LEG Immobilien SE

and good morning everyone from Düsseldorf. Welcome to our call for our Q1 2025 results and thank you for your participation. We have in the call as always our entire management team with our CEO Lars von Lackum, our CFO Katrin Kuehling as well as our COO Volker Wiegel. You find the presentation document as well as the quarterly report and documents within the IR section of our homepage. Please note that there is also a disclaimer which you find on page 3 of our presentation. And without further ado, I hand it over to you, Lars.

Thank you, Frank. A very good morning to all of you. We are well on track for our guidance which offers a 7% bottom line growth. Cash generation from our core business continues to rise. We grow in our core product. The integration of BCP is well on track. This portfolio and the organic growth supported our strong net cold rent increase of more than 7%, enabled us to further improve margins, and boosted AFFO by 28%. The strong AFFO level is partly affected by a slettish investment level compared to Q1 2024. Therefore, after the integration of BCP, we will increase investments for this portfolio in the year. We reiterate our investment guidance for the full year of at least €35 per square metre. We reaffirm our guidance of an increase of the like-for-like rents in the range of 3.4% to 3.6%, i.e. of more than 4% for our free finance portfolio. The rent increase in Q1 amounts to 3.5%. because we execute rent increases as swiftly as possible after the publication of a new rent table and therefore depend on its publication. Our LTV increased slightly to 48.4% because of a technical accounting effect, first time full consideration of BCP. Therefore, we stick to our existing sales program of around 3,000 units, including assets at the low end of the quality spectrum, as well as new built units. Additionally, we put the eastern German units of BCP up for sale, bringing our disposal program to around 5,000 units. Despite geopolitical tensions and macroeconomic risks, transaction activity in the German residential market is robust. The stable cash flows of the asset class and an expected value increase of 0.5% to 1% in H1 2025 attracts continued interest from domestic and international investors. We therefore expect further progress on our disposal program. As you can see on page 7, BCP is operationally and financially fully integrated. After establishing the intended tax-efficient structure, we executed the tender offer and the delisting from the Australian Stock Exchange. we successfully refinanced two-thirds of BCP's financings. Focus currently is on streamlining the legal structure. The first-time consolidation of BCP supported our strong rental growth by around 12 million euros. The BCP portfolio will be neutral to AFFO in 2025 as we will now ramp up investments into this specific portfolio. And with this, I hand it over to Volko with an update on our operations. Thank you, Lars.

I'm now on slide nine with an update on our disposal program. After the disposal of roughly 2,500 units in 2024, with corresponding disposal proceeds of 255 million euros, we sold another roughly 1,500 units in Q1 with proceeds of 125 million euros. We strive to sell more assets, at least at book value, to improve our LTV towards 45%. We are currently marketing around 5,000 units. These units include the 3,000 mentioned earlier in the year and additionally all our assets in Eastern Germany, most of those in Magdeburg, Halle and Leipzig. The transaction market is robust and there is continued interest in German residential due to its low risk profile. On slide 10, you find more detail on our in-place rent growth in Q1 of 3% or 3.5% on our free finance portfolio. Despite the comparably slow start into the year, we confirm our guidance of an increase of 3.4% to 3.6% for the full year or more than 4% for the free finance part. In executing rent increases, we are, quite naturally, as Lars already pointed out, somewhat dependent on the publication of those rent tables. And this year, quite a number of rent tables will be published in the following month. The average in-place rent per square meter now amounts to €6.87 per square meter. Half of the rent increase was attributable to rent table increases and half to modernization and relating effects. The next cost rent adjustment on our rent-restricted units, which make up 17% of our portfolio, a slightly lower number because of the BCP acquisition, will take place next year. In 2028, roughly half of all our rent-restricted units will come off restriction and will provide us a meaningful rent increase potential. Current difference between in-place and market rent amounts to more than 50%. More details on that topic can be found on page 32 of the presentation in the appendix. On page 11, we provide more details on the split of capex and maintenance investments. Adjusted investments per square meter in the first quarter reached €7.51, corresponding to a minor decline of 0.9%. While this development is lower than the run rate required to meet our guidance of at least 35 euros per square meter, we reiterate our investment guidance. Having just gained full control of the BCP portfolio at the beginning of the year, the increase of investment just took a few weeks, but will already show up in our Q2 numbers. And with this, I hand it over to Catherine.