Good morning, everyone. This is Martin from TAG. Many thanks for dialing in despite the summertime for our H1 conference call. Let's start the presentation on page four, the highlight slide. Perhaps it's worth discussing at this time already, perhaps the five most important aspects of today's publication. First of all, look at our asset disposal activity in Germany. In total, in the first half of 2023, we sold more than 1,000 units. If you want to give me a breakdown between the different quarters, we sold 750 units in the second quarter. 300 units have been sold in the first quarter. This number, so this more than 1,000 units, excludes the so-called asset swap that we announced with the Q1 figures. Regarding this transaction, which was a disposal of 1,300 units and then parallel acquisition of around 700 units, we stepped back from the contract as the buyer was not able to prepare the financing due time. This 1,050 units, just to make this clear, is a clean number without this asset swap transaction. We think that's a quite successful number that allowed us to generate net cash proceeds, which is basically the most important figure we look at when realizing such transactions of EUR 140 million. Looking back in the sales activity in the last 2012 months, we came out now with nearly 2,000 units that we have sold and we, we received total net cash proceeds of more than EUR 200 million, which is for us, of course, something that helped us a lot regarding repaying debt. That brings me to the second point. We've done really material, material repayments of unsecured debt in the last month. Alone in the first half of 2023, we repaid corporate bonds and promissory notes, all of them unsecured, of more than EUR 300 million. Including the repayments regarding the bridge loan and all other repayments for unsecured debt in the last 12 months, nearly repaid EUR 900 million of unsecured debt. On the other side, we were able to raise bank loans in quite a significant amount. In the last 12 months, EUR 490 million, out of which roughly EUR 150 million in the first half of 2023. That also helped us to create liquidity of around EUR 318 million in total. We see we have really broad access to the secured debt market, which is, of course, very helpful in these days. Looking at the financing conditions for the bank loans that we effectively signed in the last weeks and months, the average interest cost was around 4.38%, at an average maturity of around six years. That translates this average interest cost of 4.3% and an average margin of exactly 1%. We've also been able to reduce the ROBYG bridge financing materially. At the end of the first quarter, the bridge financing still stood at EUR 250 million. When you look at the Q2 report at the balance sheet date, that the financing was already down to EUR 175 million, and we did further repayments after the balance sheet date. As today, the bridge loan is down to EUR 75 million, and for us, it's very clear that we will repay the bridge loan in full towards the end of the third quarter, 2023. Finally, this bridge loan is done. Just to remind you, the final maturity would be in January 2024. I think it's fair to say that we have been quite successful regarding asset disposals, regarding repayment of debt, regarding repayment of the bridge loan, but not to forget that the operational business in Germany and in Poland is running quite well. Clearly, we are fighting against higher financing costs, so that's basically the reason why we saw a 7% decline in FFO1, comp, year-on-year. If we include the sales activities from Poland, the FFO, too, show the growth of 11% year-on-year, and EBITDA was growing in both businesses. The sales business and also in the operational rental business in Germany, which is, of course, good, good to know. In general, we saw rising sales numbers in Poland in the first half of 2023. 1,817 units have already been sold, so that should be a good sign for a strong year regarding sales activities. Just to remind you, in total, in 2022, we sold around 2,400 units. 1,800 units already in the first half, compared to around 2,400 units in the whole year, 2022. This clearly weaker year, 2022, in Poland should be behind us. Looking at the portfolio, devaluation, we think nothing that should surprise you. A devaluation of the German portfolio by 7.4%, following an already incurred devaluation of 5.5% in the H2 valuation of 2022. That brings valuation levels now down to EUR 1,100 per sq m or a gross initial yield of 5.9%. We come to back to that a little bit later. Important is that the LTV still stands at 47.5%, that means we just saw a slight increase in, in the course of the year, despite this quite material devaluation. The LTV was at 46.7% at the beginning of the year, now 47.5%, that is clear that the asset disposal in Germany helped us a lot in this regard. Looking into the second half, I mean, clearly it's extremely difficult to predict any valuation results, we know that on the disposal side, we have sold some outstanding closings. We know that especially the fourth quarter in the Polish sales business is a very strong one, so we expect a lot of handovers that will naturally reduce the LTV. We're quite pleased that even in an environment with valuations falling in Germany, we're able to keep the LTV, let's say, at least stable. Looking at other financing metrics, that also worth pointing out, the interest cover ratio and the net financial debt to EBITDA ratio still stand at a very strong 6.4x and 10.1x. If you exclude the Polish state business, the numbers are still at 5x and 13.2x. That should be a good proof that our business creates a lot of cash to serve debt. Coming to slide number five. Yeah, but that's just a quick comment on FFO I and FFO II. Year-over-year, as I already said, a 7% reduction in FFO I, and the 11% increase in FFO II. Quarter-over-quarter, we saw increases in both businesses. In the FFO I, perhaps that's a little bit seasonal. We had lower maintenance costs in the second quarter, 2023, compared to the first quarter. Is this a real trend? No, that's not the case, you know, such, such items have some seasonality in this case, we benefited from them. We are on a good way to meet our full year guidance for 2023, despite the ongoing difficult businesses. As I already said, the FFO II was at EUR 111 in the first half. We expect here, as always, a much stronger second half, as naturally, the fourth quarter is always the strongest quarter in the sales business, as we have here a lot of handovers that then finally lead to the result. Page number six shows you the highlights of the Polish business. First of all, the rental revenues are growing. EUR 2.7 million rental revenues in the second quarter, EUR 1.5 million in the first quarter. More and more rental units are finished in Poland. We have now roughly 2,200 units on the market, and we expect that also the FFO I from Poland will now grow as the renting process moves forward. A strong development in the adjusted net income from sales Poland, EUR 14.4 million after EUR 8.8 million in the first quarter, 2023. The main difference or the main driver for this result was also that the joint venture, the Centerbridge, that we've already announced, was now founded, or not only founded, it already closed in the second half. As we sell, sold land bank into the joint venture, we also benefited here from this earnings-wise. Quick look at page number eight, the income statement. That's worth pointing out that net actual rent is still growing despite sales activities in Germany. We will naturally see now and say, or the rent increases in Germany slowing a little bit down, not because we expect lower rental growth, but we had the closing of transactions at the end of the second quarter. We expect also one transaction to close at the end of the third quarter. That means we have from disposals, a rent reduction, but on the other side, we will have more rents coming from Poland. That makes us very optimistic that the net actual rent should be at least stable in the next months and then growing after that. This already certainly benefited here, seasonal from some lower maintenance expenses and also some other lower property management costs. That meant net rental income was stronger in the second quarter compared to the first quarter. Finally, just a comment on the net financial result. Don't be confused if this net financial result in the P&L is showing some volatility. We have some interest rate swaps in place that are valued at the fair market value at every balance sheet date. Effectively, you see here a valuation loss of EUR 5 million quarter-on-quarter. If you look at the really relevant cash net financial result, quarter-on-quarter, that remained stable. Page nine shows you in detail the EBITDA, FFO, and AFFO developments. I already commented that the EBITDA, not only in the sales business, also in the rental business, they were very positively, and that led them, in fact, to the increase that I mentioned in the FFO I quarter-on-quarter. Also, the AFFO increased quarter-on-quarter, even a little bit more than the FFO I, as we had some lower numbers in our capitalized maintenance and modernization CapEx. This is something more seasonal. In general, we are not cutting CapEx in the German portfolio. To the contrary, we are slightly investing more than in the past as we are clearly on the path to decarbonize our portfolio. The good thing is that in, in overall terms, in overall numbers, this is still something very moderate. Page 10 shows you the EPRA NTA calculation. We saw a 9% reduction in H1 2023, mainly driven by portfolio valuation. This led to a reduction in the EPRA NTA per share of around EUR 2.50. Page 11 shows the financing structure. Looking into that a little bit more detail into the maturity 2023, you see at the balance sheet date, we still had some smaller maturities, as marked with this little star, the EUR 15 million promissory notes, the EUR 14 million corporate bonds in Poland have been repaid in July. After the balance sheet date, we have some ongoing commercial paper that will renew from quarter to quarter, and we have RCFs that we use in Poland for the sales business, which are some balance sheet dates, more used, in some balance sheet dates, less used. Effectively, 2023 is done. Looking into 2024, you see here, as this is a pure view from the balance sheet date perspective, the bridge loan still at EUR 175 million. As I mentioned, after the balance sheet, this bridge loan is already reduced to EUR 75 million. That's then the final repayment that we are doing now towards the end of the third quarter, and after that, what is left are very small, unsecured maturities.... here in, in, in Germany, EUR 59 million promissory note, EUR 23 million corporate bonds in Poland. That's basically coming from existing cash. What's left is EUR 197 million of more classical bank loans in Germany. I would consider this as more a kind of, you know, bread and butter, ongoing refinancing. The overall statement regarding maturities, 2023- 2024, is once this final repayment from the bridge loan is done, now it's very, very visible, 2023, 2024, are basically years where no really material maturities are left, and that's, of course, very good for us to, to say. Looking at page number 13, that shows the like-for-like rental growth, we're seeing not any spectacular or other developments that are worth mentioning. We had 2.1% total like-for-like rental growth, weaker than in the quarters before. You know, this depends also on the development of vacancy rates. If it is stronger, then of course, the total like-for-like rental growth is, is also stronger. This number should increase now in the second half, as we expect a reduction in vacancy rates to come. Overall, like-for-like rental growth, ex including vacancy, increased slightly to 1.6%, and the total investment per square meter, you see this on the top right of the, of the slide, were EUR 22.7 on an annualized basis, which is slightly lower than in the year before. Page 14 shows the developments in vacancy rates. It's basically fair to say that the vacancy rates in the first months of the year remained stable. As in the past year, we expect now that in the second half, as some modernization projects are now finished, we will have renting successes. That should allow us to reduce vacancy rates, perhaps, quite significantly. That makes the guidance that brings us to an overall vacancy rate at the end of the year, between 4.2% and 4.5% should definitely be achievable. Page 16 shows the portfolio valuation in the German portfolio. As I said, we have had a portfolio valuation of 7.4%. This comes on top of an already incurred loss of 5.5% in the second half of 2022. That means we are already down 13% compared to the kind of peak at the end of the first half of 2022. Outlook for the second half valuation for 2023 is, of course, extremely difficult. Are we already done in Germany or in our portfolio regarding valuation losses? That would be too optimistic. It's fair to say that we also expect for the second half a valuation loss. Do we expect it in the same magnitude like in the first half? Would be perhaps surprising, but important for us is also a valuation loss in the same amount if it would happen, is absolutely manageable for us. As I said, we are selling assets in Germany, we are selling assets in Poland that help us to keep the activity stable, and that's for us, the most important part that we know we can really manage valuation losses, even if they're larger than expected. Looking at the overall portfolio metrics now, valuation wise, 5.9% gross yield, EUR 1,100 per square meter. If you look on the right side, that's basically the valuation level, like three years ago. That makes us optimistic that the largest part of valuation losses we have already seen. Clearly, as I said, something, something more will, perhaps, come in the second half of 2023, but the largest part should already been done, and that's, of course, also for us, a good, good result. Looking at page number 19, a quick look on the Polish rental business. We have now more than 2,200 units in operation at the end of the first half of 2023. Another 1,000 units are under construction. That means we will have, around the middle of 2024, more than 3,300 rental units completed in Poland. Just to remind you, the per square meter rent in Poland is more than double the average rent in our German portfolio. That's a rental equivalent, or rental cash flow equivalent of nearly 7,000 units in Germany. Even with the units that are already finished, even with the units under construction, we will have already a material rental cash flow from Poland. Clearly, the plan is, you know, there's two scenarios that we already presented with the Q1 figures. Clearly, the plan is to grow the portfolio further, but we will clearly do this very moderately, step by step, and clearly do this to the largest part, with financing, with cash flow that is created within Poland. We know that we create continuously surplus from safe business. We can use this to start the next venture for rent project. The midterm target is to grow the portfolio over the next five years to around 10,000 units, and that should be a realistic scenario, and that is absolutely achievable. Let me also clearly say this, without any external equity. Page 20 shows some more details on the rental portfolio. As I said, 2,200 units finished. Strong like-for-like rental growth in units, which are in operation for more than one year of around 14%. The vacancy in these units, which are for more than one year on the market, is around 3.7%. Units, which are under operation for less than one year, the vacancy is at 12.7%. Please have in mind that the largest part of these units are not only finished within the last year, they are finished within the last month. We had strong rental results in the last weeks and months, and we are very optimistic that we can reduce this vacancy rate now in the next few months, quite materially. Finally, page 22, the guidance for financial year 2023. To make it short, all guidances regarding FFO I, FFO II, and also other elements and other figures remain unchanged. We are on good way to achieve our guidance, even though, as I said, we have asset disposals. Therefore, we are quite optimistic that 2023 will be the year where we deliver, in the end, quite good results for you. That's it from my side, is an overview for the H1 figures. Thank you so much for listening, but of course, we are now very happy to answer your questions. Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star, followed by two. If you are using a speaker equipment today, please lift the handset before making your selection. Anyone with a question may press star and one at this time. The first question comes from John Wong from Kempen. Please go ahead. Hi, good morning, Martin. Thank you for taking questions. On the bridge loan, you highlighted that you expect to repay it by the end of Q3. What hurdles does this still depend on? Hi, good morning, John. Well, the plan is quite simple. We expect a closing of a larger disposal in Germany at the end of the third quarter. That leads to net cash proceeds of EUR 60 million. The EUR 60 million is then more or less completely used to repay the bridge loan, which is EUR 75 million. The remaining difference is then simply paid from existing cash. Despite this, yes, clearly, we're also working on four further disposals. Clearly, we continue to refinance bank loans and create additional liquidity so that the repayment of the bridge loan should be now very visible. Okay, that's clear. Thank you. Maybe tying into that, 'cause if I remember correctly, you previously mentioned that you were going to be a bit more opportunistic with sales when the bridge loan has been repaid. Do you still stand behind this now that your LTV has ticked up towards 47.5%, and also giving your comments on, on valuations for H2? Yeah, perhaps I, I put it like this, and we will continue to sell assets. That's clear. But, you know, this, how should I call it, more or less former disposal program is then finished when the bridge loans are paid. If you remember our announcements around the rights issue last year, we said, well, we want to achieve EUR 250 million of net cash proceeds from disposals in Germany. Putting everything together that we have sold since then, there was already something signed when we, when we did this, this announcement. We are now at the EUR 250 million, and we, we are able to repay the bridge loan. This was, you know, the, the must do, but it's not the case that we, that we stop now selling. Opportunistic means that we are not so much under pressure, but clearly in this environment, it makes, it makes also sense to, to continue that, because this is basically the way to create liquidity. This is the way to reduce leverage, so therefore, that, that make, that makes still sense. Okay. Thank you. That's clear. Just on the, the, the last one on your dividends. I, I think your slide still says, "Depending on market conditions and completions of refinancing," could you perhaps give a bit more color on your, your thought process behind this? Yeah. Well, regarding the refinancing, I would say now, let's assume that the final payment of the bridge loan is done, so that's, that's achieved. If you look at the market today, has that really changed? Is it much easier compared to some months ago? No, that's not the case. Please understand that we will not give any concrete guidance for, for today, but it's clear, what, if we are more or still in this difficult market environment, management teams should be careful with liquidity. Therefore, we will really look at that more closely now when we publish the full year guidance for 2024. You can be sure that we will do nothing that brings us under pressure regarding leverage, regarding liquidity, when we think about the dividend. We will be here. Let's put it this way, clearly more on the conservative side. Okay. That's clear. Thank you. That's it from my side. The next question comes from Thomas Rothäusler from Deutsche Bank. Please go ahead. Hi, morning, everybody. A few questions. The first one is on disposals. I understand there was a larger commercial deal involved in the volume you showed for the first half year. If you would concentrate on the residential stuff you sold, what was the disposal yield and the discount to the book value? Yeah. Hi, good morning, Thomas, and, and thanks, thanks for the question. To, to give you some, some color on the impact of this commercial building, which was, by the way, our, our headquarter in Hamburg that we sold. I cannot disclose the, the, the purchase price, but what I can disclose that the net cash proceeds from that, so after repayment of bank loans, was around EUR 30 million. That was the impact of this commercial building. That also led to a book profit, because this building was at the partially valued at cost, and that's how we have to account for it under IFRS, because we used it on our own. If you exclude this commercial transaction, in the P&L, then we are again in what we always communicated, that we're selling roughly 8%-10% below the book value, and in this case, 8%-10% below the book value at December. More or less, slightly, very slightly below the book value that we have now in June 2023. Other than that, on the growth yield, I think that had not really an impact. I have it not in front of me, but I would say the average growth yield shouldn't have changed that much if we exclude the commercial building from the total sales. Yeah. The second question is actually on rental growth. I mean, some of your peers have shown accelerated rent table momentum, I would say. Is this, is this a trend you can share as well? I mean, you know that predicting rent table outcomes is extremely difficult. What we think that is fair to say that we will see now an environment in Germany where rents are growing, and you know all the reasons for, for that. That should be very clear. If you really analyze rental growth in detail and look at our like-for-like rental growth, without vacancy reduction, without modernization, that stands at 1.6%. That's not too far away from what you see in the peer group. Therefore, I mean, as in the past, our rental growth is clearly a little bit lower. On the other side, you know, at the end, the return is the most important factor, and we simply acquire these portfolios at what we think are still reasonable prices. The cash yield that we achieve should be still very positive. Yes, there is positive momentum. Do we see this then in next quarter, is it more something for the next two to three years? I recommend that we are here, all perhaps a little bit patient regarding rental growth. This momentum that we have in Germany will come into the rents, but nothing, nothing that happens within weeks. That's more something for a, perhaps a two-year, three-year period, but the trend is very clear. Yeah. Thank you. The, the third question is actually on Poland and the rental business there and, and, and potentially, you know, you might further ramp up the business, as I understand. Could you provide any update here? I mean, with the, with the business overall performing quite strong, would you turn more upbeat here? Yeah, we're, we're very positive in, in Poland. I, I mentioned that the sales numbers have increased strongly compared to last year, by the way, not only in our company or in our operations. If you look at figures, the developers in Poland publish, a lot of them also listed, the trend is clearly very positive. That, that shows us how strong this market is. I mean, you know how other developers in Europe have problems. Look at the announcement in, in, in Germany, and there are some developers that are even going, going bankrupt. Poland has really a very strong underlying market, and that translates now into higher sales numbers and into a very strong demand for the rental product. Yes, it could be the case that we start new rental projects in the next month, but that we say, once again, very clearly, the liquidity for that needs to be created in Poland. We create a strong surplus of cash between EUR 50 million-EUR 60 million a year from sales business. We can use that for the next rental project. Yes, of course, we want to grow the rental portfolio in Poland as well. As you simply see the strong letting results. Perhaps the final comment on that, you've seen in the presentation that we have now an occupancy in the projects that have been finished in the course of 2023, of already almost 90%. Within three or four months, these projects have been rented out quite strongly. Originally, such a development has been expected from us, not within three to four months, more between six and eight months. That gives us further confidence on how strong the dynamics in the markets are. Mm. I mean, what, what kind of financing options would you have in order to, to pick up the rental business ramp up, you know? Yeah. Yeah, we're in, let's say, also concrete discussions with banks and other institutions about mortgage-secured financing in Poland, perhaps also in Europe. That would lead clearly to higher interest rates compared to what we have for a German portfolio. You've seen that in Germany, we are financing mortgage secured at, let's say, between 4.0 and 4.5%. In Poland, that would be perhaps higher, but not that material higher. The full portfolio in, in Poland, the full rent portfolio is unencumbered. We have funded that in the past completely via TLG shareholder loans. As of today, regarding the projects that are already finished, the TLG around EUR 250 million. If you just assume a 50% LTV, that would already give us financing capacity, to make it simple, of around EUR 125 million. That would be already something material to start further rental projects. That, in combination with the surplus from the disposal business, is really, I would say, a very visible way, how we can create, how we can grow the rental portfolio in Poland in the, in the next quarters. ... Mm-hmm. A last one actually on bank lending, where you have shown quite, quite activity. What is the LTV level on, on average, the bank supply? Well, for a new bank loan, that's the LTV stands around 60%, but that's not the really relevant metric we discuss with banks. That was the most relevant metric perhaps two years ago or 1.5 years ago. Today, the debt service coverage ratio, that's the basically the number that limits the new loan amount, and this was 1.5 or two years ago, absolutely not an issue because interest rates, interest rates were at 1%. Now interest rates are above 4%. When we discuss with the bank a new loan amount, and the bank requires certain debt service covers cover ratio, and then if you translate that into an LTV, we are perhaps at around 60%, which is not that much different compared to financing levels that we achieved in, in the past. Still, financing levels, also other conditions like covenants or margins, have not changed that much. Clearly, mid-term rates are higher than, than one and a half or two years ago. Okay. Thank you. The next question comes from Manuel Martin from ODDO BHF. Please go ahead. Yes. Good morning. Thank you for taking my question. A question on CapEx. Do I understand right, that CapEx is momentarily a bit elevated due to decarbonization might decrease in H2? However, given decarbonization, is it fair to assume that it will increase in 2024 again? On that, could that have an impact on rental growth, which is a bit subdued, I have the impression? Clearly, CapEx has increased over the last two years, three years. We are now clearly on the path to decarbonize our portfolio, so we're not cutting this in Germany. That's for us, it's, it's an easier decision, and perhaps for others, as the absolute amounts are still very manageable. We've been talking about CapEx in total, including here maintenance or capitalized maintenance, perhaps EUR 60 million-EUR 70 million. This goes then more perhaps today to EUR 80 million-EUR 90 million, but still with good financing access from subsidized loans we get here in Germany from the KfW bank, for example. Yes, we are investing more. Again, you should not expect to have a very significant increase. On a per square meter basis, if you really put everything together, so whether this is maintenance, capitalized maintenance, or modernization CapEx, it's been in the past between EUR 20-EUR 21. Now that's going to EUR 25 per sq m. That's the main message is, yes, we're investing more. We're not cutting, cutting CapEx, and that will lead also to more rental growth from modernization in the future. On the other side, that's not really, you know, a very material shift, if and not something that affects our liquidity very materially. Mm. Okay. Second question. Don't know if you can give some details, but the asset swap that didn't take place, is it possible for you to give us a bit more details why the financing did not happen? That's unfortunately not really possible for me because this is something that the, the, the buyer or, or, contractual party should, should, should answer. In the end, we stepped back from this contract. I think we said in the, in the, in the half year report that we still want to sell at least part of this portfolio. In smaller trenches, it's also not excluded, that we have with the contractual party, with our contractual party here in this, this, this asset swap deal. Perhaps a further agreement, it's not anymore planned to, to, to buy the roughly 700 units in East Germany. We have received a contractual penalty from that, and let me say that this was not our goal to go for the contractual penalty in such a transaction. You know, in this environment, you also need to try transactions that are perhaps not plain vanilla. The good thing is that we are also able to sell, despite this asset swap, we have sold more than 750 units in the second quarter. Yeah, this environment also requires things that you simply try, and from time to time, it doesn't work out. Is this a big problem? No, not really, because we did not really, you know, put this very hard in our business plan as we knew that there's a certain financing risk in this or has been a certain financing risk in this transaction. That was also communicated from us when we reported on this sale in the Q1 figures. Okay. Thank you very much. As a reminder, if you wish to register for a question, please press star followed by one. The next question comes from Simon Stippig from Berenberg Research. Please go ahead. Good morning. Thank you very much for taking my questions. I have a couple in regard to Germany. You showed on the FFO at back of revaluation, EUR 467 million, that's higher than in the P&L. I know there are a lot of moving parts, but could you explain this figure? ... Hi, good morning, Simon. Sorry, that was a bit difficult to understand, because the line was not so good. Can you repeat to what, what figure you're- Sure. Referring? Sure. It's the, it's the figure, I think it's slide 9 on the presentation, the FFO calculation. You add back the valuation result of EUR 467 million in Q2. That differs from the number you're showing in the P&L, and then also in the valuation result. Maybe you can reconcile that, that would be great. I know there are moving parts in that, just to give a bit of a better understanding there. Yeah, I assume that this difference, let me check this after the quarter, and I will come back to you. Relates to Poland. Because this is roughly the valuation difference that we have between Germany and Poland. This valuation loss that we have in the P&L in total, EUR 455 million, is in fact, EUR 470 million, roughly, valuation loss in Germany and around EUR 15 million valuation gain that we see in Poland currently. Okay. One more question in regard to, to the commercial building you sold, your headquarter here in Hamburg. Can you disclose the buyer, or if you cannot disclose the name, can you disclose what kind of buyer it was, if it was a pension fund, a family office, et cetera? Yeah, the, the buyer was a European institutional fund, not, not a German fund. I cannot disclose the name, but, you know, quite, quite, quite well known, who perhaps knows more in this business than, than, than we. I mean, they're, you know, that the commercial building, it's, it's an office building. In In fact, that this is not really our core business. We always own this property because to a smaller part, not as part is rented out, to a smaller part, it's, it's our, our headquarter. Perhaps there's some upside, and I have no doubt that this was a very professional buyer, but for us, this was something where it simply made sense in this environment, a way to create liquidity and also not part of our core business. Okay. I assume you assigned a 10-year lease, just- Yeah. Yeah, we will stay here. Okay. That's correct. Okay. Another question in regard to the German portfolio. First one would be, you revalued the whole portfolio, I assume, the 100%. The second one to that, the latest units you disposed of, are those, can you indicate the book value or book loss, and then in comparison, of course, to the June balance sheet values? The latest transactions that we've been done has been slightly below the new book value, but it was not any more, you know, the 10% discount, it was tighter. Perhaps 5%, if I have this correctly in mind, below the latest book value. At, on average, we sold in the first half of 2023, I would say around 10%, but slightly above that, compared to the December book value. If you compare that with the June book value, so the new book value, the whole disposal activities have been simplified a little bit, not too far away from the latest valuation. That gives us also some, some comfort. I mean, as I said, we are not done with the valuations in Germany or in German residential. Looking at the transactions that we did, looking at the portfolio metrics that we have, 5.9% gross yield already and EUR 1,100 per sq m, that makes us optimistic that further devaluations should hopefully be not that material. No one has the exact crystal ball, so let's see what happens in the next months regarding the valuation. We have also to say this very clearly, no indication so far from our value. Okay. Maybe one in regard to the Poland, the Poland regulation. The government introduced this new regulation in regard to how to buy schemes. Did you see any impact on, on the, on the demand side for your, for your assets on. Not on the development to hold segment, but on the development to sell segment? This impact is very clearly observable. I mean, this new regulation now was effective from the 1st of July. It did already affect sales numbers in the 1st and 2nd quarter, as it was clear that a lot of buyers would come to the market now after this new law is implemented. Perhaps some people that were cash buyers, that were observing the market, then already knew some months back, well, that's now the probably time to buy because prices will not come down. On contrary, prices will go up. That's also, by the way, something that we are doing and those other developers are doing in Poland. We're increasing prices, not dramatically, but prices are going up. We will see definitely good sales numbers in the 2nd half, but good on strong sales volume. I mean, we know that this is also something the pure number of units sales, of course, depends on the prices that you, that you ask for. You always need to find the right mix. To make it short, yes, clearly this, this program helps, and clearly this is something that will lead to, to good sales result. Just to remind you, good sales result in 2023 does not necessarily mean that we have it already in the P&L. If we sell the assets, then we construct them, then we hand them over. This is then more something when we sell an asset today for the result in the P&L in one and a half years. Sure. Okay, great. Thank you. The next question comes from Kai Klose from Berenberg. Please go ahead. Yes, very good morning. I was a little bit late to the call, so maybe if the question has been answered, apologies. The first one would be on page six. Could you indicate a little bit on the letting portfolio in Poland? What is or what number of units you need to have on an annualized basis in the letting to be FFO I positive? Is it fair to assume to get that only for the fiscal year 2023 or more in 2024? The second question would be on page 27 on the German portfolio. Could you indicate or could you elaborate if there was some, either some seasonality or CapEx related, reasons that we saw a bit of a shift in vacancy rates for units like Leipzig or locations like Leipzig, or why vacancy rate in Chemnitz, despite of high amount of CapEx, only come down quite slowly? Thanks. Yeah. Good morning, Kai. First of all, regarding your question, for the rent portfolio in Poland, the portfolio is now at 2,200 units. As I said, a lot of these units have been finished during the course of the first and second quarter. Now we are really in the process where we start to collect the full rent, as the occupancy rate is around already 90%. That has, of course, a positive impact on the FFO I from Poland, and we expect that this number is already positive for the full year 2023, and will then grow thereafter, as there are still projects under construction. Again, we expect an additional 1,000 units to be completed in the next, next 12 months. The FFO I from Poland will be quite soon, soon positive. Yes, there is also seasonality in vacancy rates or not seasonality that depends also on finishing modernization programs, and especially in Chemnitz region, which includes Döbeln as a, as a larger location. We have invested quite significantly. You can see, if you look at page 27 on the very right, the very right column, the CapEx per square meter was the highest in Berlin, across the entire Chemnitz region. Now, we have finished modernization projects, so that should then, of course, be a driver for further vacancy reduction in the next months. To understand, in Chemnitz, including Döbeln, most of the work is to be expect, you expect to be completed towards the end of the year, or it has been completed in H1? Clearly, you should not expect that this is then once you've finished a modernization program leading to vacancy reduction the next day, but clearly then over the next weeks and months, we should hear the improvement in the vacancy rate. Any new regions where you intend to spend more in, in the future or, or 2024, 2025, or let's say 2024? I would say there's not one specific region that we have chosen as a hotspot for our CapEx programs. Looking back in the last two to three years, if you look at the numbers, we've clearly invested a lot. For example, in our Berlin portfolio, which is a portfolio consisting of locations within the in belt, for example, Brandenburg and Havel, was really a focus of our investment, and we see the success already. As I said, the Chemnitz region was that. In general, the CapEx strategies unchanged, meaning in regions with higher vacancy rates, we will invest more. What is now new is that, as I said before, this decarbonization element is coming more and more into our CapEx strategy, and that could also then lead or will lead to the fact that in a portfolio that has the vacancy rates are already very low, we're still investing, or we are investing because we need to get that portfolio to climate neutrality, and that's also in such regions, there is investment needed to do this. Awesome. Many thanks. The next question comes from Marius Basto from Société Générale. Please go ahead. Hi, good morning. Thank you for, for taking my question. Just two remaining questions from, from my side. Just firstly, a bit of a follow-up on the Poland residential for rent business. You mentioned your, your, your expectation as for a positive FFO I contribution in the 2nd half of the year. As lettings have been ahead of, ahead of your expectations, what are your expectations for that FFO I contribution in full year 2023? Yeah, hi, good morning, Marius. It's a bit hard to understand for me, but yes, we are expecting a better FFO I contribution from Poland in the second half, as now the portfolio to the very largest part, the finished units, a very largest part are rented out, and this clearly leads to higher rents and a better, better earnings contribution. Okay, very clear. Any absolute number you can provide on, on that business for, for full year 2023? Yeah, we're not guiding absolute numbers as of today. Okay. We will publish the full year guidance for 2024 in with the next earnings call, and here we also will give more details on the development in Poland for the sales business and also clearly for the, for the rental business. ... Okay, very clear. Thank you. Then just secondly, on, on bank financing, I think you mentioned you did EUR 150 million over the first half. Can you give us any guidance over additional secured financing you, you have under discussion? Also any, any discussions you're already having to cover next year's bank refinancing or, or, extensions, of, of those, of those banks facilities? That's indeed the, the main focus that we have today in our financing department. Doing the refinancings that are due in 2024, already in the, let's say, next month. With doing that, as in the past quarters, we clearly expect also an additional cash inflow, because the clear target is not only to obtain further extension of the bank loans, so another five, seven or 10 years. These bank loans that are due today or are due next year, have been amortized over the past, perhaps seven or 10 years old. Value has grown definitely compared to seven to 10 years ago. If we then leveled it up to the LTV that I mentioned, around 60%, that really then creates additional cash inflow. I cannot comment today on how much that is, but that's the clear focus now, that we tackle already the maturities or a large part of maturities from 2024 now in the next weeks and months. Okay, very clear. Then just finally, from my side, can you give us a bit more details of this transaction penalty that, that was applied to the, the failed transaction or this asset swap deal, in terms of the magnitude, and has that already been received in the half-year numbers, or is that, is that a post-period end amount? Thank you. Well, first of all, it's not in the numbers. I mean, we stepped back from the, from the contract in July, so and the contractual penalty is now due in August. I cannot comment on the magnitude of this contractual penalty. Please be aware, it's more than just something symbolic, so it is material. Again, as I said, our target was clearly not to get to go for a contractual penalty. The target was to close the deal. That did not happen, but it's not, how should I say, the drama for us. I mean, we've been able to sell other assets. Okay. Very clear. Thank you very much. The next question comes from Celine Sohieung from Barclays. Please, go ahead. Hi, Martin. I got two questions here for you. I think the first one would be related to modernization CapEx. You're spending money on modernization. There was EUR 36 million going into your AFFO, and yet there was no contribution of modernization in your 1.6% like-for-like rental growth. How do you explain that? I understand part of it is linked to decarbonization. Can you still confirm that you're getting a return out of that modernization CapEx? My second question, follow up to what Marius asked. That penalty, can you confirm that it's not going into your FFO number for the full year? Yeah. Hi, good morning, Celine. First of all, not all of our CapEx is going to existing or apartments where we have existing tenants, because only such then apartments or such transactions qualify for the modernization surcharge. That does not mean that it's the CapEx without return to the contrary, when we put CapEx into apartments or apartment blocks, where we have vacant apartments. This is then clearly something that leads to the possibility of letting this apartment out, which provides normally much stronger returns, and then you see the success in vacancy reduction. It's not something that happens the next day. You are doing the modernization, you invest, we have increased CapEx. Then afterwards, on one side, and this is a smaller part, you have the possibility to raise rent from existing tenants, and that translates into modernization surcharge and rental growth. That is then shown as rental growth from modernization. On the other side, modernization of vacant apartment is then shown in rental growth from vacancy reduction. If you want, the rental growth from vacancy reduction has also a modernization element as long as it refers to modernization of vacant apartments. Can I push back on that? Because you are still spending, you have spent money on modernization CapEx in the past, so you should see some kind of contribution in your like-for-like, as of now. As I said, vacancy reductions are also seasonal from quarter-to-quarter. I mean, if you look at the full year, 2022, we had a strong vacancy reduction, and this was also then an outcome of modernization projects in the past. I'm not concerned that now we are investing and the vacancy reduction is not happening anymore. Please be a little bit patient. Let's see how the next months develop in the overall financial year, 2023, and I think that's how one should look at it, not so much from quarter-to-quarter, more on a longer period. Year-on-year, you will see that we are spending CapEx, and we achieve vacancy reduction. Thank you so much. Can you address that penalty on the asset swap? Yeah. Again, I cannot disclose the amount of the penalty. It will not flow into FFO I. Okay. The penalty will flow into FFO II, as this is part of the sales business. It will go into your FFO II? Yeah, because it's part of the, the sales activities. Thank you. There are no further questions at this time. I hand back to Mr. Thiel for closing comments. Yeah, many thanks from my side for listening into our call. As always, if you have questions left, please feel free to contact us. We are available, and we're looking forward to see you in the next weeks and months on the road. Many thanks again, and have a good day.