Recently I sold the 11 shares I own in Warehouses de Pauw (WDP). Warehouses de Pauw is a Belgium REIT which is investing in warehouses.
I sold the shares against a price of €163,20. WDP is owning a strong portfolio of warehouses and is having a good solvability, but I consider the stocks at the moment this much overpriced that I closed my position. The last net asset value which was published in june is €76,70 so also the big difference between the share price and the NAV is giving me an extra reason to sell.
As the current announced dividend is €5,20 (3,18% yield), my yearly estimated dividend income will decline by €57,20.
I’m adding WDP to my watchlist as I still believe this is a very high quality REIT, but I will only get back into this stock when the yield will be around 4,5%.
With the current announced dividend of €5,20 the stock will have to be priced around €115 to be considered a buy again by me. This is a decline of 30%
I purchased the stocks against an average price of €94,63 and sold them against a price of €163,20 so the investment in Warehouses de Pauw was a very profitable one. I made a profit of €861,61 including €109,98 in dividends received on an investment of €1.040,89.
So I’m selling one of the winners in my portfolio, but I feel like the valuation of this REIT is way to high at the moment.
With the proceeds from this sale I purchased Albemarle stocks. I will write make a post about this purchase later this week.
Together with the publication of the 2019 interim rapport WDP announced the ambition to increase the yearly dividend from €4,80 to €5,20.
This is an increase of 8,3%. WDP also proposed a 7:1 stock split.
As a result of the 11 shares I own my yearly estimated dividend income increased by €4,40. Yield on cost of my WDP position based on the new dividend is 5,5%.
While reading the half-year report of Warehouses De Pauw (ESA:WDP) I noticed that WDP also did announce a target dividend increase. WDP has the intention to increase the dividend with 6,6% from €4,50 to €4,80. This increase is not yet final, but based on the development of their EPRA Earnings per share.
I own 11 shares of Warehouses De Pauw so this planned dividend increase will result in €3,30 extra dividend income. Yield on cost will become 5,1% for me after this dividend increase. Current yield based on today’s stock price is 3,9%.
WDP is a REIT investing in semi-industrial and logistical real estate mainly located in Belgium, The Netherlands, the north of France and Romania. WDP is listed on the Euronext stock exchange in Brussels and Amsterdam. I have this stock in my portfolio, because I believe in the steady cashflow these kind of buildings are generating and I also believe they will stay in strong demand due to eCommerce growth.
Recently Warehouses De Pauw (WDP) went ex-dividend and I noticed an increase 5,9% increase of the yearly dividend from €4,25 to €4,50 per share.
As I own 11 shares of WDP my yearly estimated dividend income will increase with €2,75.