Colonial SFL, Socimi S. A. (COL) Earnings Call Transcript & Summary

On behalf of the Board, I thank you for your attendance to this AGM. That's done telematically, given the law guaranteeing the -- your rights under the equality of conditions and feasibility 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 Manguardia ] 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 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 we end the summarized reading of the agreement proposal. From that point of view, the shareholders and representatives who want to vote against or abstain with regards to one or many or more or all of the proposals in the agreement or inform about their leaving the meeting, they should communicate so 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 and 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 0.1% ] 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 these 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 notaries 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 value 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 value 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 and 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 core value of our assets increased until [ EUR 2,294 ], a growth of [ 2% ] 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 [ bad ] 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 indebted this 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, fine 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 [ content ] 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 the main European urban calls 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 appointment, 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, 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 [indiscernible] 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 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. These data confirm that diversity in Colonial is a main tray 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 whistle blower 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 charge 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, [ George ] said. 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 dip in 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, and for example, to the systemic increase in interest rates or the question 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 [ 9.78 ] 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 -- proven 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 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 [ sale ] of lines, the Madrid and Barcelona, the dynamic in year 2025 has been extremely positive. The revenue 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 recurring 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 thing I would like to underline is that this is not [ everything ] 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 100 million, at the end of 2024, EUR 193 million. One year later, we have EUR 211 million, a growth of plus 9%, and from a profit share upticks, which I'll speak about, the [ EUR 3.6 ] 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 30% 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 demanded 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 deals. 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're 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 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 and 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. And 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 is -- today's liability is below 2%, and we project this liability with a known data from the market in year 2025 will be in a very competitive landscape. And way ahead 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'll talk 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 in 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 revitalization 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 per share, is framed in a historical dividend growth dynamics, which is growing uninterruptedly since year 2026 -- 2016, sorry, and the Board decided to accessorize it with the possibility of [ cancel 1 owned ] action, which position 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 only in cities where we obtain the response 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 offices, this translates into a certain polarization and I said, 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. The 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 projects, we are now 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 with us 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 projects will be a central element to contribute to value creation in the next 3 years. This value -- this project, sorry, are called to produce a total revenue of around EUR 100 million -- more than EUR 100 million. The [ fairs ] of this project has 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 110,000 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 will be around EUR 0.11 per share. On these grounds, we are forecasting a 2026 that shall be framed in the historical growth of profit action dynamics, and we have communicated the market, a guidance for the closing of the year of between EUR 34 and EUR 35 per action. If we look beyond, what we look at is a sustained strategy of our profit per action. More recently, we have cut out the Capital Day, when we communicated to the market our estimates -- our profit estimates in the mid run, which we estimate at between EUR 31 and EUR 34 per share by the end of 2024 [ 8 ], which represents an aggregated growth of around 25%. Colonial and comparable companies are companies where dividend plays are 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 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 believe in the future evolution of our results. Thank you very much.

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 -- and we will define them -- we'll identify them previously before the reading. We inform you that the information of questions asked will be answered by the Chairman, the CEO, any other Board members. Okay. So now we shall proceed to reading the different questions asked. There has only been one question by [ Mr. Juan Jose Camargo Lara ], and I shall read it next. I'd like -- [ Mr. Tamaro ] would like to know what is the dividend policy of the company, short, medium and long term. Mr. Vinolas, you have the floor, sir.

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 -- 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, systems is [indiscernible] 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 upward 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 forecast. But if these were confirmed, we will 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 are no further questions. And there has just been one question by [ Mr. Camargo ], we will now proceed to the voting of the different points in the agenda. And I give the floor once again to the Secretary.

The agreement that are presented to the voting of the shareholders are the ones suggested by the Board to the -- to the AGM. So from that point of view, I would like to say that no shareholder has used his or her right, 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 agreement will be carried out according 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 express so through the remote attendance platform as being against or their abstention. The vote 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. All the votes, whose holders or representatives have abandoned the meeting before the voting, they have let the republic know that -- what their vote was through the remote attendance platform. The period for the issue of voting about the proposals in the points in the agenda will be summarized the moment the voting is done according to Article 22 of our AGM. I proceed greater agility to carry out a summarized reading of the agreement proposals presented to the AGM. Point number one 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 added 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 number two 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 number three 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 number four 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 number five 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 for applications that can be turned into new shares and to new company shares or all the values that can give ride directly -- directly to the subscription of shares by the company we've expressed attribution of [indiscernible] to exclude the ride to preferred subscription, leaving this for a nominal maximum amount as a whole of 20% of the share capital. Point number six. We present for the approval of the AGM, the authorization to the Board for the reduction of the call terms of the extraordinary AGM according to what you said in Article 515 of the capital law. Point number seven of the agenda. We present for the approval of the AGM, the relation of Mr. Juan Jose Brugera Clavero as a Board member of the company as another external one. And we present to -- for the approval of the AGM, the relation of Pedro Vinolas Serra as Executive CEO of the company. Point number eight of the agenda. We present for the approval of the AGM, the remuneration policy for Board members in 2027, 2028 and 2029. Point number 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 number 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 number 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 riding to the new company's name. Point number 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 riding to the company's new name. Point number 13 in the agenda. We present for the approval of the AGM, we give the right expression 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 agreement. 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 -- 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, point number four and five of the agenda, the demand for their approval reinforce 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 number six in the agenda demand for its approval, the favorable vote of at least 2/3 of the share capital with voting right. And next, we will inform the shareholders about the result of the voting that have been proposed, expressed by the Board based on the votes issued by the -- shared by the holders or representatives of shareholders. Each one of the shareholders can be the results projected in the screens. Point number one of the agenda. With regards to the approval of individual annual accounts approval and the management report, there's 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% ] of votes in favor. With regards to point number two, with regards to the application of the results. There has been a 99,98% of favorable votes. With regards to the distribution of dividend, there have been the 99,98% of favorable votes. Point number three. With regards to the social management, there has been a 97.56% of favorable votes. Point number four in the agenda. With regards to the share capital reduction through the amortization of treasury stock has obtained 99.98% of favorable votes. Point number 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 number six, about the authorization to reduce 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 number seven in the agenda. With regards to the relation 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 number eight, 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 number nine, 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, remunerations has obtained a 98.64% of favorable votes. Point number 11, with regards to the amendment of Article 1 of the AGM's rules has obtained 99.98% of favorable votes. And point number [ 11 ], 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 number 13, with regards to the delegation of [ part ] 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 -- with regards to votes against in white or abstentions, spread the 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 minute, the detailed information about the specific number of votes in favor, against, in white or abstentions that have been issued with us to each one of the points in the agenda. And the approved agreements and the results of the voting 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.