CTP N.V. ($CTPNV)

So good morning, everyone, from Prague. It's me here with the Q1 results for '26, which is good because we have seen an all-time record high leasing take-up of more than 762,000 square meter of new deals, around 445,000 square meter of that is new build, new deals and the rest is some renewals throughout the region, mostly for existing clients, long-term tenants as historically around 2/3 of all of what we lease, we lease to our existing clients. So those are logistics service providers, DSV, Raben and many others, but also we have been able to close in Q1 a number of deals in Germany, in Krefeld, which is one of our new projects in Germany, but also some renewals in Romania, for example, Valeo and Timișoara, we have done a deal with [indiscernible] in Bucharest. So all kind of different industries. But yes, very good. So a record high. We have never seen so much leasing as we have seen in Q1. And I think Q2 going to be a record again in terms of take-up, but let's see how far we get. This confirms a strong client base, it confirms right region. I think also confirms that with all of these events happening over the past weeks, months, decade, maybe, we've seen COVID, we've seen tariffs, we've seen wars. Often, our clients adjust their supply chain from just-in-time becomes just-in-case. They want to build inventory. They cannot rely on the Suez Canal being open all the time. So rather have a bit of extra goods on stock more in Europe for Europe is what we see, mostly Central Europe because labor cost, productivity is different here than in some of the Western European countries. And often means that our clients are growing their business and building inventory just to make sure that they can deliver if they need to, to make sure that they can sell and continue to run their business. All of this also means flexibility. Leasing or renting property is, therefore, also very much in demand and appreciated and gives more flexibility, is not that companies build properties, which they will use for the next 30 years. It's more like they want to maybe rent something for 5 years or 10 years or even short-term leases is what we do. And yes, short-term leases can be at a bit higher rent than long-term leases. Of course, us as well-established companies with feet on the ground here in Europe and Central Europe in particular, I think we benefit from that with the client base people on the ground with a network. We've been doing this for, well, more than 25 years. So we benefit from that. And yes, Europe cannot rely on others. We need to maybe reindustrialize as some people say, anyway, become more self-sufficient, do look after your energy business, technology, but also defense industry. And also for companies outside of Europe, also they come to Europe to be part of the European economy. And we've seen that many Asian companies come to Europe. Yes, we do a lot for them. And I think it's going to continue. And they also come to Europe under the in Europe for Europe idea. Some highlights on the operator and developer because I don't have to tell you that we collect rent because we always do that and occupancy has been around 93%, similar to what we have seen over the past 5 years since our IPO or since the listing in Amsterdam in 2021. Okay, operator. So far good, 14.7 million square meter of lettable area, which produces EUR 850 million of rental income. For next year, 2027, as you know, we target EUR 1 billion of rental income and that is still a realistic target. That's with regards to the operator. With regard to operator, I can also say maybe that we continue to invest money in those buildings, make sure that they remain in excellent condition. We do all kind of modernization, smart metering. Of course, we equip those buildings with LED. We did and do some roof repairs, all kind of other things to make sure that these buildings remain in a good condition. Often, these buildings are obviously part of a larger business park. Yes, it's just important, we believe, to continue to invest in those parks, not only the building, but also outside infrastructure, et cetera. For example, reminds me of a project in Brno, Moravian, south of Brno, which we started in 2001. And then we now recently built another exit from the motorway to improve the accessibility. That's what we do. We're also improving green areas and parking lot and some battery charges. So to make sure that these properties are up to date and fit for use and they've been built well back in the days. So yes, that's the operator. Developer, the stuff we like. 2 million square meter under construction throughout the portfolio, 11 countries. Not all of that will be complete this year. Some properties take a bit more time to complete. But once fully let, it will do another EUR 150 million rental income around that keep construction costs under control. Obviously, there's a bit of here and there discussion about construction prices, try to keep that under control. I think we can do something on rental growth as well. We have a large land bank which we like to develop. So we are working on design and permitting to make sure that the land bank is prepared for future projects at the same time. So the developer is not only building buildings, but it's also preparing for future developments, which often is, I think, probably the most demanding because you need to do a proper design and you need to get your permits. That is something which can take time. Once you're under construction, then you control that process and then you're okay to estimate your completion dates. Target is to remain at 10% yield on costs, do that, continue to do that. Lots of existing clients also, as I said, adjusting supply chain, adjusting strategy to the new reality, flexibility also being able to react to the changing market circumstances goes for our clients, but also goes for CTP. I mean, in times of change, there is opportunity. When all is steady, then it's easy. I think you can make a difference when it's a bit bumpy and more challenging. And this is something which we enjoy, which we like to make sure that now is the time to make a difference. So it's all hands on deck. It's the time of opportunity. And yes, altogether work for a better and stronger Europe for sure. Asia, yes, of course, we continue to look. We have teams on the ground in China. We have a team in the meantime in Vietnam to make sure that we understand the market. We talk to our existing clients on whether they would go to Vietnam with us and how that would look like. Many of our existing tenants have activities in Asia and many are in Vietnam already. We could have been part of that maybe, but we were not ready. And I think we are getting up to speed to be prepared and to see how we could extend our activities and also become active in Asia and Vietnam would be then the first market for us. I continue to go there. As you know, I'm typically involved in CTP when it's a start-up, when things start to go before we hand over to local country teams. So I do plan to continue my travels to Vietnam on a monthly basis approximately and try to spend a week in Vietnam. So, so far good. This here, I will hand over to my colleagues, and I'm happy to and ready and prepared to answer your questions. Thank you so much.

Turning to the financial highlights. The portfolio like-for-like rental growth came in at 4.6% for Q1 '26, accelerating from 4.2% in Q1 '25, driven by indexation and continued positive rent reversion capture. As Remon highlighted, we delivered a record quarter leasing activity of 762,000 square meter, up 83% and occupancy remained stable at 93%. The annualized rental income increased by 14% year-on-year to EUR 849 million, illustrating the strong cash flow generation of our portfolio. We remain well on track to achieve our annualized rental income of EUR 1 billion by '27. This cash flow will finance our future growth. Our company-specific adjusted EPRA earnings increased by 11% year-on-year to EUR 120 million. This translates into EUR 0.25 per share, an increase of 9% compared to Q1 '25, adjusting for capitalized interest. We remain on target to meet our full year '26 company-specific adjusted EPRA earnings per share guidance of EUR 1.01 to EUR 1.03. Now looking at the valuation results. For the Q1 and Q3 results, only the investment properties in the development are revalued. In Q1 '26, the revaluation amounted to EUR 164 million, driven by the construction and leasing progress, allowing us to capture the development profit on our pipeline. Of the project delivered in Q1 '26, we achieved a yield on cost of 10.4%. The total portfolio gross asset value now stands at EUR 18.9 billion, up 2.2% from full year '25. And the supportive demand drivers of our business are not just prevailing, but are becoming even more relevant given the current geopolitical environment, whether our European companies reshoring or global companies relocating manufacturing to Europe and in particular, to the Business Smart CEE region to more effectively manage our supply chain risk. And these changes bring opportunity and we are ready not only with the 2 million square meter of space under construction today, but as well with our 33 million square meter landbank. This enables us to capitalize on our high development yield on cost. We also continue to grow with our existing customers. 73% of the new leases signed in Q1 are with existing clients expanding with us. And our tenant retention rate was high at 95%. Of the space under construction today, over 80% is in or around our existing parks, where we continue to see strong demand, especially from those existing clients. Our EPRA NTA per share increased from EUR 8.58 at Q1 '25 to EUR 20.95 at Q1 '26, representing a strong year-on-year increase of 12.8%. We have now been 5 years listed at CTP. And in those 5 years, we have delivered an annual growth of 19% in terms of GLA and 22% in terms of the annualized rental income. But this is just the start of our self-financed development-led business, and it's supported by our standing portfolio. It's sustainable and growing income alongside market expansion opportunities. Looking forward, structural tenant demand drivers, including our medium-term double-digit annualized growth trajectory remain unchanged, as Richard will highlight to you now.

In Q1 2026, we have again demonstrated our strong access to debt capital markets and our continued focus on diversifying sources of liquidity, raising nearly EUR 800 million of new debt during the quarter. We seized a favorable market window early in January and issued EUR 500 million of green bonds with a 4.5 years maturity ahead of the geopolitical volatility that followed. The bond was very well received with an order book almost 9x oversubscribed and provided highly attractive funding at a spread of only 92 basis points, our first issuance below 100 basis points since 2021. Following our inaugural samurai loan from March last year, we also returned to the Asian markets with a new dual tranche 5-year syndicated loan, raising JPY 22.5 billion, equivalent to EUR 122.7 million at a margin of 115 basis points and USD 180 million and a margin of 135 basis points. With 15 Asian banks in the syndicate, we further broadened our pool of lenders and strengthened geographic diversification, both of which remain long-term strategic priorities for us. We also continue to actively manage our debt portfolio and repurchased EUR 216 million of our February 2030 bonds with a 4.75% coupon, generating material interest savings over the coming years, supporting our integrated business model, the developer, the growth engine, the operator. We will continue to proactively manage our debt portfolio and diversify funding sources in support of long-term value creation. Turning to the key debt metrics. Our interest coverage ratio remained stable at 2.5x, comfortably above covenant level. Our normalized net debt-to-EBITDA stood at 9.4x, broadly stable. And our loan-to-value stood at 46.4%, marginally above our 40% to 45% target range, primarily reflecting the landbank-led acquisition in Italy at the end of 2025. We believe this acquisition will be highly accretive over time. Importantly, the next stage of growth is built in and financed. To complete our 1.4 million to 1.7 million square meter pipeline in 2026, we do not require additional equity capital due to our sector-leading yield on cost of around 10%. Every euro we invest in our pipeline increases our ICR and decreases our net debt to EBITDA as leasing income comes on stream. That underpins our confidence that we can continue growing rental income at double-digit rates while strengthening the balance sheet. Looking through 2026 and beyond, CTP maintains a conservative debt maturity profile. We also repaid EUR 350 million of bonds maturing in January and our only remaining bond maturity in 2026 is EUR 275 million at the end of September. Looking further ahead, maturities remain limited over 2027 and 2028 with less than EUR 1.1 billion in total outstanding over those 2 years. Liquidity at the end of March stood at EUR 1.9 billion, comprising EUR 600 million of cash and our EUR 1.3 billion RCF. More than sufficient to meet our cash needs for the next 12 months. We continue to rebalance our capital structure towards unsecured funding currently at 71% with a medium-term goal of around 80%. Our average debt maturity is 4.8 years. 99.9% of our debt is hedged or fixed rate, and the weighted cost of our debt decreased to 3.2% in Q1, marginally below year-end 2025 due to our active liability management and refinancing activities. We do not expect a material increase in our average cost of debt in 2026. We remain confident in the outlook for CTP despite the volatile geopolitical backdrop. Operationally, the quarter was marked by record leasing activity, while rental levels remained resilient. We continue to see structural drivers such as rising disposable incomes, supply chain professionalization and in Europe for Europe production, supporting occupier demand across our markets. Our pipeline remains highly profitable and tenant-led with 2 million square meters under construction, bringing EUR 154 million of future rental income and over EUR 7 billion of development profit potential in our landbank. This provides significant embedded growth well beyond the current year. More broadly, we remain firmly on track towards EUR 1 billion of annualized rental income by 2027, supported by development completions and reversionary capture while continuing to progress towards our longer-term ambition of 30 million square meters of GLA. Thank you for your attention. We now welcome your questions.

[Operator Instructions] The first question today comes from Marios Pastou from Bernstein.

I've got 2 from my side. So firstly, you mentioned you're anticipating another good second quarter of leasing volumes. But maybe can you give some color on the negotiations and the pace of leasing in the current environment, which will then feed into your volumes maybe later in the year? Has anything changed on the ground?

Marios, thanks for your question. So if we look in terms of leasing, and Remon already said it also in the video, we see a good start of the second quarter. So that remains supportive. And that's really driven by -- if you take a step back and look to the long-term drivers of what is now really underlying those leasing activities, it goes back to that the current geopolitical volatility that we are seeing is actually only supporting demand from our tenants because they want to have security in their supply chain. So that's why also if we look to the second quarter, we see a good start, and we are positive on the outlook for the quarter, thanks to the current position where we are in, which we think is only good for Europe long term because Europe as a continent driven by those geopolitical movements has to become more self-sufficient. And if you then look to where most of that production, which will happen in Europe for Europe will take place, that remains consistently in what we call the Business Smart Central and Eastern European region. That hasn't changed materially. That has been in place over the last 5 years and that's why you also see the consistent growth in leasing that we are able to do. And that will play out through the second quarter. Of course, we need to deliver and we'll update you accordingly. But I think the first quarter should give you the confidence in what we are saying because we speak to our clients on a daily basis. We have people on the ground in all our parks, property managers, relationship managers who speak to the clients, who see how the clients are operating. They see that the space which the clients will need. And that is how we are so reactive and that's also why we are growing so much with our existing clients. And I think that's often a bit underestimated by the capital markets. But if you look if we do more than 70% consistently with our existing clients expanding with us, and you know we have a very broad base of existing clients, more than 1,500 across the portfolio, that drives an enormous amount of stable and consistent growth over the years, and that we expect to play out in the second quarter. So all is set up for that, and we'll try to deliver in line with also the guidance we have given for this year.

Okay. And then just on construction costs, I think that was a reference to it in the presentation, how protected are you from price increases across both your existing developments, but also on the future impacts or potential impacts on your development returns targets? So any color there would be appreciated.

Yes, sure. Yes. Thanks for the question. In regarding construction costs for this year, yes, I wouldn't really expect any significant impact on our pipeline for this year. You can't hedge everything forever into the future. So should there be a really long-term persistent increase in energy costs driving higher construction commodity prices that's going to flow through into our business. And we won't compromise on our targets. So that means that we will look to increase rents going forward. I think if you look at the backdrop today versus the last time you saw significant energy price increase, which was the start of 2022, the start of 2022, you had a lot of construction activity that was still ongoing, fueled by the 0 interest rate policy that have been going on for the last 15 years. You have a lot lower level of construction activity generally at the moment. So we would think construction cost inflation can remain relatively muted.

The next question comes from Frederic Renard of Kepler Cheuvreux.

A few questions on my end. Just to hear your thoughts on rental evidence. You mentioned that adjusted for the country mix, the rents are up 1% year-on-year, while admittedly, I guess, in your countries, inflation will be more closer to 2%. So can we conclude that the rental growth is slowing down? Or is it just due to the specific lease terms that were negotiated? First question.

Fred, indeed, you are correct. If you look to the leases that we signed, they were up 1%, but those are indeed not like-for-like. And that's why you also need to look at the like-for-like rental growth that we are showing. That's always the mix of those 2 figures. And the like-for-like rental growth, you see, of course, the indexation, but you also see the reversion capturing. And as we are the leases which are coming up to expiry, we see that we are able to capture that reversion. And that's ultimately, of course, the fundamental proof of the ERVs in our portfolio and the rental growth in our portfolio. If you look to the leases we signed in a specific half, they are indeed not like-for-like, so it depends. We have signed a bit more renewals this quarter as are prolongations, while a bit less if you look to the ratio actually, new leases. So that impacts a bit that figure. But overall, what we see is, and that's also what we said, I think at the full year, we continue to expect rental growth in line with inflation.

Okay. That's clear. Can you maybe just remind on that, quantify from the 4.6% like-for-like, how much was driven by reversion and how much by indexation?

Around 2.5% by indexation and the remaining is mostly recurring.

Okay. And then last question for me. I just wanted to have your view on the new start of project for Q1. So if I compute it correctly, it's around 140,000 square meter, which could be the second slowest new construction starting since early 2022. Is this just a timing issue? Or have you decided to slow things down regarding new construction?

It's more of a timing issue. Actually, the exact number is because we delivered 116,000 square meter in Q1. Our pipeline increased by roughly 50. So in total, the new start is actually around 170 to give the exact figure. And that depends a bit when we start projects. I think if you look to the pipeline we are having, we have now a bit over 2 million square meter under construction, which allows us to deliver that 1.4 million square meter to 1.7 million square meter that we expect for this year. So you need to look at, okay, what is the expected deliveries and what is the total pipeline. And then it's indeed timing in which quarter we start a project. And ultimately, typically, if we have a simple building, we can deliver in 9 months, 12 months. If it's a simple logistics building, if it's a more complicated building or more manufacturing or more extras, it can take longer. We also won 2 office buildings in Brno in our pipeline, which also take longer. So it's always a bit of mix of when do those projects start. And ultimately, yes, if you look to the pre-leasing, which is ultimately where we guide upon because as management, we are looking where do we want to start on a speculative basis and where do we want to have pre-letting in place. You see that the pre-letting made a nice jump in Q1 on the back of, of course, the strong leasing evidence that we showed. We have more pre-letting, as you know, in new locations like usual because that's in line with our strategy. While the pre-letting in our existing parks because if we have an existing park, 100,000, 200,000, 300,000 square meter with proven demand, where we, as I explained also in the call, grow mostly with those existing clients, we typically start with a bit lower pre-let because we have the proven evidence of leasing demand over there. So that remains consistent and that's what we are managing upon. So while there is the pre-let that we want to target for the locations. And there, I think you saw the good growth that we have been able to deliver. So when do the project start is more of a timing issue than anything else.

The next question comes from John Vuong of Kempen.

As you mentioned, Q1 has been a record quarter in terms of leasing. But could you comment on the split between leasing for new developments and expiring leases? And how does this split compare to previous years?

Yes, sure. And that's also what we highlighted in the press release, I think, already. If you look to the 762,000 square meter, around 320,000 square meter, 330,000 square meter is related to prolongations. So if you look to the amount of prolongations as part of the overall leasing, the percentage it's a bit higher. This year, we have a bit over 700,000 square meters of leases expiring. So with that, we are nearly at half of the expiries basically taken care of and some already for next year. Of course, it's not always exactly calendar year to calendar year. So we have taken care of a lot of the expiries upcoming, which I think is a good sign. So tenants, let's come back to what I said before, looking for the security in their supply chain. So willing to prolong their leases to make sure that they keep the space available, which is basically essential to, of course, run that business. And then the rest is for new leasing, either for some expansion of existing clients in existing parks or for future pipeline projects, some for '26 deliveries, some for '27 deliveries. If you want more details, I can give you a more detailed split offline. Happy to help if that is useful for your modeling. But in general, yes, a bit more prolongation this quarter than normally. And that's also what I said when answering to Fred, of course, impacting slightly that rental figure.

So on those prolongations, does that mean that the tenants have pulled forward the decision? Or is it also a bit of active management on your side?

A bit of both. Well look, we're always -- you never want to negotiate with the tenant in the last months or a couple of months of a lease. You want the certainty and the clarity as the landlord, but the tenant also needs the certainty and the clarity. That's what Maarten was saying. And if you look at what the tenants are doing with us, they're prolonging their stay with us in an existing park. And often, they're expanding either their operations under the existing roof or sometimes also adding a small amount of space. And that's the real strength of our City Park model that we're able to offer tenants the opportunity to grow and develop their business in the same location, which is a much more efficient and effective way for them to run their business.

Okay. That's clear. And just combining your comment on strong leasing activity in Q2 and the timing for construction starts. So would it be fair to assume that development starts over the next quarter should just come in higher than the 170,000 square meters in Q1?

I would assume our pipeline to remain roughly stable in Q2. So subject to the amount of deliveries, we will also start a similar amount of new projects. But as the portfolio grows over time, also the new starts will grow.

The next question is from Nadir Rahman of UBS.

Just one from me on -- I believe it is Slide 12 of your presentation from this morning. You give some figures on the rental terms across different countries and I've noticed quite a disparity for both Germany and Poland and also Romania. And I just wanted to ask what the drivers were for the change in rental turn across these markets. I think it was negative for Germany and positive for Poland year-on-year.

Yes. That really comes back to that the leases are not like-for-like. So if you look to Germany, last year, we signed some deals for new developments. This year, we basically only signed deals for the former DIR portfolio. So that's why you saw that last year, the leasing, we signed at slightly higher rent because we had new development in there. But this year, it's more the older product in DIR. So that's why you saw in Germany a slight decrease. Poland, you saw an increase indeed, that's driven by one tenant which had extras and which needed a big yard space. We published, I think, 2 weeks ago, it's the Windar. They produce windmills for the wind farms. So they have a larger extras and larger outdoor space. So if you then look on a per square meter basis, your rent screened higher. So it's really -- the leasing is reflective of the specific deals we are signing in the quarter. So that's why we always look at it as answered before, in combination with the like-for-like rental growth where you see it across the whole portfolio and that's why we are constructive, of course, on the back of the leasing demand that we continue to see the rental growth coming through in line with inflation.

The next question is from Steven Boumans of ABN AMRO ODDO BHF.

So I have 2. To start off, why did you remove the number of head of terms signed so that slide? And how many head of terms were signed up to March '26? That's the first one. And then the second, where was demand for leasing for new developments in Q1 coming from? So please break down the 435,000 square meters, let's say, by country, type of clients, type of assets and maybe what we can expect for the breakdown in the coming period?

Yes, sure. If I look at the demand for the new leases, we saw that pretty much across the board. And you need to be careful about looking at 1 quarter. If you look at the last 2 quarters, we've done in total over 1.5 million square meters of leasing. If we look at the slightly longer-term trend, what we see is an increase in demand from logistics companies and increased demand from wholesale and retail. And both of those reflect the fact that we are operating in markets with significantly faster-growing disposable incomes, growing middle classes with aspirations to improve there their quality of life and their willingness to spend money, that's attracting new entrants into retail spaces and driving increased retail sales across Central Europe. And you see that then flowing through into demand from logistics and retail and wholesale. Tenants, what we've seen less of over the last couple of years, and that comes and goes a little bit is automotive. But we've continued to see good demand from Asian tenants make up 12% of the portfolio. Now new leasing this quarter was a bit less than the 20% we've been running at in the last 2 years. That's partly to do with the high -- the good level of extensions and expansions with existing tenants that we had. So -- that's there. And look, regarding the [ hots ], we'll always add or take away one or the other bit of information. Going forward, we are very happy and comfortable with the development of leasing activity in Q1. And as Remon said in his presentation, we're very, very happy with the start in Q2.

Do you have the number of kind of terms?

It's just under 100. So similar to what we have seen in previous years. No fundamental change because otherwise, we would not sign ultimately more leases. They are linked together. A very large number of hot translates basically into lease agreements because if you sign a hot with the tenant, they agree on all the commercials. As most of our clients are existing clients, they are not surprised by the lease terms we are putting in the contract. It's mostly just a copy paste. So if you agree on the commercials, then you see a very high flow-through into the final lease agreements being signed.

The next question comes from Bart Gysens of Morgan Stanley.

I have 2 questions. My first question is, I think you said at the start of the presentation, there's more demand for shorter leases. Can you provide a bit more color on that? What portion of leases that we signed are now shorter? What does shorter mean? And are tenants willing to pay a premium for that flexibility? That will be my first question.

Yes. The short-term leases are actually mostly seasonal. They are not in our leasing figures, by the way, Bart. Just to be clear, the leasing we communicate are all leases above 1 year. which is very important. So there are sometimes short-term leases we do because we are an active operator. So if a tenant says, okay, we need short term, 3 months, 6 months more space, and then we move into a new building. That's the flexibility we have due to our parks. And that's also what drives, of course, the loyalty from our tenants and that those long-term relations because we are a partner for them, we help them to run that business. So we always will do some and that's seasonal and especially in those times when people are looking for that security in their supply chain, we can do some more, but those are not in our leasing figures. Those are on top. So I think it is very important.

Yes, that's clear.

If you look to the rental tone of those, yes, they are always slightly higher because ultimately, that's the flexibility we offer. That gives us a negotiation position. So for short-term leases, we also always target to sign above ERV. Those are very simple deals, no incentives, et cetera, just extra income for us and helping ultimately run the tenant that business.

No, no, that's clear. And are they in your occupancy? And what percentage of your occupancy do they represent?

They are in our occupancy. They are probably around 1%, 1.5%, but they are on a consistent basis.

Yes. Okay. Great. And then my other question, look, you've talked about this or other people have asked the question, right? We're now 4 months into the year and the start of the conflict kind of fell in the middle of that period, right? So we have 2 months pre conflict and 2 months of conflict in the Middle East. You're clearly highlighting how demand is strong and so on. But if we look across other industries, there is a delay in decision-making. Nevertheless, right, there is a fear about the impact on economic growth, maybe more in Asia than in Europe at the moment, but it's clearly in the post. So can you provide any color on kind of leasing volume, time to sign a lease, rental tone for kind of the first 2 months of the year compared to the second 2 months period of the year? Are you seeing any change there or not at all?

Not really. Honestly, at the moment, and if I look at what we're seeing from our tenants and what's being reported across the industry at the moment, no, we're not seeing a significant change in tenant behavior. So yes, so Q1 was -- like we said, was a record for us, which we're super, super happy with. And Q2 started well so far, touch wood, nothing to -- no change to tenant behavior. And I think that goes back a little bit to what Maarten was saying earlier. Yes, there's short-term volatility. Yes, there may be a little more short-term uncertainty created by that. But actually, this is just significantly reinforcing the mid- and long-term trends that are ongoing in terms of energy independence, military independence, manufacturing independence that every region needs in and for itself going forward. It's very clear we're moving -- we've moved out of a globalized world into a more multipolar world and that will mean that there need to be a lot more investment in Europe for Europe across multiple parts of the economy and that will continue to drive growth in the mid- to long term, accepting that there may be one of the other episode of short-term volatility. I think if you look at our tenants, half of our tenants are manufacturers. They are thinking on a 10-, 15-, 20-year horizon. And sometimes for some of them, volatility is a good opportunity to get a space or claim a position in a market or take a space for close to population where our workforce is around. So the volatility is not only a challenge, but it's also potentially and for those who have the financial strength and corporate balance sheets are in pretty good shape at the moment. It's also a great opportunity for them to take as well.

The next question is from Thomas Rothaeusler of Deutsche Bank.

I do have, I think, 2 questions. The first one is actually on your midterm growth plan. I mean you target the 30 million square meter GLA. But as I understand, you don't mention the concrete time line anymore. But previously, you basically said 2030, I think, as a target. Just wondering how to -- how we should interpret?

Yes, Thomas, we always said that we have the ambition to get to 30 million square meters by 2030, and we would still maintain that ambition. If we can get there by 2030, fantastic. If it takes us another year or 2 years further, we're still growing faster and further than anyone else in the time frame. So we will do our best to get there as quickly as possible. We have the capability to do that with the 33 million square meters of land that we have, 14.7 million of GLA and 2 million under construction, we can get there with what we already have secured. We know we don't need the capital to grow. We don't need equity to grow at 10% to 15% a year, which is what we've been doing for the last 28 years. Prior to the IPO, we never had access to equity and we were able to grow every year. The IPO allowed us to grow faster, but we can do that. But it will, to some extent, depend on the health of the markets that we're in and the tenant demand that we see. If the tenant demand continues over the 5, 6, 7 years, yes, then we'll get there.

Okay. Second question is on Hungary and the regime change over there. I mean, just wondering what are your thoughts on the potential impact on your business, if you can say?

I think if you look to politics, it's overestimated in terms of impact on the operations. Hungary has been a good in terms of leasing for us in the last 3 years. We have done record leasing almost in Hungary in those years. We don't expect that to change because ultimately, it comes back to how business-friendly is the government and ultimately, where do tenants want to invest, where do they see the workforce, where is the tax situation attractive, where are their clients located. That's ultimately driving the decision-making of our clients. And we have seen a lot of inflow from China and Hungary, for example, that will not change with the new government. That will continue. So the leasing in Hungary also, if you look to the first quarter was good. So ultimately, what will be helpful, of course, is more from a capital market perspective. Hungary might be a bit better on the map, especially if they also get, of course, more funds from Europe that will help them to bolster the balance sheet of the Hungarian state, give them subsidies to do roads and other infrastructure developments. So that's helpful for the business.

The next question is from Eleanor Frew of Barclays.

A couple of quick ones. So the pre-letting in new parks was slightly quarter-on-quarter. Is that on would be tenants changing their minds? Or is that more of an impact of greater spec development bringing that number down?

That's to do with starts during the quarter. So there's still a material amount of pre-letting in the new parks, but that's -- we wouldn't overread, over interpret that.

Great. And then has there been any change in incentives you've needed to offer to help achieve that high leasing volume? And would you say you're prioritizing price or occupancy at the moment?

We always -- there's always a balance, and it depends on where you are. Overall, not really seeing a change in the incentives. As we said earlier, a lot of the leasing is a good chunk was extensions. They are not really talking about incentives. So much for the new leasing, again, it's primarily driven by existing clients. So yes, you always -- we always want to lease for more. They always want to pay less. And the talent is always to come to a deal that works for both parties, which we've been able to do record levels in Q1.

Moving on to webinar questions. The first from Vivien Maquet of Degroof Petercam, who asks, could you comment on the Italian market and letting activity there?

Yes, sure. So we entered Italy in the end of last year, as you remember, in November of last year through a big landbank acquisition. We have been working hard in the meantime to build up the team. So we have now more than 10 people in Italy who are working on the leasing, on the development of -- that are under construction, but also on the predevelopment of some of the other land sites. So we are making good progress there. If you look to our -- what we said in '26, we expect to deliver close to 200,000 square meter. Most of that is under construction. It's pre-let, so good underway. The Italian market in general has seen good take-up in the first quarter. So now we are working for our pipeline for next year to secure also the leasing for the '27 pipeline. But in general, we are positive on the Italian market. That's why we entered and we see that playing out. And now also with the team being built up, we have the people on the ground working there on a daily basis. Remon and myself are frequently in Italy. Remon is always involved in the start-up of the market, like we said before. So continue to drive the business there, integrated within the CTP platform. We also have our existing clients that we have in other markets reaching out to us from -- we also have space for us in Italy. So that's good. And that also is how we grow. We grow tenant led. So tenants asking us, can you also do something for us in market X or market Y. And that's also playing out here. So we are constructive on our Italian market entry and on track.

The next webcast question is from Wim Lewi of KBC Securities, who asks, is there any impact of the geopolitical situation on the Vietnam plant or time line?

Wim, ultimately, we are in Vietnam, like Remon said, we are making progress. We are looking to buy land. We are now looking at also the design and permitting of buildings, also speaking to clients. So we are in that stage. We hope to be able to execute on that during the course of this year. We also have now teams on the ground in Vietnam. The geopolitical movement that you are seeing are across the world with more local production. And that is the role that Vietnam plays for Southeast Asia. So also in Vietnam, if you look to -- and each time when we drive around there, you see new plants being built, new logistics centers being created as ultimately, economic growth is strong, double digit the target in many of the areas. So a solid economic backdrop. Of course, we need to see how long the current geopolitical movement will play out and how this affects different regions. But for now, what we see also in Vietnam is a continuation of operations and a continuation of Vietnam benefiting from nearshoring similar to what we see here in the Central and Eastern European region. But of course, we are also careful because it's a new market, especially in geopolitical times, there might be willing sellers. So it's good to have cash in the pocket, so you can act quickly when you want. We are not in a rush. We want to carefully understand the market, and that's why we are spending time there and trying to educate ourselves and building the team. So we have a full setup when we make the decision to kick off.

We have no further questions at this time. So I'd like to hand back to the management team for any final remarks.

No, we'd just like to thank everyone very much for their attention and their questions and wish you all a good day. Thank you very much.