About this video

• Video Title: CEO Talks met Joost Uwents, CEO van Warehouses De Pauw, kortweg WDP.
• Channel: De Tijd
• Speakers: Joost Uwents, Jri Huen
• Duration: 47:29

Overview

This video features a "CEO Talks" segment with Joost Uwents, the CEO of the real estate group WDP. He is joined by Jri Huen, an analyst from De Belegger, who provides commentary and insights. The discussion centers on WDP's strategic plan, its operations in the logistics real estate sector, market trends, financial performance, and future outlook.

Key takeaways

• WDP's Business Model: WDP operates as a developing investor, handling the entire real estate process from development and acquisition to renovation and redevelopment.
• Strategic Plan "Blend 2027": The plan aims to achieve growth through both external development/acquisitions and internal value creation via upgrades and rent increases, targeting a 15% profit growth and dividend increase by 2027.
• Shift to Internal Growth: While external growth opportunities exist, WDP is focusing more on internal growth due to land scarcity, emphasizing better utilization of existing locations and buildings, including multi-story warehouses.
• Market Dynamics: The logistics real estate market is currently experiencing a cyclical downturn with a temporary increase in vacancy, but long-term trends like nearshoring, reshoring, and e-commerce (though slowing) remain strong drivers for demand.
• Geographic Focus: WDP is expanding its presence in France and Germany, aiming to build a strong foundation for future growth in these markets, while maintaining its leadership in the Benelux and Romania.
• Financial Stability: WDP has a strong balance sheet with low debt levels and has hedged its interest rates effectively until 2027, ensuring its financial targets are met without immediate need for capital increases.
• Sustainability and Technology: The company is investing in digital solutions, data collection (e.g., MyWDP app), and AI to improve customer relations and operations. They are also integrating solar energy solutions as part of a total energy package for clients.
• Market Valuation: While WDP's growth strategy and financial health are robust, the market's valuation of the stock is influenced by broader macroeconomic and geopolitical factors, as well as investor sentiment towards the real estate sector.

WDP believes the following long-term trends will continue to drive demand in the logistics real estate sector:

• Nearshoring and Reshoring: The shift to bring production closer to home and reduce reliance on distant manufacturing hubs like Asia necessitates more storage and production spaces within Europe.
• Continentalization: This trend, also accelerated by geopolitical events, emphasizes strengthening supply chains within continents, requiring increased logistics infrastructure.
• E-commerce Growth (as a historical accelerator): While the rapid growth seen during the pandemic has normalized, e-commerce remains a fundamental driver for demand in warehousing and logistics.
• Ground Scarcity: The increasing difficulty in acquiring land for new developments forces companies to optimize existing sites and build more efficiently, such as through multi-story warehouses.
• Demand for Energy Solutions: As companies transition to electric vehicles and face carbon emission costs, there will be a growing need for integrated energy solutions, including on-site energy generation (like solar panels) and charging infrastructure at logistics facilities.