Welcome to Peach Property Group FY 2025 Results Conference Call and Webcast. There will be a presentation. Questions will be taken by phone only. I will now hand over to Gerald Klinck, CEO. Please go ahead. Thank you, Lidia, and a warm welcome to all of you for our full year results 2025. Before we start with the presentation, I want to give you a couple of comments. I think it's very important to talk about full year results, but after completion of our phase one of the recovery story of Peach, the balance sheet transformation, we think it's more important to look to the actual situation and for the growth potential, which is in Peach. Let's talk a little bit more about the future. Having said this, we split the presentation, as you know it in the past from us, into two sections. One section is what I mentioned before. It's a little bit of looking backwards to where we are today and the outlook for Peach. For that reason, I'm very happy that also Michael Zahn, our Chairman of the Board, is joining the call, and he will give his view on Peach value upside and future growth of our company. Welcome, Michael, to us. Having said this, the second section of the presentation is dealing with the slides, which you know from us in the past, with all the details of the full year results. We do not want to touch these slides on the call. Please have a look at it. If you have any questions or need explanation for some background information, you can use the common channels to stay in contact to us via email or via phone, and then we come back to you with all the details and answers on the specific ones. Last but not least, we are a little bit behind the schedule compared to last year, even almost three weeks later than last year. Reason is very easy to explain. We moved our core functions from Zurich to Germany, especially the group accounting. Our accounting team here in Cologne was the first time in charge, putting all these things together and put the reports together, and that was a big challenge. I'm very happy that they were able to do so, and I think the quality of our report is improved, especially in the section of the EPRA. Maybe you have a look in specific numbers like the EPRA NTA or also our FFO definition. Very happy with that. Thank you to the team. Maybe they are on the call, especially to Malte. Having said this, we can start. On the next page, it's a little bit of looking back, where we start. I'm joining Peach now since two years, and when I joined Peach, there was a lot of challenges in place. Start with the asset side of the balance sheet, the portfolio and the operation. We had 15,000 units in the market, and nobody knows really are these the right assets to sell and what does it have an impact on NOI, KPIs or the other stuff. That was, I think, the first thing which I had to deal with. We had no clear strategy on our sales strategy. In line with low spending in 2023, you see only €10 per square meter, and this is split into tenant improvement and health and safety measures with CapEx. As low spending with the result that the vacancy was pretty high. It was more than 10% of the overall portfolio. The development project in Switzerland, the Peninsula, was on execution risk. No portfolio strategy in place. That was on the left-hand side of the balance sheet. On the right-hand side, on the liabilities, we had a very pretty high LTV, almost 60% end of year 2023. More than two-thirds of the debt were on the short-term maturity, EUR 350 million secured, but even more challenging, EUR 400 million in the unsecured sector like promissory notes, convertible bond. There was a cancellation of our RCF. It came from EUR 50 million when I started, it was EUR 30 million, and after that it went away. The debt on the development project also in Switzerland not really produced NOI in Peninsula and was our non-yielding asset. That was the situation on the liability side of the balance sheet. A lot of challenges there. Having said this, in the capital markets, we saw the share price with a huge discount to NTA. Rating dropped down to CCC for Moody's. We had an aggressive valuation in place, with the multiples of almost 20 compared to peers in these years; it was pretty high and nobody really trust these multiples. The key challenges were totally clear. The major upcoming refinancing operational inefficiencies, I mentioned that before. The most important thing in these days was no trust in the domestic debt and in the capital markets. Having said this, the governance and also the management team was in an unstable situation. This was really challenging. Now, and this is on the next slide, we have a totally different Peach at the moment. We were able to stabilize that. Coming back to the same, let's say, side of the balance sheet, so on the portfolio and operations, we have a clear portfolio strategy in place now. We talked about Australia and the Non-Strategics, which we want to get rid of in order to get the funds for CapEx measures and deleveraging the company. Our like-for-like rent growth last year was almost 4%, a little bit lower. Vacancy is down now to 5.2% end of year if you include the vacant units, and in the strategic portfolio, even lower. That was a huge first impact on our operational improvement. For Peninsula, we are set to, or what I'd say, it is, let's say, very clear that we have a handover of all apartments and lofts at the end of the year. Peninsula is, I hope, history at the end of the year. Why do I say this? 85% of steps is behind these assets producing their EBITDA. I come back to this impact a little bit later when we talk about leverage. Also for the last and remaining piece of our assets in Switzerland, the yielding assets, we also signed LOI for sale, and I'm also very comfortable that we can close that deal also. Having said this, another 2,000 units are signed last year. We talked about that. We've started deleveraging of more than EUR 60 million, and the net cash position of EUR 40 million. We are very close to close it. We expect significant closing in Q2, so in this quarter. There was the other 5,000 units, which we sold end of 2024, which gave us also a deleverage effect of $185 million and $120 million cash, almost to refinance all the unsecured pieces of our debt profile. That ends up with lower LTV of 49%, we crossed that very relevant limit below 50%. We are lower than that. We were able to regain trust in the domestic market for public lending in Germany. We were able to find a new facility of EUR 410 million. That is our Castlelake facility. It's a three-year maturity plus one, plus one year extension option. We got a possibility that we were able to sign a new CapEx facility of EUR 30 million, which gives us also more flexibility. The other secured facilities will mature in five-seven years of EUR 220 million. There's two lenders behind that. There was also another domestic lender on the fabric side who gave us the trust for another EUR 120 million. We almost changed the whole structure of the debt profile. We are now with 85% in this market in our balance sheet, which is good. Capital markets, our rating is recovering. We are at the moment at single B. We'll see what's going up if we end up this year, where the valuation is confirmed also by a new valuer, by CBRE, with a multiple of 16.3. I think that is a fair multiple at the moment, also compared to our peers. Despite our sales, our FFO is at the upper end of our guidance, which we gave to you, was EUR 7.7 million, and we guided at EUR 16-EUR 18. That is also really good in line with expectation. We have regained trust in domestic and debt markets, resolved financing situation. We have now a stable governance with a good board. We feel a lot of support from them. On operational processes, we are also better than before because we have, with our new CEO on the ground, centralization of key operational processes. In terms of staff, we were able to release the Peach Points, which was in line with the 5,000 units, and with the other 2,000 units, we are able to sign a contract for property management, which helps us also on some KPIs on the platform as well. Before I come to the next page, I want to give you my view on the last two years and why we put these slides together. I think maybe some of you will say, "Hey, we all know these things, what you are presenting here," because we were out with more than 30 talks or corporate news plus the other presentations, and we lined that out, I think, in every presentation. Maybe they say it's a little bit boring. Others who are joining us here shortly will say or may say that was an ambitious and successful road trip of Peach for the last two years. Others told me, "Hey, you are quicker than expected with the recovery." There are also some other voices, they are not satisfied because we are too slowly, and there's still some other issues which are not solved yet. I think the truth at the end, everybody is a little bit right. My personal view of that is, my staff, my people on the ground who are dealing with the assets directly, so property, asset management, the letting team, technicians and so on, they made a great job. That's not every time very easy, especially in our Non-Strategic assets. Some of these are very challenging with challenging tenant structures. The holding staff are very proud of that, like the accounting staff, like tax and all these things. If you have to deal with the restructuring of the debts, the financing part, and the portfolio sales, you only do that with a handful of people, which were very ambitious and successful in these days. To be honest, I'm very proud to work with them. That's the truth. I think from my point of view, we were quick, and we find solutions for all our challenges by doing it on parallel tracks. It was not ducks in a row. We worked on so many things on a parallel track. The only question for this year, why we're doing this, is one thing. We want to give you the possibilities to make good experience with us, with the Peach team, with the board, the management, and my whole team. That ends up, the sum of good experience ends up in creating trust and building up trust. I think that's what it's all about. If you are in the position to trust in us, and that's very important when we flip to the next pages, because now we give you a little bit more background of our view, also Michael's view, on the value potential of Peach. I think it's necessary to build up trust in us, to build up trust. To the same conclusion, if you see the facts and make the analysis, and I think we have hopefully a successful future for all of us. With these words, I'm coming back to facts. Next page gives you a target vision of Peach for 2028. On the portfolio, we want to get rid of our Non-Strategic the next two years. So 2028, we are down to 60,000 units, focused in North Rhine-Westphalia. Our net cold rent will pass the limit of EUR 7 per square meter net cold per month. You will see organic rent growth year- by- year between 3.5% and 4%, and vacancy will be below 3%. Our clear LTV target, and we will achieve that, is 45%. Debt-to-EBITDA multiple, and this is very important, very proud of that figure, and we come to that later on with facts, is in a ballpark of 12x. That really outperforms the market. The all-in interest rates will be on market level in these days. On the efficiencies, NOI margin, we can close the gap to all our peers by 80%. EBITDA margin, clear target to 65%. I would say something between 60% and 65%. The FFO, around EUR 30 million-EUR 32 million. That sounds very ambitious. If you look on our FFO today, we see overall portfolio by almost EUR 80 million. That is more or less, it's not really a double, but it's a huge improvement by only three years. Our clear target is focused on the operational improvement. Sales and Non-Strategics. Release the net sales proceeds to refinance the CapEx and delever the company also with Non-Strategics. That is a clear target for us for the next two- three years. Having said this, on the next page, now I come to some figures. The first thing, if you want to understand us, is that you have to look and focus on our strategic portfolio because the effects from the Non-Strategics are going away in the next two years. If you deduct the NOI and the interest of our Non-Strategics, you have to reduce our FFO by almost EUR 11 million. If you can see, the platform cost is then only allocated to the strategic portfolio. That's the reason why we lose here the FFO. After that, we have to focus on four, let's say, cornerstones. One are the assets itself, operational improvement. That's top-line growth, operating cost effects, and the platform savings cost effects. These are the main driver for our value growth in future time. The fourth one is very important in the resi business because it's capital intensive. What is going on with our interest. That's a good story because everything we earn on top line or cost savings is directly went through to the FFO. Why is that the case? Because our debt is more or less on market terms by almost 3.90 average coupon. We do not have really risk in the interest in the future time. With that is technically or mathematically, we end up with an FFO, I would say between 30 and 32. We put in here the midterm of our guidance, and this is on the next page. If you focus on top-line growth, and that is very easy to explain, we will see in 2026, 6% growth, 2% by vacancy, 4% by ordinary rent growth, and for the next years, almost around 4% in the strategic portfolio. That ends up of an NOI impact of EUR 11 million-EUR 12 million. The operating cost, additional EUR 6 million-EUR 7 million. These are more or less two bigger issues here. We are able to reduce our collection rate, which is totally out of peers by 4.4% down to 2.5%. That should be achievable with some new processes and concentration on these. The second thing is another EUR 5 million. Knowing that we have almost 1 million square meter in that core portfolio, it's roughly EUR 5 per square meter. We see that we have high repairs and maintenance compared also to others, in the ballpark between EUR 12-EUR 13. I think there's upside potential to come to lower numbers, also why we spent a lot of CapEx. Then we have the ancillary costs on lower vacancy, which gives us here also an impact. It's not shown in the top line growth. Then there will be also some efficiency gains in our operating expenses. These are the effects which are close to the assets. The platform itself, and this is important to know, that the starting point is 2025. We can reduce by EUR 9 million-EUR 10 million. That's very ambitious. Knowing that in 2025 we have so many impacts on one-offs regarding refinancing or other stuff, which we get rid of in the next years, that is not, let's say, a real issue to achieve. We also, and I mentioned that before, the Swiss office is 100% moved to Cologne and one is moved to Berlin. This gives us a lot of headroom in terms of salary costs. We have also effects on losing some of our managers on the first and second level, which we do not substitute with external ones. We did it with our own people on the ground, gives us also some headroom. Lower fees, as I mentioned before, also the possibility to arrange and sign here the contract, regarding property management for the 2,000 units also helps to have here impact on the platform itself. Last but not least, I mentioned before, is the interest impact. Castlelake will have a value then, a debt volume of almost EUR 350 million. We will reduce it by releases from the Non-Strategics. We see here some opportunities, some synergies because these facilities is linked with a higher coupon than in the market due to higher LTV and our situation. Last year, we were under pressure. We have also then some dyssynergies because almost EUR 110 million is not under market circumstances. That is a little bit more than 10% of the overall debt, which coupons, which are below 2%, and there are some dyssynergies, and we think overall there might be a slight impact on the negative side. We do not put in place here other synergies of maturities of our debt, which will mature in 2030, because that is a little bit too far away. There is also hopefully some synergies based on actual rent levels. These are more or less the four big impacts where we think that we are able to meet these midterm targets to have an, let's say, expected or likely FFO, as I mentioned before. Next page. I think that gives you also a little bit the question of are we refinanceable in 2028, gives you a little bit an overview of what we achieved in the last years. I think that is also something for homework. At the end, what's the key message? We started with EUR 1.4 million mid of 2024. After get rid of our Non-Strategic and release the debt on that, plus the convertible, which is not shown here at the end of this year, we will repay it in May. That's a EUR 54 million piece. Plus the development in Switzerland. We are able to halve our debt profile based on our strategic portfolio. We come down to EUR 700 million. The actual average coupon on our debt is 3.9%. We are on market levels. Don't forget that if you compare us with our peers, they have lower interest coupons, so they will have some interest upside, I think, in the future times. We are done with our financing, and we do not see impacts on the interest in the next years. Also some information for you in our debt maturity profile. First of all, the 2026 column will go away at the mid of May. Funds are sitting in our accounts. The convertible is refinanced. 2027, no maturities. 2028 is our wall with Castlelake. I come to that in a moment. More or less the main part of it is Castlelake and another one or two facilities. The light green ones here is the releases of our Non-Strategic. You will see that we come really down to the 700. Next page. That page is a very strong page and gives you a feeling of the capability of Peach. Are we able to be refinanceable in 2028? The answer will be, it is very, very likely. Why is it? It's not all about LTV. It's a question of paying interest and debt service out of the EBITDA. The EBITDA debt multiple for us is the most important one. At the moment, we are at 20, far away from efficient structures. We will lose two multiples by get rid of our Swiss properties, more or less EUR 100 million, without really EBITDA impact. Gives us another 2x multiple to come down. Another 3x multiple from our Non-Strategic assets. Then obviously, and that's mathematical, if you increase your EBITDA, that had also an impact by another three. In 2028, we expect an EBITDA debt multiple by 12. I think that gives you a clear view that we are refinanceable in 2028 and gives us maybe also a good likelihood that we can negotiate good terms in 2028. Having said this, and hopefully you can follow me on my assumptions, I want to hand it over to Michael, who gives you now his view on Peach and the value potential upside, and maybe some other background information. After that, we come back to Q&A. Michael, now it's your turn, and I hand it over to you. Thanks, Gerald. Yeah. Good morning, everyone. Let me start in summarizing Peach's current situation for the coming years. First, and that is for me the key message today, Peach is no longer under threat. All maturing debts have been settled or refinanced on time. The repayment of the convertible bond is effectively guaranteed. Additional signed credit facilities give us the necessary flexibility for the future. Peninsula, the development in Zurich will be completed this year and handed over to the buyers and is operating more effectively. We expect a further upgrade from our rating again. We are once again regarded as a reputable company in the German banking sector. So far, so good, but at least we are missing the recovery of our stock till today. In my view, there are two reasons for this. First, our debt remains too high. Our debt-to-EBITDA multiple is at least 5x too high. Secondly, we need simply to improve our profitability. On the debt side, we will make significant progress this year. We have already secured around EUR 200 million by executing the portfolio deal signed year-end 2025, hand over the completed sales project in Zurich, repay the convertible and sell off the last property in Zurich. Further sales from our Non-Strategic Portfolio will reduce debt by a further EUR 100 million. Overall, these measures will reduce the debt multiple to 15x. The measures introduced in 2025 to improve profitability will complete it in 2026. With the new appointments and reorganization of the letting business, we are achieving much more better results. We have managed to boost our letting performance, secure higher rents, and cut costs. In 2026 alone, we aim to increase net rental income by 6%. The reorganization of the admin departments, the move to Cologne, and the reduction of overhead will lead to further efficiency gains this year as well. Once the transformation is complete, there will be no further need for costly consultancy services. Please note, top line growth and improved efficiency gains will lead to a debt-to-EBITDA multiple between 12x-13x. This is excellent and would bring us gain of 50-70 basis points on the interest side. Unlike our peers, top line growth leads, as Gerald mentioned, directly to an increase in FFO. We are already paying interest costs on current market levels, and with these improvements, we see lower margins. In summary, the new Peach offers significant upside today. Please switch to page 12. Based on the current share price, we have a discount to NTA of 70%. This translates to a current net yield of 8% and mid-term with all the improvements calculated in of 9%. We are currently selling assets from our so-called Non-Strategic Portfolio for net yields between 7%-8%. In my view, with all benefits from our improvements, the strategic portfolio should be valued at min 14x-15x on net rent. While this represents a discount of over 40% on the NTA per share, it also offers upside potential of over 100% from the current share price. We will not be able to close the gap to NTA on our own. We are simply too small compared to our competitors. Despite significant progress, our platform cost per unit will by far be the highest. That is the other truth. Peach, for me, is a takeover target, which makes it all the more important that the company's intrinsic value is reflected in its share price. In this context, because it fits here, a few comments on the hybrid, yet another legacy issue. The hybrid is fully reflected in the NTA, including interest costs. Cash for Peach is a scarce resource needed for top-line growth. That is why we discuss different options here. One part could be acquired opportunistically on the market. That could make sense. We create value for all shareholders. Another portion could be financed through debt. At the current share price, a conversion into shares is effectively out of the question. Nevertheless, we will need to create conditional capital at the next AGM. With this, I come to our midterm guidance on page 14. 2026 is another year of transition. We intend to complete the reorganization of the company, wind up our Swiss operation, sell off a large portion of our Non-Strategic assets, and thereby accelerate our debt reduction. Operationally, we have set ourselves ambitious targets. That's it for the moment. Now we can open the window for Q&A. Please. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you do wish to ask an audio question, please press star one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing star two to cancel. Once again, that would be star one to register for a question. One moment please, for your first question. Your first question comes from the line of Thomas Neuhold with Kepler Cheuvreux. Please go ahead. Yes, good morning. Thanks for the presentation, taking my question, and thank you also for the detailed midterm guidance. That's very helpful. I have three questions. Basically, the first one is on the planned sales of the Non-Strategic Portfolio. First, I was wondering if you can give us an update on the investment market environment after the sharp increase in interest rates in recent weeks. What impact do you think will it have on selling prices, buyer interest, et cetera? And I was also wondering, regarding your disposal strategy, do you plan to sell the whole portfolio at once, or you plan to split it up in smaller portfolios to think you can achieve the book value? And I was wondering if there's anything in the pipeline which might materialize already this year in terms of disposal. That's the first question. I think I'll ask the other two later. Thanks, Thomas. What will be the market at the moment and the split of the Non-Strategic? That's what I understood. Maybe I start with the last one. The 2,000 units, which we were able to sell last year, signing, closing very shortly. I think that was the last big proportion in a portfolio deal. All the others are more or less scattered over Germany, especially parts of them in North Rhine-Westphalia and Lower Saxony. We have here a lot of locations. You see in the deck, in further slides here, maybe there's a pie chart, where you see all the locations that we were able to sell. We have so many smaller locations. Clear answer, no bigger portfolio sales on the remaining Non-Strategics. We are here in the market with local brokers and with our team and sell it piece by piece. You see the smallest one, which I saw was a EUR 100,000 share sales price of one apartment. The biggest one is in the ballpark of, I would guess, something between EUR 7 million and EUR 8 million. That will be the sizes which we get rid of in the next years. That is typically for our Non-Strategics because one of our key criteria was it was scattered far away, smaller units, which are not efficient for us to maintain. I think that was the first answer. Secondly, what are the prices in there? To be honest, I do not want to open here price discussions, maybe also for others who wants to be a potential purchaser for us. I assume that I think we are in the sales process. We do not achieve fair market value. You can't do that. At the moment. We are below that. The investors are different, looking on different products here. Some of them are looking more on the euro per square meter basis. Where you have a lot of CapEx or you have a lot of vacancy. They are dealing a little bit more than euro per square meter. Other assets which are in a good shape and where you have really yielding assets, it's really a multiple on that cold rent. To be honest, I do not want really present here prices because that has maybe also impact on further discussions. Okay, understand. Thank you. The second question is on your 4% organic rental growth guidance. I was wondering if you could split that up into expected market rental growth, further vacancy reduction, and then maybe CapEx-driven rent increases. I think, as I mentioned before, 2026, we have really a one-off impact on the strategic ones by roughly 2%, bringing the vacancy down to a level of lower than three. I think that will be then our, let's say, resilient, stable vacancy as in such kind of a portfolio. That is a rough 2%. Knowing that we ended up last year by 3.8% on a December number, we have a good potential upside to achieve that in 2026. This is one thing. The other thing, I would say 3.5%-4% is split into two pieces. One thing is the normal ongoing business with the levered assets. I would say something in the ballpark of 1.5%-2%, in that range. The other 50% comes from the turnover. At the moment, fluctuation in our is in a ballpark of 11%. We catch up there with our tenant improvement to market rents, and that is the second part of it. You can more or less say half of it comes from the 558 measures and the other 50% comes from the turnovers. Yes. Thank you. My last question is on the EUR 155 million of debt you mentioned in the presentation, which is not refinanced at current market rate yet. I was wondering when is this debt due for refinancing and what is the current average cost of this EUR 155 million? Yeah. The overall amount is EUR 155, but from these EUR 155, there are releases from Non-Strategic in it, so then we get rid of it. We come to that number which you mentioned. The overall coupon in these debt structures is a little bit below 2%. The facilities in that is almost five-seven facilities, so it's a little bit smaller. We do that with savings banks here, with local banks. The maturities is between 2028 and 2030 in that ballpark. Okay, perfect. Thanks a lot. Welcome. Your next question comes from the line of Andrea Martel with NZZ. Please go ahead. Yes. Hello, do you hear me? Clear and loud. Thanks. I also have three questions. One is about some bad apartments that we saw TV documentaries about. The second one about who could be buyers, and the third one about collection risk. The first one is, yes, there were two TV documentaries about very bad apartments with health risks for renters. What are you doing about that? They're probably in your portfolio that you want to sell, but what are you doing at the moment to help your renters there? Starting with that topic, you mean the Rembertiring in Bremen. This is one of our Non-Strategic assets. Yes. This asset is totally let to some local players who are linked to the city of Bremen. We have a very, let's say, challenging tenant structure there. That is the one truth. Vacancy is on a very pretty low basis. That's the one truth. The second truth is we have CapEx backlog in a very high level. We have to make the decision, do we spend CapEx on these assets or do we spend the same CapEx in our core portfolio where we have yielding? Because if you spend CapEx there, you do not have an impact on the rent. It's really CapEx backlog. This is one, let's say, situation for number crunching. The other thing is it's an asset in Bremen itself, and we are able to get rid of all the other assets in the circumstance in Bremen with our 2,000 portfolio deals. Bremen is not our core market. That's the second thing why we want to get rid of it. That's the situation. We are in contact to all the authorities there to make clear that we have no health and safety measures. We are in contact to all these, and we are looking for selling it. Such kind of assets are very hard to sell. There are some appetite in the market. We are in contact to the one or the other investor who are interested, and to do it in the CapEx and the yield at the end. We can assume, let's say, a purchase price on a very low single-digit number, and hopefully, we were able to sell it, and the sooner the better. What about the other one with the legionella? Sorry, say it again. There was another house in, I think, in Marl with a legionella problem. Yeah. Look, these kind of problems you have with such kind of assets in these construction years. This is something where we deal with it on a normal basis. We are in contact with the tenants, we are in contact also to other local authorities. This is, let's say, normal business for us. It is not the average of our portfolio. These assets are linked to the Non-Strategics, and that's one of the reasons why we would also get rid of it. Okay. Thank you. The buyers. Isn't it that municipalities have kind of preemption rights? Will they probably buy it, or is it buyers on the market? No. You are totally right. That is in general the case, that the local ones have the right to step into a sales contract and to acquire it. We also have this thing in our 2,000 units portfolio, where the city of Gelsenkirchen is taking some of these assets which were part of this contract. Also in Bremen, we are in contact to the city. They also mentioned that they have, let's say, an interest in acquiring it. That is also one of the potential investors. Thank you. The last question. You talked about collection loss, 4.4%. You want to bring it down to 2.5%. I thought when tenants are not paying in these kind of houses, then the municipalities usually step in. Is that not the case, that they pay the rent to you when the renters don't pay? That is totally different city by city. If you have someone who is a tenant who is not able to pay his rent on his own because he takes some social benefits. Some of the cities are paying directly to us. This is not, let's say, the common approach. Other cities are paying it to the tenant, and the tenant pass it on to us. Sometimes in these structures, that could be a problem. This is one thing. The second thing is that we decided to centralize the department who was in charge for collection risk from the Peach Points to Berlin so that we have a centralized approach, and then we can do it in dealing with it even better. We know it before we have a clear standard approach and processes to bring down the collection risk to that number which I mentioned. Okay. Which part of your tenants is in that situation that their rent can be paid for from the municipalities directly or indirectly? Yeah. Look, we do not know this number because if you let it out to someone and maybe he is at this time someone who gets this money from the local heroes, it could change during the lifetime of the tenant contract. He is not obliged to give us the information that something has changed. We do not have really the number. In these asset classes, which we are dealing with, so in the EUR 6.50-EUR 7 per square meter, more or less in North Rhine-Westphalia, you can assume that there's a significant part of our tenants will be in that, unfortunately, poor situation. Okay. Thank you. Just one more little last question. In your core portfolio that you keep, do you also have the situation that the municipality pays to the tenant so that they're not directly to you? Yes, of course, we have. As I mentioned before, I think that is an average of the overall portfolio. I think there's not really a big difference between the Non-Strategic and the Strategic. Thank you, sir. Okay. Once again, if you would like to ask a question, simply press star one on your telephone keypad. We do have our next question coming from the line of Philipp Kaiser with Warburg Research. Please go ahead. Yeah. Hello, everyone. Thanks for the presentation, and thanks for taking my question. I would start with the EBITDA bridge on page seven. You outlined the top line growth of EUR 11 million on your road to 2028. Could you shed a bit more light on it? How much of this comes from pure like-for-like rental growth and how much from vacancy reduction? You mean the 11% for top line growth? Yes, exactly. For 2026, it's a 2% vacancy. Yeah. Gives you roughly, I would say, I don't have the number in front of me, but 2% out of 80 must be something in the ballpark of two. The other things are coming from our organic rent growth over three years' time. Okay, perfect. Thanks for the clarification. Yeah. We have that also outlined on page eight in the left pocket. Yeah. Okay. Yeah. Perfect. Another one. With regards to 2028, if you're succeeding the way you pointed out in detail, I much appreciate that. You then have, I think, 16,000 units in North Rhine-Westphalia. Do you have a vision from 2028 onwards for the company? Well, at the end, yes, our budget is really a bottom-up approach for this year, and then we have a five-year planning horizon. I would say after 2028, you can assume that the rent growth is in line with expectations and in line as before with the ongoing growth. I think on the interest, I would say it is not really a bigger impact. We have then maybe some synergies for the remaining pieces of the DZ HYP, which is roughly EUR 200 million and another EUR 90 million from the EUR 120 million. There will be maybe some upside depending on how the rates will be in these years. Given that we have the rates of today, and I would say then our cost levels are in a good situation. We do not have then any other synergies on a standalone basis. If you want to model it, maybe you need a little bit of indexation for these costs, and that's it. I would say it's easy to predict. In general, do you see yourself as an ongoing net buyer to grow the portfolio from the healthy trending we now see? Do you focus on the Non-Strategics or the platform itself? No, the platform itself. Imagine, I think, let's say from 2028, you also dispose the entire Non-Strategics, refinancing is done, and you then end up with a clean portfolio of around about 16,000 units, more or less focused on North Rhine-Westphalia. Could argue that might be a bit too small. I think one option could be to grow from this healthy, small basis or what's your view on the pathway from 2050? Yeah, I think that. Could I add something? As I said, we have for the next years, clearly, a growth story. I don't think, and for me, it's fully unrealistic that we can grow this platform by its own. Therefore, I think as we have seen in the past, platforms like this are not so effective than bigger platforms. Therefore, it's totally clear, first of all, we have to improve our share price. We have to show organic growth. We have to fix all the debt side. We have to come in on the debt multiple side in ranges which works. We are stable, I would say now. As I said, the difference or the discount on the NTA side, this is driven by scale the platform. Without growth, you cannot scale. Therefore, I would say like Informa used the Austrian platforms. They will be consolidated like us. I believe the whole sector will see discounts over the next years, and therefore it's a question of time. Bigger platforms have to decide to grow because we are missing in the whole sector growth. That's needed, and it's good to see that in the market today, you can buy much more cheaper than three, four years ago on higher yields. Therefore, I would say the whole industry needs more fantasy, and fantasy means this is not the story of Peach. This is the story of the industry itself. All right. Thank you. I'm showing no further questions at this time. I would like to turn it back to Gerald Klinck for closing remarks. Okay. Thank you for your attendance today, also for your question. Happy to answer that. Hopefully, we see us again on the next general meeting in June. Unfortunately, I heard we had some technical problems here, maybe with the tone. We put that on our website, and if maybe some words are missing, you can go on our homepage and maybe you can fill the gap. Thank you for attending and have a good day. Bye. Thank you, presenters and ladies and gentlemen. This now concludes our presentation. Thank you all for attending. You may now disconnect.