Colonial SFL, Socimi S. A. ($COL)

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 our 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 it's 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 are 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 Magnum. 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 the 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 and welcome. We will devote a few minutes with me about investment case of Colonial, we will go then more in depth about our operational business model. Afterwards, with Carmina we'll 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 [Foreign Language] SFL. I hope my French is who will be 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, it's 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 a different and better. So that could be objective number one. Why? Because of the positioning of Colonial in the prime asset role, which offers a clear path to value creation. So clear positioning of Colonial and clearer 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 1 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. 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 has 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, it's core. And all of it is at a real top of ESG compliant. And that's what I [Audio Gap] simple and 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 road shows, 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 alongside 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 is about thriving, cities are expanding, are attracting, are the place to be, are where the 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 this 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 worlds, 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 this year. And we all know that the office as an asset class has been challenged because of many things happened. But the way we think about it is in a positive way as an opportunity. So COVID started, COVID [Audio Gap] 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, may be 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 a 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, 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 -- that we've been following after COVID. It 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, and 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, 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. [Audio Gap] more and more from platinum to gold to silver to very politely bronze kind of places. So difference of -- 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 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 the 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, 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 a 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 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 of the assets. Here, the key message that probably Juan 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 projects, 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 Mandarine 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 up and down, buying and selling things in just 1 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 the differential with a gap versus our peers, which is maybe not because of us, maybe it's because of the submarket 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, we always did this. We always -- many of you, we have met in many places in many meetings on road shows. We 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, whether do we buy and we sell. I won't go into details. and Alexia will go much more than me 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 at 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. will cover this. This is going super well. You will remember not to you that everything we've done for many years, all of the several billions we sold always at NAV or JV or a premium again this time and being executed in very good rhythm and 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 that the investment thesis, it's all about prime, first of all, as the 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 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 when -- on your path 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 without 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 a much better use than of traditional office. We are also considering as well we'll talk now, a big project of 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. It's -- I don't know if you -- maybe you saw it in the press, is, It's a trophy asset project that is in the market as we speak. We look for it. Did we like it. Yes, 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 know 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 early stages of the process, which for us was sad and happy at the same time to see the market dynamics. Has been a little bit of the same. We've been thrown through the window quite soon. which will 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 working up or down looking for these kind of things. And when we have 1, 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's 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 market, 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. This -- 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 thing that we are doing, we have more, let's say, wider view. We have you have bring us your confidence in us managing a $12 billion portfolio. And we believe it's wise to devote $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 phases. 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 would be my first presentation. I probably already killed the agenda now 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 and to Alexia. Thank you.

Thank you, Pere. Welcome, everyone here. I think it's a privilege to see you here in Madden. 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 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. And 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 strong reversion release spread. Second pillar is 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 harvest 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 is 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 this month, 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 want to make the most of the opportunities, as Pere was mentioning before in different places where we are sure we could be doing returns in the field to come. So if we start and I think it's obviously, it's been said, the value of our portfolio relies on -- it's a unique and a replicable portfolio. comprising in excess of 80 amazing, prominent, standard owned 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 the to -- the change of a project like 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 chronic 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 primary 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 on 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 and explain 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 the Pope visit to Madrid, everyone has remained at home. We were expecting the city to be but -- so maybe today, it's 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 coworking spaces, all these services of the auditorium, et cetera. What are we doing in terms of design? We are trying, and 58% of our properties provides large floor plates that links to efficiency, together with the horizontal buildings scheme, and that has made us possible to have these multi-tenant derisk client base. They -- and it's not about 1 sector, it's not about companies of 1 sector, it is 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 and all the environmental and ESG policy. So maybe 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. 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 about tech companies with Meta and more recently Finterest. We have also clients in the finance field with, let's say, many of them like -- sorry, or many others. We have also a fashion industry with LVMH, 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 as you're seeing here. is a masterpiece. He'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 mix use complex. And if we are reminding all the criterias 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 with -- sorry, large and horizontal and very modern floor plates, 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 real traction and vibrancy in this complex. When we are talking about mix 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 hotel, 2 famous theaters, including the Olympia. We have also residential and living units, also coliving 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 by 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 these 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. Yes, 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 50 years. And here, you may see 2 generations of projects, it's not about 1 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 2 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%. And I would say, outstanding a 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, you're going to visit Belafked. But you can see here the -- 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 Magnum, and maybe it's just we're 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 some years ago. What is today? Well, 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 major 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 to come to the city. So it's not just 1 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 made employees, 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 underwriting rents, we have exceeded 25%, It has -- in the end, it has created -- at the beginning, this was called the -- a second area within the outside the CBD. But today, because the rental performance brokers wants to have Magnum as part of the CBD. So this is a reflection of the urban transformation effects. Then if we move super primary, I was saying like. 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, but we did it, and we moved some of those clients to other properties of Colonial like Discovery. I think the design is -- we would see later. It's a state-of-the-art, one of the most attractive terraces within the city and we have renovated in the sense that the operational team led by Albert, they have includes common areas within the gross lettable area of the clients, and we are super happy to pay for those areas because they enjoy those areas, they use those areas. So later, we will see this. And Alexa, maybe some great project in France, your words.

Thank you. You are probably very familiar with this operation in the middle of the third of Paris, which is called 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 state point, 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 mid- to long-term view. You have to have a lot of convictions and ambition and discipline. First of all, we pre-let and secured all the retail area by signing a 40-year from term lease with 1 of the major luxury brand in the world, which is 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 cocreated 1 of the most sophisticated innovative and very highly technical projects designed by 1 of the most impressive architects. We manage our manage 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 1 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 in order to verify if it was technically feasible and also to define the right methodology to deploy this kind of projects in a very dense environment because you are in front of the 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 works 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 lead this amazing building become the prime office building in Paris. We have already signed 7,000 square meters of offices at really 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 Juan 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 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 1 of the main players of the health care area. This is in the Bupa Group. It's Sanitas. So now we have a very good news because we've 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 EUR 111 increase on the former rents and 20% above of 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 being -- it's going through a full reconversion to 1 of the, I think, vibrant and promising leading concepts within the 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 met an agreement with 1 of the main players of operators of the living arena. So maybe a few words about France, Alexia?

Regarding France, 1 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. It's a major transformation of this previous Natixis' headquarter. It will be best-in-class product definitely with high visibility through its new bioclimatic facade, as you can see, with obviously large and modern floor plate and a very defined 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 a first contract pre-let yesterday. Is the same kind of vision but in a different area. It's next to 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 developments, which mix 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 floor plates, 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 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 seeing 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 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 it 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 1 transaction today. At 12:00, we are selling this -- we are selling 1 of our residential -- granular residential assets in the outskirts of Madrid worth EUR 20 million. Tuesday this week, we signed a commitment further 19 dwellings in 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 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 an appraisal value and normally with a premium on an appraisal value is not a bullish stock in. 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 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 and innovation arena, critical infrastructure, clients to the real estate properties. And then just Pere already mentioned, so the 2 projects we are today involved, one, it's the creation of a leading platform within the 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, on bed each 17 students, inner Madrid within the M30 Ring Road, it could be even higher. So following the scarcity, following the mega trends we have progress, we have progress 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? 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 is this 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 the 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. This is a meaningful growth. And as you can see here, this 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, it's what you've seen here, growing, keeping the metrics on the ratings and even enhancing the ratings at the level that we would like to be, which is this quoting S&P BBB+ and accordingly Moody's BA1. So this is the rating that we need to be focused where we want to be and the range where we want to be in sight 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 a 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 think -- 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, it's 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 1 of the -- probably data. It is about the solid investor appetite, is what we experienced in the last -- in the recent bond issuance. By the way, green bond issuance. You know that 1 of the key strategies in our run 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 all 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 annual subscription 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 April 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 of 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, it's 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 a very, 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. They are interconnected among them. So each 1 enables the other 1 and disciplined recycling of capital funds that you've seen before from my colleagues, Alexia and, the news funds, sorry, these disposals of funds investing at a better returns. Financial discipline preserving the credit metrics, the rating credit metrics, and together, we generate this ambition of shareholders' return with a very -- with say, solid and predictable cash flow. Let me walk now through each 1 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 financials. 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 binomial, to put this balance between growth and discipline. So how we approach 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 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, a strong profile gives us a lot of certainty on cash flows. And this is different than others, and you should consider when you 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, 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 disciplined financial discipline in the range of this loan to value, in the range and below with 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 ratings 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 leaves the output, it's 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 space 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 asked for about what takes our target loan 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 look 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 it's translating in this range by S&P to what you would like to listen to loan-to-value, to loan to value, to IFRS loan-to-value or to loan to value. So basically, to keep this range 35%, 45% in S&P loan to value. It's translated in the group loan-to-value maximum 42%. Today, we are at 37%. Our internal goal being a little bit more conservative at max 40% and loan to value, the translation of S&P to 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 question. 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 loan to value. So this is a leverage -- 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 an 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, 15. 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 10, 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 to today's market condition. This plan show 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 some times. 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 we'll 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 short 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 -- 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 more -- a lot of details, I'm happy to disclose and to answer any questions if you have. But 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 it's 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, 627, '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 2027 and beyond. But how will be this EUR 233 million allocated to recycle in is the ones that the bottom line. So the idea you need to take from 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, 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 debt, 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, one 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 this is behind this is a real policy. Given that financial discipline, I'm going now to the other box, to the other part of this 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 -- 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 to there is core 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 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 that if the asset is under managed and we can treat value enhancing the operational part of the management or some like 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 recycling 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 the 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. We don't reach this hurdle rates, we are not going to do it. And this 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 at 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 other rates, beating the cost of capital the markets are requesting, creating value through any investment approach. and disposal at a price 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, these loan-to-value hurdle rates that 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 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 1 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 result 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 we 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 grown debt with the same financial discipline I explained in my presentation. So conservative assumptions, very secure numbers. and with the 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 in the LCI 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 share buyback and we are going to propose in the AGM 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 provide 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 opportunity as we had in the past at 90% IRR and 10% IRR, of course, we are creating more value, investing at a 10% IRR rather than doing share buybacks. Why? Because the share buybacks implicit IRR are below the harder rates that we are targeting in our capital recycling. So only it makes sense. And if we -- again, if we've done fine or we don't see better returns enough to beat this hurdle rates or to fulfill this hurdle rates, of course, we have a scope for these discretionary share buybacks additionally. So to close my presentation, I will give you some -- probably some key messages 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 and this presentation about that we have take -- 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 and 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 last -- my first presentation in my first page, when you look about the 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 and 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 hand to the Board to Carlos. Thank you.

Okay. As you have seen this morning, we are in a segment that is a prime asset class that growth across European gateway cities. We have the capabilities with the platform, and Alex 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 on portfolio improvement and we have everything that we do takes into account to have a well-grounded strong capital structure in order to optimize to 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 1 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 rents, 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, we have 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. Three have just been delivered right now. 3 have just been delivered right now. It's 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 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. 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 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's quite important number. On the project, as I said, 3 of them are delivered. They have almost not contributed a lot of rents in 2025 because they were -- they will 2025, and they will now kick in across 2026 with interesting numbers of rents. And then progressively, the urban business campus at will kick in towards the end of the year. Than in -- towards the end of 2027, 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. 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 really spread. There are some assets that stand out. has a very interesting growth portfolio, then also regulators and as they are very strong assets with strong pricing power have an interesting profile, Then there's some ramp-up. 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, that 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 are kicking in more at the back end of this time line we get the full capacity at 2030, at the EUR 100 million are being achieved in 2030. But in 2028, we expect to be at EUR 80 million. The remaining CapEx is EUR 148 million in 2026 between EUR 100 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 off assets and we are redeploying the capital. As of today, we expect to have marginal impact of value creation in terms of EPS, recurring EPS, 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 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, but 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, and 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, 15 to 18 that in an environment that everybody knows where we are still in a situation of increasing interest rates more than offset 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 may be 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 solid and disciplined capital allocation framework. And when you 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, 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 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 idea is, 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 unbalanced 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 is being 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. [This call length has exceeded streaming capabilities - Please refer to the preliminary transcript that will be posted shortly.]