Ctp N V

Good morning. Thank you for joining this half year of 2026 results, which are positive so far. We have been able to do a lot of leasing, 55% more than we done in 25 of the first six months, which is 1.6 million square meter of deals. V V V V V V V V V V V V V V I've done a deal with Chinese e-commerce business so far first half this year in terms of take up very good and this confirms and demonstrates that there is a high demand for CTPs ready-built factories and warehouses within the CTP business parts the growth The drivers remain in Europe for Europe. Companies need to be in Europe to serve and support their clients here. That's why they come over from Asia, other places, to be here on the ground. This is one in Europe for Europe. It's also more consumer spending. It's also Central Europe being business smart, cost effective. That is a combination of different factors. Still, two thirds of all the business we do come from existing clients. working hard, of course, to maintain a good excellent relationship with those companies, help them grow. At the same time, also we search for new companies and get new clients from different areas to come to our parks, which often actually works that existing tenants put us in touch with other companies, their suppliers. That's how we also get to new business. The tension rate remains high at almost 90%. Rent collection is as used to be over 99%. So we collect all the rent. We charge almost all of that from our 1,700 blue chip tenants. Very nice companies. Good to work for. The integrated business model combines at CTP operator, standing income producing developer, the construction company, in-house construction company, and the growth engine, as we call it. So the part of our team was looking for opportunities outside of the established markets. Continuously look for opportunity, often driven by client demand. We talk to clients, say, okay, what's your next destination? Where you like to be? How can we support? How can we help you? If we go back to what we do, so back to the operator, 93% occupancy, which has been around that number for the past years, six years vault. So the average lease term is six years. And the portfolio is now almost a 15 million square meter, which is good for 860 million Euro of rental income. And for next year, we are on schedule to hit the 1 billion Euro rental income. And with regards to the developer, in-house construction team, the builders, they've done 250,000 square meters so far of completions. Typically, we start in Q1 with construction and springtime, beginning of Q2, and deliveries will grow more during the second half of this year. Doing like a 10% growth this year, that's our schedule. And we are on track with that. So far, it looks good at around 10% yield on cost. Anyway, what we build now will produce another 152 million euro of rental income. We look forward to continue to solid leasing activity in the rest of the year. Land bank, we have a lot of land, mostly within existing business parks that helps us to or allows us to build these additional properties. The land plots have been serviced and normally come with building permits, so it's pretty easy for us to build those properties or to develop or utilize the land. We'll often have local teams on the ground. We'll sit in the parks and look after existing buildings, but at the same time also within the team are responsible for building more property. N V N V N V N for the past more than 25 years, adding larger properties in a business park with some smaller units. In Germany, especially, we see strong demand for that, but also other countries. So I can see us grow a lot in the SBU sector in a small, medium-sized companies, but also multinationals who take small units here in their SBUs. 500 square meter, 1,000 square meter, 1,500 square meter, you can mix them up, make them bigger. V V V V V Vietnam making some progress there. It previously announced that we have demand from clients. We looked at two different sites, preparing those now, and we see how we can further grow that market with existing clients coming over there, but also giving us better access to the Asian market tp N V more present in Asia and building our network and building our team. I find it very interesting. I think it's a fantastic opportunity for CTP to connect into that or to grow into that and to to become a larger network and to V V V V Also, not bad, actually, for our region. We've seen a lot of electric vehicle manufacturing. Of course, BMW and Debrecen, but also some Asian, Korean, they have been in the region for a while. Chinese are coming now, and, yeah, we support them with their suppliers coming in to supply, for example, car interiors, seats or desk boards or whatnot. That's what we do. We like to grow. We enjoy growth. That's what we do here, but... Of course, also a focus on not only becoming bigger, but also a better company. We have fantastic people on board now who do process management. We have many different initiatives with different software being implemented so we can actually do more with the same crew, be more efficient, more effective. And that's the part of becoming a better company, not just a bigger company.

Anyway, more on that later. I will hand over now to Maarten on the financials and thanks again for joining. Turning to the financial highlights. The portfolio like-to-like rental growth came in at 4.7% in the first half, driven by indexation and continued positive rent reversion capture. Combined with a record leasing activity of nearly 1.6 million square meter, which was up 55% year-on-year, this demonstrates the ongoing strength of the customer demand across our markets. Cross-rental income increased by 12.6% year-on-year to €430 million and net rental income increased by 12.4% to €405 million, resulting in an NRI margin of approximately 98%. The annualised rental income increased by 13% year-on-year to €858 million. And together with the 152 million euros of potential annual rent from the 2 million square meter we have currently under construction, this provides a clear visibility on our target of 1 billion euros of annualized rental income in 2027. The growing cash flow finances our development-led growth and is the basis for our long-term shareholder returns. Our company-specific adjusted APRA earnings increased by 11% year-on-year to 241 million euros. This translates into 50 euro cent a share, an increase of 9% year-on-year. Supported by strong operational performance and leasing momentum, we remain firmly on track to deliver our company-specific adjusted APRA EPS guidance of €1.01 to €1.03 per share. And now looking at the valuation results. The net valuation result in the first half was negative €83m. The standing portfolio recorded a negative devaluation of €147m. This is however partially offset by €69m of positive devaluation from our development pipeline. reflecting construction and leasing progress, but the land bank valuation was broadly stable. Valuationary yields also remained stable. The cross portfolio yield was 6.5% and the reversionary yield was 6.9%. And following the strong rental growth achieved over the recent years, we expect EFEs to be broadly stable for the remainder of 2026. At the same time, the leasing demand remains supported. The total portfolio cross-asset value now stands at 18.9 billion euros, up 11% year-on-year. APRA NTA per share stood at 20 euro and 23 cents, up 4.5% year-on-year. Our value creation model continues to work well, which is illustrated by our compounding track record. Since our IPO in 2021, GLA has grown by around 18% year-on-year. Analyze rental income by 21%, investment property by 24%, and upper NTA per share by 18% per year. Only a few real estate companies in Europe have delivered this level of sustained growth over such a long period. The supportive demand drivers of our business are even becoming more relevant in the current geopolitical environment. whether that are European companies reshoring or global companies relocating manufacturing to Europe and in particularly to CE markets to effectively manage supply chain risk and these changes bring opportunity for CTP and we are ready for those not only without 2 million square meter of space currently under construction today it is well supported by our extensive 33 million square meter land bank where we grow with existing customers While in Europe, our focus is utilizing our existing land bank and turn them into income generating assets, we also took our first step into Vietnam, securing an initial land bank of 330,000 square meter across two locations. We believe the Vietnamese market offers attractive long-term fundamentals, including strong FDI inflows and continued manufacturing expansion. Many of our clients, whether they are European or Asian, are already active there. As always, our approach is disciplined. We deploy capital selectively and apply the same business model that has underpinned our successful expansion across the European markets. Focusing on cash flow generation, while in Vietnam we target higher risk adjusted returns. And now I hand over to Richard.

The first half of the year once again demonstrated CTP's exceptional access to global debt capital markets and our disciplined approach to funding the business. We've raised and refinanced almost 1.7 billion euros of debt, further diversified our funding base and increased the flexibility of our balance sheet. In January, we issued a 500 million euro green bond with a four and a half year maturity at a spread of only 92 basis points. Our first issuance below 100 basis points since 2021. And in March, we returned to the Asian loan markets with a dual tranche five year syndicated facility, raising 22 and a half billion yen and 180 million US dollars from 15 Asian banks. This further broadened and diversified our pool of lenders. In June, we signed a new 400 million euro revolving credit facility with a five year maturity and a syndicate of five key relationship banks. This RCF will be regularly drawn, adding more flexibility to our balance sheet and allowing us to run a lower cash balance. We also remained active in liability management. After tendering €216 million of our February 2030 bonds with an expensive 4.75% coupon in January, we refinanced our syndicated €500 million unsecured term loan facility originally signed in 2024. We decreased the margin to 135 basis points. We extended the original maturity by two and a half years from 2029 until January 2032. Our debt maturity profile remains conservative. After repaying our 350 million euro bond in January, the only remaining bond maturity this year is a 275 million maturity in September. Beyond that, maturities remain very manageable through 2027 and 2028, with less than 1.1 billion euros outstanding in total over those two years. Turning to our key credit metrics, our interest coverage ratio remains stable at two and a half times, comfortably above covenant levels. The leverage ratio stood at 46.8%, slightly above our 40 to 45% target range, reflecting the strategic Italian land bank acquisition that we completed at the end of 2025. together with a modest negative portfolio revaluation in the first half of 2026. Our standing portfolio continues to generate growing recurring cash flow, while our highly profitable development pipeline continues to create value. We expect to continue deleveraging towards our target range over time. Every euro we invest in our pipeline increases our ICR and decreases our net debt to EBITDA, supporting a gradual return of leverage to our target range. This underpins our confidence that we can continue growing rental income at double digit rates while strengthening the balance sheet. The next stage of growth is built in and financed. Due to our sector leading yield on cost of around 10%, we do not require additional equity capital to complete our 1.4 to 1.7 million square meter pipeline in 2026. Liquidity at the end of June stood at 2.1 billion euros, comprising 400 million euros of cash and a total of 1.65 billion euros of available committed revolving credit facilities. more than sufficient to meet our cash needs for the next 12 months. We continue to rebalance our capital structure towards unsecured funding, currently at 71%, with a medium-term goal of around 80%. Our average debt maturity is 4.6 years. 99.4% of that debt is either hedged or fixed rate. And our weighted average cost of debt is 3.4%. Following our recent refinancing activities, we do not expect a material increase in our average cost of debt during 2026. We remain confident in the outlook for CTP. Operationally, the first half was marked by record leasing activity, while rental levels remained resilient. We continue to see structural drivers such as nearshoring, supply chain professionalization and in Europe for Europe production supporting occupier demand across our markets. Our pipeline remains highly profitable and tenant-led with 2 million square meters under construction, 152 million euros of future rental income embedded in that development pipeline. and over 7 billion euros of development profit potential in our land bank. This provides us with significant embedded growth well beyond the current year. More broadly, we remain firmly on track towards 1 billion euros of annualized rental income by 2027, supported by development completions and reversionary capture. Thank you for your attention. We now welcome your questions.