Welcome to the Inmobiliaria Colonial Q3 2021 conference call. Colonial Q3 2021 conference call. The management will run you through the presentation, which will be followed by a Q&A session. You can request to ask a question at any point during the presentation by dialing zero one on your telephone keypad. I'm now pleased to introduce Mr. Pedro Viñolas, CEO of Inmobiliaria Colonial. Thank you. Good afternoon. Good evening to everyone. As usual, with me, I have Carmina Ganyet, Corporate Management Director, and Carlos Cromer, Chief Corporate Development Officer, who are going to help me in running you through the presentation of our results for the Q3 of 2021. I am on page six of the presentation. I will start with headlines. The headlines should start by mentioning that, by the end of this Q3, the group net profit is EUR 188.84 million. Since, at this time last year, 2020, the result was almost non-existent. That means that there's a huge difference between 2020 and 2021. We are increasing our profit in EUR 179 million. Which are the drivers of this evolution upwards of the profit? Of course, there's one that we are not mentioning in these headlines. I am referring to the value accretion, the higher value of our properties that happened already by the end of the first half of this year. This will be driver number one. Driver number two is about our flow of funds, about our rent, net rental income, and how does this translate into our EBITDA. Our net rental income at the end of the Q3 is EUR 219 million. For us, it's very important to highlight that this means a 2.5% like-for-like. I think that this is particularly important because at this time, to understand exactly what is happening to the fundamentals of our business is important. As you know, we've been betting in previous months and years in two directions. Direction number one is flight to quality, emphasizing our strategy of investing into prime. Second, as you know, we've been investing more heavily in France than in Spain, particularly with our recent transaction regarding SFL. I think that both strategies are delivering very good yields, and as a result, this 2.5% like-for-like growth, it's at the top, you know, of the comparables of our peers across Europe. In relative terms, we believe that we are at the higher end. In terms of EPS, we are close to EUR 0.18. As you know, this is a little bit expected because we went through a relevant disposal and renovation program, which will yield the results, you know, in the near future but a s of today, that means lower EPS than a year ago because the assets under management are of a smaller size. To that extent, or in order to put this in a proper context, the comparable recurring EPS, if we take into consideration, you know, this fact, would be almost EUR 0.24, which is 9% upwards compared to previous year. Solid financial results. What is the main reason for this performance? As I said, first of all, we believe this strategy of flight to quality, prime positioning and second, Paris exposure. Anyway, I think that a third driver that we have to highlight a lot is the significant increase in letting volume. As we will see now, the letting volume is accelerating both in Spain and in France, and we are showing, as of today, a figure of activity which is 71% higher than a year ago. Occupancy remains between 93% and 94%, so very healthy levels. Rental growth. I already mentioned the like-for-like figure. If instead of using the like-for-like figure, we should talk about rental growth comparing what are we signing with December 2020 ERVs, then we're talking about a 4% growth for the Colonial group, particularly 7% in Paris. If we talk about gross spread, that would be a 7%, particularly 10.4% in Barcelona. Good numbers in terms of, as you know, recently we've been highlighting always not only our performance in terms of quantitative or financial terms, but also in qualitative terms or more specifically about ESG. We are having additional progress on this front. Very recently, just a few days ago, it was released our GRESB rating, which right now stands at 94, which according to GRESB sources is number 1 in listed office for Western Europe. There's been also a new rating for Sustainalytics, by Sustainalytics, again, at the high end. We remain in the top 4% in real estate. Finally, in terms of balance sheet, well, maybe this is not hot news, but just because it's part of this quarter that we are today presenting in terms of results, just a note to remember the successful execution of our tender offer, which led us to an increased exposure in excess of EUR 1 billion in Paris. Also, it was a way to buy prime properties in Paris in excess of that figure. Talking about the capital structure, we've been delivering EUR 1 billion of liability management, which has helped improve our debt profile and our cost of financing. In particular, there's been new debt issuance of EUR 500 million at SFL at a historical low coupon of 0.5%. Our balance sheet remains at healthy levels of LTV, and more importantly, without any negative news on the rating front. On page number seven, I go a little bit more into detail. You can see, as I said, the good performance of our gross rental income and specifically even more about net rental income, which shows this 2.5% like-for-like. Our figures that I already mentioned about EPS. As you can see in this page, the performance is particularly outstanding in Paris, where the like-for-like figures show an increase year-on-year of 5.1%, which is above what's going on in Madrid and Barcelona. The same happens if instead of talking about Net Rental Income, we talk about Gross Rental Income. In general, what do we see is that Spain is lagging a little bit France in terms of performance. Paris already having, for our market, I have to say, which is a prime, a very good behavior. Spain is going a little bit behind that trend. This is what you can see consistently in the figures that we are presenting today. Well, that would be the introduction. As usual, we'll go through the different sections of our presentation. I will now ask Carlos Cromer to step in to talk a little bit about market situation. Thank you. Thank you very much, Pedro. On page number 10, here what you can see is the situation of the rental market. As we pointed out in previous presentations, what is important is that the grade A availability in the market is extremely low. This is important because we are seeing a clear trend of polarization in take-up. When we look at the stock, you see that out of the 7 million sq m CBD stock in Paris, just 400,000 sq m are Grade A. Also in Barcelona and Madrid, the Grade A part of the stock is quite limited. When we then go to the availability, which is the vacancy, that is in the market for this type of product, then you can see that in Paris, Grade A product is nonexistent. The availability, the vacancy as of September is 0.5%. In Barcelona and Madrid, it's also quite low. The availability of Grade A product in the CBD of Barcelona is 2%, and in the CBD of Madrid is 3.5%. When we look then at the take-up, on the right-hand side, you see take-up figures for the total market, because take-up is really going everywhere except for the Paris market, where we have focused on the CBD because it's such a huge market. In Paris, we see a significant increase year-on-year of the take-up, 80%. We are now at 275,000 sq m for the nine months year to date. This is, as I said, 80% year-on-year increase. Equally important, Paris is already at pre-COVID levels in activity, as Pedro already mentioned, and also we can see it in the macro picture of the country. Spain is a little bit lagging, and I would say a little bit slower than we expected pre-summer. However, Barcelona has seen a very significant increase in take-up, 80% for 195,000 sq m versus 100,000, but still below the pre-COVID year. Madrid has also seen an increase, not so high as in Barcelona, but still quite far away from pre-COVID levels. When we turn the page to page number 11, what is happening in the investment markets? Extremely strong momentum in Barcelona. Year to date, there have been signed transactions for EUR 1.4 billion. This is the highest volume for the first nine months in the last 14 years, and it's 24% above the year 2019, above the pre-COVID year. Extremely strong activity. Sixty percent of the transactions are concentrated on the 22@. In Madrid, there have been not that much transactions, but basically this is an issue of lack of available product in the market, because there's huge investor interest. When we look at the breakdown of the people that are looking at Spain, it's basically international money that's interested to invest in Spain. In Paris, we had EUR 8 billion of activity of investment volume. This is a bit lower than the previous year. When we look at the number of transactions, it's almost at the same level as the previous year. If we now make a quick overview of the operating performance of our group, then let's step to page 13, and to start here with the letting activity. Here on the left-hand side of the page, you see in the bubbles the letting volume of every single quarter year to date. The interesting fact here is, in the first two quarters, we had each quarter 30,000 sq m, and now in the Q3 we have had 60,000 sq m. We have doubled the activity of a quarter of the previous quarters in the Q3. Moreover, it is a quarter that includes the month of August that is quite quiet in terms of activity. When we go by portfolio segment, Paris has doubled on a year-on-year basis, now the cumulative volume. Madrid also, and Barcelona is 22% higher. All of this are signing at good prices at the 7% above ERV and 4% blended re-lease spread. Why is this happening? What is the reason behind? This is what we see on page 14. First of all, maybe another interesting data point. What we have signed here today is 117,000 sq m. Also is higher than the full year number of the previous year. The full year we signed 97,000 sq m. What is the reason for this strong take-up in our portfolio? For this, we can look at the characteristics of the assets where the contracts have been signed. The assets have high energy certificates, high energy levels, eco-efficiency levels. The assets are in the CBD of Paris at the end, and the assets have a carbon footprint of 6 kilograms per sq m. This extremely low figure. Here you can see clearly a trend of polarization towards Grade A. If we look at the commercial offer in economic terms, adding the prices signed for every contract, we have even doubled the previous year volume. On page 15, you can see also the polarization in terms of location. Here you see with the Colonial sign where the contracts have been signed. It's quite clear, Paris close to Étoile, it's close to Musée du Louvre. In Madrid, it's close to Castellana, and Barcelona in the Diagonal, both in the traditional park and also the 22@ park. You see clearly that, being in this location, offering product in this location clearly attracts demand. On page 16, we see the zoom on the rental price performance. As I mentioned already, 4% growth versus ERV of the beginning of the year. Outstanding Paris with 7% and the re-leasing spread at 7%. Outstanding Barcelona with 24%. Let's step now to page 26, where you can see the occupancy profile of our company. As Pedro mentioned, we are today at an occupancy of 93%. If we compare this with the previous quarter, this is basically due to the entry into operation of some space of the Washington Plaza asset and the delivery of the federal renovation program. Really the like-for-like portfolio has remained stable. Excluding the renovation programs that we have now in operation, the rest of the portfolio is at the level of 97%. When we go market by market, again, Paris at the moment, the most stable market, it is at 95%, excluding the two assets that have renovation surface in operation it is at 98%. Madrid is at 92%, but a big part of the occupancy is concentrated in Sirio en Ortega y Gasset. Excluding these two assets, the rest of the portfolio is at 97%, and Barcelona is at 92%. On the next page, looking at it from the other way around in terms of vacancy, our vacancy is 6.6% as of September. When we do a breakdown of this, we have 1.4% of the 6.6 is residual secondary exposure. Assets in secondary locations that are more difficult. 3.3% is delivery of renovation program assets that are extremely good located and we are quite confident. The in a way comparable like-for-like CBD portfolio has a vacancy below 2%. Okay, next section is about financials. We see how the operational performance impacts our accounts, particularly our P&L. The first financial indicator is the Gross Rental Income. The Gross Rental Income shows 2% growth like-for-like, especially driven by rental prices in any single market where we are. Madrid outstanding with a growth of 3%. Barcelona, due to the fact that we have this temporary vacancy, to the fact that we have delivered some renovation program, is upsetting the price effect, the positive price effect, in this submarket. Two positive rental growth, 2%. The fact that we know and we have released in the other Q3 results, we have a negative impact of disposals. We have an impact about the anticipating the renovation program. The rental growth shows a figure of 234. Two percent like for like, and impacting this strategy of flight to quality through disposals and through anticipating the renovation program. Instead of looking at the gross rental income, we look at the net rental income. The first nine months shows an outstanding growth of 2.5% like for like growth above our peers, with a particular figure of 5% net rental income in Paris. A strong performance in Paris and Madrid and Barcelona are lagging, as we explained before, a little bit more the performance of Paris. If we look at the recurring earnings on the next page, you see here how it has been impacted, basically the disposal and the renovation program. I would like to emphasize particularly what should have been our comparable recurring EPS in comparison to the previous year. So 9% growth above our comparable recurring, with a very positive impact on the EPRA like-for-like, with a very significant impact also on the financials, thanks to the liability management and the, as we explain later on. Another positive impact, thanks to the transaction, the deal we did with SFL, increasing our stake in SFL. In comparable terms, our EPS would have been growing 9% but a gain, the strategy of unloading secondary assets flight to quality and accelerating the renovation program. The recurring net profit shows a figure of EUR 92 million, which means 0.18 per share. Considering also that we have, as you know, consequently of the transaction of SFL, we have more shares in the market. It means that even having more shares outstanding, our net profit in terms of earnings per share shows a figure of 0.19 per share. If we look at the full picture of our P&L, I am on page 23. You see here the group net profit of EUR 184 million. Very capital value growth updating the valuation in June 2021. Of course, we are confident at the end of the year when we would update our valuation that we show a very strong figure thanks to the strength of our submarket and the good performance of our Grade A assets in comparable terms to the rest of the products in the market. The recurring earnings in comparable, as I explained, EUR 123 million. But the strategy again of flight to quality shows the figures of EUR 92 million with figures being more resilient and more predictable, I would say numbers, for the future. In terms of euros per share, considering that we have an average number of shares higher than the previous year, the EPS for this Q3 results shows a figure of 17.91, close to 0.18 per share. If we go to the liability side, in the next page, you know that we have been very active, improving our capital structure, our debt profile with different transactions. We went through different buybacks programs on our existing bonds. We have been buying more than EUR 1 billion debt with a historical average cost of debt of 2%. Reprofiling some maturities in 2023 and 2024 and in France in 2021 and 2022. We have also been issuing more than EUR 1 billion bonds in new bond issuance with a longer maturity, with a very, I would say, interesting and attractive fixed coupon below 1%, 0.75% for eight-year bonds and 0.5% for seven year bonds. Today the debt profile shows the figure you have in this page. So 85% of the debt is maturity after 2025, which provides a very stable capital structure debt with an average maturity of more than 5% and with a spot interest rate of 1.4%, thanks to this liability management. Consequently, the capital structure has been improved. It shows, in page 25, very solid levels of loan-to-value, 36.6%. Shows a very interesting and attractive levels of cost of debt, 1.4%. We maintain a very significant levels of liquidity of more than EUR 2 billion. Of course, we maintain our strong, I would say, outlook from our rating agencies on our rating. Thank you, Carmina. It's Pedro speaking. I would like now to say a few words about our ESG performance. ESG is very important for us. I imagine it's very important for everybody else these days. In our case, as you know, we've been working hard in this matter for a long time. I know we started investing a lot in a strategy of having the best certification for our assets. Now, it's well known that we have the vast majority of our assets with very good ESG ratings, well above any comparable. Our next strategy was to improve our standards, our ratings in terms of corporate ESG performance. Here we have been having continuous increased improvement in our ESG performance. In this particular matter, I would like to say that in terms of GRESB rating, recently it has been published our rating for 2021 w e stand now at 94 points. That means a huge increase comparable to our rating in previous years. As you can see in this page 27, just three years ago, we were 60, 61. Since then, we've been improving and t his recent level of 94 means a huge increase of 56% on our starting level. Even more importantly, according to GRESB sources, that means that Colonial stands out as number one company in Western Europe. In other words, where the GRESB average is 73, or our peer average is 79, we stand at 94. I would say very satisfactory levels of GRESB ratings. If instead of talking about property, we talk about development, that you can see on page 28, our level is 97. Again, as you can see on this page, it can hardly be better. Finally, if we talk about Sustainalytics, our recent rating of 10.1 allows us to remain in the top 4% in the real estate arena in terms of Sustainalytics ratings. Again, very satisfactory. We have a very wide scope of strategies in order to improve in this level. Today that we are presenting results, I'm only maybe highlighting these results t hat show the improvement in our metrics. For us it's very important to share not only financial returns, but also non-financial returns, having this excellent performance. Finally, our section about going forward. What is our outlook for Colonial. First on page 32, just starting with the obvious reminder, we have more than EUR 1.2 billion invested in our project pipeline. I would like to say that first of all, regarding these projects, there has been a little bit of delay because of the COVID experience, plus recent events regarding the delivery of supplies. You can see here, there's a new set of dates that are not disruptive changes, I would say. There is, as I say, a certain change compared to previous outlooks. Having said that, I would like to highlight that there are no changes as of today in our expected cost for these investments. As you know, or as we have been sharing in previous presentations, out of this EUR 1.2 billion of expected cost, the pending CapEx is a minor part. We're talking about EUR 300 million, roughly speaking. Moreover, I would like to highlight that the majority, an ample majority of this is already committed with construction companies. So we do not expect a lot of room for deviations in these construction costs for the pending CapEx. On the other side, the yield on cost when we look at current market conditions will remain at the same level. As a consequence, we still remain confident in achieving a static potential of additional almost EUR 80 million of additional rents. Out of which, as of today, we have 28 already secured and 51 have still to be worked out b ut I would say that maybe when I look at this list today, for example, Milan Shell 23, that would be the next one, no, in our pipeline. It's showing a very good progress, and we have very good expectations about the reletting of this. Looking at the rest, there are other where, for example, Plaza Europa, which is more for the future, but we also have, we're also having significant progress on this. A reasonable, I say, possible positive outlook about our pipeline. Besides our pipeline, we have our renovation program. We have a number of assets that are going under renovation in excess of 100,000 square meters of GLA. In other words, around EUR 1 billion of GAV. This is working nicely. In the case of Paris in particular, at the time where this renovation program is not finished, we already have significant lettings in Cézanne Saint-Honoré, in Washington Plaza and in Grenelle, and also in Neuilly. We remain very confident about what could be expected in terms of rents coming from this renovation program. The figure here is about EUR 44 million-EUR 46 million that should be added in the near future to our cash flows, out of which 22 are secured year to date and another 22-24 are remaining. This is the second driver of value for the company in the near future. The third one is, let's say, more open to discussion. It's about rental growth. In page 34, you can see the lease spread capture year to date for different markets, and you can see the potential reversion in rents at June 31st in terms of market rent versus current passing rents, which show significant improvements across all markets. You have seen what is the trend, what are the returns that we are delivering so far a t the end of the third quarter this year. We remain, let's say, comfortable about the delivery of significant additional cash flows in our portfolio. We also are very positive about the fact that the SFL transaction, page 235, has been successfully completed. Therefore, we have obtained a number of advantages of this transaction, an additional exposure of around EUR 1 billion of investment in Paris prime assets, which are the assets that everybody wants to buy, but nobody is able to buy, at least at valuation levels at the expected levels. In our case, that was what we achieved through this transaction so w e believe that we can benefit from this transaction for the foreseeable future in very good terms. This also highlights a little bit our view in terms of capital allocation. In page 36, you can see that after the disposals of the period of 2019 to 2020, we have been flagging 2021 as a point where we saw ourself more on the investment mood than on the divestment mood. This transaction, SFL transaction is the main one, but I think it reflects a little bit our view of the growth potential that the company has, no. In page 37, a summary of all of this. Today, we are a company that has a level of EUR 330 million. If you add on this what is the secured project pipeline and what is seen from renovation programs and the rest of the project pipeline, plus the small, let's say, additional estimate on what may come from reversionary price and volume, this leaves us with a capacity of adding in excess of EUR 150 million to our cash flows. That would be, let's say, our view, house view about what can happen to our rents in the future. If we talk about our yields, page 38 gives our traditional view, which is mainly to update you about where our valuation yields are today and how does this compare with a prime CBD market or with the bond. As you can see on this page, the spreads remain at high standards compared to our history, you know, as a company. We believe that the drivers for outperforming in terms of the KPIs of this company remain very, very strong. On page 40, therefore, a summary of what we've seen today. First of all, we've seen, of course, you know, results which are going upwards very significantly compared to a year ago, where last year we did not show a relevant profit, today it's EUR 184. What we highlighted is that, I think that behind these numbers, we are experiencing the benefits of two strategies where the company is focusing on. One is of a strategy of polarization, which means betting or investing even more heavily in our prime product, which I think it's quite evident in the market that is delivering stronger returns than weaker kind of assets. The second strategy has been tactically to take advantage of France, you know, taking off sooner Paris Prime CBD than Spain. This in the end is allowing us to offer a 2.5% like-for-like, which as I said outperform any colleague or competitor that we may have in Europe, this is a very top end. Behind this, the relevant driver is the increase in letting volume. Let me tell you that this letting volume is quite recent, so it's basically something that is telling you the mood of the market. Of course, the impact of this volume in our rents 2021 is very difficult to see because the contracts that are being signed are quite recent. This is more future potential than of course current impact in our P&L for this year. This letting volume, what it's telling you is, in Paris, if you look at the numbers, it's going back very quickly to pre-COVID levels for prime CBD. In the case of Spain, as I said, there is certain lag. What we can see today is an inflection point, meaning that Madrid and Barcelona are showing stronger performance than before, but still the potential has to be developed during the next months. That would be referring to rents and cash flows. If we had to refer to the investment market, I think that it's pretty obvious, no, that market remains very strong. All transactions that are taking place in the market, not Colonial, I'm talking in general, are taking place at premiums compared to valuation done by experts. Therefore, that of course sets the question of what about the gap between valuation or NAVs and stock prices. In the past, I remember 10 years ago when there was this gap, the usual fact or interpretation was to say, well, the experts in, let's say, the direct market are mainly, let's say, lagging what is really happening in the market, number one and n umber 2 what the transactions that we see are basically forced sales transactions when the market is basically illiquid. Well, today this is not the case. As we all know today, the direct market is showing huge volume by willing buyers and willing sellers. The yields are what they are. There's a lot of people wanting to invest in direct markets. At the same time, well, we do not see this in the capital markets at the same level. Well, we're here to basically comment about fundamentals. What we can say is that we see rent level strong and with good outlooks. We see also investment market having a good performance. Therefore, we are positive about our fundamentals. That's basically it. For the future, I will not repeat what I just said, but we are sitting on a lot of potential to be unlocked in the future months and years. What was expected for this year, for example, Marceau, has been delivered very successfully. The capacity of Colonial to deliver additional cash flows remains very supportive for the outlook of the company. In terms of guidance, my final point, we provided, let's say a r ange of potential outlooks for this year. As year-end is approaching, we believe that we are going to be around EUR 0.23, maybe above this, slightly above this number, but that would be what can be said as of today. As a consequence, I think that our strategy of growth in the dividend per share will remain, you know and w e believe that the usual path would be, you know, to grow our dividend per share number. Talking about 2022, well, maybe it's quite early because we haven't even finished 2021. Today we would say that we are putting here a range of EUR 0.27-EUR 0.29. I think that the fact of certain delays due to COVID that are delaying certain delivery of some of our projects, we believe that we should be closer as of today, you know, to the figure of 27 than the figure of 29 but w e have a whole year to work on this. We'll see, because I think that our outlook for the next months is that the market will remain in this trend of improvement. Okay. That's the summary of what we wanted to share today. As usual, we are now available for any question that you may have for us. Thank you. Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press zero one on your telephone keypad. Please be informed that there can be a short silence while questions are being registered. Thank you. The first question comes from Celine Huynh from Barclays. Please go ahead. Hi. Good evening. I just have one question for Carmina, please. Can you give us more color on what you meant earlier by a strong valuation result with the full year reflective of our prime portfolio? Are you expecting more yield compression, for example? Thank you. Yeah. Well, I mentioned, I think, it has been explained also by Pere in the last section. Basically in the appraisals, we have two drivers. One driver is about rent, and we are signing the new contracts above the ERV included in the appraisal evaluation December 2020. The other driver, of course, it's yields. You've seen, I mean, in the appendix, you have several examples about the capital values of the transactions we have seen in the direct market. As Pere mentioned, we have disclosed also in the presentation our last reported valuation yields and the spread between these levels and the bond market but b asically, I invite you to see in the appendix the capital values per sq m of the transactions and the capital values, the average capital values we have in our appraisals. All right. You still mean that the main driver will be rent, right b ecause you're charging higher rent, which means that valuation should be higher rather than yield compression. Well, I think it's a matter of these two effects. When you look at the direct markets and the yields that are transactions these deals, and when you look at our valuation yields, this is a significant, I would say, prudence in our valuation. Always the appraisers would take the market reference when they update the appraisal. Thank you, Carmina. Thanks. The next question comes from Fernando Abril-Martorell from Alantra. Please go ahead. Hello. Hello. Thank you very much for the presentation. I have a couple of questions, please. First, it's with regards to occupancy. Well, I have a couple of questions here. First, it's a bit difficult to try and see what is the like-for-like occupancy changes because you are releasing, you know, projects from the pipeline and from the renovation program so I don't know if you can give the number of the like-for-like, let's say, occupancy year to date. I don't know how is it evolving from your existing assets, no, from the ones that you had at the beginning of the year. Another one is, you know, there are still some assets to be delivered at the very end of this year, some in the pipeline, I don't know, Black, I think, and Miguel Ángel, some in the renovation program as well. I don't know, in view of the current circumstances that you are seeing a pickup in the letting activity and all that stuff, I don't know if you can provide any sort of guidance of the occupancy by year-end. A second question is just to clarify what you've mentioned, Pere, with regards guidance. This that you are looking more to the lower end of the guidance range for 2022 is just the. it mainly explained by a delay in the delivery of the assets because of, I don't know, construction and then COVID test, COVID things just delay the release of the assets or is there anything else? I don't know if you can comment a bit more on this. Thank you, Fernando. If you wanna, I start by this question and then maybe Carlos or Carmina can step in about the other one. Yes. I think it's mainly about that, and I would put just one example that can easily explain, which is Biome in France. Biome has significant cash flows attached to that. It's, roughly speaking, it's something that the market conditions should deliver around EUR 15 million to, say, a figure now a nd this in the end took longer than expected. Talking about the most significant investment. Now will be delivered by the end of H1 of next year, when a year ago or two years ago, we expected this to be delivered much before. That's a number of millions, let's put it this way, that we don't see in 2022. Just to follow up this one, do you have any concern about the letting of this asset? We don't. We don't have any concern about the level of rents that we will achieve? We don't. It's basically that sadly, this comes later and therefore it has an impact in the P&L of 2022. That is just to mention one cent of our EPS, it's EUR 5 million. Just one or two movements of this kind of this level that explain a little bit what's happening. The general trend for the rest, I think it's basically what I said. Carlos, about the other two things. Yeah. On the occupancy, it's basically flat on a like-for-like basis, both quarter-over-quarter and year-over-year. We tried to explain this a little bit on page 17. Page 17, when you look at Paris, you can see that basically we are at 95%. It is quite similar to the previous year and quite similar to June. The slight decrease versus the previous quarter is entry into operation of some area in Washington Plaza. Grenelle also came into operation during the last twelve months. If we take out this renovation program that we are now having progress on it in letting activity, we are even above a year ago. In Madrid, here you can see it very clear. In Madrid, basically the gap between 97% and 92% is Serrano y Ortega asset. These are clearly renovation programs that we were working on, so it's clearly flat also. In Barcelona, maybe we should have highlighted here, but we were focused on the quarter-on-quarter comparison. Torremolinos is an asset in the 22@ that has come into operation, part of it came already in the Q1. This explains basically the gap to the previous year. In a way, the comparable like-for-like portfolio is really flat in Paris, even a bit above the previous year. As Pere and Carmina mentioned, it's very good product. We are quite confident and positive on it. Nevertheless, now there's this little bit of lagging activity, especially in Spain, if we compare Spain with France. Thank you very much. Just, I don't know if you can comment on what you expect by the end of the year in terms of occupancy or no? Well, we prefer not to really give the specific guidance because, as we said, also we have some of the projects done coming in and they are now coming into the Q1. It's a little bit difficult at this moment to assess the exact finalization point. In any case, it would be, in a way, new entries into operations. We are, of the current portfolio, really very confident. Then we have to see to what extent we see a little bit of acceleration in the leasing market. This is what we need, especially in Spain, to get a little bit more traction in the market in general. Mm-hmm. In that sense, I don't know if you are seeing also more, let's say, number of visits on your assets to be released or not. I don't know any figure on that. I mean, you are very confident, but anything more specific that I don't know, in terms of visits or I don't know. Yes. Look, in Paris, outstanding, I would say. In the case of an, I f I put names like Washington Plaza or Cézanne and we have interest much well in advance of the delivery of the renovation programs. In the case of our friends there are zero, not zero, but not relevant headaches. Let's use this language. In the case of Spain, what we are seeing is first of all small deals happening a lot, no. When you look at the range of below 1,000 sq m or this kinda business has rebounded. What we see is less happening in super big deals. Trying to be specific now, as you are suggesting in the what's next, in our around the corner, which is Miguel Ángel and Velázquez. Miguel Ángel, we have very good prospects. I think we are in the typical situation that we are waiting for things to be confirmed and nothing wrong to happen, and so we can be more specific about it, but we are pretty confident about that. Velázquez, it's coming a little bit later. I don't have a number, but visits have increased substantially. Okay. We don't have specific news for Velázquez yet, no. That will be coming. The two things that we are working more on in the short term. Okay. Thank you very much. Thank you very much,. Thank you. We have no other questions. Dear speakers, the floor is yours. Thank you. Thank you for the attention, and we look forward to be able to present again very good results by the end of the year. Thank you and have a good day.