WDP confirms 2026 outlook as project pipeline reaches EUR 760 million

WDP reported a 5% increase in EPRA earnings per share in the first half of 2026, while advancing its proposed merger with French logistics real estate company ARGAN and expanding its development pipeline across Europe. The company also continued investing in Romania, where its portfolio exceeds EUR 1.6 billion and includes more than 2 million sqm of leasable space, according to Business Review.

Proposed ARGAN merger to create EUR 13 billion platform

The proposed merger between WDP and ARGAN, a leading player in the French logistics real estate market, represents a new stage in the implementation of WDP’s #BLEND&EXTEND2030 strategy.

The combined group would create one of Europe’s largest logistics real estate platforms, with assets exceeding EUR 13 billion and annual rental income of more than EUR 700 million.

EPRA earnings rise as occupancy remains high

EPRA earnings reached EUR 0.79 per share in the first half of 2026, up 5% year-on-year. WDP attributed the increase to a combination of organic growth and investments, supported by a high operating margin and competitive financing costs.

Portfolio occupancy remained high at 97.2%, while 75% of leases due to expire in 2026 had already been secured.

The company signed around 200,000 sqm of new leases during the first half, excluding renewals. It also delivered approximately 190,000 sqm of pre-let acquisitions and developments at a net operating income yield of 6.7%.

The portfolio recorded a positive revaluation of EUR 9.4 million, equivalent to 0.1%, based on an EPRA net initial yield of 5.5%. The net yield based on full occupancy at market rents stood at 6.1%, while the profitability potential across the portfolio was estimated at approximately 7%.

At the same time, alongside this significant project, #TeamWDP made substantial progress by strengthening all of the company’s growth engines: solid commercial activity, a significant volume of investments, the expansion of the land bank for future developments and selective asset disposals. Supported by these developments, the continued confidence of our clients and the proposed merger with ARGAN, we look ahead to the second half of the year with confidence across all the markets in which we operate. At mid-year 2026, WDP is exactly where it needs to be,” said Joost Uwents, CEO of WDP.

EUR 760 million development pipeline

WDP secured around EUR 300 million in new investments during the period, after deducting EUR 116 million in asset disposals completed on favourable terms. The new investments were secured at an average net operating income yield of 6.8%.

The company’s projects under execution now total EUR 760 million. The pipeline is expected to support near-term earnings growth and the expansion of WDP’s European platform through new developments and its disciplined entry into Spain and Italy.

WDP reported liquidity of EUR 1.4 billion and annual self-financing capacity of approximately EUR 500 million. Its A3 credit rating was reaffirmed following the announcement of the proposed ARGAN merger.

The company maintained its 2026 guidance for EPRA earnings of EUR 1.60 per share, up 5% compared with 2025. It also confirmed a dividend of EUR 1.29 per share, payable in 2027.

The outlook remains subject to current market conditions and the absence of unforeseen developments in a volatile macroeconomic and geopolitical environment.

Local portfolio exceeds EUR 1.6 billion

WDP’s Romanian portfolio is valued at more than EUR 1.6 billion and comprises over 2 million sqm of leasable space across more than 80 strategic locations. The company is continuing to expand its local operations through new developments, extensions for existing clients and the use of land already held in its portfolio.

In Bucharest-Ștefănești, WDP is developing a 14,000 sqm extension to an existing facility for Auchan. The EUR 9.1 million project will include ambient storage space and is targeting EDGE certification. Delivery is scheduled for the second quarter of 2027 under a ten-year lease.

In Deva, the company is extending an existing Auchan facility by approximately 9,400 sqm. The EUR 7.6 million project will include both ambient and temperature-controlled storage and is due for completion in the fourth quarter of 2026. The building will be leased for ten years.

WDP is also developing a new 15,000 sqm industrial facility in Sibiu for Siemens. The EUR 14 million project is scheduled for delivery in the fourth quarter of 2027 under a 15-year lease. The facility will support an advanced, automated and digitalised production environment, incorporating modern technologies, robotics and digitally optimised processes.

Over the past five years, Warehouses De Pauw (WDP) has solidified its position as one of Europe’s premier pure-play logistics real estate developers. Operating at the vital intersection of supply chain modernization, e-commerce infrastructure, and energy transition, the Belgium-headquartered Real Estate Investment Trust (REIT) has executed a disciplined growth strategy across its core Western and Central-Eastern European markets.

Faced with shifting macroeconomic conditions, interest rate fluctuations, and changing global trade routes, WDP’s trajectory over this five-year period illustrates how strategic portfolio expansion and a commitment to green energy can build resilience in the logistics sector.

The 2021–2025 Strategic Growth Plan: Delivering Scale

At the core of WDP’s recent evolution was its ambitious 2021–2025 Growth Plan, which targeted a portfolio valuation expansion toward €10 billion alongside steady earnings per share (EPS) growth. Rather than relying solely on speculative acquisitions, the company anchored its expansion on long-term triple-net leases with high-credit corporate tenants and built-to-suit development projects.

By focusing on prime logistics hubs along major European transport corridors—primarily in Belgium, the Netherlands, France, Luxembourg, Germany, and Romania—WDP maintained exceptionally high occupancy rates consistently hovering above 98%.

Key Financial & Portfolio Milestones

Romania as a Strategic CEE Growth Engine

A key component of WDP’s five-year expansion strategy has been its deep investment in Central and Eastern Europe, with Romania serving as its primary growth market outside Western Europe.

Through its local subsidiary, WDP became one of the largest logistics landlords in the country, building a vast network of distribution centers around key industrial hubs such as Bucharest, Cluj-Napoca, Timișoara, Brașov, and Pitești. By partnering with major retail, automotive, and e-commerce leaders, WDP capitalized on the regional shift toward nearshoring and supply chain regionalization.

The Energy Transition: “Energy2Business”

One of the most notable transformations in WDP’s business model over the past five years has been its evolution from a traditional logistics landlord into an active energy producer. Through its Energy2Business strategy, the company leveraged its vast roof surface area across Europe to deploy large-scale solar panel (PV) installations and energy storage systems.

This green transition allowed WDP to achieve dual objectives:

1. Decarbonization: Supporting tenants in meeting strict European ESG standards and lowering their operational carbon footprints.

2. Revenue Diversification: Generating sustainable energy on-site to power tenant operations and feed surplus green electricity back into local energy grids.

Navigating Macroeconomic Shifts

The period between 2021 and 2026 brought significant economic headwinds across the European real estate landscape, characterized by rising interest rates and inflation. WDP navigated these challenges through conservative debt financing, high hedged debt ratios, and automatic CPI-linked indexation clauses embedded in its long-term lease agreements.

By maintaining a strong balance sheet and a low cost of capital relative to market peers, WDP continued to execute selective land bank acquisitions and redevelopment projects even during periods of broader market uncertainty.

Positioning for the Next Phase

As the European logistics market adapts to automated supply chains, nearshoring trends, and strict environmental regulations, WDP’s performance over the past five years underscores the strength of its long-term industrial real estate model. Through a balanced combination of geographic focus, tenant retention, and green energy integration, the company enters its next strategic cycle as an essential partner in Europe’s commercial infrastructure.

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