Hello, and Welcome to The Gecina Conference Call Business at September 30th, 2022. My name is Caroline, and I'll be your coordinator for today's event. For the duration of your call, your lines will be on listen-only mode. However, there will be the opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question at any time. If you have any assistance required, please press star zero and you will be connected to an operator. On the call today we have Beñat Ortega, CEO, Nicolas Dutreuil, Deputy CEO in charge of Finance, and Samuel Henry-Diesbach, Head of Financial Communications. I will now hand over to your host, Samuel Henry-Diesbach, Head of Financial Communications, to begin today's call. Thank you. Yes, good morning and hello to everyone. Thank you for being with us for this conference call related to our business update in Q3 2023. I'm Samuel Henry-Diesbach, and I'm here with Beñat Ortega, CEO, and Nicolas Dutreuil, Deputy CEO in charge of Finance. After brief introduction by Beñat detailing our performance for this quarter, Beñat, Nicolas and I will be happy to answer all the questions you may have. I hand the floor to Mr. Ortega. Hi, everyone. Thank you for being with us this morning. As you may have seen already in the press release published yesterday, our performance has been particularly robust, this quarter again, bringing therefore confidence for the quarters to come. It's clear that the performance we are able to deliver this year may contrast with uncertainty that seems to worry stock markets. To us, this is largely due to our strengths, the quality of our portfolio that provides visibility and high capacity to perform well. As you may have seen, reversionary potential remains strong. We've been able to capture 16.16 yearly rents in average on our portfolio this year over the last nine months, and even almost 30% in Paris city. We have also, at the same time, the capacity to capture the benefits of Indexation over the next months. The second strength is obviously the quality of our balance sheet with financial expenses hedged at slightly more than 90% until end of 2024. Also have in mind that 75% is hedged until 2028, with an average debt maturity of more than seven years. Since we are talking about the liabilities, I'd like to add a few things about what we have done in the last months. We have improved liquidity significantly by extending or renewing EUR 600 million revolving credit lines with an average duration of more than seven years, and a margin which is consistent with the previous margins. We are super happy and thankful to our partners, the banks. We have, therefore, no liquidity issues since the surplus liquidity of more than EUR 1 billion is covering all our maturities for drawn debts through to 2027. At the same time, on the operating side, the combination of several supportive factors is delivering the acceleration of our performance. One, like-for-like rental growth is up by 4%, while it was 3% at end of June and 2% at end of August. Clearly we see an acceleration of our like-for-like growth. Have in mind that, as a consequence, the third quarter is delivering a 6% growth between the third quarter of 2021. Obviously, three elements, increase in occupancy rates during this quarter after several quarters of improvement. Indexation is progressively contributing to a like-for-like growth, but still pretty low at 1.5% contribution. A significant Rental Reversion, as I said, 16% in Q3. Obviously, it will deliver more growth over the next quarters. This is very true for our office business, but same goes with our resi business since we have accelerated also on Rental Reversion on our resi business and now on Q3, reversion is more than 10% on our resi venture portfolio. So like-for-like growth clearly is an improvement factor. The pipeline contribution is now positive. Most of the deliveries are now scheduled because we have a very high level of pre-leasing on those deliveries for 2022, 2023. How do we achieve that? Through quite iconic transactions in the CBD. We closed our Boëti pipeline project, which is now 100% let. We have relet our 64 Lisbonne building to a luxury brand. Those deals combined with the three Opéra. Facing the Opéra Garnier in Paris, we have achieved those deals above EUR 950 sq.m, which is amazing for those locations. In terms of also iconic deals or results, I think our achievement on our student housing portfolio is amazing. We posted 18% like-for-like growth on that business, largely due to an improvement in occupancy, but also, like I commented during Q2, a significant improvement in our pricing power on that business. The last element on those quarter results, we have achieved for the first time, I think, to be number one in offices, by Grade A business. We are very happy to announce that today. We are now ranked first in Western Europe for the office real estate for real estate company. We also triple-A rating by MSCI. As a conclusion, obviously a lot of uncertainties. We are careful and cautious on interest rates obviously. But thanks to our precautionary management of our balance sheet, but also our strong performance, we are happy to be able to confirm our objectives for 2022, and therefore we confirm our recurring net income target at 5.55% as announced in June 2022, which is up by 4% compared to 2021. After that quick introduction obviously, we are, Nicolas, Samuel and I, available to answer your questions. As a reminder, if you would like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. To withdraw your question, please press star two. We will take our first question from line Jonathan Kownator from Goldman Sachs. The line is open now. Please go ahead. Good morning, team. Thank you very much for the presentation. A couple of questions. First of all, just on the occupancy rate, if we look at September, obviously up at some basis points. Can you comment on, first of all, for the office you think that can go? Do you have more potential to take it up from the current level of 90.2%? You have already signed contracts with the partners that I've found. You highlighted the strong performance of student residences, and yet the occupancy rate was down in September. Is that a seasonal pattern or is there anything else that we should think about for this business? That's the first question, please, Beñat. Second part, obviously you haven't updated your valuations as part of this release, but can you perhaps help us understand where you think valuations are heading? Some investors think that the properties with the lower yields need to reprice the most in terms of taking deals to more over 4%, for instance, and some think that trend will be more resilient. What are you seeing currently in the market regarding that today? Thank you. Thank you, Jonathan for those questions. On occupancy, obviously, we are working hard to improve that occupancy rates. We say that the average occupancy which drives the concept for the quarter is an average one. As an anticipation for future quarters, occupancy rates further has also increased by more than 100 basis points, not 100%. Sorry. I think we have room to improve that occupancy over the next quarters. I'm sure we are working hard on that, and there is no reason we can't achieve it. Student housing, we are happy to keep the levels in occupancy around 1% below, but it's stable that we grew significantly our rates. I think where we can improve still is let's say the. Not September because September we are where we wanted to be, high prices and a high occupancy. But maybe next year we will try to improve the April to July period. So we will, we work on that, no worries. On valuation, you know, it's too early. Just a comment, you may see on leading markets and investment markets is also always a great demand on central location. Vacancy is low. Rents, as you can see, we have achieved rents above EUR 9.50 on Opéra district. That shows that, you know, the appetite is still super there. So we see reversion. We see appetite. Obviously, having yields moving faster where there is leading demand against places where the demand. No comment. That more. Are you seeing like, you know, what are you seeing in terms of transactions currently? I mean, have there been changes within the leasing in Paris? Are you seeing those are just the result of negotiations started six months ago? Or do you see, do you expect more transactions to happen to this sort of similar levels towards the end of the year to what's happening currently? To be fair, we are not massive sellers, so we don't see that on the market. My intuition is that yes, the market has slowed down. It doesn't mean that the market has repriced, but the market has slowed down in terms of volume. That's more an impression than figures. I think we have to wait for brokers to deliver the information. Thank you. I think we still have questions. All right. Caroline? Can you please put us to the next question? Yes. The line is open now for Stéphanie Dossmann. Please go ahead. Yes, good morning, and thank you for the presentation. I have three questions from my side. The first one on the office division, could we have the reversion rate that was secured during the first nine months of the year outside Paris? Also in regards to the offices, what could we expect for the next three years in terms of negative impact due to U.S. assets to be transferred to the pipeline? Finally, could we have an idea of the spread in terms of financing costs between the bond market and the bank lending market? Thank you. Yeah. Maybe on the last one, the banking market, as you know, we have reduced our undrawn bank facilities, so the cost within our tier is majorly non-callable. That's pretty super limited. The spread on our bank facilities, if we draw the debt, is below the spread, so in terms of spread, it's cheaper than going on the bond market today. Obviously, it's confidential information, so I will not go through the details. The spread are still super tight on those pipelines. Obviously interest rates are what they are. Assets transferred onto the pipeline, we have moved, in fact, and that was communicated already in June, Marbeuf into the pipeline. That's an asset in Triangle d'Or, where we have quite a big ambition on that. That would be a landmark building, where I think we do great stuff. Work should start over the next weeks. We have emptied the building. We are currently clearing the building and we'll launch those refurbishment works. The idea is to create more square meters, more valuable square meters, terraces by changing the technical equipment and bring that to the best PSR solaire. Okay. Just one question on that. Do you think that you will have a net positive impact of the pipeline for the next two years? We never comment two years in advance. What we gave was indication of what the pipeline will deliver. Yes, this quarter our pipeline is starting to deliver and obviously, the next quarter it should be rationally improving our cash flow, yes. We give the details of our pipeline in June. I know. The reversion rates of Paris? The reversion rates of Paris are lower, slightly negative. We had a negotiation, I remember, in Colombes, I think. It was not an easy game. I think, you know, the reversion, that's why we communicate over a long period of time. I think the reversion in some cases are not easy. The beauty and you know, I remember several comments on that. I think the beauty of Gecina is that 75% of our portfolio is in Paris and the East, 85% is in Boulogne, Saint-Mandé, Levallois. I think that's the best strength of the company. Depending on where the transaction lies, when it's not in Paris, obviously you have different figures. I think bear in mind that 85% of our portfolio is composed of Paris, Boulogne, Levallois, Neuilly, which is still a very enthusiastic market. Thank you. Thanks again. you. Thanks again. Thank you. We'll take the next question from line Dan Serjeant from SocGen. The line is open now. Please go ahead. Hi. Good morning. Thanks for taking my question. Just, it seems like there's no adjustment really for the new economic reality that we face, which surprises me. I mean, I think we're seeing a new paradigm shift across real estate in terms of pricing. Should you not be doing something in adjustment for that? Should you not be looking to dispose more if the market's still there, which isn't the case in many markets across Europe. For the pipeline, have you changed the pre-leasing requirements before you commit to new schemes? What adjustments have you made for what's happened over the last six months? It seems that there isn't a change. Listen, you are not being fair with us. We just renegotiated more than two years in advance banking facilities. We issued more than EUR 1 billion bonds before the interest rate grew at a 0.9% on average for 11 and 15 years. We sold a difficult asset in La Défense early this year. We are securing actively most of our pipeline in