Thank you for standing by, and welcome to the Cromwell Property Group FY23 results. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to turn the conference over to Dr Gary Weiss, chairman. Please go ahead. Thank you. To everyone who has dialed in today, welcome. I acknowledge the traditional custodians of the lands on which we meet, and pay my respects to their elders, past, present, and emerging. Today, I speak from the Gadigal lands of the Eora Nation. We open our annual results for the period ended 30 June 2023, looking at the company performance for the year behind us. While it has been a challenging 12 months, we have made progress on a number of our key strategic initiatives. During the financial year, Cromwell has continued to simplify the business, going back to key core fund and property management. We've continued our program to sell non-core assets on and off shore, as well as growing our fund management platform in a measured way, which Jonathan will speak to more in a minute. While the company's gearing at balance date was 42.6%, outside of our target range, it is to be noted that Cromwell has sold more than AUD 240 million of non-core assets and reduced borrowings by AUD 319 million over the financial year. Unfortunately, valuation declines have hindered more positive gearing ratios being achieved. Key to navigating the current environment is balance sheet strength through prudent capital management, including good lender relationships and hedging, which Michael will step through in more detail. As we move into FY 2024, Cromwell is positioning itself to move into the next phase of growth. We have continued to simplify our business and to focus on key skills of funds management and asset repositioning strategies, further debt reduction, and completion of our asset sale program. I now hand over to Jonathan to speak more about the operations of the group over the last 12 months. Thank you, Gary. I'd like to start by reviewing some of the key strategic achievements outlined on slide 7. Since 2021, Cromwell has been focused on the simplification of its business strategy, aiming to focus on its fund management business and reducing its gearing by selling non-core assets and businesses. To date, we have completed non-core asset sales of more than AUD 460 million locally. We have completed a 50% exit of Italian logistics, selling down to a new joint venture partner, Value Partners in Italy. Earlier in the year, we made a full exit of LDK, returning some AUD 160 million of invested capital. Cromwell Funds Management platform is performing well, notwithstanding the obvious headwinds faced by the sector. With existing non-discretionary mandates, approximately a quarter deployed in Europe, and the proposed transaction between Cromwell's Diversified Property Fund and Australian Unity Diversified Property Fund, which if implemented, will increase the size of this fund significantly. With our continued focus on ESG, we're proud that the Cromwell Direct Property Fund is now ranked equal third in NABERS Sustainable Portfolio Index 2023 for energy performance, up from equal fifth and ranked equal seventh for water performance. Also pleasing is that our latest GRESB scores are all above average for management performance, environmental, social, and governance, with Cromwell Direct Property Fund scoring 87 out of 100. Our Australian investment portfolio is now ranked equal fourth by NABERS Sustainable Portfolio Index for energy performance, up from 14th in 2022 and equal eighth in water performance. Our GRESB score was, has improved here as well, scoring overall 82 out of 100. Most recently, we announced the development of our sustainability finance framework, writing our first green loan in Australia for AUD 130 million for the Cromwell Riverpark Trust. Through active asset management of our assets in Australia, we not only continue to meet the changing requirements of tenants, but also seek to address a shortcoming in the real estate industry of recognizing the value of the embedded carbon contained in our buildings. This and other ESG initiatives will continue to be a point of pride for our group locally, more of which Michelle Dance will step through later in the presentation. I will now hand over to Michelle to review our financial performance. Thanks, Jonathan. Michael Wilde. Turning to slide 12. We announced a statutory loss of AUD 443.8 million for the financial year, but with underlying operating profit of AUD 158.6 million, representing AUD 0.0606 per security. As many of our peers have covered off over the last month, we faced rising interest costs, which were up AUD 23.8 million, equating to a 43.8% increase on the prior financial year. We're pleased with progress made on our debt repayment goal through asset sales, with the repayment of AUD 319 million of debt through the 2023 financial year. Operating profit was AUD 158.6 million, down 21.1% on last year, and distributions were AUD 0.055 per security, representing a payout ratio of 90.8%. Turning to slide 13, fund and asset management in Australia achieved earnings of AUD 28.8 million... down 23.8% on the prior financial year, due to no transaction fees being earned in 2023. Earnings from our European business were up 5% to EUR 12.5 million, due to higher performance fees. The Cromwell Poland Retail Fund received higher rents over the period, although this was more than offset by the increasing service charge costs in a high inflationary environment. In Australia, our investment portfolio headline performance was down 6.7%. However, excluding asset sales, the portfolio delivered like-for-like NOI growth of 3.9%. Corporate costs were down 10%, mainly due to lower insurance costs over the year. Turning to slide 14, we recognize the impact recent property revaluations have had on our NTA, which fell from AUD 1.04 to AUD 0.84. The total value of the Australian office portfolio fell by 9.1%, driven by cap rate expansion. This decrease was consistent with other falls seen in the market. The total value of the Polish retail portfolio fell by 21%. This portfolio consists of 6 wholly owned retail assets and a 50% joint venture of a further asset. The portfolio of 6 wholly owned assets is for sale and currently in exclusive due diligence. While external valuations had these six assets valued at a higher number, the Cromwell board has adopted a carrying amount, which is reflective of the indicative offer from the party in exclusive due diligence. The offer was for the entire six assets, came with a strong commitment from the purchaser for the bid price, and there are substantial strategic benefits to exiting the portfolio. While completion of this transaction is not certain, adopting the offer price as the carrying amount best reflects the application of the relevant accounting standards. Capital management outlined in slide 15 remains a priority. Asset sales and retirement of debt will ensure we can bring our gearing in range and shore up the balance sheet for an uncertain operating environment over the next year. While our gearing of 42.6% is outside our target range of 30%-40%, significant progress has been made on debt repayment, decreasing our net debt from AUD 1.88 billion at June 2022 to AUD 1.74 billion at June 2023. Our efforts to bring gearing back into range have been hindered by AUD 491.6 million of asset revaluations. Further asset sales are slated for the 2024 financial year, with assets in due diligence of more than AUD 560 million. Proceeds will be applied to debt repayment in the first instance. Including the sale of Two Station Street, Penrith, and the 50% sale of the Italian portfolio, both occurring after 30 June 2023, we estimate gearing to be 40.9%, and upon the exit of the Cromwell Poland Retail Fund at the current carrying amount, further debt reductions would bring gearing to well within our target range. I'll now turn to debt covenants and hedging on slide 16. Simplification continued through 2023, with the closing out of the euro-denominated convertible bonds. We have a diversified lender profile with a good split of exposure to Australian, Asian, and European lenders. The near-term expiry in 2024 is attributed to the Cromwell Poland Retail Fund asset level debt, and we are in advanced stages of renegotiation with three European lenders. We maintain comfortable buffers for covenants, noting that we negotiated the relaxation of the euro revolver ICR covenant down to 2 times to reflect the higher level of the Euribor three-month rate. Cromwell is hedged to 70%, with new collars commencing in July 2023. This level is appropriate given the potential future asset sales. Our current average cost of debt is 3.9%, including derivatives, up from June 2022 and in line with current markets globally. I will now hand back to Jonathan to talk about our fund and asset management in co-investment segments. Thanks, Michael. Touching upon the co-investment performance on slide 23 now. Our strategic co-investment in Cromwell Direct Property Fund remains valued at AUD 16.5 million, with a distribution of AUD 1 million, representing a yield of 6.05% over the financial year. We hold a 28% share in Cromwell European REIT, listed on the Singapore Stock Exchange, which is valued at AUD 589.7 million. We received distributions through the financial year of AUD 41.1 million and remain a committed long-term investor in this fund. CEREIT has performed well over the year and continues to reweight the portfolio towards logistics in Europe, having sold office assets of EUR 1,331 million and buying logistics assets of EUR 15.8 million. CEREIT's performance remains robust, with net property income of EUR 68.5 million, up 3.9% for the half year to 30 June 2023 on a like-for-like basis compared with the prior corresponding period. The fund's gearing remains well within covenant limits and out of the Monetary Authority of Singapore's mandated covenant limits. The Cromwell Italy Urban Logistics Fund performed well over the financial year. 100% leased to DHL in northern Italy. Cromwell's operating profit for the financial year was AUD 3.5 million. The new joint venture with Value Partners commenced in June 2023. We took a 50% stake in the portfolio based on a portfolio asset value of EUR 55.8 million.... I will now hand over to Michelle, who will review the activities of the Australian investment portfolio. Yes, thank you, Jonathan. We have continued the simplification of the Australian investment portfolio, with AUD 246.5 million of non-core asset sales throughout the 2023 financial year, the proceeds of which have been used to repay debt. A further AUD 91.1 million of sales are under contract and to complete in the coming months. Since the program commenced in December 2021, we've sold just over AUD 300 million of Australian non-core assets at or above book value in aggregate. Valuations in the portfolio are down 9.1% to AUD 2.6 billion, but these declines have been mitigated by the sale of lower quality assets such as Mary Street, TGA, and the cinemas last financial year, and assets in non-core markets such as Wollongong and Newcastle this financial year. The weighted average capitalization rate of the portfolio has increased over the year from 5.2% to 5.7%, which has been mitigated by leasing, which I will discuss further shortly. While valuation movements have been largely driven by increases in global interest rates and capitalization rates, valuations have also been supported by tenant demand in the sector of the office market in which we are invested. Prudent investment in sustainability initiatives and asset repositioning has supported a strong leasing outcome, with approximately 18,500 square meters of space leased over the financial year and 8.4% rental reversion on new leases signed during the year. Like-for-like net operating income, taking account of assets that have been sold, is also up a respectable 3.9%. Active leasing has seen portfolio occupancy remain stable at 94.6% by income on a like-for-like basis, and the portfolio WALE is 5.3 years at financial year-end. The portfolio maintains a strong weighting of 46% by income to government tenants and further 19% to Qantas. This provides Cromwell with a high income security at the time of falling market valuations. Vacancy and near-term expiry is weighted towards markets demonstrating rental growth and is concentrated in single floors and suites, where tenant demand has been stronger. A consistent theme this reporting season has been a relative strength in the A-grade office market, particularly in Sydney. While larger occupiers have been contracting in response to the normalization of hybrid working, smaller employers have been maintaining or increasing their footprint and upgrading the sustainability and quality of their premises as an employee attraction and retention tool. The chart in the bottom left corner of slide 27 expresses this well. Supply of A-grade space has also been more moderate than in premium grade. Sydney CBD A-grade stock only increased by 0.3% over the year to June, whereas premium stock increased by 4.7%. The combination of muted supply and supportive tenant demand has seen the national A-grade vacancy rate actually fall over the year from 15.6% to 14.1%. In Sydney, we have some vacancy at 207 Kent Street and in 475 Victoria Avenue, Chatswood. 207 Kent Street has had strong demand and continues to see good inquiries, with tenants relocating to the building from elsewhere in the CBD, but also from markets such as Rhodes and North Sydney. Kent Street is a great example of the A-grade market strength I've been speaking of. It's affordable for a wide range of tenants, the floor plates work, and it has excellent in-house and nearby amenities and transport links. Our Chatswood asset is about to complete a significant repositioning, which includes end of trip, facade, ground plane, and a lobby refresh, and we're already seeing this translate into leasing outcomes. We have small amounts of leasing to do in Brisbane, both at 400 George Street and HQ North. At both assets, recent leasing has been pleasing, and inquiry is encouraging. Looking forward, capital expenditures will continue to be prudently applied, with a focus on ESG initiatives, such as the full electrification of the McKell Building, decommissioning of the cogen plant at HQ North, and installation of solar plants where rooftop space allows. Our commitment to improving sustainable portfolio includes a cognizance of the embodied carbon in our assets and the emissions involved in dealing with waste streams, and we are advancing practical decarbonization plans for all of our assets. This will also have the benefit of bringing us closer to our tenants as we work to reduce whole building emissions. Jonathan, I'll hand back to you for the group outlook. Thank you, Michelle. Before we do that, I've just realized that I've skipped a section. So if you can bear with me, I'm just going to run through the fund and asset management performance of the group. We have worked very hard across the financial year to bring new opportunities to light, and are pleased with the results. So I'm now on slide 18. Our assets under management of AUD 8 billion is comprised of AUD 2.5 billion in Australia and AUD 5.5 billion dollars in Europe. In Europe, we continue to deploy capital from non-discretionary mandates, having invested 500 million, of just over 2 billion, having invested EUR 560 million, I should say, of just over EUR 2 billion, committed. These mandates vary across sectors and domiciles, with key focus on Nordics, Germany, Netherlands, and Italy. We've also commenced bringing on Value Partners as a new joint venture partner, after they had invested 50% into the Cromwell Italy Urban Logistics Fund, based on a portfolio asset value of EUR 55.8 million, which is an approximate 9.4% increase on Cromwell's initial purchase price. Turning to slide 20, in Australia, the unlisted funds management platform continues to receive inflows, and our flagship fund, the Cromwell Direct Property Fund, has announced a proposed transaction with Australian Unity Property Fund to bring the two funds together under Cromwell management. This will make a lot of sense for investors, with the two funds having an aligned investment mandate. This transaction will create a AUD 1.1 billion dollar fund, which will benefit with more diverse geographic and sector exposure, as well as operational economies of scale. A vote will go to the Australian Unity Property Fund unit holders in October 2023, and if approved, implementation will occur towards the end of the 2023 calendar year. Leasing remained active in the Cromwell Direct Property Fund, although no fees from transactions were booked during the financial year, and we are managing increased redemptions carefully and in line with the fund's policy. We announced our first green loan, certified by the Climate Bonds Initiative in Australia, transitioning an existing AUD 130 million dollar bilateral loan from Cromwell Riverpark Trust during the financial year. Under the newly developed group sustainability financing framework, we will further optimize the group's borrowing practices and move closer to decarbonization goals. I will now skip to the outlook. Our long-term strategic objectives remain unchanged. Debt reduction remains key as we continue our goal to bring gearing within our target range, which we believe is achievable upon the exit of the remaining assets being completed during FY 2024. We will position our fund management platform for growth with well-considered deployment of capital through partnerships and acquisitions where this makes sense, using prudent capital recycling opportunities as they become available. Our commitment to becoming a capitalized fund manager remains, although the pace of this transition will be hampered by market conditions. Lastly, and very importantly, we remain committed to group ESG improvements, with our commitment to a decarbonization strategy released during the financial year. Specifically, we plan to implement Scope 1 to 3 emissions inventory and modeling reduction pathways, with our goal for Scope 1, 2, and 3, including tenant emissions and embodied carbon by 2045. Moving into the 2024 financial year, we will focus on execution of the proposed transaction with Australian Unity Property Fund and continue to develop products for our investors in Europe and Australia. Our investment portfolio assets continue to perform well, with active leasing and driving value through upgrades and repositioning. This will remain a key focus for the Australian team during a more difficult operating climate. Ongoing reduction of gearing to within our target range remains a high priority. This is to be achieved or ought to be achieved through the completion of these sales currently in due diligence. Cromwell will continue its current practice of not providing annual guidance. Given the uncertainty around the progress of asset sales and the need to protect the balance sheet liquidity, the board will adopt a conservative distribution policy throughout the year, unless circumstances change. A distribution of AUD 0.0083 per security is expected to be paid for the September 2023 quarter. I will now hand back to the call operator to open the line to questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star, then two. If you are on a speakerphone, please pick up your handset to ask your question. Our first question is from Solomon Zhang with JPMorgan. Please go ahead. Morning, Jonathan, Michael with you. First question from me is just on the valuation of the Polish retail portfolio. I'm getting a passing yield of 5.9 based on the FY 2023 NPI and the carrying value of 590. It just seems a little bit modest versus where the 10-year is for Poland. I guess, you know, that yield would be even lower if you use the independent valuation. Just any comments on where the value is in price versus the passing NPI? I'm sorry, Solomon, I'm finding it very hard to hear you. Could you just repeat that question? Maybe I'll just come back and dial back in. There's a big echo. Okay, great. Sounds like he's speaking in a bathroom. You know? I'll try again. I'll just dial back in. Thank you. Thanks, Solomon. The next question is from Fiona Buchanan with Morgans. Please go ahead. Hi, Jonathan. Hi, Fiona. How are you? Look, just wondering on the asset sales, that 560, if you could just give some, I guess, just a view on timing. Obviously, some are contracted, but the Polish in particular, just expectations around timing. And I know you... Michael mentioned, I think, the 6 assets. Does that include that asset that you've got a 50% holding in? Just if you could guide on that. Thank you. Yeah, sure. So the 560 assets. We're expecting basically an exchange of contracts, or the plan is for an exchange of contracts on the Polish portfolio in about October, November, that sort of timeframe. We're sort of hoping to sort of deal with any issues that might have arisen in diligence in September. So that's the timing on that. The other two assets in diligence have similar timeframes, so that and they're Australian assets, and that comprises the 560. The 560, the 6 portfolio, the 6 asset portfolio of assets in Poland does not include the 50% joint venture we have with Unibail for at the Ursynów Shopping Center. So and it's, yeah, so that doesn't include that asset. Great. Thank you. We have Solomon Zhang back on the line. Mr. Zhang, your line is open. Thanks, operator. Hopefully, you can hear me a bit better, Jonathan. Much better. Okay, that's good to hear. Just, just on the value of the Polish retail portfolio, I'm just getting a passing yield of 5.9 based on the NPI booked in FY 2023 and the carrying amount, which has been revised down by the indicative bid. I guess it returns a little bit modest versus where the 10-year Polish yield is. I guess, you know, if we use the independent valuation of 7.33, that would be even lower. Is the NPI sort of depressed in the short term, and where, where does that sit versus the value of assessed NPI for those assets? Any color there? Yeah. So Solomon, again, you know, you got to remember that, Poland's been quite challenged, particularly on the cost side for the NPI. So while we've seen rent growth, in line with, you know, improvements in trading and, you know, post-COVID world, they've definitely been suffering from obviously, a high inflationary environment in Poland, which is driving up service charges or outgoings as they have over there. It's driving up energy costs, as well as their own interest costs as well, which is all flowing through to suppressing that general NPI. Okay. So to be clear, Solomon, the outgoing to the cap on the outgoings is, you know, covered from the tenants, and we've exceeded that cap. Yes. Gotcha. I guess it's probably normalization assumed in the valuer's assumptions going forward. I think it's a bit of that, but I think because I think over time, you'll see those outgoings normalize a little bit. But they did jump up the way in which they've set. There was a massive jump in outgoings in the immediate aftermath of the Russian invasion of Ukraine and the gas shortage that was sort of experienced this time last year. So there is every chance, I think, that you'll see a bit more of a normalization of the outgoings as well as, yes, there would be some, you know, rent setting in the year has been done. Yeah, I don't know. I think you called out previously that the rent is linked to the EU CPI, not Poland, which is obviously higher. That is correct. That's spread. Okay, cool. Yeah. and just appreciate discussions are ongoing, which you don't want to compromise, but can you provide any high-level comments on the types of purchasers who have, you know, logged non-binding offers? Are they sort of opportunistic players or? Look, they vary a little bit. I mean, the one thing I would say is that they're typically local. And when I say local, I mean central European investors. But they sort of range from family offices, there's some German people in there as well. But the one sort of obvious thing to me is that they're mainly sort of that central European, local investors. Gotcha. Second question was just on the AFFO conversion in second half 2023. It just seems kind of weak at AUD 45 million versus AUD 70 million in the first half. Is there anything that is driving that lower? It would just be the timing, the CapEx then. Yeah. Gotcha. Just final quick one, just the debt margins across the platform, any update on where they're sitting? Any update on what, sorry? where your debt margins are. In terms of the bank margins or our underlying? The bank margins. Not really changing. Just any numbers you can provide around that? Well, I mean, for Australia, we're seeing them sort of hit about that four mark. But, Yeah, the margin. Other margins, sorry. So, no, I think the deals we've been doing or the renegotiations that we've been doing, there hasn't been that much of a shift, to be honest. So they're sticking around the 200 basis points. Thank you. Appreciate it. Thanks, Solomon. Once again, if you wish to ask a question, please press Star, then one on your telephone and wait for your name to be announced. Your next question is from Alex Prineas with Morningstar. Please go ahead. Thanks, operator, and thanks for the presentation. Just a question on the funds management business. You know, there's been another, a number of headlines out here about other funds seeing outflows. Just wondering if you can comment on which specific funds are in, you know, a state of inflow or outflow at present. So we really have the one unlisted open fund, which is the Cromwell Diversified Property Fund. And we are still seeing inflows into that fund. What about some of the other structures like, you know, Oyster and, you know, that type of thing? Yeah. So the products are a little bit different in Aussie, but to the extent they do have an open-ended fund, they're seeing sort of a similar dynamic, which is there are inflows, but they're absolutely slowing down. You know, other funds, there are outflows, particularly the more liquid funds. So, yeah, but so whilst there are inflows, the trend is definitely a declining number of inflows. Okay, thanks for that. And just another one on gearing. So, you know, gearing has stayed fairly flat so far, despite the asset sales, but, you know, you've sort of outlined that on a pro forma basis, once these deals go through, it would be back in your range. I guess I'm wondering, you know, if we see further asset devaluations, can you provide any comment there on the expectations around cap rates and asset devaluations? And I guess whether, you know, there's a prospect of, you know, if further devaluations come through and push the gearing back up again, is there sort of a plan B? Can you just comment on how you're sort of thinking about that sort of more medium-term outlook for the gearing? Yeah. The short answer is we are focused on the asset sales. We have reasonably generous covenant limits in all of our facility documents. You know, which is one of the reasons why the price is probably a little bit higher. So our gearing covenants are around the 60% mark. So we do have, even though our gearing is currently at 42%, a little bit of headroom between where our gearing sits at the moment and the covenants. So there's no real, I guess, sense of panic at this, at all. What we're really focused on is just getting within the target range, and we're gonna do that in a controlled, ordered manner. And that's what we're committed to doing. Okay, thanks for that. There are no further questions at this time. I'll hand the call back over to Dr. Weiss for closing remarks. Thank you, everybody, for your time on the call today, and we look forward to continued progress at Cromwell. Thank you. That does conclude your conference today. Thank you for participating. You may now disconnect.