Custodian Property Income REIT plc (CREI) Earnings Call Transcript & Summary

Good morning, and welcome to the Custodian Property Income REIT plc Investor Presentation. [Operator Instructions] Before we begin, I would like to submit the following poll. And I would now like to hand you over to Managing Director, Richard Shepherd-Cross. Good morning to you, sir.

Good morning, and good morning, everyone. Thank you for joining me on this Friday, the 13th. Lucky for some, I hope. Lucky for Custodian Property Income REIT as we see our share price has moved on again this morning following a trend that has been running for a little while now. But into the presentation, for those of you who have heard me speak before, you'll hear a pretty familiar refrain because we see real opportunity in the market at the moment. And we think that Custodian Property Income REIT, which is aiming to be the REIT of choice for private and institutional investors seeking high and stable dividends from well-diversified U.K. real estate is very well placed to take advantage of that opportunity. We have seen now valuations in recovery for a full 12 months, in fact, 5 quarters of valuation recovery. Following a sharp decline in values in 2022 when interest rates started to rise very steeply, we have seen confidence come back to the market. And that confidence was starting to really show itself at the start of last year as we move through the year, we started from the summer and in the run-up to the budget to see investors really sitting on their hands in fear of what might have come from the budget. I'm happy to say that the budget didn't bite very hard on commercial property. And really, the only impact that we saw was a change in the proposals of business rates. But in the round, it's not going to make a significant difference to real estate investment. So with the budget behind us, we're starting to see a more positive forecast. And I think that's showing very clearly in the movement in share price since the end of November. We're seeing positive rental growth forecasts, and we'll look at that in a little bit more detail as we go in. I think we will remain in an inflationary environment, not least because the government need to inflate their way out of the current debt position. So if we are going to see inflation running slightly above target, then it's good to be invested in real assets. Real estate is -- has always been a good hedge against inflation, and that's because we have rental growth. And I think that as money comes out of bond markets, of course, less good in an inflationary environment, we will see people committing to listed real estate. But rental growth is the big story. And it's really Nevada, that's what you should be looking for in a real estate investment. We saw 2.5% rental growth last year with most of the -- or the strongest rental growth being shown in industrial. So industrial and logistics and also in retail, particularly in out-of-town retail parks, the big format DIY stores, discounters, food stores, that's where we've seen the growth. And right now, the demand-supply imbalance is keeping the pressure on rents to grow, limited supply of new property and reasonable demand from tenants. But what that means for Custodian Property Income REIT is that we have a reversionary potential. What do I mean by that? What I mean is the difference between the rent we're collecting today and the estimated rental value of the portfolio, and that's running at 14%. So that's what we're shooting at. Every time we have a lease renewal, every time we have a rent review, we have the potential to increase rent. There is also the opportunity now to lock in to a relatively high dividend yield. Now at the time of preparing these slides, our average share price over the prior month had been 85p. That would have given you a dividend yield of 7%. As at today, share price 89p, but that's still a 6.75% dividend yield. And I think this opportunity is on the move. So locking in now to secure that high dividend yield is the best time to get invested. So if we're just looking back over the last 6 years because we have had some volatility, and that's what this chart is showing you, the gray line is the total return from commercial property over those 6 years. And you can see that returns dipped in the pandemic, then had this extraordinary recovery, probably far too much of a recovery with retrospect, I think we can say that. And then as interest rates rose, we saw values fall. But I think what is very telling is the very consistent income return that comes from real estate. You can see that in the light blue bars in the chart. I think perhaps what has been less understood is that total return has been positive all the way through 2024 and 2025. We've been talking about a recovery now for well over 12 months. And I think that message is starting to resonate with shareholders, and we're seeing it really across listed real estate, but we're seeing particularly in Custodian Property Income REIT, a pickup in share price of late. And then if we look back over the full 12 months, so the reporting period, we've just announced our results yesterday for the period to the 31st of December. This is looking at the full 12 months of 2025. And it looks at Custodians' share price total return which was 19% for the year and the FTSE EPRA REIT Index, so that is all listed real estate also showing positive total return of 14%. And I think that it is reasonable to expect that we could see double-digit returns over the next 12 months. If you can lock in a dividend yield of somewhere between 6.75% and 7% based on current share prices, you only need a 3% to 4% recovery in share price to see double-digit yields -- double-digit total returns for the year in prospect. And I think that is a realistic scenario. I said we would look at forecast for rents. And this is the Investment Property Forum's consensus forecast. Investment Property Forum is made up of many market participants from investors, institutions, brokers, banks, and they all contribute to a forecast for income return, capital return and thereby, total return. And what you'll see for '26, '27, 8 and 9, these next 4 years, an average 8% total return is forecast from direct real estate. So that capital growth largely driven by rental growth, obviously, as rents rise, if yields stay the same, then capital values go up, that's good growth. That's the growth you want. We don't really need to see growth from yield compression because yields can compress and they can expand again, leaving you back where you started. But capital growth based on the underlying rental value growth is locked in long-term growth. And then on the right-hand side, we've just broken out the total return forecast sector by sector within commercial property. And you can see that all of commercial property is forecast to show positive total returns. Shopping centers, which we don't own in Custodian are perhaps the surprise leader, but that's really telling a story of quite how far values fell for shopping centers through sort of 2021, '22. But retail warehousing and industrial, which make up the larger part of our portfolio, as we'll see in a little while, showing very strong positive total returns. Now there are -- I've said that the market has caught on to the recovery that we've been talking about now for 12 months or so. But probably as long ago as 2 years, we had seen 2 groups of investors forecasting the opportunity in real estate and increasing investment in the sector. One of those groups of investors was retail investors investing through the typical investment platforms, Hargreaves Lansdown, AJ Bell and Interactive Investor. And what this chart is showing is that the increase in shareholders from those retail platforms in Custodian Property Income REIT over the last 5 years. And you can see that from really the beginning of 2024, a very strong increase in retail investors identifying the opportunity to lock in to high dividend yields in a recovering sector. And I think that, that was very wise investing, and they have enjoyed some good returns. But the party isn't over. There is still rental growth and further recovery to come. The second group of investors have been either those who are already in the sector. So the -- some of the larger Real Estate investment trusts have consolidated smaller investment trusts, so seeing the opportunity for these undervalued trusts and also private equity who have taken companies private. What has been interesting is that through this period, the average discount to the net asset value versus the share price, the share price discount to net asset value has been averaging around 30%, yet all these transactions have taken place at an average discount of 10%. So those that could see the opportunity and could see the recovery coming, felt that a 10% discount to net asset value was still good value, yet the market was trading on a 30% discount. And that's a real disconnect. And I think that's a disconnect that will close. And as it closes, of course, share prices pick up, and that is very positive for returns. So then looking in more detail at Custodian Property Income REIT, having set the scene and identified the opportunity and I think demonstrated that, that opportunity is already delivering. How is Custodian Property Income REIT going to benefit from that opportunity? Well, what we try and do with custodian is to provide access to diversified regional U.K. real estate, but in an institutional grade package to access those bits of the market that most institutional investors don't invest in. And they don't invest in them simply because they find the lot size is just a bit too small to make a difference in their very large portfolios. We see the world quite differently. We think there are enormous opportunities to find good quality, well-let properties in fine locations that are being overlooked by institutional investors that allow us to acquire them and deliver higher income returns on the back of that. We've got over 300 tenancies and 175 properties. And that is producing earnings that fully cover our dividends of 6p per share. And that based on the numbers at the time of going to print, 7% dividend yield, 6.75% today. And that reversionary potential that I talked about, we will look at in a little bit more detail in a couple of slides' time. If we really get under the skin, and this is the bit that, of course, interests me on a day-to-day basis and my team that manage the portfolio, there is good news across all sectors of our portfolio. Net asset value total return for the quarter was 2.4%, 12% for the year. And I think that is a very good indicator of the health of the portfolio that the underlying values are rising based on increased rents and as you can see, the annual increase in our rent roll as distinct from the rental growth that we talked about before, which was 2.4% across -- on a sort of like-for-like basis. But of course, the portfolio is changing a bit. So the total rent roll rose by 4.3% and our expected estimated rental value rose by 3.4%. So really positive numbers. Lots of new lettings, most of those done ahead of our estimated rental value. That's our ERV and new lease extensions agreed, what we call a lease regear and those, again, showing an uplift in rent of 6% versus the passing rent. This 14% reversionary potential that we talk about, you can see that in playing numbers there. The passing rent today, GBP 45.8 million, the estimated rental value. If we were to relet everything today at current rental values, GBP 51.9 million. Why haven't we done that? Well, because lease contracts allow for a rent review typically every 5 years. So we have properties where we are expecting the rent to go up, but we haven't yet had a rent review. Where we have had rent reviews and 2 last year -- sorry, in the last quarter showed a 7% increase, and we had 10 other rent reviews where the rents were linked to RPI and also showed a positive increase. So rental growth, I said this is what it's all about, and that's what this chart is demonstrating. The blue line in the chart is that reversionary potential. And you can see how rental growth really started to build into the portfolio through 2019 and into 2020 and is currently sitting at around 14%. And then the blue shading underneath is the rent roll of the portfolio. You can see as we've had rent reviews and lease renewals, we've picked up that reversionary potential, so the underlying rent roll has grown to GBP 45.8 million it is today. On the right-hand side, some key stats. Dividend, 6p per share. That's grown from 2023 and '24. Positive net asset value total return, quarterly rental growth, positive and a loan-to-value of 26.4%, which is made up of 2 tranches of fixed rate debt fixed until 2028 and 2032 and a revolving credit facility, which has seen that variable rate of debt, which is SONIA denominated come right down from almost 7% to 5.5% today. That, of course, creates earnings headroom. The portfolio, as I said, focused on those areas that we see the most rental growth, so industrial and retail warehousing that is where most of our income comes from, 65% of our income from those 2 sectors. But as we saw in the earlier charts, positive total return forecast in all sectors, and we are broadly diversified and well positioned to pick up that growth. I think it's worth just pausing for a moment and looking at some of these pictures because this gives you an idea of what we mean by regionally diverse U.K. real estate that is below institutional lot sizes. These are still mainstream commercial properties let very often to household name tenants and in strong commercial locations. This chart just explains why we fish in the pond that is not swimming by the institutional sharks. Typical institutional investors like lot sizes of over GBP 10 million, very often over GBP 15 million or GBP 20 million. So what we have tracked over the 12 years that Custodian REIT has been trading is the difference between the initial yield of properties that have sold in the market with a lot size of over GBP 10 million versus under GBP 10 million. So that's the light blue and the dark blue lines. This is whole market data. And as you can see, it goes back to 2000. And what it shows you is that until 2009, there was a very narrow margin between small and large lot sizes. That's because at the time, investors of all styles, institutional, private investors alike were not distinguishing by lot size, but simply by quality of property, quality of tenant and quality of location. But from 2010 onwards, there has been a real move amongst institutional investors, particularly to increase their average lot sizes. And in doing that, they have sold many of their smaller properties, increasing supply, and they have pursued a relatively small supply of larger primary assets. So what we are seeing in 2010 is not a change in the risk profile of smaller properties, but just a change in the underlying supply and demand dynamics that were driving market pricing. And we were able to capitalize on that. So without increasing risk because we don't think there's been a change in the risk profile of those smaller assets, we were able to buy high-yielding properties. And at some points through the last 10, 12 years, that margin has been as wide as 140 basis points. It's around 100 basis points today. And we think that means we can deliver a higher income return without substantially adding to the risk of the portfolio. And when we're talking about risk, one of the best mitigants of risk is diversification, both by sector. And as you've seen, ours is a diversified portfolio across the main property sectors, but also by property location. And you can see here the very broad spread of the portfolio, focused on the main commercial centers in the U.K. and spread, as you can see, but perhaps even more striking is this chart, which looks at the diversification of our income. And what the chart is showing is the amount of income paid by any single tenant in the portfolio. And even amongst our largest tenants, and we've split them out on the left, there is further diversification. So we have 8 properties left to InPost, 5 properties let to Wickes. So it means we have no single property in the portfolio left to any one tenant that represents more than 1.8% of the rent roll. And in terms of the quality of our income, you can see some of our largest tenants on the right of that slide. But just to consider them by reference to an Experian credit rating, 85% of our tenants are considered lower-than-average risk. So just to summarize, we have lower-than-average risk tenants, very broadly diversified income through all the main property sectors of the U.K. and diversified by location as well. And all of that supporting a higher-than-market average property yield, which supports earnings to pay a higher-than-market average dividend. And that is, in a nutshell, the Custodian Property Income REIT strategy. And I think one that is very well set to take advantage of the recovering market that we're seeing at the moment. One of the challenges that is regularly laid at the door of a fund manager is that shareholders want to see growth. And when shares are trading at a discount to net asset value, that growth is difficult to achieve, but not impossible. And we have been able to achieve growth through the acquisition of a family property company, and we are looking at others currently, not for cash, but by issuing new shares. And these acquisitions are fantastic for our shareholders because we were able to grow at a time when we think property has real upside potential. We've been able to grow by issuing shares rather than by increasing debt. Those shares are issued at net asset value, so there is no dilution for existing shareholders. But for the family property company, it is a really compelling proposition. Very often family property companies have succession issues by selling to us, we are then managing the portfolio. They can then -- with the liquidity that they have in shares rather than in real estate, they are able to pass those shares down through the generations. And of course, they're passing on a fully managed investment managed by us. So they're not passing on the responsibility for managing the property portfolio to the next generation. It provides the next generation with a very diversified and secure income stream managed by us, but it also is extremely tax efficient because it is a corporate transaction, us buying the property company, as I said, for shares, there is no stamp duty land tax. The chargeable gain within the company. And as you can imagine, many of these companies have held properties for years, if not decades, and they are pregnant with a significant capital gain. That chargeable gain in the company gets extinguished when they join our REIT group because as a real estate investment trust, we don't pay corporation tax on chargeable gains. We don't pay corporation tax at all. So a very tax-efficient structure, which means that the gross value of the family's shareholding in their family company transfers into shares in Custodian Property Income REIT. And certainly, in the example of the transaction we completed was the acquisition of Merlin properties, GBP 22 million portfolio. The family saw an increased dividend because they were no longer suffering the administrative costs and the corporation tax of running their own company, and we were able to access this great portfolio. We think there are tens of dozens of opportunities like this in the market with families with the succession issues or simply wanting to rationalize the way they manage their portfolios and we are actively pursuing a number at the moment. So a real opportunity for growth. We've been running a share buyback scheme through the last 6 months since August and really to deal with volatility at the edges. We don't see this as a significant driver of share price recovery. It just deals with stubborn sellers who need clearing out. Through the 6-month period, we bought back 5.7 million shares for an aggregate consideration of GBP 4.5 million. So that was canceling the dividend, which was strongly accretive to existing shareholders. And we'd expect to do a little bit more of that around the edges as and when it's necessary. So in conclusion, there is a great opportunity to capitalize on the discount, although that discount is narrowing, so at now. Secure that high dividend yield, 6.75% dividend yield is still very attractive, particularly in a company that is paying that dividend out of its earnings and those earnings are supported by rental growth. You get a very diverse portfolio, stable income returns and other retail investors and private equity have shown the way that there is a recovery well underway. So that concludes the slides. And we're now just going to look at some of the questions that you've asked. I hope I will be able to answer them all. If indeed, I can't, we will try and answer them separately if it's not appropriate to answer them right now.

So the first question is, when do you think you will be able to start increasing the dividend? Well, we have increased the dividend from 5.5p in 2023 to 5.8p in 2024 to 6p last year. And we are absolutely focused on increasing the dividend when we have sufficient earnings headroom to do so. So I think we've demonstrated in the past that where we have been able to, we have increased the dividend, and it remains a clear focus for the Board. The next question, how many Merlin style family office acquisitions are you actively progressing? And what scale of NAV growth could this channel deliver? Well, I can't answer that one directly other than to say we are looking at other opportunities and watch this space. We will certainly announce if we are successful. They are, as you might imagine, complex transactions. It requires a fair degree of -- a significant degree of buy-in from the family. But I think there is a huge opportunity for growth and we are doing our best to maximize that opportunity at the moment. But probably, as you would expect, I can't answer that directly, but watch this space. How well insulated do you believe Custodian Property Income REIT is or is not from wider global equity prices and geopolitics? Well, look, I think we saw last year just with the sort of fear of the impact of the budget that no one is immune from the wider economic environment. As far as wider geopolitics go, I would have thought -- I would say this, wouldn't I, but I would have thought that in a troubled world, that investing in U.K. real estate with contractual income because, of course, we have leases that run out for at least 5 years on average across the portfolio was a pretty good place to hide out from the volatility elsewhere in the world. So we -- but we don't live in a bubble. We are, of course, affected, but I think it would be a good place to hide out, particularly owning real assets. I mean, look what's happened to gold prices because of fear of geopolitics. People are hanging on to those real assets. In real estate, it might not be gold, but it is a real asset. It is a good hedge against inflation, and it does produce income that is contractually secure. Another question. With the 2 rent reviews of 7%, why were these so far below the reversionary potential of 14%? Well, we've got 175 properties. Some of them are showing 7%. Some of the -- we settled rent reviews last quarter with a 30% to 40% increase. So 14% is the average, but a 7% increase isn't to be sniffed at, but that's the answer. It's just the variety of property that we have. So next question. You are very much the face of Custodian Property Income REIT. I can only apologize for that. What does the team behind you look like? And how is it structured? Well, I have a very strong team behind me, Assistant Fund Manager, Alex Nicks. We are -- there are 7 surveyors in the team that manage the portfolio and a finance team with Ed Moore as Finance Director. We are absolutely a team. This is a team game, but I'm the one that makes all the noise and apologize for the face. But we've got a strong team. So this is -- we are more than a one-trick pony, I hope. So next question. NRI barely changed in the quarter despite good asset management activity. This suggests there were tenant losses from breaks expiries, but these aren't shown. I think if you just look at a single quarter and pull out individual numbers, you will always be able to find this sort of variability. But over the long term, and real estate is a long-term investment, that growth is going to come through. Tenants come and go. There's no escaping that. Tenants will leave at lease expiry sometimes. I'm happy to say, for the most part, they remain. But when tenants leave, there are costs associated with refurbishing and reletting buildings. But one of the great strengths of our portfolio is because we have so many tenants and so many properties, each little change makes only a small impact. We have no significant tenants that could leave or go into liquidation that could really hurt the overall cash flow. So I think that's probably the answer to that question. So the next question, can you give some context on the net asset value? Does it feel relatively stale overdue an uplift, especially given the discount is the lowest it's been for 3 years? Okay. Do I understand the question? Can I give some context on the net asset value? I'm going to answer the question slightly differently, and apologies if it doesn't answer the question that you've asked. The net asset value is our value estimate of what all the properties are worth individually added together, less the cost of debt in its simplest terms. And our valuers are pretty good at what they do. But what we know is when we sell properties, we often sell them for more than the valuation. In fact, almost always, we sell them for more than the valuation, one of the reasons we sell them. So the net asset value, I don't think is a very good measure of worth and I'll explain what I mean because I think this is really important. As a sector, listed real estate is constantly measured the health of listed real estate based on how big a premium or discount the share price is to the net asset value of the portfolio. I don't think that, that's a very good measure of worth because the net asset value is what the properties could hypothetically have been sold for 3 months ago because you have to base it on deals that have been done. And I don't think that's how shareholders look at our share price. I think the question they ask is what's the dividend yield? What is the prospect for that dividend to grow? And just like any other trading business, the most important metric is earnings, earnings and earnings growth. And so I think net asset value is stale. I think it's the wrong metric to consider. It is only interesting if you're going to sell the entire portfolio. But even then, as we've demonstrated with all those corporate transactions that I had on the screen earlier, most of those deals were done at a 10% discount to net asset value. So even if net asset value is the best measure of worth, which I don't agree with, when you really need it, it's sold at a 10% discount. So I would recommend to all shareholders to focus on earnings and dividends rather than on net asset value as a measure of worth. So yes, the discount is narrowing, but why is it narrowing? It's narrowing because the dividend yield was too generous. 2 years ago, it was 8%. It's more recently been 7%. As of today, it's 6.75% because that is still a very generous yield in a world where interest rates are falling, and it's difficult to find that level of income return elsewhere. Sorry if I didn't answer the question fully, but that's my best guess at it. Are you confident in remaining independent given the M&A, which is still continuing with Picton effectively up for sale and there are fewer listed peers. Yes, Picton are up for sale. It was reported this week that London Metric are very interested in Picton, which is perhaps no surprise for those who watch the market. I think that we are reasonably confident of remaining independent. We sale at a slightly different cost to many of our peers, as I've said from our property strategy, our shareholder register, which is much more strongly retail than many of our peers who have large institutional holders. And I think we are offering something a little bit different with our corporate acquisition activity by family property companies. It's a very neat solution for them. And I think as long as we can remain relevant to our shareholders, and I think that by paying that higher dividend yield, we really are, then I think there's every chance that we might remain independent. And also, I think that the world is changing a little bit. Property has been, as much as I might not like to acknowledge it, has been out of fashion amongst investors. And that's in part because in a period of time when interest rates were virtually 0, there were a lot of what I would call tourists investing in real estate. They didn't want to invest in real estate, particularly, but they were seeking income in a 0 interest rate environment, and they invested in real estate and in infrastructure. And particularly, I think in infrastructure, there was an oversupply. And you have seen the corporate activity that's been happening in infrastructure funds to deal with that. But also potentially, there was an oversupply in listed real estate as well, which is why some former listed companies have been taken private and others have consolidated. But I think that as we start to see traditional real estate investors reallocating to real estate, we will find that far from an oversupply, we will have an undersupply of listed real estate. So we might, therefore, see less consolidation and maybe even some new listings, wouldn't that be nice? Are you looking to keep growing organically? Or could there be corporate activity? And if so, would there be an appeal given the discount has come in so much? Well, I've sort of touched on that already. And look, we have -- we've made no bones about the fact that we are interested in corporate activity. It was a few years ago that we acquired a listed peer Drum Property Income REIT. For those of you who have followed us for a while, we had a very good tilt at ABRDN Property Investment Trust. I think it's a great shame that, that deal didn't happen, not least for the shareholders in ABRDN Property Investment Trust. And we have most recently bought in the private markets, Merlin Properties. And as I think I've hinted at, that is something we're still looking at. So I think we'll continue to see more of that. So a question about family-based property companies. This acquisition seems to be very good. Do you have a size that you'd wish to see Custodian Property Income REIT scale up to? I wonder if at GBP 1 billion versus GBP 600 million now, whether there would be more interest from institutional funds. Well, there could well be. I think the property should be. We have always felt that Custodian Property Income REIT needs to be north of GBP 1 billion because we think that people need to enjoy the returns that all our shareholders are enjoying. So we're still very focused on growth. I think there's lots of good things come from growth, greater liquidity, further diversification. Yes, quite probably new shareholders to the register. But our first and foremost ambition is to deliver for existing shareholders. So we're not just going to grow for growth's sake. If we can't see the upside in earnings to support growth in dividends, then we won't be growing. But I don't forecast that that's the case. I think those growth opportunities will deliver the earnings opportunities that I've just touched on. There's a question I confess I don't understand. I'll read it out and see if reading it out helps me out. Are there any risks or rewards of REIT mergers in the near future? And are there any intentions here for custodian? Probably having read it out, I think I've answered that, so I'm going to move on, but thank you for asking the question. It's good that the discount has been closing. The question asks, but one of your competitors, AEW, consistently trades at around net asset value. Why do you think there's a difference? Well, here it is. This is the question I perhaps have already answered. Because net asset value is not the right measure of worth, you can see variations in discounts and premiums to net asset value. But if you were to compare AEW and Custodian Property Income REIT on an earnings yield basis or a dividend yield basis, you'll find that we're almost exactly the same price. We're both priced off somewhere between 6.75% and 7% dividend yield. And I think that demonstrates that this is how investors are looking at worth, not at net asset value. So that's the difference. So a question, so if net asset value is not a great measure of worth, do you think the shares could rise to a significant premium to net asset value? And would you be comfortable with this? I'd be absolutely fine with this. We traded at a premium for 7 years. And in many ways, so what? What was -- we never were priced off a keener dividend yield than 5% dividend yield, and that threw off a premium at the time. So we've always been in that range of 5% to 8% dividend yield. 8% was right in the depth of COVID pandemic, pretty miserable times, 5% dividend yield was sort of 2017, '18 when interest rates were 0, everyone thought they would be forever. And people are feeling reasonably cheaper about the economy. So I'm not -- I mean, I think I probably stated my case on net asset value as a measure of work. That concludes the questions. Thank you for all the questions. I hope that has brought a bit more color to the presentation. And I think just to close, there is a real opportunity at the moment. The greater opportunity was 2 years ago. I don't blame anyone for not being bold enough to invest then. It still felt a fairly uncertain world. But the opportunity now lock into that income return, it's income that delivers 70% to 80% of total return from real estate. So securing the highest dividend yield you can with growth in an inflationary environment now feels like a great time to invest. Thank you very much.

Fantastic, Richard. Thank you very much indeed for updating investors today. Could I please ask investors not to close the session as you will now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good morning to you all.