WDP reports strong start to 2025 with continued growth in logistics real estate

WDP has reported strong financial results for the first quarter of 2025, reflecting steady growth in earnings, high occupancy rates, and sustained investor confidence. EPRA earnings reached €80.6 million, marking a 12% increase compared to the same period last year. On a per-share basis, earnings rose by 8% to €0.36. These gains were supported by a mix of new investments, 1.8% organic rental growth, and low receivables costs of 2.3%.

The company’s logistics portfolio maintained a high occupancy rate of 98.1% as of March 31, 2025. New lease agreements totaling 165,000 sqm were signed during the quarter, with 75,000 sqm of fully pre-leased projects completed. WDP also reported a strong development pipeline, with pre-lettings up to 71%, reinforcing its market position as demand for logistics space continues.

WDP’s real estate portfolio experienced a modest revaluation of €11.4 million in the first quarter, an increase of 0.1% from the previous quarter, largely driven by the stability of existing assets. The net yield based on market rents and full occupancy stands at 6.2%.

Key to the company’s growth strategy is the ongoing expansion of its European platform. In Q1 2025, WDP completed transactions worth €320 million—of which 85% were in Western Europe—including €110 million in development projects (with a net operating income yield of 7.4%), €170 million in acquisitions (NOI yield of 6.3%), and €40 million in energy-related investments (target IRR of approximately 8%). The total investment pipeline now stands at €820 million, supporting WDP’s long-term expansion goals.

With a current portfolio valued at over €8 billion, WDP is on track to reach its 2027 strategic target under its #BLEND2027 plan. The goal is to achieve EPRA earnings per share of €1.70 by 2027. This is backed by a solid financial foundation, including €1.4 billion in undrawn credit lines and expected self-financing capacity exceeding €600 million through retained earnings and optional dividends. As of March 2025, WDP’s net debt-to-EBITDA ratio was 7.5x, with a loan-to-value ratio of 40%, aligning with its target of under 8x and below 40% by the end of 2027.

For the full year 2025, WDP has reaffirmed its earnings guidance, expecting EPRA earnings per share to reach €1.53, reflecting a 7% increase from 2024. This forecast is based on the current business environment, which remains influenced by global macroeconomic and geopolitical uncertainties.

In Romania, WDP continues to strengthen its position, managing a portfolio worth €1.5 billion across 80 strategic locations with 1.9 million m² of leasable space. One of the major ongoing projects includes the expansion of WDP Park Bucharest - Dragomirești. This development features two advanced logistics warehouses—one temperature-controlled facility of 47,000 sqm and another ambient warehouse of 11,000 m². Both buildings will be EDGE Advanced certified and leased under 10-year fixed agreements. The investment is estimated at €52 million, with completion expected by the end of 2026. An additional 16,000 sqm of space remains available on the site for future development.

Overall, WDP’s performance in the first quarter of 2025 supports its long-term strategy and positions the company well to capitalize on continued demand in the European logistics sector.

Photo: WDP Bucharest