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.

Our first question comes from Bart Gissen from Morgan Stanley. Bart, your line is open. Please go ahead.

Yeah, hi. Good morning. Bart Gissen from Morgan Stanley. I have two questions. My first question is on Romania. Looks like quite a chunky right down there, 5% or so significant. Can you elaborate what happened and whether There's any other markets where we could see something similar. That's the first question.

Thank you Hey, but good morning Martin here, let me take that first question So if we look to Romania what we have seen is I general if you look to the volume we see could could demand that's also if you look at we have signed quite a bit of leases there in the first half of the year but we have seen the market becoming more competitive there have been some more players entering the market some of the more trade developers so to say so people will build and then afterwards sell to fund or others So that has distorted the market a bit because the market with those new players entering has become a bit more competitive. And that's why you saw some pressure there on the valuations. So that is basically what has taken place in H1. But if you look to the overall leasing that we did in Romania, actually the first half was good in terms of volume. You see that also on the slide where we show basically the rental levels and the leasing volume we did, which is in the presentation. So if you look, it's more of a local issue and a temporary issue rather than any structural issue. We don't see it also in other countries. And it comes back to the leasing activity that we have done. If you look to the leasing activity, which is up 55%, with the total 1.6 million square meters signed. That's a very strong underlying demand. So it's really a local issue reflecting some supply short term in the market. That's also if we look to the second half of the year, we expect EFV basically to be stable there.

But can you please give us some actual numbers there? So what was the percentage write down on that Romanian portfolio? and was that driven by higher yields, lower rents, higher vacancy? Can you just quantify that? Because I think that's quite important.

So indeed, ERVs came down 4.5%, to be exact. Yields were stable. Um, um, so, so it's, it's really driven by, by the, the, the, the EFE movement. Um, and, and like I said, if you look to the overall leasing, it was good actually, because the overall leasing, we signed 350,000 square meter in the first half in Romania. So it's really pressure on rent short term driven by a bit more supply, uh, pushed to the market by those local trade developers. Um, no structural issues. in terms of the parks that we are having, because you visited the parks from us in Romania. You know the locations. They are very strong locations. If you look, for example, to Bucharest West, it's the largest park in Europe. This year, we should pass the one million square meter there. We are developing for our key tenants, Lilo and Mela, LPP.

so very strong underlying dynamics but just the competition which affected the valuations in the first half maybe one sentence and what gives you the confidence that sure sorry go ahead hey Bart this is a matter of adjusting the ERVs yeah hey good morning this is Raymond speaking so we have seen that the local teams the leasing teams we have difficulties to hit the ERV so we came down with the ERVs that's what we've done Yeah, it could be temporary. I think so situation that if we can hit these ERVs, we can then increase the rents again. But for now, we came down. We don't do a lot of incentives. As you know, we don't do lots of rent free or anything like that. So no, and we don't plan to do that. So it's just a matter of we have been able to increase ERVs over the past years. And maybe we have been a bit too ambitious here and there. And that's why we corrected that to a realistic level for us or for the leasing team to do deals at. Yeah, and Maarten is correct. Of course, it's a bit more competitive. Although, yeah, maybe it's a temporary thing. But yeah, there are other players, not only international, also local. Um, fighting for some deals here and there. So yeah, that's maybe some more competition, but we don't see a lot of vacancy. So it's more a correction of, of adjusting the ERV to a bit lower level. Um, and not maybe as high as we thought. Uh, let's see what take up is and what supply is like, and then we can maybe increase slowly again, the ERVs. I think that's what's happening.

Great, thank you. And then my follow up question, or my second question is on the impact on the balance sheet, right? You've been guiding to 40 to 45% LTV, that's picked up over time, your acquisition in Italy, other ambitions, and now, of course, you have the denominator effect of a lower V and therefore the LTV goes up to now 47%. You know, by when do you think you'll be back into the target range?

Yeah, hi, but thanks for the question. Um, yeah, look, I think I think you know that we're, you know, we're able to grow the balance sheet without acquisitions through developments at the 10% plus yield on cost. So everything that we're investing over time the 2 million square meter that we have under construction the rest of the developments for for delivery this year at 10% plus will help us towards that we're happy with where we are at the moment understanding that the acquisition in Italy at the end of last year pushed us up we are V V V V V V V V V V V

great thank you very much thank you our next question comes from john wong from kempen your line is open john please go ahead hi good morning thanks for taking my questions um just following up on romania um what gives you confidence that this adjustment in your fees is uh sufficient and that most downwards pressure is behind us uh are traders the traded developers mostly done with their pipelines or um yeah how do you see the market there

goes back to the rents we are able to achieve John so if you look and it's also what I said to Bart if you look to the leasing we've done 350,000 square meter in the first half of the year compared to 200,000 square meter in the first half of last year. The rental levels, they stay at €4.50 of the new leases signed. So we see those in line with basically the ERVs that we now have. So if we are able to lease at those levels, that gives us, of course, the comfort on the ERVs that we now have in the books.

But Martin, maybe more important.

Yeah. Hey guys, maybe more important to explain Martin is the cash because we are talking here about the perception or the ideas on what is value and what can we rent buildings at today, next week, next year, over next year, dah, dah, dah. But cash doesn't change. So we collect more cash now from the Romanian portfolio than we did 12 months ago. And then we did six months ago. You understand? So the cash, the rental income has grown.

Yeah, that's clear. And maybe just zooming in on the Czech Republic. I noticed that in your entrance statement that you also written down on the Czech portfolio. Could you provide a bit more color on that?

So if you look to Czech, John, that's a bit, we have spent some maintenance capex in the first half of the year. we keep our properties up to date as you know so if you run the capex through the P&L you get the adjustment on your value and that's why you see the net V V V V V V V V V V So they are very well maintained. And that's also why we can continue to drive the rental growth. And that also comes back to what Raymond just said before in Romania. If you look to those properties in Czech, while maybe slightly older, some of the initial parks that we built, they are generating more rental income than ever. And for that, we sometimes need to invest.

uh that's the the usual property management that we are doing uh that is also uh the service that we are delivering to our tenants and the quality that we stand for okay that's clear and and our last one um in during your comments on Vietnam you mentioned that Chinese companies active there are also looking to enter Europe um do I read this as that they first want to cooperate with you in Vietnam before they decide on whether to partner up with you entering Europe and just how tangible is their ambition to enter Europe?

Yeah, it's both. And Raymond can also add on that. But we have been, of course, touring also around in Vietnam and when we see Many companies active there, both our existing clients, because we already have quite a bit of Chinese, Taiwanese clients. What we have in Europe, we are also active there, Infantank, Winstron, etc. Same with the Chinese clients. What we have in Europe are also active in Vietnam. But there are also, of course, Chinese active in Vietnam that are not yet in Europe. So it's both ways. And the start of CTP Asia through our operations in Vietnam is really also to strengthen our network there. We have seen the growth of Asian clients coming to Europe. I think we have been one of the first ones to act on that. And that's also why you have seen the increase in the Asian tenants in our portfolio. That's also why we, of course, have the team on the ground in China focused on business development. So companies will want to expand into Europe. And we think we can leverage that even more by our operations in Vietnam, because especially if you look to the northern part of Vietnam, you see many of those Chinese companies active there. Basically, it's part of the China plus one strategy. N V V V V V V V the regulation basically drives them to produce in Europe for Europe together with of course the growth ambitions that many of those Chinese companies have and the consumer market that Europe has to offer and we think that with the operations in Vietnam we can tap in way more into the network and basically enhance that growth with Asian companies

to finish maybe and summarize CTP do 1.5 million square meter of new business this year 1.5 million right that's around 10% of the completed portfolio two-thirds of that let's say 1 million is existing clients and the remaining one-third say half a million square meter we look for new clients We think that more than 50% of that 500,000 square meter, to be exact 300,000 square meter is our target for this year to secure that with Asian, mostly Chinese tenants. And so far, first half of this year, we have been able to achieve that. We have done more than 150,000 square meter of new leases with Chinese companies. And that is a mix of all type of companies. Honestly, it's logistic service providers like SF Express companies involved in manufacturing of machines for the agriculture industry like Zoom Lion in Hungary. also the new automotive, so the EV industry, Liambo in Serbia, one example, but also a large e-commerce company which we recently signed for Poland. So we have a very clear identified number of target groups and the Chinese companies are, Asian companies in particular, Chinese companies, one of the target groups which we approach. And we have established the China desk. So we have a team of people, Chinese people in China, but also in Europe who are actively approaching Chinese companies to see if we can help them with their property needs in Europe. N N N N N N N N N N N N N N N N N N N N N N take space in Vietnam so this works nicely together and it helps us to further extend our China desk or our Asia desk when it comes to securing business not for Europe only but also going forward for our Vietnam project okay that's clear thank you thank you

Our next question comes from Vivian Mackey from the group Peter Cam. Your line is open. Please go ahead.

Yes, good morning. Thanks for taking my question. Two for me. Maybe first follow up on the increasing competition in Romania. Just wondering if there is any specificity to micro location when you see competition rising more intensively than other location and to what extent You see discrepancy in terms of the rent that you can achieve in between your parks. That would be my first question.

Yeah, thank you. Well, this is more Bucharest related. So most of our projects are in Bucharest. With respect to maybe more specifically, with respect to the rental growth or ERVs, we adjusted. I thought we could get €5.50, maybe €6 for smaller units, like 1,000, 2,000 square meter. And that doesn't seem to be the case. So we are still at around 5, maybe 475 or something like that. Yeah. So there is some local players. Martin referred to trade developers. Yeah. Is that so? I don't know. There's competition coming from from from different places. Maybe there is more supply than it used to be. Maybe the market need to still get used to higher prices for the square meter. We see land prices rising, construction costs rising. So I think it's it's just a market which which will become more mature. So yeah, but that's what it is. So we came down with the RVs and said, guys, if you can't lease it for six euro, then maybe try for five. I think that's what it is really. Um, and in order not to have ongoing discussions with the leasing teams in order to avoid that, we give a lot of incentives so that the headline still looks good, but in reality, net effective is far, far lower, which we don't want to do. We never did. So that's why we said, okay, let's bring it down a little bit. See how the market reacts. See how, uh, it's maybe also a little bit of protecting our position. Maybe we keep it low for the moment, you know, not to motivate the others. It's a bit of what you do. So no, nothing to worry about. And as I said earlier, cash remains same better actually, um, than before with, uh, yeah.

Thanks for the additional details. I appreciate it. Uh, my second question will be rather on the, on the, on the increasing LTV. I understand that it's, uh, it's not the cash, but, uh, what about the credit rating? Do you see any issue with that, with the creeping LTV? I mean, the debt on EBITDA still remain below 10 times, but, My question rather is at what point let's say that situation doesn't improve or stabilize in Romania that the TV continue to go up. Do you think at one point you will take action in order to reduce your TV back to the to the target range?

We don't see any need to do anything at the moment. We are in regular contact with the rating agencies. As you know, Moody's confirmed the upgrade to AAA2 earlier this year. I see no reason to expect any change in outlook or the view from the rating agencies. Okay, do you think the rating agencies understand that, you know, operationally, the company does extremely well, we create, you know, we generate will generate in the next 12 months, over 850 million euros of cash. And that is what fundamentally underpins the credit quality of the company. It is the strength and the diversity and the predictability and the reliability of the cash flow that we have. There's a point that Raymond was making about Romania. So the valuations are a point in time, multiple of a cash flow that you're generating. They are a hypothetical value. The cash flow is not hypothetical. The cash flow is real. And that's the strongest point that we have. And that's something that the rating agencies understand very well. So I don't expect anything from the rating agencies, at least not on the discussions we've had with them.

Thank you.

Thank you. Our next question comes from Suraj Goyal from Green Street. Your line is open. Please go ahead.

Morning all, just a couple of questions from me. So the first one is, would you be able to provide a bit of color on the decline in the rents obtained for the first half of this year of leasing? You know, being in Germany, the 185,000 square meters as compared to prior year. I appreciate it might be nuanced, but color there would be good. And then the second, sorry, go on.

Yeah, I can answer that one quite quickly. That has to do with, you know, where the rents, V V V V V V V V V V V V V V V V V V V V V V V V V V um in the building for building like for like um with that the the the leasing in the deutsche industry portfolio um but it's obviously at a lower level uh in absolute terms uh than the the leasing for the brand new uh under development assets probably that's that's very clear um and then the uh second one is just on you're able to share the um total development costs on average for the developments in vietnam

as well as the target yield on cost. And then what kind of element run rate we target going forward or is it going to be more? You know, we see how the the current developments go and then we'll reassess.

Yeah, so if you look to Vietnam and we are currently still and we have secured those two sides, we're now basically working on the tendering, etc. So it's a bit early to give all the details. But I think if you look to the market, you see construction costs around $300 per square meter. that if you look to also if you look to our peers who are active there so it's cheaper than then of course in in European markets labor costs are also cheaper there land costs are a bit more expensive so so it's ultimately the mix of that that gets you of course to the yield on cost We target yield and cost around 12% or so. We'll see how it goes. It's really those two projects are our first try. One is in the north, in the Hainui-Haiphong corridor. The other one is in the south, in Ho Chi Minh. So really the largest consumption areas. N V N and we'll try and see and learn from that that's always how we do if we enter new markets we have a good team on the ground now with property managers that are experienced that have done it multiple times so yeah it's an exciting opportunity for us in terms of the cash flow generation it's one of the higher cash flow generation countries similar to what we can do in Serbia etc etc where we target the higher yield on costs and as you know for us it's always a balance between the cash that we can generate which is important because that what Richard refers to is essential for our credit rating It's essential for our financing of future projects because ultimately that's the cash which gives us the self-financing opportunity that we are having. So that's a bit where we are looking at Vietnam, learning by those two projects and take it from there and then we can see what the run rate will be on a yearly basis.

Perfect. Thank you very much.

Thank you. Our next question comes from Marios Pesto from Bernstein. Your line is now open. Please go ahead.

Good morning and thank you for the presentation and for taking my questions. I've got two from my side. I'm just coming back on Vietnam, actually, where you mentioned these are tenant led. So are these completely speculative schemes or are you developing these with specific tenants in mind based on the discussions you're having? And then secondly, on leasing over the quarter, another quite significant tick up. was there anything in there which would make that kind of non-like for like or something specific that drove that pace and what level of pace could you could you set really for the second half based on the the current discussions you're having thank you I can take the first one thank you for your question um in regards to Vietnam um yeah it we um

We see a lot of opportunity in Asia and in Vietnam in particular, indeed driven by or follow following discussions we have had with our tenants and but that's that's obviously after two years because it's almost two years since we start looking at Vietnam we now look forward to doing our first project we are preparing for the design and permitting I think in Q4 we could potentially start we could decide to start with a pre-lease we could decide to start a bit smaller with some speculative development depends also a bit on how the negotiations develop with our tenants. But the two sites we have identified are really strong in good locations. You can find details on our website. One is, as Maarten explained, Ho Chi Minh. Good location, established business park, no more land. This is the last land site. So good demand already, not from existing clients only, but also V V V V V V V V V V I hope maybe on the capital markets day or maybe a bit later we will be able to give you a bigger a better update on that uh yeah but um yeah very good very excited about that opportunity and uh yeah maybe with regards to the leasing we've done in the details Martin want to take that or Richard you want to provide some more insight in that yeah

So if you look to the leasing activity, and you see it also on the slide in the presentation, Marios, it's quite broad based. In most countries, actually, we are up in terms of the quantum of leasing that we have done. Um, so, so overall demand remains remains, uh, solid, uh, and, and, and, and actually, actually very strong in some cases. Um, and that's really reflecting of course, the crow drivers that we have been talking about leasing is always one offset because, uh, each and every lease you need to do a lot of work for except of course the existing tenants that's a very continued stream of leases that we are getting and that's also the strength of our growth model the consistently sea of growth with existing clients and two-thirds of our new leases being signed with those clients so that you see across the countries and then of course you do the new leases on top but we think that with the locations we are having we are good positioned for the second half of the year also when we are looking to the conversations of the teams on the ground yeah we need to do a lot of work for each and every building and each and every lease but that's normal but we have a good pipeline of negotiations and we hope to translate that and that's also why we are looking if we talk about the development completions between that 1.4 and 1.7 N V N V N V N V N V N V N V N V N V N in the Q3 and in the Q4 basically leveraging the ongoing negotiations that we are having with our tenants as well as the new tenants the Asian tenants coming in some new sectors that are developing we've seen a bit more interest from the clean tech we did for example a big deal in the first half of the year with Windar the windmills in Poland we see a really good demand from fmtg consumer spending. So if you look to the to the shift in basically where where the man is coming from, we see a real strong increase of retail wholesalers who are basically expanding into the CE market and therefore needing more space as on the back of the growth. of domestic consumption, those are expanding their networks, they're opening new stores, opening new warehouses. So that's really the increase in the sector that we are seeing and that's why we are confident for the second half of the year with on track in terms of leasing for our pipeline as guided.

And I think in terms of like where we will land at the end of the year, do I think that we'd be up 55% compared to the whole of 2025? Probably not, but we'll push as hard as we can to get as close to that as we can. I think we are firmly on track to have another record year for leasing this year. And, you know, we'll do everything we can to make that as big a gap to the old record as we can.

Great. Thank you very much.

Thank you. We will now move over to our written questions. Our first question comes from Brent L Watkins from One Consulting SRO. Their question is, where is the growth? A, internal or external? B, which geography? Euro or abroad?

Yeah. Hi, Brent. Yeah, look, the bulk of the gross is in and around Eric, in and around our existing parks, with two thirds of the new leases, like Raymond said, with with existing tenants, so the bulk of our growth is going to be internally generated organically, organic growth. and you know that we can sell finance at the 10% plus yield on cost and then on top of that we have the growth engine that adds new markets so Italy last year Vietnam this year and they will come online over time and adds to the ability for us to then generate organic growth next to the first buildings we build in those countries

Thank you. We've had an audio question registered from Greg Simpson from BNP Paribas. Greg, your line is open. Please go ahead.

Yeah, morning. It's Greg from BNP Paribas. First question would be just on the Asian tenant story. It looks like 15% of leases over the last 24 months was to Asian tenants. It was 20% a quarter ago. And it looks like GLA was quite flat quarter on quarter. So just wanted to check in. Is there any change near a term in terms of dynamics you're seeing with union occupiers? as it does fill the medium term opportunity is attractive. And then just a second quick one. Was there any update on data centers? I know there was some discussion last year about Germany. Thank you.

Yeah, so if you look at the Asian tenants, the 20% was on a much lower quantum. So actually demand from Asian tenants in total is increasing because if you look, you know, 15% of the record leasing that we've been delivering over the last three quarters is materially higher than the than 20% of the smaller quantum earlier. So actually we continue to see very strong demand from Asian tenants. It's not a surprise that it ticks down. You know, they make up 12% of the portfolio. So if we are doing a lot of extensions or expansions with existing tenants that you would expect that number to come down statistically.

Yeah, because it really comes back to what is the percentage of Asian tenants of the new leases. That's also what Raymond said before. So if you look to the new leases that we are doing with new clients, Because we have a lot of new leases with existing clients. But if you look to the percentage of Asian from new leases with new clients, that remains increasing with the demand that we are seeing. In the first half, we did some more renewals, as you can see. So if you look to the percentage that's impacted by that. and then you ask for an update of data centers your second question at this stage we are looking at some things in Germany we also have one two potential sites maybe in Italy as part of the acquisition that we did with VLD but it's too early to say so it is a it takes time those things we are working on it we have power but of course they need to be the demand as well from from the users so so it's securing power securing permits we see it maybe a bit less than then of course you have in in in in some Western European markets but it will come also here also of course driven by regulation more Thank you.

We currently have no further questions waiting online in the queue, and I'd now like to hand over to the management team for any in-venue questions.

We'd just like to thank you all for your cooperation and look forward to seeing as many of you as possible at our Capital Markets Day in Warsaw on the 22nd, 23rd of September. Thank you.