Warehouses De Pauw: French scale and lower funding costs drive WDP’s accretive Argan merger

Research evidence excerpt

Warehouses De Pauw: French scale and lower funding costs drive WDP’s accretive Argan merger

J P M O R G A N Europe Equity Research

24 July 2026

Warehouses De Pauw Underweight

WDPP.BR, WDP BB

French scale and lower funding costs drive WDP’s Price (23 Jul 26):€22.74

accretive Argan merger Price Target (Dec-27):€24.00

We present our key take-aways from today’s conference call. European Property

Neil Green, CFA AC

• WDP framed the merger with Argan as a transformational step to build (44-20) 7134-4478

a pan-European logistics platform, extending its “Blend and Extend 2030” neil.d.green@jpmorgan.com

strategy beyond organic growth. The combination creates a pure-play logistics J.P. Morgan Securities plc

and industrial REIT with a c.€20bn portfolio, top-three position among Krishna Sathwik Beechu

European logistics REITs, market leadership in the Benelux and France, and (91-22) 6157 5847

a leading position in Romania, while providing a platform for further krishna.s.beechu@jpmchase.com

expansion in Germany, Italy and Spain. J.P. Morgan India Private Limited

• Win-Win: Argan shareholders gain access to a top-three European logistics

REIT, a ten-fold increase in share liquidity, immediate exposure to WDP's

growth strategy and a 6% uplift in annual dividends, while unlocking

development potential from c.1m sqm of land reserves in France. WDP

shareholders benefit from accelerated expansion in France, increased scale, a

combined €7bn market cap and an enlarged platform capable of generating c.

€700m of annual self-financed growth capacity.

• On completion, the portfolio is expected to deliver a 6.0% net initial yield

based on the transaction enterprise value.The transaction is expected to be

immediately accretive, with management guiding to 3% EPRA EPS accretion