I would like to remind you that all participants will be in listen-only mode and that this conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star followed by zero. The conference will not be recorded for publication or for broadcast. At this time, it's my pleasure to hand over to CFO Martin Thiel. Please go ahead. Yeah, many thanks and good morning all. This is Martin. Welcome to our annual report 2024 conference call. Many thanks for dialing in. Perhaps this year, kind of special situation as we already published our preliminary results roughly one month ago at the end of February. We can tell you upfront that compared to these preliminary results, the final results did not change. Basically, all numbers were confirmed after now the audit is completed. Let's start with the presentation on page four, which is the highlights slide. Perhaps to summarize the main messages for today's photos. Firstly, FFO1 came out even slightly above our guidance at EUR 175 million. Guidance range was EUR 170-174 million. What was better than expected was the rental results in our German business. Here, the EBITDA, so the operational business in Germany, was performing quite well. We had a very strong fourth quarter from the energy business. What was perhaps even more important is that we had quite decent like-for-like rental growth in the German portfolio of around 3% in 2024 after 2.3% in the previous year. The vacancy in our residential units in Germany fell to 3.6%, a reduction of 40 basis points in the course of 2024, which was for us, if you remember our history, where vacancy rates stood some years ago, definitely a big success. Not only the rental business in Germany and FFO1 performed very well. Poland showed a very strong development in 2024. Here, namely, the sales business was stronger than expected. We ended up with the net income from sales in Poland of EUR 66 million. It was quite significantly above our guidance, which stood between EUR 46 million and EUR 52 million. This increase in the sales result in Poland was due on the one side to better EBITDA, so better operational development. We had higher margins in the projects that we handed over than we originally expected. We also sold part of our land bank, not too much, but we used here simply opportunities to sell part of the land bank. On the other side, we had better than expected interest income in Poland because during the course of the year, we had a strong cash position. As a consequence, not only the net income from sales in Poland was above the guidance, also FFO2, which comprises the rental result, FFO1, and the net income from sales, was better than expected. Looking at sales numbers in Poland, we sold around 2,000 residential units compared to 3,600 units in the previous year. Yes, this was less than expected and of course less than the previous year. Perhaps two comments on this. Firstly, 2023 was clearly an exceptional year with a tremendous sales result. On the other side, and that's also important, sales prices in Poland in the course of 2024 increased by another, depending on location, on average 5%-10%. That means that the sales volume that we achieved was still on a very good level. If we look into 2025 to give an outlook already now, we see that we have an increasing number of units sold already in the fourth quarter of 2024. Therefore, our expected number of units sold for 2025 should be at around 2,800 units. This is in line with the guidance that we already gave you in November last year. Looking at the balance sheet, firstly, NTA per share grew in 2024 by 5% despite greater portfolio or valuation loss in the first half of 2024 in the German portfolio. Still a quite decent result. In the second half of 2024, the trend from valuation losses in Germany, which lasted now for more than two years, stopped. We had an even slightly positive value increase of 0.9%. This is clearly good news. German valuation levels remain on a, from our perspective, quite moderate level. We're valued now at a gross yield in Germany of 6.6% compared to 6.3% at the beginning of the year, and the value per square meter of slightly above EUR 1,000. The fourth point to mention is that our strong liquidity position. The liquidity position was already quite good at year-end with a little bit more than EUR 600 million of cash in the balance sheet after the issuance of a EUR 500 million corporate bond in August last year. We increased this cash position by issuing new convertible bonds in March this year of EUR 332 million. On a pro forma basis, the cash position stands at nearly or more than EUR 930 million. This is good for two things. Firstly, all upcoming unsecured debt maturities in the next two years are already covered. Secondly, and that's also important, now we really have the basis from the strong liquidity position to grow in Poland. As you know, in Poland, we've got ambitious investment plans in our rental portfolio. Therefore, the basis for further growth is now clearly there. As a last point from the highlight slide, all guidances for financial year 2025 are fully confirmed and are unchanged. We are proposing a dividend for the next AGM, which takes place in May this year, of EUR 0.40 per share. That translates into a payout ratio of EUR 0.40 of FFO1. We will offer our shareholders also the choice between a cash dividend and new TAG shares, meaning a scrip dividend. Let's move on to page number five. You'll find a lot of details. Perhaps a quick look at the disposals in Germany because we haven't touched this yet. We sold in financial year 2024, 1,400 units, a total selling price of EUR 143 million. The average gross yield at which we sold was 5%. We even managed to achieve a slight book profit of EUR 6.6 million. Looking forward into 2025, basically our disposal program in Germany is now we should not expect really major disposals in Germany in the course of 2025. Clearly, opportunistically, we will also look at the market to dispose something if we can really exit at a price which is then more meaningful above book value. Also, but that is really a smaller share, perhaps some non-core assets that we will sell. On the other side, we are also looking at potential acquisitions in Germany. You should not expect here really strategic, very large acquisitions. If we see opportunities in the market in sizes like we bought in previous years, portfolios EUR 30 million, EUR 14 million in East Germany, high yielding in markets that we know very well. Just to give an even idea, yes, we would also be happy to do such acquisitions. Page six shows you more details on the Polish portfolio. Perhaps just to remind you that we also disclose, you see this on the bottom right, the NTA and the net debt for our Polish sales business. Perhaps interesting to realize that although this business, the sales business, delivers an adjusted net income this year of EUR 66 million, last year even EUR 83 million, the share of this business in the NTA is very small. It is just EUR 3.29 because most of this business is not reflected in the NTA. For example, the full goodwill is excluded. Also, most projects are valued at its cost. Therefore, the NTA impact of this very profitable business is still small. Moving on to page number eight, where you see more details on the EBITDA, FFO, and AFFO calculation. As said, the EBITDA in the German rental business was even stronger than expected and was basically on the same level like last year despite the disposals we did in Germany. Not only the EUR 1,400 units that we saw this year, also in the year before, we saw around EUR 1,300 units. That means we've been able to keep the EBITDA in the German business and the German rental business stable. That means on the other side, as we have now stopped our disposal program, or at least the formal disposal program, there should be definitely the expectation from our side that the EBITDA also in the German business is growing. Also the Polish rental business delivered a quite nice EBITDA contribution. It's still quite small, but EUR 12.2 million. We will discuss this in a second. This will grow in the future quite strongly. As said, FFO1 above expectations, up year on year by around 2%. Also, AFFO is up by 12% year- on- year because of slightly reduced modernization CapEx. Do not see this as a trend. Modernization CapEx is simply something which has a kind of swing. Therefore, you should not expect a strong increase in CapEx in the future. That is not the case. On the other side, please do not read too much into that if the AFFO is in some year a little bit higher or a little bit lower than in the previous year because CapEx simply has this cyclicity. Page number nine shows you the EPRA NTA development. I also already mentioned the 5% increase despite the valuation loss that we still had in the first half of 2024 in Germany. If we eliminate this on a pro forma basis, if we would have a valuation result of zero, the EPRA NTA growth would have been around 8% year- on- year. That shows us that our business, the rental business in Germany and in Poland, as well as the sales business in Poland, even in a situation with zero valuation effects, leads to quite decent EPRA NTA per share growth. 8% per year should be here a quite strong number. Page 10 shows you the financing structure. We are now at average cost of debt of 2.6%. The average maturity is 4.4 years. The average maturity will increase a little bit now after the issuance of the new convertible bonds after the balance sheet date. This convertible bond from March is not included in these figures. LTV is at 46.9%. That is still above our LTV target. From our perspective, it's not far away. You perhaps remember that it's been already an LTV of around 46%. What we did in the second half of the year, especially in the fourth quarter, is that we did some, yeah, quite significant investments in land bank in Poland, especially for the sales business. For example, in the fourth quarter alone, we had net investments here of around EUR 100 million. This EUR 100 million investment in land bank in Poland increased the LTV by around one percentage point. That means we have now really a quite strong land bank. In Poland, if we look at both businesses, rental business as well as sales business, this comprises around 27,000 potential residential units compared to around 21,000 residential units at the end of the previous year. Therefore, not really big investments are needed in financial year 2025. That should very naturally come down or bring down the LTV. Additionally, as already discussed, we are proposing, as already announced, quite, yeah, let's say, reasonable moderate dividend payout that ensures on one side further growth, but also keeps the LTV under control. You find more details on financing, especially the maturity profile on page number 11. Again, with the pro forma liquidity that we have of around EUR 930 million, everything that is coming up when it comes to unsecured financing is already refinanced. That should bring us in a good position as of today in a situation where markets are more volatile than some weeks ago. Let's move on to page number 13 that shows you some data from the German portfolio. As I already mentioned, a quite strong development in like-for-like rental growth. 3% total like-for-like rental growth. You see this on the bottom left, including vacancy reduction. Perhaps even more interesting and positive is the trend in what we call basis like-for-like rental growth. That is the light blue color, which came out at 2.5%. That is a rental growth which is more or less purely driven by tenant turnover and rent increasing from existing tenants. From the Mietspiegel, for example. It has increased from 1.5% in 2022, which was the same number the year before, to 1.8% in 2023, 2.5% now. That shows you that also in our regions, we have very strong underlying dynamics. Rental growth is picking up even if we leave out any impacts from vacancy reductions. Page 14 shows you the development of the vacancy rates once again over the years. We are very happy that we are now at a vacancy rate in the German portfolio of 3.6%, starting from 4% at the beginning of the year. This is for us really a very good achievement. We show here the development from 2021 onwards. If we would here also show some years before, you would see that the vacancy rates have been in our portfolio clearly higher as we had acquisitions with higher vacancy rates in the past. That shows us that the assumption that we had some years ago that also in the secondary cities portfolios will show very strong development was right. We still think that there is room to improve this. The 3.6% vacancy rate should not be the end of the development. They should clearly go down again in the course of 2025. Page 15 shows the portfolio valuation in Germany as an overview. We still had a yield expansion in the course of 2023, so in the course of 2024, by around 30 basis points. As said, we are now valued at a 6.6% gross yield. And 6.6% gross yield in a world with interest rates that we have as of today that clearly increased now in the last weeks is still a very reasonable valuation yield from our point of view. So our portfolio still delivers a quite decent cash yield, even if financing rates are on a level as they are today or at a slightly increased level from the last week or last weeks. EUR 1,040 per sq m is the value now on average for the portfolio. Also, this should be a quite moderate level. An outlook for 2025 is, of course, too early. I mean, let's see how the development in interest rates is now in the next weeks and months. That clearly needs to be observed. As of now, we do not see values under pressure. Normally, our base case for 2025 is something like a flattish or a stable valuation. At least we have not factored in any valuation gains or losses into our business plan. Let's move on to the Polish portfolio. Quick look at page number 17, which shows the rental business in more detail. Still good like-for-like rental growth in Poland with 3.2% after two exceptionally strong years. More than 10% last year and more than 20% the year before. Definitely success that rents are still growing in Germany and in Poland after these two strong years. Vacancy in the total portfolio was 4.9% at year-end, but some of the units or some of the projects have been completed towards year-end. If you look at the portfolio and just look at the apartments that are finished for more than one year, the vacancy rate in the portfolio was just 1.5%. Page number 18 shows the planned development of the Polish Build-to-Hold portfolio. We have 3,200 apartments finished at year-end 2024. Around 1,500 units are already under construction. That leads to an average or to a number of units finished at year-end 2026 of around 4,700 units. Two years of construction time. Also the further growth is very visible. As I already said, we have now a strong liquidity position. We have a huge land bank that we can use for the rollout of the rental portfolio. We have an excellent team, a great platform in Poland, who can execute this. Although it is a midterm plan over the next around four years, we think this growth in the Polish Build-to- Hold portfolio is very visible. That will deliver quite strong EBITDA rental growth. We give you some numbers here on the right side. These are numbers that you already know from our last presentation. Just to remind you, this EBITDA growth from the Polish portfolio, from the Polish rental portfolio, will lead to growth in EBITDA from the rental business of around 25% in the next four years. On top of this, we will for sure see some further growth in the EBITDA of the German portfolio. Pages 19 and 20 give you more details on the Polish sales business. I think I already mentioned the main messages. Less number of units sold in 2024 than in the very strong year 2023, but based on higher sales prices. Also the number of units that we handed over in 2024 was lower than in the previous year. This was clearly already expected. Again, in the units that were handed over, we had even better margins than we expected. A typical gross margin in our sales business is still above 30%, more around 32%. That has not really changed. To the contrary, it has even slightly improved over the last two- three years as sales prices have increased. Finally, on page 22, a look at the guidance for financial year 2025. I can make it short. The guidance is unchanged for FFO1, for net income from sales in Poland, and also from FFO2. Looking at the strong results that we presented from 2024, we are very confident that we are on a good way to achieve these numbers. That is it from me. Thank you already for your time and to listen to the presentation. I am now very happy to answer your questions. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the question queue. If you wish to remove yourself from the queue, you may press star followed by two. Participants are requested to only use handsets while asking a question. Anyone who has a question may press star and one at this time. The first question comes from Marius Poetzsch from Bernstein. Please go ahead. Hi, good morning. Thank you for taking my questions. Thank you for the presentation. Just a couple of questions from my side. Firstly, you mentioned you've obviously stopped your formal disposal program in Germany. You mentioned you could look at maybe some smaller acquisitions. I'm just thinking, assuming there's enhanced market uncertainty and questions over the trajectory of property values from here, could you foresee a scenario where you maybe have to continue to sell in Germany? Just on the Polish portfolio, I see there's some vacancy in Wrocław, for example, from a new project in the lending process. How are discussions progressing on that one? How does this compare to your leasing targets? Thank you. Yeah, good morning, Marius. To answer your first question, yes, indeed, we have stopped our disposal program in the sense that disposals are no longer needed for upcoming refinancings. I mean, this was clearly a target of the disposal programs that we had in 2022, 2023. Basically, I was still in the first half of 2024. Now this is completed. Therefore, we're not under pressure to sell. As of now, we don't see a world upcoming where property prices are falling, leverage is going up, and therefore we need to sell. I mean, I'm optimistic that the increase in interest rates that we saw in the last weeks, which were still only, let's say, only 30-40 basis points, does not lead to a situation that we have experienced two- two and a half years ago. Therefore, I'm not seeing the need that we will be in a situation to start significant disposals in the future. Yes, of course, we are flexible in this regard, but we are not expecting this situation. When we talk about acquisitions, again, we handle this with care. Yeah, we're not here under pressure. We've got a very natural growth plan in Poland, which is, as I mentioned, quite visible. Therefore, there is already embedded growth in the company. If we find something on top, if we find opportunities in Germany, yes, we're happy to look at them and also to buy something that makes sense but without any pressure. The second question was, I'm not sure if I understood it correctly, that was to one project in Wrocław that showed higher vacancy rate in the rental portfolio, right? Yes, correct. On slide 17, the 9.8% vacancy. Yeah, yeah. The pure reason for that is that this project or project stage, to be more precise, was finished in the fourth quarter of 2024. Therefore, we've been in the process of freezing that up. As of today, this vacancy rate is already significantly down. This is a clear trend that we see with every stage that we complete in Poland. It takes between, let's say, three- six months to rent out such portfolios or such stages. The vacancy rate is around, let's say, 2%, which is in light of somewhat higher fluctuation that we have in our Polish portfolio. We think a strong sign for the demand. Very clear. Thank you. The next question comes from Thomas Neuhold, Kepler Cheuvreux. Please go ahead. Yes, good morning. Thank you for the presentation. Taking my questions. I have several ones, and maybe we take them one by one. Firstly, I was wondering, probably it's too early, but can you tell us what is your opinion on the impact of the huge German fiscal packages on the German economy, the retail sector, and TAG? Do you see the risk of elevated wage and material cost inflation due to the huge increase in infrastructure spending, which is planned? Yeah, good morning, Thomas. For us, the main topic to observe as a potential consequence of this quite huge investment program is the development of interest rates. That sounds perhaps simple, but when I look at other potential impacts, we are not involved in new construction business in Germany. I have, by the way, my doubts if such investment program will now bring a lot of units to the markets. Still, construction costs are extremely high. This could then also lead to more construction price inflation. Yes, it would have a certain impact on our modernization projects. Looking at the overall absolute levels that we spend here, for example, on CapEx, it is still moderate. Therefore, we can digest this. Cost inflation developments in the new construction space is something that is not that relevant for us. As discussed two minutes before, I mean, one needs to observe the interest rate developments. As of today, I think it is still all okay. If I look, for example, at our bond yields currently, if we would issue a new corporate bond today, that would land perhaps exactly on the conditions of the corporate bond that we issued last year in August. Interest rates are a little bit higher than last year. Margins have come a little bit down. Therefore, still, it is a situation that we can handle very well. Okay. The second question is also more of a top-down question. If we hopefully get peace in Ukraine, do you expect any significant impact on your Polish operations? And maybe can you remind us which share of the acquisitions were done by Ukrainians last year and the year before? Is this important by a group in the Polish operation? Yeah. First of all, thank you for the questions because we receive this question from time to time now in the last week. Just to inform everyone, if you look at the appendix of our presentation on pages, I think it is 36 and 37, we inserted two slides that show, hopefully, the strong fundamental data that the Polish market had and will have in the future. That is something that is not impacted mid to longer term from potential positive and negative impacts from the war in Ukraine. Yes, clearly, 2023 was a year that was exceptionally strong. This was also driven by a strong inflow of people from Ukraine. Even without such special impacts, you see that we are delivering already as of today still strong results from our Polish business. To give you some numbers, I mean, it's correct. We have a higher share of Ukrainians in our tenant base, which is roughly around 30%. This is nothing that was caused by the war. This was also the same percentage before the war. Potentially, it's because a large part of our portfolio is based in Wrocław. That's the southern part of Poland where the Ukrainian border is not too far away. These are, let's say, not the typical refugees in the sense of that they're coming to Poland, live there for some months, and then go back. Now, these are people that are really working here and that have been in Poland already before the war. Poland always had a higher share of Ukrainians. Our customer base, and by the way, it's the same for the sales business, is not the type of refugee that returns on day one if the war is hopefully over at some point in time. Therefore, we are convinced that the Polish residential market still offers very good fundamentals in the future. Who knows if the war in Ukraine ends, perhaps also some people who were still bound to be in the Ukraine and basically have to fight out and leaving the country. This could also be the case. That could lead to an inflow in other European countries like Poland or like Germany as well. Thank you. My last question is on refinancing costs. Can you give us an indication of the recent increase in swap rates and interest rates? What a typically 7 to 10-year mortgage loan would cost in Germany currently for you? Yeah. The 10-year mid-swap rate is around 270 basis points. If we put on top of that a margin for the bank to give a round number of around 130 basis points, that would be for 10-year around 4%. We are honestly going more currently for a 5-year maturity. That brings us more to 3.6%-3.7%. If you look at the unsecured market, as already mentioned, potential or the 5-year bond, which has currently a maturity of 5 years, is trading at 4.1%-4.2%. This would be our current financing cost. Perfect. Thanks a lot. The next question comes from John Vuong, Van Lanschot Kempen. Please go ahead. Hi, good morning, Martin. Thank you for the presentation. You mentioned potential acquisitions in Germany. Given that you also focus on growing in Poland, how should we think about the split of investments between the two countries? Perhaps as a follow-up, how should we think about funding, also taking into consideration that you are also looking to sell non-core assets? Yeah. Good morning, John. Again, to make it clear, the preferred capital allocation is the Polish rental portfolio. And here, we've got a clear plan. We are already executing this plan with units under construction. Further construction starts are following the course of the year. We will handle that with care. We will do this step by step. The target is clear to get to this 10,000 units now in the next, basically, a little bit more than three years. Whereas Germany acquisitions are really more opportunistically, as said, we are not forced to buy. Therefore, if we see something coming up, and we're not talking here about very huge portfolios, but as I said, just to give you an idea of the dimensions, a portfolio of perhaps EUR 30 million-EUR 40 million in locations that we know very well, good construction quality. Yes, we would look at that. That's more an add-on and more something opportunistically. Looking at the financing, I mean, in Germany, perhaps we are also a little bit back to our capital recycling model in previous years. Executing opportunistically, perhaps some of the lower-yielding assets, reinvesting that into new high-yielding properties, putting on top of that a small bank loan. That's not a big financing issuance. For the Polish portfolio, if I talk more generally about financing strategy, here we're using unsecured financing and the corporate bond that we issued last year in August. That really provides now the basis for the investments that we want to do. Okay. That's clear. Just to confirm the acquisitions that you're looking at, that's going to be in line with previous investments. You're going to acquire some vacancy and lower that through modernization. Yeah, yeah. Not a new asset class, not a new market. Really something that would fit very well in the TAG portfolio. Okay. Thank you. The next question comes from Eleanor Frove from Barclays. Please go ahead. Morning, team. Thank you very much for the presentation. One question from me. I'm looking at the title of your press release that says, "Expect further earnings growth following the completion of refinancing phases." Maybe if you could elaborate on that, as obviously your FFO1 guidance for this year is broadly flat and down. Maybe what timeframe is that phase referring to? Any more color on how you see your future earnings progressing with the upcoming refinancings that you have? Thank you. Yeah, good morning. Thanks for the question. It's clearly the very visible midterm earnings growth that we see here. Coming back here now to the investments in our Polish rental portfolio. As you perhaps have seen at the slide, we are predicting year-on-year growth from the Polish rental business alone of around 25% until year-end 2028. That's a little bit more than three years. Additionally, as mentioned, as we are not looking into larger disposals in the German rental business, also the EBITDA from the German rental business will grow. Therefore, the EBITDA growth is very visible. I mean, clearly, one needs to make an assumption of interest rate development in the next two- three years. If you pencil in interest rates as they are today, you should clearly see that earnings also will grow now, really step by step over the next years. That is for us, I think, a good basis which we can operate it. Again, there is embedded growth in the company as we have these growth opportunities in Poland. Thank you. The next question comes from Sheetal Jaimalani from Deutsche Bank. Please go ahead. Your line is open, sir. You may proceed with your question. Hi, can you hear me? Yeah, we can hear you now. Good morning. Hi, it's Thomas. It's Thomas. Just one question on the Polish build-to-sell business. I mean, there was obviously this lower demand recently. And you referred to the high level of 2023. Just wondering, what would you say to what extent it was due to the uncertainties from the subsidy program? And to what extent maybe from a weaker underlying demand? I mean, given still relatively high mortgage rates. And I think, if I got it correctly, you referred to promising sales activity in the first quarter so far. Is that correct? And maybe could you share the run rate? Yeah. Good morning, Thomas. I mean, we will publish our Q1 data now in six weeks. So perhaps it's too early to give a clear indication of the sales in the first quarter. If you look at the sales numbers of the fourth quarter, there was around EUR 500 million. It was already stronger than the quarters before. We should assume that this trend continued. Therefore, that is really now guiding towards more units sold in 2025 compared to 2024. That is exactly what we are guiding for the full year. Looking at the demand in 2024 in the Polish sales business, I would not say that there was low demand. It was clearly lower than 2023, which was, again, a very strong year driven by people coming in from Ukraine that put pressure on the market. Also, at that time, a subsidy program helped mortgage buyers. Perhaps we are now, 2024 and 2025, back on a more normal level, which still means that we are earning with this business some EUR 60 million, perhaps even more. That should be definitely still a strong result. Can we really split this? Can we say, well, a certain reduction in sales volume was due to the uncertainty about a potential new mortgage program? That is not really possible. Clearly, what we see today in our sales business is, as it is clear now, that there is not a new subsidy program for new constructed apartments that is coming. This uncertainty is out of the way. More people are then simply making their decision. This was clearly helpful that some weeks back, the decision was now clear. We are now really back into a normal and still quite strongly working sales business, I would say. Okay. Okay. There is no new subsidy program in the making now? No, and there's a subsidy program in the making, but more purely dedicated to the secondary market or to people with lower income, which is also to some extent helpful because every program in the market creates additional demand, but it's not our product. Perhaps the even better aspect for us was that customers that some months back perhaps still waited to buy an apartment because they're waiting for a potential new program now have clarity and now really are buying the apartments that they already thought about some months ago. Okay. Thank you. The next question comes from Simon Stippig from Warburg Research. Please go ahead. Hi, good morning. Thanks for the opportunity to ask a question, a couple from my side, if I may. First one would be in regard to the services business. I saw here the growth came mainly out of the energy services. Could you comment on a certain driver for the increase? And also, if you expect that the growth rate to continue in 2025? Yeah. Good morning, Simon. It's correct. In the service business, the energy business in Germany was quite strong. That was even a little bit better than what we had expected. We are expecting nearly the same result for this year, perhaps a little bit weaker. Weaker means perhaps EUR 1 million-EUR 2 million less. This business is simply working quite well. We have expanded this business. More units are now connected to our energy business. Energy business means we are more or less selling heating to our tenants. We are also doing some metering services. The business has expanded quite well over the last years. If you look in the total P&L in the group and you see a strong increase year- on- year, what is also included in the service business, but is part of the sales segment, is the services that we do for our joint ventures in Poland. We know that we have some joint ventures in Poland where we have a 50% partner. Here, we are responsible for the construction business, for the sales business. We get quite decent fees for that. If you look at the total P&L, that is also a reason for an increased service result. Thanks. Your penetration in the energy business for the German portfolio, can you comment on that? How many units you are already penetrating? I think it is in the meanwhile around 60,000 units. That increased now over the years. Okay. Thanks. Second question would be in regard to your German disposals. You had quite a few disposals out of your German portfolio in the last year. Could you comment on how many of those have been closed until year-end 2024? Yeah. Most of them have closed. There was just one portfolio, a little bit more than 200 units that now were closed at the end of the first quarter. And that's an impact I can give you the net cash impact that's around EUR 25 million. With the help of that closing after the balance sheet date, we will have a slightly positive impact on the LTV additionally. Okay. Great. Thanks. Could you also comment on the impact of the closed portfolio on your net cold rent in 2024? Because there are always some phasing effects. Great to get that number. Sorry, Simon. Can you repeat this once again? Yeah. The impact of your closed portfolio until year-end 2024 on net cold rent, because usually there are phasing effects over the year. It just would be great to get that number. On this specific portfolio, if you mean this, that's not a huge impact. We gave it at Q3. Sorry. Sorry. The total 1,200 units you closed in the last year. Yeah. Okay. That was. Yeah. That's what I just wanted to refer to. That's around EUR 4 million. Yeah. That's around EUR 4 million rent that we sold here. If you look at the Q3 presentation, I think we gave there a bridge between FFO 2024 and 2025. There you will find this EUR 4 million impact from sold units. Perfect. Thank you. One more in regard to what you mentioned in the presentation overview on page four, item two, Poland. You mentioned during the presentation you had a strong cash position in Poland. You earned better interest from that. You also said you sold part of your land bank. Later in your presentation on the financing structure on page 10, you mentioned that you bought some land bank in Poland. Here, I would be keen to know what you meant by the selling and buying of land bank as well as in connection to the high cash position in Poland. Yeah. Sorry if this was perhaps a little bit confusing. To be more precise here, the cash position was very strong in Poland, especially in the first half of the year. We had more cash in the balance sheet than originally planned. That created interest income, which was above the plan. Therefore, this was mainly the reason why also for the full year, we had better interest income than expected. First year, strong cash position. Then we started again also to look at opportunities for buying land bank in Poland. Therefore, we invested. At year-end, I would say the cash position in Poland is back on a normal base. We increased, as mentioned, our land bank in Poland quite strongly. We are typically buying here with a larger plot of land, so a land plot for, let's say, potentially 1,000 units. What we do then from time to time is after such an acquisition of a larger land bank, perhaps we sell a smaller part of this land to another investor or other developer. Yeah. By doing this and offering a smaller land plot where perhaps the competition around such smaller land plots is higher, from time to time, we realize here a nice profit. The team is here really doing a great job. Therefore, I mean, we're not trading with the land bank, but opportunistically, we use demand for smaller land banks to sell at least part of the land bank to realize some extra profits. Okay. That would be mainly the same land bank or a larger land bank, not different locations you're selling and buying? No. This is then really from a larger land bank selling a smaller proportion to realize opportunistically a profit. Okay. Thank you. Maybe one last one. I saw in your portfolio overview that in Salzgitter, you had a very strong vacancy reduction last year by some 70 basis points. I was wondering if that's explained by certain modernization projects you conducted maybe the year earlier, or if there are other factors that explain that. Also here, what structural vacancy would you see in the portfolio region of Salzgitter? Maybe also the same would apply, the same question would apply for your Berlin portfolio region because here you also decreased vacancy quite strongly. Yeah. In both regions, we had quite, for our sizes, significant investments in the past two years. Especially in the Berlin region and here in Brandenburg an de Havel, where we own around 3,000 units, we did, for our sizes, quite significant investments. We have seen the success now in the course of 2024. Similar in Salzgitter, also vacancy is a kind of volatility. If you complete such a modernization program and then you rent it out, perhaps not from day one, but over the next weeks and months, you simply see that vacancy rates are going down without any super huge modernizations. Yeah, clearly, that helped a lot. If you ask us for the structure vacancy rate, look at the overall portfolio. 3.6% is already a great achievement, but there is definitely room for improvement. We published our guidance in November. We have been even better in the vacancy development than expected. Still, if you look at the guidance, I think that assumed a further 20-30 basis points vacancy reduction in the course of 2025. That is absolutely still something that should be achievable. The demand for the product for affordable housing also in our regions is simply there. Okay. There were no other factors at play, for example, in Salzgitter. It was really mainly some modernization. No. If you have in mind something like 200 units rented out to a special group of people, whatever, that's not the case. Okay. Great. Thank you very much. The next question comes from Kai Klose, Berenberg. Please go ahead. Yes, sir. Good morning. I've got just two quick questions. The first one is, how have rent receivables been developing in 2024 in the German portfolio? The second question, in the German rental portfolio. The second question, just want to check, you mentioned that you have spent around EUR 100 million for land purchase in Poland in Q4. Is this correct? The second question on that, on how much of the land you already have, there's already zoning or the permitting in place? Yeah. Good morning, Kai. Perhaps I start with the second question. Yeah, the 100 million is correct. That was the investment volume in the fourth quarter in land bank. Again, that led to the LTV increase by roughly 1 percentage point. On the other side, we have now a land bank that really helps us to create value in the future. Most of that has or the larger part of that has no residential zoning, but that is a typical case. That is nothing special, nothing new in our business, and also nothing that is in Poland a concern. That is simply the business model that we and the companies that we acquired are following for many years. That is where we create value by doing the rezoning from, for example, commercial to residential zoning. That was the question regarding land bank. The first question, rent receivables have not really increased in the course of 2024. Also, if I look at the impairments on rent receivables that we have, we're still at around, I would say, slightly above 1%. That is also unchanged compared to 2023. Perhaps even more important, that's unchanged compared to the previous year. That means when we look at increased heating costs that our tenants clearly had to pay in the last two, three years, that had not an impact on their ability to pay their total rent. Thank you very much. A very quick one on the land report in Poland. Probably a bit too early to give a split about developed to hold and developed to sell. Based on your current planning, is it already some thoughts in mind, or is it way too early? Yeah. Clearly, every time when we buy a land bank, we have a plan. I think what are we designated to build-to-hold projects and what are we using for the build-to-sell projects, the larger part of the land bank will be used for the sales business. If you look at our growth ambitions to get to the 10,000 units, a little bit more than 3,000 units are already finished. That means out of the total land bank, 7,000 units, perhaps a little bit more, are as of now earmarked for the rental business. The remaining up to 20,000 units are earmarked for the sales business. That makes it clear for us. We have really now a big land bank, which is clearly an asset in this market that we can use now in the next years to sell. Large investments are not necessary. We have also used this situation where we had simply the financial power to buy something to invest into the future. Got it. Many thanks. The next question comes from Manuel Martin of BHF Bank. Please go ahead. Hello. Thank you. Just two questions from my side. Martin, as you said, that the interest rate evolvement is one of the major topics to be followed. Have you heard anything from appraisers or from the recent MIPIM in France or any impression how people are feeling about the potential development of interest rates? Maybe you have a kind of feeling or got a feeling from these people? Yeah. Good morning, Manuel. I do not see that there is currently a concern in the market that we will now again enter a phase where values are coming down. I mean, still, the development, honestly, is quite young, right? It is just three or four weeks back since interest rates now increased. Again, if they are on the level where they are, that is for us still absolutely okay. Our business in Poland, as well as in Germany, is based on high-yielding assets. Therefore, we are still earning money even on today's interest level. I mean, of course, we listen to the market. If you ask us, do you already see people that now have a different opinion on potential acquisitions or disposals in Germany? No, that is not the case. I am not worried that we are entering now in another difficult phase. Operationally, the market is super strong in Germany, as well as in Poland. I think it is just important to observe the situation, right? For us, the good situation is that we can observe this situation from a strong liquidity position. That should be a good basis. Okay. Understood. Second and last question, short one on the convertible due in 2026. Any thoughts on this? Are you going to pay that back or launch something new? I mean, you already launched recently a convertible bond we saw. Yeah. We will pay that convertible bond next year back. EUR 470 million from the cash position that we have. If you want, out of the nearly EUR 1 billion, EUR 470 million, half of that is more or less blocked for the convertible bond repayment. We did not make a repurchase offer already with the issues of the new convertible bonds because the yield on the outstanding convertible bond was already quite tight. For us, economically, that makes more sense simply to put it into a cash account and earn some interest income. Also, from a tax perspective, this was the better way for us not to repurchase the outstanding bond, but simply to repay it when it is due. Okay. Right. I think that's it from my side. Thank you. Thank you. The next question comes from Stephanie Dossmann from Jefferies. Please go ahead. Hello, Martin. Just a question on the dividend. Do you contemplate an increase in the dividend payout going forward? Do you have any target? And maybe on the scrip div, so the rationale behind offering a scrip dividend maybe, is it due to cash retain requirement from rating agencies, for instance? Or how can we see that, please? Yeah. Yeah. Thank you for the question, Stephanie. First of all, commenting on the dividend for financial year 2025, we're again guiding for a 40% payout ratio of FFO1. That would translate roughly in the same dividend as a guidance that we pay out now for this year. It's too early to give already an outlook for the dividend thereafter, but we've discussed some minutes back earnings growth that is very visible from the growth of the Polish rental portfolio and so on. In line with that, it would be very natural that also the dividend grows again. At some point in time, and again, it's not too far away, I mean, we can also rethink about the payout ratio. Once we are more and more completing our investments in Poland, there will not only be higher earnings, but there could be also or there will be room for a higher payout ratio. It is too early to give already a concrete guidance as of today, but that should be very clear that shareholders can expect a growing dividend in the future. Commenting on the SCRIP dividend, no, it was not a request from rating agencies. I mean, I think they are happy to see this. Simply, we had in the past weeks and months discussions with our shareholders. After we announced the dividends, the first dividend payment after three years of suspension in November last year, we took the opportunity in meetings to discuss with shareholders this idea, and we saw broad acceptance for that. For us as a company, clearly, it's not a material amount, but over the time, over the next three, four years, putting in a smaller portion of equity into our growth in Poland is something that is not only digestible, but also makes sense from an activity perspective. That was the reason why we're now offering the scrip dividend, and we will do this in a very standardized way. You shouldn't expect a wide discount. This should be absolutely market standard. I think market standard is a 2%-4% discount. We're not forcing shareholders into shares if they want to take or prefer a cash dividend. That should be very, very standardized. Thank you. Do you mean that we should expect scrip dividend going forward each year? I mean, that's where we decide on this year- on- year. As of now, this is the plan, but we will clearly decide on this then formally again one year from now. Okay. Thank you. As a reminder, to ask a question, please press star followed by one. The next and last question comes from Andre Remke from Baader Bank. Please go ahead. Yeah. Good morning, Martin. Thanks for the presentation on all the answers. Coming back to Thomas' question on the potential, hopefully, end of the war in Ukraine, the implication on your business, do you see particularly any implication on the development business in terms of, let's say, higher construction costs or lack of blue-collar workers as they have to rebuild Ukraine? Do you see any risk for gross margins or a more delayed construction process on your side of that? The first question, please. Yeah. Good morning, Andre. I mean, of course, always difficult to give answers on questions what happens if. When we discuss this with the team, we realize that that's not a big concern. I mean, we can speculate a lot on how intensive the rebuilding of Ukraine will be, how the Ukraine will look like after a peace that is hopefully coming soon. Poland and Ukraine have been quite, let's say, close for many, many years. Ukrainians in Poland have always been part of the society. I think more than one million Ukrainians apply for a so-called PESEL number, which is a kind of social security number. That means they're settling down, they're working in Poland, they have jobs in a country that economically is doing well. This will not be a game changer, definitely not. Let's see how the situation then plays out in Ukraine. It is nothing where we think business-wise this will affect us materially. Again, the Polish residential market has really strong fundamentals, and especially our business. Our business, again, is new constructed apartments in large cities in Poland that over all the last years and in the future have seen and will see good development. This is perhaps for us the most important thing, that the underlying data for Poland is still very, very much convincing. Okay. Thank you. The last question, do you expect to reach the 45% LTV target already this year, assuming a stable portfolio valuation? Yeah. We could be very close to that. You're right. I mean, the base case should be zero valuation impact. The dividend payout with 40% of FFO1 is quite moderate. The business is producing quite a significant amount of cash. Therefore, we should be definitely closer to the LTV target at year-end 2025. Excellent. Thank you very much. That's from my side. We have a follow-up question from Simon Stippig, Warburg Research. Please go ahead. Hi. Thank you very much. One follow-up from my side, if I may. You just mentioned once the investments in Poland are completed. Is it fair to assume that your investments are completed in the year or during the year 2028? Yeah. In 2028, we have reached our midterm target of 10,000 units. Let's decide in two or three years what is the plan from there on. I mean, this is then really, at this point in time, a meaningful rental portfolio that produces significant cash flows. We have definitely also more freedom regarding higher dividends. Please do not take this as an exact guidance that exactly in this year, the dividend will increase. I just wanted to describe the trend, right? We are seeing higher EBITDA contribution from the Polish rental portfolio. Clearly, this will lead then also into FFO1 growth. This will then naturally lead into higher dividend. The way is clear, but still to say exactly this is the point in time when we then switch to a higher payout ratio. Sure. All understood. Thank you. Ladies and gentlemen, this concludes our Q&A session. I would now like to turn the conference back over to Martin Thiel, CFO, for any closing remarks. Yeah. Many thanks all for dialing in, for listening to the conference. Just one reminder, we already sent out a save the date for our Capital Markets Day on the 12th of June, which is taking place in Gdańsk, in Poland. We will send out the Visa program in due course. Hopefully, see a lot of you attending the Capital Markets Day. That will be a pleasure for us. Many thanks again. See you soon and have a nice day. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in a conference. You may now disconnect your lines. Goodbye.