Ladies and gentlemen, welcome to the FY 2020 results presentation of Grand City Properties S.A. At our customers' request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. If any participant has difficulty hearing the conference, please press star key followed by zero on your telephone for operator assistance. I will now hand you over to Ms. Katrin Petersen, Head of Communications, who will start the meeting today. Please go ahead. Yes, thank you. Hello, good morning to everyone. Thank you for joining us today. In the name of Grand City Properties, I kindly welcome you to our results call for the full year of 2020. With me today are CEO and CFO, Refael Zamir, Chairman of the Board of Directors, Christian Windfuhr, COO, Sebastian Remmert-Heitmann, and Senior Financial Analyst, Michael Bar-Yosef. Christian Windfuhr and Refael Zamir will guide you through the results presentation directly after this introduction. You will find the results presentation for this call on the company website in the section Investor Relations under Publications. The presentation of the results will be followed by a session with questions and answers. The management is available for your questions. We have already asked you in advance to send us your questions by email. Please continue to send us your questions so that we can include them accordingly. Please send your questions to the following email address: info@grandcity.lu. I repeat, the email address for your questions is info@grandcity.lu. Thank you. With this, I hand you over to Christian Windfuhr to begin with the presentation today. Thank you very much, Katrin. A warm welcome also from my side for our full year 2020 financial report presentation. Overall, the year 2020 clearly was a challenging year. The pandemic has presented severe challenges to all of us. I am pleased to say that we were able to prove our ability to perform well under stress, thanks to our resilient portfolio and a team that was not only willing and able to adapt to the changes, but even delivered improved performance under difficult circumstances. We will elaborate on this a little bit later in the presentation. Already now, a great word of thanks to our team for their tireless effort to keep the business performing. Before we start with our presentation and present you this year's results, I would like to update you that this morning, Grand City Properties Board has resolved to launch a share buyback program with a volume of up to EUR 200 million. Last month, we launched a share buyback tender with a capacity of up to over EUR 250 million and only EUR 70 million were tendered. We decided to continue with the share buyback, this time with an ongoing program, which will enable us to gradually buy back our shares in the market and will consider to make an additional tender offer at a later stage. We view the share buyback program as a reinvestment into our company, resulting in a high equity investment, which shall provide a high and stable return on a per share basis in addition to our ongoing acquisitions. Our share is trading below our book value, while we see property disposals at premium to book value. This case was reaffirmed with the disposals we have signed over the weekend, where we are selling non-core properties amounting to approximately EUR 200 million, located across small and medium cities, mainly in Eastern Germany. The disposal does not only enhance our equity base, also supports increasing quality of our portfolio. We seek to benefit from the disconnection between the value of the underlying business and the capital markets. The buyback is in line with our conservative financial policy and should not impact negatively our credit rating. At this stage, our guidance does not include the share buyback program effect, We see this as additional potential. Now let me get back to the presentation, where on slide four, you can see the highlights of the year 2020. We meet our financial and our operational expectations in line with the guidance we have provided. I want to draw your attention to a revision in our FFO I definition, which now is calculated after the perpetual note attribution. The former FFO I is defined as FFO before perpetual note attribution. In the details, you will note that we have been able to deliver a like-for-like rental growth of 1.8% in spite of having to cope with the Berlin rental cap, about which we will talk a bit later in the presentation. Based on the fact that we have improved the quality of our portfolio by disposals of non-strategic assets, revenue, rental income, and net profit have been lower than during the previous year. However, EBITDA and FFO I per share remained stable. We are convinced that our activities have strengthened the quality of our portfolio significantly, ensuring a strong basis for further equities growth in the mid and long term. Allow me to mention already here that in spite of a reduction in number of units by almost 17% against end of 2019, we were able to slightly increase the value of our investment property, which is the result of acquiring properties in strong locations while disposing in weaker ones by creating value through organic growth. Let me carry on with slide five, highlighting our business profitability through optimizing of the financial platform on the one hand, equities capital recycling on the other hand. Through active financial and liability management, we were able to reduce our cost of debt further, optimize our financial platform, create higher FFO profitability. Our cost of debt has been reduced to 1% currently from 1.3% in December 2019, is supported by a EUR 1 billion seven-year grade bond issuance at 0.125%, the lowest coupon we have issued ever. Furthermore, the cost of our perpetual notes has reduced significantly through the issuance of a 1.5% note in December 2020, replacing our perpetual notes of 3.75% issued in 2015. Other improvements of our business profitability came from the equities capital recycling, which resulted in an improved portfolio quality. We have disposed EUR 970 million worth of non-core properties at a premium of around 6% above net book value. A good portion of this fund has been recycled into approximately EUR 600 million worth of quality stable assets and to fund our EUR 250 million buyback program. Our share buyback, which was executed in February 2021 at a discount to growing NAV per share, additionally supports our long-term shareholder value creation and is an equities use of the capital recycled. The program launched this morning will support this internal growth at attractive pricing. With this, let me hand you over to Refael Zamir. Thank you, Christian. Slide six, about our operational profitability. We can see that our like-for-like net rents growth was 1.8% against previous year, 0.9% coming from in-place rent growth and 0.9% coming from occupancy growth. We have reduced our vacancy, which as December 2020 is 6.2%, the best ever in our corporate history. As a result of the temporary muted acquisition and accelerated disposals during the beginning of the pandemic, our revenue came a bit down than previous year. Additionally, acquisitions include properties in the pre-letting stage, which did not produce substantial rental income during the year and will support internal rental growth in the upcoming periods. Our disposals were completed during the reporting year, with a larger amount completed towards fourth quarter of 2020. Therefore, net rental income for 2020 does not include a full year effect of the properties disposed. As a result, the net rental income monthly annualized run rate as of December 2020, excluding net rental income from assets held for sale, is EUR 340 million. Lower than the amount reported for 2020. However, through cost management and strong business efficiency during this period, we were able to deliver an adjusted EBITDA slightly above 2019. Increased profitability and internal growth were achieved to a good part also through disposals of non-core properties with higher operational costs. Total profit for 2020 amounted to EUR 449 million compared to EUR 493 million in 2019. The decrease in the profit is primarily the result of lower property valuation, which amounted to EUR 343 million in 2020, compared to just EUR 400 million in 2019. In 2020, we record positive and stable valuation amounting to 4% like-for-like value increase net of CapEx. On slide seven, we see our FFO I, which in spite of the property disposals, has grown by 2% in 2020. We now include the perpetual note attribution as part of our FFO I consideration. We have also update our dividend policy from 2021 onwards to 75% of FFO I per share. The dividend for 2020 to be paid in 2021 still follows our previous dividend policy, 65% of the FFO I per share before perpetual note attribution. Accordingly, subject to AGM approval, the dividend policy results in a dividend per share for the year 2020 of EUR 0.82, reflecting a high dividend yield of 4%. Our core profitability growth was further improved, and we generate a high FFO I yield of 5.2%, providing shareholders with an attractive investment proposition. On the next slide, eight, we present our FFO2, which includes the results from disposal of properties. Through value-accretive disposal of non-core and mature properties, we were able to crystallize gain, generating a profit margin of 45% over the total cost and 6% premium above book value, and freeing up capital, which can be directed towards high-quality acquisition with high upside potential. On slide nine, we present for the first time our new EPRA NAV metrics, EPRA NDV, EPRA NTA, and EPRA NRV, following the EPRA best practice recommendation. For more information about the EPRA KPIs, as well as a comparison to the EPRA NAV and EPRA NNNAV, please see the slide in the appendices. According to EPRA, the EPRA NRV assumes that entities never dispose assets and aim to represent the value required to rebuild the entity. Therefore, the fair tax is fully hedged back, and real estate transfer tax is also fully hedged back. The EPRA NRV for 2020 is EUR 27.8 per share, up from EUR 27.2 in 2019. EPRA NTA assumes that entity buy and sell assets, thereby crystallizing certain parts of the unavoidable deferred tax and triggering purchase costs. Accordingly, we have classified properties into three categories which may be disposed in the long term. Investment property held for sale, properties classified in portfolio as others, and development rights in Germany. With the exception of the asset held for sale, we do not expect to dispose all those properties, but conservatively exclude them from the NTA. With the remaining portfolio, we aim to continue and hold long-term. The exclusion amount to 17% in terms of investment property, including asset held for sale, and for those properties, we do not head back the deferred tax nor adjust for the real estate transfer tax. The NTA for 2020 is at EUR 26.5 per share, up from EUR 25.9 per share in 2019. The increase in the NTA, as well in all of the other EPRA KPIs, is offset by the EUR 0.82 dividend distribution in 2020 for the year 2019. As to EPRA NDV, which represents the shareholder's value under disposal scenario, deferred tax and financial instruments are calculated to the full extent of their liability, net of any resolved tax. Therefore, there are no adjustments besides fair value measurement of debt. Accordingly, the EPRA NDV is at EUR 20.1 per share in 2020, up from EUR 19.8 in 2019. The EPRA NAV, as we presented previously, calculated using previously methodology, is EUR 25.2 per share in 2020, up from EUR 24.5 in 2019. Thank you, and now let me hand back to Christian. Thank you. Let us move on to slide 11 to our investment property, showing our enhanced portfolio quality. As mentioned already in the beginning of our call, investment property has gone up slightly to over EUR 8 billion, in spite of an almost 17% reduction in number of units against December 2019. The portfolio continues to grow in spite of the cumulative disposals of EUR 2 billion in the last three years. In terms of valuation parameters, we were able to improve and strengthen most of them, namely the rent multiple to 22.2 times from 20.4 times at end of last year, and value per square meter by 20% to EUR 1,858. The average discount rate and the average cap rate are 5.1% and 4.1%, respectively. The valuation like-for-like was 4% net of CapEx or 5% including CapEx. The decrease in the discount and cap rate is a result of the improvement of our portfolio, supported by the strong dynamics in the market. We have seen valuation uplifts across our portfolio, in particular in Berlin, London, North Rhine-Westphalia, Mannheim, and Mainz. Our acquisition strategy remains to acquire properties in densely populated areas and major cities with upside potential through rental income improvements and operating cost reductions. Berlin, North Rhine-Westphalia, Dresden, Leipzig, Halle, and London remain our stronger locations, plus several other strong German cities such as Hamburg, Bremen, Mannheim, Frankfurt, Nuremberg, Fürth, Munich, and others. Berlin, on slide 13, makes up 26% of our portfolio value and 16% of our portfolio rent. 70% of our Berlin portfolio is located in top-tier locations, including Charlottenburg, Wilmersdorf, Mitte, Friedrichshain, and others, and the remainder is in affordable locations, primarily in Reinickendorf, Treptow, Köpenick, and Marzahn-Hellersdorf. In North Rhine-Westphalia, Germany's largest metropolitan area, we have 17% of our portfolio, with Cologne being the strongest in this location, one-third, and the rest distributed throughout the region's strong cities. Dresden, Leipzig, Halle, Germany's dynamic eastern cities with strong fundamentals, make up our quality east portfolio with 13% of our portfolio and a further 5% of our portfolio are in Hamburg and Bremen, Germany's largest northern cities. Our quality London portfolio on slide 15 makes up 19% of our portfolio and is well distributed in the strong suburbs of London, with 85% of these properties situated within short walking distance to Underground or overground stations. Presently, we have around 360,000 units, including free marketed units, and we have been able to bring these properties from double-digit vacancy to 8% vacancy as of December 2020. Our low entry point into the London residential market is both embedding a high upside and is also very defensive on valuation and cash flow and gives us a strong buffer to market transaction level. The portfolio rental income potential is presented in slide 16. Our current annualized rental income of EUR 340 million at the end of 2020 has an upside potential of 25%, which amounts to EUR 85 million, to reach its full market potential, driven by rent and occupancy growth, once the Berlin rental cap will be eliminated. Assuming the rent freeze in Berlin will remain, we still have 18% reversionary potential. This means that we have a strong upside potential for rent increases to market levels with limited downside risk. Only 3% of our units are subject to rent restrictions from subsidization. The average residential tenancy length is around nine years, which basically reflects the period needed to capture this potential without additional future development in the rental market. Our maintenance and repositioning CapEx on slide 17 was almost EUR 20 per square meter during 2020. The amount decreased slightly from EUR 21 per square meter in 2019. EUR 5.6 of this amount went to maintenance and the remainder to repositioning CapEx. Repositioning CapEx is directed towards improving the asset quality and supporting the letting activities. The repositioning CapEx also includes investments into the surrounding of our assets. As a result, the AFFO resulted in EUR 120 million compared to EUR 103 million in 2019. Let me now hand you back to Refael Zamir. Our financial policy presented in slide 19 remained unchanged. We keep significant headroom to our financial covenant and continue to maintain healthy relations with the banking sector. As mentioned previously, our dividend policy has been updated to 75% of FFO I per share according to our revised FFO I calculation and will be effective from 2021. On slide 20, you will see that our LTV further decreased to 31%, down from 33% last year and 34% the year before that. We have been working continuously on optimizing our debt profile, among other, by repaying high interest-bearing short-term financial debt and replacing it with low interest rates. Also, we issued the largest bond in GCP history of EUR 1 billion at a record of point of 0.125% for a period of seven years. We also refinanced our 2015 perpetual note amount by EUR 500 million with coupon of 3.75% throughout a EUR 700 million new perpetual note issuance at a coupon of 1.5%. Reflecting a 2.25% decrease in the coupon as evidence of GCP's strong development in recent years. In our capital structure on slide 21, we present our debt maturity schedule. Excluding our convertible bond maturing in 2022, we nearly have a clean schedule until 2024. The average maturity is seven years, and only 5% of our debts are variable. As mentioned, our cost of debt decreased to 1%, supported by the recent issuance and repayments. On slide 22, you will see our strong ICR and DSCR ratios with 5.7 and 4.6, respectively. Unencumbered assets at 82% reflect value of EUR 6.7 billion and over EUR 1.7 billion liquid position, which is a strong safety net in difficult times, such as a pandemic situation, as well as a strong position for taking up opportunities as and when they arise. Our rating is steady and strong, with presently triple B plus by Standard & Poor's and Baa1 by Moody's. Our long-term goal to reach A minus remain unchanged. Back to Christian. Thank you. Let me focus, starting slide 24, on our ESG achievements, as well as our plans and targets. In a rating by SAM, now part of S&P Global, we achieved the 75th percentile within real estate peer group in corporate sustainability assessment. This is one of the leading sustainability ratings which the inclusion in the Dow Jones Sustainability Index is based on. Here, we were also best in the sub-category customer relationship management and 97th percentile in the sub-category social integration and regeneration. Sustainalytics recognized our ongoing commitment to sustainability and ranking us in August 2020, second out of 105 companies. First means lowest risk. Sustainalytics, a Morningstar company, is a leading ESG and corporate governance research and rating firm. The inclusion as a member of the Bloomberg Gender-Equality Index for the second year in succession reflects a high level of disclosure in gender-related metrics and is testament to our positive gender-related practices and policies. Slide 25, you can see our ESG goals and focus areas as well as targets in the key dimensions such as tenants, employees, environment, society, and governance. The goals and targets are reviewed regularly and orient themselves on the German 2030 goals as well as the European Union 2050 goals. We aim to reduce our property's CO2 emission by 40% until 2030. Slide 26 shows a nice example of what we have been doing with regards to energy savings and improving our CO2 footprint. We have completed projects in a small scale and expect to increase our involvement in the upcoming periods. The roof of our headquarters has been equipped with photovoltaic systems, along with charging stations for electric vehicles, among them vehicles that our maintenance team is using in Berlin. Going forward, we have set clear goals and targets to improve energy efficiency further, make use of renewable energy, buy from renewable power producers, and launch projects to further support biodiversity. Sustainability management software will improve the data management reporting going forward, and we will report our sustainability measures in our Sustainability in Focus report. The sustainability report for 2020 will be published next month. Our social responsibility and some of the activities are summarized on slide 27, where you can see under the dimension Tenants, various activities that we initiate to foster a closer rapport with our tenants, including the 24/7 availability of our service center. Through our foundation, we are supporting over 40 charitable projects around childcare and sports teams, for example, mostly for disadvantaged members of the society. We also give scholarships. In the last year, we have supported social organizations which were struggling due to the coronavirus pandemic. For our employees, we have started various programs and activities to support them in their career development and their work and certificate circumstances, such as home office during corona pandemic times, including homeschooling for kids and more. Our range of online training as well as our leadership program find great acceptance among our employees. Looking ahead, we have several programs and activities and thoughts through open communication and acceptance of recommendations and good ideas from our employees. We are streamlining and adapting our activities in this respect continuously to the needs of the moment. Our aim is to reduce employee turnover and over time improve our standing as a preferred employer. With regard to governance on slide 28, we plan to remain best in class in respect of reporting and maintaining high standards of transparency. EPRA has given us for the fourth time in a row gold medals for our financial reporting and our best practice sustainability reporting. Grand City Properties has through the years maintained a strong leadership team led by a strong board of directors composed primarily of independent directors. Also the audit, the risk, the nomination, and the remuneration committee members who are mostly independent directors provide strong governance to the organization. Our milestones and targets are aligned with the relevant United Nations Sustainability Development Goals, which in turn get further entrenched into the core business with Grand City's integrated sustainability business strategy. Lastly, on slide 30, allow me to present to you our guidance for the year 2021. Our FFO I for 2021, now including the perpetual notes attribution, is expected to be in the range of EUR 183 million-EUR 192 million. We expect to see FFO growth in spite the large amount of disposal we had in 2020, supported by internal growth and our recent liability management. The FFO I per share is expected at EUR 1.08-EUR 1.13 per share. Following our updated dividend guidance to 75% payout ratio, the dividend per share is expected to be between EUR 0.81 and EUR 0.85. We expect to have a rent like-for-like of 2%-3% capturing our revisionary potential. Our LTV is expected to remain well below 45%. And with that, let me hand you back to Katrin and open the questions and answers. Okay. Thank you. We are now starting the Q&A session. We will answer the questions that we have received by email from you so far, and we have grouped them together for the reasons of simplification. The answers to your questions have been prepared by the team, and I will now start with the first question, and the answers will be given. First question. The German residential market remained robust in 2020. How do you see the market performance evolving in 2021? The performance of the residential market in Germany in 2020 has been positive as a result of strong long-term fundamentals of this market, which were demonstrated during the pandemic. From an economic standpoint, although the global economy went into a spin in 2020, significant direct and indirect government support has sustained the purchasing power in Germany. In terms of demographics, housing demand in German large cities remains high and is expected to remain high from increasing population and increasing number of households while housing supply delays. Official data sources indicate that rent affordability has in fact improved constantly over the past 10 years, and a strong social net in Germany provides further support to tenants, which was especially evident during the coronavirus pandemic. The Kurzarbeit system has ensured that the unemployment rate in Germany remains at manageable levels and mass layoffs are averted, which is in addition to other governmental support and social benefits in place. These factors support the stable, strong demand for affordable housing in Germany. On the other hand, supply of residential units continues to be low and constrained by bureaucracy as well as the lack of qualified construction personnel. The lockdowns and the pandemic restrictions did not support increasing supply of housing in Germany, which longer time periods required to get permits along with stricter financing conditions for development projects. Put together, the demand-supply gap is continuously increasing while the German residential market fundamentals remain unbroken. Prices for condominiums and multifamily homes in primary and secondary locations have increased considerably as a result of the demand-supply gap, and also are benefiting from strong tailwinds from the negative interest environment in 2020. In 2020, we continued to see strong letting demand for our portfolio and combined with non-core disposals, which had higher average vacancy, we were able to reduce our vacancy to a low level of 6.2% with a year-over-year decrease of nearly 1% on a like-for-like basis as of December 2020. In terms of rental growth, the total like-for-like amounted to 1.8%, including occupancy growth, even though the company halted rent increases in solidarity with tenants at the peak of the coronavirus pandemic until the third quarter of 2020 and had no like-for-like rent increases in Berlin due to regulatory rent freeze effects. The robustness of the rental performance clearly highlights the benefits of the portfolio's diversification. Can you please comment on the London residential markets? What are the dynamics from your perspective, and what can we expect with regards to the London portfolio's vacancy going into 2021? The London residential market, which we continue to view very positively in the long-term, was impacted from the pandemic and restrictions more than Germany. London has had stricter and longer lockdowns as compared to Germany, not only in the first wave, but also in the second wave, which has a negative short-term impact. This has resulted in the slower pace of new lettings, with higher terminations, mainly from students and young professionals. Also, the temporary surge in supply coming into the market from short-term rentals, such as Airbnb, as tourism in the city has stopped, weighed on the letting market. However, we remain convinced that London has very strong long-term fundamentals underlying the rental market, which will support a recovery following the easing of the restrictions. Accordingly, we have seen that an ease in the restrictions, as was in the summer, resulted in a rebound following the lifting of the lockdowns in August, and expect to see similar trends with the recent restrictions, easing in the back of the strong vaccination progress, especially in London. Therefore, we expect this trend to continue once lockdowns and restrictions are over. In addition, we have a proven track record of successfully reducing vacancies to 6.2%, which is our best ever, as we have acquired properties with very high vacancies and managed to fill them up in the short time. As of December 2020, the London portfolio vacancy has increased to around 8%, and we expect to reduce the vacancy back between 3% to 4% after the pandemic is over. Can you provide some color on the Berlin residential market considering the Berlin rent cap? What is the impact on the Berlin market? How is the Berlin Mietendeckel incorporated in your guidance for 2021? One major German party is considering a nationwide rent freeze. What is your opinion on this? Do you still believe the spillover risk of the Berlin rent freeze remains low? In terms of regulations, the Berlin Mietendeckel has no significant negative impact with market transactions at even higher multiples than prior to the freeze. Values and transaction levels in Berlin continue to increase despite the rent regulations. As we have expected, the Mietendeckel failed to actually further increase the housing shortage problem. The availability of apartments for rent has decreased dramatically as tenant fluctuation rates has become very low and new construction activity was reduced. With the rent cap, the tenants are encouraged to remain in their current apartment, even if it does not fit in terms of size and location, as the rent cap does not differentiate between strong and weak neighborhoods in Berlin, and it's based mainly on building year, not location. Therefore, the benefit from the rent cap is much higher with tenants living in luxurious neighborhoods such as Mitte, Charlottenburg, Prenzlauer Berg, compared to weaker locations such as Marzahn, Spandau, highlighting the illogic of this regulation. We continue to share the opinion of most of the legal and professional minds with regard to the unconstitutional nature of the law. Currently, we do not see a significant spillover risk to other cities, since the city of Berlin is unique with its own dynamics and there is no one-size-fits-all solution, although we do expect this issue to be raised in the upcoming German elections. In our opinion, the solution for the low supply in housing is to increase the level of construction and provide for a positive investor environment, which will bring in more investment into the space. Our base case business plan is that the rent cap will remain, and any reversal of this regulation will only be an additional upside in terms of the revisionary potential of the portfolio. Accordingly, we have not included any rent increases from the Berlin portfolio into our guidance for 2021 as we follow all ruling regulations. We hope further clarity can be expected when the Federal Constitutional Court announces its ruling, which seems to be expected in the middle of this year. What does the rise of new variants of the virus and perhaps additional lockdowns mean for business operations? The German residential real estate market has displayed resilience and strength during the period of the coronavirus pandemic. Looking ahead, we do not expect any change in this regard. Our operation has remained adaptable with digital business processes supporting uninterrupted services. Our systems have been able to shift to remote working while ensuring business operations continue undisrupted. Recent letting performances suggested effect on the business from the pandemic continue to be insignificant. Virtual tools of apartment identified certification through the Deutsche Post and electronic certification have continued and made the letting process more convenient for prospective tenants, while also improving business efficiencies. As to the London part, lockdown will have a larger impact on the short-term letting performance, but we expect that big amount of vaccination deployed will prevent lockdown and negative effect on the city. Could you provide some color on the valuation gains achieved in 2020? What were the key drivers? How much was due to yield compression? How has the London portfolio performed on a like-for-like basis? Can you provide any inputs on what we can expect for portfolio revaluations in 2021? In 2020, we achieved EUR 340 million in property revaluation and capital gains. With EUR 290 million attributable to property revaluation and EUR 50 million to capital gains. Capital gains are the excess of the fair value over the appraised book value. Portfolio valuation has increased by 4% on a like-for-like basis, excluding CapEx, or 5% including CapEx, with significant increase in Berlin, NRW, Mainz, and London. In London specifically, values increased by over 4% on a like-for-like basis and remain comparably unaffected by the coronavirus pandemic. Approximately 80% of the revaluation gain are the result of yield compression, which is the result of the positive market fundamental in our portfolio location, as well as the lower discount and cap rate, which is related to the operational improvement of the portfolio. The remaining revaluation came from rent and occupancy increases. The key drivers for revaluation gains are operational improvement and yield compressions. Revaluation gains do not follow a specific trend and therefore cannot be easily estimated. We continuously work toward achieving strong operational improvement in our portfolio, which in turn drive property revaluation gains. In line with our policy to revaluate our portfolio at least once a year throughout all quarters of the year, we have already evaluated a large portion of the portfolio in the first three quarters of the year and accordingly, recorded a proportional value creation in the last quarter. Looking forward, we are confident to continue and see positive revaluation gains from further operational improvements and a certain level of yield compression coming from general market trends, but also from a reduction of discount and cap rates resulting from the improvement of the portfolio in terms of occupancy and rent. As for London, generally in the residential market, valuation in the higher end of the market are currently under pressure. However, valuation of more affordable locations and properties continue to be stable and are increasing in the same trend of our portfolio. Going forward, we expect values to remain stable at the least, with our headroom for value growth staying intact as a result of our favorable entry prices. Could you please provide further details on the disposals? What was the average multiple at which these were sold? Can we expect disposals to continue in 2021 at the same level as it has in 2019 and 2020? 2020 disposals amounted to approximately EUR 970 million, generating a profit margin of 45% over total cost, including CapEx, at an average multiple of 17x. The disposals were sold at a premium of 6% over book values. The disposals include over 16,000 units, mostly located in secondary cities in NRW and in the east of Germany, along with other non-core cities, as well as in Bavaria. Those disposals crystallized gain achieved from our value add efforts, delivered strong shareholder value creation, and validate our conservative valuations. Over the next 12 months, we will continue with our disposal strategy of disposing non-core properties and mature properties of which the value potential is reached. We would consider active potential on a selective basis, depending on the opportunities that come out of our way. We have recently signed a disposal of approximately EUR 200 million of non-core and held-for-sale property with a high vacancy of over 20% and located across various non-core locations, mostly Eastern Germany and in one small portion in Mönchengladbach. Our disposal pipeline includes a couple hundred million EUR and the disposal proceeds will be directed into acquisition with higher potential and better quality. Could you provide some details on the rental like-for-like, as well as an indication of what we can expect for 2021? How much of the like-for-like results was driven by reletting, and how much from indexation? As of December 2020, net rental income increased by 1.8% year-over-year, 0.9% from occupancy increases and 0.9% from in-place rent increases. The in-place rent increases can be broken down to 0.7% attributable to reletting and 0.2% due to indexation. The contribution of indexation this year is lower compared to last year since we halted rent increases in solidarity with our tenants at the peak of the pandemic, with rent increases only resuming towards the third quarter of the year. Additionally, the Berlin portfolio had no rent increases. On the contrary, there was a decline because of the implementation of the Berlin Mietendeckel from November 2020, which had a full impact on the like-for-like results. Nevertheless, Grand City Properties' resilient portfolio performed well with strong like-for-like results in other locations, including Leipzig, North Rhine-Westphalia, Mannheim, Mainz, and London. The strong portfolio diversification enables Grand City Properties to deliver positive like-for-like rental growth despite headwinds. Looking forward to 2021, we expect to achieve a like-for-like between 2%-3% as long as the existing legal framework in Berlin remains unchanged. In the scenario that the rent freeze will be lifted, we will update our guidance accordingly. Could you kindly provide some color on the acquisitions completed in 2020? How large is your pipeline, and what can we expect in 2021? Will you continue to acquire assets in London? What is your goal in terms of percentage of total portfolio? Would you still consider entering into a new country or city besides Germany and London? In 2020, we acquired quality assets at the amount of around EUR 600 million, which includes transactions of approximately EUR 200 million closed during the fourth quarter of the year. The acquisitions include over 1,400 units with an acquisition multiple of 21 times and a vacancy of around 5%, as well as over 800 units that are in the reletting stage and are expected to be let out in the coming periods. The assets acquired are located primarily in London and Berlin. The assets acquired in London are in middle-class areas like Greenwich, Hillingdon, Hackney, Ealing, Redhill, Ilford, Croydon, and Hampstead. Further, the acquisitions are comprised of affordable housing units, including newly refurbished properties in the reletting stage, and social housing. After 2020, we have signed acquisitions amounting to approximately EUR 200 million, which will be taken over in the following periods. We are currently reviewing a large pipeline of around half a billion EUR located in Germany and London. Our acquisition process includes a strict review of all transactions, which are subject to the acquisition criteria of achieving 5%-7% unlevered NOI yield on total cost within 3-4 years after acquisition. The London portfolio currently amounts to 19% of our portfolio. We continue to view the London residential market very positively, supported by long-term, strong demographic and economic fundamentals. Moreover, our wide sourcing network in the city is bringing us attractive opportunities with an attractive over 5% unlevered NOI yield on total cost. The high yield is very supportive for accretive growth, but is also a buffer in case of short-term weaknesses in the market driven by the pandemic lockdown. In any case, we currently do not expect our London portfolio to exceed over 25% of our portfolio. Regarding other locations, Germany continues to be our main focus. We remain optimistic on our approach and are always on the lookout for accretive deals that support the overall quality of the portfolio. Especially during times of crisis like the pandemic, we believe there could be several opportunities that may arise, and we look at deals across many major European cities from time to time. If we would enter into a new location, we would do so gradually and carefully as we have done with London. However, as always, all acquisitions, regardless of their location, are subject to our acquisition criteria. Besides the external growth drivers, we believe that our current portfolio is well positioned to benefit from its internal growth drivers. The portfolio remains under rented, and even considering the Berlin rent cap, the portfolio has a rent revisionary potential of 18%. In the scenario that the Berlin rent cap is ruled unconstitutional, this potential increases to 25%. What levels of CapEx and maintenance is expected for 2021? Given the new subsidy scheme for the German government to encourage modernization, is there any change in the way GCP considers modernization? Is there an update on the development portfolio? For CapEx and maintenance, we expect to keep our current levels with CapEx at approximately EUR 15 per square meter, and maintenance at approximately EUR 6 per square meter, both on an annual basis. As for modernization, in 2020, we did not focus on modernizing our portfolio, but rather focused on the ongoing repositioning CapEx and improvement of our portfolio, which resulted in increasing the rent and occupancy levels as well as the quality of our portfolio. These investments are highly accretive and create a strong internal growth driver. Furthermore, the regulatory decrease in the modernization returns and the continuous discussions of further reducing the returns is discouraging investments to a certain degree. In terms of energy subsidies, we are currently reviewing the effect on our portfolio, balancing the energetic efficiencies, emission reduction, as well as our return on investment, and expect to see a higher investment of this kind in the next period. On the development portfolio, a little over half of the total development portfolio is related to assets in London, which are in the pre-letting stage, and these projects are progressing as planned. These projects are expected to be completed in the following period, and letting activities will follow soon after. Based on what we have seen so far, we expect these units to fill up fast, generating additional rental income along with higher operational profitability. In recent quarters, we have seen a large completion of the pre-letting portfolio, which supported the growth of the London portfolio and provides strong and quality cash flows. Most of the remaining portion of the development portfolio is located in Berlin, a city that continues to be a key value driver for the portfolio. We seek to extract building rights in our existing properties or on plots, which are part of our portfolio, as we acquired them as part of larger deals. We see the extraction of identifying development potential and obtaining development rights as a very strong value creation driver. The processes of obtaining a building permit is complicated, lengthy, and requires deep understanding in the process, but reward with a very high upside potential. At this stage, we do not intend to develop all the rights and expect to dispose a portion of the portfolio rights on an opportunistic basis, weighing all considerations on a case-by-case basis. Important to mention that new building properties are not subject to the rent freeze restrictions and can be rented at market. The most significant project is located in Prenzlauer Berg, and we are in advanced stages of securing the building permits for the first plot. We expect to get the building permits in the next month, but could start digging and preparing the site beforehand. We continue to receive offers of the plot on an ongoing basis, and the closer we are to receiving the final building permits, the higher the value of the land is. On the other hand, the potential net rental yields is quite attractive at 5% over total cost, including the land value, which remains quite high for a new building project in Berlin. Once we obtain the building permit for the first plot, the path for obtaining the permit for the second plot will be faster, and we aim to be ready with the building permit around the second half of 2022. The second plot is approximately double the size of the first plot and includes as well a high amount of potential of over 5% yield over total cost. Please give an overview of how you intend to spend your capital. Your leverage is low, acquisitions of quality properties are quite expensive, the share buyback tender was only partly executed. What is the EPRA NTA per share after the share buyback? We are a bit ambivalent on the tender result, as we bought back only EUR 17 million over EUR 250 million capacity. We view the lower volume of buyback as a reflection of the strong confidence of our investor in the long-term success of our business strategy. The share buyback program we announced this morning enabled us to reinvest in our portfolio at attractive price. We view the share buyback as an additional tool we have in our kit to create accretive growth, in addition to acquisition and internal growth. We acquire further in 2021 properties in London and Germany amounted to over EUR 200 million. Have a healthy pipeline that we are analyzing on an ongoing basis. We plan disposal of non-core and held-for-sale properties in the amount of around EUR 200 million as well. In 2020, we will use our cash to continue to optimize the debt profile by preparing higher interest-bearing debts. The NTA per share as of December 2020 is EUR 26.5. After including the share buyback, which was done at EUR 21.25 per share, the NTA is EUR 26.7. GCP was a net seller in 2020. Will that be the case also in 2021? We are continuously reviewing a large pipeline of acquisitions, as we have done in 2020. We expect to continue and acquire property. In 2020, we reviewed a very large pipeline and selected and acquired approximately EUR 600 million of properties in addition to the planned EUR 250 million share buyback program. We remain very responsible and stick to our acquisition criteria to acquire properties which create accretive growth. The market is very competitive. We are still able to find attractive opportunities, but at a lower amount than in previous years. In parallel, we expect to continue to recycle capital also in 2021, as we see the current market environment and the high demand very favorable to dispose non-core and mature properties at high gains. This will enable us to strengthen our position going forward. We remain opportunistic both on the disposal and on the acquisitions. Therefore we do not wish to commit on the amount of acquisition or disposal in 2021. How do you see the carbon tax beginning from next year impacting the business? What is the current level of carbon emission, and is there a plan to reduce this level going forward? The carbon tax of EUR 25 per ton of CO2 emission is effective beginning from 2021. This price will increase progressively up to EUR 55 per ton in 2025. From 2026, the price will be determined by an auction and potentially will be higher. As it stands currently, the cost will be treated as ancillary cost and will be fully passed to the tenants. There are discussions to share the tax burden with the landlords, which will result in a reduction of our profitability, but what amount would be shared, if at all, is still under political debate. From an economic point of view, although the cost is recovered by tenants, we see the importance of reducing the carbon and consequently the carbon tax burden, as in the end, it weighs on the effectiveness on our portfolio. We see the importance of reducing the emission as both an environmental goal, also as a goal to remain a competitive landlord. We have set ourselves a target to achieve a reduction of 40% in carbon emission by 2030, which is driven by implementation of highly efficient heating systems and by installing photovoltaic and combined heat and power systems. We have started with installing photovoltaic panels in our headquarters in Berlin and intend to start implementing more systems in the upcoming future. Our ongoing commitment to sustainability was recognized in the recent Sustainalytics ESG risk rating report, ranking GCP second out of 105 companies, with first as the lowest risk. We will publish our sustainability report for 2020 in April, which shall provide more information and color on all environmental matters. Thank you. I think those were the questions that we received by email so far. We will now start the open Q&A part. If you have several questions, we kindly ask you to ask all your questions together right at the beginning. We are now looking forward to hearing your questions. Ladies and gentlemen, if you would like to ask a question via the telephone, please press zero and one on your telephone keypad now to enter the queue. Once your name has been announced, you can ask a question. If you find your question has answered before it is your turn to speak, you can dial zero and two to cancel your question. If you are using speaker equipment today, please lift the handset before making your selection. One moment please for the first question. The first question is from Paul May, Barclays. Your line is now open. Please go ahead. Hi, everyone. A couple questions from me. First one, just wanted to check on the valuation update versus your period, it became a bit lower. Are you saying on the questions from email that that is largely because you didn't revalue all the portfolio in Q4? Just wondered if you know that the valuation is stronger than reported on the balance sheet, then it might make sense to revalue everything at any given time, would be the first question. Secondly, just wondering around the share buyback and the scrip that you also did, just they seem sort of quite counterintuitive to do both. Just wondering, is there a reason why you have to offer a scrip alternative to your dividends? It just seems a bit odd to issue shares and then to just buy them back later. Just wondering if you can comment on that one, that'd be great. Thank you very much. Thank you for your questions. I'll start with the scrip question. Scrip is something we provide our shareholders on an ongoing basis, and we expect to do this the same. We see this as a right our shareholders have, and we give them the ability to buy into our share. Therefore, this year, we don't think it should be different, also given that we have a share buyback program going in place. Regarding the second question about the valuation, you're correct. We valuated throughout the year. We had a lot of valuations also in the first three months. The last quarter was a bit lower. Valuations go in line, and a bit better than the value than the rent like for like, sorry. We see operational improvements, and there we feel very comfortable in evaluating the portfolio. It's a real internal growth in terms of valuation. We like to valuation, that logic we like to follow is, like, we do ongoing valuations quarter by quarter versus maybe our peers that do it once or twice a year. We feel it reflects better the current valuation for the portfolio and enable the market to see so. Thank you. The second question is from Manuel Martin, ODDO BHF. Your line is now open. Please go ahead. Thank you. Good morning, gentlemen. Two questions from my side. First question is on the CO2 emissions of the portfolio. Do you have a rough idea or guidance what the CO2 portfolio cost that you have currently? Second question is regarding your like-for-like rent growth. Do you have a number or an idea for us how the like-for-like rent growth would have been excluding the Berlin effect? That's it from my side. Hi, Manuel Martin. Thank you for your questions. To cover the CO2, we're currently evaluating this cost. As mentioned, this cost is going to be, at least at the beginning, borne by our tenants through recoverable costs. We currently estimate it to be around EUR 2 million, assuming for the 100%. If we would share that amount, it will be accordingly lower. As for like-for-like, you're correct, the 1.8, including mainly the Berlin effect, which brought us to a lower level than previous years. You would add another EUR 3 million to a like-for-like, I think that would add around 1% more of like-for-like. Not being 1.8%, but more towards 2.8%. Thank you. The next question is from Kai Klose, Berenberg. Your line is now open. Please go ahead. Yes, good morning. I've got three questions regarding the balance sheet. First of all, could you explain the increase in the investment in equity accounted investors from 21 to EUR 108 million? The second question, the increase in other non-current assets from EUR 125 to EUR 315, and the increase in the financial assets from EUR 148 to EUR 179 within one year. The last question would be regarding the London portfolio. Could you indicate how many entire units or, sorry, how many entire blocks you own, and how many units you own in existing buildings? Kind of a partial ownership. Thank you. Okay. I'll go one by one. Please let me know if I don't answer a question accordingly. Equity accounted received increased in 2020 compared to 2019, due to our disposals of which we disposed majority of our property in NRW, and we remained a minority at 49% as well. Also we still have some upside in terms of additional profits from equity account investors. I think this alone is the growth in equity account investors. As to your London question, I hope I understand it correctly. In London, we have over 3,600 units. Around 800 is in PS, and the remaining 2,800 are currently in our marketed units that you see in the portfolio data. I don't have the data exactly how many buildings it is, but it's scattered along a few buildings, and there's no typical size for a building itself. As to the other non-current assets, the growth is due to loan to owns, which we invested throughout the period. The next question is from Marc Mozzi, Bank of America. Your line is now open. Please go ahead. Yes, very good morning all. Thank you for taking my question. I have only two questions from my side. The first one is, what is the proportion of your portfolio or your properties that you do take into account in your NTA calculation as something you're not willing. To dispose, i.e., the proportion of the portfolio you do hold back from the tax into your NTA. That's my first question. The other one is, what has been the cost of refinancing your different perpetual notes, in 2020? Because I get you're making a gain on the P&L perspective, but it has a cost on the balance sheet perspective. I just wanted to know how much did that cost you to buy back your perpetual note or to refinance it? Thank you. Mark, thank you for your questions. As to your questions on the NTA, we exclude 70% and include 83%. You can see details on slide nine, I believe, of the presentation, where we have a rationale. We don't include inside the held for sale, we don't include inside conservatively the others, the portfolio others, and we don't include the building rights, which are not the London pre-letting properties. As to the second question on the perpetual, we paid 4% We paid EUR 104, basically, for the perpetual. This is part of the optimization we're doing and yes, this is also enabling us to grow with FFO in the next years. We'd rather clean this up now and benefit from a lower cost on an ongoing basis. Thank you. The next question is from Marios Pastou. Société Générale, your line is now open. Please go ahead. Hi there. Good morning. Thank you for the update. Just a couple of questions from my side. Just firstly, on the convertible bonds, I just wanted to understand some of the options you have around this. They're currently out of the money, but I wonder if that's something you'd be considering repurchasing in cash or replacing, as it comes to maturity. Then secondly, just on both the acquisitions and disposals you did following the reporting date, if you could give any idea in terms of valuation, or the yields and the vacancy around those, that'd be very helpful. Thank you. Yeah, sure. As to the convertible bonds, we see this bond coming very soon. It's in February 2020. That's our biggest maturity in our schedule. Currently, the coupon is very low. It's at 0.25%. So we're in no rush to repay it, but we're looking at it. We will consider options coming closer to maturity, either to buy back or to refinance it and so on. That depends on several factors, so I think it's best to wait and see. As to the details of the disposals we did after the reporting date, actually were signed last night. We signed around 5,000 non-core units, in various locations at a multiple of 16. We will give more information on the disposals and acquisitions of 2021 in our Q1 report. Okay. It seems that we have no further questions. Thank you very much for joining the call. Thank you very much for your questions. I hope that we were able to answer them all. If not, obviously, as usual, we are quite happy to answer questions that you send to us by email. With that, I wish you all well. I wish you stay healthy. We talk to you latest in our Q1 results call, hopefully before. Bye-bye. Thank you. Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect now.