LEG Immobilien SE

Ladies and gentlemen, welcome to the LEG Immobilien Q3 2025 conference call and live webcast. I am Matilde, the course call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Mr. Frank Kopsinger, Head of Investor Relations. Please go ahead.

Thank you, Mathilde, and good morning, everyone from Düsseldorf. Welcome to our call for our nine-month 2025 precise call, and thank you for your participation. We have in the call our entire management team with our CEO, Lars von Lackum, our CFO, Katrin Kuehling, as well as our COO, Volker Wiegel. You hopefully realize that we changed the format of the presentation slightly. You have now a more condensed section in the front part of the presentation and you have all information as in the path in the appendix. 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'll find on page two of our presentation. And without further ado, I hand it over to you, Lars.

Thank you, Frank, and welcome from my side as well. A brief overall comment and just repeating what Frank just said. All adjustments to our financial disclosure were made to present our financial updates in a sharper, more straightforward way and allow for a more focused discussion on the main levers of our business. You can still find all the details included in our financial disclosure so far in the new appendix of today's presentation. With this, I turn to the highlight slide. The key highlights and messages are certainly the following. After the first nine months, we are fully on track for our 2025 guidance, i.e., we aim for an AFFO growth of 10% this year. For 2026, we guide for an additional growth of 5% in AFFO. We stick to AFFO as our core KPI, i.e. cash generation remains our core principle in this environment. At the same time, we have included FFO1 as part of our guidance for 2026. We remain constructive on valuation and expect a positive valuation result of 1.5 to 2% for the second half of the year. Disposals remain one key lever to bring down our LTV to the target line of 45% in 2026. We have already sold more than 2,200 units for around €100 million so far and remain very positive to see signings until year-end based on the current state of our sales pipeline. The last highlight for this quarter is certainly Moody's. Moody's just recently confirmed our BAA2 rating and revised our rating outlook to positive. We regard this as a recognition of our efforts to protect our balance sheet via non-complex measures and the cash-focused steering of our group. Let me now move to slide 6 and our financial highlights for the nine months. We continue to show strong growth, which is driven by the seamless integration of the 9,000 units portfolio of BCP, as well as by organic growth. Our net cold rent grew dynamically by 6.8% or 44 million euros, respectively. Strong top line growth in combination with a tight cost control led to a strong EBITDA margin of 79.2% for the first nine months. Based on that, we feel comfortable to reach the increased guidance for the EBDA margin of 77%. The same holds for the AFFO, which we expect to come in between €215 and €225 million. We are aware that the 3.1% like-for-like rental growth looks a bit lighter than our target range of 3.4% to 3.6%. We are very confident that we will reach the target range for the full year in Q4, and Volker will give you some more details on the reasons in a minute. Let's move on to slide seven. For some of you, it might be a bit of a deja vu, as we have shown the same slide in our H1 core. We are of the opinion that this simple chart reflects our core KPIs and the thinking behind it in the most transparent way. We continue to believe in cash, i.e. cash remains king in the current environment. Therefore, AFFO remains our core KPI. At the same time, we never stop prioritizing profitability. Therefore, we are including FFO1 additionally in our guidance. The impact of the drastically rising state budget deficits and rising debt ratios to interest rates is more than uncertain. The response of national banks to these fiscal situations is equally unknown. The few green shoots seen in transaction markets might continue to grow, but substantial risks remain. In this environment, we do not want to organically start to lever up by increasing investments. We have decided to remain in a fully self-financed position. We continue to spend more than €35 per square metre, This is still one of the highest levels in LEG's history, excluding the peak years of 2020 to 2022. Therefore, we invest more than 40% of net rental income into our portfolio via maintenance or CapEx. We consider this to be significant, and those investments will support future rent growth. All of this is fully self-financed, and we do not need to take up additional debt. It is the most rational strategy to maneuver in this environment. We expect to achieve a further growth in cash generation, especially the 10% AFFO growth in 2025, and we guide for another 5% growth in AFFO in 2026. And with this, I hand it over to Volker for a detailed view on our operations.