Gecina S.A.

Hello and welcome to Justina Q1 2026 Activity Conference Call. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Today we have Beniette Ortega, CEO, and Nicola Dutroy, Deputy CEO in Charge of Finance, as our presenters. I will now hand you over to your host, Beniette Ortega, to begin today's conference Thank you.

Good morning, everyone. It's a pleasure to share an update of the execution of our strategy today. One word to begin with on rental income. Our rental income increased in Q1 on a like-for-like basis of 2.3% to 176 million euros. This again shows our ability to outperform indexation supported by rental uplift and a consistently high level of occupancy. As expected, indexation is decelerating, reflecting the slowdown in inflation and construction costs in France last year, with the usual lag effect embedded in our leases. On a current basis, rental income reflects the impact of the significant disposals executed last year, as we recycled mature capital from residential assets into higher-yielding opportunities in the office segment. Occupancy remains high and broad is stable year-on-year, with more than solid activity in Paris and an acceleration of our residential occupancy. The temporary increase in vacancy in Boulogne reflects the time required to release surfaces vacated following lease maturities last year. But we have signed several leases in Boulogne during Q1, and public transport will improve significantly with the upcoming arrival of a new metro ring line next year after some delays. Turning now to leasing activity, we started 2026 with a solid leasing momentum. It's been 23,000 square meters signed between January and March, securing 18 million euros of annual rent, on an average lease maturity of around seven years. Around one-third of this performance relates to renewals, illustrating our ability to anticipate lease maturities and secure occupancy ahead of time, while the remaining two-thirds come from new clients, reflecting continued business development. The development of our fully managed offices is also progressing very well. These represent more than 16,000 square meters and 16 million euros of annual rent, marking a 33% increase compared to the figures we shared at the end of 2025. We are convinced there is a strong demand for high-quality, well-designed spaces, offering more services and greater visibility. and we will continue the rollout of our food service business in the next quarter. On the residential side, leasing dynamics are also positive, with 335 leasing signs up 12% on a life-for-life basis. This confirms both the strength of our operating housing platform and the relevance of our diversified offering. Let me now spend the time on the pipeline, We continue to see a lengthy activity and interest across all our departments, and that includes also C1 Tower, now named Shape. Discussions are active and well-qualified, involving a diversified mix of large corporates as well as mid-sized or small teams. On several assets, we are running parallel expression of interest and discussions, which is a positive sign for demand depth. 60% of signature, the first asset to be delivered end of 26 is now secured, including a landmark deal with the global real estate expert, GLM, on almost 7,000 square meters, and ongoing negotiations are occurring on several other floors. As you would expect, discussions are at different stages of maturity. For assets with later delivery dates, conversations are naturally at early stage, while visibility and conversion tend to improve as construction progresses and projects become more tangible for tenants. Lastly, portfolio rotation continued in 2026. The €200 million disposals at a 3.5% yield allowance at the full year are now fully completed. And in addition, we have secured a further €50 million of disposals at a 2.2% yield, reflecting the quality and maturity of the asset sold. This process will fund the €265 million of development capex currently being invested in the four large flagship projects we are familiar with, targeting double-digit yields on capex. It clearly illustrates the value creation embedded in our capital recycling strategy. The repositioning of T1 is also progressing as planned. The tenant has moved, allowing us to start work early May, around 15 months ahead of lease expiry, while securing rental income until June 2027, and therefore meaningfully reducing the expected void period during renovation. Overall, these actions are fully aligned with our core objective of improving returns for shareholders, while preserving a resilient and future-proof leverage profile. We remain disciplined and pragmatic in our capital allocation, continuously assessing all options with no taboo. One last word before turning to your questions. Based on the performance we have seen so far and our current visibility, we confirm with confidence the guidance we have already shared with recurring net income expected in the range of 6.7 to 6.75 euros per share. Thank you.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. If you wish to withdraw your question, please dial pound key 6. The next question comes from Florent LaRoche-Hubert from AutoBHF. Please go ahead.