PSP Swiss Property AG

Ladies and gentlemen, welcome to the PSD Swiss Property Half-Year Results 2026 Conference Call. I am Mayra, the Correspondent Operator. I would like to remind you that all participants will be in listen-only mode and the conference has been 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 broadcasting. At this time, it's my pleasure to hand over to Giacomo Balzarini, CEO of PSP Swiss Property. Please go ahead, sir.

Thank you. Good morning, everybody, and welcome to our release of the half-year results. As always, I will do a quick rundown of the key highlights and then open for questions, as I have seen we are many participants. We are pleased to report strong half-year results. They are predominantly driven by the already announced disposal of the Richtig Park sale. We report an adjusted like-for-like growth of 1.7%. You remember that Q1 2025 we had a one-off effect on the costs. Giacomo Balzarini, Ronald Ruepp Giacomo Balzarini, Ronald Ruepp and we demonstrate and continue to demonstrate a very strong cost discipline and a very stable financials which has been recognized by Moody's with an upgrade on the rating from an A3 to an A2. Furthermore, we have seen again lower taxes, release of deferred taxes more than 10 million in the first half which clearly helps the earnings per share growth Giacomo Balzarini, but also here we have a strong visibility for letting successes and here we are already at the letting status of more than 70% so the vacancy rate by year end will come back down to 3.5% and we see some early signs of recovery in Basel, especially in the Peter Merion building. We had some letting successes and we are in discussions for further lettings so we see first signs of a recovery also in that market. On the transactional side, we continue to see a very strong market. Also, there are rather little opportunities in our target segment, but clearly the valuation gains were a demonstration by the strong market, but also by a strong cash flow development. Our outlook is confirmed at the EBITDA guidance of $335 million, also the vacancy rate is Guidance is converted 3.5% despite a slight increase in the half-year. The top line will come a bit down by the year-end due to the disposals of the Richtig Park and the Gurten of last year and developments which are going on. But overall, we are on target to continue our shareholder-friendly dividend policy throughout the year. So all in all, a very solid and strong half-year result. With that, I would like to end my entry remarks and hold handover for Q&A.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Anyone who has a question may press star and one at this time. The first question comes from the line of Ken Cargarell from ZKB. Please go ahead.