Unibail-Rodamco-Westfield SE

Good morning and welcome to Unibail Rodamco Westfield's Food Year Results presentation. 2024 was a year of strong operating performance across all activities. Our shopping centers delivered increased footfall and higher tenant sales. Group occupancy is now at its highest level since 2017 thanks to strong leasing activity with a focus on high-value long-term deals. Convention and exhibition delivered record results as our V-Paris venues hosted events and operational hubs for the Paris Olympic and Paralympics Games. OPC's NRI grew by double digits thanks to the full leasing of the Trinity Tower and the successful delivery of Lightwell, both in Paris La Défense. And at Westfield Rise, our retail media agency, we achieved the 2024 net margin target of 75 million euros set in 2022. Since the start of 2024, we have successfully completed or secured 1.6 billion euros of disposals at book value, delivering on the discussions that we referenced at the height here. And we have been active on the investment front, acquiring €0.6 billion of GB partner stakes at attractive terms. We also face the challenges related to our Westfield Hamburg-Ubersee Quartier project, and I am pleased to say it will open on April 8th. I will provide an update on this later in this presentation. As a result of this strong performance, we achieved full-year earnings above guidance and are proposing a 40% increase in our cash distribution to €3.50 per share. This strong performance is reflected in our financial KPIs. Group like for like NRI is up 6.7% year-on-year, demonstrating our excellent operations. Our cost of debt remains low at 2% thanks to our aging program and access to financing at attractive conditions. Our loan to value ratio benefited from our active daily rating program and is at its lowest level since 2019 with another 100 basis point reduction in 2024. As a result, our net debt to EBITDA ratio stands at 8.7 times, down from 9.3 times at the end of 2023. Now let's take a closer look at the excellent operational performance of our shopping centers. Over the past four years, we have been proactive in our leasing strategy, upgrading our retail offer and upsizing our key retailers. This curated offer continued to drive footfall in 2024, which was up 2.6% from 2023, well ahead of the market. This has resulted in tenant sales growing by 4.5%, ahead of blended national sales indices and outperforming core inflation. In 2024, the strong appeal of our assets resulted in a high volume of GLA and MGR signed and also achieved a very healthy MGR uplift of 6.5% on top of indexation. For long-term deals, which represented 80% of our total leasing activity, we achieved an impressive uplift of 11.1%. Going forward, our continued sales performance, the appeal of our assets, and the commercial tension we have created will allow us to capture additional reversionary potential. Moving now to WasteFeedWise. Our work to consistently enhance the quality of our assets and create an exceptional customer journey attracts a massive and highly engaged audience that we are monetizing through our retail media agency. And I'm happy to say that we have achieved the 75 million euro net margin target set in 2022, delivering a 41% increase in Europe versus last year. This includes an 8% uptick in physical brand activations, which drive revenue and contribute to the dynamic customer experience at our centers. When we launched the agency, first for our industry, we highlighted the significant potential to increase average revenue per visit in line with players such as arenas and transportation networks. This figure is up 38% year on year and has more than doubled since 2021. We see continued significant growth potential and we'll share more details on our plans for Westfield Rise at our upcoming investor day. The retail real estate investment market continued to be challenging in 2024, with volumes down 12% in continental Europe and 13% in the US from what was already low activity in 2023. Against this backdrop, URW completed or secured an impressive €1.6 billion of disposals at book value. This was made up of non-core retail assets, minority stakes in two flagship centers, and two office deals. These transactions, mostly delivered in the second half of the year, demonstrate the group's focus and preparation, which enable us to execute at attractive values across asset classes and geographies, even in challenging market conditions. We also apply the same level of discipline and agility to our asset management. In 2024, we have invested €0.6 billion of stakes from GV Partners. In each case, we have done this at attractive terms. At Westfield Montgomery in Maryland and Saint-Houm-Ursinov in Warsaw, we acquired the full ownership of both assets from our GV partners as we see clear opportunities to increase revenues and create additional value through mixed-use densification and retail extensions. In December, we acquired an additional 39% of our URW Germany joint venture, which was executed in URW shares and takes our total ownership to almost 90%. This deal improved our pro forma loan-to-value, increased our cash position, and will allow us to accelerate the transformation of our portfolio in Germany. Going forward, we will continue to make similar investments where we see significant potential for value creation. Before I tackle Westfield Hamburg, let me update you on our 2024 pipeline deliveries. This includes our 29,000 square meter redevelopment of Westfield Knit in Paris La Défense that was 97% let at opening and has already seen a 29% increase in footfall. The successful conversion of a former department store box at Westfield Old Orchard in Chicago that is 95% let, including a flagship Zara store. and the delivery of Lightwell, our office redevelopment project in Paris la Défense, which is 80% late, with active discussions on the remaining space. These deliveries have achieved a 6% blended yield on cost for a blended appraiser's exit cap rate just over 5%. Our number one priority is the delivery of Westfinal Hamburg Iberia's equator. As I have said previously, the project's delays and cost overruns are totally unacceptable. We have now completed the independent investigation we launched in July, which covered a root cause analysis to identify the main drivers of the overruns and a systematic review of project processes, governance, and decision making. The findings presented to the supervisory board confirm what we shared with you at that time. At inception, the project and corporate development teams failed to fully understand its complexity. This led to incorrect and inadequate assumptions in terms of budget, timeline, and project setup. This resulted in the serious project mismanagement already reported, particularly in relation to insufficient design detail and construction strategy. On top of this, the investigation noted the significant impact to cost, procurement, and labor of the COVID-19 pandemic and the Ukraine war. The investigation also highlighted poor risk assessment throughout the project's lifespan and a lack of independent scrutiny. It did not uncover any evidence of fraudulent activity. The mistakes we made on this project cannot be repeated. In addition to the changes we already announced in executive leadership, oversight and construction management, we have conducted a thorough systematic review of all active projects. I can confirm that the issues faced are contained to this project. We have also taken significant steps to reshape our approach to development at the project and group level. We have reviewed and strengthened development oversight and increased the feasibility, technical and risk assessment requirements from the earlier stages of the Investment Committee approval process through to completion. We have reinforced project monitoring at corporate level with clear segregation of duties and increased financial controls that also now leverage more comprehensive technical KPIs. We are revising the company's internal charters to reinforce management board and supervisory board oversight. And finally, the group will not take direct construction risk for development projects and major works going forward. Looking towards delivery, we have made significant commissioning progress with the support of local authorities and are very excited for the retail opening of the project on April 8. The total investment cost now stands at 2.45 billion euros, an increase of 190 million, mainly due to additional construction costs and contingencies. On April 8th, we will bring to Hamburg a destination unlike anything the city has seen before. Our retailers are committed to Westfield Hamburg Übersee Quartier and share our ambition for its future. The project's residential buildings are open, with occupants currently moving in, and we have completed delivery of the cruise terminal to Hamburg Port Authority. Offices are 64% predate with active discussions on a large portion of the remaining GLA, with the first handover in Q2 2025 to Shell Germany. And the project's hotels will also begin handover in Q2. This slide shows how since 2021, URW has successfully navigated and overcome multiple challenges related to its operations, balance sheet and US exposure. At the end of 2020, COVID's impact to occupancy, rents and asset values seemed to have answered long asked questions about the long-term viability of retail real estate and the future of physical retail. These pressures, combined with our high level of debt, increase concerns about our balance sheet. Today, URW stands in a position of strength. Our operating performance has demonstrated the power and appeal of our assets, with physical retail thriving in flagship destinations, growing traffic and sales, and positive rent evolution. This has contributed to the stabilization of valuations seen in 2024. Throughout this challenging period, we have successfully maintained access to bond and credit markets at competitive conditions, ensuring URW's financial flexibility. Through the disposal of more than 6 billion euros in assets despite market conditions, we have successfully reduced our loan-to-value ratio by 400 basis points, reshaped our portfolio, and significantly strengthened our balance sheet. When it comes to the US, we have divested 17 non-core assets for 3.3 billion US dollars at 100%, at a time when the market was virtually closed. These deals represent over a quarter of what enclosed more transactions in the US over that time. Now, 12 out of our 15 U.S. shopping centers are A-rated, which represents 97% of our U.S. GMV, an unmatched collection of flagship destinations in some of the best markets in the country. We have also delivered strong operating performance with occupancy at record levels along with higher footfall sales and rents. And we have completely restructured our management platform in the country, cutting costs by over 50%. Over the past four years, we have reshaped our portfolio through disposals, made significant leveraging progress, and hence our operations, and transformed the group's risk profile. Having achieved this transformation, we have taken the strategic decision to retain our high-performing US flagship assets, which will deliver further growth and value creation. Our delivery engine is not yet complete. We have made significant progress and are on a strong trajectory. We will continue to execute through retained earnings, disciplined capital allocation, and non-core disposals. Now onto our Better Places Sustainability Plan. Thanks to our continued progress in 2024, we have achieved a 42% reduction in carbon emissions from Scopes 1, 2, and 3, and a 37% reduction in our energy intensity. We have exceeded our initial 2024 target for the launch of our Better Places certification, with 14 assets certified in Europe versus 10 planned. and we have expanded the Sustainable Retail Index to include the health and beauty category, achieving our 2024 target of 70% coverage of eligible revenues in Europe. I am pleased to announce as well that we have extended the SRI to the US, and globally, 86% of our covered MGR is already engaged in sustainability initiatives, with almost 53% being active, advanced, or leader. We are also engaging with older landlords to promote the adoption of the SRI as an industry standard. URW is increasingly recognized for its ESG leadership. Last week, we were named in the CDPA list for the 7th year in a row, and Corporate Knights, a leading sustainability research organization, announced during Davos that we moved from the 70th position to the 24th position in their Global 100 ranking. Now, let me hand it over to Fabrice to go into more detail on our strong financial performance before coming back to provide information on our proposed distribution and 2025 guidance.

Thank you Jean-Marie and good morning everyone. In 2024, we once again saw a strong operating dynamic. Tenant sales increased plus 4.5% compared to 2023, supported by a footfall increase of plus 2.6%. Leasing activity remained strong, up 4.8% in volume. And as Jean-Marie has already said, vacancy fell to the lowest level since 2017 before the acquisition of Westfield. And we saw a 14% increase in commercial partnership revenue driven by the continued success of Westfield Rise in Europe. 2024 was also a very successful year for our convention exhibition business, which benefited from the Paris Olympics and Paralympics. Lastly, we completed our secure disposals for a total net debt reduction of €1.6 billion, contributing to an improvement in our financial ratios. Recurring EPS reached €10.56 per share, up 4.1% compared to 2023. Adjusted recurring earnings, which include the impact of hybrid bonds, totaled 9.85 euros per share, a 2.4% increase on 2023. This is slightly above the guidance we provided a year ago, thanks to a stronger betting performance, better than anticipated cost of debt, and the timing of 2024 disposals, which more than offset the NRI effect of the delayed opening of Westfield Humboldt. we saw strong EBDA growth of plus 6.9% in total and 7% on a like-for-like basis. And this is an acceleration compared to the 5.8% growth achieved in H1. The increase in EREPs was mainly driven by shopping centers and offices' ROI performance, which contributed 86 cents to EREPs growth in 2024. CNU contributed 31 cents at group share, benefiting from strong commercial activity, favorable seasonality, and of course, the Paris Olympics. This was partly offset by the fuller impact of increased hybrid costs, accounting for minus 19 cents following the exchange offer completed in June 2023. Disposals completed in 2023 and 2024 had a minus 47 cents impact on NRI. This corresponds to 2 billion euros of sales completed in 2023 and 2024, although the impact of 2024 disposals on this year's EREPs was limited as they were mainly completed in H2. Financial and general expenses had a minus 7 cents contribution due to a slightly higher cost of debt, partly offset by a decrease in general expenses. Looking now more closely at URW's retail NRI performance. On the like for like basis, retail NRI increased by 5.8% year on year, including plus 2.1% from the accession at group level and plus 3% in continental Europe. The contribution from rent was plus 2.4% driven by our strong operating performance, the rental uplift in 2023 and 2024, as well as a reduction in vacancy, most significantly in the UK and in the US. We also had a positive contribution of just under 1% from variable income presented in the other category, driven by Westfield Rise revenues in Europe. This other category also includes lower service charges in the UK. We benefited from a positive doubtful debtors contribution of plus 0.7% thanks to higher collection rate and lower bankruptcies, which I will cover on the next slide. Sales-based rents were done slightly at group level, and this was mainly due to the crystallization of SBR into minimum guaranteed rents in the US and the comparative effect of higher SBR settlements in 2023 from 2022 sales. This was partly compensated by SBR in continental Europe, which were up thanks to strong sales performance. Bankruptcies decreased in 2024 with 246 units affected representing 2.5% of the group's retail units. This compares to 355 units affected representing 3.5% in 2023 and 448 units representing 3.3% in 2019. This improvement reflects the strong sales performance in our centers as well as the overall improvement in tenant credit quality following the departure of weaker tenants during COVID. For 69% of units affected by bankruptcies, the tenant was either replaced or was still in place, limiting the impact on the group vacancy. In parallel, rent collection for retail in 2024 stood at 97%, in line with pre-COVID levels, while we continued to collect 2023 rents, meaning that we have now reached 98% for last year. Moving to now, vacancy at a group and regional level. Group vacancy as of December 2024 stood at 4.8%, down from 5.4% at full year 2023 and 5.5% at the end of H1 2024. This is the lowest vacancy level since 2017. In continental Europe, overall vacancy was 3.2% and changed from 2023. Vacancy in the UK is down from 6.9% at trend 2023 to 5.8% today. The vacancy rate has continued to decrease at Westfield Stratford, landing below 3%. Westfield London vacancy is now below 9% and is expected to reduce further thanks to leasing efforts and repurposing of excess space added by the 2018 extension. The former House of Fraser department store is being currently transformed into offices that will be delivered at your end, while the former Debenhams site has been converted into new retail units that are now 70% leased. US flagship vacancies stood at 6.2%, down from 7.3% in 2023, and below pre-COVID levels of 7.7%, and its 2020 peak of 12.5%, showing the recovery in the US and the appeal of our prime assets for retailers. Moving now to leasing, we signed MGR of 465 million euros in 2024 at 4.8% compared to 2023 and plus 6.4% for long-term deals. There was a further acceleration in the pace of leasing in H2 with 247 million euros of MGR signed at plus 7.8% increase on the second half of 2023. The proportion of long-term leases continue to increase, reaching 80% in full year 2024. MGR sign in continental Europe was up 14.7%, showing a positive dynamic as retailers focus on prime locations and our assets continue to gain market share. In the US, the overall amount of MGR sign was done as we have lower vacancy to address and we can shift our focus to higher value-added deals. As an illustration, the average rent per square foot for long-term deals in the US increased by 5.7% compared to 2023. Retailers' appetite is also visible in the rental uplift achieved, which continued to be healthy across all geographies at plus 6.5% on top of indexation in 2024. This was over 11% on long-term deals over 36 months. In continental Europe, the uplift stood at 3.5% on top of indexation with 5.7% on long-term deals. Before indexation, the uplift was at plus 6.1% on all deals and plus 8.3% on long-term deals. In the UK, the uplift stood at 9% and benefited from the relating NH1 2024 of units impacted by COVID. The uplift in the US was at 11.7% on all deals, and it was 30% on long-term deals when compared with MGR in place, and 22% compared to MGR plus SBR. Moving now to occupancy cost ratio, which stands at 15.4% in contemporary Europe. In the UK, OCR decreased to 16.7% thanks to lower UK business rents since April 2023, as well as an increase in tenant sales and rent adjustments. In the US, OCR for flagship assets excluding department stores decreased to 12.6% from 12.9% in 2023. And as we have demonstrated previously, the volume of activity generated by omnichannel retailers through in-store initiatives like click and collect and product return goes well beyond the sales figure that are used to compute the OCR. The strong performance of our retail assets in 2024 was mirrored by our offices portfolio with NRI of 102 million euros up 22.3% year on year. This increase was mainly thanks to the full impact of the letting of Trinity, the performance of the Pullman Montparnasse Hotel, and the successful delivery of Flightwell. This was partly offset by the disposal of the Getty offices in Paris. On a like for like basis, offices NRI was up 14.4% on a group basis, including 18% in France. Following a successful letting, Trinity Tower is now a mature asset and we have signed an agreement to sell an 80% stake to Norges while continuing to provide asset and property management services. This represents a debt reduction of circa 350 million euros for 80% of the tower. And this is the largest transaction in the Paris office market of the last 12 months, demonstrating the quality and appeal of our assets. We have also acquired the Jacques Ibert office building in Levallois for 33 million euros, which represents another retrofit opportunity. Moving now to convention exhibition activity. 2024 net operating income for CNI amounted to 219 million euros, up 66% compared to 2023, as we benefited from the impact of the Paris Olympics and Paralympics, especially in H2O. The Olympics contribution to CNI in 2024 was 54 million euros at 100%. Restated for the three annual shows and excluding the Olympics impact, lack for lack NOI was still 29.5% above 2023 and 2.4% above 2022. This like for like performance reflects the appeal of our venues, which is confirmed by our 2025 pre-bookings with 91% of expected rental income signed or pre-booked. Our 2024 performance was also supported by a 10% decrease in our general expenses as part of wider cost savings initiatives launched in 2024. This is on top of the 5% decrease achieved in full year 2023. Compared to 2019, we have reduced our administrative expenses by 26%, even when considering the high inflation experienced over the period. Efficiency gains include headcount reductions, supported by optimization in processes and IT tools, and we will maintain this discipline in 2025. In parallel, we also reduced our capex on standing assets and other developments by circa 120 million in 2024 compared to 2023 to partly offset the Westfield Hamburg tick increase. Moving now to our portfolio values, which stand at 49.7 billion euros, a 0.3% increase compared to last year. CapEx and acquisitions had a positive impact of 1.8 billion euros, partly offset by disposals with a negative effect of 0.9 billion. There was a positive FX impact of 0.7 billion euros from the strengthening of both the dollar and the sterling against the euro. Lack-for-lack portfolio revaluation saw a decrease of €0.2 billion, corresponding to minus 0.5% from offices and services, while retail lack-for-lack revaluation was slightly positive at plus 0.2%. Non-lack-for-lack revaluation was negative €1.3 billion, mainly coming from the Westfield Hamburg revaluation. Net range statement value stood at €143.80 per share at the end of 2024, a minus 2% decrease compared to year-end 2023. This evolution is mainly due to the negative non-like-for-like valuation offset by return earnings. Net range statement value also takes into account the return of shoulder distributions with the €2.50 per share paid in May 2024. As mentioned, like-for-like revaluation for retail was plus 0.2% in 2024, made up of a rental impact of plus 1.4%, partly offset by a yield impact of minus 1.3%. This is an improvement compared to H1 valuations, which were slightly negative at minus 0.3%. In continental Europe, this is the first full-year positive revaluation in six years at plus 1.3%. In the UK, this is the second year in a row with positive revaluation at plus 4.9%, which is an acceleration compared to plus 0.6% last year. The main driver of these positive relations was a rental growth generated by strong operating performance in 2024. The decrease in the US LAC4LAC revaluation in 2024 was minus 4.3%, split between minus 1.3% rent impact and minus 3.1% yield impact. For flagship assets, excluding CBD, the revaluation was minus 3.4%, mainly due to the yield impact of minus 3.1%. Let's look more closely now at retail LAC4LAC valuation in contemporary Europe, split between yield and rent impact since 2020. Valuations were significantly impacted by a negative yield effect in 2020 from COVID as a result of a high risk premium and in 2022 and 2023 by the significant and fast rates increase that took place in 2022. In 2024, the yield impact is still negative, but less than in previous years as we start seeing a stabilization in rates. Since 2021, this impact has been partly mitigated by rental growth coming from the COVID recovery, our capacity to pass on indexation, and a strong operating performance. Going forward, we expect valuations to be driven by increasing rents as we have seen in the past. The net insured yield of continental European assets stands at 5.4%, stable compared to 2023, even factoring in the slight increase in asset values on a like-for-like basis. The net potential yield assuming the assets are fully laid is 5.6%. The net initial yield of UK assets is at 6.3% and the net potential yield at 7%. It is flat compared to 2023 despite the increase in like for like valuations of UK assets. In the US, the net initial yield for flagship assets excluding CBD was 5.1%, a 30 basis points increase compared to 2023. This yield is explained by the cash flow growth potential of these assets. The annual growth of NRI assumed by appraisers was at plus 4.2% per year over 10 years, including circa 3% coming from the contractual rent and CAM escalation. The net stabilized yields for US flagship assets after three years stands at 5.7% as it captures the growth potential embedded in these assets. Now on to development. The total investment costs of the growth pipeline increased to 3.5 billion euros, mainly as a result of the 0.8 billion euro increase in the tick of Westfield Hamburg and 0.5 billion of new projects. As mentioned by Jean-Marie, the retail component of Westfield Hamburg will open on the 8th of April with pre-letting at 94%. We also added seven new projects for a total investment cost of €0.5 billion and a targeted yield on cost above 7%. Four projects representing a total tick of €0.3 billion were delivered in 2024 and these assets are 88% let to date. After 2.6 billion euros of deliveries during 2025, the URW development pipeline is expected to reduce to 0.9 billion euros by the end of 2025, comprising of 0.4 billion of committee projects and 0.5 billion of control projects. Moving on to the evolution of net debt and financial ratios, which reflects our significant deleveraging progress and operational improvement over the last four years. Since 2020, IFRS net debt has decreased by 4.2 billion euros to 20 billion euros. Proforma for disposal secured in 2024, it stands at 19.5 billion euros, down 0.5 billion compared to last year. IFRS LTV ratio stands at 40.8% on a proforma basis, marking an improvement of one percentage point on last year. This has been achieved thanks to the disposal secured, the stabilization of our European retail values in 2024, partly offset by the impact of cap expense, as well as the reinstatement of a distribution. Overall, our LTV decreased by 400 basis points since 2020, reaching its lowest level since COVID, despite a 12% decline in values over the period. The balance sheet was also reinforced in 2024 by the issuance of 3.25 million URW shares in exchange for an additional 39% stake in URW Germany. This resulted in an improvement of the APRA LTV from 54.4% to 53.8% between 2023 and 2024, and to 53.1% pro forma for disposal secured, representing a 130 basis points improvement compared to last year. Moving now to net debt to EBITDA ratio. It's at 8.7 times on an IFRS basis in 2024 compared to 9.3 times in 2023 and 9.9 times in 2019. This improvement is due to the net debt reduction achieved and strong operating performance with a lack for lack EBITDA up 7% in 2024 compared to 2023. This is the lowest net debt to EBITDA ratio since the Westfield acquisition, demonstrating the group's leveraging achievements to date. Interest coverage ratio extremely hybrid was stable at 4.2 times on an IFRS basis. Talking now about our cost of debt, we stood at 2% in 2024, a slight increase compared to last year, which was 1.8%. This increase is due to the higher cost of new financing rates in 2023 and 2024 and the lower emulation on the group's cash position following the decrease in short-term rates of more than 100 basis points in 2024. The group has significant hedging instruments in place covering its anticipated debt in 2025 and 2026. The cost of debt in 2025 will benefit from these hedges, but it's expected to increase slightly as a result of lower cash remuneration with a further reduction in short-term rates anticipated in 2025. In total, the group has 13.9 billion euros in cash and available credit facilities. This includes 5.3 billion euros of cash on hand. In 2024, the group raised 4.7 billion euros of new debt, out of which 89% was sustainable or green financing. This includes 1.3 billion euros of green bond at an average 3.7% coupon, a 45 basis points improvement compared to last year's bond issuance. It was four times oversubscribed, demonstrating investors' appetite for URW credit. The group's average debt maturity stands at 7.3 years at the end of December. And thanks to this liquidity, we have the resources to cover all debt maturities for at least the next three years, even in a scenario where we raise no new financing and make no further disposals. And thanks to this strong liquidity, together with our strong operating performance and significant disposal progress, rating agencies confirmed the group's rating in H2 2024. Building on the balance sheet improvements achieved to date, we intend to continue the leveraging through return profit, disciplined capital allocation, and non-core disposals. On this slide, we have provided an illustration of our deleveraging past over the 2025-2026 period. This takes into consideration assumptions over the next two years of recurring profit based on 2025 guidance, a distribution of 3.50 euros per share in 2025 and 2026, reduced capex needs beyond the delivery of Westfield Humboldt, and disposals in line with our historical achievements at an average of 1 billion euros per year. IFRS LTV, excluding hybrid, will track well below 40% by 2026. We are also showing a sensitivity analysis of our LTV based on different valuation assumptions. As mentioned earlier, after six years of decrease, values for prime retail assets in Europe started to increase in 2024. If our European retail assets were to be revalued based on the estimated cash flow growth over the next two years, everything else being equal, this would equate to a GMV increase of around 4%. Such an increase over this two-year time horizon would take down our IFRS LTV, including hybrids, from 42% to circa 40%. Our operational performance and strong liquidity position give us time to continue our gradual deleveraging in an orderly manner while also increasing our distribution. That is all for me and now back to Jean-Marie for some closing remarks.

Thank you, Fabrice. Before we start the Q&A, let me take you through our proposed cash distribution and our guidance for 2025. With our strong 2024 results, we are proposing a cash distribution of €3.50 for approval at the AGM. This represents a 40% increase compared to last year and reflects our intention to increase the distribution according to our purling performance, the averaging progress, and the evolution of asset valuations. Moving now to our guidance, the group expects an underlying growth of at least 5% to drive our full-year 2025 adjusted recurring earnings per share in the range of €9.30 to €9.50. This growth is supported by strong retail operating performance, both in Europe and the US, increased viable income, including Westfield Rise, our continued focus on cost discipline, and the positive impact of 2024 and 2025 deliveries. Our guidance also reflects disposals. those completed in 2024, €0.6 billion already secured for 2025, one deal signed under conditions precedent for €0.3 billion, and active discussions on additional disposals. There is also a slight increase of the cost of debt and our guidance takes into account the one-off impact of the Olympics on convention and exhibition, and the 3.2 million URW staple shares issued in December 2024 for the acquisition of the URW Germany GV. As in previous years, this guidance assumes no major deterioration of the macroeconomic and geopolitical environment. Before we start the Q&A, I'm pleased to confirm the date of our upcoming investor day, which will be held here in Paris on May 14th, with a range of project visits also scheduled on the morning of the 15th. We look forward to sharing with you our strategy and growth plans. Now, Fabrice and I will be able to take your questions. Thank you.