Inmobiliaria Colonial Stock

Ladies and gentlemen, welcome to Colonial SFL First Half 2026 Results Presentation. The management of the company will run you through the presentation that will be followed by a question-and-answer. [Operator Instructions]

I would now like to introduce Mr. Pedro Vinolas, CEO of Colonial SFL. Please, sir, go ahead.

Thank you. Good afternoon to everyone. We are very pleased to be able to share today the presentation of results for the first half of 2026. As you will see, we believe that they've been very robust. They've been very robust and in line with the strategic guidelines of the company.

I'm on Page 4 with the main highlights that I would like to emphasize at the beginning of this presentation. The main takeaways from this presentation should be, first of all, we're finishing the first half of this year with a healthy gross rental income growth, 5% year-on-year, which means a 4% like-for-like gross rental income growth, with an obvious big spread on indexation. And that is a growth that is obviously also among the highest in Europe, European real estate. We have already data available for the peers, and we are at the top and with a certain gap. So very pleased to see this performance.

This gross rental income growth is translated into a recurring earnings that reached EUR 111 million, again, a 4% growth year-on-year. Translated to EPS, that would mean EUR 0.178. That means that we are fully on track for our full year guidance for 2026. So the P&L going very well.

Balance sheet, also very satisfied. We are going through a disposal program that had an initial objective of EUR 500 million. As of today, EUR 440 million disposals are confirmed. That means 87% of the original program being completed. All of them confirming appraisal values or above appraisal values. And with a strong capital structure behind this execution, in recent weeks, we've seen the confirmation by Moody's and Standard & Poor's of the Investment Grade of the company. That means that the balance sheet gearing in line with the leverage framework that we shared with the market in our Capital Markets Day.

Where is this coming from? This is coming from, remember, our strategic framework. First of all, Prime CBD operations benefiting from polarization. Again, very good data regarding occupancy. In these 6 months, the occupancy has increased 200 basis points year-to-date, going from 92% to 94%. ERV growth, 5%. That means 300 basis points above indexation. And very healthy and good release spread, 9%, mainly driven by Paris, which is a multiyear high, 26%. That's box number one, Prime CBD operations.

Box number two, our Alpha X and project deliveries going very well. 9,000 square meters leased from project deliveries in 1 quarter. Madnum in the final stages of the project, 92% by June 30, as we speak, even much higher. Haussmann reaches 54% let, again, as we speak on the path to much higher numbers.

And as I said, capital recycling on track, disposal program on track. On the acquisition side, it's now already public our acquisition of the super-prime Berlin CBD portfolio, together with the old execution of the EUR 48 million buyback program, which was completed in very attractive terms. That's the main highlights.

The main KPIs, you can see them on Page 5. So again, main takeaways, sustained cash flow growth, 5% gross rental income growth, EUR 207 million. EPRA earnings, EUR 111 million, 4% growth. EPRA EPS, EUR 0.178 guidance confirmed. Behind these numbers, outstanding operational performance, rental growth, meaning what we signed compared with the ERV December 2025, 5%. Let me emphasize 8% in Madrid. Release spread, 9%, let me emphasize 26% in Paris. Occupancy, 94%. Let me emphasize 200 basis points more than 6 months ago.

If we talk about the balance sheet, our asset value growth which again, it's outstanding compared to available information on peers. I think that, again, proving that polarization effect. Net tangible assets, EUR 6.0 billion number. The net tangible asset per share at EUR 9.82, that is plus 1% in 6 months.

And always with a priority of a solid capital structure and a capital discipline before anything else, we have secured EUR 440 million of our disposal program, which had an initial objective of EUR 500 million, so very much advanced and working already on the next level. Loan-to-value 36.7%, down 39 basis points versus December, liquidity remaining at EUR 2.5 billion.

These are the outstanding numbers for the first half. As usual, now we'll go through the details. And at the end, I will come back with some remarks about the future growth. So let's go into the section of financial performance. Carmina, when you wish. Thank you.

Okay. Thank you, Pedro. Let's move into the financial performance, starting with the gross rental income. So gross rental income reached EUR 207 million in the first half of the year, up 5% year-on-year. That growth breaks down into 3 main components. The first driver, our like-for-like Prime CBD operation contributed EUR 8 million or 4% growth. That growth is being driven primarily by a positive release spread on renewals and rental growth on new letting, combined with genuine pricing power across our core markets.

Second driver, Alpha X delivered project added a further EUR 6 million, or 3% growth. This reflects the entry into operation of our recently delivered assets, mainly Madnum in Madrid and Haussmann in Paris, which are now contributing rental income for the first time and will continue to ramp up through during the rest of 2026. And finally, this was partially -- this positive impact has been partially offset by EUR 3 million or minus 2% from disposals, the natural results of an active capital recycling program, as you know.

So put together, the total growth of 5% and combining the operational like-for-like performance with the project contribution, underlying growth reaches 7%.

So digging into the like-for-like number, gross rental income grew from EUR 180 million to EUR 188 million, up 4%. That 4% is composed of 3 drivers: Indexation contributed 1.5%; rental growth premium, our reletting of repricing effort above indexation added 100%; and occupancy gains contributed a further close to 2%, 1.9%. What's particularly relevant here is the spread, as Pedro mentioned before, over indexation, almost 300 basis points, 286 basis points, which is a clear evidence of genuine pricing power. And this outperformance is broad-based in our markets. Barcelona delivered 10% like-for-like gross rental income growth. Madrid delivered 6% like-for-like and it is not here, Paris as well, 3% positive gross rental income like-for-like growth. Versus peers reported ahead as of today, our 4.4% like-for-like growth is well above our peers, as you can see in this chart.

The rental growth, next page, flows straight through to our earnings. EPRA recurring earnings reached EUR 111 million, up 4% year-on-year. First, Prime CBD operation like-for-like contributed EUR 7 million. Alpha X delivered project added EUR 6 million. Together, that's 12% earnings growth, offsetting by EUR 8 million of higher financial costs and EUR 1 million from disposal, netting to the reporting 4% growth. EPRA EPS came in to EUR 0.178 per share, up 4% on a stable share count of 627 million shares. Note that EUR 14.5 million share buyback program and cancellation was completed in the late June. So its full accretive impact on the average share count will show through from the second half onwards. It's not here. This keeps us firmly on track for our full year 2026 guidance of an EPS between EUR 0.34 and EUR 0.35 per share for 2026.

And so in the next slide, turning to valuation. Gross asset value stood at EUR 12.1 billion at June, up to 3.4% like-for-like year-on-year, driven by EUR 282 million from rental growth and project delivery, on top EUR 108 million from yield movement, so yield changes and partially being offset by EUR 169 million of net disposals. By geography, this is positive across 3 markets, Madrid led with 5.8% like-for-like growth, Barcelona at 4.3% and Paris 2.4%. All 3 markets in positive territory, which confirms the diversified pan-European or pan-geographic nature of the value creation.

In capital value terms, Paris stands, as you can see here in the details at EUR 18,000 per square meter, Madrid in the range of EUR 7,000 and Barcelona in the range of EUR 5,000, being in the prudent area according to the transaction, and you can see in the appendix more details about the recent transactions with valuation yields remaining stable across portfolio, 4.2% in Paris, 4.7% in Madrid, and 4.2% in Barcelona. Finally, the EPRA net initial yield, including the available space at market rents show levels between 4% in Paris and 5% in Barcelona, very solid and stable yields.

Finally, the balance sheet, which continued to strength alongside the operational performance. We've secured, as Pedro mentioned, EUR 4.4 million of disposal year-to-date, 87% of the original disposal program, with EUR 383 million already executed and confirming appraisal values and a further EUR 59 million to EUR 60 million committed, including accelerated execution on the residential assets. This execution is feeding directly into leverage. Loan-to-value stands at 36.7%. EPRA loan-to-value at 46.3%, which -- this ratio includes the dividend committed but not paid in June, has been paid after the closing, but it's included in this ratio and this rating as well are not considering the disposal that are committed and under negotiation and not today yet included in this rating.

Our credit profile remains full intact. Both Moody's and S&P reaffirmed our investment-grade ratings in the second quarter, Baa1 by Moody's and BBB+ by S&P with a stable outlook. And liquidity has actually increased despite the disposals and investment activity. So EUR 2.5 billion today, covering debt maturities up to 2029. Cost of spot debt remains contained less of 2%, being the average cost of the first half of the year at 1.9%.

Taking together, rental growth, earnings growth, disposal execution and a strengthening balance sheet, this is a very set of first half results, a very solid set of results. In the following section, Carlos -- you will see with Carlos the details and the fundamentals of the main value drivers behind these results.

Thank you, Carmina. As we highlighted on the Capital Markets Day, our short- and mid-term growth relies on 3 strategic value drivers that is Prime CBD operations, projects Alpha X and active portfolio management. So let's go into section where we are on the different buckets.

On Page #13, first look at the letting performance of our Prime CBD operations. We signed 61,000 square meters. Out of this, two things to highlight, 60%, so more than 35,000 square meters are lettings of new spaces, of empty spaces. Specifically Paris, the 14,000 square meters has been all of them available spaces. So our Prime segment is working very well and generating a lot of demand. Second element in terms of activity, always the Spanish activity because of the more short-term nature of the contracts is higher, and we are securing a lot of future rents through all of the Spanish letting activity, 77% of the 61,000 square meters has been Spain. Paris, we are signing at very high prices, as you can see with the examples at the left-hand side.

And maybe a third interesting element, we are really mission-critical space for high value-add jobs, in particular, tech and AI, 30% of the contracts that we have signed have been in this segment.

If we go to the next page on Page 14, as we've signed a lot of available space, we have had an improvement of 200 basis points year-to-date. So 100 basis points in the quarter, we are at the level of 94%, a very healthy level, and we are progressing quite well on the projects and on the rest of the available space. So a very good speed, thanks to the top product that we have.

If we look at the nature of what we are signing on Page 15, first element, we have achieved a 5% ERV growth in all of the contracts that we signed. Important to highlight that this is compared to December 2025. So it's 5% in 6 months, just in 6 months, 5% outstanding Madrid and Paris with 8% and 4%. And as we said on the Capital Markets Day, we are getting an extra growth premium on the indexation because of the high quality of our product. Blended is 300 basis points. In Madrid, the first half, it has been 600 basis points, Paris close to 400 basis points.

On the release spreads, we are maintaining very high levels, 9%, especially thanks to the Paris portfolio, where we achieved 26% that is an all year high mark, as you can see on the right-hand side. This is the first bucket, CBD operations.

The second bucket of growth, a very relevant part is our project pipeline. We are progressing very well on the 2 delivered projects, the short-term projects that we have to fill. Madnum will fully stabilize, generate EUR 19 million of rents. We have already secured EUR 17 million. As you can see, 92% led as of today and conversations to get quite soon at close to 100%, 99%. Important to highlight that in the P&L as of today, there are just EUR 7 million because these are flowing in progressively as we sign the contract. So we have EUR 17 million secured and just EUR 7 million have been crystallized so far in the P&L. So we are securing future rents.

On Haussmann, we are at half of the asset fully let. This is equivalent to EUR 6 million in the part in our P&L, there have been just EUR 2 million as of the first half. If we look at the total project portfolio, we have also things pre-let, for instance, like Sancho de Ávila and one floor on Scope. We have already today secured an annual amount of EUR 30 million of rents. That is quite a relevant part of the EUR 80 million that we have to get in 2028 to achieve our midterm EPS guidance. On the CapEx, we are remaining with the figures where we had.

Last is the third driver. It's active portfolio management. As Carmina already mentioned, our initial disposal program of EUR 0.5 billion, we have almost 90% done. We are already working on identifying candidates for the additional enhancements of EUR 200 million. And we have also deployed very successfully the EUR 200 million that we guided on the capital market side to be invested, a buyback program in very attractive terms and the super-prime portfolio in Berlin that Pedro will explain with more detail.

So thank you, Carlos. Let me now go through a little bit of final remarks. My first remark, obviously, is about the execution of the value creation strategy. You can see that we are delivering. We have set up a clear framework of where things -- where value must come from, Prime CBD operations, managing and repositioning, Alpha X and Prime factory transformation and capital recycling.

If we go one by one, Prime CBD operations are clearly delivering. Polarization is at stake, it's delivering. And as a consequence of that, we have delivered revenue growth of 4% like-for-like, 300 basis points above inflation, clearly above the peers that are not in our focus. The occupancy has grown by 200 basis points. The rental growth has been in the range of 5% in just 6 months. The release spread has been 9% with record performance in Paris of 26%. And so we are leading the sector, and we are delivering.

And maybe I would like to add in this box how pleased we are about letting activity. You know that letting activity is important for me. Letting activity is not only about the past. It's also about the future. It has to do with next year P&L, with 2 years P&L from now. It has to be about our midterm guidance. Our letting activity has been very strong. You've seen that particularly strong contribution from Spain. When we talk about leasing, we are mainly a Spanish company. That's where our letting activity comes from. You saw a majority of new lettings, not just renewals. And you saw also a great share of technology sector among our clients. So all of this, it's giving us very good framework and expectations for the next year.

The Alpha X is also delivering. It's contributing an additional 3% year-on-year group revenue. Madnum is 92% secured at 30 June. If I should tell you where we are today with the discussions we are having, we are even much higher. And particularly, this will be true for Haussmann that was 54%, June 30, but it's going in the right direction as we speak. And there's scope with the first pre-let secured and increasing market interest. So we are talking about more than EUR 30 million of additional revenues secured year-to-date, covering approximately 40% of the target for 2028. And coming quarters, we will crystallize significant amounts of secured rents.

And the third box is about capital recycling, very much on track. EUR 440 million of disposals year-to-date, 80% (sic) [ 87%] of the target. Enhanced disposal program pipeline identified and progressing. Buyback already an old story, but also executing fully executed. And new acquisition on Berlin super-prime focus with an ungeared IRR of 8% and a strong rental reversion ahead.

Well, all of this, what is telling us is that our guidance for this year is confirmed. You know that we announced also a midterm guidance for 2028 with a significant growth in terms of EPRA EPS attached to it. Everything that we've gone through these 6 months is telling us that this EPRA guidance -- midterm guidance is confirmed.

I would like to share also a few words about the acquisition of a portfolio of prime assets in Berlin. Basically, the things I would like to summarize is you know why we are here. It's about prime. It's not about Berlin. It's mainly that we want to identify where we can put know-how at stake and generate the kind of IRRs that we see here. This portfolio of Berlin, we believe it's super-prime with potential. With potential means that we see capacity of rents going higher, ungeared IRR of 8% to 9%. We see this as a fantastic location, number one. With a fantastic physical characteristics, big horizontal box. But if you allow me, with the capacity of its management to be improved. And we have a plan A, which give us this minimum of 8% to 9% IRR, but we have plans at stake in the midterm to increase additionally the IRR of these projects to 9%, 10%, not on the basis of big CapEx, on the basis of light CapEx with upside in rents.

So I think it's a typical thing that Colonial SFL has been delivering consistently in Spain and in France. And we would like now to deliver this together with our partner, Generali, great partner that we would like to show in the near future in this particular case in Berlin.

On Page 21, you had a few pictures, basically location. It's a great, great, great asset for this portfolio. But most of all, physical characteristics, capacity to outperform in terms of initiatives that would deliver an additional rental growth in the future. So basically, just to summarize, our exposure to Berlin for us is a projection of what we have been delivering in the past in Madrid, Barcelona or Paris.

Finally, strategy and outlook, a big summary. In the end, you know that our bet on prime office is about betting on polarization. It's about securing not only pass-through of inflation, but an additional spread that in the long term has an incredible value. So this recurring EPS of 4% of this revenue growth of 5% year-on-year, I think that is clearly what we want to deliver. As you can see, 286 basis points above indexation.

Letting activity, very important, not only for the past, but for the future with solid rental price increases of 5% in the last 5 months. Occupancy, 200 basis points year-to-date, and projects being delivered as expected, generating additional revenues.

You can see also from this data that portfolio value is growing across all geographies. Spain, slightly better than France, but our France, our Paris being super solid as we expected. Disposal program well ahead of schedule. The amount delivered EUR 440 million, it's in line with our expectations. And let me emphasize again, everything at or above appraisal values. Berlin done, Berlin Ultra Prime acquisition done with attractive ungeared IRR and strong reversion in the future expected and always, always, always leverage levels in line with our framework and strong credit profile. That means capital discipline, always a priority for us. And as a consequence of this, our guidance on track short term and also midterm.

Well, this is the summary of the results for the first half of this year. Thank you, and let's go now for any questions you may have. Thank you.

[Operator Instructions] Now we already have a few questions. The first one comes from Jonathan Kownator from Goldman Sachs.

I have actually 3, but I'll start with 2. The first question seems obviously that letting is progressing well. I just wanted to -- a bit of clarification. It seems your annualized rent-free period went to -- from EUR 19 million at full year to EUR 45 million, and it seems to be driven by Paris. Can you give a bit more color on that, please? Let's start with that, and I'll go with the next one afterwards.

Just a minute, Jonathan. Carlos, you can the question?

Well, as I explained in my part, on the letting activity, we have delivered a very strong quarter. And on what we have today available in terms of Prime product and in particular, also the Haussmann project for the long -- for the short term and also scope, we are progressing and we are receiving a lot of interest. So we are confident, and we are seeing good progress and also have for the coming quarters positive confidence.

I'm sorry, it's not the another question I ask, apologies. It's good to hear, by the way. But this is related to lettings that have been done already and that were done over H1. So the annualized incentives went from EUR 19 million to EUR 45 million, and that is lettings that has been done at H1. And it seems to be driven by Paris because I think Paris is EUR 34 million of that. So have you delivered projects in Paris that Haussmann, or where do the incentives come from, please? Sorry.

I'm not sure if I got correctly the question, but on the...

I can refer you to the press release, if you want. It's in the annualized -- it's the -- sorry, Page 29 in the EPRA net initial yield table. So you have essentially at the end of 2025, you have EUR 19 million of notional rent expiration of rent-free periods, and it's gone up to EUR 45 million as of H1 '26.

Jonathan, I'm sorry. Now we follow you because we didn't understand. Sorry, Jonathan. No, so I think there are 2 questions here. One needs to be adjusted in the EPRA yield, which are the incentives that are booked in our accounts to convert the cash on cash or the P&L yield into cash-on-cash yield. So this is the part of the incentives that is linked to the gross rental income this first half of the year.

And the other is incentives that we are signing with the new contracts in Paris and in Spain. So basically, in Paris, it's true that ImmoStat has raised the data about the incentives, which averaged 30%, with outstanding 40% in La Défense, being in CBD in the range of 18%. In our case, Jonathan, the letting activity for the first quarter that we have been signing in France, which is 8,000 square meters, I think, it's in the average of 16%, so between 14% and 16%, in line with the CBD and according to the quality of our assets.

In Spain remains stable, so 4 months in the range of 4%, 6% max in economic terms. This is the incentives that we are signing this city. The adjustment that you are referring, Jonathan, it's about the incentives of the historical, say, contract base that are booked in our accounts and that needs been adjusted in the methodology EPRA to convert P&L gross rental income into cash-on-cash rental income.

This is the full portfolio and a totally different thing that you cannot tie up is the current first half activity because the EPRA yields cover the full portfolio. But it's very...

It does, but it's not so much the magnitude. I mean, obviously, you do business, you do incentives. We all know that. Is the change from 2025 to beginning of 2026, which is more than doubling. That was really the question.

We'll check the numbers because it needs to be -- normally, as you know, in Paris, the fact that they are long contracts and we have big long contracts like Pasteur, like La Banque Postale as well, this is the most important part of this incentive. But let us check, again, vis-a-vis 2025...

Let us do a specific call where we check this.

Yes.

Hello? Can you hear me? Yes. Sorry, I had a second question. So on the LTV, I'm getting a bit confused, I have to say. So I'm looking at your disclosure, and obviously, you have your reported LTV and you have the EPRA LTV and you have different types of EPRA LTV. But if I look at the magnitude, I go from something like 36% to 49.5%, something like that. So that's quite like 13 percentage points difference is quite very substantial. So can you help us understand really the difference? And I think this EPRA number that you're showing is actually increasing and not decreasing. So how does that exactly work? What's the difference here?

Yes. On the EPRA loan-to-value, included the dividend that has not been paid and has been paid after closing. So for methodology, Jonathan needs to be included as a cash out...

Okay. But I suspect you've paid it by now, right?

Yes. And the payables. And it's true that in this loan-to-value for the -- EPRA loan-to-value, this is a cutoff, I would say. One is basically the dividend, which are coming some days later. And another is the disposal program that are on track and has not been included yet in this loan-to-value in June 2026.

Okay. So where do you think is -- if you include all this, where is this EPRA number when you look at it? And I mean, again, the range, so 36% number already includes all these elements retreated as well?

No, no, sorry, in the 36% by methodology because it's the spot debt that you have at closing and the 1st June, it hasn't include the dividend. It has been paid after the closing, the debt. So basically, the loan-to-value by methodology, it's the net debt spot at 30th of June on the total assets. But by methodology, EPRA loan-to-value needs to include the payables that has been booked not being debt yet that will be...

Carmina, if I may, you also have a pro forma LTV number. And so that pro forma LTV numbers also show 49.4% at Page 30, in the release. But I'm just trying to understand, so is that pro forma number including also all the recent disposals? I think it says that it includes your disposals or does it exclude the recent ones that you've just signed?

Yes. No, very important question. So this pro forma has not included the disposals that is being, I would say, agreed and not executed. So it's not a pro forma and it's following the methodology, and I understand -- I agree with you that could be some misunderstanding. So it's following the methodology, but they are not including any pro forma disposal as of today, which are secured, but not executed...

And so can you help us understand where that number is like if you fully load it and if you do -- I mean, it's called pro forma, but if you do a pro forma, including the disposals that you've done, including the dividend that you paid, like where should that number be you think?

Yes. We stick in the framework that we shared within Capital Market Day. So in this framework, about 45% EPRA loan-to-value, which means at the end, I would say, more prudent levels according as well the rating credit metrics, okay? But yes, including the pro forma with all the disposals that we are managing and the disposals that we are, I would say, now going on. This expected EPRA loan-to-value would be in...

In Germany, is there a cash out that is not included in there either?

Sorry, where?

For Germany, do you have a cash out and is that included or not?

Not yet. Not yet.

So it's not included either?

No.

All right. Okay, I have some more questions, but I'll reach out because they're a bit technical.

Next question comes from Florent Laroche-Joubert from ODDO BHF.

So I would have 2 questions, if I may. My first question would be on Scope. I understand that more and more interest on that building. But maybe could you give us maybe a little bit more color by reminding us maybe when this building is delivered and how it can be late because there are several floors. It's a big building, I think. And so what shall we expect in terms of letting activity for this building?

Yes. First of all, sorry, because today, we're answering a little bit late, but the quality is low and sometimes we don't fully get the answer. I understand that you asked about the progress of Scope. Yes. Scope today is at about 15%, more or less of occupancy and conversations are out there in order to double roughly speaking, in the short term this figure. But you know that when conversations are open, the level of certainty attached to this, it's still low. We have high confidence in the quality of the conversations, but we cannot still attach a number, not even by year-end because that will depend on the conversations over the next few months.

But we're seeing a lot of interest. So let's see in the coming weeks what is happening. But it's generating interest in the asset.

Okay. So that's good to hear. and we will follow up that. And maybe my second question would be about your enhanced disposal program. So we understand that you have identified some assets to be disposed. So shall we expect this disposal program to be executed by the end of the year, mostly in Spain? Or do you think you have some liquidity for some assets in Paris?

Yes. Look, we have several fronts. The first one is residential Spain. This is a process that will -- it's happening across the year -- during all the year. Honestly, it is going very, very well. And as you know, we decided to sell retail-wise and not portfolio-wise because we enhanced the final proceeds from the disposals. So this is progressing very well.

Second, we have different alternatives. Another thing that has worked out very well for us is secondary locations in Spain. That's for us, it's a sweet spot that is working very well for us in terms of disposal values. At the same time, from a point of view of real estate strategy, we are comfortable with. And we keep on looking at things that may be available in Paris, if we believe that the upside is not there.

If you ask me about where do we see a higher probability as of today for the second half, I would say, on top of the residential, probably Spanish non-core would be the next kind of ingredient to deliver the objectives that we highlighted. Now remember, we said first EUR 500 million, which is very much advanced. And then we said we are looking at an additional EUR 200 million, as we speak in order to deliver this. The first one is almost already done in order to deliver the whole objective residential plus Spanish secondary that would be a priority. France always available if the opportunity arises.

Next question, Veronique Meertens from Kempen.

And congratulations on the solid results. Maybe first one comment because I think there is some confusing on your EPRA LTV table it because it states that your LTV, including transfer tax is 49.5%, where it's actually higher than excluding transfer taxes, which obviously, shouldn't be the case. So maybe as a remark, I think that 49.5% is probably or hopefully not the correct answer.

But going to my questions. Maybe first, looking at the building blocks of your guidance for full year. It looks like you're well on track. Is there something we should expect from H2, which makes you not up your guidance for the full year, especially if we still get the impact from the shares being canceled?

Except this one, not a particular one, honestly, Veronique, at this stage, I previously said that, of course, today, the delivery of scope is the next challenge. But to be honest, this does not -- will not have any material impact on the EPS for this year. So I would say that as of today, we don't identify any relevant issue regarding delivery of EPS for this year.

Regarding the LTV, I will pass it over to my colleagues.

Look, we have exactly followed EPRA methodology. So when you go to the layers LTV A divided B, it's really the GAV, excluding transfer costs and proportional. And in the debt, because it's the main difference to the other loan-to-value ratio. We take the financial debt. And in addition, also as EPRA suggested, the net payables. And the net payables include in this -- as of 30th of June 2026, a high amount of net payables that is roughly EUR 200 million of the dividend payment that is not in terms of -- it's not financial debt, but it's net payables. And so the other loan-to-value that also all of the companies published and therefore, we publish its financial debt divided by loan-to-value, including transfer costs that is a going concern loan-to-value. This is doing all of the people in the sector.

And the second we then also published the EPRA loan-to-value, that is the gross asset value, excluding the transfer cost of the lower one, the net one, the liquidation one, and putting this in relation to financial debt plus net payable. So both of them best market practice. And also we have given on both of them, as you know, on the Capital Markets Day, our ranges where we think that it is comfortable that moreover has been then also confirmed just some weeks ago by Moody's and Standard & Poor's. So it's everything in line. If you have some further questions or maybe...

No, Carlos, I think you're -- I'm actually trying to say, the your number should be lower. I think your LTV, including transfer tax, in the table is higher than excluding transfer tax. It should be the opposite. So it looks like you've actually deducted the transfer taxes. So that's why, you get to a very high LTV. So I mean it's a positive. I think the number that's stated there is too high.

Understood...

We can take this offline.

I can tell you, Veronique, if it's a mistake, obviously we will take it as a high priority. And behind it, yes, it's like a technical discussion. Thank you for this contribution.

Yes. Maybe -- sorry, one actual last question. On the Berlin assets. Could you give some color on what kind of rent levels you are underwriting to reach the reversionary yield?

Yes. Look, the Berlin, first of all, the main elements on this. It's 42,000 square meters. It's urban mixed-use. It's not just office, it's a high-end living and retail. The people that know Berlin, Unter den Linden, Friedrichstraße is the best location in Berlin. Clearly, the best location in Berlin. The assets, as of today, they are in correct shape, but there are things that can be done. And they give us ungeared IRR between 8% and 9%. Today, the passing rent is at levels in the high 20s in the current situation, just playing the reversion because these rents come -- this is also a long-term contract market, Berlin, from parts of -- from several years ago, we can achieve between 25% and 30% reversion just by renewing the contracts.

If we do moreover, but this is an optionality. Some of the spaces in the near term, a little bit of light CapEx repositioning, like we, for instance, did on [indiscernible], in recent years, that is just light, we would call it renovation program and not heavy CapEx. We could get more closer to the super-prime rents, the super-prime rents in this area are close to the 50s. So it's almost doubling.

That's why we say, as of today, just as it is, just capturing and renewing the contracts, so pure letting activity management we will get at a reversionary yield of 6% and an IRR ungeared in excess of 8%, between 8% and 9%. But we are aiming for more. If we do these additional optionalities we can get in excess of 9%. Another way to see, it's -- the capital value is EUR 7,000 per square meter when you look at any market data of the prime Berlin market beats a very good entry price.

No, there are no further questions as far as I can see. So I'll give back the floor to Mr. Pedro Vinolas. Please go ahead.

First of all, as I said, First of all, as I said, sorry because we could not listen very well to the questions today. I don't know why. And there were some technical issues at stake like those regarding LTV. So if we'll handle this properly and come back to you if necessary. And particularly, if there's a mistake in our numbers, in which case, we will take action immediately. Thank you for your comments in that sense.

Besides this, honestly, we are happy with the results. They are good. They are better than expected. They are better than the rest. It's -- they are not only looking backwards, but looking forward, meaning letting activity it's good. And everything that has to do with year-end, we are on track. But moreover, everything that has to do with midterm guidance it's good now. And also because of all these questions of LTV, just a very clear statement. The capital discipline, the financial discipline that we set up as a priority and we shared it as a priority at the Capital Markets Day, remains a high priority. So maybe because of the numbers we shared today, if there's any misunderstanding, anything that we've been doing, and I think that we will do in the next -- in the remaining of this year and the next year, is with capital discipline as a priority.

Thank you very much for your attention, and have a good day. Thank you. Bye-bye.

On behalf of the Board, I thank you for your attendance to this AGM. That's done telematically given the law guaranteeing the rights under equality of conditions and accessibility through the use of technological means that are adequate regardless of the place in which the shareholder lives. This format allows us to make the most of the resources, and it's well aligned with the best practices of corporate governance and digital transformation. The notary public that will be attending this meeting is connected to the remote assistance platform. The notary public has full access to the platform through which you will get to know all of the actions carried out by the attendants. And the rest of the Board members will be attending this meeting.

If any shareholder or representative that attends remotely requires technical assistance, you'll be able to connect with the platform service supplier through the assistant channels provided by this platform. This AGM has been called according to the law and the company's bylaws. Given that the announcement of the call is quite large and known by all of you I take it as read unless any shareholder expresses his or her opposition through the remote assistance platform. So we will now verify the compliance with the legal requirements for the valid constitution of the AGM, and I give the floor to the Secretary of the Board.

Good morning. Ladies and gentlemen, as pointed out by the Chairman, I need to verify that we are complying with the legal requirements for the valid constitution of this AGM. The call of the AGM was approved by the Board, and it was published on the 14th of May on the National Stock Exchange Committee's web and on the 15th of May on our corporate website. And on the 16th of May, it was published in the La Manguaria newspaper. This AGM, as you know, is held under its first call. Just like in previous years, we inform the shareholders that this session of the AGM is being recorded, and it's going to be transmitted live through the company's website, which allows us to carry out a follow-up of the general assembly by those shareholders who had not registered in the remote assistance platform. So this recording will be made available to the company's shareholders through our website.

As announced by the Chairman, the Board agreed to require the presence of the notary public, Mr. Jesus Maria Ortega Fernandez, so that he prepares the minutes of the AGM. And I'm going to introduce now Mr. Ortega. The notary public is connected remotely to the AGM, and he has access to the remote attendance platform and he will make a note of the number of shareholders and representatives that attend and in that sense, the votes of the attendant through the remote means. As detailed in the announcement, attendants have been able to send the questions in writing since the 13th of June, and they will be able to do so as well in writing through the remote attendance platform to which they are connected until the end of the speeches of the Chairman and the Board members. The questions or clarifications during these presentations will be answered overly during the meeting. I'd like to remind the shareholders and representatives that are attending remotely the AGM that have been able to issue their vote about the proposals and the points included in the agenda from the moment they have been connected as attendance to this AGM. And if they have not done so beforehand, they can do so through the remote attendance platform until the -- we end the summarized reading of the agreement proposals. From that point of view, the shareholders and representatives who want to vote against or abstain with regards to one or men or more or all of the proposals in the agreement or inform about their leaving the meeting, they should communicate through the remote attendance platform if they have not done so already. On the other hand, I'd like to inform you that, as we have said in the AGM announcement, those -- whenever there is a conflict of interest, the representation will be given. If the representative has not given specific voting instructions, they will be given to the Secretary of the AGM. And we would like to inform the shareholders that the announcement of the AGM, the full text of the proposals of the agreement and the reports approved by the Board and also the rest of the documents and information required by the law or the bylaws, they are -- and they have been available in an uninterrupted way on our corporate website since the 15th of May of this financial year.

Next, I will inform about the data of the attendance quorum in order to verify the valid constitution of this AGM. Each one of the shareholders can see projected on screen these data. There are, in the AGM, 87 shareholders who are holders of 219,755,076 shareholders equivalent to 35.03% of the equity represented in the AGM. 134 shareholders who have 257,673,131 shares equal to 41.07% of the share capital. And in all, we have 15,691,533 shares equal to 2.50% of the share capital. According to what has been just previously said, the equity is 1,103,578,000 represented by 477,418,207 shares, which is equal to [ 76.01% ] of our share capital. So according to this, the attendance quorum is above the subscribed share capital percentage demanded by the bylaws for the value constitution in its first call of the AGM in order to deal with the issues included in the agenda.

So I'd like to tell the shareholders that the final list of attendance has been registered in the remote attendance platform, and it will be finally reflected in the notary's minutes.

Okay. Once the shareholders have been informed about the attendance quorum, we declare validly constituted the AGM of our company in its first call in order to discuss and adopt the agreement about all of the issues included in the agenda that will be voted.

So I give the floor now to the notary public so that he asks the attendance if there is any reservation or protest about the -- what has been said about the number of shareholders or the capital that's present or represented.

Thank you, Mr. Chairman. Now that we have a quorum of the attendance and the valid constitution of the AGM according to the law, I inform the shareholders and representatives that if any attendant would like to express some reservation of protest about the valid constitution of this AGM or about the global data that have been expressed, they will need to communicate to me through the remote attendance platform that has been available. So that -- if so, it will be included in the minutes that will be issued about this AGM.

Thank you, Mr. Notary Public. Thank you, Mr. Notary Public. Next, the Chairman and the Chief Executive Officer, will inform about the most relevant aspect of the company.

Mr. Chairman, you have the floor, sir.

Good morning, everybody. Ladies and gentlemen, in a very succinct way, let me explain which have been the main fact about the financial year we have just finished and also the context in which this -- it has all been developed, and the Chief Executive Officer may give you some greater details to what I've said.

The financial year 2025 has been marked by a very demanding environment, characterized by the volatility of the financial market, the geopolitical tension and more restrictive financing context. In this context, Colonial SFL has shown the robustness of its business and model and the resilience of its assets. We have ended the year with a very -- with very good figures complying with reaching our goals and consolidating ourselves as a leading platform of prime offices in Europe.

The net profit was EUR 344 million, 11% above the previous year, whereas the net recurrent was EUR 211 million, with a growth rate of 9%. The net recurring profit per share was at EUR 0.336 on the highest end of the guidance, confirming the group's capability to comply with its commitment with sustained growth. And income per rent of EUR 399 million, reaching a growth rate of 6% in comparative terms, like-for-like as we say in Spain, promoted by the prime asset portfolio, the capacity to capture rent increases in strategic position.

We have reinforced our financial position, accessing successfully the financial markets with issues of bonds with EUR 1.3 billion in a complex environment, which shows the confidence of the investors in our risk profile. This has allowed us to maintain position of liquidity and a financial cost that's very advantageous.

We have made headway significantly in our divestiture program, going above EUR 300 million in operations at prices that are well aligned or above the assessment. These appraisals have reinforced our balance sheet and to reduce our leverage, positioning the debt over asset ratio of 35% and reducing our net debt by more than EUR 200 million with -- reinforcing the group's financial flexibility.

I'd like to highlight the continuation of the integration of Colonial SFL marks the start of a pan-European growth based on operational excellence and leadership in sustainability. We want to maximize the value of our portfolio and capturing investment opportunities with very attractive profitability rates.

2025 as a whole has been a year in which in spite of an adverse environment, Colonial SFL has had a strong position combining operational growth, financial discipline and a prime portfolio that shows its capability to generate value in a sustained way.

First of all, I'd like to highlight our commercial activity with more than 147,000 square meters during the year, better than years, generating EUR 64 million additional rent, which implies an increase of 22% compared to the previous year. This growth rate reflects the enormous demand of high-quality spaces in strategic locations.

Secondly, we have captured a very relevant growth rate. Prime portfolio had growth rent of 7%, with special dynamism in Barcelona and Madrid in the fourth quarter of the year, whereas in Paris, the rents in relet services increased by 16%. This showed the pricing power of these assets and Colonial SFL's capabilities to generate growth in any place.

Another key aspect has been the evolution of the value of our assets. The gross value of our assets increased until EUR 2,294, a growth of 3% in comparative terms of like-for-like, whereas the net value of our own equity NDA and the rest reached EUR 6,085 million equal to EUR 9.70 per share, which shows Colonial SFL's capability to generate value in a sustained way based on the quality of its prime portfolio and its strategy focused on the best locations in the European markets.

We have also kept a highly selective investment policy based on opportunities based on the asset's profitability, whose attractiveness improves the average profitability of our assets and increases the profitability for the shareholders. We have diverted more than EUR 200 million to strategic investments, reinforcing our bet for segments with high growth potential like science and innovation. As a whole, these elements reflect a business model that's solid, dynamic and geared towards growth that allows us not only to obtain consistent results, but also to position ourselves in an optimal way to capture new opportunities in the next few years.

The results of 2025 leave us with the structural strengthening of our business model of our prime portfolio in Madrid, Barcelona and Paris. We have grown above the market average, accompanied with a strong commercial activity, the generation of the divestiture program and the reduction of the loan-to-value independence value over assets that allows us to face 2026 with greater flexibility and strength in the future.

So we start 2026 in an environment that's still marked by geopolitical and financial uncertainty with new international tensions in the market. However, Colonial SFL start out from a very solid position that allows us to face this new phase with great confidence. Our strategy is based on 3 main pillars: financial discipline, prime focus and selective growth.

First of all, we keep a rigorous management of the balance sheet with solid metrics and well-controlled financial costs in order to keep it below in 3% in the next few years. The optimization of our financial structure will keep on being a priority.

Secondly, the group continues making headway, the execution of the divestiture program, which allows us to keep on getting rid of nonstrategic assets, improving our portfolio. And as we analyze new investment opportunities in strategic markets.

And finally, the group will keep on promoting growth through regeneration programs of high-quality assets adapted to the new needs of our customers in a context and will -- in which the demand for prime products is still very solid. As a whole, our strategy, financial discipline and gearing towards growth, which allows us to keep on generating value in a sustained way even in highly complex environments. We keep on making headway in our commitment, ESG, betting on energy efficiency, a reduction of our carbon footprint and complying with the highest sustainability standards. Colonial SFL shows its continued support to the world United Nations pact and also the renewal of its commitment with the 10 principles that are referenced with human being -- human rights, labor rights and the fight against corruption.

The current market context marked by volatility and uncertainty makes significant challenges for the real estate sector, but it also opens up interesting opportunities for companies with a solid positioning like Colonial SFL. In this environment, we observed a trend of concentration of demand in the main European urban cores in our traditional markets, Madrid, Barcelona and Paris, to new opportunities in cities like Berlin or Munich, where capital is going in a sustained way. Our role in this context is a clear one. We offer product with the highest quality and to respond to the new dynamics.

Colonial SFL counts with a prime asset portfolio that's perfectly adaptable to the needs of companies that have looked for strategic positions and location deficiency and sustainability. In addition to highly volatile scenarios, there are new opportunities for attractive investments or financial solidity, and our discipline allow us to approach these opportunities in a selective way with a long-term vision and always prioritizing the creation of value.

To sum up, we believe that the market is coming into a new phase in which the prime product will be very relevant. In this context, Colonial SFL is in a privileged position to keep on leading the real estate European sector, capturing opportunities that are generated in the next few years.

And now I'm going to talk to you about the second part, i.e., agreement proposals. The agreement proposals that the Board present for the approval of the AGM is well aligned in general terms with the ones approved in previous years. Allow me to highlight the main novelties grouped into 3 blocks.

The first one. In terms of capital and funding, we propose a reduction of our equity through the monetization of our own shares in order to optimize our company's capital structure beyond -- thus improving the value per share of our shareholders, also the renewal of the past to the Board to issue convertible bond into new actions, into new shares and values, instrument that gives the company the needed flexibility to take advantage of market opportunities in an agile way.

Secondly, in terms of corporate governance and appointments, we want the reelection of 2 Board members, Pedro Vinolas Serra, CEO, and I myself, looking for the stability in the management of the group. And additionally, we present the approval of the change of the rules of the AGM to adapt to the current name we hold.

Thirdly, in terms of remuneration and incentives, we want the approval of a new remuneration policy of the Board members for the next 3 years, which is -- it's a continuation of our current policy and the new incentives long-term plan, which implies giving shares from the company to align the interest of the management with the creation of value for the company long term.

In addition, in addition to the previous proposals, we present to the AGM, the distribution of a dividend of EUR 0.32 per share, thus increasing the amount to be distributed compared to the previous year. For this, the Board has valued the reasonability and consistency of the dividend. This increase reflects the solidity of the group's result and our will to keep on aligning the distribution of dividends to the shareholder with a sustained creation of value. The Secretary of the Board will give greater color to these proposals that will be presented for the approval of the AGM.

In terms of corporate governance, I'd like to mention especially the most relevant aspects with regards to this. Since the last AGM and some aspects of our governance model and a follow-up of a recommendation of the good governance code, Colonial SFL has always been committed with good governance -- good corporate governance and has tried to comply with the highest standards of ethical -- of ethics and transparency as is shown in our sustainability memo, which is available in our company's website. The best indication for this commitment is reflected in the fact that at the end of 2025, out of the 58 recommendations of the good governance code, our company complies with 56 of them. This level of compliance, which is above 96%, reflects the very rigorous and constant work carried out by the committee. The 2 recommendations that have not yet been complied with respond to specific circumstances that I will explain shortly next.

Single commission for work visions and appointments. It is considered to -- we believe we need to keep on having a single appointment and remuneration to be given that the structural dimensions of the company would not be efficient to separate its competencies in 2 different committees. I'd like to highlight that the existence of a single commission favors the coordination of the faculties and tasks to be carried out and that under no circumstances, it actually hinders our legal requirements. And it limits cost with additional revisions for the Board members. So it is concerned not to be necessary to carry out this separation.

And the amount of independent Board members. Although the percentage is not yet 50%, the company believes that given the structure of the company as of today, the representation and typology of Board members is wide so that the interests are well represented in the management Board. And talking about the composition of the Management Board, there have been changes during 2025, during the first half year of 2026. The Board is composed of 13 members, which are with a clear separation of tasks between the Chairman of -- the Non-Executive Chairman of the Board and the CEO with the Board through the Committee of Appointments and Retributions has a succession plan for the main posts of the Board, thus guaranteeing the continuity and stability in the company's governance.

With regards to the committees, on the 16th of April 2026, the Board agreed appointing Mr. Manuel Rocha as a new member of the Executive Committee. On the other hand, I'd like to highlight that the level of individual attendance of the Board members to the Board meeting, which was above 98% in 2025. This shows the full commitment of all Board members of the company.

And next, allow me to highlight in terms of diversity of the group which we keep an additional financial year. The number of women in the Board out of the total members represent currently 46%. Therefore, just like in previous years, it is still above 40%, complying with our duties in terms of gender equality. The 3 committees are chaired by women. 50% of the post in the high management are led by women, which shows the company's real commitment with the gender equality of the company. This data confirm that diversity in Colonial is a main tree of its governance and not just a goal to be under 2 and it shows the stability of it.

And let me inform you that Colonial SFL has a channel of denunciation that's fully available both for employees and third parties, whose functioning is supervised by the Audit and Control Committee in order to guarantee its independence and efficiency complying with the whistleblower identity. And in 2025, the Board approved new policies, and also the update of the policies that already exist, such as the human rights policy that well aligned with international charter of human rights of the United Nations and the basic nondiscrimination and diversity policy.

To conclude this chapter, let me tell you that the beginning of the financial year, we assessed the functioning of the Board, of its committees, the Chairman of the Board, the CEO and the Secretary of the Board with an excellent result in all cases. And for that, we have had the advice of the external and independent adviser [indiscernible]. And the Board has the composition and the right capabilities to approach and face the strategic group challenges, regardless of the fact that the assessment of -- the assessment will be followed up during the next financial year.

And finally, allow me to devote a few minutes to the group's sustainability policy, which is one of its main pillars. It's articulated through the Sustainability Committee, and its functions include to promote strategic plans and goals to assess the progress and highlight the importance of sustainability before it's reviewed by the Control Committee. From an executive point of view, the committee, which is composed by Management Board members, it assures the operational implementation of the policies issuing from the Board and the sustainability committee, which shows that sustainability is crosscutting priority that permeates Colonial SFL's daily activities.

Ladies and gentlemen, with this short summary about the proposal for agreement of our governance and our sustainable management of the group, I have shown you a faithful image of our company.

And now I give the floor to the CEO, who will be talking to you to deepen on some very relevant aspects about the company. Thank you.

Hello, and good morning, ladies and gentlemen, and gentlemen, shareholders. Thank you very much, Mr. Chairperson. I would like to start with some previous considerations before presenting the results for year 2025.

Since 2021, as it's well known, one have to underline the political conjuncture that we have had to navigate. We've gone through important geopolitical, financial and economic turmoils, and one should add that some of these elements have had a direct impact on our sector and to Colonial, more in particular, I am referring, for example, to the systemic increase in interest rates or the questionment of the future of remote working. This, of course, has had an impact on our sector.

The products or the relevant element that one has to underline this context is that our sector and companies like Colonial, and more in particular, Colonial, will have to respond to this circumstances. And we've done so with a very robust performance in our activities, whereas in the investment and the capital markets, well, prudence has prevailed -- a logical prudence has prevailed. Colonial's trajectory has been very strong in this last year, and I think that the year 2025 is no exception, and it is once again a year where we have shown our DNA again.

Let me start by reminding what Colonial is. Colonial is a company with a very simple position, and we are focused on prime assets. And of course, always in a very central location with very high sustainability standards amongst other standards. What I would like to underline regarding this position means that this is a well-thought position. I mean it's the result of a predefined strategy, a long-lasting strategy that looks at this position and understands this position as the best possible way to respond to the challenges ahead.

We do not only look for the best possible quality of our assets, but also the more robust capital distribution that, of course, leads us to a very high ranking in -- or by Moody's and other rating agencies, AA1 in the case of Moody's. This belief in the robustness of our assets shows in the locations we choose, the locations we select that are remarkable. And I would like to underline the activity of our clients because we don't limit our actions to our assets, but also to our clients.

We have been able to develop a magnificent portfolio of assets. We are not collectionists of the best possible assets out in the market. We're not a passive company. We aim at having a proactive attitude in terms of value creation. More than 90% of our assets have been directly promoted, developed by Colonial or has -- or they have been refurbished and thus repositioned. So behind our strategy, there's a very proactive value creation, proactive strategy.

Having said this, allow me to share a few summarized facts about the results for 2025. In 2025, I believe the excellence -- that results have been excellent in many areas. The revenue of the company has reached EUR 399 million, and what's even more important, with a comparable growth of plus 6%, which, as we'll understand later, is way above inflation and also way above the comparables in our environment. This performance of revenue has also turned into an increase in our profit in plus 9%, EUR 211 million, EUR 0.336 per share from an EPRA scope. And behind this, there is an important revenue increase and very high occupation levels. This positive behavior also translates into an increase in the value of our assets, which is now at EUR 12.2 billion with a growth of plus 3% in like-for-like, and this brings us to a total net tangible asset assessment, which is EUR 9.70 per share at the end of year 2025, and this basically entails a moderate growth of plus 1% compared to 2024.

This year, we have also undergone a significant capital rotation. We've sold more than EUR 300 million, also reaffirming the assessment value. All our transactions have taken place above the assessment value in a framework of prudence in our capital strategy. The loan-to-value by the end of 2025 was at 37.1%, [ 100% ] basis points less than the year before, and with a financial cost, which is extremely moderated, below 2%.

Allow me some additional comments about the strategic position behind these results. As I said before, we come from a period from a few years that have been marked by the crisis and the revisitation of the real estate model that shall respond to social evolution and the new remote working patterns. The new model that started with the COVID crisis led to the discovery by many companies of the strategic value of prime locations where they are hosted, and this has turned into a pronounced totalization trend of the well-differentiated markets.

One, which is the one we're interested in, the landscape where those companies who are more interested in converting their best values, retaining talent, taking care of their teams. Well, they have clearly embraced prime locations and prime assets where they can respond to their priorities. And this quest for the best possible product -- this search for the best possible product has, of course, turned into a scarcity in the market because there are more and more interested companies and less available product -- less available high-quality product. And this mismatch between offer and demand has translated into an important growth in revenue and a sustained one. This dynamic, unfortunately, is where Colonial has always been -- we've always been positioned in this segment. And as a result of that, during the year 2025, we've been able to benefit from this market trend.

So as a result of the above, the product evolution, our prime product evolution, shows a clear evolution of our income, a significant one, with occupation rates which are extremely remarkable. Occupation rates that, as you can see in the next slide, are around 100% or close to 100% in all our assets with very high turnover rates, and with an income growth, in the case of tariffs, 9%; Madrid, 6%; and Barcelona, 5%.

So our behavior in year 2025 has been extremely satisfactory. The evolution of the income produced by the company is extremely remarkable. In the year 2025, we reached EUR 64 million, which means 22% more compared to the year before. The hiring activity has been around 150,000 square meters, and there's also been a remarkable increase compared to the year before. And this has taken place in all the markets where we operate, Paris, Barcelona and Madrid, both in terms of square meters and million -- and millions of years signed.

In Paris, our assets are behaving extremely well in our main assets. We've seen record income that go above EUR 1,000 per share in many locations, some are growing significantly compared to the market prices of the year before. And here, we can see a few examples of what I've mentioned. The same applies to Madrid and Barcelona, the dynamic in year 2025 has been extremely positive. The revenues within year 2024 were EUR 32 million. One year after, by the end of 2025, ramped up to EUR 42 million. This entails a growth of 25%. All in all, to say that the most relevant data or the summary of the situation is growth and growth. The revenue growth in year 2025 has been plus 7% compared to the year before. We have accelerated our growth compared to 2024 when growth was stagnant at 5%. So we're speaking about plus 200 basis points. And this growth has happened also in all our markets. This plus 7% corresponds to a growth of 9% in Paris, 6% in Madrid, and 5% in Barcelona, so the average is 7%.

I would like to underline that amidst this dynamic of existing products or additionally to this behavior, there has been a very positive contribution of new projects on which the company is working in a recurrent way. I would like to refer to Madnum, an asset which was called to be the challenge for year 2025 and which closes year 2025 and start 2026 with a remarkable success, both from a business perspective, while we closed 2025, having sold 2/3 of the capacity. As we speak, there are discussions to ensure the full occupation of the asset. We are at above 90% of an occupation rate in this new asset.

Beyond the data, beyond the anecdote, I think there is a qualitative nature of the project that has to be underlying. We are speaking about an urban transformation program, it's a belief in a new Madrid location. It represents -- Madnum represents a belief in a year's mix, in a high-quality typical Colonial asset looking for a plurality of elements contributing to the best possible customer experience level. So we are extremely satisfied about the recognition this asset has produced. All these elements have translated into the financial data that we are presenting today.

Allow me to start by the gross revenue of the company, which in comparable terms, have increased from EUR 256 million to around EUR 400 million in comparable terms. This entailed a growth of 6%. I would like to underline a few items regarding this 6% growth. One, we go far beyond price evolution. When we live in a society where inflation is a relevant financial KPA, one of the relevant questions in all business sectors and also in the real estate sector is if our sector would be capable of protecting our shareholders from inflation, negative consequences. And this has clearly been the case as, I have already mentioned before, in this new context, which is already lasting for 3 years, also year 2025, our revenue increase has grown far above inflation, which, from a value proposition perspective, for a company like Colonial is fundamental. If we project this at the long run, it's an incredible value in our portfolio.

And the second element I would like to underline is that this is not the easy thing to do for companies. A growth of 6% is not, and is it a rich milestones for comparable companies perhaps less well positioned than Colonial that have closed the year with relevant growth rate yet below ours.

If we move now from a revenue analysis to a profit analysis, the dynamic is quite similar. The recurrent result of the company, which was below EUR 200 million at the end of 2024, EUR 193 million. 1 year later, we are at EUR 211 million, a growth of plus 9%. And from a profit per share optics, which I'll speak about EUR 33.6 (sic) [ 0.336 ] per share in the high segment of the guidance we communicated to the market during 2025. And this is the most remarkable about our results. We shall also pay attention to the evolution of our assets and liabilities. The gross value of our assets grows above EUR 12 billion.

So this represents a growth of 3% compared annually. And this is a relevant figure. One shall also recall that since the systemic transformation of the interest rates, which had direct consequences in the real estate market and more importantly, on the demanded returns, well, the mandate yields in real estate assets have raised up to 100 basis points, a little bit less in Spain, a little bit more in Paris. And this, of course, represents a devaluation of the assets, an immediate devaluation of the assets. So in this environment, we shall underline that 2025 was a recovery year, a humble recovery year in the value of our assets after this systemic evolution of real estate yields.

When it comes to our liabilities, there has been an improvement in the most relevant KPIs and the most relevant characteristics of our debt have been well maintained. The total debt of the company has decreased. Our loan-to-value has decreased significantly. But perhaps in second and in third place, I would like to underline that this has happened in a high-quality framework, our debt, thanks to a proactive management.

Well, today, we are paying lower costs than -- lower than 2%, which is, of course, far below the normal market cost. Additionally, we do so in an environment with a lot of liquidity, more than EUR 2 billion of cash flow and our debt for 2026 and 2027 is covered 1.6x. So the debt, Colonial have is high quality. So this high-quality debt class, the above mentioned is recognized by rating companies, which for quite a long time now are offering us systematically an investment grade in the BBB+ in the case of Standard & Poor's, and this reaffirms the Moody's assessment, which allow this data to be recognized by the market.

So as I said before, this is one of the main characteristics of our capital structure for 2025. I would also like to inform you that if we project this figure towards the long run, we can look at the future with a great bit of optimism. With regards to this area, the liabilities, if today's liability is below 2%, and we project this liability with a known data from the market in the year 2025 will be in a very competitive landscape and way ahead of the market.

In 3 years, we'll be paying a debt cost below 3%, which is quite good. So we've talked about assets, liabilities. We've talked about the results. So all in all, to say that this year, for 2025, we will be showing moderate growth, yet there is calm in all areas, revenue, EBITDA, occupation rates, profit and profit per share.

And from this perspective, allow me to do one last reference to what this means for shareholders. Our sector is a rapidly changing one. And today, the profitability per dividend is a fundamental element of the remuneration policy to shareholders year 2025, the revalorization of shares increased or rather went above 10%. So half of this 10% was distributed in dividends, and this has brought an added attractive to the company for any shareholder thinking to invest in it.

In this sense, the dividend that will be presented this year, EUR 0.33 (sic) [ 0.32 ] per share is framed in a historical dividend growth dynamics, which is growing uninterruptedly since year 2026 -- 2016, sorry. And the Board decided to exercise it with the possibility of cancel one owns action, which positioned the payment policy at a very interesting point. And this would be the main remarks regarding 2025. I would like to do a short reference to our vision, our midterm vision.

As I said in my previous remarks, we shall all remember that Colonial has been able to position itself where it has to. First of all, let's say that cities in Europe are still vibrant. It's where things are happening. Cities are growing even more than the countries where they are hosted. So it's only in cities where we obtain the response to the demand, right, of the citizens and the new patterns out there in the economy.

And as I said earlier, with regards to jobs and to offices, it translates into a certain polarization and a search for the best possible locations, and in this pattern, Colonial has been able to position itself as a company in a very peculiar way today. Colonial is a dominant actor in Europe and more importantly, in France and in Spain in prime locations in reference European cities. In fact, we are amongst one of the few companies with international exposure. And as I said earlier, with a well-consolidated urban transformation approach, Colonial's strategy has traditionally been framed in 3 pillars.

First of all, a proactive management approach of our assets. As I said in my previous remarks, we are not passive collections of our assets. We look for a permanent value creation approach. Secondly, and on this ground, on this very robust ground, we look for an additional added value layer leveraged on new projects, the ones we call Alpha project. We are now immersed in Alpha X projects. The X is -- or represents project #10, and we hope that more to come. And then we look for additional product to incorporate into our portfolio and bring added value.

And the third pillar is asset rotation, which has been seen in year 2025, has proven to be a good strategy, selling at interesting prices, what we've rotated in the market. So these 3 pillars, if we look at the midterm and long-term projection, I would like to refer to the second pillar on Alpha projects. Alpha project will be a central element to contribute to value creation in the next 3 years.

This value -- that is projects, sorry, are called to produce a total revenue of around EUR 100 million -- more than EUR 100 million. The first of these projects have already been delivered the Madnum which was the main challenge of the company for 2025. The rest will no doubt contribute to our accounts, to our results in the next years with more than 10,000 extra square meters.

And from a financial perspective, this should contribute to a profit per action to the projected profit per action in the near future, which shall be around EUR 0.11 per share. On the ground, we are forecasting a year 2026 that shall be framed in the historical growth of the profit per action dynamics, and we have communicated the market a guidance for the closing of the year of between EUR 34 (sic) [ 0.34 ] and EUR 35 (sic) [ 0.35 ] per action.

If we look beyond, what we look at is a sustained strategy of our profit per action. More recently, we have carried out the Market Capital Day. When we communicated to the market our estimates, our profit estimates in the mid-run, which we estimate at between EUR 31 (sic) [ 0.31 ] and EUR 34 (sic) [ 0.34 ] per share by the end of 2028 which represents an aggregated growth of around 25%. Colonial and comparable companies are companies where dividend plays a relevant role.

We estimate that the mix element composed by dividend plus the expected flows growth to position the total remuneration for shareholders above 10%. All in all to say that as the Chairperson said before, year 2025 has been a very positive year, especially because Colonial has had to operate in a very adverse context that we believe we've been able to manage. And we also want to convey a message of hope and trust and belief in the future evolution of our results. Thank you very much.

[Interpreted] Well, thank you. So once the different speeches have been made, we will inform the AGM about the questions sent in writing by the shareholders, and we will define them -- we will identify them previously before the reading. We inform you that the information or questions asked will be answered by the Chairman, the CEO or any other Board member. Okay. So now we shall proceed to reading the different questions asked. There has only been one question by [ Mr. Juan Jose Tamara Hulara ] and I shall read it next. I'd like -- [ Mr. Tamara ] would like to know what is the dividends policy in the company, short, medium and long term? Mr. Vinolas, you have the floor, sir.

[Interpreted] Thank you very much indeed. This is something I have described in my presentation. Well, let me make 3 or 4 comments about it. First of all, the dividend policy, I mean, is proposed by the Board to -- and it is presented to the AGM for its approval. But there are some additional comments I'd like to make about it. First of all, socimis a bit in general are companies whose structure is designed for a massive distribution of the profits generated.

And on the -- from this point of view, let me send you a comfort message. Colonial's dividend policy will always need to be a policy devoted to distributing most of the profits that have been generated. Additionally to this, let me add that as we have seen in the presentation, we have looked historically for the fact that these dividends have a growing trend. It should -- they should have a growing or upwards moving slope.

And nowadays, we work with expectations -- growth expectations of the earnings per share medium term of 20%, which is at about EUR 0.40 medium term. If these were confirmed, and of course, we are awaiting the different geopolitical events that can always affect our forecasts. But if these were confirmed, we need to wait in -- under normal terms, a growing dividend that's well aligned with a high payout policy over the profit forecasted for the future. Okay. Given that there are no further questions...

[Interpreted] And there has just been one question by [ Mr. Kamogo. ] We will now proceed to the voting of the different points in the agenda. And I give the floor once again to the Secretary.

[Interpreted] The agreements that are presented to the voting of the shareholders are the ones suggested by the Board to the AGM. So from that point of view, we'd like to say that no shareholder has used his or her rights according to Article 519 of the Capital Company Law to present proposals that are different from the ones presented by the Board. And there has been no inclusion of additional points in the agenda.

So the voting of all of the agreements will be carried out according to what's foreseen in Article 22 of the rules of our AGM through a negative deduction system. For that, we believe that we would take as favorable votes, all of the shares presented or represented. Deducing from that, the votes made -- the votes belonging to the shares whose owners or representatives expressed so through the remote attendance platform as being against or their abstention. The votes whose holders have voted against, in white or have abstained previously before the AGM through the channels, the remote channels made available to the shareholders or the votes whose holders or representatives have abandoned the meeting before the voting, and they have led the notary public know that -- what the vote was through the remote attendance platform.

The period for the issue of the voting about the proposals in -- the points in the agenda will be summarized at the moment the voting is done according to Article 22 of our AGM. I proceed for greater agility to carry out a summarized reading of the agreement proposals presented to the AGM. Point #1 in the agenda, we present for the approval of the AGM, the individual annual accounts and the company's management report duly audited for the financial year that ended on the 31st of December 2025 and also the consolidated annual accounts and the consolidated management report of Group Colonial SFL duly audited for the financial year that ended on the 31st of December 2025.

Point #2 of the agenda, we present for the approval of the AGM, the proposal of applying the result belonging to the financial year that ended on the 31st of December 2025 and also the approval of the distribution of the dividend of EUR 0.32 per share.

Point #3 of the agenda, we present for the approval of the AGM, the management of the Board and its Chairman and CEO during the financial year that was closed on the 31st of December 2025.

Point #4 of the agenda, we present for the approval of the AGM, the reduction of our equity with charge to reserves for a nominal amount of EUR 36,250,000 through the amortization of 14,500,000 shares of EUR 2.50 of nominal value each one of them, which represent 2.311% of the company's share capital.

Point #5 of the agenda, we present for the approval of the AGM, the authorization to the Board to issue on behalf of the company once or in different times for a maximum of 5 years, convertible bonds or the obligations that can be turned into new shares -- into new company shares or other values that can give right directly, indirectly to subscription of shares by the company with the expressed attribution of the fact that to exclude the right to preferred subscription, leaving this for a nominal maximum amount as a whole of 20% of the share capital.

Point #6, we present for the approval of the AGM, the authorization to the Board for the reduction of the call terms of the extraordinary AGMs according to what is said in Article 515 of the capital law. Point #7 of the agenda will present for the approval of the AGM, the reelection of Mr. Juan Jose Brugera Clavero as Board member of the company as another external one. And we present to -- for the approval of the AGM, the reelection of Pedro Vinolas Serra as Executive CEO of the company.

Point #8 of the agenda, we present for the approval of the AGM, the remuneration's policy for Board members in 2027, 2028 and 2029.

Point #9 of the agenda, we present for the approval of the AGM a new long-term incentives plan for the delivery of company shares.

Point #10 of the agenda, we present for the voting of the AGM as a -- with a consultative character, the annual report about the Board members' remunerations for 2025.

Point #11 in the agenda. We present for the approval of the AGM the amendment of Article 1 of the ruling -- the rules about the AGM in order to adapt its writing to the new company's name.

Point #12 in the agenda. We inform the AGM about the change of the company's Board -- the company's Management Board rules in order to adapt its writing to the company's new name.

Point #13 in the agenda, we present for the approval of the AGM. We give the right expressly to the Chairman of the Board, the CEO, the Secretary of the Board and the Vice Secretary of the Board to elevate public and develop and implement the previous agreements. Right now, we conclude the voting period of the proposals of the points included in the agenda, given that the AGM has been constituted validly in its first call with the presence of shareholders, which represent more than 50% of the company's capital -- of the share capital, the proposals will be approved by a simple majority of the votes of the shareholders present or represented.

However, points #4 and 5 of the agenda demand for their approval, a reinforced majority, and they will need to be approved by an absolute majority of the votes of the shareholders present or represented. On the other hand, point #6 in the agenda demands for its approval, the favorable vote of at least 2/3 of the share capital with voting rights.

And next, we will inform the shareholders about the result of the votings that have been proposed, expressed by the Board based on the votes issued by the holders or representatives of shareholders. Each one of the shareholders can be -- the results projected in the screens. Point #1 of the agenda. With regards to the approval of the individual annual accounts approval and the management report, there has been a 99.96% of votes in favor. With regards to the approval of the consolidated annual accounts and the consolidated management report, there have been a 99.96% votes in favor.

With regards to point #2, with regards to the application of the results, there has been a 99.98% of favorable votes. With regards to the distribution of dividends, there have been a 99.98% of favorable votes.

Point #3, with regards to the social management, there has been a 97.56% of favorable votes. Point #4 in the agenda with regards to the share capital reduction through the amortization of treasury stock has obtained 99.98% of favorable votes. Point #5, with regards to the authorization, authorizing the Board to issue convertible bonds into company shares or other similar values has been a favorable voting of 93.35% of the issued votes.

And point #6, about the authorization to reduce the term to call extraordinary AGMs. It has obtained 95.25% of favorable votes, which accounts for 71.91% with regards to the total share capital with voting rights. Point #7 in the agenda with regards to the reelection of Mr. Juan Jose Brugera Clavero as Board member has obtained an 86.33% of favorable votes. And with regards to the reelection of Mr. Pedro Vinolas Serra as Board member has obtained a 99.18% of favorable votes.

Point #8, with regards to the approval of a new policy, a new remuneration policy for Board members, it has obtained 97.88% of favorable votes. Point #9, with regards to the approval of a new long-term incentives plan has obtained 90.57% of favorable votes. Point 10, with regards to the consultative voting about the annual report on the Board members' remuneration has obtained a 98.64% of favorable votes.

Point #11 with regards to the amendment of Article 1 of the AGM's rules has obtained 99.98% of favorable votes and point #11 (sic) [ #12 ] with regards to the amendment of the Board -- the Management Board rules. It is an informational point. We remind shareholders that this point has not been subjected to voting. And point #13 with regards to the delegation of powers has obtained a 99.93% of favorable votes. Fine.

So after having counted the votes and bearing in mind that the information received by the Board with regards to votes against, in white or abstentions expressed through the means -- through means made available to the shareholders, we declare all of the proposals included in the agenda to be approved. The notary public will include in the minutes the detailed information about the specific number of votes in favor, against, in white or abstentions that have been issued with regards to each one of the points in the agenda.

And the approved agreements and the results of the votings will be fully published on our corporate website according to the rule that's applicable and the rules of the AGM. Thank you very much, ladies and gentlemen, shareholders all, we call it an AGM, and we thank you once again for your attendance and your commitment with our company. Thank you.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Good morning. First of all, a big thank you to all of you for being here today and being able to share with you this Capital Markets Day. I think it's been a long time since the last time we were able to organize this kind of meetings. But a lot has been going on in the world in recent years. Every year, something has been happening that was far more important that put the focus of capital markets somewhere else in what's going on in the world, very far away of the individual performance of companies.

And it was difficult to establish a relationship between any company and the markets. The markets had other things to worry about, like in couples that are about to divorce, they were saying it's not you, it's me, the one that has a problem. So that make it difficult to find the time to discuss about how a company is doing, what they are thinking about the future. But we were wishing that this day could come, and I think that that's the time, and we are so pleased to have this opportunity to share with you where Colonial is and where Colonial is going to go in the future.

I think this is a great opportunity to talk because there's always this needs to go beyond what's happening in the short term and share openly in an open discussion what our expectations and wishes and plans for the midterm or for the future to have the opportunity to discuss at an industrial level, let's put it this way, and not so much at a financial level to discuss about mid- to long term as opposed to a short-term view.

I think it's a great opportunity, and that's why we are so pleased to have this opportunity today to be able to share where Colonial is and will be with you in this beautiful place. I am conflicted about it, but I think it's a fantastic place. It's Madnum. It's a very good example of our view about the world of offices. You will see today how much we believe, how high is our conviction of a bright future for a certain way of approaching the office world.

And it's not about office. It's about experience. It's about providing the right place to be for those companies who really are concerned about talent attraction, about having the best place to take care of the best intangibles of a company, which is a corporate culture, the talent attraction, the talent retention. This is a magnificent place. I hope you will be able to enjoy it before, after, you can see the kind of experience we want to provide for the people that are joining us in this building.

What's the plan for today? That's on the agenda. We are going to -- through the Introduction & Welcome. We will devote a few minutes with me about the Investment Case of Colonial.

We will go then more in depth about our operational business model, and then we'll have a coffee break too. Afterwards, with Carmina, we will discuss about financials, and more importantly, capital allocation framework, what's the discipline, the framework where we develop our strategy in order to later on have a discussion with Carlos about the Strategic Plan and Value Drivers. And finally, I will go through some remarks about our strategic view about the future and to what extent we believe that Colonial represents an unparalleled opportunity in the European Prime office.

With me, I have the pleasure of having Carmina, as usual, Chief Corporate Officer; Juan Ortega, Chief Investment Officer; Carlos Krohmer, Chief Corporate Development Officer; and Alexia Abtan, Directrice des Investissements SFL, I hope my French is very well, who will be with us plus all the Investor Relations team that I would like to take the opportunity to thank them for the big work they've been doing in preparing this.

Also, I would like to thank all of the people that is supporting in the organization of this event. And all the people in Spain and in France, the French team is here. Welcome also. And I also would like to thank some of you, some of the investors and analysts that are following us for many years that are also have been providing us with insights on what's the best use of our time in this opportunity today.

So a big thank you to all of you. What are the objectives for today? In a way, what I would like for you to remember about today's meeting? What are the takeaways? A few sentences. I would like that you achieve the conviction that Colonial represents a unique opportunity to play the European Urban Transformation growth cycle. In other words, that Colonial is a really strong investment case proposition, a strong company and different and different from others. You know that one of the struggles we have in this sector, the office sector is to say and to show and to prove that A and B are different.

In fact, we would like that you achieve the conviction that Colonial is different and better. So that could be objective number one. Why? Because of the positioning of Colonial in the Prime Asset world, which offers a clear path to value creation. So clear positioning of Colonial and clear path going forward in our strategy. Basically, 2 things that there is a polarization game that has already happened in this world of office business and that Colonial is a winner in this polarization game.

That would be one of our objectives to share with you. And because of that, that our platform has a significant embedded growth to be unlocked in the next 3 years, a specific, well-supported, not wishful hoping numbers, specific midterm numbers that prove that the growth expected for this company in the midterm is relevant. And again, if you allow me that we always and also can be aware that this growth is not just happening now. It's not that we just discovered now that Colonial is going to grow in the next 3 years.

Also to remember to what extent this has already happened, and there is quite a lot of evidence and track record of growth if you look at the past. The next objective is also to share with you that our strategy is anchored in a strong capital allocation framework. So it's not a simplistic view about growth, what is in our minds. It's a clear framework of capital allocation with discipline attached to it. And within this capital allocation framework, there is a fantastic growth expectation.

But for us, it's as important to share with you how beautiful our expectations are of our growth as it is to share with you to what extent this is happening within a framework of capital allocation discipline. And as a result of this, that Colonial is offering a strong proposition of shareholder value creation with solid short-term value drivers. Specific midterm goals that should be one of the takeaways of this meeting and a sound equilibrium between growth and solid capital allocation and capital discipline base case.

That would be more or less the takeaways that we would like for today. I will start with Section 1, which is about the Investment Case. Where is Colonial? What is our view of the world of real estate, of our sector, what -- how do we see ourselves within this world. First, the obvious starting point that all of you know so well and probably no need to go through this. The view about Colonial as simple, strong and better platform.

Simple. Those of you who follow many companies, I guess you will not find many that can be so easily understood in a limited time period. It's about EUR 12 billion in France and Spain. And because the strategy has been so clear for many years, the result is, well, what are we talking about? We are talking about a portfolio of EUR 12 billion, where all of it is prime. Most of it is core and all of it is at a real top of ESG compliance.

And that's why I say humbly, strong, simple and better because I cannot think of many other investment cases, many other companies that have the same average quality in its portfolio. We always use this picture. We always use this picture because it helps to understand. We always use this picture when you go on roadshows, many of you know also with the numbers of occupancy, 100, 100, 100, 100, almost everywhere. We are in thriving places. We are in the best potential locations in London -- sorry, in Paris, in Madrid and in Barcelona.

And one of the other messages I would like to insist is not only about places, it's also about clients, with the best clients, with the big names that are walking along side with us, and that's as important as the places themselves. Let me first go through some remarks about our view of what's going on in the office market before talking about where Colonial is today within this prime office market world, what's going on in the world. And I would like to go backwards a little bit to have a wider perspective and just to share a very simple thought.

The simple thought is about despite what's going on in the world, cities are thriving. Cities are expanding, are attracting, are the place to be, are where all the future about talent, about jobs, about innovation, about population, it's where things are happening. We don't have to forget the underlying trend of urbanization that is happening and happening on a regular basis. And it's differential. It's -- we don't have to forget that cities are performing better down countries. And is -- that mega urban trend is consistently happening across Europe and consistently happening across time.

And this is the very basic of our strength. Before talking about the office market, cities are thriving. And what's the relationship between this and our world, the world of Colonial, the world of the office market, well, cities are the place where the new mission-critical social infrastructure is provided for companies. There's been a lot happening these years. And we all know that the office as an asset class has been challenged because many things happened.

But the way we think about it is in a positive way as an opportunity. So COVID started. COVID happened a few years ago. And this was a wake-up call for many companies. Many companies -- well, all the companies suddenly realized they had to think about where do they want to work, how do they want to work, if this was important or was not important. And they realized that they had no tools, no know-how. They didn't have anybody in the company that was supposed to take care of this, maybe the CEO, maybe the CFO, maybe the HR guy, or lady, but no answer was provided.

But then everybody was forced to think about it. And the result of this thinking in our view was that for many people, they found out that, first of all, for them, it is very important the intangible values of corporate values of talent, retention of professional careers, of fostering creativity, of working in a way that allows the company to promote its values that a big part of the success of a company was related to all of these intangible values.

And the paradox was that these intangible values were a lot dependent on something very tangible, which is where do you work and how do you work. So there was an explicit relationship with a choice of where and how do you work with the management of all of these key drivers of the future success of the company. And in getting the right answers, people realize that this important decision needed specific answers, and they wanted specific places.

They wanted specific places where they were providing to the employees, to the people that work in any company, the right level of experience outside the building, inside the building, and that has become key. And I think there is a big conclusion today among many different companies that this really matters. And what is the problem? Well, not a problem, what is the opportunity that those places where opportunity is happening are not very much. There is a structural scarcity of the right place to be. And this has been clear for the few years that we've been following after COVID.

It's happened already before, but now it's becoming even more strategic. And in the meantime, demand is high. So supply is, by definition, short, but the number of companies that thought this is important for me is higher than the available space that they are looking for. And this is creating a balance between supply and demand that is different in certain places. This is a slide that we use sometimes when we meet investors. We take the example of Paris that there's a lot of discussion about how Paris is performing. And we always like to highlight, look, are you talking about my Paris or other people's Paris?

Because depending on the place where you are, the absorption of supply may take 2 years, 3 years. Depending on where you are, it may take 6 months. Depending on where you are, there are a lot of new supply that's coming that we don't know where take-up is going to be. Depending on where you are, there is no supply in the -- no relevant supply in the foreseeable near-term future. And this, let's say, a reality, you can extend it to Madrid, you can extend it to Barcelona.

So polarization has already happened. I think that's obvious. And what should be the number, the KPI that would prove the theory that polarization has already happened. Well, and that supply and demand have a different balance depending on the submarket you're referring to. Well, it's obviously rental growth. And it's obvious that rental growth has shown a very different path depending on the kind of submarket where you are. Consistently, we as Colonial have been showing above, and we'll see today again, above market rental growth, above inflation rental growth. And the expectation that we have for the next few years is that this path is going to remain.

And this polarization game has also meant that the market, the product is being fragmented more and more from platinum to gold to silver to very politely called bronze kind of places. So different submarkets with different range of rents attached to this. And where does Colonial sit in all of this? Well, we've been in this market view for many years, as you know. Many of you, you know us.

And you know that the obsession about the quality of the product, about the positioning on the right place has been following us in Colonial and SFL for many years. So we have the positioning, which is not so obvious in some of our colleagues. Therefore, we have a track record. It's not that suddenly we find out that that's our way of thinking. We have it on an international way. We have France and Spain with a long track record. And we do it, as we will discuss today, in a proactive way.

We are not passive holders, collections of buildings. We think a lot about how to enhance the experience of every individual building. And as a result, we are the dominant player in key European gateway cities with strong growth perspective in this market. We are at the top of property owners in Prime CBD in Madrid, in Barcelona. In Paris, by the way, we are the most important owner of the highest level of trophy assets.

We have 5 out of 9 of the top trophy assets in Paris. And this has proved to work nicely in the past. Our EPS has grown with a CAGR of 19%, 2015, 2020; 8%, 2021, 2025. What was at 12%, today is at 34% and the EBITDA has been sustainable, solid, growing. Let me be more specific. And that's why -- and that's because the way we approach our strategy, it's a little bit more complex than just to say that we like the high experience Prime CBD buildings.

We have 3 levels of strategic thinking. We like to own and manage Prime CBD operations. So we like to have a important portfolio with the best trophy assets. Here, the key message that probably Juanma and Alexia will explain better than me. The key message is we are proactive managers of everything we own. And most of what we own, either we develop it or either we refurbish it. Second level, we always try to add a second layer of enhancement of our returns with new projects.

The Alpha X project, the X is not about what you may think. It's about #10. It's because we've done 9 projects before. So it's a long, long, long story of going through this. And it's a new wave of projects that we are going through. And third, it's about thinking a lot about buying and selling and finding new opportunities of value creation for shareholders. Maybe the comment for today because this has been around for a while, is that you will see that the way we are approaching this in the current market conditions is with an additional layer of flexibility.

When we talk about Alpha X projects, you'll see that, first of all, our strategy is Prime CBD, Prime CBD, Prime CBD. But when there is the window of opportunity of create value through urban transformation, we do it. We always did it. We can provide examples about 10 years ago, the Mandarin in Paris, many examples. We believe that in current market conditions, you have to be more aware of this and be more close to these opportunities. So you will find that sometimes in our capital recycling policy, our strategy is more open to urban transformation because of tactical reasons related to shareholder value creation.

And the other comment that probably we will have is about geographies. We believe that since the market has been evolving in a way that it's being transformed in these 2 submarkets, the prime and the secondary, the level playing field for developing prime must be wider. You cannot think about a bright future for a big company doing prime by thinking that you will just walk away -- you will just walk Champs Elysees up and down, buying and selling things in just one street. You have to think that you have the capabilities to do what your platform knows how to do in different places. So we'll talk a little bit about the way we apply this philosophy.

Comments -- quick comments on this Investment Case view. Well, sorry that we will hammer a little bit on this during the morning, but this has been already proven for a number of years. If you look at the like-for-like gross rental income growth, it's been, number one, consistently above inflation for many years. Many of you will remember that when inflation started the question for all of us for the industry was, are you really able to pass through the inflation? Will you do it?

Because if not, it's a disaster. But if you do it, it's super important. And in fact, markets behave as if you were not available. And years have gone by and the spread versus indexation versus inflation has been very important throughout all of the years. So that's message number one. As a result of this, the numbers of like-for-like growth have been remarkable. Look at the 7 and 8 and 6 and 6 in the last 4 years, which lead us again to a humble remark, which is -- and this is happening also with a differential with a gap versus our peers, which is maybe not because of us, maybe it's because of the supermarket where we are.

The other thing about the Investment Case, which I already started to mention, but we will go through this because we are doing new things all of the time. And the question is, well, what's the logic of these new things that you are doing? Does this mean that you are revisiting your strategy? What's the framework? And the message we want to pass to you is we always did this. We always -- many of you, we have met in many places, in many meetings, road shows, me always saying the same, very simple balance sheet, 80% to 90% yield income-producing trophy assets, 10% to 20% new ventures that enhance our return.

This combination is better than a plain vanilla passive owner of trophy assets. That provides better returns without compromising the risk profile of the company. So it's always been like this. And that's why you will see that in our investment thesis, there are always new kind of ventures getting into the investment scope of the company, but the overall conclusion is that our focus remains the same.

And then this is in a framework of capital recycling, where do we buy and we sell. I won't go into details. Juanma and Alexia will go much more into details and maybe Carmina, too. We've been buying and we've been selling. And basically, the message that we'll share with you is that this is done under a very strict framework of capital allocation with a very strong view on capital structure on what is things -- what are the things that we can do and what are the things that we will not do.

Where do we stand today? And I will finish with this initial approach to our investment thesis. In this capital recycling view, currently, we are marginally more on divestment mood and deleveraging mood than on the investment mood. That's how we believe we have to manage the cycle. We announced a few months ago a disposal program of EUR 0.5 billion. Juanma will cover this. This is going super well. He will remember to you that everything we've done for many years, all of the several billions we sold always at NAV or GAV or a premium, again this time and being executed in very good rhythm, in very good speed. Based on these results of this program, we are envisaging an additional program of divestments that by now, looking at the market, we are seeing around EUR 200 million. And that's the disposals.

The new investments are more in the range of EUR 200 million. About the EUR 200 million, the investment thesis, it's all about prime, first of all, as a first remark before any other consideration. So first of all, our mission statement remains the same, which are the caveats. Well, first of all, we may consider doing different things. Let's not forget within a framework of capital allocation discipline, but open to 2 things.

One is the way cities are evolving in Europe. Today, sometimes there are windows of opportunity for higher value creation in a different use. We are not shy about this. I mean you just walked through some residential here on your past note towards this meeting. Well, we did it because when we bought this 100,000 square meters like 8 years ago or something like that, it was, we thought 100,000 square meters, this part of town, the best use is putting at least 30,000 of residential and the rest office. And we did it. Who did it? Us. We did all of the development.

Albert here played a big role in this. We did it. And then about the strategic thinking, the outcome was we sold it, and we sold it at a nice premium. So we are not shy about this. We do it on a regular basis. We did the Mandarin Hotel in Paris just some years ago. We are doing a hospital in Barcelona because of much better use than traditional office. We are also considering as we will talk now a big project of a student accommodation in Madrid.

So this is extracting maximum value from the value -- from our platform, from the skills of our platform. And the other remark is this prime can happen in Madrid, can happen in Paris, can happen in other European cities. And we are currently looking at opportunities. We are currently looking at opportunities in Germany. And we are quite advanced in doing something in a German city. Why? Why this? Well, first of all, as I say, it's not about Germany, it's about prime.

We want to have a level-playing field as a market that is wide enough for us to develop our capabilities. Does this mean that we don't like Madrid, we don't like Paris? No, we like them. This is a picture that somebody told me, look, this picture here, you see in the middle, it's about an asset that is not ours. Yes, it's true. This is an asset that is in the market as we speak. I don't know if you -- maybe you saw it in the press is [indiscernible] It's a trophy asset project that is in the market as we speak. We look for it. Did we like it? Yes. Did we were ready to invest there? Yes.

By the way, this is a EUR 400 million project with a number of investors that want to come with us. So we are allocating a limited amount of our money. What happened, do you remember the Trocadero experience, a trophy asset comes in the market, 12 people queuing for that asset. which is interesting, but we may talk about Paris, but that's a good example about the different dynamics that are happening in Paris.

We bid for Trocadero too with a number of investors that were supporting us. And that's another remark because we don't compromise our expected returns. We were expelled and thrown through the window in the early stages of the process, which for us was sad and happy at the same time to see the market dynamics. But [ Mendez ] is a little bit of the same. We've been thrown through the window quite soon, which shall tell us some remarks or takeaways. So we don't want to invest in Paris, of course.

But are we condemned to a future where we are walking Champs Elysees up or down looking for these kind of things. And when we have one, then there are 15 people surrounding us wanting to chase this at an unreasonable IRRs according to our judgment. Our level-playing field has to be wider. What is happening in Germany? There is no 12 people for a prime trophy asset in the negotiation. The expected returns adjusted for risk, adjusted for quality are higher.

So why shouldn't we take a look at this, and that's what we are doing. So these are the dynamics. As I said, more driven by real estate judgment, micro analytics, not so much about macro. If we have to have discussion about macro long-term view of the markets, we can also have a discussion about the future of different geographies in a few years. But I think that only talking to -- at the level of real estate rationale, it makes a lot of sense.

And my final remark is all of this in a framework of being prudent. The problem when you do something new, even if it's tiny, it's that people get the impression that we are doing nothing else, but this and that's the company, the new things that we are doing, we have a more, let's say, wide view. We have -- you have bring us your confidence in us managing a EUR 12 billion portfolio, and we believe it's wise to devote EUR 200 million out of EUR 12 billion to these things. That makes sense because it's within a framework that makes sense.

But this doesn't challenge our strategic view that remains crystal clear what we have to deliver for shareholders in the present and in the future. These are investment thesis. Going back to what I mentioned before, the plan now is to walk you through a deeper view of our way of approaching the management of our assets, then a view of the financial background, the capital discipline.

And again, this capital allocation framework that is embracing everything to end coming back to our strategy, to our new investments and to the future that we expect for Colonial. This will be my first presentation. I probably already killed the agenda about timing, but sorry about that. We'll manage it. If not, since I'm the last speaker, I will be the buffer to adapt for everything to take place in the right timing. Thank you. I give the word to Juanma and to Alexia. Thank you.

Thank you, Pere. Welcome, everyone here. I think it's a privilege to see you here in Madeleine. As Pere was saying, let me just take 1 minute. When we land here 8 years ago, it was a massive plot. Some of the investors would say at that time in the middle of nowhere, they were completely wrong. We're just -- as you may notice 7 minutes away from Atocha high-speed train station.

We are so close to Castellana. And we realized this was part of our DNA. And I think you have felt the atmosphere today just walking through and coming to this auditorium. Everything that is going to be said during this presentation together with Alexia is with regards to this DNA. So forgive me if I just repeat some of the message of Pere. Maybe I have the privilege to have this presentation before the coffee break. So I will try to be efficient. And as Pere mentioned before, it's all about the 3 pillars that form our Prime business asset class model. And this is within 3 main pillars.

The first pillar is with regards to our existing portfolio. Our existing portfolio, we don't buy or we don't hold the assets, and that's it, end of the story. It's, I would say, regular work with the operational teams thinking about how to squeeze the value every day of these assets, how to increase the growth, how to create value. This is what we are devoted to.

So this give us and enable us to have this pricing power and differentiation effect from other peers. And as it's been disclosed during the first presentation to achieve over time a strong reversion with the spreads. Second pillar, it's with regards to our capability to transform assets from the scratch or through full refurbishments. We've done it, and you will see in a later slide during many years. And the most important thing, we have harvested and show to the market the returns that we have achieved.

And this has led us to have this superior value creation. And the third pillar, it's so important in today's environment through a very disciplined framework. We don't just take by confidence decisions. We are doing everything through a smart asset allocation model. We are buying, at the same time we are disposing assets. We don't say during these months, we are going to acquire assets. We are doing everything at the same time to create value.

And as a result of this strategy, sometimes, we are more inclined to deleverage, to be strict and prudent with our capital structure. Others, we want to rely on the cycle, and we're going to make the most of the opportunity, as Pere was mentioning before, in different places where we are sure we could be doing returns in the future to come. So if we start, and I think it's obvious, it's been said the value of our portfolio relies on -- it's a unique and irreplicable portfolio, comprising in excess of 80 amazing prominent stand-alone assets in the 3 cities we are today.

You can see here the pictures, obviously, it's worth the image rather than the words. But -- and all of these assets have been transformed by Colonial, have been created by Colonial in many different situations, either from the scratch, from a plot in the middle of nowhere to full refurbishment like Diagonal 530 through the change of a project like Velazquez that it has become the reference in the prime office sector in Madrid.

So many, many different situations. I think this portfolio, as Pere was mentioning, cannot be replicated. Those landmark assets in these locations where there is a chronical supply shortage. So there is a value behind, and that explains why we are so persistent in trying to get and extract the maximum value of our assets. So it's about location, obviously. It's about being in the prime asset areas but I think we are obsessed, but it's part of our passion to design the best products.

And when we come to this, we try to have this driver of our clients, how can we enrich the experience of our clients. So that's why you can see here in the screen, we have 3 pillars for the design of our products. We want to foster experience. We want to have efficiency and through the best environmental standards. So if it comes to experience, you have obviously first factor, location. It's essential in this polarized world.

And then that's why I explained, as we saw before, we are close to 100% located in central CBD and prime locations in Paris, Madrid and Barcelona. Then we foster the experience of the client through the combination of different areas. This is a great example. You may see later people coming, well, probably today is not a good example because due to a pope visit to Madrid, everyone has remained at home. We were expecting the city to be at a halt.

But -- so maybe today is not the best example, but I just welcome you to come here, to come back and to see all the employees coming to the food and beverage areas, to use all the co-working spaces, all the services of the auditorium, et cetera. What are we doing in terms of design? We are trying -- and 58% of our properties provides large floorplates that links to efficiency together with the horizontal building scheme. And that has made us possible to have this multi-tenant derisk client base.

They -- and it's not about one sector. It's not about companies of one sector, it's about companies of many different high-margin sectors. And then when we speak about the environment, you all know we are top ranked and best-in-class sustainability certifications on all the environmental and ESG policy. So maybe now it's worth if you just can tell us about clients.

Thank you, Juan. Good morning, everyone. It's true that this active management approach is probably the result of the quality of our portfolio. You have seen it. It's also maybe the fact that we have internally all the functions to handle it, to promote it in order to do one thing to attract and to retain clients.

And even if location is clearly still the first criteria for companies, prime offices are no longer just about location. We have talked about many projects. Madnum is a tremendous example. Now companies are willing not just to have places to work. They are willing to look for strategic tools in which every time we design bespoke space in order to, again, meet the needs of the most demanding and sophisticated clients.

We have obviously many examples on this slide in all the cities we are invested in and especially across several sectors. We have amazing clients and very prestigious clients. We can tell them tech companies with Meta and more recently, Pinterest. We have also clients in the finance field with let's say, many of them like -- sorry, Grant Thornton or many others. We have also fashion industry with LVMH, alo in retail, also units as well as many others and so on.

And the idea is to do this kind of amazing projects every time and a good illustration and a typical illustration could be Edouard VII, as you're seeing here. Edouard VII is a masterpiece. It's really almost a piece of Paris, more than 1 hectare site in the middle of the ninth district, one of the most sought-after area, both for companies and employees. This is a mixed-use complex. And if we are reminding all the criteria Juan just told us regarding what we are expecting and what our clients are expected, it's a large-scale scheme, more than 54,000 square meters, which -- sorry, large and horizontal and very modern floorplates, even if the architecture is very typical of a Parisian style.

It's also mixed-use and multi-tenant. We have more than 14 office tenants in this building, creating a real traction and vibrancy in this complex. When we are talking about mixed use here, it's about the district, the area, the direct area, but also inside the building, we have obviously prime offices, but also retail mix that creates really vibrancy in the area as well as a hotel, 2 famous theaters, including the Olympia.

We have also residential and living units, also co-living inside. We have a public parking. We have an auditorium, meeting rooms and also dedicated services to the office clients from a restaurant to a cafe as well as a fitness center and a bike park. I have many other examples of this kind of project. I could talk to you about #Cloud, about Washington Plaza. And this is the typical kind of products we want to invest in. We want to develop in order, again, to meet the clients' expectation.

These buildings are fully occupied with consistently strong rental growth. And this is what we believe is the new trend. It could be in the next few months, AI companies that are looking for this kind of buildings, and we are really trying to do our best to develop and again, increase this kind of amazing landmark in our company. And how we do that? We also use our competency to develop with the Alpha X project, and Juan will talk about it right now.

Okay. Thank you very much, Alexia. Just going through the second pillar. And it's been said at the beginning that we have constantly and consistently contributing to the value of the company with the transformation of projects during the last 15 years. And here, you may see 2 generations of projects. It's not about one big project and period, full stop. It's about many, many different projects.

This is explaining why we are talking about Alpha X. We are not talking about Alpha II. And with this regard, we -- under our discipline, we are reaching 9% to 10% unlevered IRR returns with capital gain on cost blended basis from 50% to 70%. I would say outstanding and very famous projects within the different cities where we are working, reference that we've been awarded over the years by many different organizations.

You are going to visit today, obviously, Madeleine, you're going to visit Velazquez. But you can see here how the large scale of the projects, the critical mass. Some of them, we have already sold them, and this is linked to the third pillar. Let me just go quickly because we have already spoken about Madnum, and maybe it's just worth having this tour and answering the questions during the tour.

But this is what I said before, see at the left-hand side, what was the reality of Mendez Alvaro some years ago. What is today? Many, many different institutional investors have come behind us, and they have developed other schemes, residential schemes, PBSA, flex living, retail, hotels. So it was not just to develop an office property. It was about urban transformation. We have clearly transformed this urban area.

The mayor, his team and the town planning authorities have called us many times. I just remember a week ago, they said, look, we want you to be and to have a leading role in designing priority areas of new development in Madrid because we want more Madnums to come to the city. So it's not just one asset. And I think we can say this with many different projects that we have shown you in the past.

Obviously, it's not just a design. It's linked with the client attraction that Alexia was mentioning or if we can attract talent, we attract, obviously, companies. We make employees to -- they would like to come here and they are not complaining about coming to the office space, and this is contributing to the benefit of our clients. Here, you can see that we have already achieved 88%.

But I think the good news is that probably in 2, 3 months, we will be reaching close to 100%, 97%. Then from an underwriting rents, we have exceeded 25%. It has -- in the end, it has created -- at the beginning, this was called a second area within the M30 Road outside the CBD. But today, because the rental performance, brokers want to have Madnum as part of the CBD. So this is a reflection of the urban transformation effect.

Then if we move to a super prime area, I was saying like Velazquez. Velazquez has been a super successful project. We started negotiating with the existing tenants. Those tenants were paying EUR 18, EUR 19, EUR 20 per square meter per month. So our first objective was to let's say this way, get rid of those clients to start with the transformation of the asset. It was a complex project that we did it, and we moved some of those clients to other properties of Colonial like Discovery.

I think the design is it's -- you'll see later, it's a state-of-the-art, one of the most attractive terraces within the city. And we have innovated in the sense that the operational team led by Albert, they have includes common areas within the gross lettable area of the clients, and they are super happy to pay for those areas because they enjoy those areas, they use those areas. So later, we will see this. And Alexia, maybe some great project in France, deserve your words.

Thank you. You are probably very familiar with this operation in the middle of the heart of Paris, which is called Louvre Saint-Honore in-house. This is also a large-scale mixed-use building, more than 45,000 square meters, half -- let's say, half office, half retail. If we take a look at the operation on a value creation standpoint, this is, again, a tremendous success. You can see on the slide, we have a value creation with a multiple of almost 3, which is impressive. The idea is to understand how do we achieve this kind of project. Clearly, it's a middle- to long-term view. You have to have a lot of conviction and ambition and discipline.

First of all, we pre-let and secured all the retail area by signing a 40-year firm term lease with one of the major luxury brands in the world, which is Cartier to locate their new foundation, which was previously in the 14 district of Paris. 40 years with 20 mandatories is unique in France. Then we have co-created one of the most sophisticated, innovative and very highly technical projects designed by one of the most impressive architect, Jean Nouvel.

We manage -- our team managed all the administrative authorization supported, which is important by the city of Paris. Then comes the hard part. We had to handle the fact that this project was one of a kind, very unique, very innovative, but we had to take into account all the technical requirements. And we signed very -- at a very early stage a contract with [ VINCI ] in order to verify if it was technically feasible and also to define the right methodology to deploy this kind of project in a very dense environment because you are in front of the [indiscernible] and so on, which was really tricky. So we probably would have failed at many stage without the help of a unique team as well as unique advisers, clearly.

So we delivered this project to Cartier earlier than expected in July 2023 in order to let them do their own work and the foundation opened to the public in November 2025. The project and the work on this amazing asset is not over. We are now in the new stage, and [ Eric ] will be happy to talk about it during the break to refurbish and reposition all the office to let this amazing building become the primest office building in Paris.

We have already signed 7,000 square meters of offices at very high level of rent. There are still a lot of potential to capture in terms of rental growth in this building. But we are already very happy to be the owner of this kind of amazing landmark building in Paris. So we will definitely continue. That doesn't mean we doesn't think about rotation in some point regarding our portfolio, and Juanma will talk about it.

Okay. Before jumping on the smart asset allocation strategy, just have a look to the midterm EPS main driver through the existing projects. I think we are running out of time. Just a few comments about them. In Spain, we are transforming the former headquarters of Deutsche Telekom in the 22@ prime area for a hospital. In the left-hand side, you can see we are going -- we have already signed 20 years -- 30 years contract, sorry, with 15 years mandatory with one of the main players of the healthcare area.

This is in the Bupa group, it's Sanitas. So now we have a very good news because we have been granted with the license. We are progressing with the project. We have signed rents at EUR 29 per square meter per month, that is almost 111% increase on the former rents and 20% above over the prime office rents in the area. Secondly, in Spain to highlight, and it's going to be a reality in 2028, fourth quarter is the transformation, the full transformation of the headquarters of IBM.

Those headquarters developed in 1986. It was obviously an outdated. It was like a museum. We love it when we inspect it. It was the kind of offices of the '80s. And now it's been -- it's going through a full reconversion to one of the I think, vibrant and promising living concepts within M30 of Madrid. We have gained buildability around 7,000 square meters. We are going to have an increase of 70% of the existing rents. And we have already made an agreement with one of the main players of operators of the living arena. So maybe a few words about France, Alexia?

Thank you. Regarding France, one other key point of our strategy is also to invest in main gateways in the cities, we are invested in, Paris and Madrid, obviously. These 2 projects are located next to our main transportation hub. Scope is positioned next to Gare de Lyon. It's a major transformation of this previous Natixis headquarter. It will be a best-in-class project definitely with high visibility through its new bioclimatic facade, as you can see, with obviously large and modern floorplates and a very define and design offer of services.

It will be delivered by the end of the year. We are currently in the leasing process. We are targeting an unlevered IRR of 9% and levered IRR of 13%. And we are happy to announce that we have already secured the first contract pre-let yesterday. Condorcet is the same kind of vision, but in a different area. It's next to Gare du Nord which is an amazing connection to many European cities like London, obviously, Brussels or Amsterdam.

This is also 1 hectare site, an amazing mixed-use urban campus development, which makes offices and residential. We will host student housing accommodation as well as 22,000 square meters of brand-new offices that combines perfectly modernity as well as heritage, meaning that you will find all the design and architecture of the Parisian-style city as well as very flexible and modern floorplates which will probably allow us to attract a variety of potential targets from tech to AI as well as media and fashion companies. So the delivery is expected by 2027. We are also targeting 9% unlevered IRR and 13% after leverage. The process of leasing will start in the coming days. but we are very confident about it as well as the ongoing works that are without any concern on our side.

Okay. So let me just go very quickly. We are in -- I'm seeing the screen with numbers now. Within the third pillar of our business -- Prime business model, it's our capital recycling strategy, what we've just disposed over the year, EUR 3 billion of assets disposed, what kind of assets. It's easy for us. All these assets that do not comply with the attributes we would like to develop to squeeze that portfolio that we were saying at the beginning, those assets are no longer in our wishes.

So this is our first target. Second one, it's all those assets located in outskirts, operational locations. As a result, you may see here the active strategy of disposing all of these assets over time. Then I will take some time to speak about the recent disposal plan and the new disposal plan. And with regards to the acquisitions, always with this objective of creating value through prime factory through value-added opportunities. You will never see Colonial coming into the market and buying a 3% initial yield property with no upside potential.

That is not part of our business objectives. So today, where we are and -- sorry, and linking with what Pere was saying that we are so disciplined and we are inclined to the deleveraging process. With regards to the first disposal plan of EUR 500 million, we -- here, it's disclosed that we have already executed 70%. It's wrong. It's not 70%. It's close to 80%. And the reason behind is because we are actively doing further disposals over the last week, and Carlos is not going to be changing the presentation on a daily basis.

As an example, unfortunately, I need to leave you because we are closing one transaction today at 12 o'clock, we are selling one of our residential -- granular residential assets in the outskirt of Madrid worth EUR 20 million. Tuesday this week, we signed a commitment further 19 dwellings [ in Farragosa, ] and we have already visibility for commitments of the residential portfolio accounting close to EUR 100 million before August.

So probably for the first disposal plan of EUR 500 million, we will be reaching close to 92%, 93% before summer. Together with this, it's been announced a potential additional program of EUR 200 million. Obviously, this is due to the fact that we are constantly working on new disposals. We have together identified many different situations comprising 7 to 8 assets where we are having different bilateral conversations with different investors. And let me just reinforce and hammer the message that we always have conversations on appraisal value and normally with a premium on appraisal value is not a bullish talking.

You know this because you've seen over time over the last 15 years. So we could have visibility as well before the year-end for this EUR 200 million -- additional EUR 200 million. And then just a few words on the acquisition side from the Science & Innovation acquisition last year. First message is the existing portfolio is going well. It's going as expected in the business plan. Many lettings have been accomplished with clients under the Science & Innovation arena, critical infrastructure, [ stick ] clients to the real estate properties.

And then just Pere already mentioned, so the 2 projects we are today involved, one is the creation of a leading platform within M30 ring road in Madrid. Madrid, the megatrend is amazing for living. Just to give you an example, I think in the U.K., 1 bed each 8 students; Spain, 1 bed each, 17 students. Inner Madrid within the M30 ring road, it could be even higher.

So following the scarcity, following the megatrends, we have progress -- we have progressed with a potential creation of a living platform without making any further investment. And lastly, it was what Pere mentioned about different opportunities in gateway cities in Europe with a prime approach where we can find some upside potential, some rental growth in only this kind of assets that we are fully convinced we can extract value in the future. So from us, this has been the description about the business model. I hope you have enjoyed and let's go for a coffee. Thank you very much.

[Break]

I don't know if everybody is here in the room still people, so -- yes, okay. So I think we can start with the following section. Thank you again for coming. I would like to spend in this almost 20 minutes of my presentation on what we think -- we really think it is the backbone of what you have seen and what you have heard this morning from Pere and from Alexia from Juanma. So basically, the financial foundations, what underpins the business strategy and how we manage -- you will see how we manage our financial side of the business and why we believe the framework that we have built give us this, I would say, secure and very high visible and the right direction for the growth that we are going to share today.

So I will cover basically 3 things. One would be where we stand financially today. The second thing is how we work and how we envisage the capital allocation framework and then how this all in, it's being translated into the returns as well, of course, and the growth for the total shareholder returns for all of you. Let me start first with a simple observation. So over the last decade, the EBITDA has been growing almost 2x. The EPS has been growing almost 3x. And this is not a coincidence.

It is a meaningful growth. And as you can see here, that has been this growth, keeping the loan-to-value in the range of 36%, 40%. So basically, in our track record always, and I will come later to explain how, basically, we are very focused on combining this binomial of growth and discipline. For us, it's a very important goal to keep in every single decision we take in our company. So growth and discipline can be done jointly with a good strategy and a good balance. So this combination of growth and discipline over the full cycle is what you've seen here, growing, keeping the metrics on the ratings and enhancing -- even enhancing the ratings at the level that we would like to be, which is this quoting S&P BBB+ and according to Moody's Baa1. So this is the rating that we need to be focused where we want to be and the range where we want to be inside when we run our business.

So this is not -- this is deliberately being decided, being -- and keeping our metrics inside these levels, maintaining the growth strategy, as you may know -- as you know very well. But what is behind this? How we actually think about our balance. First, let me go to the liquidity and let me go to the maturity profile of our debt. I think you know very well how is the maturity of our debt. But the message that I want to share with you is that behind this, this is a very active liability management.

So you have seen what has been very actively in the balance sheet, and you see and you know what is behind our liability management, managing every year, every month, what could be improved, our key metrics in financials, how we can extend at better conditions, how we can include additional banks. Some of you are here. So thank you for the confidence on Colonial project. And this is what is behind all these metrics, and this is what our teams, some of them here are working every day. So to enhance and to have the best liability, the best debt, Pere, our CEO, always tend to say that we have the prime assets, but we would like to have as well the prime debt and the prime -- and this is how we protect our balance sheet.

So the liquidity risk always has been kept at EUR 2 billion roughly. Today, this liquidity covers almost maturity up to 2029. It's true that today, we have a very interesting cost of debt, 1.9%, maturities of 4 years and improving and enhancing these maturities in this active asset management and keeping the investment rating in the higher end. But these are solid numbers. It's true. And the question naturally probably you would may raise is how confident we are to maintain these solid numbers. And probably one of the key tests to answer this question about having the best debt is the bond market. And the bond market is -- we try to look at them as a useful external perspective and the test and the nice test to see if there is a good test for us and for the appetite from the institutional investor of Colonial debt.

Over the last -- you can see here the 5 years spread. We see -- we are now in the lowest range of spread for our bonds, well below our peers with the same rating. I invite you to compare this spread with other peers with the same rating that we have. But basically because behind this, there is some -- a lot of credibility on the strategy, a lot of visibility on the cash flow, a lot of quality on the cash flow, and this is behind this spread above or better in the markets, above our -- better than our peers.

So this is probably that it's a genuine conviction from institutional investors in the underlying credit quality. And this is one of the probably data, it about the solid investor appetite. It's what we experienced in the last -- in the recent bond issuance by the way, green bond issuance. You know that one of the key strategies across our portfolio are to be in the high end of all the green strategies. And we have been -- we were in the past, the first real estate company in Spain issuing green bonds and all of the debt, green bonds, sorry, and term loans and revolving facilities, all of them are green debt. So we experienced a very solid investor appetite, reflecting this confidence in the recent issuance of bonds.

So basically, we tapped the market last year of EUR 1.8 billion, and we received an appetite, we received an oversubscription of almost 4.4x. So this is a demonstration that our paper, our credit metrics are well received from the institutional investors. And as you may see here as well, our group loan-to-value has been decreased from since 40% to 37% as well, the EPRA loan-to-value improved 200 basis points and the net EBITDA improves as well. I will come later about this trend of deleveraging. But now probably let me go forward about what is our financial approach.

In this section, we have done -- I have shared now what has been our key financial metrics as of today. But this is not a coincidence. So where we are today, it's as a consequence, thanks to a very disciplined capital allocation and a very disciplined financial framework that we work every day. So at the center of our financial approach is a framework that we have built. And let me explain a little bit this chart, and then I will cover the different parts of this chart. This is very, I would say, with an image, how we manage the company, how we approach any single investment and how we manage the objective of our shareholder return, keeping always the financial discipline.

So it's a framework built around 3 interconnected priorities, capital recycling, financial discipline and shareholders' remuneration. They are not independent. There are interconnected among them. So each one enables the other one and disciplined recycling of capital funds that you have seen before from my colleagues, Alexia and Juanma, the new funds -- sorry, these disposals of funds investing at better returns, financial discipline, preserving the credit metrics, the rating credit metrics. And together, we generate this ambition of shareholders' return with a very, I would say, solid and predictable cash flow.

Let me walk now through each one of the boxes. On the financial discipline, here, some of you always talk and ask about what is the exactly the metrics that we need to put as an objective on the financial. And we always answer -- sorry for that, the same -- we say always the same question, which is the reality. So how we approach our financial discipline, this box very important to keep this binominal, to put this balance between growth and discipline. So how we approach the financial discipline, it's the same way how the rating agencies approach our credit metrics, our credit rating. And they evaluate, and this is very important, you consider in your approach to Colonial because it's different than others. They consider the business profile you've seen before in the initial part of the presentation, what is -- what does it mean business profile?

Business profile means high-quality assets, unique assets, well located, good collateral, good contracts, good tenants, high occupancy rate, high releases spread and pricing power. This is what it means the business profile because the consequence of this business strong profile gives us a lot of certainty on cash flows. And this is different than others, and you should consider when we approach Colonial in terms of financing metrics.

The other, of course, the other vertical, it's the financing profile. As you see and we share with you in every quarter, a strong liquidity position, interesting hedge position, secure interest rate, high visibility on the interest rate for the future. I will come later on details on that. Rating robust policy -- financial policy, resilient capital structure. When you go through, as I mentioned before in my previous pages, when you went through the growth that we have devoted and we have delivered during the last decade, always has been with this discipline -- financial discipline in the range of this loan-to-value in the range and below with some room with the metrics on the investment grade.

What does it mean that growth and discipline can work together. And this is what it means financial profile. And then, of course, operational. So we have a track record of solid tenant base, we have a track record of strong management and governance in all our operations. And all has been -- this is the set that the output of these 3 verticals is the rating. These are what the rating is considered. These are what we consider in any single approach, in any single investment analysis when we include this analysis in our business plan, always we reshape with these 3 verticals. Are there according to our business profile risk, high quality, prime location, release spread, additional returns, we can operate as we have our capacities in place, then it links the output is the rating by investment grade.

So why we believe -- why we think this strategy, we think that the financial strength is an asset by itself, but how we manage them in terms of metrics that some of you are asking for. And this is probably the page that you would like to see. And -- but I would like to explain this page. You need to consider this page accordingly with the previous one because isolated this page, it's one part of the equation. And this is not only the question that the credit metrics and the financial discipline looks like. It's not. But some of you ask for about what takes our target lo-to-value, how it's translating. And here, internally, again, for us, the main goal is the investment grade.

And what does it mean investment grade metrics? And in that case, we have taken S&P, the S&P loan-to-value between 35%, 45%. Where we are today, we are below the limits. So we are -- have room to manage any optionality in investment, any volatility in the market. So we are confident of being in this range. But what keeps translating in this range by S&P to what you would like to listen to loan-to-value to EPRA loan-to-value, so to IFRS loan-to-value or to EPRA loan-to-value. So basically, to keep this range 35%, 45% S&P loan-to-value, it's translated into group loan-to-value maximum 42%. Today, we are at 37%. Our internal goal being a little bit more conservative at max 40%. And EPRA loan-to-value, the translation of S&P to EPRA loan-to-value, it's maximum 50%. Today, we are at 45% and our internal rules are at 45%.

So these are one-off part of the equation. These are behind our discipline in combination of what you've seen previously. And these are the boundaries which we are included inside the rating metrics. And we feel comfortable in being inside these metrics and our business plan considering our -- the market -- the existing market condition shows the leverage on these metrics around 150 or 200 basis points on the EPRA loan-to-value. So this is a leverage -- a deleveraging trend.

Being inside these boundaries, we keep what we want to be in the rating, the maximum or the high end of the investment grade. And we can manage with buffer enough, with room enough, any market volatility and any investment opportunity. And on the net EBITDA, which is the other key metric for us, a company with Colonial with the quality of the cash flow with this predictable cash flow, and this is something with the rating agencies, they feel very, very, very comfortable. The standard stabilized net EBITDA should be in the range of 10x to 12x. This is the stabilized net EBITDA for a company like Colonial.

Where we are today, 15x? Why? Because we have a very important part of Project X that you saw before, going in the right direction. But at the end of this Project Alpha Project X, at the end when these projects will be mature, the business plan reached this 11x, between 10x and 11x net EBITDA.

Why we are not today? Because we have almost 10%-- more than 10% of our portfolio not income producing. We -- if you exclude this effect, of course, our stabilized operational part, the first column or the first pillar of the growth, it's 10x, 11x. So this is how we envisage our global financial strategy without having any rating pressure. So the answer about growth because some of you, I would like to see more deleveraging. I would like to see more disposals, but this plan shows a deleveraging trend according today's market condition. This plan shows a balance between growth and discipline, so we can give you deliver growth and keeping discipline.

And this is the financial metrics. But how we protect the cost structure. This is also another question that you raised sometimes. First message that we would like to share with you, our debt for the following years will show this profile between fixed cost and hedge. And then will come what is the level of this cost of debt. But thanks to the bond issuance that we have done in place, thanks to the hedging that we have in place actively, this is not a strategy. This is one shot strategy. This is a permanent strategy to protect our balance sheet and we have been consistently executed. This is the profile of our debt that will look like for the following years. So mainly up to 2028, mainly 90% average, it's being covered fixed and today, with a high visibility on the cost of debt and very, very, very limited, as you see, exposed to the market conditions.

What is the reality in terms of cost of debt? It's what you see in the right-hand side of this slide. So the cost of debt that we will have for the following years will be well above market levels. And this is not a coincidence. This is behind -- but it's behind our active hedge strategy on an active balance sheet strategy. So we have created a lot of value for you during these years. We have still a lot of value to crystallize in the following years, thanks to this hedging. And this is a real advantage of Colonial to others. There are few players, a few peers that they have this position that secures our growth coming from the operations, secures a path to growth, a very clear path to growth that I will come later.

To give you some additional probably numbers, and I don't want to cover in a lot of details, I'm happy to disclose and to answer any questions if you have, that some of you as well, you were asking about how is the -- how can I have some visibility, how this mark-to-market or how this value of hedging is being recycled into the P&L. Basically, 3 main ideas you need to take from this page. We have created a lot of value from the hedge. Since when the rates were negative, we took a very smart position of covering future cost of debt for the future maturities in our bonds. Between -- so basically, we took almost EUR 3 billion pre-hedge instruments to cover all our debt that will need to be at that moment, which needed to be refinanced in the future.

For the following years, 2026 has been already done. 73% of our debt that has been expired this year, 73% has been hedged at 2.4 strike. You can see here what will be in the following issuance debt maturities, [ 600 '27, '28 1,000 ], what will be the level of hedge and the strike behind this level of hedge.

Two final comments. The hedge that we have today, which are booked in our accounts and of course, audited, this is EUR 233 million. This EUR 233 million, it's the hedge, the value that will be allocated in any future maturities of bonds that we are going to be refinanced in the future. So EUR 233 million has been allocated -- will be allocated EUR 12 million in the issuance 2026, EUR 32 million in 2027 and beyond. But how will be this EUR 233 million allocated or recycling into the P&L is the ones that the bottom line. So the idea you need to take on this page is we have a very predictable cost of debt. We have mark-to-market a lot of value still to crystallize EUR 233 million still to crystallize in the following years up to at the very end that all the debt, not 2028, not 2029, not 2030, at the very late, all the debt in place today will be mature.

This is the idea of this page, and it will help you probably to modeling what is going on. And this is the consequence of this cost of debt I showed you before and why we are so, I would say, comfortable about the guidance for this part of -- about the guidance that I am going to share with you.

So this is not a meaningful exposed hedge. And what we would like as well an interesting takeaway, an important takeaway because for us, it's important -- this is not a coincidence. This is not a single strategy. This is a permanent strategy to protect, to secure the cost of debt, to assure that the growth comes from the business, okay? And this is not a coincidence behind this, this is a real policy.

Given that financial discipline, I'm going now to the other box, to the other part of this helix retrofitting by themselves. This is the capital recycling. And this is the part of our investment side, we have as well a clear framework. You've seen a clear framework of the capital of the -- sorry, of the financial discipline. And you will see now and some examples has been already done, you will see a lot of as well a very clear framework on the financial discipline. We approach any single investment with a very clear hurdle rate, subject if there is core plus investment or value-added investment between 7% and 8.5% in our core investment or 9%, 10% if the value-added investment.

If -- and these are not the hurdle rates that are linked to the macro drivers. These are hurdle rates that are lean, and I think also as Pere mentioned before, they are linked to the macro-driven analysis of any single assets. It means -- what does it mean location? It means tenant. It means if the asset is under management and we can create value enhancing the operational part of the management or some light CapEx to enhance the value of the investment. It's about location and city centers and profile of the scheme. It's about potential release spread. It's how we can recycle this capital to ask for a very interesting capital returns.

Why these levels? Because with these levels, we are beating the cost of capital that the market are requesting. And with these hurdle rates, we are creating value for all of you. So the combination of these hurdle rates being very disciplined on the investments, keeping the framework on the financials I explained before, we secure the growth value for the shareholder remuneration and the value creation because all these hurdle rates are well above the cost of capital that today's market is requesting for Colonial.

And very clear, we filter every single opportunity. If we don't reach the hurdle rates, we are not going to do it. And we should be, I would say, very confident in what we've done because the track record, I think we believe that shows this discipline always as well in the investment. And this is how we can maintain the return profile across the cycle with this room to surface any market volatilities and as well to take advantage of any opportunity.

So let me bring together what does it mean, what I explained before. Capital recycling, I said -- we said very clearly, these are the hurdle rates, beating the cost of capital the markets are requesting, creating value through any investment approach and disposing at appraisal or even at a premium. We have been always in certain quarters, delivering premiums to disposal. And this is how we recycle capital. On the financial discipline, always this goal of credit rating metrics, what does it mean as a consequence, the loan-to-value hurdle rates that or boundaries that I shared before of you. And with this trend of deleveraging, thanks to this active management on the capital recycling and as well on the operational side with this operational debt EBITDA reaching this 10x.

And all these 3, these pillars, it's for shareholder return. All these pillars and keeping this balance provides and delivers this solid FFO generation for all of you and as well, of course, beating the cost of capital additional value growth for the future. So for us, very important, and this is one of the main important things when we manage an investment committee and we manage our business, these 3 pillars are each one measurable, very important for us. You can measure these pillars and very clear, very clear and that provides accountability, which is the reason why we are here.

So all the output from this strategy is on the guidance. The results of this strategy at the end is the guidance. The guidance in short term, and we provide as well the guidance in this event about midterm. So the guidance, we confirm the guidance for 2026, EUR 0.34, EUR 0.35. As you know, we are going to propose to the AGM EUR 0.32 per share on the dividend. And on the midterm, our guidance for the midterm, and Carlos then will provide the different building blocks, how -- building blocks, how we reach these numbers, we are in the range of EUR 0.39, EUR 0.41, which is average 20% growth, which is remarkable.

So all these 3 drivers or the 3 drivers that we went through this morning, core portfolio growth, Alpha X deliveries and capital recycling, all of them with a high visibility with an active management and active execution as of today. So we feel comfortable of providing you these numbers.

I would like to as well to emphasize that this guidance is grounded with the same financial discipline I explained in my presentation. So conservative assumptions, very secure numbers and with a deleveraging trend, as I mentioned before.

And finally, the DPS, which is the other part of the question, it's a mirror of the EPS growth. You can see here the trend of the DPS growing significantly as well in line with the EPS growth. And how we envisage in the [ helix ] I just showed before in the framework of the 3 pillars interconnected themselves, the shareholder remuneration, you've seen that we have proposed, we have executed already a share buyback, and we are going to propose in the AGM a consolidation of 14.5 million shares. And in the -- when we approach our remuneration policy, in the first part, we have an EPS growth and DPS growth that provides this dividend growth policy.

Of course, in the short term, you will see if the AGM approve, of course, and if you, as an investor, will approve the shares cancellation. And with this approach of financial framework, we have the scope of discretionary share buyback in the future. If we don't find good enough returns in the investment approach that I mentioned before, and this is why it makes sense this discipline, then we have the opportunity to do share buybacks. If we have investment opportunities when we reach and we execute investment opportunities as we had in the past at 90% IRR and leverage IRR, 10% IRR, of course, we are creating more value, investing at 10% IRR rather than doing share buybacks.

Why? Because the share buybacks implicit IRR are below the hurdle rates that we are targeting in our capital recycling. So all it makes sense. And if we -- again, if we don't find or we don't see better returns enough to beat the hurdle rates or to fulfill these hurdle rates, of course, we have a scope for the discretionary share buybacks additionally.

So to close my presentation, I will give you some -- probably some key message that I would like to you take from my presentation. First message, it's about comfort on the balance sheet. I think you need to end this presentation about that we have -- we take care about the balance sheet. We take care of any metrics of the balance sheet, quality and quantity case. So the balance sheet, investment grade does not mean only metrics, financial metrics, it means more things and any single decisions, we analyze the 3 pillars that we envisage this comfort on our balance sheet. So the guardrails, we take care of them. And I think when you looked in the -- my first presentation, my first page, when you look at our track record, you look growth and discipline. And this is why we manage and how we manage the company, growth and discipline.

Second, conviction to growth. EPS guidance for this year, EPS guidance for 2028 with a clear high visibility on this growth in our business. And third, confidence on our framework. So the capital allocation approach is disciplined, measured and transparent and consistently being applied in the framework that -- in the levels of the framework that I've shared before. And we, as management, always, we believe that we have been delivering year-by-year through this profile of framework, the growth numbers are there and the discipline rating is there.

So thank you. And now I turn the floor to Carlos. Thank you.

Okay. As you have seen this morning, we are in a segment that is a prime asset class that has superior growth across European gateway cities. We have the capabilities with the platform, Juanma and Alexia explained it. And not only that we have the capability, we have proven it. We have a track record. We have delivered the returns. We have delivered the cash flow growth.

And all of this is embedded in a strong, solid capital allocation framework. Everything we buy follows a discipline. Everything we sell is being done in the framework of value creation and portfolio improvement, and we have everything that we do takes into account to have a well-grounded strong capital structure in order to optimize the work, the cost of capital of our shareholders.

So with this in mind, we build our figures. And today, we're going to show you what we think where we're going to land in 3 years from now based on our business model that has proven to be very successful. Our business model has 3 pillars as it has been already explained. Number one is our super prime footprint that really has above-market rental growth. We have really -- we are setting the standards in rents. Here you see some examples, our assets set the standards. We set the reference rent, the highest rents in the market.

In addition, and this is quite unique, I would say almost no company in Europe has really this capability with a strong development track record. People in the real estate sector, listed sector, there are not so many people that really have this track record to transform assets. What does this mean specifically looking into the next 3 years? We have 7 projects. 3 have just been delivered right now, 3 have just been delivered right now is Madnum, Diagonal and Hausmann, and they are progressing quite successfully. And then we have interesting phasing in across the next 2.5 to 3 years of 4 very attractive projects, all of them with large floor plates and with interesting urban mixed characteristics.

And then we have a third layer that we've also proven to do very well that is buying and selling, improving the average return of our portfolio and remaining with a strong balance sheet. We announced a disposal program in November. It's just a few months ago. As of today, it's accelerating both in timing and in pricing. We are getting higher prices than we expected. And this has encouraged us to enhance further the disposal activity and to add on top EUR 200 million. But we're going to also deploy capital. Our idea and what we have baked into the numbers that we show right now is that we use roughly EUR 0.2 billion into new things. One is the buyback program that has already been completed and then some investment opportunities that we are quite close to execute.

So first of all, in terms of modeling, how should you factor this in? The first layer, it's an ongoing layer throughout the 3 years, the prime operations. Maybe a little bit of distinctive elements is in Barcelona, we have especially a driver of occupancy ramp-up, Barcelona is accelerating. The market activity is gaining a lot of positive traction. So this is really an interesting engine of additional cash flow growth. Madrid, we have a portfolio that is at very high occupancy levels. So we have there a lot of rent reversion from top assets and also here and there some opportunities of letting up. And Paris is similar to Madrid, but it's really a very strong market with our assets have there an extremely strong pricing power. And then we have something in addition to Barcelona Madrid as a consequence of the longer contract maturity structure of the city, we have a significant reversionary potential in passing rents as of today. It is quite important number.

On the projects, as I said, 3 of them are delivered. They have almost not contributed a lot of rents in 2025 because they were developed 2025, and they will now kick in across 2026 with interesting numbers of rents. And then progressively, the urban business campus at [ Gal Leon Scope ] is -- will kick in towards the end of the year, then in -- towards the end of 2027, Condorcet and Sancho de Ávila, Sancho de Ávila today is already fully let. So there's no commercial risk. We have the rents already in-house. It's just an issue of timing. And then mid- to end 2028, the student housing premise Santa Hortensia.

On the disposal program, it's ongoing. We are starting now to identify new opportunities. We have seen a lot of things that can be value accretive in a disposal program and the buyback program, as all of you know, is completed. And on the prime acquisitions, we are currently working on it.

If we go a little bit into the details, the first layer, our best estimate as of today is that it will add EUR 0.05 to EUR 0.06 per share. Implicitly, this is a CAGR growth of 4% to 5% in net rents. As I said, the different -- the drivers are a little bit different in every city. Barcelona is a strong occupancy ramp up driven. Madrid is a combination. Paris has also release spread. There are some assets that stand out. [ Louvre Saint-Honoré ] has a very interesting growth portfolio, then also Recoletos and Velázquez as they are very strong assets with strong pricing power have an interesting profile. Then there's some ramp-up in Visionary in Santa Engracia. So there are a variety of different assets where we can capture additional cash flow.

Then we have the project pipeline. You have, on the one hand side, the delivered assets, and then we have the 4 project Alpha X assets that will kick in. Our best estimate is that as of 2028, we will have EUR 80 million of annualized rents. As of today, we are at EUR 8 million. You know that in the presentations, we always flag these 7 assets with a full capacity of EUR 100 million as Condorcet and Santa Hortensia and Sancho de Ávila are kicking in more at the back end of this of this time line, we get at the full capacity at 2030. The EUR 100 million are being achieved in 2030. But in 2028, we expect to be at EUR 80 million. The remaining CapEx, you see here, EUR 148 million in 2026, between EUR 100 million and EUR 120 million in 2027. These are the most updated figures, including all of the uncertainties that have been also currently in the short-term situation. And we have EUR 20 million that were already invested in Q1.

So in terms of pending CapEx as of today, between EUR 248 million and EUR 268 million. All of this, and here you see, as we always said, it's a quite relevant growth driver, EUR 0.08 to EUR 0.09 per share at full capacity that is more 2030, EUR 0.11 per share.

And then we also create value by capital allocation by rotation. So we are selling our assets, and we are redeploying the capital. As of today, we expect to have a marginal impact of value creation in terms of EPS, recurring EPS or recurring cash flow of EUR 0.02 to EUR 0.03. What is included here is the impact of the share buyback program, the investments that we are looking at that has an IRR in excess of 8% and also the contribution of the activity that we are doing in terms of third-party capital management, so cash flow from asset management that we are collecting. All of this together, we estimate as of today that it could be between EUR 0.02 and EUR 0.03 per share.

So when we look at all of it together, at the starting point on 2025, we were at EUR 0.33 a share. We expect with our business model that relies on 3 value drivers to add another EUR 0.15 to EUR 0.18, 5 to 6 from our core activity from the strong cash flow of our assets. As I said, a CAGR between 4% and 5% as you see, 200 to 300 basis points above indexation. Then a very significant driver, this is why we have done this many, many years because we have the capacity to do it successful is urban transformation. It's projects EUR 0.08 to EUR 0.09 per share. And then capital recycling, we are in the business of constantly improving the average return of our portfolio EUR 0.02 to EUR 0.03 per share. So together, EUR 0.15 to EUR 0.18 that in an environment that everybody knows where we are still in a situation of increasing interest rates more than offsets the impact from interest rates. So a very healthy and solid cash flow growth and embedded in a disciplined and strong capital structure.

From point to point, this is between 16% and 22% and 5% to 7% CAGR. This is by far, as of today, one of the highest or maybe the highest growth profile in the European listed sector at the moment. So this is at the end the proposition. And as you can see, we are confident on it. It has been built very -- with a lot of detail and with a solid and disciplined capital allocation framework. And when we look at the last 10 to 15 years, these are the growth rates that we have always delivered. So we are quite confident on it, and that's why we decided also to flag it today and to explain where it comes from in the different building blocks.

And with this, do the final wrap-up of the session.

Thank you, Carlos. I think that we are not only late, but ahead of time. So this was not planned to be so on time, but it's fantastic. So this last section, it's a little bit of a wrap-up of everything that has been said, a little bit of maybe additional deep dive on certain things that maybe need an additional layer of comments that have to be provided and the final takeaways that we expect from this meeting today.

The ideas. Coming back to the very beginning of this session this morning, there's something going on in our market that is good, that offers growth and that offers an opportunity. It's not only about Colonial. It's about what's happening in urban cities, what's happening in the office market. There is a clear trend towards polarization. There is a chronic supply of the right product for this polarization. This is unbalance versus the take-up that is surging in Europe in the search of these trophy assets. This creates a number of dynamics that create, let's call it, a better kind of external growth factor that are driving our sector and that explains why the performance has been a good one so far, but moreover, why do we expect this performance to remain even better in the future.

And the second part of the story is, well, this may happen in the market, but we happen to be very well positioned. We've been strategically committed to this positioning for a long time. That has already generated a number of returns. But today, that is transforming Colonial into the prime dominant player, the dominant player in prime assets. And we do this -- we have this positioning with an unparalleled track record, having been able to deliver this in an international footprint and with also the additional layer of capability to generate returns through capital recycling and development of new projects.

I like this slide. This is -- it's just now. I think that these numbers is recently. But if you could take them for the next recent years. It's about like-for-like growth versus exposure to prime. This is a plot that I asked for the most recent data available, but this could apply for recent years, and we believe that this will apply for the next years. We want to be in the range of the highest GRI like-for-like growth that will explain the superior returns of Colonial going forward. And this, and we insist is something that it's not about wishful thinking from now on. This is a vision of returns, the leverage and everything else in the last 10 years.

In the end, the history of Colonial in the last 10 years is about a history of sound growth with good discipline in terms of leverage. It's a good equilibrium between growth and leverage that has been delivered consistently and that has led us to where we are today. So these are the foundations of where we are in order to project ourselves into the future.

How do we project ourselves into the future? Well, this slide is a slide that you should never do too many things explained in one slide, but I will try to walk you through this because in the end, it's a summary of everything that has been said today. If we project Colonial in the next future, first of all, a framework. Here, there is a triangle of wanting to invest in the best places with the higher returns possible with discipline, as I said before, if we missed it, we missed it. We've lost a couple of opportunities in Paris, but it's important that we remain disciplined in our hurdle rates that we want for our investments. This is an angle, but this is dependent on the prime financial structure that we want to achieve. And this is within a model that in the end is to generate the EPS and DPS and in the end, shareholder remuneration that we want for our shareholders in the future. The returns we want to give for our shareholders in the future are based on Prime CBD operations, on Alpha X, on capital recycling.

Just to summarize where this is coming from, I think we just saw from Carlos' presentation, very clear numbers attached to this. But I think that the strength on Prime CBD operations is clear. I won't insist in this. We had a debate yesterday. We had pages and pages of evidence of superior returns in the last few years. In the end, we send them to the appendix of the presentation because we thought we would be boring you. We just included a couple of one, but there's a number of evidences.

Prime Factory Alpha X remarks. We have those 4 projects. There were 5, but you are sitting today in the # 1 of these 5 already done, delivered. Here is the product, here are the returns, the value created. There are the 4 remaining ones. Here, to emphasize this, let's say, flexibility in terms of our commitment to prime factory to creating a prime product within a wider scope of looking at urban transformation opportunities.

So you see that out of these 4 opportunities, 2 are not going to be office buildings. One is an office -- sorry, a hospital project in Barcelona. It's interesting. It was the first office building that was built in the 22@ neighborhood in Barcelona, the [ T-Systems ] headquarters in Barcelona. This area of Barcelona, it's super clear that it's on balance between office supply and other uses. It needs desperately a hospital. It's not us who are saying this. The town hall is chasing out there all of the time because they are so much interested in this project. Of course, the operator that is renting this for us is a super believer and the returns are much better. So that's why we are delivering this project.

The second one that is -- and this one will be delivered next year. And next year, we'll be saying as we are now saying from Madnum, this is done. The next one, maybe it's a little bit more tricky is the student accommodation one, Santa Hortensia. So the story of Santa Hortensia was we expected that with the new evolution of IBM, the way the company has been restructured, this will have the opportunity to go in different directions. When we bought it many, many years ago, we already had all of these kind of stress test scenarios. We went through the initial analysis. It was crystal clear that there was a better use for other users, non-office related that had a higher value. Anything related to residential is offering today an opportunity, if possible because it's not so easy in different European cities, but in Madrid, it's a clear example. By doing transformation, you achieve additional returns.

We had a look at different alternatives. Let's call it, traditional residential did not work out because of too much time attached to the project. But short-term resi, which is living, flex living, hospitality, student accommodation, anything work out pretty well. So we decided to go into the student accommodation direction. Why? Because so much pressure from all operators, from everybody in the market looking at very much interest in this. By the way, we keep the optionality of this coming back to ordinary flex living or other areas of flexibility of hospitality if market trends give us this advice. It's to transform a student accommodation into ordinary flex living, it's very easy in terms of CapEx requirements. So let's not forget about this optionality because, as you know, flex living is also booming in Madrid.

Of course, every time that we approach something that is not office, we carefully assess all of the risk attached to that. And that meant here selecting an operation -- operating partner that came with us. We went through the interest of many different people, and we finally selected one, which, unfortunately, we are in quite advanced stages of discussions, but still not at the time that we can be transparent, [ PT ], but that's how business happens. but we are very well advanced. And so in this particular area, what you should be seeing in the future is that we announce at some point, a partnership to manage this project, which will bring comfort on, let's say, the proper management of the opportunity.

We are considering going a little bit step beyond, and that is to create together with a partner, a platform. I was going to say a small platform, but it won't be small of our asset plus other assets in our -- in this universe of this partnership. Basically, what we -- and I'm saying this because maybe this will be disclosed in the near future. The rationale behind this is that we are enhancing the value of what we have. So today, we have a development that is promising fantastic returns 3 years from now, but it's a development and that's it. If we contribute this to a platform, we will be transforming this into a share of a portfolio that is cash flow producing sooner, that has a more dominant position in terms of operations, in terms of competing, where we have already crystallized the expected value that we have for 2028 of our building. So we are derisking the development, introducing cash sooner, having more value.

So that's why we may be going in this direction. Does this mean that we are, let's say, revisiting the strategy of Colonial? I think that today, we wanted to pass the message to you that we are pretty focused on what we do. And that is pretty consistent with maximizing value for every asset we own, and we are not shy and we are ambitious in the way we do it for every asset. And sometimes we may give a wrong perception. I remember when we did the residential here, the one you passed through, wasn't this a wise decision. We did it. That created a much better environment. We did it. We sold it.

By the way, today, we announced that we are quite advanced in the residential in Spain that was contributed from [ Piteria ] 2 years ago. I remember a little bit of hesitation about what does this mean. I think that I would like to pass the message of comfort to be an office player at the heart of your business together with maximizing value through urban transformation is something that is consistent and it's in the benefit of shareholders, and that's why we are here. So this is the comments on Alpha X. So 2 will be currently urban transformation projects. The other 2 will be traditional prime factory initiatives.

And on capital recycling, the message is clear. Divestments are going quite well, as you can see, much better than disclosed before, I would be honest, than expected. So when we decided to go retail in the process of selling residential, we were right. We are achieving much higher premiums and much quicker than expected. So the EUR 0.5 billion divestment program, it's been a success, honestly. Based on that, we are flagging the additional [ EUR 201 million ]. And on the investment side, EUR 200 million, yes, the message is you will probably see us investing in Germany. If things go the way they are, it will be prudent because we are talking below EUR 200 million framework. it will be Prime. If it's not Prime, it won't happen, let's put it this way. It's not as usual. It's not passive ownership of a beautiful asset. It's because we have identified things that we would like to do with these assets in due course. So we will have an initial profitability, let's say, expected, which is higher than what we usually are used to in France or in Spain.

And on top of that, we'll have a little bit of real estate rationale attached to that, that will bring us additional years of returns in due course. It will probably be again through a partnership. There is another question that we put to us. Are you comfortable doing things here and there? And look, the story of Paris, it's been 20 years, 20 years of international, let's say, exposure. By the way, urban transformation, the Mandarin, it was 15 years ago, 10, 12 years ago. Message of comfort, we do this on a regular basis. So you will see a little bit of this capital recycling happening this way, but most of all, within this framework that you have repeatedly been explaining today.

All of this in a context of wisely managing investments versus deleveraging versus share buybacks. I think that Carmina explained that very well. So we constantly look for investment opportunities. We are strict about the hurdle rate and the return we want to achieve. If it's out there, fantastic. If it's not there, okay. We also want this to be on a condition precedent of prime financial structure, which today means additional deleveraging. So first goes the capital structure, then later goes the investment decisions. And that means also context of capital recycling, selling and buying. And that's basically the framework that we expect regarding capital structure.

I think that the idea today was to pass you the message that we pretend to have a sophisticated approach to financing decisions. In the end, it's about minimizing our average cost of capital. And I think you have seen what is the cost of capital that comes from this capital structure decision today. It's not -- we do have a prudent capital structure. We also manage, I think, as many other companies, interest rates with prudency, meaning hedging policies as everybody else or not everybody else, as many companies.

And on top of that, we were, if you want, lucky or wise to take some decisions a few years ago that generated value for shareholders for several hundred million euros, at the beginning, more than EUR 400 million. And this can be recognized in different ways. We follow strict IFRS rules as I think anyone should do. But you can look at this in many different ways, but the value is there. And these are good news, the fact that value has been generated. How do you look at it and how it is recognize? I think it's second level debate. The first one is value has been generated.

But anyway, as Carmina explained, our deleveraging process, it means that we are at the low end of the frame that is considered by S&P for our current rating. On top of that, with our current business plan our expectations is that this LTV with current market circumstances will go down between 150 and 250 basis points additional for this kind of midterm, let's say, scenario that we predict. So I think -- and last but not least, and also Carmina said it is very important, without compromising earnings growth. I think that any company, it's about the sound equilibrium of earnings growth with leveraging the leverage or disciplined decision.

So this is the framework of what we want to do going forward. Since this may seem very theoretical, the objective for today was to translate this into numbers. And this is a kind of summary of the business plan that we use internally to work the management of Colonial and SFL. We have a, let's say, sophisticated and detailed business plan in order to frame any decisions. We look at everything from an industrial point of view. I said at the beginning that it's nice to have these opportunities to talk because as you can imagine, everything we do, we cannot do it looking at the impact during this year on EPS or during this year on the balance sheet. this would not be sound management. We do it looking at a 5-year period or a much longer even year period.

To pass a message today, this is -- well, in fact, Carlos going through this. This is the translation of everything we are expecting to do in the next 3 years. And this means that we should see our EPS in the range of EUR 0.39 to EUR 0.41 by 2028. which means an annual total return between 11% and 13% as a combination of the EPS yield and the growth. And you can look at this also from looking just at dividend yield plus the growth.

Maybe it's a side comment that is maybe good to have or maybe not so much. But yes, we were told, please, let's remind the audience that we, the management, have skin the game and that this matters to us. And I can tell you it matters. I can tell you because if you want to be very, let's say, very basic about this, our remuneration is biased towards variable remuneration as opposed to fixed remuneration in a comparison with the benchmark. And in this, let's say, variable part of our remuneration, it's biased towards total shareholder return for shareholders above peers, above the benchmark.

So we are on the same boat. That's what I wanted to say with you. And it's not that we want to please you with this and then we come to our ordinary life. Our ordinary life is about to deliver -- sorry, not for you, but for us or let's -- not only for you, but for us, too.

So this is basically what I wanted to share today. Now we will have for those of you who are sharing this place with us today, the opportunity to questions, debate for anything that needs more, let's say, deep dive. But I think as I said at the beginning, it's been a pleasure to have this opportunity. At the beginning, I mentioned, well, these are the takeaways that we would like. You always have to even more simplify.

For me, the takeaway is, well, that we have a good strategic positioning. But more importantly, that this company is offering clear visibility on midterm growth. In the end, that's what we wanted to share with you today. Our daily life when we interact with capital markets, sadly is too much focus in what's happening in the next few weeks or months or within the year. For me, capital market is about having the opportunity to look beyond. So for me, the main takeaway is clear visibility on midterm growth. And because of everything that's happening, all of this within a framework of disciplined capital allocation. So we also wanted to pass the message of not only how much, but also the message of how, how are we managing this company.

That's it. So thank you. And just now in a few minutes, we will start the second part of that debate or Q&A. Thank you.

Ladies and gentlemen, welcome to Colonial SFL, First Quarter 2026 Results Presentation. [Operator Instructions].

I would now like to introduce Mr. Pere Vinolas, CEO of Colonial SFL. Please, sir, go ahead.

Thank you. Good afternoon to everyone. A pleasure to be again today here to share with you the results for the first quarter of 2026. The team, as usual, with me, Carmina Ganyet, Chief Corporate Officer; and Carlos Krohmer, Chief Corporate Development Officer. I am on Page 4 of the presentation as introductory remarks.

I believe that what we are sharing with you today is an outstanding set of results for this first quarter. I would like, of course, to emphasize that this is a quarter where a number of events at the macro political -- macroeconomic and geopolitical level have happened that creates a little bit of a headwind on the dynamics of the economy as a whole, also in the real estate industry.

And we have to say that the performance of our company during this quarter has remained totally resilient and with a very good performance. If I had to summarize the number you will see, Colonial, it is still about 2 things. One is pricing power. Basically, what you will see, it's like-for-like rents, rental growth ahead of inflation, healthy numbers again.

And the second main characteristic is relative performance. So it's not that we are just following the general trend of what's going on in the real estate market. I think it's quite clear in the last few years that the polarization effect has come into place and there are winners and losers and companies that take advantage of this more and others than less. And this clear relative performance, I think that it's very obvious in the case of Colonial SFL again. Basically, what I'm summarizing in these introductory remarks is you will see through the presentation, first of all, a strong leasing activity, superior rental growth, 3% rental growth in the quarter, a release spread of 7%, driven by Paris portfolio, 18% and the occupancy having a positive momentum, reaching almost 200 basis points more than a year ago.

The top line revenue growth is growing 7%, as you will see, above peers. The like-for-like growth is 4% again, pricing power and leading the sector. The like-for-like net rental income, 4.5%, 260 basis points above indexation. This is the performance of the P&L.

Besides this, the basic outcome of this quarter in terms of balance sheet is a disposal program that is ahead of the plan and overall strengthening of the capital structure. You will see that we have executed 70% of our disposal program year-to-date. The EPRA LTV is reduced by 180 basis points.

The rating has been reaffirmed by S&P. The bonds have very successfully been placed. And this is on the back of -- with the support of the strategic pillars of Colonial, which is a clear positioning in Prime CBD operations, which drives this cash flow growth, this pricing power.

Second, the Alpha X projects that are adding extra layers of growth, not so much now, but more and more in the near future, particularly next year. And then the portfolio management and capital allocation decisions that are the third layer of return for shareholders.

Page 5 is about the specific numbers. We are finishing the first quarter with sustained cash flow growth. Gross rental income, EUR 104 million, 7% year-on-year. Recurring EBITDA, EUR 83 million, 5% year-on-year. The EPRA EPS, EUR 0.087. That means in line with the full year guidance that we previously announced. This is supported by an excellent operational outperformance. Rental growth, 3% in 1 quarter, that is compared to December 2025.

Release spread, 7%; occupancy, 93%, that is almost 200 basis points more than a year ago. And finally, capital structure, strong credit rating. Reconfirm particularly S&P, which reconfirmed just recently the BBB+ rating. Loan-to-value 36.7%, 35.2% on EPRA LTV measure. Financial costs still below 2%. These are the headlines I wanted to share with you.

Now as usual, we go first through an analysis and description of the portfolio management afterwards about the financial performance of the company. So please, Carlos, step in when you want.

Thank you very much, Pedro. On Page #7, this first quarter has shown very, very strong leasing activity. We signed 37,000 square meters in this quarter that are equivalent to EUR 17 million of annual rents that we've signed in the contracts -- this is a year-on-year increase of 28% compared with the first quarter of the previous year.

What is really important to highlight is that this take up, this contract signed have a very significant push from AI and tech tenants. So we have really benefited in total demand in 36% of AI and tech activity tenants that want to be really in the best places. So it's really an upside driver for our activity, 13,000 square meters signed out of this source of tenants.

If we look then per business segments in terms of cities, Paris, again, that's a very strong market in the prime asset class. We have signed the EUR 7.5 million in Madrid and Barcelona, EUR 5 million of rent secured.

Paris, EUR 7.5 million on 7,500 square meters. So as you see, an average rent of all of the things that we signed at levels of 1,000 that are the levels of our prime assets. If we then go to the next page, we see at what pricing levels we have signed. We see on the pricing power that our prime assets capture.

First of all, release spread. So when we renegotiate contracts with the tenants that are already in our portfolio, we had a very, very strong quarter. We achieved an 18% release spread in Paris. Paris by far, the strongest city in our portfolio in terms of the release spread. What is also very important to emphasize is that in Madrid and Barcelona that a year ago, the release spread was flat because these markets have had higher inflation during the COVID times and markets -- the rents were more mark-to-market.

We are now getting positive release spread 2% in Madrid and 6% in Barcelona. When we then look to the second KPI that is rental growth, where we look at all of the contract signs, not just renewals, also the new space signed. What we are seeing is that we have signed an increase of 3.3% versus the market rent of all of these contracts and assets as of December 2025.

So just in 3 months, 3%. So it's quite remarkable number because you have to think about it in annualized terms at the end. So just in 3 months, we're already capturing rental growth, especially with the people that are already in our portfolio because they have no other place to go. And so we have signed very high rents.

If we then go to the next page, we see on the project pipeline on the recently released projects that we are progressing quite satisfactorily. On the left-hand side, we have the biggest project we have ever done. That is the Madnum urban [indiscernible] in Madrid. We are -- as of today, we have let already 85% of the total premise that is close to 60,000 square meters.

Once fully stabilized, this will generate EUR 21 million of annual rents. We have 85% secured, but we are in quite advanced conversations on additional 7,000 square meters that will push this up to 97%, so almost full occupancy. The 85% correspond to EUR 70 million of annualized rents.

Q1 just has EUR 3 million. So there's a lot to come in the future. And then Hausmann is an asset that will deliver EUR 30 million of rents. As of today, we have 39% let that corresponds roughly to EUR 5 million, and we are having conversations on the remaining part or half of it in a more advanced stage.

Finally, on Page 10, what you see is the progress on the occupancy, we see here the last 3 quarters. So since Q3 2025, where we were at 91%, we are already with all of the contracts that we secured today at 93.3%. This is 200 basis points in 2 quarters, so roughly 100 basis points per quarter.

So our product attracts our product is having a strong letting momentum. An additional important element to remind, if we exclude Hausmann and Madnum, so look in a way to a more like-for-like portfolio, the rest of the portfolio remains at 95% of occupancy, so super high occupancy that is a healthy occupancy ratio to have really enough activity.

You can see it basically on the maps on the right-hand side that almost all of the assets are at levels between 90% to 100%. So our portfolio is really a portfolio that always has high occupancy.

So just to summarize, you can see, number one, great rental growth, almost 30% more than a year ago and supported by the technology sector as a consequence of a big upside in a strong letting momentum, higher occupancy, 200 basis points more than a year ago. As a consequence of higher occupancy and strong letting volume, higher rents, 3% rental growth in just a quarter with a lot of pricing power and well above inflation. Let's have a look now at financial performance. Carmina, please.

Thank you, Pere. And so let me now walk you through our financial performance in the first quarter. Starting with the gross rental income, we reached EUR 104 million, which represents 7% growth year-on-year. This growth comes from 2 complementary drivers. The first is our core portfolio, which delivers 4% like-for-like increase, well above the peer's average, as you will see shortly.

And the second driver is the contribution from delivered projects, which adds an additional 3% on top. So notably, disposal had a neutral impact in the P&L. Is very in the first quarter, clean and high-quality revenue growth. In the next page, digging deeper into the like-for-like growth, I want to highlight something that probably is very outperforms. So we are not just capturing indexation, we are significantly exceeding it. So on the 4% like-for-like gross rental income growth, probably half of it, 1.9% is from indexation and the other half comes from rental growth premium and as well occupancy gains.

In absolute terms, our gross rental income like-for-like 216 basis points above indexation. And when we look at the net rental income as well, this spread widens ever further, even further 244 basis points.

So this is a direct reflection of the structural supply in our CBD markets, but moreover, thanks to our quality of our assets and as well of our tenant base, as you've seen previously in our contracts. Turning to the bottom line. Recurring profit came to EUR 55 million, in line with last year. However, I want to flag comparably point for a proper reading of this figure.

The first quarter 2025 figure included approximately EUR 2 million, which is one-off income related to early termination contract closures. Excluding this effect, this one-off effect, the underlying recurring profit growth is close to 4% year-on-year, which is in the right comparable growth rate and fully consistent with our operational momentum.

At EPS, we delivered EUR 0.087 per share, and we are on track with our full year guidance 2026. EPRA earnings on a 2-years view are up 16%, reflecting the compounding effect of our growth strategy. So I will cover the financial evolution in details in the next slide.

In the balance sheet, so I am in Page 14. This means on the balance sheet, what I think particularly as mentioned, it is a very strong story this first quarter. We executed EUR 350 million disposals year-to-date, representing 70% of our total disposal program in just 6 months. These transactions were completed at or above appraisal values with a premium, especially on the residential assets.

And as you know, we disclosed in Paris landmark deal was closed at a very attractive prices. The results, our loan-to-value declined by 144 bps to 76.7% and our EPRA loan-to-value decreased as well 182 basis points to 45.2%. On the cost of debt, despite of having been very active in the bond market, repositioning the maturity of the bonds during 2025 and 2026, -- our cost of debt stands at a very interesting level, 192%, essentially flat of the last 3 quarters.

This is the result, as you know, from the previous conversations from our disciplined hedge strategy, which allows us to lock in a very competitive rates ahead of any issuance. So even as we have been extended our maturity profile of our debt and strengthen our balance sheet, we did so without sacrificing our cost efficiency.

So this is very, I would say, outstanding in these markets. And on that note, we successfully, as you know, placed EUR 500 million green bonds in the first quarter, 3.4x oversubscribed, swapping short-term maturities in 5 years funding and further reinforcing our debt structure.

And just last month, S&P reaffirmed our BBB+ rating with a stable outlook. So a strong external endorsement of our financial discipline. And finally, liquidity stands very strong, EUR 2.6 billion, giving us the full flexibility to continue executing in our strategy.

Thank you, Carmina. Final remarks on my side. I think that the set of results that we are sharing with you today are in line with previous quarters, are quite strong. And I think that it's basically linked to the 3 pillars underpinning earnings visibility and value creation.

I think that the basics of Colonial is about prime CBD operations. This is what is giving us pricing power and utilization happening in Paris, Madrid and Barcelona and creating a strong reversion. That's what has created a 4.5% like-for-like net rental income number for this quarter, the highest among peers, 260 basis points spread over indexation.

And if you want to see it with different numbers, 18% release spread in Paris, 5% yearly growth in renewals, 195 basis occupancy increase since quarter -- third quarter 2025. This is the very basics of what's going on in Colonial SFL.

On top of that, I would like to emphasize the current and most of all future contribution coming from Alpha X. Alpha X is a number of projects that as of now are contributing EUR 4 million rents in the first quarter of this year, but most of all with potential of contribution to the EPS growth in future semesters and particularly in next year that will contribute in a very fundamental manner to the EPS growth.

All of these projects are going very well as expected in terms of timing and delivery. So that will be a major source of value creation on top of Pillar 1, which are prime CBD. And the third pillar of value creation is about portfolio management and capital allocation. I think we've been consistent in the divestment plan that has been delivered. It's -- there has been a very good progress on the EUR 500 million plan that we announced in November last year. 70% of this plan is completed. Let's not forget that EUR 1 billion have been sold in the last 3 years. And I think I would not be wrong if I talk about EUR 2 billion in 5-, 6-year timing.

And obviously, every, every time that we go through a disposal, meeting, if you want to call it, NTA level, if you want to call it yields or cost of capital well below implicit values in the stock price, call it whatever you want, but with very good premiums in all disposals. So this is being delivered.

And finally, in this quarter, we have also completed the buyback program that we announced just a few weeks ago in very attractive terms and with an interesting accretive impact in the KPIs of this year.

My last remark is the one you see in Page 18. I think that you will probably agree that the times we are living, it's super hard to emphasize the individual performance of a company when everything seems to be so much related to macro trends and mega simplistic views on certain sectors or geographies or countries. I said at the beginning of this presentation that in the end, what Colonial SFL is delivering is about pricing power, but it's also about relative performance, it's about differentiation.

But I think that we've disclosed a very good number of like-for-like gross rental income. This is a very good number in absolute terms of 4%, 7% including delivered projects. But also it's very important to bear in mind that if you put it in the context of relative performance with our peers, we are clearly showing outstanding number.

This has been the presentation in Page 19, the major remarks, which is mainly operational outperformance, growth visibility, market-leading rental growth, pricing power continuing to reinforce the cash flow visibility. Growing occupancy, which, of course, is the result of a sustained demand, with this particular color of demand being supported by technology and AI-related tenants.

Paris portfolio outperforming peers through resilient operation and leasing performance. The pipeline in line with our expectations. So future rental growth and long-term portfolio value creation ahead of us, active capital rotation supporting deleveraging and crystallization of portfolio value. And finally, 2026 guidance on track, supported by strong operational fundamentals.

This was the presentation for today. Finally, just a reminder of our Capital Markets Day expected for June 4 in Madrid in Madnum and our Annual General Shareholders Meeting expected for June 17. That's just a couple of reminders. Thank you. This has been the presentation of results for this first quarter. And now we are available for any questions you may have. Thank you.

[Operator Instructions] Now the first question comes from Valerie Jacob from Bernstein.

So I've got 2 questions. The first one is on capital allocation. You've done, as you said, already 70% of your disposal program. And I was wondering last time during the full year presentation, you were talking about looking at acquisition and also now you've done your share buyback.

So I was wondering if you could sort of give us an update on the way you're thinking about capital allocation? Like for example, could you do more disposals? Or are you still looking at potentially acquisition? Or could you do more share buyback now that you've done your buyback?

So if you could just share some thoughts on how you're thinking about that, that will be useful. And my second question is on your occupancy. If I look at the pro forma occupancy at year-end, it was 93% and now pro forma it's 93.3%.

And so I was wondering if you think this is a good pace and if we can sort of think that your occupancy is going to grow by 30 bps every quarter? Or maybe if you're thinking differently about it? And what can we expect in terms of -- what do you expect in terms of leasing space?

Thank you, Valerie. I will go on the first question, and then I will ask maybe Carlos to step in on the second one. Look, our view on -- first of all, on capital allocation, we are pretty satisfied with what's going on and the speed and quality of the divestments that we have gone through.

Looking forward, I would say a couple of things. First of all, we will look at both investment and divestment alternative. I think that by definition, our mission is about creating value through an active value creation through capital recycling, acquiring and selling. So both things may happen.

But I would say that the marginal trend for the rest of the year will be increased net selling position, and we may enhance what you've seen so far with additional net disposals. That would be on the first comment. On the occupancy, Carlos, would you like to step in?

Yes. On the occupancy, basically, what you have seen that in 2 quarters, we have improved 200 basis points, so roughly 100 basis points per quarter. It's obviously difficult to say what's going to be the next quarter, but we are positive. We are having a lot of conversations on the top product that we have in the market. So we are positive.

Also to remind you, in like-for-like terms, we are remaining at 95% of occupancy, but we are positive. So we had a good momentum. We have a good rhythm, and we think it can continue. So we should be quite soon at a very high occupancy level again, [indiscernible] is already high, but we're going to be high again. And as we flagged, we are having good conversations on Madnum. So we are positive. Yes.

Next question comes from Fernando Abril from Alantra.

I have a couple of follow-up on the disposals on the enhancement of the disposal program under analysis that you mentioned in the presentation. And it's a follow-up, which is basically, if you end up selling another, let's say, EUR 500 million worth of assets, how should we think about the capital ration, 1/3 to deleverage, 1/3 to shareholder returns, 1/3 to reinvestment? Or any -- I don't know, any color you can give us on this would be very helpful.

Second, on the Release Spread in Paris, the plus 18%, which is very high. It was based on 8,000 meters. I'm looking at it right now. Was this a single asset? And should we expect also this huge release spreads on the upcoming renewals? And also linked to this, how should we think of release spread -- sorry, incentives right now with -- along with these release spreads? Is it coming with a higher level of incentives or similar to past quarters? And last -- sorry, those 2 questions.

Fernando. I will go through the first one and ask Carlos to step in on the second one. Look, on the follow-up of the disposal program, first of all, as a general comment, we're working on a number of things and maybe -- and probably we will be more specific at the Capital Markets Day opportunity where we'll probably be able to provide more, more color in this.

as of now, I would say that we don't have a specific hurdles for the allocation of the proceeds of the disposals. On the first EUR 500 million, as you know, yes, no, there was a sort of, number one, share buyback that we have already completed. And number two, some opportunistic investments.

And number three, the deleveraging on the additional disposal program we may do, there's no specific goals for this. But I would say that the overall aim is to further deleverage the capital structure of the company. And I think that more detailed color may come at the time of the Capital Markets Day. On the second part on the release spread of the dramatic 18%.

Maybe first market data that many market participants have not really taken into consideration that in the CBD market in Paris, this quarter, the incentives for the super prime assets have decreased to a level in the broad market. I'm not talking about Colonial for the prime assets from 15% to 17% a year ago.

So in the prime in the prime asset class, that is the segment where we are operating, the incentives have gone down. And as you can see also the demand is strong. In our portfolio, that's really the super prime part of the plan, we are signing at the moment between 12% and 14%.

This is extremely low, below the market data of today in Paris. So yes, we are signing at very good terms. We are confident our assets are strong. We have also Paris is a market with long-term contracts. This allows you to have always a little bit more release in [capital] markets with shorter-term contracts. So there's no reason to think that the coming quarter should be very much different to what we see today. So we are positive on it.

And sorry, [relies] the spread, Fernando, is not one single contract you asked for. It's across all the contracts that we have signed this quarter.

Next question comes from Celine Huynh from Barclays.

I've got 2 questions on Barcelona, please. First one, I'm struggling to understand the 11% like-for-like rental growth. Can you explain how you achieved this number because it's quite high. And I don't think occupancy has moved much as well. And then a follow-up to that, do you see some improvement in the Barcelona market? Do you think we'll get some kind of inflection point soon?

Thank you, Celine. Carlos will take care of this one, 11% like-for-like growth and the general view on the Barcelona market.

Well, on the Barcelona market, it's a combination of occupancy and also pricing, especially -- and I think we highlighted this in the year-end presentation, the pricing performance has been extremely strong in the Barcelona market. The market is really picking up at a very strong pace in rental prices.

We are signing now, for instance, at our building, we are signing levels of 33 to 34, where a year ago, the prime rents were more at 27. So we have now an extreme acceleration and then also some impact of improvement in occupancy. And yes, this is basically the main effect. And as we are now starting on a little bit lower figures, we are having an extremely strong effect this quarter of 6% is volume driven and the other 5% is price driven.

And your views on Barcelona?

On Barcelona, we are seeing accelerating momentum, accelerating activity in super prime product and also recovery and starting of significant absorption in 22@ that should also help. And one of the main drivers is AI and tech demand that Barcelona is one of a good destination for this type of...

Yes. So in other words, Celine, in Barcelona, when I see the performance of the, let's say, call it [price city] location, I do not see any difference regarding Madrid or Paris in terms of outstanding performance because the drivers in terms of limited supply versus strong demand are exactly the same.

And then what is unique in Barcelona is that on the 22@, I think that there was a historical case of oversupply that is disappearing and disappearing because no more supply is at and demand is taking care of it. So a stronger momentum.

And Celine, probably one data from the market perspective. So you know the size of the market, the fish market in Barcelona is 6 million -- the fish market 6 million square meters office stock.

Madrid is EUR 13 million. And this first quarter, the data in Madrid has been roughly 90,000 square meters. Total market and the takeup for Barcelona 75,000 square meters. So in relative terms, to the size of each market, Barcelona has been accelerated because it's almost 50% of the market Madrid and the takeup is in line.

Yes. I guess I'm just a little bit confused because if you look at your peer on an earlier call today, they're losing a big tenant in Barcelona and they weren't as optimistic, I would say, compared to you guys. So that's why I was interested in like why the diversion seem to use?

Well, maybe the product is not exactly the same. And look, I cannot have an opinion on the views. I think that in our case, it's quite consistent with the views that we have been before, and we are supporting a little bit this with the data that we're just sharing with you like the numbers that Carmina are sharing with you.

Next question comes from Florent Laroche-Joubert from ODDO.

I will ask 2 questions, if I may. So the first one, would you be able to give us maybe more color on your strategy for the letting of scope in Paris? I think it will be delivered in 2026. And maybe my second question maybe as a follow-up on your disposals. Could you maybe precise or give more color on what you are targeting in terms of deleveraging by doing maybe more disposals?

Yes. On the first question, I think there's nothing in particular to say. Scope is actively now being marketed in the Paris market. There's a good reception by prospective tenants, but we are just at the beginning. As you know, the central case for marketing of this building would be second half of this year and first half of next year.

We are quite, let's say, comfortable with the standards of quality and uniqueness of the product. I think it has the reputation that the SFL product has had always in the market, which has led always to outstanding letting performance. So we have high conviction on the reception that we will have from the market. But I think we are in the early stages to give you additional color on this.

On deleveraging additional target level, Carmina, if you want to step in.

The target level, meaning the capital structure, I think we always said the same -- when we look at the metrics on the rating agencies, this is a more holistic approach in terms of EBITDA debt EBITDA, loan-to-value and ICR. And to give you some numbers, we would be in the range of 40% loan-to-value, which is in line what the rating agencies are providing us to be in the investment grade -- higher end of the investment grade range.

So 40% is for your IFRS LTVs and EPRA?

Yes, as [indiscernible].

Yes. But to be honest, as Carmina is saying, we are -- I mean, not so much about the magic of certain ratios like LTV. For us, the fundamental issue, it's the quality of our debt, which is proven several times that has the support of the debt markets. It's not only that recently, again, BBB+ by S&P just a few weeks ago.

It's about the spread that we show on the debt market. It's the overall quality that we care more about than a specific number of LTV or any other KPI. But in our view, it can be simplistic and misleading many, many times. So it's true that we tend to show, let's say, more limited numbers regarding LTV than in previous quarters. But the overall goal for us is to have the highest quality of the debt in a more, let's say, holistic analysis level, such as the one that is being provided by rating agencies.

Now there are no further questions. Therefore, I give back the floor to Mr. Pere Vinolas.

Well, thank you. It's been a pleasure to share with you these results, even a higher pleasure when they are good results as one of this quarter. We hope to see you again soon for the next presentation of results for the Capital Markets Day or in any other occasion. Thank you, and have a very good day.

Ladies and gentlemen, welcome to Colonial SFL Full Year 2025 Results Presentation. [Operator Instructions]. I would now like to introduce Mr. Pedro Vinolas, CEO of Inmobiliaria Colonial SFL. Please sir, go ahead.

Thank you. Good afternoon. This is Pedro Vinolas speaking. Welcome to the 2025 full year results presentation. It is a pleasure to share with you the results of the company for 2025. We are going to run you through this immediately. There are 2 things that we would like to do today. One is report to you these results, this excellent set of results. Second, also inform you about relevant matters, recent events and the strategic framework that the company is using to run ahead of its strategy. I'm on Page 4 of the presentation. So let me start you directly with the highlights of the results of our company for 2025. As you will see, we believe that these are outstanding operating results with solid execution of the disposal program.

Main highlights. In terms of cash flow and cash flow growth, we are presenting a total gross rental income of EUR 399 million for 2025 with a very impressive 6% like-for-like growth attached to this, EPRA earnings of EUR 211 million, 9% more and an EPRA EPS of EUR 33.6, that is confirming the guidance that we've been sharing with the market in the past. In order to produce this cash flow growth, we've been able to deliver an excellent operational outperformance. Rental growth in terms of ERV growth is 7% year-on-year like-for-like. It's particularly remarkable that this 7% becomes a 9% if we talk about Paris. The release spread is 8% year-on-year for the group, 16% in Paris. And the occupancy, it's 92%, remaining at the standard high levels that the company is used to. Translated into asset value growth, the gross asset value grows 3.0 like-for-like, reaching a new figure of EUR 12.2 billion.

The NTA, the net tangible assets is now EUR 6.1 billion. The net tangible assets per share becomes now EUR 9.70 per share. And this is also supported by relevant capital recycling activity. We will share more details today about recent events regarding this strategy, but the main headline would be disposal program on track, EUR 300 million delivered year-to-date, everything in line and confirming appraisal values. As a result of that, loan-to-value 37.1% and always with a contained financial cost that is 1.91%. This would be the highlights of the results that we will be sharing with you in detail immediately. It is important today also to provide a little bit of framework and also information about recent events that provide additional light into this recent performance. I'm on Page 5. First of all, as I said, these results are proving that prime asset class are delivering a strong rental growth, which is, number one, superior to pricing power, more than 400 basis points above indexation.

It is also clear that these results are not only very good in absolute terms, but also in relative terms to our peers. 7.2% like-for-like growth for Colonial SFL in Paris for the group, 5.8% any peer well below this performance. So this first message is our positioning is delivering consistently superior growth. But moreover, we would like to share with you some additional news on our progress in other directions, such as the disposal strategy. We would like to announce today that the disposals have reached, as I said, a EUR 300 million year figure. This is based most importantly, on the fact that we recently executed the sale of a landmark asset in Paris, 83 Marceau that we have sold at roughly speaking, EUR 240 million. That is in line with appraisal values that is, roughly speaking, 4% or even below in terms of yield. So these are additional news that we would like to share with you today.

As a result of that, the group has been having progress in the deleveraging of its capital structure. Group pro forma LTV is coming down 105 basis points based on LTV or 156 basis points if we use the EPRA LTV measure. So good set of results and additionally speaking, very additional good news regarding recent transactions. Page 6, just to illustrate these headlines, you can see the traditional footprint of Colonial SFL in different markets. But particularly, I would like to highlight where do we finish the year in terms of rental growth, 9% Paris, 6% Madrid, 5% Barcelona. We'll come back to this, and we will be particularly more detailed in the performance of certain markets such as Paris. And as I was saying on Page 7, besides the results we are presenting today, we are confirming our execution of the disposal program.

It's now EUR 300 million executed below 4% yield, a remarkable transaction, the one that we are announcing today on 83 Marceau, about EUR 240 million, in line with appraisal values and good progress in the other fronts related to noncore office products or assets in Madrid, also good progress on the residential divesting. This will be the highlights for today. Now we will enter into the presentation of results. And later on, I will come back with some remarks on the strategic positioning of the company. Now we will go first through the explanation of what's been happening on the operational front. And later on, we will see the consequences of this in the financial KPIs of the company. As usual, we have with me Carmina Ganyet, Chief Corporate Officer of Colonial; and Carlos Krohmer, Chief Corporate Development Officer of Colonial SFL. Please, Carlos, go ahead with the next section on portfolio management.

Thank you very much, Pedro. We are now on Page #9. When we look how has been the year, we have had an extremely outstanding letting activity and letting performance. We have secured rents for a total annualized value of EUR 64 million. This is 22% higher than the amount that we had the previous year and corresponds to 150,000 square meters. Very important to highlight that 62%, more than half of it are letting up of new spaces of new delivered spaces for Madnum and Haussmann. And the split is equally -- it's well diversified, EUR 24 million in Paris, EUR 22 million in Madrid, EUR 18 million in Barcelona. So very strong activity because this is what we see when we are in the prime asset class market. When we then go into more detail on Page #10, we see that we are signing really at record high prices, setting the prime reference in Paris.

We are signing at levels of 1,000 and above EUR 1,000 and with significant growth on ERV on the rural Santo 1,200 in Washington Plaza, several contracts at EUR 1,000. Edward said, several contracts on EUR 1,000. Grenelle, we have really also reached EUR 1,000. This is absolutely a record for this building. Previous year, it was lower, super record price. And then we signed on Champs-Élysées a retail space at a total rent of EUR 3,700 per square meter here. So all of them well above the previous year. So with strong rental growth and at very high absolute levels. So really, our segment is performing extremely well. When we go to the other 2 cities where we operate on Page #11, we see as overall that our activity in Madrid and Barcelona has increased from EUR 32 million to EUR 40 million of total volume of contracts that have been signed in terms of annualized rents that this represent.

What is extremely interesting is a lot of square meters, 60,000 square meters in Barcelona. We are seeing a significant acceleration in Barcelona. Just to remind you, last year, it were 35,000 square meters. Now it's almost double. In Madrid, 70,000 square meters. And when we look at the prices, we see very high prices, 26 on the 22 because we are there in the super prime niche on [Diagonal] at 16% growth in ERV, 34 and 28 on the Diagonal and in Madrid levels between 36 and 43. So across the board in our product, that is the best product, we are signing [indiscernible]. When we go and take a perspective year-on-year on Page #12 and look at the overall rental growth, as Pere mentioned at the beginning, we have signed with a ERV growth year-on-year of 7%. What is extremely interesting about this is that in every single city, our portfolio has increased significantly the rental growth that was achieved last year.

Last year, we had in Paris, 6% growth in 2024. In 2025, now we have 9% growth. So we've increased by 300 basis points. Madrid also has an acceleration in Barcelona also. And the 7%, just to keep in mind, is more than 400 basis points higher than indexation. So we are really achieving growth above indexation. On the release spread, it remains super strong. We are having an 8% release spread. Barcelona turned from negative to positive. This market is really recovering at a very accelerating pace. Madrid, a 4% release spread and Paris, 16%. If we take into account retail, the pure office release spread is 19%, so at the 20% levels of the previous year. So a very strong pricing performance. When we now look at the project pipeline, we are also progressing well on the letting up of the project.

Page 13, the 2 big elements or big assets that we have for letting up and that have been delivered recently are Madnum and Haussmann. In Madnum, we have year-to-date already signed EUR 14 million of rents. It is 74% of the building. We are signing at levels of between EUR 27 and EUR 28 per square meter month. Just to remind you, the initial underwriting when we did this project was at levels of EUR 22. So we are really beating what we were envisaging. On Haussmann, we have already signed and we have in place today EUR 5 million of rents. So we are approaching to the full EUR 13 million. Also here, rental levels quite attractive, EUR 1,000 per square meter a year. The previous tenant pre-project was more at levels of EUR 800. All in all, when we take all this together, we are at an occupancy of 93%, 92% at December, but with the contracts that have been signed in December, but coming force on Madnum because the tenant steps in during the month of January and also the floor signed in Haussmann.

We are today, as we speak at this moment, already at a 93% occupancy, so coming quite quickly at very high levels again. And so I will pass over to Carmina to the financial section.

Thank you, Carlos. Now let's cover the financial performance and how this operational outperformance flows through to our financial results and capital structure. Let us start with the rental income performance on Page 16. In 2025, gross rental income reached EUR 299 million representing 8% year-on-year increase on the operational portfolio. This growth is primarily driven by the core portfolio, EUR 21 million, which delivered 6% like-for-like growth, well above market levels. In addition, delivered projects and recent acquisitions contributed a further 2%, EUR 11 million, more than offsetting the temporary negative impact from assets entering refurbishment such as condos sale and Haussmann that will be -- will be in the future rental growth upon completion.

So overall, this confirms the strength and resilience of our portfolio and the effectiveness of our leasing strategy. Looking more closely in Page 17 at like-for-like performance, we clearly outperformed the market. Our 6% like-for-like rental growth is driven mainly by 3 key factors: indexation 2.7%, strong rental uplifts on new lettings and renewals, 1.5% and improving occupancy as well, 1.6%. This reflects our pricing power in prime CBD locations, particularly in Paris and demonstrates again, as you can see -- as you have seen during this year in the quarterly results, that growth is not purely inflation driven, but it's driven by operational scarcity of quality product in the market where we operate and by strong demand for prime assets in prime locations. So it demonstrates the quality and prime assets outperformance.

This strong operational performance translated directly into earnings growth. In Page 18, you can see EPRA earnings increasing up to EUR 211 million, up to 9% year-on-year. And without considering the disposals, the EPRA earnings would show an increase of 20%. Some specific comments in the project deliveries and acquisition, important impact of Madnum and as Carlos was explaining, this complex has been entering into operation during 2025. And additional comment on the EUR 16 million of the additional financial cost, overheads and others, which is a combination of different concepts, includes contribution of the third-party management fees, a saving in overheads due to the merger and positive impact, very important for the conversion of the 2 subsidiaries, companies in France that were in the past under the general tax regime.

And because of the fact that the asset become a yielding asset, we have been converted into SOCIMI regime, which means at the end, a permanently saving cost saving tax for the corporate tax for the future. So consequently, EPRA EPS reached EUR 0.336, which is towards the upper end of our guidance range. So this growth is confirming the robustness of our earnings model and the quality of our cash flows. Turning to the asset value in Page 19. Our portfolio continues to show resilience. Gross asset value increased to EUR 12.2 billion with like-for-like growth of 3% at group level. All geographic -- geographies, sorry, contributed positively, Paris up to 2%, Madrid up to 3.9% and Barcelona up 5.7%. This performance is particularly remarkable in comparison with other peers and reflects the quality, as we have mentioned, the scarcity of the assets of our prime assets and the pricing power on the rents due to the strong demand for this prime office building.

Valuation performance in Page 20 and valuation yield is fully supported by transactional evidence, as you can see here in this Page 20. Recent disposals and market transactions in Paris, Madrid and Barcelona have confirmed our appraisal values with pricing at or above book value. So this transaction demonstrates again renewed liquidity in prime markets and reinforced confidence in our reported valuation. As has been already mentioned in Page 21 on capital recycling execution has seen significantly exceeded expectations. Out of EUR 500 million disposal program announced in November 2025, we have already executed EUR 300 million, as Pedro was mentioned previously, representing 60% of the target in just 3 months. Importantly, prices were at or above appraisal values and disposal yields were at or below 4%.

We are as well having progress in the disposal of residential portfolio and other nonstrategic assets. So again, this confirms both market [debts] for prime assets and our disciplined capital allocation. As a result of this execution in Page 21, our balance sheet has strengthened materially -- so loan-to-value decreases to 37.1%, less than 100 basis points -- sorry, more than 100 basis points and EPRA loan-to-value to 45.4%, considering all of it as the last execution disposal. So this last EPRA loan-to-value with an improvement of more than 150 basis points. So net debt reduction combined with a strong liquidity, EUR 2.2 billion, debt coverage on debt maturities 1.6x of the maturities for this year and for the next year and competitive cost of debt of 1.9%, positions Colonial SFL in a comfortable zone of solvency as our rating also demonstrates with the sector by S&P and by Moody's.

Finally, on Page 23, on financing, we continue to benefit from our proactive hedging strategy and the hedge position taken back in 2021. Our average cost of debt stands at 1.9%, significantly below current market rates and current market cost of debt. Nearly 100% of our debt, as you can see in the chart, is fixed or hedged, providing a strong protection in the following years against interest rate volatility and ensuring earnings visibility over the coming years. So as a conclusion, these results demonstrate a combination of a strong operational growth, resilient asset values, disciplined capital recycling and a solid balance sheet.

Thank you, Carmina. Now let me jump into the last section, which is about the strategic positioning and a strategic update of Colonial SFL group. I think that we've seen what I consider an excellent set of results for 2025, outstanding letting performance, outstanding rental growth, very differentiated optimal performance in all KPIs, everything related to the positioning of Colonial in the prime CBD market in Paris, Madrid and Barcelona. If we have to give some comments on where does Colonial stand today in terms of our strategic positioning, Page 25 pretends to provide a framework to understand the pillars for Colonial SFL strategic positioning. Colonial SFL strategic positioning is based mainly on 3 pillars. Number one is our positioning in prime CBD operations. This is the bulk.

This is the most important part of who we are and what do we do. And here, our game is about delivering pricing power and differentiation, strong reversion in our markets of Paris, Madrid and Barcelona. This is our basic positioning. Second, the strategy of Colonial is based in the additional value coming from the delivery of our Alpha X operations and initiatives, which, as you know, are not isolated. It's called Alpha X because before this 10 initiatives, we've gone through 9 before. This is the main contributor to midterm EPS growth. to project our growth profile, it is very important to go through the understanding of these projects, and we'll try to give you comfort on where we are regarding them and what can we expect from them in terms of superior value creation.

And finally, there's additional value coming with the portfolio management and the capital allocation process. There, we are providing additional value by divesting in those assets that are mature and are available to crystallize value. Let's remember that we sold more than EUR 1 billion of assets in the last 3 years. And then there is value coming from the decision of where -- what to do with the money raised from divestments. And in this capital allocation process, there are alternative uses we can do. First of all, protect and strengthen the balance sheet through deleveraging, if necessary; second, extracting value from our prime factory portfolio; third, investing in new investment opportunities, which have to prove that the returns honor the cost of capital in existing market conditions.

And last but not least, considering in the absence of new investments that honor this cost of capital, the potential optionality of returning capital to shareholders. I will be pleased to share with you where do we see Colonial regarding this capital allocation process, this portfolio management strategy. But as you know, it's very important to understand that the value of Colonial comes from the 3 pillars. And these 3 pillars execution is what are translated into the EPS and DPS growth profile on the company and on the guidance that we may give on this. And finally, based on this EPS and DPS growth profile. There's also a proposal for shareholder remuneration, which we consider also key to be transparent and crystal clear about it.

Let me now walk you through where Colonial SFL is today regarding these 3 pillars and its consequences in EPS and DPS growth and shareholder remuneration. So number one, the basic profile of the company, Prime CBD operations. What is our conviction regarding Prime CBD operations? I think that it's proven the outperformance in absolute and relative terms of our portfolio. We can look at it in different ways. We can look at it in terms of like-for-like growth. I clearly believe that like-for-like growth of 6% growth in terms of GRI for the group, 7% if we talk about Paris or 7% like-for-like growth if we talk about ERV growth, 9% in Paris is very remarkable and unique. And it's between 300 and 400 basis points higher than indexation.

So I think that as a value proposition, it's a very strong one. That's the first thing I would like to remark. The second is if we are all put in the same basket, it's very difficult to highlight or identify this value proposition. So it is important to understand that this unique proposition is consistently delivering like-for-like growth that is not only important in absolute terms, but it's higher, as you can see, than our peers within our office sector. So strong conviction on the performance of our prime CBD operations. Let's be more precise about this. Recently, people are wondering about the nature of the Paris market. And it's obvious that we should highlight our convictions and our thoughts regarding where does Colonial SFL stand in this framework of additional uncertainty regarding Paris.

Two things or I would say 3 things have been said about Paris. One is take-up is not super strong. Second is not -- there is not a good balance or a good balance as in the past in terms of supply versus demand absorption. Third, there may be questions about rental growth and where do we stand? Where do we see our position? First of all, regarding supply and demand balance, you can see in this Page 27, what's current outlook for the Paris market. There are relevant parts of the Paris market where the absorption of new supply can be 2, 3 years or even more than 3 years in terms of the time you need to absorb the new supply. This is not what is applicable to our company and to our product. Where we are, the current number is 0.6. So it's much less than a year, half a year to absorb the new supply in the prime CBD market. In different words, if we look at the pending completions of new supply, if we talk about CBD from '27 onwards, it's almost irrelevant the remaining supply that remains in the market.

I agree that this may not be the case for the wider Paris market as it's the case also in some other European cities. But certainly, there is a difference regarding the prime CBD market. If instead of talking about supply versus demand, we talk about rental growth, where take-up is going, let me emphasize this number. In 2023, the rents signed above 1,000, which is a proxy of the prime CBD leasing market represented 7% of the rental market in Paris. In 2025, it's close to 40% that is telling you that is reinforced market bifurcation and there is a trend that is favoring high-quality product. So we have to distinguish between different markets. And in our case, our performance is significantly better than one could think of. That's about Paris. Of course, Colonial SFL is about France and it's about Spain. A word about Spain. It's remaining and going super strong. It's not only that take-up is reflecting the fact that Spain is today the fastest growth economy in Europe.

It's only that other things are happening, which are working in our favor. Because of the pressure on the residential market, because of the super strong demand for new residential product, 1 million square meters of office in Spain have been converted to alternative uses, mainly residential, as I say. So it's not only about take-up being strong, it's about supply disappearing, particularly the supply that cannot make it as an office product. As a consequence of that, the vacancy on Madrid CBD and in Barcelona CBD and particularly more on the Madrid market is super low. And the balance between supply and demand is fantastic. And as a consequence of that, rental growth is being super healthy, particularly for prime product, as you can see in the chart on the right-hand side of the page, in historical terms, current terms and projected terms.

So this explains what do we think about our main positioning, which is about prime CBD product. Number two, pillar #2, how can we enhance growth of our company, in particular of EPS. Well, I think it's important to reinforce the major contribution that we expect from our urban transformation initiatives in this aspect, in the aspect of the new projects under the Alpha X umbrella. In these projects, we expect an aggregated EUR 100 million of additional top-up additional GRI, which will be translated in additional EPS that we estimate in the range of additional EUR 0.11. What is the message regarding this layer of strategic positioning? First message, things are going well. There are different projects here. Mainly, we were working with 5 big projects.

One of them had to be delivered in 2025. It was, it's Madnum. It went very well. At the beginning of the year, the vacancy was, of course, low. At the end of the year, it's super high. It's a success. Regarding the rest of the projects, they are going according to our plans, and they will deliver according to these numbers. The second message regarding this Alpha X project is the agenda attached to this project means that the most important part of the contribution to EPS growth will be 2027, 2028. So this is not contributing to the EPS today, but is a major source of EPS growth that if not around the corner, it's quite soon, and we believe that it has to be taken into account when evaluating the value proposition for Colonial. That's pillar #2.

Pillar number three, what are we doing and what are we going to do regarding portfolio management and capital allocation. First of all, as you know and following previous presentations, we put the focus on the disposal program as the present condition to whatever we may do with the money. Where are we in the disposal program? Very well advanced. Just last November, we were saying we plan to divest EUR 500 million. Today, we are telling you EUR 300 million have been executed in 3 months. We are telling you disposal prices are above appraisal values. We are telling you there's a particular deal just signed in Paris, EUR 240 million at appraisal values, circa 4% yield. In aggregate terms, all of our disposal program is at or below 4%. In the end, we are selling mature assets with further looking on their IRRs below 5% because our business, it's about doing this and then investing at higher returns.

I would say that we have good progress on this. And moreover, I would say that it's in the strategic interest to say that there are more disposals to come based on the success of this recent strategy. What do we do with the money? Well, number one, it's enhancing our balance sheet structure, that is deleveraging of Colonial SFL. The immediate consequence of this disposal program is an estimated decrease of more than 150 basis points in the EPRA LTV. That's the main consequence of this portfolio management and capital allocation strategy. Second, do we see other fronts where we'll be or are being active? Are we envisaging new investments? Yes, 2 comments on this, subject to the present condition that they have to provide their IRR of double digit.

Second comment, in this respect, we have visibility on accretive deals of around EUR 200 million that may be executed soon. This is how much we want to do now in this framework of a capital allocation strategy. Next, number three, there is quite often the question and what about your science and innovation platform? What are you doing? Where are you going? How much are you spending? Let me start by the latter question. We are not investing anything else, as we said, that what we invested a year ago, number one. We are not investing anything more. That was not the strategy from the beginning. Number two is things are going well. Our IRRs and yields are confirming our business plan in this segment. Third, we would like to build up this platform mainly based or totally based on third-party capital stepping in.

News are that a global institutional investor is joining us with an equity contribution expected of EUR 120 million, meaning more than EUR 200 million of additional firepower. So this is going well. This is, as you know, not in the -- at the heart of our strategy. It's a nice complement to our strategy, and it's going as expected without additional efforts expected from our side. Last, what we pretend to do as a company is what any real estate company should be doing, which is doing capital recycling, selling mature assets, investing the proceeds and considering that in the current framework, if there is relevant return attached to share buybacks, include this as an additional tool in this capital allocation strategy. In this framework, we would like to announce that a buyback program has been approved by the Board as I will detail later on in -- with the specific figures. As a result of this strategic positioning, what we are having is a good track record of EPS growth.

This has been growing substantially and consistently in recent years. And as I said at the beginning, we confirm for 2025, the EUR 0.336 EPS in terms of cents per share results. For 2026 and bear in mind the profile of our generation of EPS, we are pointing initially at the guidance of 34 to 35% for the year 2026. In terms of remuneration, and I will be more specific, based on the results for 2025, the objective of the Board is to propose to the General Shareholders Meeting EUR 0.32 per share to be paid during the next few months. And in these comments about EPS, let me highlight finally the significant EPS growth acceleration that we foresee in 2027 and 2028. We believe that it will be a good decision to provide as much visibility on this as possible. Therefore, we are announcing a Capital Markets Day for next May 2026, where we'll be pleased to provide the visibility on this EPS growth profile of the company. And of course, EPS growth means also at the other side of the coin, LTV compressing.

We envisage a long-term LTV level for the company for 2028 below 40%. My final comment would be on shareholder remuneration. It is obvious that we had a fantastic profile of dividend per share growth in the last 10 years as this chart can explain easily. We would like to announce that our remuneration proposal for this year is to pay EUR 0.32 as dividend per share. But we would like to say that on top of that, 2 things will be happening. First, we will be canceling, amortizing 5 million shares that are now in our treasury stock to enhance the KPIs of the company. And on top of that, the Board will propose or has proposed a EUR 50 million share buyback program that we will start in due course as soon as possible with the objective of these shares being canceled or amortized also as soon as possible. So this is the consequence of everything we said about our strategic positioning.

My final remarks, I said at the beginning that today, we wanted to first share with you the results for 2025; and second, provide additional visibility on things that are happening at the company level, recent events and strategic guideline level. Well, I think that as a summary, if we recap on the results of the company, I think it's a good set of results. As I said, letting performance, fantastic in terms of growth, rental growth, amazing in terms of absolute levels, in terms of relative levels. Anybody should agree that this is a real remarkable number. And all of this is translated in very healthy P&L and balance sheet performance. The second part of the story, talking about the strategic positioning. Our strategic positioning is based on this conviction on the superior performance of our prime CBD portfolio now and in the future. We would like to highlight or we want to highlight the major contribution coming from the Alpha X projects.

And in terms of capital allocation, we are glad to announce that we are having fantastic progress in our disposal program. In particular, we are announcing a transaction signed today in Paris, which is relevant. And in this respect, we are also guiding you in the direction of using these proceeds to deleverage the company to invest in high-return profile kind of initiatives and also at the EUR 50 million level in enhance our remuneration policy for our shareholders. That's our presentation for today. Let me be specific about the Capital Markets Day. I said May, in particular, save the date, we are talking about 21st of May in Barcelona. Thank you for your kind attention. And now as usual, we are available for your questions. Thank you.

[Operator Instruction] Now the first question comes from Jonathan Kaiser from Goldman Sachs.

Three questions, if I may, please. The first one, on the pre-letting of scope, are you having any discussions? I understand I think the deliveries for 2026, if I got that correctly. Perhaps you can also let us know when do you think you will deliver that in 2026? Or yes, I think I got that right. The second -- or maybe that's a start. On the second question on the health care, I think you're saying that your -- innovation, you're saying you're on track in terms of IRRs. Can you elaborate on where the occupancy is for the portfolio currently, if you've been able to improve that already, please? And the last one, I'll probably keep it for later. Let's answer the first 2. And the third one is slightly more technical. So I just want to do that afterwards, please.

Thank you, Jonathan. Thank you for your questions. Look, on the scope, it's still too soon for us to provide details on this. Probably the third quarter will be the right moment to have real visibility on where we are. On the science innovation platform, I leave it for Carmina to give some visibility on this.

Yes. So thank you, Jonathan. On the occupancy today, you know that out of the 140,000 square meters, there are part of these square meters that are pre-let, but not still building because it's like a sub refurbishment. But we are in the range of 90% occupancy and with high visibility on the pre-lets for the coming square meters that will be into operation during this 2026. So good performance and good occupancy, interesting names of these new tenants. And we state about our stabilized yield on cost in the range as we disclosed in the range of 6%, 6.5%.

Okay. Not entirely clear, but we can take that offline. So on the scope, it's being delivered in 2026. That's correct, right? Is it delivered towards the end of the year then? Is that what we need to assume? Or is it delivered before?

Yes, it's delivered by the end of the year. That's what I was saying that maybe the right time to have visibility on the progress on the letting front will probably in the third quarter.

Okay. Right. The third question was about the like-for-like rent growth. I'm sorry, I'm a bit confused actually by your numbers. So let me just walk you through. Could you -- maybe you have the bridge on Page 16 of the presentation, which shows EUR 21 million like-for-like and EUR 11 million. Maybe can you explain what's included and then you have also obviously Condo sale and Haussmann for EUR 23 million decrease. What is in the EUR 21 million? Is that just transaction on existing space? Or do you have any renovation of floors there or anything like light refurb projects? And also, I'm struggling to reconcile this with the 5% lower occupancy that you have essentially in Paris. So I think the occupancy went from 100% at the end of 2024 to 95% at the end of 2025, which should impact your like-for-like rent growth negatively, but you're still showing 7% increase. So again, I'm confused as to what is included in that 7%, please.

Look, Jonathan, I will try to explain it as clear as possible in very short words if something remains to be further clarified, we can have then a specific call. But in principle, it should be quite easy to understand. So the 21 is a pure like-for-like EPRA best practice calculation. So it's really comparable spaces. And when we look at the '23 that is non-like-for-like, this is basically concentrated on 2 assets that during 2024 were fully with rents, that is the Condo sale assets and it's the Haussmann asset. Both assets have been during 2025 in a refurbishment mood have been project. And so Haussmann has been delivered during the second half of the -- I think in September it kicked in September. And this is the main element of the increase in occupancy. The increase in occupancy is due to the delivery of Madnum and to the delivery of Haussmann. So the like-for-like occupancy that we've not shown in this presentation remains stable at 96%.

That's why the like-for-like growth is positive and totally consistent. So we actually have not really -- the occupancy actually has not gone down in like-for-like. The occupancy is simply a consequence of putting into operation, delivering projects that we are now leasing up. And as you can see already on the data that we show as of today, with the leasing progress that we have had today, we are already coming back. So this is the main elements on the non-like-for-like building block are these 2 assets. There are small here and there are small refurb spaces, but basically, it's this. And what we want to show in this page is if we would not have put these assets into renovation mood that we are doing to create more value and to create more rents because on Condo sale, we're going to double the rents that we initially had the building.

Without this, it is just a temporary rotation because we work on the assets. Our business has grown in rents, has grown EUR 21 million like-for-like because the like-for-like occupancy is paying at the same level, and we are starting to have some rents of the project, a little bit of Madnum. And then keep in mind that we bought in June 2024 via the capital increase assets from Criteria that also were just half a year in 2024. Now they are fully in 2025. So this is the explanation. If you need a little bit more details, we can have them in a separate call.

Yes, maybe that would be helpful. But just as a quick confirmation. So in Paris, the 100% to 95%, so that is Haussmann or is something else?

Basically, Haussmann.

Yes, exactly.

Keep in mind, it's a 12,000 square meter building that at a total rent of EUR 1,000, so this is the EPRA occupancy is in economic terms. So it's a vague. It's an additional -- so you add on the base 12,000 square meters valued at EUR 1,000 per square meter. And this is today as of December -- at not yet fully let. And we have already signed an additional contract in January as we highlight in the presentation, and now we are leasing this up. So it's basically concentrated on business.

Next question comes from Florent Laroche from ODDO.

I would have 3 questions. Maybe I can ask them one by one. The first one would be on your guidance. Could you please tell us what you take into account or not take into account in your guidance for 2026 because you are doing some disposals, you are announcing some share buyback and maybe some -- and you have good visibility on future acquisitions. So what should have to take into account in your guidance?

Well, we are taking into account what we are guiding for. So we are taking into account the disposals and also partially for part of the year if we succeed the potential acquisition. As you can see, It's a net disposal. So we are -- overall, we are in net terms divesting. Yes. Roughly speaking, it's EUR 300 million net disposal. Big assumption.

Okay that's fair enough. Okay. And no assumption about cancellation of the 5 million shares or no assumption about future share buyback?

Sorry, only 5 million shares and the fact that today, the Board has been approved this [indiscernible] has not been considered yet.

Yes. Okay. So we don't take into account the cancellation of the 5 million shares for your guidance.

Yes.

Okay. And my second question will be on your, let's say, medium-term outlook. So you announced, I think, several things. The first one is that you announced an EPS growth acceleration in 2027 and 2028 and then you announced also the ambition to reduce your LTV and you announced also some future acquisitions and also some share buybacks. So I would like to understand how it works at the end because that's a lot of things. and some of them are not going to the same direction.

Yes. No, I don't understand. I think the fundamental remark about our, let's say, Alpha X project is that the CapEx are -- most of it is already done or in a relevant part of it. And that means that it's included in all of the considerations coming from the disposals that we are going through. So there's no significant effort in terms of leveraging the company attached to these initiatives. On the other hand, yes, there is a relevant income that we expect from these projects. That's why it's possible to both expect an LTV that remains in healthy levels at the same time that the EPS grows. I have to say that, obviously, in our LTV projections, we are not including any assumptions regarding values going higher because of things happening to yields or nothing like that. It's a simple exercise of projecting what do we know about CapEx and cash flows.

Okay. And maybe my third question would be on your visibility for your future [indiscernible] for USD 200 million. Could we please ask you if you are looking for buying assets [indiscernible] in your current cities? Or maybe are you looking also only maybe to other capital cities in Europe and Paris, Madrid and Barcelona?

Yes. I think that regarding new acquisitions, a number of things can be said. First of all, the nature of these acquisitions will remain in the prime territory. So we don't want to change substantially the risk profile of the assets. That's the first thing. Second, the requirement of return, it's relevant. and we look at this more in IRR terms because IRR allows to consider initial yields, but also value coming from our transformational skills. We are assuming on leverage IRRs above 8%. And the third is, yes, we are a little bit agnostic about the geographical profile of where we will be investing. And we may be considering Spain, France, but also some other cities in Europe and particularly in Germany.

[Operator Instructions] Our next question comes from Valerie Jacob from Bernstein.

Just one question. I just wanted to ask about your vacancy, occupancy. Your vacancy is quite high at the moment. And you made the point during the presentation that at the moment, less than a year to absorb new supply. So shall we assume that your vacancy is going to be much lower at year-end? Is that what you have in your guidance?

Look, basically, what we try to explain on Page 14 is that we have a high occupancy in like-for-like terms. So the Prime Paris vacancy is 0.9%. The Prime Madrid Barcelona vacancy is 0.6%, 22 is 1.6% and the rest is at 1%. So basically, a big part of coming back to the levels that you saw in the previous year is letting up the projects that we have delivered that is Madnum and Haussmann basically. And you have seen that we have had strong progress. So occupancy in like-for-like terms has not changed anything. We are at the same levels at the same the previous year, but we have developed projects that we are letting up. And we are quite confident and not just confident, we have delivered significant progress. So as soon as we then have this project let up, we are again at the super high levels. But I insist in like-for-like terms, we are remaining at the super high levels. And this is why we are delivering above-average like-for-like growth.

Next question, Veronique Meertens from Kempen.

First of all, it's good to see that your CMD during the Kemper conference, but we'll discuss it later. But regarding one question around your adjusted EPRA earnings. I see you make some additional adjustments. And I was just hoping to get some color on that because I think it's roughly now 6% of your adjusted EPRA earnings, where 2 years ago, it was still 0%. So if you could give some explanation on where that growth is coming from.

We are calculating EPRA earnings regarding to best practice. I don't really understand. But do you refer to when you say there is an adjustment?

Maybe provide more color on this because we are not following you.

There's a company-specific adjusted EPRA earnings, and that includes EUR 12 million and that says extraordinary provisions and expenses. So I was wondering what's exactly in that number because it's a deviation from EPRA earnings, how I interpret it.

Sorry, I'm not being able now to -- let's go back to you maybe some recovery because I'm not able to identify the specific topic that you are mentioning. I don't know, Carlos, if you want to prefer to come back.

Well, it's basically -- but it's EPRA earnings. Maybe it's the labeling in the table not precise. Basically, it's recurring earnings. So what is there in the EUR 12 million. It's extraordinary exceptional items costs related to the merger of SFL related to the costs that could be attached to the SNI deal. So it's really exceptional items and it's fully EPRA compliant. Maybe it's not been the right way to show it in that way. But it's -- at the end, it's recurring earnings. So this is basically exceptional costs related to deals to extraordinary deals that nothing has to do with recurring activity. So it's really clear EPRA earnings. This has to be clear. It's not that we are doing some strange adjustments or something like that. It's recurring and then there's extraordinary elements. And this is totally EPRA conformed and it's EPRA earnings. Maybe we should have put it in the line above. And maybe we just put it not totally precisely. But good that you say so we can then also correct.

Next, Celine Huynh from Barclays.

Just one question for me, please. What is your rationale for the share buyback? And why do you think this is the best use of your capital right now?

Yes. Thank you for this question. I think there's a combination of things. First of all, from a real estate point of view, I think that when you consider or we consider, of course, the implicit real estate quality of what Colonial is, it's something that in the market, you could not find to buy or to sell because it's an implicit substantially super high yield corrected or adjusted for the quality of what we are. So we consider that from a real estate point of view, it's an excellent deal. Second, from a shareholder remuneration perspective, we believe that a number of shareholders will appreciate that on top of, roughly speaking, EUR 200 million of dividends that we are paying, they may receive if they wish, an additional EUR 50 million in terms of share buyback.

So it's a combination of financial discipline regarding returns, a judgment on what are we doing in terms of real estate value for our shareholders; and third, shareholder remuneration strategy.

Sorry, can I follow up on that because you're trading at 4.5% implied cap rate at the moment. Isn't that a better use of your capital? I mean, you could be investing into the life science and that would yield you something better than 4.5%. So I just don't -- I'm cautious I don't understand why you're doing this.

Well, I think that maybe the fundamental topic is about the quality attached to the asset. So we all agree that today, whatever yield we may see in the market has to be evaluated related to the nature of the asset. Colonial for me, and maybe I'm not -- I'm a little bit conflicted. It's super, super, super, super top in terms of prime. It deserves the kind of yields that are not consistent with the implicit yield of a share buyback. I understand that this implicit yield, if you would compare with secondary location or any other topic, it could be a number to be reevaluated. But adjusted for the quality profile of the assets, we believe that it's super accretive. And as I said, it's not only this. It's about the dividend strategy and the dividend remuneration.

And finally, just another way to look at this, we are consistently disposing assets at appraisal values. I think this has to be taken into account. When we are -- today, just today, we are announcing a relevant disposal in France at appraisal value, there's also many people that do understand that there's an arbitrage here if we are selling at appraisal value and buying a stock price, many people believe that we are doing a combined strategy that is creating value for shareholders. The divestment at certain levels and the investment levels create this. That's my view, Celine.

Next question, Fernando Abril from Alantra.

Just a follow-up on the share buyback. So you've initiated a EUR 50 million share buyback, which is probably relatively small. However, should we assume this could be expanded if the discount 22@ persists, as you mentioned, Pere, and further disposals are executed?

Yes. No, Fernando, first of all, to clarify, there are 2 things happening now. One is, in the past, we've done some share buybacks, but because of different reasons. And as of now, we had an outstanding balance of 5 million shares. in our treasury stock because of past activities. For example, we were buying shares in order to execute long-term incentive plans. Then we know that these shares are not needed. They are, let's say, remaining at our balance sheet level, and we know that they are not needed, okay, then we cancel them and we amortize them. This is the first level, the EUR 5 million. It's not shares that we are going to buy. These are shares that we already own, and we have decided to put them in action in terms of being amortized. Then there's a second level that we're saying. On top of that, from now on, we are announcing a EUR 50 million, 5-0 million share buyback will be executed as usual.

Safe haven style in terms of European directive. So we will be active in the market in the way that the legal framework explains usually, this is something that we will be doing. And then your question is and what's next? Yes, I think that -- as I said, the framework is if we can sell mature assets in good pricing, we'll do it. Then with this money, if they are relevant -- going back to Celine's question, if there are relevant investments that adjusted for risk, the returns are there and are substantial, we invest in the market. If the comparable return of buying back some shares is there, then we may put in place a combined strategy. But I would say that, that is a theoretical framework, a general framework, but this is just, I would say, the theory. In practical terms, what we are saying today is let's do this EUR 50 million. It's a nice way of enhancing shareholder return, and that's what we are doing for the next few weeks and months.

Next question, Christian Ozan from [indiscernible].

You hear me, please?

Yes.

So the question is about the cycle, I would say. You are one of the most experienced management team in the sector. So you guys know that following bright days, they can be dark days. And the question is this one, why do not use such dynamic in EPS, top line organic growth to much alleviate the balance sheet and to sell assets, I would say, in the coming 2 to 3 years. So the question is why about your conviction, I don't know why. And the question behind the question is probably you read the Srini research report in the past few days. And so continue accelerating in the coming years with a '28 road map is about to consider that the cycle will not switch off, I would say, before the end of the decade. So there are 2 questions in one, I would say. So what's your feeling about that, please?

Yes. I think it's a very, let's say, complex question to address because when we talk about cycles, we may talk about -- I'm just speaking out loud, we may talk about 3 ways of approaching the cycle. One is to talk about rental cycle. The other is to talk about yield cycle and the other is to talk about capital value cycle. If we talk about the second and the third, I am not sure that we are at the high end of valuations. I think that we could defend easily that looking at the past experience and looking at the premium of IRRs on a comparable benchmark, I would say that we are in low levels of valuation. If we talk about yields and capital values, and we can, of course, discuss much, much further. Regarding rents, I think it's tricky because it's subject to a number of issues happening.

I think that on one hand, it's always the result of the supply and demand, depending on how these main key drivers perform, this can lead to a cycle or another. I remember very well, the cycle of 2000 -- the GFC crisis was mainly a cycle provoked by excess supply by far, by far, more than anything else. So -- and it's also a questioning of what may happen to take-up and also a questioning on what happens to rents compared to pricing power of people. There, we have our assumption. It's the product that we are in it's a pity that in our sector, we don't talk about different subsectors so easily as in other asset classes. But we believe that in an asset class, we are in a subsector that the balance between supply and demand, the pricing power that our clients can meet does not give us visibility for a dark period as you were suggesting.

So -- of course, we've been around for a while like you, and we look at cycles and we try to provide visibility on what we're doing based on them. But if we went into discussion about the different angles of the cycle, we remain comfortable to a certain extent. In the end, today, there's a 400 bps spread between the returns of our kind of assets and the comparable benchmark. And I think that when you look at history, we are not in the hitting zone. But this is, Christian, my opinion, and I'm happy to discuss further with you any time, okay?

With pleasure. The final thing I keep in mind is that in a nutshell, as far as your assets are concerned, you are -- you stay pretty optimistic, and I like optimistic for the, I would say, 4 to 5 years, I'm right?

Yes, I agree. But it's not only about animal spirits. I think that when we started with questioning about our asset class a few years ago, we've been vocal about the data. I mean it's -- there are many opinions about what can happen to us. And year after year, we are saying great. I mean we can all have different opinions about this. But why don't we look at the data of our performance in the last few years? Maybe we are overoptimistic as you are saying, but we try to rely on fundamentals and numbers.

And next [indiscernible].

Just one question, if I can. You're talking about deleveraging here. And if I look at your EPRA LTV, it's up close to 300 bps year-on-year. On a pro forma basis, I appreciate that comes down to 150 bps up since 2024. You're talking about SBB, which obviously reduces that deleveraging. So what metric are we talking about when we talk about deleveraging? That's my question.

Yes. Thank you. Of course, we are talking basically about LTV reduction. And it's a reduction that's happening even if the SVB is happening. Of course. So we evaluated the scope of this SVB in a framework of a consequence of deleveraging in any case. Regarding the LTV, as you know, our view is that we are very -- or we pretend to be very disciplined in terms of financial strength. At the same time, we believe that sometimes the LTV should be measured further with further attention to the V to the value and what kind of risk profile is attached to the asset value and the cash flow generation. So that's why, in a way, we have always felt decently comfortable, and that's why rating agencies have been in line with this opinion. So we are basically comfortable with where we are, at the same time, providing comfort on this vision of financial discipline and the deleveraging is what we expect to happen as a result of everything that we are doing.

And of course, yes, we are including the share buyback in the numbers. And after them, after that, deleveraging is happening anyway.

And can you give us some guidance of what the LTV will be when you finish deleveraging -- because it doesn't look like it's coming down.

Well, as we -- I think we mentioned in the presentation and it's written, our loan-to-value, it will be below 40%. This is the range that we would like to see. But I mean, the pro forma shows this loan-to-value pro forma below -- it's at 37%, so well below 40%. But having said that, we analyze this capital structure holistically, as Pere mentioned, and the rating agency is giving the different metrics. But the fact that we are more net sellers and deleveraging, it's moreover to have growth capacity to invest in the range of this capital, this financial discipline in the loan-to-values below 40%. This is the aim of these disposals with this already committed and with the net disposals or the net seller position gives us additional deleveraging to have these additional growth capacities in the framework of being investment grade as we are today.

Now that was the last question. And since there are no further questions, I give back the floor to Mr. Pere Vinolas. Please sir, go ahead.

Just thank you all for your kind attention. It's been a pleasure to share with you this result presentation and looking forward to meeting you soon again. Thank you, and have a nice day.

Ladies and gentlemen, welcome to Colonial SFL 2025 Third Quarter Results. The management of the company will run you through the presentation that will be followed by a question-and-answer session.

[Operator Instructions]

I would now like to introduce Mr. Pere Vinolas, CEO of Inmobiliaria Colonial SFL. Please, sir, go ahead.

Thank you. Good afternoon. Good evening to everyone, and thank you very much for joining us today in this presentation of our results for the third quarter of 2025. I'm going to start with some introductory remarks, and then I ask, as usual, Carmina Ganyet, Chief Corporate Officer; and Carlos Krohmer, Chief Corporate Development Officer; to step in with additional comments and insights.

The introductory remarks, I think that we are presenting again a good set of results. As you will see, the operational performance remains strong. Many different KPIs show very strong numbers associated to them. And this in the end shows that our strategic positioning in prime is set to deliver earnings and value growth. Our strategic positioning, as you know, is based in the prime asset class segment.

I think that it's now a few years where we have been improving pricing power. Pricing power coming from high demand from best-in-class clients, where we are able to capture above-average rental growth. And as a consequence of this, strong earning growth as a result of our activity.

There are 2 things that we can share that you will see. One is that we are proving superior growth capabilities. It's a 9% CAGR for the last 3 years that has been delivered. And it's not only looking at ourselves and other history is that regularly, you could see how our GRI like-for-like growth, it's relevant, but moreover, it's higher than those of our peers in the sector. So this positioning -- unique positioning of Colonial creates a difference.

I'm going to start by looking at the main KPIs for this quarter. We could talk about cash flow. We could talk about operational performance. We could talk about capital structure. Just let me share a few numbers. This quarter, gross rental income ends at EUR 296 million. The revenue number here is a 5% like-for-like, well above inflation, showing strong rental growth. The EPRA earnings 6% year-on-year, EUR 156 million. The EPRA EPS, EUR 0.25 in line with the guidance for full year.

Second layer operational performance, rental growth, 6%, measured as our growth in terms of signed rents compared to December '24 ERV, 6%, may be highlighting 9% in Paris, which again, is pretty strong and pretty ahead of inflation. Release spread 9%, 17% in Paris and occupancy 91%. As you know, we are just delivering some assets that create a difference without Madnum & Haussmann, our occupancy, which was -- were just delivered this year, our occupancy would be 95%.

Finally, from a capital structure point of view, we keep our strong credit rating, BBB+, S&P, Baa1, Moody's, the rating confirmed in that particular case, September this year, loan-to-value 38%; financial cost, 1.9% for the whole of our debt.

In Page 6, an overview that in my view, it speaks for itself about our core markets. Where are we in terms of individual occupancy. You can see how high it is. You can see also the number for rental growth 9% Paris, 6% Madrid, 3% Barcelona. And this is a result of beautiful signatures, EUR 1,200 per square meter maximum rent sign in Paris, EUR 43 per square meter per month in Madrid, maximum rent sign, EUR 30 in the case of Barcelona. So fantastic KPIs. Now as usual, we will enter into details, first, the financial performance, later on portfolio management that provides more insight about the future. And finally, some remarks from myself on future growth.

So let's skip into section #2, financial performance. Carmina, welcome.

Thank you, Pere. So the first main KPI is the rental income, which as you can see here, it's growing through the core portfolio and the project deliveries. This is true drivers. The core portfolio shows a like-for-like growth of 5% and project deliveries of 3%. These 2 main drivers has been overcompensated the fact that on Condorcet & Haussmann have entered into refurbishment.

If we look at the different components of this strong gross rental income in Page 9, mainly, you can see out of this 5%, 2% comes from the indexation impact, as you know, inflation in Spain and ILAT index in France, in our Paris portfolio. Another 2% comes from the rental growth premium, this pricing power from all our operational portfolio, an additional 1% from additional occupancy. So this 5%, as Pere has mentioned previously, it's outperforming our main peers in the European zone as usual. So this is another quarter that we are delivering a solid rental growth like-for-like both our peers in the European zone.

If we look at the last bottom line in the EPRA earnings, Page 10. You can see how a strong operation are impacting positively in the EPRA earnings growth. 6% growing in a yearly basis. But basically, I would like to highlight this 18% coming from the operational portfolio. Additional EUR 5 million coming from the project deliveries that we have been able to do in the last year and additional positive EUR 9 million, basically the fact that we have converted into the Sika status, the remaining subsidiaries that we had -- we have in France, thanks to the merger. So this means that we are saving tax this year and for the future. This would be a structural positive EPS coming from this new conversion of the last subsidiaries that we had in Paris, thanks to the merger.

All this positive impact has been, as you can see here, over compensating the negative impact coming from the Condorcet & Haussmann that has been entering into refurbishment. In terms of EPRA EPS, we delivered almost EUR 0.25 per share, considering the new shares in place after the capital increase that we did in July 2024.

If we go to the balance sheet on Page 11, as you can see here. So we continue to deliver a very strong liquidity position. Our loan-to-value is in this quarter, 38.1%, but is -- I would like to highlight again. This level of loan-to-value is temporary. We are making progress in some disposals and capital recycling that has been not impacted yet in this loan-to-value ratio at the end of September 2025.

In terms of liquidity, between cash and undrawn lines, we have a very strong position, EUR 2.8 billion, which is almost 2x covering the debt maturities for the following 3 years. And as you see, our cost of debt remains in a very competitive level. So we are taking advantage of the accurate hedge policy that we did in 2021 when the rates were very low. And in the appendix, you would see in more details the hedge and -- the hedge -- the existing hedge as of today, 93% of our existing debt are hedged with a fixed cost. And in the future, the profile of the future hedge, thanks to this pre-hedged position remains in a very solid position with above 50% of our future debt.

Consequently, thanks to this strong position and thanks to this robust liquidity management and operational performance and forward-looking hedge strategy, Moody's has been confirmed our rating with Baa1 with a stable outlook. And as you know, this year, we have been tapping the market 2x, 1 in January, EUR 500 million 8x oversubscribed with a very competitive yield, 3.25%, but resulting an effective yield of 2.75% after the hedging that we took previously.

And recently, in September '25, who have been gone again to the market with a placement of EUR 800 million. 6-year green bond, all of them has been a green bond issuance with 3.12% coupon, but rent, thanks to the effective -- the hedging attached to this debt, our effective yields are at the levels of 2.73%. So very strong liquidity position, very strong competitive cost of debt and confirming the rating by S&P and recently by Moody's again. Carlos?

Thank you very much, Carmina. Now we're going to step to Page 14 on portfolio performance. First of all, we've signed year-to-date on 25,000 square meters that are equivalent to EUR 54 million of annualized spread. So we are signing a lot, and we are signing with high prices. This EUR 54 million are an increase of 26% in total contracts secured in economic value compared with the same period of 9 months of the year before.

We go a little bit into the breakdown out of this EUR 54 million, EUR 20 million, close to 40%, has been signed in Paris and this EUR 20 million are equivalent to 14,000 square meters. At the end, this means that we've signed on average at a rent of EUR 1,400 square meter a year. So absolutely at the high end.

If we go further analyzing the breakdown. We've seen that the Spanish markets are also -- our portfolio in Spain is progressing very, very well, close to 60,000 square meters signed in Madrid and more than 50,000 square meters signed in Barcelona.

We go a little bit more into detail on Page 15. Here, you can see out of the EUR 20 million, EUR 13 million have been in 3 super prime premises. On Champs Élysées, we signed a contract at a retail rent of -- in excess of EUR 3,700 per square meter a year. This is 11% increase of rental growth increase versus the ERV of December 2024 and the 16% release spread.

On Louvre Saint Honore office or the part that is the upper part of the Cartier premise, we've signed at levels well above EUR 1,000, EUR 1,100, EUR 1,200, 18% of growth versus the office ERV of this asset as of December '24, and quite a lot of rents, EUR 3 million in 2 contracts. And then we are progressing also on Haussmann, signing above EUR 1,000, 11% ERV growth, 16% release spread in terms of what the rents were of the previous tenant pre the refurb.

If we now step on Page 16 to Spain, 57,000 square meters signed in Madrid, more than 20,000 signed in Madnum in one of the most relevant urban prime campuses in the city of Madrid. In Barcelona, 54,000, interesting highlight 40,000 square meters 22@. So momentum in 22@ is getting better. We are positive on Barcelona. We see this as a big opportunity.

If we then go on Page 17, you can see one of the main flagship projects and assets that have been recently released to be delivered, that is Madnum. It is a large asset, close to 60,000 square meters. As of today, we have already close to 40,000 square meters signed with top-tier tenants, most relevant recent news just some weeks ago with 1 global leading telecommunication firms letting up 13,000 square meters for 1,800 employees. We have remaining space to be let of roughly 19,000 square meters.

As of today, we have already visibility for close to 40%, 3,500 square meters already signed in October. So after this results cutoff, but already today at home secured and conversations for additional 5,000 square meters. This asset, just to remind you, has a yield on cost of 8% and we are signing rents at levels of EUR 27. This is well above the initial underwriting of ERV for this asset. It was around levels of EUR 23.

If we go further, here we see a very important point of our recurring earnings and revenue growth is the pricing power that our prime asset class portfolio has. We have signed a release spread of 9%, strongly driven by Paris with plus 7% in Madrid plus 4%. Barcelona is slightly negative, but this is basically due to a secondary activity in the Q2. We would look isolated only at the Q3 numbers, the last 3 months, release spread has been positive of 1%. So it's a cumulative effect from previous quarters.

So we are seeing there also a change in the trend. On the ERV growth, we have signed on average, 6% growth versus the December ERV. So in 9 months, 6% growth. This is beating the average indexation that we had in the portfolio in more than 300 basis points. So really our prime asset class is delivering an extra chunk of growth due to the benefit and the polarization impact of prime asset class assets, again, strongest market. Paris and Madrid, very strong and Barcelona, getting slowly but steady back to momentum.

On occupancy, you can see it on the next page. Basically, we are at -- the portfolio is at a stable level of 95%. We had the entry into operation in terms of like-for-like comparison with the entry into operation of the full project of Méndez Álvaro and Haussmann. And this has put down temporarily the total occupancy at 91%. In these assets, as I told you, the 4.4% is concentrated in these assets with the contract signed already today in Madnum is 4.4% is already down to 3.2%. And if we look at the rest of the breakdown, as you see, our prime portfolio, Madrid, Barcelona and Paris, the super-prime assets have almost no vacancy, Barcelona 22@ at 1.7% and then we have a small -- very small procedural part of secondary exposure that explains 1%.

Last word on sustainability. We had recently just rankings on GRESB and Sustainalytics. We are really absolutely at the high end at Sustainalytics for the third year in a row, the best company rating at total Ibex and we are the best globally across every sector among the best 22 among 14,000 companies.

At the end, this is also a proxy of the high-quality assets that we have. Only if you have a high-quality asset with the best amenities, you really have an efficient energy consumption and therefore, low carbon emissions. So sustainability is a good proxy for high-quality assets in terms of features.

Thank You, Carlos. I think that if I had to summarize what we've heard from Carlos and from Carmina, well, first of all, this last point about ESG, I think that is an impressive leadership, the one that we have been showing regularly and again in this quarter. But if I had to summarize the presentation up to now, I will say 2 things. It's an outstanding letting volume activity, number one, which means that despite any views on the Paris market, not in our case. Then moreover, when you think about our volume in Barcelona and in Madrid, it's been impressive.

In the case of Madrid, this year was the year of the test of Madnum, and we are approaching the end of the year and the homework is done with very high standards of rents. So number one, in emphasis is on volume. Number 2 is on rental growth. Again, you see these numbers on like-for-like, and we beat inflation. We beat our peers. We beat, obviously, the year before in terms of rental level. It's -- I think it's an outstanding number, the one-off rental growth.

So I would summarize basically these 2 main features. And now let me enter into some thoughts about the future. On Page 22, we are reminding that our focus is on earnings growth that we've been delivering already this earnings growth at a path of a 9% CAGR in the last 3 years. And this coming from several sources from rental growth itself, from prime factory projects from capital recycling. This is the main focus of our strategy.

And the conviction that I would like to share with you is that we are very well prepared to deliver additional EPS growth with double-digit IRRs in the next few years. Coming as we see on Page 23 from 4 different sources: From urban transformation projects, which have a significant impact in the EPS going forward; from the prime asset reversion that adds cash flow growth on top of previous one; from third-party capital initiatives that we started this year; and finally from capital recycling.

Let me be more specific about each one of them. Page 24, driver #1, Urban Transformation. We expect EUR 100 million of rents coming up from these projects, year '25, year '28. The first column, which is the one regarding 2025, you can see that we already are delivering mainly in Madnum, which was the most relevant challenge for this year. Let me share you again that throughout 2026 to 2028, we expect additional rents that would mean that compared to 2024 EPRA EPS, EUR 0.11 would be added. That is a 33% on our EPRA EPS expected. I think that certainly, when anyone is looking at us is looking at Colonial, this has to be a headline. It's not so much about the current EPS, but what is expecting -- what we are expecting, what is waiting for us out there in the next 3 years.

We have also a very good potential coming from the second driver. The reversion that we expect for a number of selected assets. If we add what we could expect from Prime Paris to what we would expect from Madrid and Barcelona, we see EUR 47 million that would come simply for the fact that we put -- signed contracts that come to maturity at today's ERVs. And so that's another source of cash flow growth.

The third one is on our third-party capital initiative on science and innovation. Here, the comments that we'd like to share is that this is going on track. First of all, the seed portfolio is going through the expected milestones of occupancy and growth. We are today above 80% occupancies as expected. But on top of that, we are looking at additional pipeline and additional fundraising progress. Our assessment today would be that we have short-term visibility -- high short-term visibility to grow the assets under management from EUR 400 million to more than EUR 600 million at the same time that we have very interesting conversations for more than EUR 200 million.

So in a way, this confirms a little bit the path that we were expecting for this particular track that would mean if we deliver what we expect would mean EUR 0.02 to EUR 0.03 additional of EPRA EPS in the midterm.

And finally, another source of value is through active capital recycling. Maybe here, the message that I would like to share is in the first half of the year, we put the focus on the available opportunistic investment opportunities, mainly the one that we saw just a moment ago, the size and innovation portfolio. We would like to enhance and go further in the direction of capture opportunities in the European real estate cycle. But maybe at this time, what I would like to share is more the visibility and the focus that we are putting on the capital recycling in terms of disposals.

We have a view that the disposals to navigate this capital recycling process with some fundamentals today could mean EUR 0.5 billion of disposals to come in the next 18 to 24 months. Maybe I would like to highlight that almost 2/3 of this would be based more on the short term with high visibility. So our view on capital recycling is that interesting opportunities may come. First half was about investment. Second half, it's more about divestment and initial of next year. And then we follow up with an opportunistic capture of activities in the market.

Everything put together in terms of strategy and outlook. As I said, Colonial is focused in EPRA earnings growth, 9% CAGR in the last 3 years. We remain, by the way, with a full year guidance on track. We are a little bit more specific. We expect a range EUR 0.33, EUR 0.34 for this year. We remain on a strong business model that is generating a 5% like-for-like growth so far. And most of all, we have additional cash flow and value coming on the back of project deliveries and pricing power on the existing portfolio.

This means a growth profile that can generate more than EUR 150 million of future rents through this new pipeline and reversion. And all of this focus in a strategy of relying our fantastic positioning on our core markets but together with enhanced urban transformation growth strategy with a certain example in the science and innovation field and based in the support of third-party capital.

This is the message for today. We think that is a good set of results. Now we are available for any questions. Thank you.

[Operator Instructions] And we shall start with the first question by Ignacio Romero from Banco Sabadell.

Thank you for the presentation. So I have a question regarding loan-to-value at 47% on an EPRA basis, you are now near the same level that you had when you announced the deal with criteria a year ago. So how do you see a loan-to-value evolving in the future? Would you expect to lower it by this capital rotation that you have just mentioned? Or do you expect asset revaluation to lower the ratio, maybe even a new capital equity capital injection. I would like to know your thoughts on that issue, please.

Okay. Carmina speaking, thanks, Ignacio, for the question. As you know, we look at the leverage in a very holistic approach, which means that different KPIs which are included in the rating. So our commitment is to maintain the rating, the investment grade. And it means solid ICR. It means that solid EBITDA, net EBITDA, it means liquidity and it means, of course, loan to value. These levels, as we said, are temporary because we are making progress on the capital recycling, but it's not a way of settle exactly a percentage of loan-to-value. It's a more, I would say, approach in the rating agency methodology. So it's true that after the capital recycling strategies and of course, still, this is based on the last price evaluation, which was in June and in the end it will be updated, we believe that the levels would remain as they were in the previous year. But as I repeat, after the capital recycling, we believe that these levels, this is why the rating agencies has keep and maintain the rating.

Next question comes from Valerie Jacob from Bernstein SG.

I've got a couple of questions. The first one is -- maybe a follow-up on the question that's been asked on the LTV. I mean, you mentioned that you've got EUR 0.11 coming from the projects. Can you remind us how much you need to spend to deliver this EUR 0.11 and how is it going to be funded? Or what is the impact going to be on your LTV? That's my first question.

And my second question is just looking at your earnings. I think in H1, it was EUR 0.17, and it's EUR 0.25 for 9 months. So there is a slowdown in your earnings growth. And I was wondering if there is any reason for that? And what does that mean for the guidance? Because I think at H1, you said you are likely to be towards the top of the guidance. So are you still there? Or are we more sort of in the middle or lower part of the guidance now?

Okay. So on the CapEx related to this 200,000 square meters in Page 24, you know you can see the details of the pending CapEx attached to this project pipeline, which would add this EUR 0.11 per share. So this is funded through disposals and through maintaining as well the ratings and the levels of the metrics for the rating that we have in place in the investment-grade BBB+ by S&P and Baa1 by Moody's. So considering that the valuation on the pipeline will -- it's not factor for value today. So it will be factor the full value after completion.

And so when you consider this IRR expecting for this CapEx plus the pending CapEx plus the capital recycling, this is the reason why, as I said before, the rating agencies, maintaining with a stable outlook our rating and -- our credit metrics and our rating.

On the second part of your question, look, I think that we are more or less in line on what we -- with the vision we delivered throughout the year. We started with a wider spread because of the logical uncertainty on a business that just -- sometimes just for timing issues, you can go a little bit after or a little bit ahead of what you would expect. Where we see the earnings today, it's more focused on the 33%, 34% range. maybe still more biased towards the high end at the lower end, but this is too precise, not for us to give visibility at this moment. That's the number we can share today.

Okay. And is there any reason why it was lower in Q3?

That's just timing issues. I mean there are -- in the end, you don't have a stable perimeter throughout the year and we cannot be mathematically equivalent in all quarters. So just normal timing issues on the ordinary course of business, nothing exceptional happening.

Okay. May I ask a last question. Looking at the supply coming in Paris, if I look at what the brokers are expecting, they're expecting the vacancy rate in Central Paris to go up. And I was just wondering, what is your view on what effect it's going to have on rent? Do you think that prime rents can continue to grow in Central Paris? Or do you think that will put a halt to the growth?

Yes. Good question. No, we insist on the increasing polarization in the market. We are happy to be in a particular segment where there's so limited supply that is not enhanced with additional assets that come to the market that in our market, the fundamentals of supply and demand remain the same. We understand that the rest of Paris maybe more cyclical subject to a specific situation of each year in terms of supply and demand, but this is not affecting us and I think that the results that we are presenting today try to support this view. It's this vision that you're saying about the market is something it's been around for a while and look at our numbers. So we believe that no relevant difference should be happening in the markets that we are relying on.

Next question comes from Ana Escalante from Morgan Stanley.

I have two questions, please. The first one is on occupancy. I understand that this might be as, Pere, you said some temporary thing, but looking to your previous reporting and even going back to 2015, I think this is the quarter with the highest occupancy rate you've ever reported. Discounts at the time when the indexation impact is slowing down, particularly in France. So looking into 2026, are you expecting to sustain this strong like-for-like rental growth? Or how are you expecting both the lower impacts on indexation and the temporary albeit maybe significant occupancy decline to impact the like-for-like in 2026?

Look, obviously, there is a general theme of indexation that is a general playing field for everybody, and it is what it is, and it's basically factual and then the contracts that go through indexation have the indexation level that is done in the market. However, having said this, and I think these results show very clearly, we've signed super strong retail contracts at super high levels, office contract at super high levels, progressing very well, a lot of square meters and moreover, economic value.

And tying this to what Pere said, when you look today, the Grade A availability in Paris is below 1%, is 0.9%. So the segment where we are, that is really no product available. And for this type of segment, at least what we are seeing in our daily operations, the take-up is healthy, and we are signing with very strong release spread and very strong rental growth. And this is a very high component in our like-for-like growth.

We have more than -- close to 500 basis points of extra chunk of growth in the portfolio that have been signed now and that are not part of the profit and loss accounts today because things that we signed today will flow into future quarter's profit. So we have part of the future like-for-like for the Paris site secured. Paris is strong, and Madrid is having quite significant acceleration and also in CPI, a little bit higher than expected as you know.

So we think we can -- nobody knows the future, but we have the feeling that we can maintain these strong levels of like-for-like growth. And we have then also some occupancy spare capacity to be filled that also creates additional like-for-like. So we are positive. We don't know the future, but we are positive. We think our product really can achieve and maintain these levels.

Okay. Very, very helpful. And then another question maybe on disposals and any other assets that you expect that will go under refurbishment in the next year? How dilutive you think that could be into EPS? Because when I look at consensus, we are anticipating, as you guided strong EPS growth in '26 and '27. But how dilutive these disposals are expected to be into that guidance? And to what extent that strong EPS CAGR for the next years is something that we will start to see maybe a bit later than we are expecting?

Ana, I think -- thank you, but you need as well to consider the future pipeline that will come into operation in the following year. So the 87,000 square meters from Madnum, Diagonal 197 and Haussmann that has been delivered this year. will be impacted, of course, in the due course after resell letting activity during 2026 and 2027. And then the scope, which is going to be delivered next year at 20,000, 22,000 square meters, again, will be impacting partially 2026 and 2027.

So all in, it's what you can see the potential disposals, which we are disposing and valuation yields will be compensated. And of course, with the P&L with a positive impact on the -- coming from the program, the pipeline program that the yield on cost is much higher. This is the beauty of our business, this trade-off on yields and maintaining and keeping the EPS growth.

Maybe just a last comment. We do not expect any major projects coming up in our portfolio. Everything that we had to reposition and that has really a value creation perspective is what we have today on the page where we show that EUR 100 million of rents on Page 24. And the rest of the portfolio is basically a stabilized portfolio. Here and there, sometimes a little bit of floor to be repositioned, but nothing really big. I understand your question because many people have asked me this also in one-on-ones because there are some other people in the market that have quite relevant things coming up. We have nothing. We have just to deliver what we have. This is EUR 100 million, and the other is business as usual, managing the stabilized [indiscernible].

Next question, Michael Finn from Green Street.

My first question, if I may, is on Slide 27. And I'm just curious if you could tell me, please, a bit more about the right-hand side of the slide. In terms of what you actually plan to do to capture the recoveries? Do you plan, for example, to stay in the same cities? Or are you looking at other cities? And if so, where? And then also maybe kind of connected to that also, I'm curious on the EUR 0.5 billion that you plan to sell, how do you balance the other uses of that cash in terms of the current debt level that you have in other things. So that's my first question.

Yes, Michael, it's -- I think that we -- what we are trying to do with this particular slide is to be a little bit illustrative, but it's -- maybe it's difficult not to pass the message in a very strict way. My view. My view is, look, on the disposals side, we know that we want to do this level of disposal because we know the kind of assets that we're talking about that we know how dry they may be and the opportunities that may be out there. So this is -- there's a level of certainty attached to that.

At the other side, we have knowledge that the market is offering opportunities because the supply and demand of money is a little bit disrupted everywhere, but particularly in France or in Germany, not so much in Spain. And you don't see many people capable of coming not only with money, but with know-how to be involved in opportunistic investment opportunities that may come with very interesting IRRs associated to this.

On top of that, we believe that not only the alpha, but the beta in certain markets may help. So what we're just trying to say is that our goal as a listed company is to recycle capital to divest to keep the KPIs on the -- at the balance sheet level strong. And then to invest, but this it will be based more opportunistically on the back of the beta opportunities that the market may give us plus the alpha that we see. That was -- that is what we're trying to illustrate here that we believe that is an interesting moment of the market if you are investing on a 5-year horizon. But that's what we just wanted to illustrate with this kind of chart.

Okay. Yes. And then maybe just in terms of the type of assets that you plan to buy. Do you think you would prefer to buy an asset that needs quite a lot of work or a standing asset that would yield from the first day?

Yes. The ones we like the most is the ones that with a little bit of creativity, you extract extra rents with very limited or nonexisting CapEx. In other words, we do not see ourselves investing in heavy CapEx in pipeline of things that have to be developed from the spread, totally refurbished. I think that the opportunity cost of capital is not exciting.

On the other hand, when you are more kind of a professional player and you go out there, you see sometimes assets that you believe that just with a little bit of creativity with your goodwill in the know-how that you have with your clients, you could improve. You simply -- you see something that has rent of EUR 30 and you see with a little bit of ideas, I would put this on EUR 35. So it's more this kind of real estate expertise oriented investment, the one that we would favor, of course, leveraging a little bit on the fact that there's not a lot of, let's say, plain Manila money out there in the market. That would be more our focus in terms of investment.

Okay. Okay. Yes. And then a final question, if I may, on scope. I'm just curious over the course of the year, if your view on the effective rent there has changed. So that's the rent after all the rent freeze that you'll have to give to the tenant. I'm just curious if that has changed.

Yes. No, I think it's early stages. Yes, I understand it's -- in the same way that Madnum for us was the great adventure and challenge for this year, and we are super happy about the outcome. We see this more '26 kind of focused. And yes, I'm also curious about the answer as you. I totally share. But too much early stages, we don't have visibility. We remain with the same kind of underwriting note that we had on this asset by now.

Interesting, yes. Yes. And then sorry, maybe just to clarify on that, do you think at the moment, rent about EUR 720 and incentives probably in the high teens. Would you say that's fair in the current market?

We did not follow you completely, the quality of the sound -- can you repeat, please, Michael?

Yes, yes, sure. I just said, is it fair that the rent at the moment will be about EUR 720 and incentives would be in the probably upper teens. Is that fair in the current market?

I don't have enough visibility to provide with an answer. That doesn't sound illogical to me what you're saying, but I wouldn't like to come now with a specific assessment that I cannot provide right now.

Next question, Celine Huynh from Barclays.

My first question is on the guidance, please. Like Valerie, we also noticed a slowdown in earnings growth in Q3. So can you elaborate what led you to narrow that guidance? Because initially, you were guiding to the upper end on the previous call.

And then my second question is on the disposal you've just announced. You're sounding quite confident to achieve those EUR 500 million. Can you tell us in which country you're planning to sell? What kind of assets? Is that offices, residential and what kind of yield.

And my third question is on the opportunity you're seeing currently in the market. We've heard you mention Brussels, Germany, Italy before. Is that still the case? Are these still markets that you're looking at for acquisitions?

Yes. On the EPS, I think it's just as the year goes by and we are approaching the final end, we can be more precise. And in narrowing this from [indiscernible], what we see is just that we can be more precise. And we don't see anything similar to a slowdown in -- you've seen all of the KPIs. So if anything, some timing issues in certain specific things, but nothing specifically in terms of a slowdown.

In terms of the disposals. Yes, normally, if we say high visibility is because we are working on specific assets with specific bidders. We always take some risk in saying this because high visibility means that you cannot announce certain transaction but you have good grounds. And you know in this sector that you cannot say that something is done till is done. But basically, as I said, in 2/3 out of what I said, maybe between half and 2/3. There are specific names of assets and names of bidders will give us that kind of confidence in delivering this. I cannot provide more visibility, maybe except that we are maybe taking advantage of the interest that the residential sector is having us showing in Spain.

So one of the components of this may be residential. Besides this, I would not exclude anything. Spain, France, any kind of assets, but we cannot be more specific as of today based on where we are. And I think you said third thing or -- yes, opportunities. No, what we always say is that the main point -- main focus about our approach is to be opportunistic. And we don't work in a way of, let's say, preempting or having views about where we want to be or where we don't want to be to a level that we would be so specific, and we will be here, we'll not be there.

We see opportunities a little bit everywhere. We see opportunities in France. We are looking at other countries, maybe Germany is the one with higher visibility as of today. But we cannot be more specific than this as of today because, as I said before, short-term focus, it's mainly on the capital recycling on the divestment side more than on the acquisition side.

Okay. Can I ask you one last question, please?

Sure.

I mean, you've heard a lot of the questions on the call being about LTV too high. You're saying that you've got EUR 500 million of disposals very likely to come through. So why is deleveraging not an option for you?

Why, sorry?

Deleveraging, reducing your debt?

No. I think that we have been, let's say, confident traditionally that the level of our debt is a good one and based on several grounds. One is the kind of support we have been having on the debt markets. You've seen how we have placed the bonds in the past. You can see how the bonds are trading. You can see the level of support of rating agencies. So we've been traditionally confident on the level of debt that we've had. We are also committed to keep this and that means that if there is a temporary increase in LTV, we take the necessary measures to keep it in the safe zone on the zone where we want it to be. And -- so as of today, we see this more as a time issues, you cannot choose to invest and divest precisely everything at the same time, all of the time.

So sometimes when you see that you've been able to divest and then you put focus in the investing, sometimes it's the opposite like now, and that's where we are. But coming back to the original point, if we are strong regarding debt markets, then the other question is what's the concern on the equity side, that the LTV, the concern can be because you think that you have a risk insolvency, let me put it this way. And I think that would be far away of anyone's concern. The other thing is from the point of view of providing the nicest returns to shareholders. Are you -- there is a common sense that is really ground to think that deleveraging you are working for your shareholders. While at the same time, you don't need to work for debt market based on the kind of support they are showing.

What I want to say with all of this is that we are confident with our level of debt. We are also engaged in rebalancing the situation to remain strong. And we are confident in the fact that we will remain in this strong level as we have been in the past.

Next question comes from Jonathan Kownator from Goldman Sachs.

Two questions on my end, please. The first question, I wanted to come back to the topic again, I'm not entirely clear still. So the disposals that you're introducing now, is it the aim of disposing to reinvest the same volume? Or is it new disposals? And what is the impact you expect positive or negative, obviously, on the sort of EPS trajectory that you had announced earlier. So that's the first question, please.

And the second question was on the science and innovation portfolio. You're now highlighting 80% occupancy. So can you help us understand a bit how this portfolio is going? Do you have more assets to be delivered? Or is that the full portfolio and then you just have to fill these? What are the prospects from tenants? I mean it's a space where we have seen some -- in some areas in respect, better lettings from the innovation space that the science area has been perhaps a bit tougher at European level. So if you can help us understand this, that would be great.

Yes. Thanks, Jonathan. On the first question, we are, let's say, certain about the goal on disposals because we want to have the deleveraging FX coming from this on the second half of the year after the leveraging company on the first half. We don't have the same degree of being specific regarding acquisitions. This is more opportunity-driven. When an opportunity comes, we balance everything. One is the return coming from the investment. The other is the risk -- the risk associated to this including spillover kind of effects on our balance sheet. So we have a much more restrictive view.

So I understand that this is not an answer that is yes or no, what are we doing with the money? And do we want to spend it all of them? Do we want to spend nothing on them? There's no specific answer for this. What we are focusing is high priority on the divestment side and then being very opportunistic on the investment side.

On the second question on seed, Carmina, you want to step in?

Yes. On the seed, it's -- today, we have 80% occupancy, but we have a small refurbishment that has been already pre-let. The kind -- Jonathan, the kind of tenants we have here, as you know, there are some kind of buyer as one of the big ones. We have as well innovation divisions from certain hospitals, innovation divisions from certain pharma companies. And the [indiscernible] world of today, it's almost 9 years, but we are recycling some tenants in a more, I would say, corporate tenants with more long-term contracts. So the expected stabilized yields are in the range of 6.5% stabilized. As of today, we are now in this recycling tenants, enhancing brands, increasing maturities and the profile of these 2 big campus are the ones that are more very exposed in the innovation and life science fields attached to the big pharma names.

Okay. Very clear. So if I can just, sorry, resummarize the first question. So if I understand correctly, the EUR 500 million of disposals is now incremental to what you had previously said in terms of earnings growth trajectory. And obviously, your aim at some point is potentially to compensate for that, but there's a bit less visibility and it's more the capacity to remain flexible. Is that a fair summary?

Yes. I think that, yes, in a way, there's more certainty attached to divestments, there's more opportunistic approach to future investments, which means that any scenario is likely to happen, but the probability is more with the profile that you just mentioned.

Now there are no further questions. I then give back the floor to Mr. Pere Vinolas.

Well, thank you. It's been a very interesting session, not only because of the results that we shared that I think that were very interesting, as I said, also because of your interest, support and interesting questions. Thank you very much for your time and looking forward to seeing you soon again. Thank you, and have a good day. Thank you. Bye-bye.