Chairman’s statement

Economic conditions in 2009 were again very challenging throughout the world. I am therefore all the more pleased to report that WDP, your cepic, performed well in an environment dominated by negative developments.

Operating profit rose by over 18%, owing to the satisfactory occupancy rate, the pre-let projects completed in 2009 and the start-up of solar panel plants. This is WDP's fourth consecutive year of double digit growth in operating profit. The higher profit was in line with the outlook announced earlier. 

 
The property portfolio of the cepic likewise grew, on balance by EUR 100 million – up 13%. The investment programme was continued as planned, and several new acquisitions were finalised early in 2009. As a result of a sale and leaseback operation with the logistics division of DHL, WDP became the largest lessor for DHL in Belgium.

Despite the difficult economic environment, WDP did not take a passive stance. Healthy investment, avoiding risk where possible, is required to ensure the cepic’s future growth. A successful capital increase was therefore carried out in June, raising over EUR 73 million. Some of this was used to finance four new projects in Belgium and abroad, worth around EUR 40 million in total.

Two of these projects are located in the Netherlands: a building for the food group Ter Beke in Nijmegen, and another for Kuehne & Nagel in Tilburg. In addition, the warehouse for Univeg in Ridderkerk was completed, attesting to the fact that WDP has become a significant player in the Dutch market as well.

With a third project – the installation of solar panels with a capacity of 2 MWp on the DHL site in Willebroek – WDP completed the solar energy project initiated in 2007. The intended objective, as defined in 2008, will be attained, i.e. an installed capacity of 10 MWp. This represents the annual consumption of 2.500 households. WDP is committed to continuing to play a leading role in sustainable business in the semi-industrial property sector. For instance, WDP aims to continue its work to develop new, profitable sustainable projects on its sites in the fields of electricity, heating, lighting, water consumption, insulation and related areas. This environmentally friendly policy of sustainable warehouses is targeted at reducing CO2 emissions of the storage locations within the portfolio while significantly reducing lessees’ energy bills.

As a result of the various initiatives, and mainly the capital increase in June, WDP’s equity increased by 38%, from EUR 260 million to EUR 360 million. The funds from this operation were used in part to reduce the debt position. Gearing consequently declined 8%, from 63% to 55%. This offers not only scope for potential new projects, it also sends a positive message to potential investors. In the early part of the year in particular, investors were highly fixated on the debt position of companies in which they wished to invest. Following the stabilisation of the financial markets in the second half of the year, in tandem with the decrease in average interest expense, the importance of this issue has diminished to some extent. 

The continued faith in WDP on the part of investors was manifest in the successful capital increase. The economic climate in no way diminished the strengths of the cepic. While the existing investment plan is continually evaluated in the light of the evolving economic context, WDP continues to seek new opportunities in the market. Owing to the quality of the premises and their lessees the overall occupancy rate of the portfolio held up well during the year, averaging 95% and closing at 92%. This decrease compared to the historically high occupancy rate of 99% on 31 December 2008 is inherent in the contraction of economic activity. Accordingly, our first challenge for 2010 is to boost occupancy levels.

WDP also confirmed its reputation as a source of stable dividends. On the basis of the performance in 2009, the Board of Directors will propose to the General Meeting to distribute a total dividend of EUR 2,94 gross or EUR 2,50 net. The dividend is therefore unchanged from 2008, despite the significant increase in the total number of shares. This dividend will be allocated equally to the coupon no. 18 detached on 29 June 2009 and the still-attached coupon no. 19. Both are payable on 5 May 2010.

I would also like to look ahead for a moment. The economic crisis is not yet over and 2010 will surely be another year full of challenges. But on the basis of our present knowledge we can nonetheless already express our expectation that WDP can attain an operating profit of at least EUR 37 million in 2010. Depending on new leases in the existing portfolio that figure might even be exceeded. This would enable us to keep the dividend per share at the 2009 level without lifting the payout ratio to over 100%.

In closing, let me express my gratitude to everyone who enabled us to achieve these good results. I want to thank the members of the management team and our employees for their commitment, and my colleagues on the Board of Directors for their greatly-appreciated contributions. I am counting on everyone to help WDP to continue to prosper in 2010 and beyond as well.


Mark Duyck
Chairman of the Board of Directors

To the top ↑