Montea Comm. VA

Good morning, ladies and gentlemen. Thank you all for joining our half-year analyst and investor call. I hope you've had a great summer because we are ready to present to you some sunny results. As always, I am joined by my two colleagues, Els Verwaake, our CFO, and Ina Maslova, our investor relations manager. Together, we will guide you through our strong results. With Els, I will start by sharing the key highlights. I will then give you an update on our growth, and then Ina will walk you through both our portfolio and our markets. Els will return with what you are probably most eager to hear, our outlook, and I will close with an update on the progress of our ESG targets. Finally, as always, we look forward to your questions. Ina will lead us through the Q&A session. Let's start with the highlights. As you see at Montea, all lights are on green. We are advancing on our growth. We now reach 3 billion euros portfolio. We have 150,000 square meters that we have either signed in new leases or renegotiated leases. And we were able to increase the rents by 6% on those leases. And we have the highest occupancy rates of all logistic players in the continent. So, Els, this great performance, what does it do to our results?

Good question, Jo. The EPRA results increased by 20% year-on-year to €54 million. The EPS increased by 6% year-on-year to €2.35 per share, despite an increase in the weighted average number of shares by 14%. The net result stands at 77.5 million and includes, beside the EPRA result, a 13.5 million positive portfolio revaluation and a 7 million deferred tax assets. The net result per share stands at 3.40 euro per share. Looking into more details into our financial figures, the net rental income increased by 23%, driven by strong rental growth and, of course, our strong portfolio expansion. The like-for-like rental growth increased by 3.7%, of which 3.3% is linked to rent indexation and 0.4% is linked to rent renegotiation. The operating margin stands at 87.6%, a slight improvement compared to last year. The financial result increased by 28% to 7.9 million euro. This reflects the expected increased interest expenses that were due to new debt taken out as part of the financing of our track 27 growth plan. All of these figures lead to a nice EPRA result of 54 million, a 20% year-on-year increase driven by organic growth, income from new acquisitions, pre-let from developments that have been delivered, as well as the disciplined cost control. More good news, Fitch affirmed the investment-grade credit rating of BBB+, with a stable outcome, which recognizes our disciplined balance sheet approach, as well as the resilience and the quality of our portfolio. In the first six months of the year, we financed and refinanced over €360 million of debt. The hedge ratio stands at 96%, and with six years average remaining debt maturity, we can talk about long-term funding. The liquidity position is strong, with €260 million of funding immediately available. The cost of debt decreased compared to last year from 2.3% to 2.1%. And we will be able to keep this low cost of debt level of 2.1% throughout 2025 and 2026. With the refinancing that has been done, there is no debt that is maturing before 2027. And the debt that is maturing in 2027 only amounts to 75 million euros. The prudence of our balance sheet is shown in the KPIs, net debt on EBITDA adjusted at 7.5 times, the interest cover of 4.5 times, and a loan-to value that stands at 38.3%. Funding is diversified and long-term, 53% are credit lines and 46% are bonds. with a maturity of financing and hedging of both six years. And as I already mentioned, we really take care of the well-spreading of the maturity days for both credit lines and bonds. Back to you Jo for the growth update.

Thank you, Els. As you know, we have the ambition on the track 27 to grow our portfolio by 1.2 billion based on our four growth pillars being in-house developments, partnerships, acquisitions and green investments. And as already mentioned, we're well on the way to do this. based on a good balance between our four growth pillars. In the first half year, you see that 30% came from in-house developments, 40% from partnerships, mainly the one with Wirtz in Liège. But overall, on the four growth pillars, we are able to achieve an investment yield of 150 to 200 base points above market yield, which you see here. 187 million has been invested in the first year half, 36 million in acquisitions, 142 in development and partnerships, and 9 million in solar panel and batteries, at an average yield, net yield of 6.7%. Let's first look at the acquisitions. We bought a building on Blue Gate Antwerp, which now enables our park, Blue Gate, where we already had three developments to connect it to the river Scheldt. We did a nice investment in Zaltbommel. I call it a real Montea product because it's a mix of yielding land bank and development potential. And after the end of the semester, we also did an acquisition in Zeewolde with a huge reversionary potential in the future. We also delivered 111,000 square meters of fully pre-led in-house projects. The biggest one we ever did is the one in Tiel that was for InterGamma. And of course, now, since it is delivered, the rent will start kicking in as of 1st of July. That's why the year-on-year EPS growth of 6% that we have shown here will grow to 8% by the end of the year because we will have these nice developments, the rent income kicking in. Smaller one is in Alstom extension we built for Movianto and in Amsterdam we also did a project for Blond. Looking at the pipeline, we have 150,000 square meters of 100% pre-led developments in the pipeline. That's, of course, 40% of the development with Weerts. It's a building in Oslo that is also under construction for Vos Logistics and two projects where we have the tenant in place, but we are now waiting for the permit, which will probably come in the first quarter of, sorry, in the last quarter of this year, and we will start the construction probably in the first quarter of 2026. And we signed another LOI for a project of roughly 30,000 square meters, more information to come there later in the year. In short, 75% of the growth plan of under track 27, the 1.2 billion growth plan is now secured. It's partly in execution, part is under negotiation. Let's look at what is in execution today. It's 31 million of acquisitions we did after the end of the semester. So it's mainly the one in Zeboldo. We have projects under development today for 65 million yielding above 6.5% and we have another 11 million of solar panel and battery energy hubs that are also under construction. Then we have under exclusive negotiation another 76 million of yielding investments, solar panels for another 52 million and then 45 million of non-yielding land bank that will also generate 6.5% after development. We've already been through these projects and these are the ones that are either delivered this year or that are still under construction. But of course, we are absolutely focused on these ones. These are the ones that are either permitted, but waiting for a tenant or where we have a tenant, but we are waiting for the permit. You know where the land plots are. They are mainly in Belgium and Holland right now. The land bank, which is really the main strategic advantage we have within Mantea, has increased to over 3 million square meters now. That gives us a future development potential of 1.5 million GLA, which is 60% of our existing portfolio, and over 70% of that is grey and brownfield. Of course, we took out teal because that is now the part that is developed for Intergamma, has been taken out of the land bank so huge potential there to continue the growth plan on the track 27 just based on the land bank we want to develop before the end of 2027 we will be able to increase our rent by 30 and then of course the rest of the rent bank will lead to another increase to even 74 of our rent roll It's not only rent increase, it's also value. We believe that we can increase, based on our land bank, the value of our developed portfolio to 4.4 billion, with the development margins up to 330 million linked to that land bank. So let's be clear, this is the first engine of our growth ambitions. Now, over to you, Ina, for a portfolio update.