Good morning, ladies and gentlemen, and welcome to the Branicks Group AG Half Year Results 2025. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Jasmin Dentz. Thank you very much. Welcome, everybody, to our Half Year Results Presentation for 2025. This call will also be webcast live on branicksgroup.com, and a replay of the call will be available on our website shortly after the end of the call. Our CEO, Sonja Wärntges, will now give you an overview of our financials, our guidance, and the current market developments. After the presentation, we will be happy to take your questions. Please note that management comments during this call will include forward-looking statements, which involve risks and uncertainties. For a discussion of risk factors, I encourage you to review the SAF and the Safe Harbor statement contained in today's presentation. All documents related to our Half Year 2025 reporting have been made available on our website. I will now turn the call over to Sonja for her remarks. Sonja, please, the floor is yours. Thank you, Jasmin. Good morning, ladies and gentlemen. Also a warm welcome from my side to Branicks' Q2 2025 results conference call. Today, as usual, I'm joined by my colleagues from the Accounting and Investor Relations Department. I will give you an overview on what has been achieved in the last quarter and present you our key numbers as well as our unchanged outlook for 2025. At the end of the call, we will also offer you the possibility to raise your questions. Dear all, in terms of a rough overview about what we have delivered during the first half of the year 2025, I would like to highlight the topics mentioned on slide number two. First of all, again, we achieved major milestones in terms of our financial consolidation and the reduction of our liabilities. In total, we paid debt promissory notes of EUR 225 million in the first half of the year 2025 and an additional EUR 68 million at the end of July. Our focus remains on further reducing liabilities with a continued concentration on our covenant as well as on our liquidity situation. With regards to our external disposal, we made good progress during the second quarter. During the first half of the year, we managed to sell 10 assets out of our commercial portfolio for a total of EUR 131 million. Out of these transactions, a total of EUR 82 million is already closed. The remaining volume is expected to be closed during the second half of this year. We are confident that Branicks again will be an active participant in a still challenging transaction market in 2025 and will stick to our EUR 600 million- EUR 800 million disposal target. The transaction pipeline is well-filled, and our transaction teams are working successfully in order to realize the deals. With regards to our commercial portfolio, it continues to be a sustainable and predictable cash flow provider. The ongoing portfolio optimization results in a like-for-like rental growth of 1%. At the same time, we managed to increase the average rent from EUR 9.6 per sqm to EUR 10.2 per sqm. With regards to our logistics asset class, the largest single letting in 2025 was a 10-year contract with the organic food company Ichi Danish MBH for 26,699 sqm in the Greater Bremen area. Other major lettings in the logistics sector included a successful new letting contract for our development project, GreenBiz Park in Earrings. In my view, these new and follow-up lettings in 2025 prove that customer proximity and attractive high-quality properties, particularly in terms of sustainability criteria, are in demand even in a challenging market environment and are leading to dynamic business. With EUR 8.4 billion assets under management, our institutional business remains the second strong pillar of our business model, recording a slight like-for-like rental growth during the reporting period compared to prior years. Thanks to our strong and solid setup within this segment, we are ready to benefit from a market upswing, particularly with regards to increasing transaction fees. Last but not least, we continue to be cost-sensitive and manage to generate a 14.3% OpEx reduction compared to last year's first half of the year. With regards to our financial maturities profile, we continue to pursue our deleveraging path. After already having reduced our financial liabilities in total by EUR 667 million in 2024, we achieved further milestones during the first half of the year 2025. As promised, we paid back all of our 225 promissory notes. This means that for the remaining year, we only have to roll further an amount of EUR 77 million, and that includes about EUR 5 million scheduled amortization. The remainder consists of three real estate financings where we are already in advanced negotiations. In view of our EUR 400 million green bond, which is due on the 22nd of September 2026, we are exploiting different options in this regard. Nevertheless, it is too soon to talk about concrete steps. Let me underline in this context that our focus to deleverage our balance sheet while monitoring our green bond covenant remains one of our highest priorities. We improved our bond LTV from 58.2% as of the end of March 2025 to 57.4%, enlarging the hedge room to the covenant level. It is expected to improve further due to disposals and the already achieved redemption of the 2025 promissory notes. We are aiming to reduce our LTV further in the mid-term. We also improved the ICR covenant from 2.1 as of the end of March to 2.3, also widening the hedge room to the 1.8 threshold. In terms of our average interest rate, it is important to underline that over the course of the quarter and due to the redemption of the bridge, as well as due to additional optimizations, we continuously improved this KPI during the recent quarters from 3.36% as of the end of March 2024 to 2.4% as of the end of June 2025. Let's now take a deeper look at the results of our real estate platform shown on slide number four. Our like-for-like rental income remains strong. The like-for-like rental income rose by 0.9% for the entire portfolio under management. While the commercial portfolio shows an increase of 1%, we also saw a slight plus of 0.9% within the institutional business. The rent increases were realized primarily through indexation. In terms of sqms, the letting performance of our platform increased in the first half of the year by 18.7% year-on-year to 214,700 sqms. The total letting performance for the first half of the year shows 104,000 sqm new leases and 110,700 sqm renewals of existing leases. In total, assets under management with EUR 11.1 billion were slightly down compared to last year, mostly due to disposals which became effective in the course of the year. The commercial portfolio saw a decrease from EUR 3.6 billion down to EUR 2.7 billion, which was a direct result of the disposal activities year-on-year. Institutional business was also affected by the termination of a larger property management mandate. As of today, only 2.1% of the total annualized rental income would expire in 2025 if these contracts are not prolonged. Over 85% of annualized rental income has a lease length until 2027 and longer. For larger expiry in 2025 and 2026, we already proactively started negotiations with the tenants. On our next slide, let me highlight the development of our main income stream. Net rental income fell to EUR 63.4 million, primarily because we successfully sold rental-generating assets. Income from associated companies that mainly consisted of deferred income from puncture decreased to EUR 2.1 million. The real estate management fees remain stable at EUR 20.8 million, thereof EUR 19.8 million recurring assets and property management fees, and EUR 1.9 million transaction-related fees. Our income from rents and managed fees on the platform with EUR 84.2 million were slightly lower year-on-year. Nevertheless, still showing a very high degree of recurring income stream. Now let's take a closer look on the development of the FFO year-on-year that is overall in line with our expectations. The net rental income shows a decrease of EUR 13.7 million due to disposals. The share of the profit from associates decreased by EUR 1.3 million due to the sale of the VIB Retail Balance I at the end of 2024. Our OpEx development had a positive contribution to our FFO, showing results from our Performance 2024 program. The increase of our adjusted net interest results amounted to EUR 19 million. This is an immediate positive effect from the continued reduction of our liabilities. In total, and to sum it up, we see the FFO amounting to EUR 20.7 million after the first six months of the business year. That is exactly in line with what we expect with regards to our full year guidance range. In view of our expectations for the current business year, we stick to our guidance. We expect gross rental income in the range from EUR 125 million- EUR 135 million and real estate management fees between EUR 50 million- EUR 60 million. The FFO1 after minorities and before taxes of EUR 40 million- EUR 55 million. With regards to acquisitions, we foresee no acquisitions for our on-balance sheet activities and EUR 100 million- EUR 200 million within our institutional business sector. The disposal guidance lays a range of EUR 600 million- EUR 800 million, whereas EUR 500 million- EUR 600 million in our commercial portfolio and EUR 100 million- EUR 200 million in our institutional business. Beyond our guidance for the current year, our midterm ambition remains unchanged. We strive to transform Branicks Group towards a profitable ESG-focused and value-generating asset expert to sustainably strengthen cash flow and financial position. We have a clear midterm ambition to further reduce our debt, which will be along with improving the respective KPIs. Having said that, I would like to hand over to the moderator for your question. Ladies and gentlemen, if you would like to ask a question now, please press nine and the star key on your telephone keypad. If you would like to withdraw your question, please press three and star. The first question comes from Stefan Scharff, SRC Research. Please go ahead. Your line is open. Good morning, Sonja. Here's Stefan. My first question is about the EPRA vacancy rate. It's a bit up from 7%- 8% in your portfolio, but you had a very good letting performance in the first half of the year. Perhaps you can explain here a bit more. I assume the letting was more in the institutional business. Good morning, Stefan. No, that's not the case. The letting was as well in the commercial portfolio as in the institutional business. Okay, but the vacancy rate is still a bit higher than it was before, from 7.3%- 8.3% or something like this. You mentioned in your debt maturity profile that there is a bank loan about EUR 72 million and still open. Do you assume that this is finished during the third quarter? How do you judge at the moment the bank landscape and the willingness for commercial real estate loans? How is the situation if the asset is not a green asset? Okay, to the first question. There is a timing difference, so to say, in the letting performance and in the vacancy rate. Yeah, because we do the, as you can imagine, we do the letting, and then after some months, when the letting is effective, the vacancy rate goes down. At the end of the day, we mostly see renewals here. As said in the speech before, the renewals do not have an effect on the vacancy rate. That's the main cause here. From the bank side, yes, you are right. We have EUR 77 million open, thereof EUR 5 million are normal amortization. The other number reflects three refinancing we have to do during the last months here. One is due in September, so we already finished this negotiation very successfully. The other two are due at the end of the year. Also, there we are in negotiations with different banks. The most important or the most useful thing would be to refinance it with the existing bank. That's in most cases what we are doing. We also ask other banks to get a good offer. At the end of the day, we see no problem here. The banks are very supportive here. The last refinancing we have done without any equity bringing in, so that's in a good shape there. Okay. My next question is about the refinancing of the EUR 400 million green bond, which is due in about one year, in September 2026. My best assumption for the moment would be that you might search to bring down the debt and also to perhaps make a prolongation offer to the existing bondholders and also perhaps to replace a part of it by bank loans. It's a mix of all and giving a prolongation offer to the existing shareholders, which naturally with a higher interest rate. Is this the most likely case or the most likely scenario for the moment? As also said in the speech, we are here in different thoughts, but we don't have a final solution found here. At the end of the day, we are proving different options, and maybe it would be a mix of some options, as you have said. I could not say anything to this today. I think you have to keep in mind that we have paid back or refinanced nearly EUR 800 million over the last one and a half years. I think this shows that we are able to negotiate such things and find solutions. That is the case we are expecting also for the financial liabilities we have upfront in the next 12 to 18 months. Okay. My last question is a very, very general question about the office market. In my view, we still have not too much transactions. In my view, the German economy is still sluggish. The political situation all over Europe is still shaky, and that makes it not easier. What's your impression for the moment? What's your best case or your best scenario? What to happen, let's say, for the second half of the year and also for 2026? You expect a strong upswing or it's more a gradual improvement? Yeah, that's an interesting question. The crystal ball is still difficult to have here or to see. At the end of the day, as you can read in the newspapers, the problem is that our chancellor is expected to be a man for the outside negotiations, but not for the inside negotiations in Germany. The uncertainty is still there, and this uncertainty is difficult for the German business. Within this uncertainty, as well, office as well as logistics as well as retail is still difficult. We see a lot of interest in letting as well as in sales from the outside. There are outside guys who let or who want to do transactions. At the end of the day, the transaction prices for offices are not there where they should be in our perspective. Therefore, I think the transaction market still remains not very busy over the next weeks. I think at the end of the year, some of the guys say, "Oh, the end of the year is coming. We had some targets. We have to do something." That's normal, as always. I think this will be also this year the case. It is still difficult, and it's not as fast as we have expected and the market has expected, and the uncertainty does not help here. At the end of the day, as you can see in the letting, there is something going on, but it's difficult and it's time-consuming, and you have to negotiate very hard to do a good deal. That's definitely the case. Okay. I see. Okay. Thank you very much. Thank you. The next question comes from Markus Schmitt, ODDO BHF. Please go ahead. Yes, good morning. Thanks for taking the question. I have just one. This concerns actually the earlier question on the bond maturity and the VIB AGM resolution. As part of the AGM, it was said that VIB is allowed to issue material debt. Is your plan now that VIB issues debt via bond or Schuldschein or whatsoever in order to acquire additional assets from Branicks so that Branicks can meet the 2026 bond maturity, or that maybe VIB enters again into intercompany financing with Branicks to repay the bond? Would be helpful to receive some comments what the likely pathway is for meeting a bond maturity next year and if VIB will play a role here. Thank you. Good morning. Thank you for the question. As said, we are in discussions here. We are in the thinking process, and we don't have a final solution here yet. I cannot say anything to this. Sorry for that. Okay, yeah. Thank you very much. The next question comes from Antonio Casari, Northlight. Please go ahead. Hi, good morning. Thank you very much for taking my question. First question is linked to the disposal target for the commercial portfolio of EUR 500- EUR 600 million. First, just to confirm, is that a signed amount or a closed amount? Secondly, can you help us bridge from the EUR 130 million in the first half to the EUR 500 and EUR 600 million? I noticed that in the current trading update, you sold two or three assets for EUR 24 million already since Q2. In addition to that, you mentioned you signed two logistics assets that you expect to close in late Q3 or early Q4. It would be interesting to have some indication on the amount of proceeds expected on these two logistics assets. In general, it would be good to have some column to bridge to reach the disposal target for the commercial portfolio. I have another question. Thank you. Hello? Good morning. Hello. Do you hear me? Yeah. Okay. Now it's functioning. Okay. Thank you for your question. At the end of the day, today we have around EUR 130 million in place. The EUR 600 million is the signing number. We always give our targets to signings. We are in negotiations of the EUR 600 million. We are very confident that we will get the EUR 600 million until the end of the year. is the amount of negotiation EUR 500 million or EUR 600 million? Pardon? The amount you said you are in negotiation is? Yeah. We have today, we have finalized EUR 130 million, roundabout, and the goal is EUR 600 million. We are in negotiations for the remaining EUR 470 million, still in final discussions. At the end of the day, we are very confident that we get the EUR 600 million until the end of December. Can you give us an indication on the size of the two logistics assets signed already? Yeah, we have signed two assets with around EUR 30 million. Do you mean them, or? I mean in the Q2 report, there is the disposal for EUR 24 million in the events post after closing of Q2. On top of that, you said you signed the subsequent event. Yeah. In addition, two notifications have been signed for the sale of two logistics properties, the transfer of concession. I'm with you. These are EUR 170 million. Okay. The two logistics? Yeah. Okay. In total, half of the signing target is done there. Okay, that's what I wanted to achieve. Okay. The second point is liquidity. You have EUR 66 million of cash at the end of Q2, of which, do I understand correctly, only EUR 38 million are now restricted? Yes, that's right. Which were EUR 66 million as of Q1. You managed to get EUR 28 million unrestricted. Is that correct? That's correct, yes. Okay. Can you give us what happened there? An explanation? Yeah, this was a guarantee, so to say. This guarantee was that the course of this guarantee has finished, and the guarantee is free now. Therefore, it was not restricted. Still, you paid EUR 68 million of promissory notes at the end of July. Considering the amount of liquidity and even potentially the EUR 24 million of proceeds from the disposal of the offices, the cash balance is quite tight. What's the cash balance pro forma for the repayment of the EUR 68 million of promissory notes, or did you raise some debt to repay those promissory notes? No, we didn't raise debt for this promissory note. It was paid back from our operational liquidity. Okay. Very last question. I saw that you raised EUR 58 million of new financing in the first half of the year from the cash flow again in the financial statements. Are those mortgages on unencumbered assets, or? No, these are the refinancings from our real estate, from the assets, so to say. We show them, so to call, brutal. We pay back the existing liability and get the new one in. These are only road financing, no additional financing. Yes, road financing. Okay. Yes. Perfect. Thank you very much for taking my questions. Thank you. Okay, ladies and gentlemen, before you proceed to the next questionnaire, just as a quick reminder, if you would still like to raise a question, please press nine and the star key on your telephone keypad. The next question at this point comes from Thomas Neuhold, Kepler Cheuvreux. Please go ahead. Yes, good morning. Thanks for the presentation. I'm taking my question. I have three questions. The first one is on OPEX. You made very good progress on bringing down OPEX further in the first half. What is the outlook for the OPEX development, and do you see further potential to cut costs? That's the first question, and I think let's take them one by one as you do. Good morning. We expect for the total year roundabout EUR 54 million in total for the OPEX costs. Thank you. The next question is on the like-for-like rental growth. Can you provide more color on what was driving this like-for-like rental growth, specifically which part comes from inflation adjustment, which from vacancy change, and which from the reletting performance? It's around about 50% of each of it. Yes, thank you. My last question is on financing costs. I was wondering if you can give us an indication what kind of spreads the banks are currently demanding for secured financing, and if there have been any changes in the recent months versus before. Yeah, we are in the range of around about 3.7%- 4.3% for the refinancings. Okay, thanks a lot. That's it. Thank you. The next question comes from [Özgün Konak], RBI. Please go ahead. Good morning. Thank you for the presentation and taking my question. I have only one question related to the maturities. Could you please explain also the plans for the maturing promissory notes in 2026 over EUR 100 million? Thank you. Good morning. The plans are to pay them back. I mean, also with the sources, like with the refinancing or with the disposals or a combination if there is a bridge in order to conclude the payments. As I said, it's the same discussion as for the bond. We are in discussions, or we are improving what can be done and improving the options. At the end of the day, it will come from, I think, more or less operational business. At the moment, we have not finalized the 2026 plan. That's what I can say at the moment. Thank you. The next question comes from Niki Kouzmanov, Jefferies. Please go ahead. Oh, I'm afraid we can't hear you. Can you hear me now? Hello? Can you hear me now? Yes, better, better. Okay. Sorry. It's my mic. I've had to change the headset. Thank you very much for the time and taking my question. I guess I wanted to ask around the disposal target, the EUR 500 million, EUR 600 million of the commercial portfolio. If that's achieved this year, and I don't know how much bank debt would be associated with those assets, but use of those proceeds, there's only the sort of the EUR 144 million left of Schuldschein in the next year before the bonds, so the majority of it before the bonds. Can we start thinking about maybe some sort of a dividend that can be paid or anything like that? I know at the AGM a couple of weeks ago, VIB, for example, elected for a dividend. Yes, very small. I'm just thinking about the size of the proceeds versus the upcoming maturities is pretty significant. Other than that paydown, is it also time to think about maybe a distribution to shareholders as well? Thank you. Good morning, and thank you for the question. As said at the annual meeting, we want to be a dividend-paying company. I don't think that we could be one next year. We have to work on our liabilities, and there are some high liabilities to pay back next year. Therefore, this would be the first priority. We would like to come back to net profit at the end of 2026 and later. I think then we will be back to pay dividends, but I don't expect it for next year. Understood. Okay, thank you. Thank you. The next question comes from Philipp Kaiser, Warburg Research. Your line is open. Hello, everyone. Thanks for the presentation and for taking my question. Just one question regarding your loan-to-value. You already sold a bunch of assets. You already paid down a significant amount of debt, but your LTV marginally moved downwards. What needs to happen? What needs to be done that we can see a significant reduction of the LTV towards beyond the target goal of around 50% or even below 50%? Yeah, that's a good question. Good morning. At the end of the day, it all remains on the evaluation. I think we have reached a peak end of last year. Also, the transaction markets are not there where we wanted them to be or what we have expected. I stay with the idea that the evaluations will not extendedly go down going forward. I think that's a good sign for us and also for the relating market prices coming from these evaluations in the market. That's the main goal, to get the evaluations up or to get them to stay where they are. It all depends on the letting and on the interest in German assets, so to say. To come back to my speech, definitely, we are not there where we have expected at the beginning of the year. What we see is that foreign investors are having more and more interest in the German market, and the transaction market is done by foreign investors, so to say. I think, to come back, the evaluation will stay on this level and hopefully go a little bit up at the end of the year or beginning of next year in general. Then we will see the LTV going down. That's the idea of what we have on this side. Okay. Thanks a lot. Understood. All from my side. Thank you. Okay. Thank you very much, everyone. As there are no further questions at this point, I'd like to hand it back to Jasmin Dentz. Perfect. Thank you so much. This concludes our Q&A session and our call. Thank you so much for joining us today. Our next IR highlight will be the publication of our Q3 results on November 6. Stay healthy and let's talk again soon. Thank you. Bye.