Good day, welcome to the DEMIRE Deutsche Mittelstand Real Estate AG event H1 results 2021 conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Ingo Hartlief. Please go ahead, sir. Ladies and gentlemen, good morning everybody, and welcome to our half year results presentation 2021. Thank you very much for dialing in. I trust you are all well and healthy. With me here, as always, is Tim Brückner, DEMIRE's CFO, and Michael Tegeder, our Head of Investor Relations. I am looking forward to updating you about the DEMIRE's development in the first six months of the year. Let's start. Corona is still the topic of the day. Also, we perceive it in the media being more present than when speaking with our tenants. This indeed is a good sign as the increasing vaccination rate and the preparation for autumn and winter now will hopefully prevent another lockdown late this year and hence affect our performance and the one of our tenants positively. In fact, the impact of Corona has been and remains limited and is manageable for us. Our Realized Potential Strategy has proven again being the right approach to the bigger picture at what we do. After being defined and invented back in 2019, it focuses on the main goals of portfolio optimization, financial strength, operational excellence, and increased profitability. It has helped to make DEMIRE more resilient at all, even before the pandemic. All four pillars of our Realized Potential Strategy, asset management, acquisition, the financials, and the process side have contributed again to the strong performance in half year 1, 2021. Not only that, we are also benefiting from this strategic shift. It helps us now through the pandemic. That encouraged us even more to keep on going this way. Let us look together at what has happened in half year 1, 2021 from the numbers point of view. Let's start with asset management. The first half of 2021 was driven by a strong letting result. More than 120,000 sq m were let. Almost 47% of that are new rental contracts. I will give you some more context on the most exciting one, about 26,000 sq m to Amazon on a separate slide in a minute. As some of the new contracts kicking later this year, the vacancy rate increased to 10.2%. The WAL remains constant at 4.9 years, and annualized rent decreased due to the planned disposals we executed in half year one. The second, acquisitions, or better call it portfolio dynamization. We were able to close the disposals of five assets in Bremen and Cologne, gaining proceeds that exceed this last market value by 3%. Further, we signed the sale of an asset in Ansbach at a premium of 13% to the market value. The closing took already place in July 2021. In Q3 you will see it. This is a former telecom office, and after telecom left, we were able to successfully reposition the asset, attract new tenants like the local administration at the University of Applied Science before it was sold. The premium to the market value is earned by our active asset management approach. Unfortunately, after the books were closed for the half year, we closed the acquisition of the CIELO office in Frankfurt at the disclosed terms. A transaction I have presented in my last call already. This will contribute to our performance from the beginning of Q3 onwards, and we expect this to overcompensate the effect of the disposals. Financials. As a consequence from our strong operational performance, our financials have improved and look promising as well. The earning quality remains good. The profit from the rental improved despite lower income after recent disposals to EUR 34.2 million. The FFO 1 increased even stronger by 15.2% to EUR 19.4 million and leaves us very confident to reach our full year guidance. Tim will speak about the contribution of the finance team, which was again able to further improve financing costs in a minute. Processes. While the improvement in our receivable management has become rather a part of asset management than processes, we have introduced and implemented the new defined EPRA KPIs, which are available in our official report. In addition to that, we are further streamlining the property management setup and expect this to become effective towards end of the year. In line with that, we aim towards more efficiency, and we expect closer contracts to our tenants. Become part of the asset management efforts rather than being part of the processes in the future, of course. Finally, the Corona numbers. Currently, there are 4.5% or EUR 6.5 million of the rent outstanding for 2020 and 2021 since the beginning of the pandemic about one year ago. For 2021, stand alone about EUR 2.4 million of rents or 3% of our expected annual rents are outstanding. Although this sounds a lot, and of course it is a lot, we are keeping close contact to our tenants, especially those in delay or trouble. By that we have already received about EUR 0.8 million of outstanding rent from the last year in 2021, and finding ways to reduce the amount further. Now let's have a more detailed look at our KPIs and follow me on slide number 6. The annualized rent decreased slightly due to the executed disposals over the course of the last 12 months, and came in 2.9% lower at EUR 83.1 million. The like-for-like rental growth of the top 10 assets increased by 1% compared to year-end 2020. The overall like-for-like rent decreased by about 2% due to temporary vacancy. I mentioned the letting activities already. They were really strong, coming already from a very sound basis. Some of you might remember that until three years ago, our annual performance was about 80,000 sq m a year. Now we see significantly more than that even half of the time. Some of the contracts we signed will start later this year. The Amazon contract probably in the second half of 2020. Sorry, 2022. This result underlines our strong asset management performance and makes us confident towards the full year development, including towards the valuation at the year-end. The letting activities in the first half secured EUR 9.1 million annual rent income and a standalone WAL of almost 8 years. New lettings account for roughly 46% of lease state, 54% of the agreed contracts were renewals. Let's look at Amazon. We managed to strengthen our relationship with Amazon by signing a new 15 years rental contract for a distribution center, our LogPark asset in Leipzig. The distribution hub will size about 26,000 sq m, already under construction and expected to be handed over to Amazon in autumn next year. The site will be created at the former Quelle high bay warehouse, which is considered so far as structural vacancy. The existing contract, about another 20,000 sq m that was signed last year with Amazon, is extended along the new contract for another 15 years as well. Unfortunately, I cannot provide you with more numbers on this project. We agreed with Amazon to not publish it. I can tell you that we expect a material value increase when it comes to our external valuation at year-end, as the key parameters of this asset improve so significantly. The APA vacancy increased, but not on a surprise. On the one side, some of the contracts I just mentioned will become effective later this year, and in case of Amazon, next year. On the other side, the vacancy increased due to the temporary vacancy of two assets, one retail asset in Trier, and one office asset in Regensburg, which is being repositioned after Deutsche Telekom partly left. We have signed new rental contracts already that become effective over the course of the year. In line with the already reported strong asset management performance, the WAL increased slightly to 4.9 years. Let's look at the portfolio development. We have been active and successful in our asset management efforts. The development of the portfolio is moving just slightly. The CapEx spendings are fully offsetting the disposals, and the classification to asset as hold for sales makes about EUR 18 million. Considering the gains on the latest valuation, the book value of the portfolio as of end of June 2021 is pretty much the same as of end of December 2020. Now let's look deeper into the financial performance. Tim, please go along. Thank you, Ingo, and welcome also from me. As you see on page 11, we have delivered strong income from the rental of real estate of EUR 34.2 million, positive impact from some smaller disposals, low impairments, COVID-related, but probably not characteristic for the full year 2021. SG&A stable with further reduction efforts ongoing. Lower financial expenses, as Ingo already mentioned, despite a higher debt volume. All of this leading to EBT up 60% to EUR 21.1 million and funds from operations up about 15% to EUR 19.4 million. In total, despite the COVID-related effects in H1, we have delivered a strong set of results and remain well on track for the full year 2021. Based on this, as Ingo already hinted to, we confirm our guidance of EUR 80 million-EUR 82 million rental income and EUR 34.5-EUR 36.5 funds from operations. On page 12, no major effects really on the balance sheet. Stable total assets, despite the significant dividend paid in H1 this year. The dividend related NAV reduction to EUR 5.43 is partially offset by the strong results for the period as stated before. On page 13, we like to update you on our financial debt related KPIs. Our net LTV is still in line with our target ratio, but will increase temporarily after the closing of the CIELO transaction that happened in July this year. Our cost of debt is trending down further to now 1.68% on a nominal basis. Not shown on the page, but maybe important for you, furthermore, our bond covenants provide significant headroom. With this, back to you, Ingo. Thank you. As you hear, our financial performance is underpinning our performance overall. Initially, I have covered the corona effect already. It is remarkable, absolutely manageable for us. Last year's rent suspensions amounted initially total to more than 5% of target rent 2020. Over the course of 2021, about EUR 0.8 million has been repaid already, and we are in close contact with all tenants with arrears. For 2021, so far, about EUR 2.4 million or about 3% of the expected annual rent are outstanding. The effects of the second lockdown in Q1 2021 are at about 4% of outstanding rents. The majority of the affected tenants received state subsidies to pay their fixed costs, including their rent. Q2 2021 looks unfortunately not like an improvement, but it's mainly driven by only a few tenants with good rental securities. We are, of course, in close contact and intensive talks and overall optimistic to find a good solution. Hence, we have classified only EUR 0.5 million as irrevocable receivables so far, after more than EUR 3.5 million in the last year. To conclude, the total EUR 5.6 million of outstanding rent for the last two years is significant but under control. We assume to collect the outstanding rent and do not expect larger P&L effects to come. After all, we see light at the end of the tunnel with more and more people getting vaccinated and authorities that appear to prepare for the months to come. Internally, we remain focused on our costs and believe that the positive CIELO impact improved financial results, and the strong asset management performance will help us to limit the negative effect of the pandemic might cause and allows us to confirm our guidance on rental income and FFO for 2021 as Tim said. Let me end with a summary. We delivered strong results driven by a strong and motivated team and smooth running organization that make us optimistic for the further development of 2021 and beyond. Thank you very much for listening. We are now happy to answer questions you may have. Thank you. Ladies and gentlemen, if you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We'll pause for just a moment to allow everyone an opportunity to signal for questions. Once again, ladies and gentlemen, please press star 1 to ask a question. We will now take our first question from Philipp Hässler from Pareto. Your line is open. Please go ahead. Good morning. Philipp Hässler from Pareto. I have 3 questions, please. On your guidance, you've reached FFO of EUR 19.4 after the first six months, and you target between EUR 34.5 and EUR 36.5 for the full year. It looks a little bit cautious from my point of view, or do you expect any deterioration in H2? On the vacancy rate, maybe you could provide some more details. What vacancy rate do you target, or do you expect for the end of the year? Last but not least, a more general question. Maybe you could give us an update on your view of the office market. There's a lot of talk now about more work from home and lower demand for office space. Maybe you could share your view on this topic. Thank you. May I start with the last question first, Philipp? Ingo here. The development of the office market. Very good question, and you know that this is discussed controversially. At the moment, as we see it, and you see it in our letting performance of the first half year, 120,000 sq m. This is all-time high for us. We don't see a shortfall or completely decrease at the moment. In the midterm, of course, there will be more pressure on that. At the moment, we don't see any affection on our renting activities. This may have the reason in our type of properties. As you know, we are located in B and C locations, and our average rent is about EUR 8. Compared with the A locations and EUR 30 and above, we are flavor of the month if companies look for new space and look for cost reduction. The 2nd question goes to the increasing vacancy rate. It really moved up 3%. The cause for that is just 2 properties, mainly. One department store in Trier is vacant, completely vacant now. It's 11,000 sq m and EUR 1 million and more rent. We are at the moment, the former Karstadt property. We are at the moment in the phase of repositioning the asset and letting it new. This is ongoing. Another property, the 2nd one that is mainly responsible for this increase in vacancy is the asset in Regensburg. Regensburg was completely let by Deutsche Telekom. They moved out. We are also repositioning it. In this case, we have already signed a lot of contracts with the University of Regensburg, for example. We are very confident to kick this in the 2nd half of the year 2021. Our overall goal in vacancy is to get under 7%. Maybe Tim can elaborate on the FFO. Of course, the FFO question, whether the guidance is conservative, maybe first on the H1 numbers. FFO came in a bit higher than we expected, mainly driven by lower maintenance costs, a bit higher capitalization of TIs, and really very moderate impairment, as you can see from our numbers. For the second half of the year, is FFO really conservative? I would suggest only if there are no Corona effects in H2, especially impairment of any rent receivables. As you have probably seen, there's a lot of court cases ongoing, so it's not 100% clear whether tenants have the right to lower their rental charges. I guess with our FFO guidance, we remain on track and we have a chance to come up higher, but only really if there are no Corona-related effects. Okay. Thank you. Thank you, Philipp. We will now take the next question from Steven Wong from Allianz. Steven, your line is open. Please go ahead. Hi, can you hear me? Yes. You may go ahead. Okay. We were reading actually just a news report in the London commercial property market, which pointed at more environment related regulations on commercial property obviously in the U.K. market, which was going to require a lot of refurbishment expense, et cetera, to avoid those properties not being allowed to be let out. We were just curious within this context for the German market where you operate, are there these environment regulations which require you to substantially invest in refurbishing your properties? If some color around that would be really helpful. Of course, ESG is an important topic, and as you look into our portfolio, you know that it's not all grade A properties in A cities. Current regulation in Germany is, as you say, probably like in the U.K., is getting tighter. There are absolutely no restrictions on operating and leasing the properties currently. The amount that we have to invest are fully in our planning. You should not expect that there is any short or medium term negative ESG effect on our letting performance. Oh, good. Thanks. You're welcome. Once again, ladies and gentlemen, please press star one to ask a question. We will now take the next question from Clark McPherson from Clearance Capital. Your line is open. Please go ahead. Hi. Good morning. I hope you all can hear me. Just a quick question. You mentioned on the vacancy, 1 of the properties that was where DT has left. DT is still the largest, I think, proportion of your rental composition. I'm wondering what the makeup of the existing tenancies with DT is in terms of the remaining lease term, and if you have any idea on terms of what their intentions are. Thank you very much for the question. If you look at the Telekom or Generalgesellschaft, how the tenant is called officially here, how the Telekom moved within our portfolio, you can see that we reduced the share of Deutsche Telekom really significantly. We are coming from above 30% and now we are between 10% and 20% and going down further. Telekom is reliant and, of course, a good tenant. They are moving out of some of their office properties and. As you see in Ansbach, this is another Telekom property we have where the Telekom moved out. This brings us potential to reposition the properties. This already happened in the properties where they moved out, like Flensburg, like Ansbach. In some cases, we sold the property with some upside to the latest valuation, as elaborated on Ansbach, for example. In other cases, we reposition the property and bring in new tenants, usually tenants from local authorities, for example. This is what's happening in Eschborn at the moment. They moved out office part of the building. They stayed in the technical part of the building. Now we are in the phase of repositioning, and as said, we are already let some of the space to a university. We have, especially in Regensburg, we have left another five years for the technical part of the building. In the other buildings, in the bigger ones we have, Ulm and Bonn, we have WALT with around 4 years left in the greatest properties we have. If you have any other questions. Is it the WALTs of around four years, that's specifically relating to the telecom portion of the portfolio? It's kind of in line or just slightly below where the average WALT on the entire portfolio is. Exactly. Okay. Just one more question, if I may. In terms of, at a more broader level, the credit metrics, the LTV, how do you see that progressing in towards year-end, and what sort of medium to long-term targets do you have for that? We have not changed our LTV target of about 50%. As said, for the half year, we are slightly above. As we close the CIELO transaction, it will push LTV up to the range of about 55%. By year-end, we do not expect that the LTV will climb up further, but that it will trend down to our target ratio. There's also no idea really, as said before, to change our target LTV ratio, I think, which is really important to keep our bond-related credit metrics well in line and also to keep the company in overall good shape. You should be confident that we maintain a proper debt policy. Okay. Thank you. Once again, ladies and gentlemen, if you would like to ask a question, please press star 1 to ask a question. Ladies and gentlemen, once again, please press star 1 to ask a question. It appears that there are no any question at this time. I would like to turn the conference back to Mr. Hartlief for any additional or closing remarks. Thank you again for dialing in and the discussion, and stay healthy. Goodbye.