WDP earnings rise 5% as ARGAN merger heads toward votes

WDP earnings rose 5% year over year to €1.21 per share on an EPRA basis in the first nine months of 2026, the logistics property company announced on October 23. WDP confirmed its full-year outlook as a €790 million investment pipeline and a strengthened balance sheet supported preparations for its proposed merger with ARGAN.

Key Takeaways

• WDP maintained full-year EPRA earnings guidance of €1.60 per share and dividend guidance of €1.29 per share.
• A €400 million capital increase reduced pro forma loan-to-value to 37.5%, compared with 41.9% at September 30.
• ARGAN and WDP shareholders are scheduled to vote in November, with merger completion expected in the first quarter of 2027.

Table of Contents

• WDP earnings outlook rests on leasing and development
• Investment commitments expand the growth pipeline
• Capital increase lowers leverage ahead of the merger
• ARGAN transaction remains subject to shareholder votes
• Conclusion

WDP earnings outlook rests on leasing and development

WDP’s nine-month results announcement showed approximately 300,000 square meters of new leases signed during 2026 through September. Occupancy remained high at 97.2%, while the pre-letting rate for development projects reached 88%.

Those figures distinguish income from the existing portfolio from the future contribution of projects still being developed. Pre-letting gives WDP greater visibility over future rental income, although the execution pipeline has not yet fully translated into earnings.

Management retained its full-year EPRA earnings forecast of €1.60 per share and dividend forecast of €1.29 per share. These remain guidance rather than completed annual results or a newly declared dividend.

Investment commitments expand the growth pipeline

WDP reported €490 million of new investments signed year to date, net of €116 million in disposals, at a 7.0% net operating income yield. Its €790 million investment pipeline in execution carried the same yield.

The investment program also included approximately one million square meters of land positions for future development. That provides scope for additional projects, but land holdings should not be confused with completed, rent-producing buildings.

During the earnings discussion, management emphasized executing existing commitments before accelerating new investment. It also cautioned that progress toward its 2030 ambitions would not necessarily be linear as market conditions change.

Capital increase lowers leverage ahead of the merger

The €400 million accelerated bookbuild capital increase settled on October 2, after the reporting period ended. Its effect therefore needs to be separated from WDP’s September 30 balance-sheet figures.

Including the capital increase on a pro forma basis, adjusted net debt to EBITDA fell to 6.9 times from 7.7 times at September 30. The lower leverage gives WDP more financial flexibility for its investment program and proposed combination with ARGAN, while interest-rate volatility remains a financing and property-valuation risk.

ARGAN transaction remains subject to shareholder votes

Announced on July 23, 2026, the friendly all-share merger would create a logistics real estate group valued at more than €13 billion across eight countries. Both boards unanimously recommended approval.

Voting commitments represented 52% of ARGAN and 18% of WDP. Those commitments support the proposal but do not replace the shareholder meetings scheduled for November 20 at ARGAN and November 24 at WDP.

WDP said the transaction remained on its announced timetable, with completion expected in the first quarter of 2027. The proposed combination is therefore not yet a completed expansion of the group.

Conclusion

The next scheduled milestones are the ARGAN and WDP shareholder votes on November 20 and 24. WDP enters those meetings with unchanged annual guidance and lower pro forma leverage, but the merger remains pending.

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