Montea Comm. VA

Good morning. Good morning to you all in the room and good morning to you all on the screen. Good morning from Brussels and thank you all for joining our 2025 results presentation. As policymakers and business leaders met in Antwerp yesterday to discuss the future of European industry, we're here with a positive signal from the frontline. Our strong figures and positive outlook for this year. Today we will give you a presentation. I will start with the highlights. The exceptional leasing momentum. We've been able to let and re-let 250,000 square meters in our existing portfolio and sign another 35,000 square meters of new developments at average rents that are 9% higher than previously. We are in the second year of track 27 and it was executed as a success. More than 300 million has been invested at yields averaging 6.5% and 2025 earnings guidance has been delivered. 4.90 euros as promised a year-on-year growth of 8%. The agenda of today is Els, who will bring you the full results for 2025. I will give you an update on our growth. Ina will continue with an update on the portfolio and the market. And Els will bring an outlook for this year and track 27. And I will wrap up with the ESG. As every year and every quarter, there is, of course, a Q&A afterwards where you have the time to discuss ask all your questions. I will now hand the floor to Els for the full year results.

Thank you very much Jo for this nice introduction. And let's indeed move on with the 2025 results. The recurring EPRA EPS went up by 8% year on year to €4.90 per share. despite an increase by 10% in the weighted average number of shares. The net result stands at €163 million for 2025 and includes, besides the EPRA result of €113 million, a positive portfolio revaluation result of €53 million. Per share, the net result stands at €7.09. Looking at the top line, the net rental income, that went up by 21% compared to 2024 to €140 million, driven by, of course, our portfolio expansion and a strong like-for-like rental growth of 3.2%, of which 2.9% is linked to rent indexation and 0.3% linked to rent reversion. Total property result, including net rental income and income from solar panels, increased also by 21% compared to last year to €149 million. Of course, with the growth of the portfolio, the property and overhead expenses increased to €17 million for fiscal year 2025. operating margin improved compared to last year to 88.9%, which is the equivalent of the EPRA cost ratio of 11.3% for 2025. Financial result, excluding fair value changes, increased by 38% to 18 million and reflects the expected increased interest charges due to new debt that was taken out to finance our growth plan track 27. Taxes include 2 million of corporate income taxes for 2025, reflect the expected rise in tax expenses in 2025 following the abolishment of the Dutch REIT regime. All of this leads to a pro result of 113 million euros, an 18% increase year on year, or 4.90 euro per share. Balance sheet is prudent with KPIs that will enable our growth, a loan to value of 38.1%, an adjusted net debt on EBITDA of 7.3 times and an interest cover ratio of 4.5 times. And you all know we have a Fitch investment grade credit rating of BBB plus with a stable outcome. Financing costs are well under control, with a cost of debt on average of 2.1%. Funding is long-term, with an average remaining debt maturity of around six years, and there is no debt maturing before 2027. In 2027, we need to refinance only 75 million euros. Hedge ratio is 99.7% at the end of 2025, and the average remaining maturity of the hedges is around five years. Give back floor to Jojo for the growth update.

Thank you, Els. We have some good news on the growth update, of course. Montea is on track to meet its track 27 growth targets. When we look at how we are delivering this growth, we see a clear trend. Strong acceleration in standing investment opportunities over the past year. Our strong local footprint in our different markets gives us opportunity. to complete more standing investments, which fit our ambition to create long-term value. The market is currently offering very interesting opportunities, including sale and run-back transactions, and there is more to come in 2026, I can promise you that. We reconfirm our EPRA APS target of 5.60 by 2027, underpinned by 400 million of the remaining investment volume. This volume is fully covered by the available balance sheet, while remaining within the adjusted net debt on EBITDA target of eight times. Taking into account, of course, our annual optional dividend and 80% payout ratio and the occasional contribution in kind. This brings us to 80% of the 1.15 million under track 27 investments already being identified and well on track to reach a portfolio growth beyond the 3.5 billion we promised by the end of 2027. In short, this rebalanced growth will continue to reinforce our clear focus on earnings enhancing opportunities. Today, more than 80% of our investment program is already earmarked. This is 750 million that is already invested, 66 million currently under execution, and 120 million in exclusive negotiations. This means just over 200 million still needs to be identified over the next two years in order to fully deliver on our plan. In line with our outlook, we realized over 300 million euros of investments in 2025 and an average yield of 6.5%. As in previous years, our growth is driven with a balanced mix across our four growth pillars, in-house developments, standing investments, partnerships, and green investments. And we expect this trend to continue with a stronger focus on yielding acquisitions in the coming months. Here you have an overview of the 130,000 square meters we delivered pre-LED projects in 2025, an extension for VOS in Oss, the largest development we've ever done in the history of Montea for InterGamma in Tiel. In Amsterdam, we did a new development and we delivered an extension in Aalst for our client Movianto. On average, these projects yield at 7%. We realize roughly 30% development margin on these projects, and they have an average lease duration on first break of 14 years. Let these figures sink in. It's, in my opinion, very strong. 7% yield on cost, 30% development margin, 14 years lease duration. Quite strong in these challenging markets. But next to that, also a creative growth through strategic acquisitions. End of December, we bought a building in Beringen, the former Euroshoe site. We are currently completing the necessary refurbishment works on this building while discussion with potential tenants are at an advanced stage. We have in Zeewolde and Zaltbommel, where we bought a building, two buildings and an extension for new development. And we extended our developments in Blue Gate with the new building we bought at the quay near the river Scheldt. These projects currently under development are being realized at a yield on cost of 6.5%. As I said, we already have another 62 million under development right now, both in Halle and in the Netherlands. And we have 4 million in execution on our green infrastructure. in investments at an IRR of roughly 8%. As I said, Halle is under development and we have our GV in Weerts that continues to go on, where we have a maximum exposure of 140 million. I repeat, it's at a pre-let of 100%. Here, the average duration on first break on both projects is 20 years. So very significant lease duration. And it will continue. We are currently under negotiation for three growth pillars, yielding investments, solar panels and non-yielding land bank. And we keep the target KPI of more than 6.5% expected net initial yield. This is, in my opinion, a very important slide, it's a new one, where we show the compounding growth momentum we have realized. When we look at what we have realized under Track 27 until now, so over the past two years, we see that there is 150 million of value creation. That's more than 80 million coming from value creation on our new developments. More than 10 million comes from value creation on the acquisitions we did in 24 and 25, and more than 60 million comes from revaluation of our existing portfolio. These strong results, in our opinion, support both our external and internal growth, and they translate into a total annual return of 9% per year under track 27. This is a result we are absolutely proud of. We want to continue that. Over the next two years, we expect to launch more than 200,000 square meters of new projects, all on our existing land bank. These are projects where we already have a customer, but we are still waiting for permits, or we already have the permit in place, but we are waiting for a signature with a client. For these projects, we expect, as already mentioned, yield on costs of 6.5%. And beyond that, our land bank also offers longer-term development potential, up to 1.2 million square meters of GLA, gross landable area, within which we expect to receive permits for a further 350,000 square meters of GLA over the course of 26 and 27. Here too, we expect the yield on cost of at least 6.5%. This includes yielding land bank and land that is not yet available for immediate development. So as you know, the key strength of this strategic land bank is its scale and its development potential across all of our countries. Through this growth pillar alone, we can expand our portfolio by up to 70%. The land bank has current market value of just 190 euros per square meter and more than half of it is already yielding at 5.8%. This land bank is the foundation of our future growth story and the full potential is, of course, substantial. It offers over 70% of rental growth in the years to come, and around 330 million of value creation potential. And with that, I would like to give the floor to Ina for a portfolio update.