Ladies and gentlemen, welcome to the Covivio H1 2025 results presentation. I am Sandra, the conference call operator. I would like to remind you that all participants are in listen-only mode, and the 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 and Zero. At this time, it is my pleasure to hand over to Christophe Kullmann, CEO of Covivio. Please go ahead, sir. Good morning, everyone, thank you for joining this call. I am happy, together with Paul, to present to you our H1 results. Very positive, I must say, with strong growth and an improving outlook. Let us start with key figures, page two. We delivered a solid operating performance in H1 2025, with revenue up 5% like-for-like and 9% at current scope. Our recurring earnings were up by 14% and 6% per share. We also recorded positive like-for-like value growth by +1.5%, which enabled net asset value to grow, and leverage to stay below 30%, despite the full payment of the dividend this semester. Let us move to page four to comment on real estate environment. Real estate markets are showing clear signs of recovery. There is imbalance between demand and offer across all asset classes, and investors' confidence is back. See the investment market, page five. The start of the recovery we saw in H2 last year is continuing in 2025. H1 figures are up by +11%, and it is expected to grow by +12% for the whole year, according to Savills. More importantly, this recovery concerns all asset classes, as you can see in the bottom of the slide. Interestingly, also, the recovery comes also from large transactions, especially in office, as you can see, page six. The best example is the Trocadéro asset in Paris CBD. Big volume, about EUR 700 million, a yield of 4.25%, a potential buyer, Blackstone, who was not interested in office those past several years and is now willing to come back to the office sector. This renewed appetite implies yield stabilization over the last six months or even some compression in Paris CBD, just below 4%. Let us now move to letting market, page seven, with offices. The office market is seeing a better balance between supply and demand. Take-up is recovering overall in Europe, with good performance in Milan and Germany, despite low figures in Paris. In parallel, prime rents continue to increase. More importantly, looking forward in 2026 and 2027, we see better trends. Since COVID, the office market was impacted by three headwinds: work from home, no growth, especially in Germany, and oversupply. What you can see in this slide is that those three drivers are starting to evolve more positively. Employees back to the office, GDP growth expectation improved by the German investment plan, strong decrease in new deliveries starting next year. Good trend also on the hotel sector in Europe, see page eight. RevPAR were up by 2.5% in Europe at end May, with Southern Europe showing strong performance. We see clear capacity to continue to outperform GDP growth over the coming years. As you can see in the right part of the slide, overnight stays are expected to increase while hotel supply will remain limited. This imbalance supports pricing power and long-term value creation. Moving to German resi market, page nine. It also shows favorable momentum. First, construction activity is declining, with fewer permits on completion year after year. Second, the election of the new coalition, more business-oriented, is positive. It is providing better visibility on the regulatory environment and growth prospect. The consequence is that trend remains positive, with rents and prices continuing to rise, especially in Berlin, our major exposure. Overall, an improving environment over the semester, which reinforce our optimism for the future. Let's see some example of what we did at Covivio during the first half. Moving to page 12. Our portfolio has grown in H1, up by 3%, now slightly above EUR 16 billion of asset. This growth is made both on growth on a like-for-like basis and investment to continue to improve the quality. Over the semester, we slightly increased the exposure to hotels to 20.1% and reduced the one of offices just below 50%. Let's focus on like-for-like value, page 13. It is up by +1.5% in H1. Office assets are up by 0.4%, with gains in city centers, especially in Paris CBD, at +1.2%, and Milan at +1.8%, while core assets in business hubs are stabilizing. The growth was stronger for German resi and hotels. In German resi, values were up by +3.1% due to an increase in revenue and the quality of our portfolio. As a reminder, those are block values. In hotel, it is a new semester of like-for-like value growth at +2.1%. This is especially thanks to the portfolio we acquired in 2024 from the asset swap with AccorInvest. The value of this portfolio is up by 10%. As you can see in the right part of the slide, it's a new confirmation that a new growth cycle begins. Because of this conviction that we are at the source of value, we were not pushing on disposal this semester. We agreed on EUR 132 million disposal agreements, mostly in offices on non-core assets. Overall, 1% above last appraisal value. We are also working on further disposals with EUR 300 million under advanced discussions. In parallel, we invested EUR 215 million, mostly on CapEx, to improve the quality of the portfolio and create value, such as in CBD new developments or modernization in German resi. We also did for EUR 50 million of acquisition in our CB21 tower to take advantage of this dislocation of the office market today. Let's focus on this deal, page 16. First, few words on La Défense market, which is recovering. La Défense is a leading business district in Greater Paris. It suffered over the last years from working from home impacts and too much deliveries. We see sharp improvement over the last 18 months. In 2024, take-up was up by 60% and above historical average in H1, despite lack of very large transaction. As for the whole Paris market, I have to say, demand for spaces below 5,000 sq m continue to be very dynamic, up +62% with 48,000 sq m. On parallel, as you can see in the bottom of the slide, new construction basically stopped in La Défense. This makes it optimistic for the future of this market. This better momentum is positive for the only asset we own in this area, CB21. CB21 Tower is an emblematic asset in La Défense due to its excellent location just in front of the metro station. We did two things with this asset in the first half. First, we took the opportunity of the willingness of our minority partner in this tower to exit. Thus, we bought the 25% minority stake at attractive conditions below EUR 3,000 per sq m, with immediate value creation of EUR 44 million on a target yield of above 10%. Second, post the departure of the maintenance units, we launch our dual strategy. Relet 10,000 sq m as is, of which 6,000 sq m already secured, and launch a refurbishment program of 34,000 sq m with roughly EUR 60 million of CapEx. Covivio is also leveraging opportunities in its CBD exposure. Good example with our Milan's portfolio, page 18. As a reminder, we own a top-quality portfolio in Milan. See the figures on the left bar. In H1, we delivered Corte Italia, a 12,000 sq m asset in CBD, fully let and with 6% yield on cost and 24% value creation. We also secured a new redevelopment to be launched in H2 via Parrini. It's an asset from our telecom portfolio on which we intend to capture a very high reversion and over 20% value creation. Moving to hotels, page 20. Several major achievements in H1 too. First, you remember that we realized an asset swap with AccorInvest, now named Essendi, in the end of 2024. The results of these transactions are great, as you see in the middle of the slide. This portfolio delivered +11% growth in its EBITDA and +10% in values like for like. This performance is before launching our CapEx plan on this portfolio for EUR 100 million, which yield is expected to be above 20%. See two examples on the right part on which we work during the semesters. In ibis Paris Montmartre Sacré-Cœur, we will change franchise for a more international brand. In Mercure Nice Promenade Des Anglais, we will keep the brand but refurbish the hotel and create operating synergies with the adjacent Le Méridien Nice, both hotels being managed by WiZiU, our own hotel management platform. Still in hotels, page 21. We also changed the contract in a 305-room hotel in Roissy Charles de Gaulle Airport from a management contract with Accor to a 12-year lease with Radisson Hotel Group. Through this new contract, we expect to increase revenue from next year by more than 50% to EUR 4 million and create above 25% value. Last but not least, we also move forward to increase our hotel exposure by close to EUR 300 million in H1. First, with EUR 240 million of office-to-hotel conversion identified in France and Italy. Overall, this conversion will represent 600 rooms, EUR 110 million of CapEx, and an yield on cost above 6%. Second, we reinforce our stake in Covivio Hotels in H1 from 52.5%-53.2%. Third, we also secure the acquisition of a B&B Hotels development in Porto for a yield of 6%. To conclude on asset management, German Resi, page 24. We own in Germany a very high-quality portfolio in top cities, 58% Berlin, with high reversionary potential and privatization potential. The portfolio offers four value creation drivers, page 25. Rental reversion. We increased by 24% the rents of our letting during the semester, of which +36% in Berlin. Modernization CapEx. We invested EUR 24 million with a 7% yield on cost on average to improve the quality and the profitability. Development with build-to-sell programs. We delivered EUR 28 million in Berlin with an expected margin of 20% and launched two programs for EUR 22 million on 15% margin target. Privatization. We do it progressively in order to focus on empty flats and optimize the margin. We sold for EUR 20 million of assets in the H1 with 35% margin. I will now leave the floor to Paul to comment on operating performance and results. Thank you, Christophe, and good morning, everyone. Let's start by revenues. As you can see, page 27, we recorded a strong rental growth in H1 of +9% at current scope. Half of it is actually coming from the like-for-like revenue increase that you see on the right part of the slide. Interestingly, with a strong performance across all of our three asset classes, close to 5% for each of them, thanks to indexation, but also rental uplift and occupancy. On top of the like-for-like, our asset rotation also contributed positively to those revenues. The reinforcement in hotel made in the first half of 2024, the OpCo acquisition from Essendi made at the end of 2024, and the acquisition of the minority stakes in CB21. Let's now go more into detail by asset class and first, page 28 in office. First of all, we maintain our high occupancy at 95.5%. Like-for-like rental growth reached 4.7%, supported by a good indexation, 2.6 points of indexation, especially in France, supported also by the increase of occupancy of last year and a bit of positive reversion. Including the acquisition of the minority stake in CB21, we end up on a current scope, as you can see on the right part of the slide, with a +9% growth in revenues. Hotels. Page 29. Here also, new strong performance in H1. First of all, as you can see on the top right, top side of the slide, like-for-like is at 5.3%, which largely outperform the RevPAR growth in Europe, thanks to fixed leases with indexation of 3.6%. More importantly, thanks to the 8.5% like-for-like revenue growth we recorded on variable revenues, especially in France and in the south part of Europe, mainly Spain. The second important topic is what you see in the middle, is that this like-for-like rental revenue growth does not include the performance of our OpCo/PropCo merger from Essendi asset swap made at the end of last year. As Christophe said, the performance has been very good with a +11% increase in the EBITDA of those hotels. Finally, added to that, the reinforcement in our hotel exposure of last year, we post a +14.6% growth in our revenue for the hotel part. German Residential. Page 30. Here, the like-for-like is accelerating another year, I would say, when you look at the graph. Basically, we end up at +4.8% at the end of June. We were at plus 4.3% last year on a like-for-like basis, with an acceleration thanks to an increased indexation following the new rent table in Berlin and in North Rhine-Westphalia, and following also more revenues from our modernization programs. That's for the revenue. As you can see now, the increase in the bottom line is even higher. Looking at page 32 with the P&L of this first half. First of all, net revenue, increased by 10% at EUR 362 million. Our operating income increased at a stronger pace, plus 12%, which enabled us to improve our operating margin up by close to 200 basis points at 85%. The slight decrease in financial expenses and despite higher taxes due to more operating hotel activities, enabled us to improve even further our recurring results by plus 14% at EUR 263 million. Including the new share created last year, we end up at plus 6% on a per share basis for our adjusted EPRA earning. Let's look at the different drivers of this earning growth of plus EUR 32 million, as you can see, page 33. The main one is the strong operating activity, plus EUR 14 million on the like-for-like basis. You also have the positive asset rotation through the reinforcement in hotels, EUR 6 million, through the asset swap of last year, plus EUR 5 million, and through this acquisition of CB21 minority stake, bringing EUR 6 million in our earnings. Let's go now to the balance sheet. With financing activity, you can see on the left part of the slide 34, we are quite active. The main news comes from the EUR 500 million of green bonds issued in June this year with attractive conditions, 135 basis points margin for nine years, and a 3% effective cost thanks to our hedging instruments. Active also on bank debt with little bit more than EUR 200 million of debt secured at 100 basis points margin on average for nine years average maturity. You can see on the right part of the slide that we keep healthy debt metrics. Despite the full dividend payment in the first part of this year, our LTV ratio is below 40%, 39.8%. If we smooth over the year the impact of the dividend, we would have a stable LTV at 38.7%. Interestingly also, you can see that the net debt to EBITDA is improving another time, down from 11.4 times to 10.7 times. In term of NAV, looking at page 35. Our NTA stands at EUR 80.4 per share, increasing by 3.5% on a full-year basis and by 0.7% in the first half and despite the full payment of the dividend. This is thanks to positive value change, as described by Christophe, but also thanks to the capital gain in our acquisition of this first half. Thank you. Now leave the floor to Christophe to finish the presentation. Yes. Thank you, Paul. Moving page 37 for key takeaways. Very positive semester for Covivio, as you can see, with 5% like-for-like revenue growth, improved financing condition, active asset management works with also opportunistic acquisitions. These element together with the market improvement lead us to enter into H2 2025 with reinforced optimism. To conclude, we raise our recurring earning guidance by 4% for 2025, and we now expect recurring earnings around EUR 515 million, up by 8% compared to 2024, and plus 4% per share to EUR 4.64. Thank you all for listening, and now I'm ready with Paul, but also with Olivier Estève, our Deputy CEO, and Tugdual Millet, our Hotel CEO, to answer your questions. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the telephone. If you wish to remove yourself from the question queue, you may press star and two. Our first question comes from Valerie Jacob from Bernstein. Please go ahead. Hello. Good morning. Can you hear me? Yeah. Yeah, perfect. Thank you for the presentation. I've just got quick question, if I may. The first one is on your guidance. I just wanted to come back on the I think it's very helpful, the slide 33, and also I wanted to ask you the question maybe more explicitly. I think some of the building blocks you knew already six months ago, so maybe what has changed, apart from the CB21 acquisition, since you gave the guidance to lead to this increase? This is my first question. My second question is on hotels. You've got a very strong performance in H1, and I was wondering if you could share the visibility you have for the rest of the year. My third question is on CB21. I was wondering if you could share the timeline of re-letting the space. What do you currently have in your business plan? Thank you. Thank you, Valerie. On the guidance, I think, yes, most of the topics were presented. What is clear today is that we have better like-for-like result than expected in all asset class. That's something which is really there, and that helps really the result. Also, we have, I have to say, cost stabilization everywhere. That means that the operating margin increase with this increasing results. We have also the fact that we rationalize our debt in really better conditions than expected in our guidance. On top of that, we have the CB21 acquisition, which is accretive also on the result for this year. That, I have to say, for me, is the main element for that, for this raised guidance for 2025. Perhaps in terms of hotels, Juguel, if you can give some color for the second half. Yes. For hotels, first half has been very strong. Outlook for the full year is also very strong. We benefit in first half from some quite good base effect comparison with H1, specifically in Southern Europe. When we see the outlook for second half is still, I would say, mostly positive from Southern Europe and also from Paris, I have to say. That leads us to be quite optimistic in terms of performance overall. Let's say probably a bit softer than what we had on first half, but still very positive. Olivier, on CB21 reletting. Yes. On CB21, as we said, we have a strategy which aims to tackle all type of requests in the market. Roughly 40% speed to market with a minimum CapEx and target rent in the area of above EUR 400 per square meter, and roughly 60% where we implement more CapEx to target higher rent at EUR 550. We plan to have fully relet the asset by mid 2026. Thank you all. The next question comes from Anand Akasika from Citi. Please go ahead. Hi. Morning, everyone. Can you hear me all right? Yeah. Morning. Morning. Right. Two questions from my side. The first one is on the hotel investment markets. Could you just give some color around the markets in Southern Europe where you're looking for potential investments? Just in terms of the volume of opportunities, yields, and is there an internal yield threshold for Covivio on the hotel investments? That's the first one. The second question is just on capital allocation. How quickly can we see you deploying the EUR 1 billion of cash that you have on the balance sheet? What would make you consider other uses of liquidity, say like a share buyback, which might actually help offset the increase in interest costs from the upcoming refinancings? Are acquisitions and CapEx the main focus? Thank you. Tugdual, on hotels investment. For investment market, it's quite active. I have to say that the biggest deal so far done in hotels has been in Spain and Greece and also Italy. For Spain, I have in mind probably the biggest hotel that has been sold recently in Tenerife for EUR 430 million. Another very good and strong hotel in Athens and other kinds of opportunities in Italy. A lot of volumes, not that much of opportunity fitting with our objective. I have to say that, in terms of yield threshold, something around 6% is, I would say, a good proxy. It's aligned with what we announced this first half. Probably looking to second half and other opportunities, we are currently working on different opportunities, asset or portfolio in Southern Europe that should fit or could fit with this objective. On capital allocation, well, as of today, we want to continue to work on the LTV side. Question cash is, yes, we have cash on the balance sheet, but the topic is really for us to keep LTV below 40%, which is our target. We are just close to this threshold. As of today, we want to continue to reduce a little bit this LTV, and we will finance acquisitions if we have to do that through disposals. As Tugdual said just before, we are currently studying some acquisitions in the hotel sector for the future. That means that as of today, we don't want to put any share buyback program for Covivio. That's really helpful, guys. Thank you. The next question comes from Veronique Meertens from Kempen. Please go ahead. Thank you very much for taking my question and for the presentation. On that disposals, you mentioned that you have another EUR 300 million under discussion. Is that mainly non-core offices then, or what are you currently exploring there? It's mostly offices, non-core and office, which are not in the city center, business hub and so on. It's really mostly on the office sector that we are working today. Okay. Thank you very much. Maybe going back to that guidance, I would definitely say that given the results of H1, it still looks relatively conservative. I was wondering what's currently included in that guidance in terms of further capital recycling, maybe some comment on the improved operating margin, if you think that that's a one-off or you can keep that level in the future as well, and what you see in further leasing activity in the office segment. Paul Hello, Valerie. On the guidance, well, the capital recycling, we don't expect any impact from the capital recycling in the guidance. We expect the operating activity to continue to be good in H2. I would say some base effect in H1, probably a little bit lower than in H1, but still very good. Target to have this operating margin, let's say, sustained in the following quarters. Okay. Thank you. That's very clear. Maybe lastly, you mentioned you already discussed opportunities in the hotel market, but can you elaborate what you're currently seeing in the German resi market? I believe in your long-term targets, you also aim to increase exposure there, and there are several portfolios in the market at the moment. Are you there looking at those, or is that not at the yields that you're hoping to deploy the capital? Yes, we want to continue to invest in German resi. It's an asset class that we like. As of today, I have to say also, we have around us also equity that will love to invest with us in German resi in the future. That's I think also interesting factors to have in mind. That today, in German resi, some investors are really back to invest and are looking for somebody that is able also to manage the asset with them in the same time. Well, we are looking to several opportunities, but as of today, mainly to single assets, because there are some opportunities on the market and to build, I have to say, portfolio rather than to large acquisitions. Okay. That's very clear. Thank you. The next question comes from Florent Laroche-Joubert from Oddo BHF. Please go ahead. Yes, good morning. Thanks for this presentation. I would have three questions here, if I may. The first one would be a follow-up question on the guidance. We see your earnings per share growing by +6% in H1, and you raise your guidance only by +4%. What explains the fact that you expect maybe lower growth in H2? That will be my first question. My second question, in offices, how do you see your leasing activity and occupancy in H2 evolving in your different markets? My third question, what should we expect in H2 in terms of asset management in hotels or any further positive impact to be expected like in H1? That would be my third question. On guidance, one of the main impacts that explain H2 lower than H1 is CB21, because we have the full impact on the CB21 letting with Swire that we'll not have on the second part of the year. I have to say, that's for me, the main impact that we have to share. If I may, Florent Laroche-Joubert, keep in mind that in the H1 2024, you didn't have the full number of shares. In H2 2024, you will have the full number of shares. That's why on a per share basis, you have this quite mechanic effect, when we compare with the H2 of this year. In the office leasing activity, what we can say is that's really we have a first half that was not so active, I have to say, in term of number of square meters let compared to the previous one. Leasing also to the fact that we have only 5% vacancy. What we expect today is really more active second half, especially in our development assets that would deliver in the coming months. We have advanced discussion on Beige, for example, in Paris, and also on LOFT in Berlin. What we can say also in Italy, we have very low vacancy, but really what we see is that market rents continue to increase and we expect to have also there some good news to share in the second half. Asset Management Hotel, to Gaël, some word on what we could do in the second half. We are working on our existing portfolio to try to unlock some additional revenue growth. The example of what we have been able to succeed in first half is giving some flavor of the way we are working. Depending on opportunities, either taking back the OpCo or transforming OpCo to lease, is the strong attractiveness of the model in hospitality. Remember that during Capital Market Day, we stressed the fact that the flexibility in contract is a good trigger for future growth. We have several discussion with our existing tenant or hotel operator, including, for instance, the remaining asset that we own with Essendi, and we hope to be able to do some interesting things as what we've done this first half with B&B or with Accor. Okay. Thank you very much. The next question comes from Adam Shapton from Green Street. Please go ahead. Hi, good morning. Just one from me, another one on capital allocation. You point to the return of capital to Paris CBD offices for larger transactions and yield compression that I guess you think is ongoing. Just wondering, has that affected how you think about capital allocation, either within your office portfolio or across the group as a whole, compared to the intentions you set out at your Capital Market Day? In other words, if prime CBD yield is 4.25% and perhaps heading lower, does that change how you think about capital allocation in office? No, we clearly want to continue to push on centrality. We have the target to have, in the medium term, 85% of our portfolio in the city center. That doesn't mean that we are not interesting to also look at other areas, but really we want to continue to push there, because when you are looking to the rents and to what you can imagine the future rents, the growth continue to be really strong on the central location. That's why we continue to be really positive on the central location, we see the same trends really in Milan as in Paris, with really a strong evolution and positive evolution on the market rents. Okay. Perfect. Thank you. The next question comes from Jonathan Kownator from Goldman Sachs. Please go ahead. Good morning. Thank you for taking my question. Just another follow-up on offices, very quickly. Just trying to understand where like-for-like growth could go there. You obviously had very strong growth for H1, describing quite a positive environment at central locations. Do you expect you're able to push occupancy a bit further? How about indexation? How fast is it trending downwards or is it a good level at this stage? Do you see further reversion in the portfolio? Thank you. Hello, Jonathan. Of course, indexation will be lower in the coming months. Still, we see some potential in terms of occupancy rate increase in our office portfolio. We talk about CB21. We have also some challenges and potential to improve on the German office side. We will deliver one asset in Düsseldorf, the ICON building, in the second part of this year. Here we see some potential to continue to, let's say, outperform inflation on a like-for-like basis for the office part. Okay. Reversion in the portfolio, where do you see it at this stage? The reversion was slightly positive in the first half, +0.3%. On the renewals of the first part of the year, we are at +8% on average. A slight positive reversion on this part. Okay. Any further free space you're aware of, we should be aware of, or anything material from that perspective? You mean on the office part? I mean the main Yeah is the CB21 targets and letting side for my side. Okay, cool. Thank you. It's very helpful. The next question comes from Paul May from Barclays. Please go ahead. Hi, guys. Just a couple from me. Appreciate there was a question earlier on sort of cash and LTV. Just wondered, do you have a net debt to EBITDA target or is that something that you're planning to put in place given that still seems quite stretched by sort of marginal investors? Just wondered how you think about that as a target rather than just focusing on LTV. Noticed your disposals were at quite materially higher yields than the remaining portfolio. Just wondering if you could give some color on the quality of those and the location of those disposals and how that sort of gives you comfort on the sort of remaining valuations of the assets. Then just one on CB21. I think you've got a yield on cost of 6.7, which obviously tighter than the yield of the Western Crescent and La Defense assets. I appreciate there's obviously a mix of assets within that. Just wondering if you could reconcile the 10% yield target on CB21, the value creation with that lower yield on cost versus the sort of broader portfolio yield and the sort of broader market. I suppose some color on the exit yield would be useful for that. Thank you. Okay. On the debt metrics, Paul. Yeah. Net debt to EBITDA is of course also quite a focus for us, and we communicate largely on this matrix. We were able to reduce it. Just as a reminder, we were at 12 time two years ago, so we are at 10.7 times. I would say that being below 10 times would be a good target for us. Regarding CB21, the 10% is related to the acquisition we have made of the 25% of our former partner. Meaning including CapEx, we should reach this 10%. If we consider the whole tower, if you take the valuation coming from this acquisition plus the CapEx we expect to put in the building, we reach this 6.8% yield on cost, and it's in line with our target in terms of relating. For us, it gives room to create value in the future because we think that cap rate should decrease slightly in this sector. There were also a question on disposals. Paul, if you can just remind us. Yeah, sure. Just on the disposal, we're just looking at the disposal yield, I think it was 6.8%, I think, from memory, versus valuation. I just wonder if you give some color on the quality of the assets that you sold, the locations, are those the things that explain the materially wider yield on disposals? Yeah. We give a bit of details in the slide in the presentation, which is mainly non-core offices and peripheral offices, as well as some non-core hotels in Germany. That's what explains this yield, which is higher than the average of the portfolio. It's really due to the quality and the location. I'm sorry, just a quick follow-up on CB21. I appreciate that the temp sum is just on the acquisition of the 25%. All else equal, it's still slightly loss-making, is it, the development, absent any future yield compression assumption? No, on CB21, because you compare with the average yield of the Western Crescent location. The CB21 tower, in terms of location, is even better than the other asset of this pocket. Just as a reminder, it's very close to Paris. It's in front of the subway station. We consider that at 6.7%, even without compression of the yield, we should create value in the price per square meters. That means 6,700 EUR per square meters for this tower. Just to have in mind, in La Défense today, especially because that's the market, we are at really low rents, economic rents, compared to what we see in the past. Really, demand is increasing. We have the 6.8% with this level of rents. That means really that we really consider that we will create value on that immediately, but more on that in the future, because my feeling is that in the future, market rents in La Défense will re-increase. Thank you very much. The next question comes from Stephanie Dossmann from Jefferies. Please go ahead. Hello. Maybe a follow-up question on the indexation going forward, because, if we look at the ILAT in France on the offices, it should land closer to 0.8% something. I was wondering if you could share your assumption for 2026 on offices, in particular in France. The second question would be on the investment market in German offices and German offices market, generally speaking. How do you see it evolving, going forward, improving on that and for your future disposals on this market, please? Thank you. On the indexation in office, not so easy to answer your question. Paul will try. No, I think your question was on the valuation of the assets. No. No, on your assumption on the indexation- Indexation. -France next year as the ILAT index is pointing to very low figures, such as 0.5%, 0.8% by the end of this year. We don't give guidance for 2026. What we expect is that when you look at the past also, the ILAT is very close to inflation, even though in the calculation is not exactly the same. We expect the ILAT to come back to the indexation, so between 1.5%-2%, I'd say. In the valuation of the office assets in France, the six months to come, we are at 0.7% and 1.5% next year. That's the hypothesis of the appraisals. Coming back to your question on Germany and the investment market, we see a starting recovery of that. We see the large transaction in Berlin with this tower that was sold in the first half. We just sold one asset in the east part of Berlin for EUR 18 million at the end of June. We have other discussions today. It's starting to come back, what I can say, on the office market also in terms of investment in Germany. Thank you. Maybe a follow-up on your activity of conversion of offices to either residential or other kind of assets. Do you have any guidance on that? We have a certain number of assets we transform in a residential. We have launched two projects in Rueil-Malmaison very recently, and we are also working on four project to convert, I would say, office building in hotels, both in France, in the Paris region and in Italy. As a reminder, if you wish to register for a question, please press star followed by one. Gentlemen, so far there are no further questions from the phone. Back over to you for any closing remarks. Thank you, everybody, and thank you for your questions, and see you soon during the roadshow and the next days. Bye-bye. Thank you.