Good morning, ladies and gentlemen, and thank you for standing by. Welcome and thank you for joining the Adler Group Investor Call. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question-and-answer session. If you would like to ask a question, you may press star followed by one on your touchtone telephone. Please press the star key followed by zero for operator assistance. Now, I would like to turn the conference over to Gundolf. Please go ahead. Thank you, Francine. Yeah, good morning, everyone. My name is Gundolf Moritz, and I'm Head of Investor Relations at Adler Group. I would like to welcome you to our Q1 2022 results presentation. With me today are Thierry Beaudemoulin, CEO of Adler Group, and Stefan Kirsten, Chairman of the Board. Thierry will guide you through today's presentation. Afterwards, Stefan will sum up on recent governmental developments and will be available for questions on governance, audit, and the like. At the end of the presentation, we have reserved time for Q&A session, where Stefan and Thierry will answer your questions. As we are not in the same room, please be tolerant with us by guiding the questions to the respective speaker. This call will be recorded and made available on the company's website after the call. As always, I would like to draw your attention to the disclaimer slide at the end of the presentation, which you can also find on our website. With this, I would like now to hand over to Thierry. Thank you, Gundolf. Also from my side, I would like to thank everyone joining us today on the call. Please let me skip page four, which is summarizing recent event on corporate governance. Stefan will update you on that matter after my speech. Let me now focus on the key highlights of the quarter on page five. Looking at our operational performance, it's fair to say that Adler has had a good start of the year, resulting in strong Q1 figures. The like-for-like rental growth in Q1 has been +2.1% year-on-year, resulting in an average rent of 7.46 EUR per square meters per month, reflecting the high quality of our assets and our Berlin home base. Putting the number in perspective, since December, our yielding portfolio has experienced +1.4% like for like fair value uplift. The vacancy rate continues to be at all-time low at a level of 1.2%, a substantial decrease from 3.8% a year ago. Net rental income came in at EUR 71.1 million, compared to EUR 84.3 million in the first quarter of 2021. Funds from operations from rental activity totaled EUR 29.3 million, compared to EUR 32.3 million in the same period of 2021. These correspond to FFO I per share of EUR 0.25. Both NRI and FFO I were mainly impacted by the reduction in our yielding portfolio due to the complete disposal of 15,500 units to LEG. The ongoing sale of 14,400 units to KKR/Velero, which is now 97% completed, will impose a downward effect in our KPI in Q2. The April NTA as of end of March amounted to EUR 4.19 million or EUR 35.72 per share, compared to EUR 4.26 billion or EUR 36.33 per share as end of December 2021. The loan-to-value ratio of Adler was broadly stable at 52% compared to 50.9% at the end of 2021. We continue pursuing a sustainable financial strategy with an LTV target of below 40%. More than half of the debt expiration in 2022 got extended or repaid already in April 2022, including the EUR 400 million ADLER Real Estate maturing bond. Our EUR 760 million cash balance, and I'm talking Adler cash, excluding BCP, puts us in a strong liquidity position to continue our operating activity as well as servicing our debt obligation. Our cost of debt continue to be stable at 2.2%, remaining at the same level of end of December. On the development activity, we have made significant progress since the start of the year in our effort to strengthen our balance sheet and reduce our development exposure. In Q1 2022, the project Magnolia in Leipzig and Rosenstein in Stuttgart, which are condominium and for-sale project, have been successfully handed over to the buyer. The sale of Spechtstraße in Berlin has been signed in Q1, while Lyoner Blick project in Frankfurt has been signed in April 2022. Furthermore, progress has been made on the Covent Garden project in Munich, Wohnhaus in Frankfurt, Upper Nord Tower and Upper Nord offices in Düsseldorf, where exclusivity has been granted and LOI has been signed. Plans approval for Holsten Quartier and VAI Campus are under discussion with the respective municipality. I would like to turn to page seven. As a result of the significant disposal of a non-strategic part of our portfolio, the quality of our remaining portfolio continues to improve. With most of the assets anchored in Berlin. Out of 27,000 units in our portfolio, close to 20,000 are located in Berlin. This high quality of our portfolio is well reflected in the fair value per square meter. As at end of March 2022, the average fair value of our standing portfolio stood above EUR 3,000 per square meter. As an illustration, this represents a 68% increase compared to Q1 2022, before the portfolio disposal to LEG and KKR Velero. Let's move on to the next page. Like-for-like fair value growth stood at 1.4% at the end of the first quarter on a year-to-year basis, which again is a clear signal of the quality of our portfolio. Comparing to one year ago, our yielding portfolio show a high single-digit value growth of +8.6%. During the same period, vacancies stood at 1.2%, in line with the 1.1% posted at December 2021. This is significantly lower than one year ago, when vacancy was 3.8%, representing a 2.6% decrease year-on-year. Moving to page 9, you see that our residential rent are currently at EUR 7.46 per square meter per month on average, which is 18% higher than the EUR 6.34 per square meter a year ago. The plus 2.1% like-for-like growth year-on-year mainly result of 0.5% of indexation and plus 1.6% from reletting at market rent combined with CapEx investment. It remain a good mix between Berlin and other city of our portfolio. Now, please join me on page 11. At the end of 2021, we had a portfolio of EUR 7.9 billion euro yielding asset pre-disposal, together with a development portfolio of EUR 3.3 billion GAV. Given the fact that we anticipate the transfer of the eastern asset, as well as the exercise of the option for our remaining 63% stake in BCP throughout September 2022, we reclassify all these assets and their associated liability to assets held for sale in 2021. As such, our yielding portfolio decreased to EUR 5.6 billion at the year-end 2021, while the development pipeline decreased to EUR 2.7 billion, representing a combined GAV of EUR 8.3 billion. Up until May, 97% of the assets of the East portfolio has been transferred to Velero, KKR with full closure expected by year-end 2022. Furthermore, during the first quarter, we realized a revaluation gain of EUR 79 million while we handed over Magnolia project and higher condo forward sale project with a GAV of EUR 71 billion. All in all, this has a close to zero net effect on GAV, which has kept our GAV as per end of the first quarter at EUR 8.3 billion. I would like now to move to the next page. The loan to value of the group marginally increased to 52% compared to 50.9% at the end of 2021. The slight increase is mainly attributable to closing effect related to the sale of the eastern portfolio to KKR, as well as interest and CapEx payment. In addition, we expect that the sale of the Kreuzstraße project, the buyback of Partner Immobilien Capital, and the anticipated sale of BCP will bring us to an LTV of 47.2% below our target of 50%. Let's have a look at the maturity schedule on the next page. As you can see, our debt expiration calendar is back-loaded with only 11% and 40% of debt expiration in 2022 and 2023 respectively. A large part of the 2022 maturing debt has already been repaid. In April, we repaid the EUR 400 million ADLER Real Estate bond. The remaining debt maturities this year consist of EUR 120 million Consus convertible bond maturing in November, as well as EUR 347 million bank loan, mostly related to BCP and some Consus project. These upcoming maturities are well covered through a combination of cash on hand, refinancing activity and active capital recycling measures, including the recently announced transaction. Here we refer to cash of EUR 940 million, including cash at BCP level, as debt maturities have been shown, including the debt at BCP level as well. Let's turn to page 14. Given all this change and their associated change to cash flow, please allow me to run you through the development of our cash position at the end of 2022, based on our latest estimate. We ended the first quarter with EUR 760 million cash on hand at Adler Group, excluding EUR 180 million cash at BCP level, which is classified as assets held for sale. Since then, we received close to EUR 400 million in net proceeds from the disposal to KKR of Velero, with additional EUR 17 million project sale. The CapEx on our build-to-hold pipeline amounted to EUR 20 million year to date. While we also repaid EUR 400 million bond and add additional EUR 165 million cash out, including a EUR 100 million intercompany loan to BCP, as well as other debt amortization and interest payment. Therefore, at the end of May, we sit on around EUR 600 million cash, which put us in a comfortable position to service our obligation in the remainder of the year. We forecast a cash position of around EUR 1.5 billion-EUR 1.7 billion by the end of 2022, taking into account the disposal of BCP, as well as the completion of sale of various development project. Finally, I would like to conclude with a short summary and the guidance for 2022 in the next chapter. We would like to end with the guidance and the outlook for 2022 and reiterate our previous outlook, and continue to expect to report between EUR 203 million and EUR 212 million net rental income over 2022, which should result in EUR 73 million-EUR 76 million in FFO-1. To summarize, we had a strong operational performance in Q1. The yielding asset portfolio increased by EUR 79 million, resulting in +1.4% like-for-like value increase in the first three months on the back of 2.1% like-for-like rent increase. Operational vacancy of the total portfolio stand at a historically low level of 1.2%. Solid financial position with EUR 600 million cash balance end of May. Our outlook for 2022 has been reiterated. We have continued our determination to improve Adler corporate governance. Reorganization and improvement of the group is underway with the aim for an unqualified audit opinion for our 2022 annual account. Finally, we will communicate a strategy update on the company future perspective along with the Q3 disclosure this year. I will now hand over to you, Stefan. Kerry, thank you. Good morning, ladies and gentlemen. This is Stefan Kirsten. Please don't be puzzled if we are communicating today with a few delays, as Gundolf has pointed out. The team and I are in two locations. I got tested positive on COVID, luckily with hardly any symptoms, but that's the reason for the separation. To business. I'm very happy with the solidity of the group's performance in Q1, and would like to add a quick note on Adler's governance. I don't wanna repeat the five steps which I articulated several times before, but we're here at point four, the structural and procedural measures. First of all, on the personnel side, Thomas Echelmeyer will start tomorrow in Berlin. As you know, we're looking in parallel externally for a permanent replacement for the CFO. The executive search firm has come back to me and is in-depth interviewing 5+ candidates who have made it through the first round. Now to the structural and procedural governance of our group, in which I believe we have also made some good progress. First, next up for us is the annual general meeting on June 29. I had a chance to individually contact significant shareholders over the last 2 weeks. There has been no negative feedback to our course of action, quite the opposite. Second, on the audit. You will have noted that my announcement about the auditor was obviously a bit premature. We're preparing a new tender process, which will be kicked off after Thomas has gotten his feet under the CFO table. This will most probably lead to an unreviewed half year with no consequences for the financial instruments outstanding. Our last conversation, I told you that we would transform the Adler Group from its Byzantine structure into one business entity, as Thierry has just pointed out on slide 16. The personnel appointments for all major companies, taking into account minority rights, of course, have been made and will now be implemented in the respective supervisory board meetings and the annual general meetings of these companies. This is reflected, for instance, in Consus yesterday's ad hoc. Consus Real Estate AG is our problem child. We have to and will restructure the balance sheet and the personnel. As I mentioned before on the balance sheet, this will be cash neutral. Consus has now three out of four Adler Group board members in its supervisory board. Our, which means Adler Group's, chief legal officer is or will become the sole managing director, and the development officer of Consus is focusing on development and only on development. Fourth, PricewaterhouseCoopers will start next week with its analysis on compliance. This has a little bit to do with holiday times in Germany that it takes a little bit longer. With that, I'd like to conclude my brief remarks. Gundolf, if you could please coordinate the Q&A. Yeah. Thanks, Stefan. Francie, please go ahead. Ladies and gentlemen, at this time we will begin the question-and-answer session. Anyone who wishes to ask a question may press star followed by one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star followed by two. Anyone who has a question may press star followed by one at this time. One moment for the first question, please. The first question is from Neeraj Kumar from Barclays. Please go ahead. At once or, like, one by one? Mr. Kumar? Yeah. Am I audible? Yes, you are. Please go ahead. I'll ask my first question. This is regarding to BCP loan facility. In case if LEG decides to exercise the call option to acquire BCP shares, does the rest of loan facility cease to exist? The 100 million has been made available to BCP now, does that become due immediately? BCP loan has been granted to BCP in order to increase the headroom of the company. The primary role of the company is to work on extending their debt facility on their own. They are successfully doing so because they have recently issued a secured bond on the Israeli market. In this facility, we have a change of control clause, and then once the call option will be exercised, this facility will be repaid. Thank you. On your comments on the bond issuance by BCP entity, given that Adler breached its unencumbered asset covenant ratio as of FY 2021, does that stop BCP from issuing debt? The unencumbered ratio is an unencumbered maintenance ratio which doesn't allow the group to take new debt, but the group is allowed to refinancing existing debt which are maturing. What BCP has done in issuing this bond was a refinancing exercise of an existing debt. Okay. Thank you. On the third question and last one is the 1.4% increase in LTV on page 12 of the presentation due to KKR, can you please provide more color around that? We had a slight increase in the LTV due to several effects. On one hand, we had a positive increase of our yielding portfolio, but we also have one-off costs, some tax provisions, which were not fully covered. On KKR transaction, on one hand, the transaction was closed in the first quarter, but then, part of the transfer of the asset will impact in Q2. We will expect this effect to counterbalance in Q2. Do we have any amount of the tax liabilities around this? Like, is it EUR 100 million, EUR 50 million or something? We have it in our presentation. It's EUR 20 million tax provision that we have made on the back of the transaction with LEG on BCP. Thank you. Thank you very much. The next question is from Daniel Walter for Morgan Stanley. Please go ahead. Yes. Good morning, everyone, and thank you very much for this presentation. A few questions from my side. You mentioned that you're now looking at options for your development projects, Holsten Quartier and VAI Campus. Could you give us a bit of background on that, please? Yes. Our aim in development is to reduce risk and to reduce exposure. We have reset our development pipeline, and we have reduced our build-to-hold to six projects, which means some projects we have decide to sell them. In this course, this is normal, the municipality are asking us to confirm our commitment in this project in Hamburg and in Düsseldorf. That's what is going on at the moment to explain with the city which project we want to keep, which project we don't want. We are considering several option. One option we may consider in the future is to have partner, because project in Hamburg like Holsten Quartier or VAI Campus in Stuttgart are very large project with residential component, with office component, so it could make sense to team up with partner on that in the future. We will provide additional information about our strategy in our next earnings calls. Okay, thank you. Just one follow-up question. Going to page 14 and your cash forecast. Obviously, it looks very encouraging if you manage to execute the BCP sale as well as this additional EUR 1 billion-EUR 1.2 billion of sale proceeds. But I wanted to hear sort of how you feel about sort of executing on those, given it's obviously a difficult market in German real estate at the moment. Thank you very much. We have planned several sales. The option, the call option, with LEG is ending end of September. This is a natural call option to be exercised last minute. That's normal. That takes time. BCP is a great platform with a combination of very strong yielding asset in Leipzig, in Dortmund and the north of Germany, plus selected development asset in Düsseldorf. We are very confident that it could be sold. In terms of development project, we have already secured, we have just signed two sales, one in Berlin, one in Frankfurt, so it's already contracted. We have additional LOI and exclusivity, so it's around EUR 500 million. We still have a few months to complete the additional sales. Okay. Good luck with that, and thank you. The next question is from. Excuse me, the pronunciation. [Manalos Tagnonis], sorry, from Jefferies. Please go ahead. Hi. Good morning and thank you for today's presentation. A few questions from me. First, you know, this EUR 1 billion-EUR 1.2 billion of additional sales, is that cash coming in or is that gross proceeds? 'Cause that confused us a little bit in the previous presentation. Staying on that same page of the presentation from today, you show an estimate of EUR 217 million future cash outflows. The sub-note reads that's receivables recovery, project buybacks, cash guarantees and receivables. I don't really understand that explanation. If you could give some more color around that. Does that have to do with Consus? Is that, you know, cash outflows coming out for a specific reason? Because we. This is a new item, let's say, in there, or maybe this is broken out for the first time. Let's go for these two, and then I may have a couple to follow up on these, please. Yes. On the sales proceeds of EUR 1 billion-EUR 1.2 billion, we are referring to expected cash. It means closing and cashing the amount, clearly. On the expenses, of course, the term other is not very clear. I would pick up two significant amounts in this other. First, it's a buyback of Partner Immobilien Capital, which we have announced, which is signed and which we intend to do, we have not yet closed and cashed out. When closing conditions are met, we will cash out that. Secondly, on BCP, we have a EUR 200 million credit line. EUR 100 million is already cashed out and we potentially expect EUR 100 million to be cashed out. Let's say it's a conservative view on that. We don't think BCP will need that, but as we have a commitment, we have put that on the safe side to that we may cash out that before the end of the year. Understood. Okay. Staying on the BCP, on page 12 where you show the LTV progression, on this Note 5, if I do the math, you know, with the debt reduction, which makes sense. The cash increase is, I'm guessing, netting off the bond repayment, but shouldn't the EUR 100 million credit facility be repaid if BCP is sold? Don't you expect that? In the page 12 of presentation in the LTV bridge, we have also shown then a prudent view, which is just a cash sale expected with the exercise of a call option. You are right, and it's not reflecting that, as we have a CoC clause, we will have also repayment of EUR 100 million. Understood. Thank you. Thank you. Two last questions, then for me, please. Could you break out for us because we've seen the Adler Real Estate accounts as well, so we know the cash balance at Adler Real Estate versus Adler Group. Could you further break out how much cash sits with Consus at the moment versus how much cash at the parent company at Group? I think everybody would love to see a most recent balance sheet of Consus, because the latest we have is from 2020. Would the company be able to produce for investors a latest Consus balance sheet, please? On the cash at group level, we have EUR 600 million cash. As you have mentioned, most of the cash is in Adler Real Estate AG, which is EUR 400 million, and then EUR 100 million is at group level and the remainder at Consus. Consus is part of Adler Group and fully consolidated, so the figures we are presenting include Consus. In addition to that, Consus will publish HGB local account. They have published recently and before the end of the year, they will publish additional HGB account. But as far as IFRS, this is included in Adler Group. Okay. Thank you, [inaudible], and we'll get the next question. Francine, please. The next question is from Wolfgang Felix from Sarria. Please go ahead, sir. If I may, I've got a few as well. First of all, I was wondering, in your estimation, could you possibly or are you possibly selling Gerresheim separately? Is that currently separately sort of for sale or something you've discussed viability? The whole BCP transaction, which includes the yielding portfolio and the development portfolio, as we have an option, has been classified held for sale. ... in our balance sheet and, the option, is coming until end of September. Of course- Yeah As we have an option on that, we don't intend to sell one by one the portfolio before the option is exercised. In regard to the strategy on Gerresheim, I would suggest that you ask Allegi what is their intention on this project. Okay. Thank you. Astonishingly somehow, I don't see anywhere in your plans a potential sale of, I suppose, the elephant in your portfolio, the Adler portfolio. Why is that? Is it that your shareholders don't want you to sell it at this point, or is it maybe not an opportune time in the market? Why are you not looking to sell the single biggest asset? Stefan will take this one. Yeah. This is Stefan. I can take this one. As I said, we're looking at a detailed strategic review after the AGM. In that, we will be very open-minded where the strategic niche has to be, where the company will be. Then we will of course discuss everything. At the moment, this is not under discussion. I hope that answers your question, Wolfgang. It does. Thank you. It does. On BCP, I'm sorry if I've gotten a little bit confused with the various questions that you've already answered on the financing of BCP. I believe that you were raising or Brack were raising a EUR 150 million private placement earlier in the year. Is this the same private placement we're talking about now or is it another one? Should we think of the intercompany loan that you've sent to BCP or affiliate loan? Should we think of that as effectively a bridge loan into that? Yes, I sort of perhaps gotten slightly confused. If you could just maybe summarize it one more time, that would be really good. Thank you. Yeah. BCP has done only one private placement in the Israeli market on ILS 160 million. There's only one which we have mentioned, which is refinancing of existing debt. The BCP credit line come in addition, because BCP has further maturity, which we expect to be refinanced. To give BCP head room and comfort in that, we have given them a credit line. These are two item separated. Okay. Then, final question before or final two questions before I leave that. On page 14, the EUR 1 billion-EUR 1.2 billion, they're higher than the EUR 975 million from the last presentation. Is that because of the Holsten Quartier and VAI Campus being in there or is the what's led to the change in the size of this item? We didn't mention the sale of VAI Campus of Holsten Quartier. These are build-to-hold projects. We have decided we have a total list of projects for sale of more than EUR 1.7 billion. This is just a timing effect. The EUR 975 million comprise seven projects. Since the beginning of the year, we have entered new LOI, a new exclusivity. We have increased our sales target from EUR 975 million to EUR 1.2 billion. This is still in the list that you find on page 33. We have 27 projects. Some of them we want to sell before the end of the year. This is including the EUR 1.1.2 billion, and the rest will be sold in 2023. Okay. Thank you, Wolfgang. We have many people queuing in the line. If you can make. One last question. I'm sure. Please be cautious of the other ones, and we would like to go with the next question, please. The next question comes from Johannes Bolzano, from PIMCO. Please go ahead, sir. Mr. Bolzano, maybe unmute your phone. Mr. Bolzano? Maybe get back on the queue. I'll take the next question, which comes from Peter Kawada from Man GLG. Please go ahead. Hi. Thank you. I just have two questions. Can you just provide us an update regarding the implementation of the domination agreements? My second question is regarding the EUR 2 billion plus of bank debt, how much of that has a cross guarantee from Adler Real Estate? Thank you. Well, first question, it goes to Stefan. Yes, this is Stefan. Domination agreements. As I think I mentioned in one of the last calls, we didn't make too much progress there because we were focusing on the forensic analysis, and therefore that kept our legal department very occupied. We will revisit that as one component to become one economic unit, but it's only one component. There are also other ways possible. Mr. Zitter is back from next week onwards. He's our general counsel. This will be one of the things we will look at very quickly. That's the first question. Will that- Yes, please. Keep going. Sorry. Will it be on the agenda for the AGM this summer? No, the AGM agenda is published. It will not be on the agenda for the AGM of Adler Group, this time. You know that we will need in any case an EGM during the course of this year, when we were able to choose an auditor, and therefore, we will revisit group restructuring at that point in time. Does that answer your question? Yes. Thank you. Yeah. Thank you. Yes, Peter, and your question regarding cross guarantees, we are not prepared to answer this question at the call. Thanks. Can we get the next question, please? The next question is from Lakshman Harendran from ExodusPoint. Please go ahead, sir. Hi. Good morning. Thanks for taking the questions. Just on page 13 of the slide deck, you've outlined how a number of these debt expirations have been extended or repaid. Can you give us some guidance as to the quantum that has been extended? On page 14, you see what has been repaid so far. EUR 480 million has been repaid. We have mentioned at BCP level that they have refinanced with the bonds, and then the remaining maturity before the end of the year, it's EUR 120 million Consus bond and EUR 340 million secured debt where it's attached to project which have to be sold. Most likely, debt will be repaid with the sales. That's our main focus for the remaining of the year. Understood. How much has been extended is what I'm asking. We will come back to you on that one. Okay. Because obviously the hope is that the answer is not zero, and actually the slide deck should just read repaid and nothing's been extended. Any clarity on that would be welcome. Second question from me, which is, can you confirm how much Schuldschein debt is outstanding at Adler Group and Adler Real Estate, please? We will come back to you on the detailed question also. Is debt amount include Schuldschein instruments or no? All the amounts which are there include all the debt. Page 28, you have all the debt including BCP, Adler, ARE. You have the extensive presentation on the slide deck, and if you have more detailed question, just send it to us and we will answer that. Yeah, understood. It's just that on page 28, you've obviously outlined all of the bonds, et cetera, and you've outlined bank debt, but there are Schuldschein instruments which are mentioned in your bond prospectuses and which don't seem to have been repaid in the intervening years. One would assume that they're still outstanding. We're just wondering if you know what the quantum of the outstanding amount of Schuldschein is, or maybe they have indeed been repaid or they've expired and therefore, you know, we shouldn't be too focused on it. Any clarity on that? We will come back on you on this one. The next question is from Diego Da Silva, from P Squared Asset Management. Please go ahead. Hi. Thank you very much for taking my questions. I have three, please. The first question is on the remaining proceeds that you have received from KKR post quarter end, how much of them was used to repay bank debt versus how much of them the company received net? That's the first question. The second question is if you could please provide an updated position for BCP post the cash injection from Adler Real Estate. Sorry, maybe you could just go through those two, 'cause I think the answer to my third one may be on those. Thank you. On the cash compared to Q1, today we have EUR 600 million cash. Most of the cash received from KKR. With the wholesale was to repay debt, but we have also paid interest and paid CapEx in a small amount. We have provide BCP with a credit line of EUR 100 million. As BCP is listed and has also published its result, I suggest that you can just go on what BCP has published, so you will get detailed information on that one. Got it. The last question is regarding a question you were asked earlier about the call option on BCP from LEG and the loan becoming payable or not. Your answer covered the scenario in which the call option is exercised and there is a change of control. I guess I would like to ask the question on the opposite scenario, which is if the call option is not exercised, does the loan still become due and payable? Our base case, given the high quality portfolio of BCP and this attractive development portfolio, is that the call option will be exercised and then the credit line will be repaid. That's the option we are considering at the moment. We don't need to consider other option at the moment. I mean, I guess my question is do the documents of the loan require that to happen or is that something you can decide post the fact? It's a one-year credit line. At latest, credit line has to be repaid in one year, and BCP has a strong balance sheet and is able to repay it with different measures, refinancing assets. Understood. Thank you. Thank you. The next questions come from Lenny Michel from Eicos Investment Group. Please go ahead. I have many questions about the Partner Immobilien Capital reversal. You mentioned on page 12 that it increases the LTV by 1.2% or 1%. Could you just give us a bit of color around what you value the asset as that came back, and how much debt has been taken back on as a result of this transaction reversal of Partner Immobilien Capital? On page 12, this is the LTV bridge. Yes. Today, Partner Immobilien Capital is not yet reversed. The LTV increase is due to other effect. The projection we are having We'll have an increase in LTV once these assets are coming. We will get back the property free of debt, but this is an investment, so as long as you have an investment and cash out this increase the LTV. The strategy there is to get back the project free of debt, and then to sell it in the next 12-18 months. Of course, temporarily you will have an increase of LTV due to that. We have also positive effect, which could happen also before the end of the year, which are not including that, is revaluation of our yielding portfolio. This is not include there. Also the other sale which we forecast to do before the end of the year. Okay. Basically, you can confirm that there will be no debt-attached project coming back. It's gonna be just assets coming onto the balance sheets, and you're paying cash for these assets and that hence the LTV increase? Yeah. That's the plan. Great. Can you comment on the valuation or not at this point? No, not at this stage. Okay, thank you. The next question comes from Jeb Smith from Robeco Asset Management. Please go ahead. Hi, good morning. I saw that you raised the valuation of your yielding assets somehow in this interest rate rising climate. Can you explain the process for that booking in the valuation? Another question from my side is on the BCP transaction and the cash you are channeling into that entity. Doesn't that have an effect on the transaction conditions with LEG? On valuation, our yielding portfolio has been externally re-evaluated by CBRE. What CBRE has taken into account is continuing positive transactions in Germany where you have more demand on the asset class. We have also considered the good result of our portfolio with 1.4% rent increase. We have considered also vacancy decrease as part of the exercise. This is in line with what peers also have shown in the same period given the quality of our portfolio. On BCP, this is a credit line. This should be repaid in the course of the transaction, so it has no impact on the value of the auction. Comment from Stefan. Yes. You were implying that the rising interest rates will have a significant effect on the valuation of properties. We have done the analysis in the last 20-30 years in Germany since the Reunification, and I can tell you there is a very, very weak correlation only. Because the properties would have exploded actually in the value if we would have taken on the way down the whole valuation effect in. So as Thierry pointed out, it is effective sales which are forming that value, and not any ideas about interest rates out there. That correlation is very, very weak. Okay, thanks. The next question is from Ryan O'Hagan from Epic IP. Please go ahead, sir. Thanks. Thierry, Stefan, thanks for taking my question. Most of mine have already been answered, but I just wanted to ask about the resignation of the CDO that was announced this morning, given the relatively short tenure in the role. Just wondered, did you have any additional color that you could provide on the rationale for the resignation and is there anything to kind of read into that? Yes. What you should read into that is that we have de facto two issues which go hand in hand. The first one is we have to repair the balance sheet, restructure the company, which is a very legally driven position. The second point is, of course, that we have multiple development issues, and development challenges out there. What we simply want to do is not to leave this on one shoulder, but on a pair of shoulders. Therefore, we have our Chief Legal Officer dealing with the balance sheet restructuring, et cetera. He will, once he is in the topic, relatively quickly come up with the extraordinary general meeting which is necessary under Section 92 AktG. Expect the meeting to take place in the first half of August. Bernd Schade will focus strictly on developments and, focus his time solely on this because it's a time-consuming business, talking to municipalities, having discussions with all sorts of other people. That answer your question? Got it. Right. Yeah, that's super helpful. Just to clarify then, so in his capacity as a senior advisor, he'll continue to be pretty hands-on involved with the development project and concepts and not just be a kind of high-level advisor? No, absolutely. He will make his hands dirty. We will make sure of that. Got it. That's helpful color. Thank you. Thank you, Ryan. Ladies and gentlemen, in the interest of time, we have to stop the Q&A session now, and I would like to hand back over to Stefan. Please go ahead. Now, I had to find the unmute button. Ladies and gentlemen, thank you for attending today. Thank you for spending the time with us today. Just a very brief summary. I can make it brief for once. We had a solid performance in Q1. Our next step is our AGM on the 29th of June. AGM agenda is out. I hope to hear and see some of you there. With that, I'll hand back to Francie. Please conclude the call. Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you very much for joining and have a pleasant day. Goodbye.