Aroundtown Sa U/Adr

Good morning, everybody. Thank you for joining us for Around Town's Q1 2026 resource course. You can view this presentation on Around Town's website, either on the home section or under financial reports of the investor relations section. With me today are CEO Barak Barhen, CFO Jonas Kintelnot, Executive Director Frank Ruvine, Chief Capital Market Officer Timothy Wright, Chief Sustainability Officer Limor Berman, Deputy CEO Kamal Deetman Akhtala and representatives from Grand City Properties are also present. For the duration of the call, all participants will be on a listen-only mode. Following our presentation, you will have the opportunity for questions. With that, I would like to hand over to Barak and the rest of the team, who will guide you through the presentation of our results.

Good morning and thank you for joining us for our Q1 2026 results presentations. We started the year strong and have proactively pursued the highly accretive transactions, which have strong impact on our earnings metrics, on an absolute as well as per share basis. Among others, these include a successful increase of our holding rate in Grand City in April and the €250 million share buyback program launched in January, which is nearly completed and further signing disposals to fuel future capital recycling. From an operational perspective, performance across the portfolio remains solid, supported by resilient fundamentals. Our living portfolio, including residential and hotels, which now account together for 53% of the portfolio, is continuing to perform very well, and we're tapping the strong internal growth potential. With offices, the demand is slowly picking up, but did not reach yet to former year's levels. The macroeconomic and geopolitical environment remains mixed, This is creating volatility and a certain level of uncertainty, especially given the conflict in the Middle East. Against this environment, we remain confident in our ability to navigate ongoing volatility as we have done so successfully in the past years since the outbreak of the COVID pandemic. Our decision in Q4 of last year and the beginning of 2026 to proactively refinance our upcoming maturities has proven to be prudent And as a result, this macro uncertainty is currently not impacting us immediately, with sufficient liquidity to cover maturities this and next year. That being said, we will continue to monitor the market for opportunities to further optimize our debt portfolio proactively. Overall, with strong operational base, improving financial guidance, and sufficient liquidity, we believe the group is well positioned as we move through 2026. On slide four, we present the key financial highlights for Q1, 2026. Net rental income amounted to 297 million euros, higher compared to Q1, 2025, primarily driven by a solid like-for-like rental growth of 3%, which more than offset the impact of net disposals. Adjusted EBITDA amounted to 250 million euros stable compared to 251 million euros recorded in Q1, 2025. FFO1 amounted to 70 million euros lower by 8% compared to 76 million euros in 2005, mainly due to higher finance expenses and in line with our guidance. The negative impact was mostly offset by operational growth and lower perpetual notes coupons from our successful transactions in Q4 last year. As a result of the accretive transaction to increase our stake in GCP, we increased our FFO1 by 35 million euros on an annual basis with 25 million euros impacting this year's FFO and we therefore increased our absolute guidance for 2026 with FFO1 to range of 275 million euros to 305 million euros. On a per share basis, the guidance remained in range of 0.24 to 0.27 euros. APRA NTA per share amounted to 8 euros, increasing 3% compared to 7.8 euros per share as of December 2025, mainly as a result of the share buyback. The share of green certified assets steadily increases, with 72% of our commercial portfolio now certified, including 80% of offices and 67% of the hotel assets. Liquidity is high and increased to 4.1 billion euros plus 1 billion euros on drawn credit lines, maintaining the White Covenant headroom. Tim, please continue.

Thanks, Barak. Slide 5 outlines the main impacts from our increased share in GCP after the share-to-share transaction, which we concluded in April. We're happy to announce a high acceptance achieved, which enabled us to increase our share in GCP from 62.5 prior to the offer to 81.5 after settlement. The transaction was FFO per share neutral on day 1, with the transaction executed at an attractive 10% FFO yield In other words, we have increased our position in one of the most attractive real estate asset types without diluting the FFO per share. Following the increased stake, we have a simplified corporate structure and balance sheet with reduced contribution to minorities, resulting in lower leakage and further supporting our FFLTV ratio. We have increased our exposure to the residential markets in Germany and London, which benefits from strong and structural fundamentals and would strengthen our FFO generation going forward. Overall, we see the results of the exchange offer as very beneficial. Slide 6 sets out our strong achievements year-to-date and how we are positioned for growth in 2021 days. We continue to extract growth potential across the portfolio. The swift and efficient execution to increase our stake in GCP was FFO-accretive and thus provided strong absolute FFO growth from day one. Furthermore, we began ramping up investment in our portfolio in recent periods, which we will continue in the coming periods as we have more untapped potential to live. Through targeted refurbishments, conversions, and expansion projects, we are unlocking embedded value and driving additional like-for-like rental growth. At the same time, we continue to actively pursue capital recycling. This strategy allows us to dispose of assets at lower yields and reinvest into opportunities at higher yields, creating meaningful accretions. As we continue to successfully sell assets while acquisition opportunities fitting our criteria remain selective, we channeled some of our disposal proceeds into a share buyback program, effectively selling assets around book value, and we purchased our shares at a significant discount to now. We executed 60% of the program already in Q1, and as of today, the program is almost fully completed. As a result, the positive impact on the FFO one per share has been faster than initially expected, but the full impact of the share buyback program is to be seen in the next periods. Regarding acquisitions, we are selectively targeting high-quality assets at attractive yields with clear upside potential, without compromising on location or quality, focusing primarily on residential and hotel properties. On the financing side, we have continued to strengthen our financial profile. Our priorities remain in extending the average debt maturity profile and proactively managing financing costs. We have already fully refinanced the perpetual notes with the first call date in 2026, and our debt issuances in Q4 of last year and the beginning of this year leave us with no more near-term refinancing needs, providing flexibility over the timing of future refinancing. Taken together, these initiatives form a disciplined framework for operational execution and capital allocation, positioning us well for 2026. Frank, please continue.