Vonovia Se Unsp/Adr

Ladies and gentlemen, welcome to the Vonovia Se H1 2026 results analyst and investor call. I am Matilde, the course call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Rene.

Thank you, Matilda, and welcome everybody to our H1 2026 earnings call. The speakers today are once again Luka, our CEO, and Philip, our CFO. They will briefly present the H1 highlights and main messages for today before we open up for Q&A, where both will be happy to take your questions. By way of a heads up, we will continue with our policy of two questions per analyst to keep things crisp. With that, over to you, Luka.

Thank you, Rene, and hello and welcome, everybody. So let me start with the key messages for the first half of 2026. Overall, H1 was a period of strong operational performance in our core business, Progress on Disposals and Proactive Financial Management. Our rental segment once again demonstrated its robustness and reliable growth and value-add expanded significantly. The sales-related segments remain influenced by the current market environment and are expected to be more back-end loaded this year. We also made tangible progress on our financial management. Year-to-date, we refinanced around 4.4 billion euros on attractive terms. We essentially completed our 2026 financing activities and substantially trimmed down refinancing volumes for 2027 to just around 3 billion euros. On valuation, the positive trajectory of asset values continued. We recorded 1.1% value growth excluding investments and 1.8% including investments. We realized around 700 million euros of disposals in H1, including an agreement on the preferred redemption of our Vestida minority stake of around 200 million euros. We also see a strong pipeline of further disposals towards our 2028 objectives. With that, let me now take you through the main points for our first half results on page four. In rental, adjusted EBITDA increased by 3.5% to around 1.27 billion euros, despite around 5,000 fewer units year-on-year. Value-add continued its strong momentum, with adjusted EBITDA up 28% to more than 128 million euros. This was mainly driven, again, like in Q1, by higher contributions from the craftsman organization and the energy business. Recurring sales delivered adjusted EBITDA of 39 million euros, which was marginally above the prior year, despite substantially lower volumes. This confirms the continued attractiveness and embedded value of the assets that we sell in this segment. Development was down year over year, with adjusted EBITDA of 20 million euros. The year-over-year comparison should be seen in context, though, as Q1 2025 benefited from a €53 million contribution from a large land sale. Putting that aside, both H1 and Q2 were higher than last year. The trusted EBITDA total then was around €1.46 billion. This is an increase of 2.4% on a reported basis, and 6.4% when adjusted for last year's land sale. Adjusted EBT per share was 1 euro and 13 cents. This is down 5.4% on a reported basis and basically flat when adjusted for the Q1 2025 land sale. Adjusted shareholder earnings were 91 cents per share. Excluding the one-off effect from the land sale, The underlying performance here remained resilient with an adjusted year-over-year performance of minus 1.2% versus 7.7% on a reported basis. IPRA NTA per share was unchanged at 46 euros and 22 cents. This includes the positive valuation result, but also the dividend payout in the second quarter. Our fair value stood at 81.8 billion euros at the end of June. Operating free cash flow was 607.5 million euros. The year over year development mainly reflects around 350 million euros lower working capital, predominantly reflecting the planned ramp up of investments and the acquisition of a managed to green portfolio. And then finally, the debt KPIs. The debt to EBITDA was 14 times LTV was 46% and ICR was 3.6 times. These numbers were obviously impacted by the dividend payment in the second quarter. When you compare them year over year, you can see our continued deleveraging progress with an LTV improvement of 1.3 percentage points over H1 2025 and net debt to EBITDA down 0.3 times. And with that, let me hand over to Philip for a closer look at the segment results.