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Good morning, everyone. Thank you for joining and welcome to our 2025 Full Year Results Analyst Call. Today, our CEO, Bernd Stahle, accompanied by our CFO, Elke Snyder, will comment on the results presentation published on our website this morning. At the end of the call, you will have the opportunity to ask questions. For now, I would like to hand over to our CEO, Bernd Stahle.

Thank you, Mertijn, and good morning, everyone. Welcome to the results presentation. Let's dive straight in. Slide four shows you what we stand for. These will be known, but I'll repeat them anyway. We're predominantly infested in Amsterdam. We're open to other sectors than offices. We appreciate that happy customers are key to the long-term success of the business. Sustainability is a must. And if the opportunity is there, we would like to grow into a larger, even better, more resilient business. Looking at 2025, lots of things have moved. For us, the four highlights of this year The redevelopment of H&K Rotterdam Alexander, we'll talk about that later. All the permits are ready and the contractor is at point of signing for FITRM. So that's going to be the story for 26. We've delivered on our asset rotation and we've exited a few more markets. And we've successfully refinanced 400 million in loans successfully at better terms. Slide six. We highlight the key performance indicators, some good, some bad. Earnings slightly higher than last year, €2.10. The dividend therefore up by a cent as a result as well, given that we have got a minimum payout ratio of 75%. Our balance sheet is under control. Our cost of debt remains low. But in terms of vacancy, and we'll talk about that later as well, it has increased. We see it as something that we will be able to address over the coming period. but it's something that we know we need to address because 9% is not something that we're very happy about. Portfolio performance. If we look at the portfolio that we have today, anyone who was in the call eight years ago remembers the map of the Netherlands where we had dots in 72 cities. It's a lot more clean now, this map. We're down to five cities. We exited Eindhoven. We exited Hofstorp. which actually is very clear on slide nine. Three assets sold, Eindhoven, Hooghuisstraat. We actually delivered to the buyer yesterday at 3 o'clock. The two assets that you see at the top that were sold at the end of the list, at the top of the list, were sold at an 80% premium to book the assets in first half of 26. Eindhoven is actually also sold at a similar sort of premium. So the trajectory in terms of asset rotation is good. What you see also on this slide is that we, it looks like we have not done any acquisitions in 25. That is correct, but that doesn't mean we didn't invest. We actually invested quite heavily in H&K, Rotterdam Alexander, and again in 26, there will be further investments, particularly as Fetrum will start. The vacancy rates on slide 10 is up. And we've indicated there's a slightly further increase at the start of 2026 as we got another building back in Leiden. So today the pro forma number is just under 12%. And this is for us the level from which we have to start working it down again. If you look at the vacancy, we basically over the years, as a result of strong asset management, At our asset rotation, investments in our assets, we've managed to keep the vacancy low. But obviously, there will always be tenants vacating, moving on. And this year, last year, 2025, was the year that we actually had some adjustment as a result of it. And with a small portfolio, a vacancy returning to us will have a significant impact on the overall number. It's something that we know we need to address and we are addressing head on. How do we do that? By just continuing to invest in our assets. And H&K Rotterdam Alexander is a very good example of this. This is going to be the best asset in the Alexander sub-market of Rotterdam, opening on February 9. Due to its quality and service offering, the building has attracted significant tenant interest during the development phase. And as a result, we are now at least 85% ahead of completion. with conversations ongoing for most of the remainder of the space. Rents are above our original business case and with costs under control, we look forward to generating an attractive yield on cost of 8.4%. Alexander follows a trend of successful rebrands and upgrades at other H&K as we show on slide 13. In 2026, we're doing a major rebrand of H&K Houthavens in Amsterdam and of H&K Utrecht Central Station. where we also expect to see good increases in ERV post the upgrades. We know the demand for offices is changing, and what is clear is that if and when you invest in your assets, as long as they're in the right location, it does get recognized in higher occupancy and higher rents. We also see this in how our tenants are using the space. We're getting more and more data on the actual uses of our buildings, and we are now on slide 14. The actual physical occupational levels are stable at a good level, especially for the buildings that fit modern day tenant demands. We're optimistic that for the portfolio that we have, these occupancy levels will actually continue to improve. Slide 15 shows Fitrum. It's a project that you've seen coming back on our presentation for the last years. taken its time, but we're planning to make as much of a success of our development as we've done on some of the other redevelopments in our portfolio. In 2025, we've overcome all the legal hurdles and we're close to the point now of finalizing and signing the contractor, confirming an actual start date, confirming a delivery date. Anyone that is driving by the location today can see the preparatory works already taking place at this time. It will be a great addition to the portfolio, adding just under 15,000 square meters of high-end space in a highly visible location. And we're optimistic about the leasing prospects as there is not that much comparable space available in the market now or in 2028. All the relevant details you can see on slide 13. Slide 15 highlights Glasshouse. We announced in the press release because it's a big vacancy for us that is coming up, that it's gonna become vacant in December 2026 after KPN has been there for just over a decade as a tenant. You can actually on the map see where its location is. It's, in terms of location, the best assets in the Sloterdijk area. And it's up to us now to make sure that it's also going to be again the best asset in terms of not only location but in terms of product for this market as and when we deliver the product in probably 18 months time post the delivery or the return of that building in end of 2026. We'll make it future proof. We know how the occupier market has changed. It will be a multi-tenant building high quality, and we expect it will cost money. We don't yet know how much, but as and when we know the details with respect to the cost of the project, the timing of the project, and the returns of this project, we will clarify this to you probably in one of the future presentations for the results. And with that, I would like to hand it over to Elke for the revaluation and the financials.

Okay. Thanks for the introduction, Bernd. On this slide, you can see that the overall revaluation for the full year was negative. In the second half of the year, we recorded a downward adjustment of 31 million. This was almost entirely driven by the revaluation of Glasshouse, the building that we just talked about that KPN will be vacating by the end of 26, and to a lesser extent by Leiden Assets following Johnson & Johnson's departure from the lab space on Newtonweg, and overall the change in sentiment in the bioscience industry that there has been lately. On this slide, the left shows the Euro amount and the breakdowns between positive and negative full-year revaluations. And on the right, we highlight that excluding Glashaus and Leiden, our H2 evaluations remained pretty much stable. Okay, we wanted to dive a little bit deeper into valuations and ERV. That's why we made the next slide. And here we take a closer look. We've created this chart for you, and what it illustrates is that the development of both market rent, ERV, and asset valuations for our like-for-like portfolio using 2020 as the base year and how that develops. Over a longer period, you would generally expect that if anticipated rental income increases, the corresponding asset values would rise as well. However, the chart shows a disconnect over this timeframe, interestingly. While ERV was increased by 20% across our like-for-like portfolio, valuations have declined by 17% over the same period. Moving on to the next slide, you can see that while ERV growth has been slightly lower than inflation, we have seen that our gross rental income does grow ahead of inflation, which in essence is good news. Our new losses are signed significantly above ERV, almost 14%. in 2024 and 11% in 2025. Okay, let's now move on to sustainability. I think this is a familiar slide for you, but of course with updated numbers. As one of our key strategic pillars, sustainability remains an area where we can truly show our commitment and really continue to lead the sector. We assess our progress against multiple indicators, giving us a well-rounded view of our performance. Our EPC continues to stand out. Nearly our entire portfolio is now labeled A or better. And within the A category, we can see further improvement as more assets climb to higher label tiers. On this slide, you can see that reflected on the top right, where the dark blue segment grows significantly in 2025 versus 24. A major focus area is reducing our actual energy use. As we believe that, and I explained this before, Together with CO2 impacts, this is the most meaningful driver of our sustainability trajectory. We track this through CRAM, targeting improvements in kilowatt hour per square meter per year. And this requires both investing in the technical performance of our buildings, but also supporting our tenants in adopting more energy conscious behaviors. On the left hand graph, you can see that we achieved another reduction in energy intensity. This is even more encouraging, and now it gets quite interesting, given that 25 was relatively cold, with 5.7% additional heating days, or in Dutch we call them graaddagen. Pro forma, had conditions been more typical, energy intensity would have likely landed around 105 or 106 for this scope versus the 109 that you see here in the charts. Our performance still remains well ahead of the Paris-Proof pathway, And as mentioned, progress will not always be linear. Some investments deliver larger steps than others, and weather can create year-on-year fluctuations. But the overall trajectory remains strongly positive. Finally, on the bottom right, you can see that 75% of our portfolio scores a very good or better. But more on that on the next slide. Okay. Here you can see on the left, our ratings in 24 at the top. Then in the middle, you can see how our ratings would have looked if we wouldn't have done anything with the new certification that we did this year. And in the bottom, you can see how our ratings were finalized in 25. We recertified a large part of our portfolio in December, and this is the result. While we still have roughly three quarters of the portfolio in very good or better, you can clearly see a shift from excellent in 24, the top chart, to more very good ratings in the bottom chart. At first glance, this might suggest our assets are performing worse, but I'm trying to explain that's not the case. In reality, our assets have continued to improve. However, the thresholds for each green rating level have become significantly stricter. which means the same level or even better performance may still result in a lower label. Now, for most of you, BREEAM is not day-to-day work. Let me explain a little bit about how BREEAM ratings work. They are a moving target, not a static achievement. The assessment framework is regularly updated, and the assets are typically reassessed every three years against newly tightened criteria. As a result, the benchmark effectively resets each certification cycle, meaning that simply maintaining your rating usually requires additional investments and efforts. In years with widespread reassessments, for us 25 was a biggie, it becomes inherently more difficult to maintain previous labels, even if the environmental performance of the underlying assets has stayed the same or even improved. Part of what we're seeing was expected, as we rolled out extensive planned sustainability upgrades, but some outcomes also stem from methodological updates introduced during the certification process. What does remain unchanged is our commitment. We continue to invest in and further enhance the quality and sustainability and long-term resilience of our assets. Okay, now let's dive into the financials. APRA earnings, a familiar chart here. It shows the bridge from GRI to NRI to APRA earnings. Let me highlight a few points. Service costs not recharged increased as higher vacancy meant a larger share of these costs were not passed on to tenants. OPEX, noticeably higher than in 24 and driven really by three main factors. We saw a significant increase in municipal taxes. That was roughly half a million euros. In 24, but this was a little bit of a minor cost, we had a one-off insurance compensation that, of course, did not come back in 25. And we had higher sustainability-related consultancy expenses, including work tied to the green recertification. And again, we did a lot of those in 25, and we do not expect those to return in this magnitude in 26. Net financing result improved. I will elaborate on this later. And finally, corporate income tax lands at a direct rate of around 5.5% comfortably within our guidance range of 5 to 7%. Moving on to upper earnings per slide. It's a bridge from 24 to 25. From left to right, the big ones. First, you can see the impact of the Seipestein acquisition that came in for December 24. So we have the full year impact in 25, hence the six cents of GRI that you see. Negative impact of disposals consists of full year impact of the 24 disposals, to remind you, that was Binnenhof, Den Bosch, and Velenoord-Eindhoven, and the partial impact of the disposals of 25, and there we see Beuken, Hagen, Hoofddorp, that was per October, and Kennedyplein in Eindhoven per December. Like-for-like TRI shows the impact of mainly indexation, as you're familiar with, and as said, service costs not recharged increased due to higher vacancy. OPEX was higher, as explained, mainly due to higher municipality taxes and sustainability consultancy. Financing costs lower, and that was due to mainly, on average, lower debt outstanding. Corporate income tax direct is about 0.9 million higher than in 24. That's the four cent impact. And that all ties up to an EPS of two euros then, which is one cent higher than 24. So I hope everybody is still with me because we're moving on to the upper NTA. First share from, again, end of 24 to end of 25. From left to right, more familiar stuff coming in, so I'll speed up a little bit. Total dividend of €1.57 over the year. The EPS we just talked about of €2.10. Impact of re-evaluation comes down to €3.06. And the sold assets in 25, good news, sold above book value, hence the result on sales. Deferred tax relates to an increase of the deferred tax assets because of the negative re-evaluation over the year. The effective stock dividend here is 27 cents. Simply put, the denominator of NTA per share has increased and results all in all in a decrease of the NTA from 24 to 25 of 2 euro and 24 cents. Okay, let's move on to financing. You have been able to read in a recent press release, but we are very pleased to have successfully closed the new 50 million seven-year private placement with Medlife Investment Management. This strengthens our long-term funding profile, and we're happy to do it with an existing partner. Our 40 million Prycoa placement, which matures at the end of this month, well, factually, that's the end of this week, is being refinanced through this transaction, and we're adding an additional 10 million to support continued investment in our portfolio. We have enough planned for 2016. Commercial terms are attractive, and as a result, average cost of debts remain well under control, increasing only to 3.2% after closing. Okay, another sheet on our maturity and hedging profile. On the left side of this slide, you see the pro forma, so after we've paid back the private placement loan maturity profile. And we're quite happy with that. It's a well-structured schedule, no refinancing needs until 28, and also highlights that we still have substantial capacity on our RCF. With the completion of the new private placement, average debt maturity is extended to 4.6 years, which is illustrated on the top right of this slide. Overall, very satisfied with refinancing in 25. Over the past year, we secured the extension of both the term loan and RCF with our bank syndicates before the summer and closed the PP just last week. Importantly, our entire debt structure remains fully unsecured, preserving maximum financing flexibility. Okay, last slide for me. Looking at our balance sheet KPIs, familiar slide again. On the left side, you can see that our cost of debt has remained stable. As mentioned, it will pick up slightly in 26 due to the new private placement. But do remember, this was priced in a very different base rate environment than the PRICOA private placement that expires at the end of this week. LTV, really healthy, well within external covenant thresholds, but also even a bit still below our own internal guidance. And we did share in the press release that pro forma for the Hooghuisstraat asset that's transferred yesterday, our LTV is 32.2%. So, well, it provides some room to invest. All the other numbers, I think, are looking healthy. ICR is looking healthy, and also net debt to EBITDA improved further, supported by the lower net debt position. Okay, so this is it for me now. Back to Bernd for the Outlook 26.

Thank you, Elke. That's on slide 31, the last slide of this presentation. You see the APRA EPS guidance for 2026 of €1.90 to €2.05. That's the middle of the range would be more or less a 12 cent decline in earnings. That is entirely related due to the disposals that we did last year and the full year effect of Hooghuisstraat being sold earlier this month or actually yesterday. That underlying the business, actually, we are still getting like-for-like rental growth at the top line level. Obviously, an increase in vacancy diminishes the positive impact of that, but the indexation and life-like rental growth, they more or less offset themselves in 2026. If we look at the business more generally, we do see that the outlook for offices is improving. Liquidity is returning to the investment markets, and tenant demand is healthy for high-quality buildings in prime, vibrant locations. people are willing to pay up for being in the best locations. We see more and more evidence of that. Over the years, we've moved to the right locations. And as we continue to invest and are able to provide the high-quality building that the market now wants, we should benefit. 2026, we'll see us further invest in the portfolio. Fitrum is a clear example. Glasshouse will be an upgrade. And the rebrands of two further H&Ks, they may be smaller investments. but we'll also make sure that these assets will continue to perform their best over the coming years. Offices are becoming more operational, hands-on assets. We know this, we're prepared for it, and we believe we're firmly on the right side of this transition, and that should ultimately drive future returns for our shareholders. We're optimistic about the outlook, but the vacancy is the key issue that we know we need to address this year. and it's something that the entire team is fully aware of and should be capable on delivering on. Finally, those of you who received the email this morning will see that we've actually also put out a video of Elke and myself. I don't necessarily like to look at myself, but for those who haven't seen it yet, it's an interesting way to see how our communication is going to evolve as an extra add-on. There is an avatar video on the website. Have a look, give us feedback. and let us know if you like this sort of thing. We're looking forward to doing more of this. AI is not gonna go away. It will impact our business as well. It will impact our tenants. It's something that we're, again, fully aware of, and it means that we need to continue to deliver the product that the market wants. It will continue to evolve. With that, I would like to hand it back to Martijn for Q&A.

Yeah, so as this was the last slide of the presentation, we will now be continuing with the Q&A.

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Vincent should be in the call right now, but I don't think we can hear him. Hello, can you hear me? Okay, there we are. Thank you.

Apologies, I didn't hear any sound effects on that. good morning everybody congrats on the results apologies for the delay then um i just had maybe two quick questions uh first of all you've highlighted of course the eps guidance and that's a let's say a bit wider range of the guidance could you give a little bit of color on what are the underlying assumptions that you estimate for for some of those guidance and then my second question is do you consider any further disposals in 2026 given your let's say maybe successful disposals at high or above book value that you've done in the past month? Thank you.

More guidance. The range is wider than we normally do. What I indicated is that the middle of the range is 198, and there you get basically with the disposals that we did in the back end of 25 and the last one in Eindhoven yesterday. The increase in vacancy as a result of our assets in Leiden that we had as per the start of this year will have a negative impact on income. That should be more or less offset by the increase in occupancy that will happen in VFOLI 2 during this year. Beyond that, Obviously, you get some indexation. We've guided for that as well. This is the first APRA EPS guidance that we give. Hopefully, we can narrow the range in subsequent quarters to give you clarity as to where the number actually will ultimately come out. With respect to further disposals, possibly yes. We'd rather just do them first and then explain to you why we did what we did. But there are a small number of assets that we are currently preparing for disposal that should not necessarily be the biggest assets, but assets that where we see longer term a trajectory that doesn't fit where we think the office market is going. So assets that may ultimately move to change of use where we don't see a role for ourselves in that change of use. I hope that answers your question.

Yes, clear. Thank you very much. I would have one follow-up question potentially, if I may. The last question would be on your investment plan. So, of course, you now have announced with a figure and a yield on cost on Vitrum with, let's say, 80 million. But, of course, you will also now have the renovations of Leiden and potentially Glasshouse. Where do you see basically your LTV landing over the next, let's say, two years?

end of 2027 given the the entire let's say cap expansion potentially for you um starting at the performer number of 32 today uh assume that we basically get our earnings and that they we pay out the dividend and take into account an element of capex then that by and large is a wash the increase in lpc will indeed come from the capex of Vitrum, the capex, the remaining capex on Alexander and the start of capex of Glasshouse. We'll end up above 35, but we'll stay well below 40.

Okay. Thank you. That's all from my side. Thank you, Vincent. Our next caller is Michiel Fragg from IMG. Good morning, Michiel.

Go ahead. Yes, good morning. Thank you for the presentation and taking my question. So I have two questions. So first, you mentioned that well-house remains challenging in the current markets. You also talk about building costs and pre-leasing. Could you maybe elaborate on that, please?

Well-house... is a wood hybrid structure that is going to be built upon a existing parking garage that is complicated expensive and actually takes a lot of time the entire development period for this project is currently estimated somewhere between 34 and 40 months whereas typically you would only probably need two years for a project that is basically ground up on a greenfield. Of that period, it's about 14 to 16 months that the excavation of the parking needs to take place. If you take into account that construction period, it means that all your costs capitalize over a period of time that your leasehold costs are quite extensive over that period of time when there is no income forthcoming. So it's actually the lead time before you actually have your building that is making it hard to make the economic stack up. What is the positive is that the rental assumptions are better today than they were two years ago, two and a half years ago when we canceled the project, but the rising construction costs that have happened since partly offset this. The return that we need is slightly higher than average for the very simple reason that given the floor plates that this building will have, which is about a thousand meters per floor, it's not the type of building that you would expect to pre-let where you get one anchor tenant taking five or 6,000 square meters for the very simple reason that people then want to like to have that space on maybe one or two floors, not on six. This is a building that will be multi-tenanted and probably will only lease up towards completion. So we have full conviction of costs and timelines, but less clarity on revenues. And that's a trade-off that we need to square over the coming period to see whether or not we can justify the investment.

Okay, great.

That's very clear. And then a second question on the bioscience part. Could you maybe elaborate on the negative sentiment shift and how would that impact the releasing options for the assets and also potentially any impact on other assets you have in that part?

Fair question. The life science cluster in Leyden that we have and the entire area is to a very large extent driven by Johnson & Johnson as a major tenant in the entire area. Over the last couple of years, there have been some changes with respect to the available funding, venture capital, capital available for startups that has sort of become less prevalent as cost of capital generally across the board has gone up. And at the same time, what we also see is that the improvements in AI means that you need less lab space because more of the analysis can be done computer generated. And so the market is shifting. There is a little less confidence than there was three years ago about over the prospects of this industry. What we know is that it's a very cyclical industry and we're now at the wrong part of that cycle. It will come back, but it's harder to judge

uh when that will happen okay great maybe one last question if i may uh on the file d2 uh is there any update on the leasing do you see also interest from larger larger tenants to lease more space we got that building back in august

We've basically, with our joint partner on this, established a new plan for the upgrade of the ground floor that basically should complete this month. We've had some leasing so far at rent levels above what we were sort of anticipating, but actually the leasing should really sort of start to pick up from this month onwards. And we indicated at the time that we wanted to go back to a normal occupancy in 18 months. So basically, if we meet that target by the end of this year, we should be at close to 75, 80%. If we get that, that we would be okay with.

But we're not there yet. Okay, very clear. Thank you very much.

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