Ladies and gentlemen, welcome to the PSP Swiss Property Q1, Q3 2025 quarterly results conference call. I'm Lorenzo, the Chorus 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 a 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 Giacomo Balzarini, CEO of PSP Swiss Property. Please go ahead, sir. Good morning, and thank you, and welcome to our third quarter results release. As always, I will start with a short introduction on the main highlights and then rather quickly go into Q&A. If we look first on the letting market, we continue to be confronted with a solid letting market on prime office, especially for Zurich, Geneva, but also in Bern. We see good letting successes at good market rents. We continue to see a very high demand for prime retail in Zurich, and we did some good progress on the lettings in [San Francisco] and Lausanne. We see strong interest now in Binz and also in Füsslistrasse. We are confronted, as I said, with a very solid letting market in our prime areas. On the transaction side, we have observed quite a lot of capital increases from the funds. There is a lot of capital to be invested. On the other hand, we do not see really availabilities of assets which fit into our needs, prime assets with development potential, with value creation potential. Here we continue to be very prudent and diligent. We need to look for assets where we can really, over time, create value beside the pure yield pickup. With regard to the interest rates, as you have seen, interest rates came a little bit down further, and we see a little bit of a release on the spreads. Not that we had a strong increase in the spreads, but for Swiss terms, clearly there was a bit of a push on the spreads side from the banks. Here we see also that the refinancing from the banks is becoming a bit more, I would say, cheaper, and we see also the spreads are slightly coming down. With regard to the valuations, indications we get is that we'll see an uptick on the year-end, which is driven by letting successes and probably a little bit of yield compression between, I would say, center locations, not super prime. I think here I would expect a slight valuation uptick. It will not be super significant, but it will be a positive contribution. With regard to the guidance, we confirmed our EBITDA guidance of around 300, but it will be closer to 300 or at 300, so a little bit better than what we expected. We confirm our vacancy rate guidance around 3.5%. Also, the vacancy came up for the third quarter. Sorry, this is driven predominantly by the reclassification of the Bollwerk, the asset in Bern, but where we have good interest and we are leasing up at very interesting terms. That would end my quick introduction, and I would kindly ask to start the Q&A session. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tune to confirm that you have entered in the queue. If you wish to remove yourself from the question queue, you may press star and two. Anyone who has a question may press star and one at this time. The first question comes from the line of Steven Boumans from ABN AMRO. Please go ahead, sir. Hi, good morning, and thank you for taking my question. I have a question on leasing, specifically on Geneva. You have a maturity in Q1 and also still some non-pre-let developments in that region. Could you help me out there? How are discussions evolving? Yes, on the Q1 release of the Akasius building where Pictet will move out, we are working on two scenarios. One, we're in discussion with the tenant for a lease-up. In case this goes through, we'll predominantly move ahead with the leasing of the full building and then not working on it. If this doesn't materialize, and that's the scenario two, which we are working on parallel, is working on a complete new scenario, converting that building into a mix of residential and office. These both go in parallel, and we will decide over the next couple of months on how we progress on that. We are positive, basically, on both scenarios. If we are able to sign a term on this, this is a 50% lease. We have lined up already other interested parties, and with that, clearly, we would go in a new cycle of leasing of that as an office building. If not, we are working in parallel in a repositioning of it. Okay, clear. Maybe on the pre-letting, in the banking quarter, for example, with the developments? On the developments, we have signed a lease. If you go into the [San Francisco], we just signed the lease on the retail for the full retail space. We have further signed a lease on the office. The office leases are signed at CHF 490 per sq m, which is rather record high for Lausanne, but reflects fully the quality of that asset. We are now, I would say, close to 40% of leasing of the [San Francisco]. On the Binz, as we have opened this house of interiors, we have interest on all the office surfaces for leases. We are very positive that we can, with the full year results, latest Q1, have further letting progress. Also in the Füsslistrasse, we have signed a lease over November, December, January. This is a temp lease, but we have already signed leases which start in Q1 for the retail part. We are left with two minor surfaces which we are currently in discussion with potential tenants. At Bollwerk, as I mentioned, we continue on leasing up the space. Please keep in mind that these are all rather small surfaces and in very central locations. On the Quartier des Banques, on the two Petitot buildings, we're still working on the building permissions. I think here, as soon as we have visibility, we will then start also with the leasing discussions, but we are very positive also on that area. Okay, clear. Thank you very much. Thank you. The next question comes from the line of Tommaso Operto from UBS. Please go ahead. Good morning. Two questions. Firstly, I mean, you reclassified quite some properties into properties held for sale. I was wondering if you have a very rough timeline that you have in mind for those properties, firstly. The properties you mentioned were reclassified in the half year, and these were the volatile properties where we have received the approval for the rezoning. Here, we are really working on these new development projects, full speed with the local communality and our partner to improve the project. In parallel, as you know, we are working on an asset swap discussion, but the primary focus is really to further improve the project and then to see what is the best end game for us. In parallel, as I said, we work on an asset swap discussion. Okay, clear. Maybe also on the lease expiries for 2027, especially if I'm not mistaken, there is a big lease running out with Google, a main tenant of yours. Is there any update on that lease? Yes, it has not been prolonged yet, but the discussions in our view are very positive. We see a strong interest of Google to clearly stay at the premise, and I'm rather positive that we will be able to prolong that lease. We have still quite time to discuss it, but I have no indications of a move out of Google. Okay, thanks. Just one minor last question, if I may. Other income had quite a significant jump as compared to Q2 and Q1 this year. What's the driver there? That's the VAT refunds, especially in the Binz. Okay, got it. Thanks. Thank you. As a reminder, if you wish to register for a question, you may press star and one on your telephone. The next question comes from the line of Holger Frisch from Zürcher Kantonalbank. Please go ahead. Yes, good morning. Can you hear me? I hear you, yes. Okay, great. I have two questions, if I may. First one on the vacancy rate. You said you saw another increase in this quarter, now to 4.3%, but you're still sticking to your target of 3.5% by the year-end. What are the main drivers for the lower vacancy rate besides the sale of the Grubenstrasse property? Is it more broad-based, or is it driven by one or two lease contracts that you're expected to sign? Yes, thank you. The sale of the Grubenstrasse had basically no impact on the vacancy rate. The increase came from the reclassification of the Bollwerk. The Bollwerk is the building we have redeveloped at the main station of Bern. Once the building is finished, it has to go back into investment portfolio. As the building is not fully let, it increases the vacancy rate. This was the pickup in Q3. As I mentioned before, the demand and the appetite for the surface in Bollwerk is very healthy, so I'm not worried that we are letting that surface. The reduction comes from a lease we have signed on the Füsslistrasse. The vacancy rate will come down to this 3.5% by year-end due to the fact that we have a signed lease on Füsslistrasse. As mentioned, this is a temporary lease, but we have already signed leases which start then in Q1 on that surface. Bollwerk has nothing to do. This is, as I may, basically a cleanup of the portfolio. We have had this last piece in the Gurten site. It was an excellent project for us. We always had in mind to dispose that, but we wanted to find also the best buyer for this piece of land and asset. This is basically a pure cleanup, which, by the way, is a disposal of an investment property and not of a development property. It is not EBITDA relevant. It is a pure sale of an asset. Okay, thank you. The second question would be on the property in Lausanne plus [San Francisco]. You said you're making progress there, but you changed the status from letting in progress to evaluation of repositioning. Maybe you can share your thoughts for the change in the status. I just have to check. If we talk about the [San Francisco]. Five. Five is another one. Yes. Okay. Yeah, yeah, clear. [San Francisco] is the big Hotel De Poste, which is currently in redevelopment, where we have signed the lease for the full retail space, where we have signed another office space with a fund manager. We have signed a lease with a bank at CHF 490. [San Francisco] is opposite. It's a smaller building, which we are currently in discussion in a potential repositioning with also hotel operator. That's the reason why we have changed the status as we are working to further improve this whole area. By the way, for the interested parties, it's not in the presentation. It's in the report. Okay, thank you. That's all from my side. Thank you. The next question comes from the line of Eleanor Frew from Barclays. Please go ahead. Good morning, Giacomo. You mentioned financing spreads are improving. So how are you thinking about the progression of your average cost of debt? Yeah, if I'm saying improving, I think we are in the low single digit. It's an indication I get from the market if I see also the bond issues of the banks. I think at the moment, I wouldn't see a big change in this progression. We will be around or below 1%, depending clearly also on the duration. The rather strong increase of the spreads, I have the feeling for the good risks is not continuing. I think that's a bit a feeling I have received over the last few weeks looking at the issuances and leasing into the banks. I would say materially, we are around or below this 1%. Clearly, we did the floater at the 58. The next one will be maturing in the spring. Yes, in Swiss franc issuance, we should be able to stay below the 1%. Great, thanks. Inflation is obviously quite low in Switzerland. Does that mean that showing top-line growth next year is going to be a bit of a challenge? It's a big word. It's not big. It's 0.1%. We were also hoping of a few basis points more because clearly in the model, it helps. I would say we have no inflation adjustment. Clearly, the finishing of the sites of development projects which will deliver rental income are then offset by new developments which will start. I would expect a flat top-line development from today's point of view as we have anticipated, but I still expect an increased EBITDA due to one to other projects we are working on. Let me come back on that with the full year results. To your question, yes, I would say CPI 0.1% is neglectable. Great. Thanks very much. Thank you. The next question comes from the line of Ken Kagerer from ZKB. Please go ahead. Yes, good morning, everyone. My first question is with regards to the lease expiries over the next 12 - 24 months. You mentioned already a fruitful discussion with Google. Where do you stand with the other tenants, please? If you don't mind, I would like to take up these next 12 months with full year, but for 2026, I'm very confident we don't see big lease expiries. With regard to Google, I would circle the fruitful discussions in the indications I receive and my perception. With regard to 2027, it's two years ahead. Clearly, we are working on the other items. If you don't mind, I would like to take that up always a year in advance with the full year results. Then we have also better visibility. As you know, normally we have six-month terminations, and now it's more gossip, and then it's more concrete. Sure. Could you remind us where the structural vacancy rate in your portfolio is according to your partner? I think it's five for the quarter. Okay, thank you. Another question with regards to the Füsslistrasse. Did I understand it correctly that you have a permanent lease contract following the interimistic solution now? If so, what would be the rental level that you could achieve? We have two. We have split the whole part in four areas, two bigger ones. We have signed the lease, and we are above CHF 2,000 per sq m, starting, if I'm not misreading, Q1. And we are working on the other two. Thank you. Maybe last one, could you split the like-for-like growth for retail, gastro, and office just as an indication? No, I think it's something looking at overall, I can look into it and come back perhaps with the full years. It's something we typically don't split. We have looked at historically. Clearly, when we have high-street retail, it's often a disproportional high like-for-like, but then concentrated on one or two leases. We typically look at the full building on this like-for-like, but I can try to look into it. Typically, I would say in a nutshell, you can say if you have an office building where the tenant or an office tenant which prolongs after five years, it's pretty much flat. It's after 10 years where you have the first rate bumps. The high-street retail is obviously the most dynamic one. If you have the restaurants, I would see here, I would say it's a bit in between because it's in between the high-street retail and the office. Excellent. Thank you very much. Thank you. The next question comes from the line of Bart Gysens from Morgan Stanley. Please go ahead. Yeah, hi, morning. Just want to have a quick follow-up on this APRA like-for-like rental growth. We have seen a bit of a slowdown over the last couple of quarters in line with the inflation picture as you highlighted. We had a good bump in the third quarter, right, after APRA like-for-like change was 2.5% according to your table. It looks like that has flattered a bit, the nine-month number to 1.6%. That 2.5%, is that just kind of a bit of a one-off? Can you help us understand that 2.5% a bit and to what extent that is relevant? Are we going to be kind of the gravitational pull of indexation going down? Is that going to be more important? Thank you. Thank you, Bart. If I'm not mistaken, I have to check it up. In the first quarter, we had a cost effect pretty significant on the rue du marché with the property taxes, which we had a release of tax on the buildings of five years. This had a significant impact on that quarter, which then came through the rental income line. We had a bit of an inflation of the Q1 number compared then to Q2 and Q3. All right. Okay, thank you. Thank you. Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Giacomo Balzarini for any closing remarks. Yes, thank you to everybody for this call and your interest. We look forward to further interactions on the Q3 and wish you all a Merry Christmas at this point. It is early. Talk to each other in February. Thank you. Bye-bye. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your line. Goodbye.