Good morning everybody. You see here in front of you again a very happy man.

It's not so long ago, only a week ago, we have presented a unique future project for us and for our sector. I want to thank you all, all the stakeholders, for the full support we get for this unique project.

Everybody supports this deal and this is very convincing for us. Thank you all for the support with everyone by who we had discussed this unique project last week all together.

Besides that, it is very well and I'm also very happy that we can show today that in between the operations continued. Even when let's say group management is working on a strategic project, our operations continued to work on the priorities we give them the beginning of this year.

This shows that we are really growing as a company and that we are ready for the future because we can really say they delivered as foreseen on occupancy, on new projects, on acquisitions. We did what we had to do.

If we look into detail on the countries, well, for example in the Netherlands we delivered two very, very nice products: for Scania in Zwolle, for Kivits in Barendrecht. Showing scarcity of land, we started a new redevelopment on the same location in Veghel for Kuehne + Nagel.

Kuehne + Nagel who is already 50 years active in that region just across the Mars factory, the biggest production of Mars in Europe. There we started together to redevelop locally because indeed there are no new land positions available.

In Belgium, we did a cross-border development with Segro, Seafrigo, our French new client. In France, even without Argan, we were really growing and up to maturity with a vision on a €1 billion portfolio.

That growth was based on cross-border relationships: DHL, Conad, growing further together with Seafrigo. Romania, there we extended with existing clients and we could also attract a new industry client like Siemens.

Above all those fantastic new value adding projects and developments, acquisitions, we also did asset rotations for more than €100 million. That's clearly a new driver.

Some of you asked why now? Because we are big enough to do it.

We can do that without pressure on the short-term EPS. Besides concentrating on the operational priorities, we also started with the new building blocks for 2030.

We onboarded Spain and Italy. Country managers are in place and helped from the group, they are now making their plans.

In the beginning of the autumn they will come to us and say, "Look, this is how the country looks like, this is the competition, and this is how WDP can make the difference there," so preparing for '27. Germany is really ready for take-off now.

You will see soon. Above that, adding and onboarding the new countries, we also could realize a new landbank in core Western Europe for 500,000 square meters for €100 million, and it is still growing.

Future development potential everywhere in core Western Europe. All of this within our €500 million envelope per year, we can manage it all within our planned and extend 2030 projects.

At the demand level, well, there we can really say that situation normalized, but yes, still except the more cyclical elements, the macroeconomic stock buildup that we all waited for in the beginning of the year, but that is postponed due to the war in the Middle East. Indeed, but besides that, we see really different activities.

For example, in North of France, Libercourt, there was a building emptied by an FMCG client, well, but another new 3PL came to us and said, "Look, I only use part of the site, but I see different tenders, I see possibilities, and give me the chance to fill it up by the end of the year." In the meantime, half of the building is relet, and he is looking for new tenders and new clients.

New cross-docks, and meaning that e-commerce is further growing, we see our clients looking for cross-docks, SMEs are active. We really can say now that our clients accepted volatility as the new normal, and they all make strategic decisions again.

Yes, we all have to wait for an economic recovery to have, let's say, our normal, most easy, simple business, but we always say the best is yet to come. All in all, the figures, they are what they need to be, convincingly, all the news you got until the beginning of July and last week.

Yes, we are happy with the fact that we could realize a unique step forward on our European platform and that the operations continued so that we can really grow further all together in the different countries up to the €20 billion platform. Then it's now time for Q&A and your questions.

Good morning everyone, we're open for the Q&A. Please put your question either in the chat or if you're dialed in via teleconference, it's #5 to enter the queue and #6 if you want to withdraw the question.

The first question is incoming from Wim from KBC Securities. You're now unmuted.

Yes, hi, good morning. Thanks for taking my question.

I guess you can hear me.

That is--

Hello?

Yeah.

Okay.

Okay.

My question is really on a bit the impact of the deal and maybe as we are building our models for let's say the next 2-3 years on '27, and I also asked this question on the previous call where you answered, okay, the '27 EPS outlook of €1.70, which was part of the plan '27, will have a minimal impact. Now, what I'm struggling with a little bit is how will you account for let's say the costs of the integration?

Mainly we are wondering according to IFRS rules, an all-share deal, which it is after the €11, is typically expensed in IFRS. Just want to know if that's correct or whether you will capitalize those costs.

You will indeed, it's a business combination and then it will remain the same, because if you capitalize, then in the end in our simple portfolio deals, then it will also be charged in the end through the portfolio results. Indeed, those expenses, all the transaction costs will be expensed via P&L, but you can filter them also based on the rules of the EPRA earnings.

Okay. We're trying to figure out, as you said, in the past plan '27 will be a 6% CAGR, we're starting from €1.60 for this year.

Can you give any quantitative impact on if you say '28 will have 3% additional growth, can we then just very easily say then next year will be a 3% growth rather than a 6%? Does that make sense?

I think the basis is what we say is that you still have the guidance of our former plan before it was extended and that's the €1.70. We say we do the deal somewhere in '27 and then after the first full year of operation, in '28, it will be 3% EPS accretive.

Why do we need that time? Because we do not know exactly when it will close the deal.

We also need some time to capture the synergies. It takes some time.

Then we are confident in that we can capture that €10 million synergies and that we by the end of next year so that we can go into '28 with the deal mechanics and with the synergies of €10 million and arriving at the 3% EPS accretion based on top of our standalone business plan.

Don't calculate on already extra earnings per share for '27. It is not a big integration, but it needs time and it needs to be able to integrate the teams and the financial [unclear].

For us, it's about '28, and in '27 we have to work on the deal.

That makes sense. Just a small follow-up, if I may.

Just on the timing, if I get it right, the €11 coupon will be paid after the approval of both boards, but then before the completion. Then once that date is fixed, I think there's a related to the €250 million portfolio sale of the old Argan portfolio.

Is there any explanation you can give how you're going to kind of bridge that? Is there additional financing needed because obviously you cannot sell the 250 at the same time and any comments you can give how you're going to sort that out?

That

Argan has the resources to distribute the exceptional dividend and it will come from their resources prior to closing. In the end, yeah, we will then take that over in the combined group.

There is no issue whatsoever in terms of resources, liquidity, etc. They have sufficient liquidity, we have sufficient liquidity, together we are even stronger and we are also reinforcing our own resources.

The €250 million disposals has nothing to do with liquidity or needing the resources. No, it's just because we want to do a capital structure neutral deal where we say, okay, we do this transaction, mechanically it increases a bit the leverage, but we want it to come down again with this around plus 1% LTV and plus 0.3 in net debt to EBITDA, which is broadly neutral.

Therefore we say we will give ourselves the time to then dispose from the group--we will not start selling Argan assets all of a sudden--from the group €250 million disposals to be executed by the end of next year.

To be clear, and it will not be let's say almost forced sales out of the Argan portfolio before the closing. No, it will be until the end of '27 out of the total portfolio.

Also we give ourselves, let's say, as from now 1.5 year to realize it in the total portfolio. It's about 2% on the total portfolio by the end of '27, even after the distribution of that exceptional dividend.

That's clear, no pressure then. Thanks for taking my questions and good luck on the integration.

Thank you.

Thank you,

Wim.

Francesca, the line is now unmuted. You're next.

Yes, hello, good morning everybody. Many thanks for taking my questions.

I have two. The first one is related to the write-off that I see a little bit in France, in Germany, and in Luxembourg.

Can you elaborate a little bit on these, and is fair to expect that H2 will be more or less flattish? Also, can you talk about what you experienced in Romania lately, because yesterday another company posted some write-off talking about more and higher competition?

That's the first question. The second question is about--

One by one, Francesca.

Yeah.

You go ahead.

Yeah. On the slight negative portfolio results, which was almost flattish, but in France it was related to the building that became partially empty, which Joost referred to, and we expect that to recover that slight valuation decrease as we further lease up the building.

In Luxembourg it was also slightly negative, and in Germany because of simply the shortening of leases, what was quite limited overall. Indeed, our expectation is for flattish portfolio results indeed.

Then for Romania, there we had the discussion with the valuators and with our teams over there in June, July, and we actually concluded that the valuations in our Romania portfolio are quite robust on all their components, as well in ERV and in yields. For example, on ERV, we haven't seen a massive increase in our ERVs in the Romanian portfolio.

They gradually increased over time. Let's say we don't give incentives, the rent is what you see, the cash rent.

There is no differential between the facial rent of a contract and the economic rent, and you can also see that confirmed by our EPRA net initial yields, which is the same as the topped-up net initial yields. There we feel comfortable.

In Romania, we haven't seen big change in competition. No, it's simply the same like in any other market.

I think, Francesca, we can say that Romania is a stable country with stable rents, stable valuation, and, let's say, a normal stable competition. On the other hand, if there would be more competition to come, that would be a good message and good news.

We can live with it, we can live with more competition like we have here in Western Europe. More competition means that there is more activity, that there is more liquidity, and that should give then also, let's say, better valuations.

For the moment, there is no more competition, but we see some parties looking to Romania, but for the moment there is not more competition than, let's say, 6 months ago. For us, stable market, good projects, and nothing changed.

Supported also by very good land positions with the necessary infrastructure so that we can really have good offering towards prospective clients for development projects on which we focus over there.

That's clear. Many thanks.

Then the second question is on the demand. I think that your message is very positive and very clear as well.

Just looking at the lettings that you have done so far, how much is small tenants meets small unit, and how much is bigger tenants, big boxes? Can you give a sense?

Thank you. It's a little bit,

let's say, it's also depending on the regions, Francesca. For example, in Belgium there are almost no big boxes available.

There was somebody looking for a bigger, but he could not find it, he is now looking for, let's say, eventually two or three places. In other countries there are some, it's depending on, I would say, the regions.

Yes, we see them, but sometimes they are also not available directly. There are no big boxes available in Belgium.

In France there is, let's say, a bigger stock of big boxes, there you have them, but their demand is also faster, bigger. Yeah.

I would also add last year we said it was predominantly coming from the smaller units, up to 10,000 square meters, and now as from this year we can really say it's more balanced again, and there are also again more tenders going on for bigger surfaces.

That's right.

That's fine, that's helpful. Many thanks everybody.

Thank you. Kai, you're next.

The line is now unmuted.

Yes, hello, good morning. Got two quick questions, if I may.

Could you indicate what was the lease renewal rate in the letting activities in the first half, and what do you expect for the remaining leases expiring for the second half? Second question, the increase in property charges in the first half, is the increase by well, 11% function of a larger portfolio size, or were there any specific reasons in some countries?

On the lease renewal rate, there we look at it for the full year, and for the full year we expect it to be around 90% normalized, I'd say roughly around 90% what we expect for the full year. In the increase in property charges, no, nothing very specific, a bit seasonal.

Let's say, all the property charges and the G&A expenses you see are in tune with our full-year budget and with also our view that we can maintain the 90% minimum operating margin EBITDA margin.

Thanks so much.

You're welcome. Pierre-Emmanuel, you're up next.

You're now unmuted.

Yes, thank you, good morning. Actually, I have two quick questions.

The first one is on the Argan integration. I understand that you want to exercise one option on the land that they have close to Lyon in France.

Just trying to understand, do you intend to capitalize interest on the acquired landbank, especially on this one, the Lyon land plot, and is it part of the financial synergies of €10 million that you are expecting?

No, because it hasn't been bought yet. That's the good thing they have limited land in their balance sheet mainly for extensions, and that's limited.

There for this project which you are referring to, it's an option on the land, but obviously if we purchase that land and start to work on a project, then obviously we will capitalize the interest on that. No, it's not in the synergies, yeah.

Only we will capitalize. We keep our policy, we don't change our policy.

Do the same policy, yeah.

What could be the amount of this capitalized interest? In fact,

that's simply in function of the volume of land you buy in the future. It's like our own portfolio as well.

When we buy land and we do a project, we start capitalizing interest on it in function of the CapEx, yeah.

Okay. For the rest of the 750,000 square meters, are you intending to capitalize also interest for the rest where there is no land option, but already owned by Argan?

If we start to work on it, yes. That's very limited.

It's very, very limited amounts.

Okay.

It's not making the difference. It's not

making the difference, perhaps €1 million,

yeah.

It's clear. Thank you.

The second one is on the 2027 expiries. Just to have a bit of color here, approximately 10% of your portfolio is due to renewal in 2027.

Have you already received any termination notices from tenants so far?

No, not specific, no. We don't have any specific indications.

Now let's say in the second half that work will start for '27.

'27s always starts just as from September, it's never before. Most of them are let's say six between 6 and 9 months in advance and '27 is really starting as from September, not earlier.

That's clear. Just to understand, on 2027, our best case is to have a vacancy that will remain below 3%, right?

Sorry, Pierre-Emmanuel, can you repeat the question? We had a small technical-- Sure.

Sure,

just to build our business plan for 2027, we are basically basing our estimate with a vacancy that will remain below 3% or delinquency of over 97%?

Yeah. That's what we also guidance for.

That's from now in a normalized market, we should also be able to generate a normalized occupancy rates between 97% and 98%, less than 3% vacancy indeed.

That's clear. Thank you very much.

Thank you. Fred, you're up next.

You're now unmuted.

Hi guys, I'm sorry, I had to join a bit later, I'm not so sure the question was already asked, but what about ERV trajectory in your portfolio so far this year? Is it still flat?

Yes, it was flat year to date and we expect it to be flat during the remainder of the year, and then as from next year start to be again inflationary, and then in the mid to long term inflation plus as from when because of the scarcity elements.

All right, okay.

The outlook is fundamentally good because the construction starts are much slower and we just need that as also that stockpiling again and that cyclical elements to kick-start again and then there will be pressure, upward pressure.

Have you just said that the construction costs are going down, or? No, not at all.

No, there are indeed some upward pressure on construction costs, on--

Upward pressure, okay.

Upward pressure on the components, on the building materials, but today the overall building costs for the new build developments is stable. Why?

As opposed to a few years ago when we came out of COVID, then there was a really also very strong demand. Now the order books of the construction companies are very low, and so they want to keep their machine ongoing and they absorb the cost increase of the materials in their margins for the time being.

Obviously, it's also linked to the wider situation and duration of the situation geopolitically. That we don't have a crystal ball of course, but if it would increase, it would also be immediately go hand in hand with rising ERV because we would charge it through to the tenants.

Maybe just a general question because if I look at the evolution of the portfolio value since 2025 actually, the portfolio has been evolving below inflationary trend and could be the case again in H2, I assume, on the basis of your comment on ERV. At which time do you protect your values actually?

The investment case on that, it's still shocking, in real estate normally you should be hedged against inflationary trend. Here if I look over the last 2 years, portfolio has not evolved in line.

It's a bit tricky, right? How do you read that and what's your view on it?

I think we can definitely say that our cash flows are inflation protected. We have the inflation-linked leases, we have ERV, we are below, well below ERVs.

Yes, ERVs are today flat, but I think that's also logical given the wider economic situation, but there is also scarcity element building up, we are confident in that our cash flows will be inflationary, but obviously we don't have a crystal ball about where interest rates are going.

I think, yes, you can say real estate is following inflation, but not linearly, and not every quarter, and that's taking sometimes time. The first thing is that your cash flows needs to follow, and that they do.

We can capture inflation even after, let's say, we captured already 15-20% the last years, we still are below ERV, and there will be higher inflation in the short term, well, we will be able to capture it.

Okay. Thank you, guys.

Thank you. Paul, you're up next from Barclays.

The line is now open for you.

Hi guys, sorry about that, and apologies if the question's been asked. I've been a busy morning.

Just a quick one, a couple on actually the Argan situation, and apologies if you can't answer, but just wondered what gross rent are you assuming in your modeling and forecasting for 2027 for Argan, just to assist in our own modeling, that would be great. Then the second question, obviously you're acquiring Argan, which is a more levered business post their sort of special payment, and that obviously will have an increasing effect on your own leverage.

I just wondered what your targets are in terms of moving that leverage down and whether working on the Argan situation precludes you from doing any other transactions or whether you still remain very active in the market looking at other things? Thank you.

What we took for Argan is relatively flat occupancy rate for at minimum around 99% plus the indexation of the rents, not yet reversionary, even though there is in the next couple of years some reversionary and then in the longer term also on the Carrefour portfolio, so that's first on the rents for '27. Then, yes, we are cognizant that, yeah, due to this exceptional dividend, the Argan leverage will be higher and that, yeah, it will have some effect on the consolidated leverage of the group, but that's exactly why we said we will also execute €250 million of disposals so that the impact is actually quite minimal with only 1% impact on LTV and 0.3 times on net debt to EBITDA, and on net debt to EBITDA, then we still one of the strongest in the sector.

We will continue to operate within our €500 million envelope, of course, which we can do each year on a standalone basis. Do note that each year we already have €300 million of retained earnings, scrip dividends, and contributions in kind.

We do not see ourselves as limited in any case if there would be an acceleration whatsoever, but let's say we see good opportunities to continue to replenish our pipeline, which is well spread in time, and after which we each time built new layers within that €500 million envelope. Our leverage targets have not changed, they stay the same.

We maintain our policies and also our credit ratings have just been affirmed by both rating agencies.

Which is also a good sign.

Cool, and just to confirm, the deal doesn't preclude you from doing any other equity-funded transactions or doing accelerated bookbuilds on your own stock, just because you're issuing shares for Argan, there's nothing in that deal that precludes you doing other things sooner, is that correct? Yes, but

we will obviously now focus on executing the transaction and continuously replenishing our pipeline, for which there is room enough, because we have also a lot of incoming cash flow in the second half of the year. Next year we have again the €500 million envelope, and so today we see good opportunities of continuously replenishing that pipeline within that €500 million envelope.

We will first try to, let's say, close and integrate as soon as possible. This is now the first priority, of course, and then, let's say, we are ready for the future.

Okay. Thank you.

Thanks, Paul. As a reminder, if you want to ask a question, it's #5.

In the meantime, we have a written question from Marius from Bernstein, and he's asking the following: "So it sounds as though Germany is next on the cards for WDP. What is driving this decision and should we expect an acquisition of existing assets or portfolio or will this be development-led growth?"

Of course, what is driving this decision? Decision is made, let's say, 2-3 years ago.

Then we said we want to expand in France and Germany. In France, markets were opened and we could do what we wanted to do.

Of course, we got now with Argan even that unique call which was of course not foreseen. Besides that, we started looking into Germany.

Therefore in the beginning of the year we hired a new full-time country manager. Then today we have a team of four people and then you see indeed that activity is coming.

I would say the combination of having the team in place and also the market in Germany that Germany, let's say, starts to accept the reality because before they stayed on keeping that the market in Germany should be better than anywhere else and should stay below 5%, but with the sector with a cost of capital between 5% and 6%, it's not possible, of course. Now step-by-step they accept the new reality, and let's say we will grow in Germany like we do everywhere, and so that can be an acquisition, a small development, a co-development.

With the team, we feel comfortable that we will be ready to take the first steps soon. Then

we have a final question from Gert from VFB, and the first on Germany has already been addressed, and then just as a follow-up: "Geographic expansion with France at center to bridge into Spain and Italy is a very logic move. What about Northern Europe?"

Gert, it's of course the duty of you to look forward, but we have to concentrate now on the operations. I think France is a unique project.

This will take time, and let's say then with the Benelux French platform, and we will concentrate on Germany, Spain, and Italy. That's the logic, that's now the heart of Europe.

That's what we need to do for our clients, that is what our clients are asking. In the meantime, for our clients we can already give solutions in Northern Europe.

For our clients we today can offer solutions from Helsinki to Madrid and Rome, and that's it. There we have to concentrate us on.

That is the focus now, integrating France and then as from those platforms focusing on Germany, Spain, and Italy. Then

we have one question, a few comments on the strong leasing activity of WDP year to date. Maybe, Joost, you already addressed a lot of it.

Can you just give some color on any difference in demand from sectors per country?

That's what I explained. I think let's say it was very broad.

You see mostly strategic decisions in let's say every sector. For example, food retail was very active, pharmaceuticals were very active.

It is indeed the cyclical stock buildup that you don't have. For example, let's say Unilever did not decided to produce more iced tea because they thought they would sell more iced tea this summer than last year.

That easy cyclical stock buildup is not there. The big square meter users are partly or are for a big part FMCG, they are still less active.

For the rest, it's really well spread from cross-docks, SMEs, and all other companies who are indeed looking through the cycle, through volatility, and saying, "Look, we have to build out further our logistical infrastructure." For them, and for a lot of companies, and more and more companies, the logistics, the supply chain is critical for their companies, and so that is what they are building with or without volatility.

Then

we have Thomas again in line from Deutsche Bank. You're now unmuted.

Hi, yes, morning. Two questions from my side.

The first one is on the Argan deal. You have quantified the expected cost synergies.

Maybe you could share your thoughts on revenue synergies, also regarding the expected timeframe maybe for realization. What is a fair amount actually of transaction costs to assume for the deal?

On transaction costs, we estimate it to be around €25 million. Then on the revenue synergies, you would like to comment?

I think

there it will be relatively fast because as from the moment we integrate, we also intend to integrate them into our platform. That's what we've seen with the other teams as well, the new team in Germany, France, Spain, Italy.

There is really a lot of cross-selling we can do amongst clients, it will be relatively fast.

Like I said this week to all the investors, yes, there is indeed the €10 million synergies, but this deal is not about synergies. It's about doing faster, more together.

Because let's say today Argan has two limitations: the desire of the Le Lan family to stay in control, which made that there was only a limited availability for acquisitions and for growth, €150 million per year, and they were limited to France. Let's say that will be '28 because '27 will be the year of integration, as from '28 there will be no limitation due to that desire of control and they will also to be able to do deals with their clients outside of France.

It is really a deal about doing faster, more together.

Okay. Then one question actually on the French portfolio.

You say the revaluation was negative on a single asset vacancy. Maybe can provide some color on this?

It's

the asset that Joost talked about. It's the big FMCG site.

It was vacated by the tenant and then already partially relet for the short term, with then this client also asking to give him some time for taking up more space because he has several tenders. It's a, yeah, big asset, a short-term dip due to short-term occupancy impact, which we expect to recover.

For me, the most important element in that file was that, let's say, the existing client who had only a limited part of the total site, that he says, "This is an opportunity for me. There are a lot of tenders, and now, let's say, I can consolidate on one site and based on the opportunity of high clients.

I have space to help you also for smaller, not only for the big tenders, but a lot of varied tenders that he can say, 'Look, I have space and I can in an efficient way consolidate on one place with different clients.'" So that meant for me, yes, there is again activity.

There are tenders, he can win tenders, they can bring them to our site, and, let's say, with a little bit of luck for both the site is fully occupied again by year-end.

Thank you.

Thank you, Thomas. As this currently concludes our call, Joost, any final closing remarks?

Thank you all again for listening again to us. Indeed once again, thank you for your positive support for our deal, and indeed I can really confirm what's on the slide now: we are delivering today our teams and they are based on the priorities we give them, they do it, and more autonomously than ever before because we are working at the future with a clear strategy vision.

It was indeed a unique first half year. We are ready for the future, but first we take some rest and we go on holiday.

Thank you all, and we see you back in September.