what gives us the confidence looking ahead that is the combination of continued demand and our ability to translate that demand into growth and investments? We secured 500 million euro of new investments Our pipeline in execution stands at 800 million with a 7% NOI yield and over 90% pre-let. And importantly, we are continuously replenishing that pipeline. We remain convinced of the long-term fundamentals of European logistics. Our clients need resilient and efficient for their daily operations. Without the right logistic infrastructure, products simply cannot reach the right place at the right time. And this has been showcased by recent large transactions in different markets. And with the supply chains becoming more regional and European, our clients increasingly need European partners who can support them across borders. And that is exactly the platform we are building. A leading 20 billion euro plus European logistics platform that can offer these solutions to our clients based on robust fundamentals of our sector. So, in short, We are delivering on our commitments today and focused on successful execution. So, then now it's time for Q&A. And to start, we hear three questions popping up a lot of times in our contacts with the Invector community. Our exposure to France, and how we look at it, the exit rights within the legal framework of the cross-border merger and with property values. So, we will answer them in advance, directly. First, our exposure to France. For us, the strategic rationale for France is absolutely clear. France is one of Europe's most important logistic markets and a cornerstone of a leading European logistic platform. It is Europe's second largest economy with almost 70 million consumers. It has a substantial industrial base and it is one of the largest logistic markets on the continent with 18 million square meter of warehouses. And importantly, it has access to power with nuclear energy, with a nuclear energy infrastructure of 70% of the needed electricity, providing a cost advantage. Besides that, its geographical is unique, connecting north to south in Europe as well as east and west, supported by an extensive multi-model infrastructure network. With the ongoing investment plan 2030 of the French government, 50 billion euro will be invested in the regionalization of supply chains Re-industrialization and in strategic infrastructure. For WDP, France is therefore not simply an additional market, it is a link in our European platform. And through Argan, we have a unique opportunity to establish leadership with a high-quality portfolio. A resilient tenant base and strong exposure to everyday consumption. Of course, we are cognizant of the current political and fiscal challenges. Street protests, government budget deficit, rising country risk, premium, and the upcoming elections. We recognize these risks and take them seriously. We invest for the next 30 years and not for the next 6 months. Political cycles come and go of the structural need for modern, efficient logistics infrastructure remains. We are investing in infrastructure that is essential to our clients' daily operations. So, Our conviction is clear. France combines the scale of a major consumer economy with internationally competitive industrial sectors and substantial long-term investment in manufacturing, energy and transport infrastructure. These structural strengths support sustained demand for modern logistics Yes, on the exit right, let me

If you walked through it, how it works. In fact, the background is an EU legislation to prevent investors in one country being forced to receive shares of another country in a merger. Therefore, the need to provide a cash alternative. The cash alternative should be the value of Argonne, standalone, prior to and independent of the merger, with strong reference to the share price trading of Argonne preceding the merger announcements. What are the ways to exercise it? Investors should attend the AGM and vote no, so that means maximum 33% can vote no, because the merger should also be voted yes, with a minimum of 67%. Next, investors should file the paperwork after the AGM of Argonne of 20 November, within 10 days, so prior to end of November. Only full participation should be offered to the exit rights, there can be no partial contribution. Next, the shares will be no longer liquid as they will be blocked on an account, and the exit right will be paid 2 months after the merger closing, so up to 5-6 months after the EGM. And also, the exercising of the exit rights will trigger a capital gain tax as opposed to swapping to WDP shares which is tax neutral. Another point is the conditionality. The exit rights is only exercisable when the merger then completes, plus no liquidity is available once standards for the exit rights of the shares are blocked and not to be transferred. What is the potential theoretical financial impact? Then it's about 26 million Argonne shares times We have carefully analysed with our boards prior to entering the transaction what it represents. on a probability-weighted risk and a look-through risk. So there, first of all, not all shareholders typically attend an EGM. Secondly, there is also already 20% plus overlap in the free flow, so excluding the reference shareholders between WDP and Argonne shareholders, so you may think, or may expect, they will be the same. and hence we have considered a maximum look through risk probability weighted of 10% of the shareholder base of Argonne maximum or 150 billion euro which is then to be seen on a combined balance sheet of 13 billion and would have an LTV impact of plus 1.2% but We have liquidity available, this can be managed, this is very manageable, and also it will be even EPS accretive at that moment. So that's first on the exit price. Then the third question, which popped up regularly, is the question obviously on property values and yields. There we can say, yes, the recent run-up in rates, and more generally, De Pauw Nv, Alexander Makar, Johanna Vermeeren, Joost Uwents, Michiel Assink, Mickaël Van Den Hauwe De Pauw Nv, Alexander Makar, Johanna Vermeeren, Joost Uwents, Michiel Assink, De Pauw Nv, Alexander Makar, Johanna Vermeeren, Joost Uwents, Michiel Assink, Mickaël Van Den Hauwe below seven times now, and 2.4 billion liquidity. These two are more than ever the most relevant.

Thank you, Mick. Thank you, Mick. Thank you, Joost. This brings us to the Q&A. If you wish to ask a question, either via the chat, and I will address them, and in seconds, I'll guarantee this by phone, P-files, found key files on your telephone, P-files to enter. if you wish to withdraw. And we have the first question coming in from Anna from Morgan Stanley. You are now unmuted.