Warehouses De Pauw: Focus to remain on ARGAN: 1H26 First Take

First-page research excerpt

J P M O R G A N

Europe Equity Research

31 July 2026

Warehouses De Pauw

Focus to remain on ARGAN: 1H26 First Take

Underweight

WDPP.BR, WDP BB

Price (30 Jul 26):€22.36

Price Target (Dec-27):€24.00

Our Take: Given WDP announced a proposed merger with ARGAN last week and

a Trading Update at the same time, there is little incremental news today and we

think investors will largely look through this print. The group's continued leasing

saw stable occupancy as Capex (€500m p.a.), EPS (FY26: €1.60) and dividend

guidance (FY26: €1.29) were all reiterated. Overall portfolio valuations were flat

in 1H, and we didn't see any mention of specific geographic weakness with all eyes

on Romania after CTP’s adjustment yesterday (although think this will be a topic

on the call). Focus will remain on the ARGAN transaction.

Noteworthy Areas: (*) EPRA NTA of €21.4 down slightly on FY25,

predominantly due to the dividend and flat portfolio values. (*) LTV of 41.6%,

net debt to EBITDA of 7.6x. (*) EPRA EPS guidance for FY26 of €1.60. (*)

BLEND&EXTEND 2030 with EPRA EPS target of >€2.00, dividend of >

€1.60.

Outlook & Guidance: Unchanged. EPRA EPS of €1.60 and dividend of

€1.29.

Likely changes to consensus: Minimal at this point, as all focus is on

ARGAN. For FY26, JPMe and BBG Cons are in line with guidance.

Valuation: Stock trades at 14x FY26E EPS, and 4% premium to the 1H26A

reported NTA, and in line with FY26 BBG Cons NTA.

Conference Call Details: Today at 10am CET (here)

European Property

Neil Green, CFA AC

(44-20) 7134-4478

J.P. Morgan Securities plc

Krishna Sathwik Beechu

(91-22) 6157 5847

J.P. Morgan India Private Limited