We're all here. Good morning. Welcome to Derwent London 2022 annual results presentation. It's great to see so many of you here in person. Welcome to those online. Today, you will hear from me, Damien, Nigel, and Emily. I shall then wrap up before Q&A. Turning now to slide two and the overview. Before we go into detail, this morning we have separately announced two major lettings, which together total more than GBP 13 million of new rent at well above ERV. The largest transaction is the pre-let of more than 100,000 sq ft to PIMCO at 25 Baker Street for 15 years. The Featherstone building is now nearly 60% let following the letting to Buro Happold, the global engineering company who are committing to Old Street. Emily will provide more detail. Now to the market. London is busy, and in particular, the West End is buzzing. Hybrid working is well established. The vast majority of our portfolio is busy. The way tenants use their space is changing with a focus on peak occupation. In 2022, take-up rose strongly compared to 2021, led by the West End. This reflects London's broad appeal to a diverse range of businesses, as well as a number of occupiers returning to central locations. Availability across London is high, but as I like to say, beware of averages. The West End is a lot tighter than the City. The flight to quality is continuing, and I believe is accelerating. Demand is strong for prime, but vacancy is concentrated in lower quality secondhand space. The thin near-term development pipeline is leading to businesses with large requirements engaging for pre-lets ever earlier stages of development. Last year, we saw political instability, the conflict in Ukraine, and a rise in inflation and interest rates. This led to an outward movement in yields, our portfolio was more resilient and outperformed the index. Nigel will provide more information. Despite the uncertain backdrop, we agreed GBP 10 million of new rent, 13% ahead of ERV, and settled GBP 30 million for asset managed transactions, 5% above. We see rental growth for better buildings accelerating over the medium term as the demand supply balance widens further. We're encouraged by the recent reduction in volatility across financial markets, together with the ongoing weight of global capital looking to invest in London, supported by its attractive yields relative to other European cities. Quality will be the key driver of performance. Turning to guidance. We expect average ERVs across our portfolio to grow between north and +3% for 2023. To yields, while it's more difficult to forecast, we see upward pressure easing, expected to remain more resilient for our high-quality buildings. To slide 3 and an operational overview. In 2021, we made a decision to retain our recently completed buildings for longer, to sell non-core assets with less repositioning potential, for proceeds to be recycled into a higher returning pipeline. That decision has been endorsed by the outperformance of these assets. In 2022, acquisitions totaled GBP 133 million, we invested GBP 122 million in CapEx, completing three large schemes and progressing two major projects. We sold over GBP 200 million, on average, 12% above book value. ERV growth was 1.3%, bang in the middle of our guidance range. Higher quality buildings outperformed with a growth of 2.5%. We see value in a combination of longer leases and shorter furnished and flexible deals. At year-end, our average lease length was over seven years and will rise following recent letting activity. There is also value in our long debt maturity of more than six years. We have a very strong balance sheet and significant acquisition capacities should opportunities emerge. Slide four, our market themes. In short, occupiers are becoming more selective on quality and location. There is already a shortage of the right supply, this is expected to become more acute. Knight Frank estimates an 11 million sq ft shortfall over the next four years. London is a vibrant global city, and 280,000 new office jobs have been created over the last two years. You've all read about the challenges with big tech, but our exposure is limited, and a number of other sectors, like professional services, are growing. The opening of the Elizabeth line has driven a surge in footfall, with the volumes of journeys exceeding expectations. Our portfolio is well located to benefit. Our medium-term developments are in the West End, and we will continue to start new up- projects speculatively. The investment market is on slide five. Q1 saw record investment volumes, which supported total transactions of over GBP 11 billion in the year, despite the pause in Q4. In response to economic disruption and the sharp increase in borrowings, yields in all property sectors rose. West End yields outperformed, rising 25-50 basis points compared to the city, which where yields rose to 75-100 basis points. Our own equivalent yield rose 38 basis points to 4.88 and back to levels last seen in 2014. CBRE estimates GBP 33 billion of global capital targeting London. The market remains polarized between the best and the rest. For poorer assets, vendor pricing expectations are being reset, but there's not yet any distress. Investing in the portfolio. Derwent is well known for its signature approach to development. Our new build pipeline extends to nearly 2 million sq ft, which will be delivered over the next decade. We also have a pipeline of refurbishment opportunities approaching nearly 800,000 sq ft. Our portfolio is already 85% compliant with 2027 EPC legislation and 65% for 2030. Having completed some EPC upgrade works, we will look to manage these alongside a fuller regeneration of buildings where we see a great opportunity to increase rents. Thank you. I will now hand over to David to take you through the financial results. Thank you, Paul, and good morning, everyone. Some of the main financial figures for 2022 are shown on slide eight. In summary, rents were up 6%, EPRA earnings were roughly flat. The downward revaluation of properties took EPRA NTA per share down 8.3% to GBP 36.32. This gave a negative total return for the year of 6.3%. Our balance sheet remains very strong. We've proposed a further increase in the dividend to GBP 0.545. The total dividend for the year is 1.4x covered by EPRA earnings. Slide nine. The property revaluation decline was almost entirely yield-driven. Nigel will explain the figures in more detail later. Borrowings were marginally lower in December 2022 than a year earlier, as retained earnings and property disposals offset CapEx and acquisitions. The lower valuations have taken EPRA Loan-to-Value ratio to 23.9%. For 2022, we've adopted two revised accounting policies after clarification from the standard setters. The first one relates to the way rent concessions are reflected in the income statement. Historic rents demanded but subsequently forgiven are now written off immediately rather than spread over their lease terms. The prior year adjustment to net rent was only GBP 300,000. We have also now grossed up the balance sheet to include cash held in tenant rent deposit accounts and service charge accounts, as these accounts are in our name and we have signing rights. This is designated as restricted cash and has not impacted our net asset value, net debt, financial headroom, or gearing definitions. Both prior year adjustments are set out in appendix nine. The movement in EPRA NTA is shown on slide 10. In addition to EPRA earnings of GBP 1.07 a share, the sale of Bush House in Q3 helped the profit on property disposals to GBP 0.23 per share. The revaluation deficit for the wholly owned portfolio was GBP 3.73, with a further GBP 0.08 coming from our share of the joint venture at 50 Baker Street. Slide 11 shows EPRA earnings. Gross rents increased to GBP 207 million, premiums were lower than in 2021, and irrecoverable property expenses and finance costs both increased. Overall, EPRA earnings ended the year marginally lower than 2021 at GBP 1.066 a share. If we exclude the premiums for rights of light and lease surrenders in both years, underlying EPRA earnings were marginally higher than in 2021. Slide 12. Gross rents due mainly to the major developments, with GBP 10.8 million from Soho Place alone. Asset management added another GBP 7.4 million. Breaks and expiries reduced rent by GBP 11.1 million, partly at Network Building, which was emptied for development. On a like-for-like basis, both gross and net rental income were up by 1.1%. Rent collection is now essentially back to pre-COVID levels, and our tenant rent deposits increased up to GBP 27.3 million. Slide 13. The 33% increase in property expenditure was mainly due to higher vacancy rates, driving irrecoverable service charges up to GBP 5.1 million, but was also impacted by marketing costs of GBP 1.8 million and a GBP 1 million increase in repairs. Utility costs increased hugely in late 2022. Typical green electricity tariffs went from around GBP 0.31 per kilowatt hour up to GBP 1.08 in Q4. They're now falling, and the latest indications we have are below GBP 0.40. These increases had a very big impact in Q4 on tenant service charges and on our own irrecoverable costs too. Net finance costs increased by GBP 6.3 million on higher average borrowings. Capitalized interest was also lower in 2022 at GBP 7 million versus GBP 12 million in 2021. This is because the balance on which interest is capitalized builds up over the life of a project. In 2021, we had high cumulative development expenditure, while in 2022, both 25 Baker Street and Network started from low levels. There were few rent waivers or other concessions in 2022. We were able to reverse GBP 1 million of impairments booked against receivable balances in earlier years. Slide 14. This shows 2022 project expenditure, and it's allocated in five different places in the group's balance sheet, so I thought I'd explain it. The main projects incurred GBP 113 million of CapEx, mainly at Soho Place and Baker Street. GBP 8.7 million was added to trading property in relation to the residential units for sale at 25 Baker Street. A further GBP 1.9 million came from the retail elements due to be passed to The Portman Estate on completion at Baker Street. They're included as trading stock as we do not have an ownership interest in them. In addition, our 50% share of the planning and design costs at 50 Baker Street was GBP 1.6 million, shown within investments. Finally, GBP 9.1 million of costs relating to Old Street Quarter are included within non-current receivables. Slide 15 sets out estimated future project expenditure. After significant inflation over 2022, construction cost increases are now moderating. The costs shown here cover committed amounts on our major schemes, planning and design fees, and smaller upgrades. Full details are in appendix 51. In addition, we're appraising some more substantial refurbishments, and they're outlined in appendix 52. We've updated our estimated costing for EPC upgrades, and it's now GBP 99 million after the sale of Charterhouse Street in January. GBP 58 million of these costs were specifically provided for in the external valuation at December, with further allowances in that valuation for general refurbishment costs. Slide 16. This shows our usual pro forma, taking account of the GBP 330 million cost to build out the committed major projects, the sale of Charterhouse Street in January, and agreed lettings. The required spend is covered by available facilities, both interest cover and LTV ratio remain at comfortable levels. Slide 17. Perhaps most importantly, our balance sheet remains in very strong shape. Year-end debt was all at fixed rates. Gearing was relatively low, we had GBP 577 million of undrawn facilities and unrestricted cash. Borrowings had a weighted average unexpired term of 6.2 years, our weighted average interest rate was unchanged over the year at 3.14%. We also retain an unused GBP 75 million interest rate swap at 1.36% until April 2025. Our covenants are very comfortably covered, relationships with all of our lenders remain excellent. Thank you very much. Now over to Nigel. Thank you, Damien. Good morning. Slide 19. As set out with our interims, we transitioned our valuer this year from CBRE to Knight Frank following earlier shadowing exercises, which did not reveal any material differences in either approach or outcome. On the valuation, after a resilient H1, when both leasing and investment markets were strong, there was a change in H2. Whilst the flight to quality continued, with both demand and rents holding up, the sharp rise in financing costs caused the market to freeze towards the end of the year, driving up yields. The underlying 1.4% increase in H1 turned to an 8% fall in H2, giving a 6.8% decline for the year. Within this, developments continued to show good returns, up 4.8% despite the H2 yield shift. Total property return was negative at 3.4%. This was a beat against the MSCI London index, which was down 8%. Let's look now at the themes. Slide 20. As mentioned, developments continued to deliver good returns. Rental value growth is showing signs of improving. We have retained our quality buildings for longer, and these are outperforming. This is illustrated by the chart on the right, which shows the valuation performance at different capital value bands per square foot. Development in higher value buildings were more resilient, though it should be noted that some of the lower value properties are our projects for the future, where we can drive floor area, rents, or both. Paul will cover these in a little more detail later. We also sold over GBP 200 million at circa 12% above book, including Bush House, where our development surface was released upfront. Lastly, our leasing and asset management teams have been achieving above ERV. Slide 21. Turning now to ERV and yields in more detail. ERVs were up 1.3%. Our retail ERVs turned positive. The economic turmoil in the second half hit most of the property sector. We saw a 42 percent basis point outward movement in H2. Consequently, 38 basis points for the year. As to the outlook, while turnover is still low, there are signs of building going under offer. We're getting approaches from family offices who are generally equity buyers and are seeing this as an opportunity to acquire in a less crowded market. We also know some European funds are looking for long income and are starting to see some value following the yield shift. Build-up of portfolio ERV, slide 22. Following the completion of Soho Place and other lettings, annualized rent increased 14% to GBP 204 million. The on-site developments at Baker Street network, which will be completed in 2025, could add GBP 30 million of income. You will have seen in today's announcement, PIMCO has already pre-let GBP 11 million of that. The ERV of available to let space at GBP 17.3 million, which equates to the 6.4% vacancy rate, we've been busy since year-end. Letting since year-end include Buro Happold, which would reduce this figure by about GBP 3 million, and further space is under offer. The portfolio ERV is up 4% to GBP 305 million, partly due to the commencement of network building during the year. Acquisitions, slide 23. On acquisitions, we've added to the long-term pipeline with two classic Derwent purchases. First, in Southwark, a 60,000 sq ft multi-let building with the potential to treble the space down the line. At Old Street Quarter, we exchanged conditional contracts to acquire 400,000 sq ft of existing buildings on a 2.5 acre site. The purchase will complete once the new Moorfields Eye Hospital in St Pancras is built, which is expected to be in 2027. We are progressing our studies and aim to make a planning application later this year. At Soho Place, completion of the development triggered the remaining site payment and the granting of a new headlease. Disposals. We are also busy on a range of sales, each with their own characteristics. New River Yard had only limited scope for upgrade, multi-let on short leases across four buildings. We have other opportunities in the portfolio with higher expected returns, so chose to recycle. At Soho Place, we sold the office above the theater following completion, and then at Bush House, as mentioned, we crystallized development returns with no risk. Since year-end, we've sold Charterhouse Street to a family office at close to the June 2022 book value. There's a refurbishment potential here, but generally on the small side for us. Turning now to sustainability and an update. Slide 26. On this slide, you can see our Scottish land, where we have a resolution to grant planning for a solar park of over 100 acres. The site is adjacent to the grid connection, and the 18.4 MW of output could provide more than 40% of electricity used by our managed portfolio. The planning is currently being finalized, and subject to surveys, we aim to be on site later this year and adding to our carbon reduction story next year. Slide 27. Our journey to net zero. With a rapid rise in energy costs, usage is very much under the spotlight. The top chart shows the progress we've made on energy reduction from our 2019 baseline. We are pleased with it that this reduction was 3% last year and is now 26% below the baseline. Gas usage was down 16%, but with the return to office, tenant electricity was up 5%. Our teams are working closely with our occupiers on initiatives such as changing temperature bands, better zoning, and feedback of usage. On operational carbon footprint, which covers scope one to three but excludes our development activity, this was down a further 7% in 2022. Energy intensity, slide 28. This is the energy usage rate per square meter, so a measure of efficiency. Our target pathway is for a 4% year-on-year reduction from 2019. This is the orange line shows on the chart on the left. As shown, we are operating ahead of our target, and our 4% drop year last year takes overall reduction since 2019 to 22% and is in line with our 25% target. Some of the initiatives we're undertaking to achieve our aims include green lease clauses, a program of occupier engagement to help reduce energy usage, and rolling out of intelligent buildings infrastructure across the managed portfolio with Johnson Controls to enhance data collection and understanding. Finally, embodied carbon, which is generated through our asset repositioning activity. Regeneration is a key way we can create value and is important that we stay ahead of occupier trends. However, it is also a major contributor to our carbon footprint in the form of embodied carbon, so it must be managed properly. All our on-site developments are on track to meet 2025 target of 600 kilos of carbon per square meter, and we're challenging ourselves to reduce this target to 500 by 2030. This work is ongoing and is integral to our design. Our development team continues to explore new opportunities to reduce carbon, such as designing out over-specification, use of low-carbon materials, and more modular construction. Thank you. Now Emily. Thank you, Nigel, and good morning, everyone. Looking now at the occupational market on slide 30. London office take-up reached 12.43 million square feet in the year, significantly higher than last year and in line with the 10-year average. Within this, the West End took market share at 4.9 million square feet or 40% of the total. Having increased through the pandemic, Central London vacancy reduced slightly but remains elevated at 8.2% across Central London. As Paul has said, this is not evenly spread. The West End is low at 3.7%, in line with the long-run average and approaching pre-COVID levels, while in the city it is nearly double its long-term average. Moving to slide 31 and the office development pipeline. Across London, there is 12.7 million sq ft due to be delivered between 2023 and 2025, of which over a third is already pre-let or under offer. With deliveries concentrated this year, the medium-term pipeline is currently expected to be considerably below average. In terms of demand, London is well-recognized as a leading global city with broad appeal to a diverse range of occupiers. Positively, we're seeing growth in emerging sectors such as AI, life science and digital health, fintech, and education. There's currently an estimated 5.7 million sq ft of active demand. Some of the current larger requirements are shown here on the slide. Slide 32, turning now to our portfolio lettings. Since the start of 2023, we have seen a noticeable increase in letting activity and a positive shift in sentiment, agreeing 10 new leases with a rent of GBP 14.7 million. As you have heard from Paul, key transactions include PIMCO, who have pre-let 106,000 sq ft at Twenty-Five Baker Street at a rent of GBP 11 million, 12.3% of head, ahead of ERV, or GBP 103 per sq ft average headline. Buro Happold, who have taken 31,000 sq ft at the Featherstone building at a rent of GBP 2.3 million. With an average term to break of 13.4 years, lettings year to date will increase the portfolio WALT. Our leasing activity in 2022 totaled GBP 9.8 million. Included a combination of businesses coming into the portfolio, as well as existing expansions. New leases had an average length to break of 5.7 years. Encouragingly, we are also in detailed negotiations on other space across the portfolio. Slide 33, asset management. In terms of asset management, we completed GBP 29.6 million of transactions, 5.3% above ERV. Activity was well spread between reviews, renewals, and regears. Our retention and reletting rate remained high at 79%. Looking forward, our asset managers have proactively worked to reduce the amount of income at risk in 2023. At year-end, this had reduced to 10% from 15% at June. As the chart on the slide shows, vacancy increased through the year to 6.4%. Excluding project completions, the underlying rate would be 3%. Adjusting for post year-end lettings, the vacancy is now 5%. As we look ahead, we continue to see good opportunity to create value in the managed portfolio. In January this year, we carried out an occupier survey. In total, 41 tenants responded with a combined ERV of over GBP 100 million. In line with previous surveys, one of the questions we asked was how future space requirements compared to their current occupational footprint. As you can see, since we first asked the question in August 2020, there's been a sustained upward trend in the number of no change or increased responses. This year, circa 50% of those asked were anticipating growth in their footprint. Slide 36, turning to key occupier themes and how we are responding in our delivery of the right product. We talked to many businesses across the market, across sectors around their real estate strategies. The flight to quality continues to lead the way. Innovative high quality design, customer-focused solutions, and location are all driving occupiers' decisions. Location and recentralization are themes we have seen return to the London market since the pandemic and the arrival of the long-awaited Elizabeth line. Locations that are central, vibrant, and well-connected are leading the way. Slide 37. We have always been and remain a design-led business. Best-in-class architecture is in our DNA. Volume and light, high quality, yet sustainable materials, generosity and rich amenity are just some of the fundamentals we know matter when crafting unique and desirable workspace. We continue to ensure forward-thinking and innovative design and architecture, which is sustainable and fully supported by our intelligent systems. Slide 38. Whilst best in class design and architecture will always lead the way, we also know that it is about more than just the bricks and mortar. Occupiers are looking for more from their real estate providers. Experience, service, and relationships all contribute to the overall quality that businesses are seeking today. We take a considered portfolio approach in this regard. Occupiers value being part of something bigger, part of a community. We've adopted a members approach where all tenants of our buildings enjoy comprehensive benefits. We've now had DL78 in Fitzrovia for over a year, which has proven extremely successful, and we're delighted that our DL28 lounge in Old Street will open in autumn of this year. Feedback from our occupiers is clear that they place significant value on this type of amenity, and it's formed an important part of discussions on a number of transactions such as Michael Kors at 90 Whitfield Street and Buro Happold. Slide 39. As well as leasing space in our larger villages to flex office providers such as TOG and Fora, an important part of our broader offering is the smaller fitted units we offer. We currently have a total of 27 units let on a furnished and flexible basis, totaling nearly 64,000 sq ft. As you can see on the slide, these spaces clearly embody our approach to beautiful design. As well as looking good, we are also letting them ahead of appraised rents on typical leases of three to five years. We've a further 34,000 sq ft currently under appraisal. I will shortly be handing over to Paul, who will be taking us through our exciting pipeline, demonstrating how we can bring this quality product to life in our future schemes. Before doing so, it's worth noting that we're confident in delivering this quality of product on both new builds as well as retrofits. We know the right product will vary between submarkets and depending on the size of the unit. Whether it be furnished in flexible space, reducing those barriers to entry, shell and core space to allow bespoke solutions or normal Cat A delivery. Our bespoke approach allows us to deliver the right product to meet London's diverse demand within the context of the relevant submarket. We understand that one size does not fit all. On the slide here, you will see various recent examples where we've delivered different but all high-quality space, and where we've seen significant rental growth, moving assets on from notionally grade B space, while significantly improving EPCs. Over to Paul, who'll take you through the development pipeline in more detail. Thank you, Emily. First turning to our 2022 completions on slide 42. We completed three large schemes, as well as a number of smaller refurbishments. Soho Place was a successful project, delivering a 25% profit on cost at PC. The offices were fully pre-let ahead of the RV on long leases. The opening of the Elizabeth line has led to a substantial increase in footfall around Tottenham Court Road station. Usage is up 80%. There has been an increase in the number of genuine inquiries from a wide range of retailers for the striking retail space, and we're in detailed negotiations. At Featherstone, letting progress in the middle of last year was slower than we had hoped, not helped by delays of the upgrade of the nearby Old Street roundabout. The uplift in office occupation and increased footfall around the area towards the end of the year coincided with an upsurge in inquiries. It is now nearly 60% let, with good interest in the remaining space. Turning to retrofits, Francis House delivered a 31% profit on cost, and at 43 Whitfield Street, furnished and flexible lettings were on five year terms and rents significantly above ERV. We're currently on site at two major West End projects totaling 435,000 sq ft, which are, of course, net zero carbon. Let's look at 25 Baker Street on slide 43. This 300,000 sq ft mixed-use development, which completes in H1, 2025, is in the heart of The Portman Estate in Marylebone. The scheme incorporates a beautifully curated new pedestrian avenue and a vibrant retail courtyard, adding to the broader amenity offering. The offices have generous and flexible floor plates over nine levels, with opening windows on all sides to provide mixed mode natural ventilation. Other amenity includes landscaped roof terraces, which provide stunning views across London. The use of Portland stone will produce a building that carries our unique Derwent signature. Not only is it a beautiful building, it has been designed with sustainability at its core. Our current embodied carbon intensity estimate is 600 kilos per square meter, and it will be our first NABERS UK building, as well as being BREEAM outstanding. It's for all these reasons and more that we've secured the pre-let to PIMCO. Now Network on slide 45. Works commenced at the start of the year for this 137,000 sq ft office project in Fitzrovia, and good progress is being made with delivery on target for H2, 2025. Negotiations with our preferred contractor are on track. The building is located just around the corner from DL78, which we expect to be a significant occupier draw. The next slide shows some more images. The office floor plates can be easily adapted to allow for connectivity between floors and changing working practices. There is a large communal terrace which will provide shared amenity for all occupiers, with landscaping that moves away from a traditional approach to a more fluid arrangement of natural planting and walkways. Timber and other natural materials have been used to create warmth through the building. This all-electric development will be NABERS UK rated and BREEAM outstanding. Again, we're encouraged by early interest. Slide 47, pipeline update. In addition to our on-site projects, we have in excess of 1.3 million sq ft of future projects. The next projects are 50 Baker Street, which is subject to planning, and Holden House, where we are refreshing the existing consent. They are both due to commence from late 2024. Old Street Quarter, which could start from 2027, is an area of London we know well and has the potential to extend the Old Street area further north. 50 Baker Street on slide 48. Our plans for this island site, which we own in a 50/50 joint venture with Nazari, is for 240,000 sq ft, offices with a unique 135 m Baker Street frontage. The project has been designed with a publicly accessible sitting room at ground floor and provides a linkage with the museum's rear. The designs include a vast roof terrace, shared ground floor amenity, and best-in-class end-of-trip facilities. There will be extensive biophilia and urban green to add to the social draw of the space. The building has an industry-leading low carbon design, which incorporates our intention building infrastructure to help achieve operational energy and cost efficiencies. Old Street Quarter. Currently home to the Moorfields Eye Hospital, our appraisals show this 2.5 acre site has scope for a 750,000 sq ft plus new urban destination with generous public realm, activation at ground floor, and substantial new amenity for occupiers and the local community alike. Early designs incorporate a mix of different scales, with a combination of offices and lab-enabled space to create a truly mixed commercial use campus. This will be the embodiment of our long life, low carbon approach to design, which appeals to a broad range of sectors. Don, London's not just about redevelopment however, refurbishment schemes have been an important part of our strategy. Slide 50, and further portfolio opportunities. Over the coming years, we expect refurbishment to form an increased element of our overall CapEx. Part of this reflects EPC upgrade works. Here are some examples from some larger buildings in our core villages, where clever and creative refurbishment should result in really good uplifts in rent. To summarize on slide 52, occupiers are becoming increasingly selective with the West End ever more in demand. The forward supply pipeline is constrained, and despite elevated availability, the majority of this is secondhand space, which is sticking in the market. Large businesses are engaging earlier on pre-lets. 2022 was a year when the macro dominated the micro, but confidence is returning. A number of buildings across London are reported to be under offer, occupational demand is strong for the best space in the right location, including for our furnished and flex unit, flexible units. Since the start of the year, we have sold one building, are pleased to sign GBP 14.7 million of new leases. We have a high-quality portfolio are delivering best in class developments. Our decision to retain our recent schemes for longer has supported our outperformance, we have a strong balance sheet, should opportunities arise. Thank you. We're gonna hand over for Q&A. I think we'll start with the room first before going to the telephone lines, then of course the webcast, where John will ask the questions. Firstly, anyone in the room? Miranda. Miranda Cockburn from Panmure Gordon. Could you just give us a little bit more granularity on that 1.3% ERV growth in terms of the range that you saw? Were there some that were significantly negative, some positive? Also following on from that, you know, your north of 3% ERV growth forecast for the next year. Again, how do you see that range? If you look at the lettings, obviously the new lettings last year, they were significantly above ERV. I think the newer buildings were up 2.5%. On average, it's 1.3%. There, of course, were some assets that were below growth, but there are opportunities for the future. There are some buildings we're just quite happy to let relatively cheaply to retain development opportunities going forward. We expect that to continue, expect the newer buildings to continue to outperform. I think, you know, our guidance of 1.3% was bang in the middle of, you know, our performance of 1.3 was bang in the middle of our guidance. Nigel, do you wanna add some flavor? Yeah. I mean, if you take, you know, we've divided that banding there, and the sort of higher value properties, sort of the Charlottes and the sort of 60 Whitfield Street, which is long-term. You know, their range was sort of up 5%, that sort of figure. If you look at the sort of poorer quality, although I say there's, you know, there's the potential there, like the Oliver's Yard. They're below GBP 1,000 a foot. They probably were down 5%. You've got, the spread is probably 5%, you know, 5% to 5%. Because of the weighting of the quality of the portfolio, you get that sort of you know, 1.2 overall. That's sort of the range. It sort of calls for the strategy of keeping the better buildings for longer, but also keeping some opportunities for the future. The Oliver's Yards and the Greencoat and the Farringdons, where we, you know, currently they may not be outperforming, but they will in the future. If you look at the sort of rents we're getting in Farringdon and they were getting GBP 50 odd, why shouldn't they be in the GBP 70s and GBP 80s going forward? Yeah. The, you know, the pipeline's got opportunities. Who's next? Oh, hi. Thanks. Yeah. Hi. Max Nimmo at Numis. Just to kind of follow up Miranda's question there. Given where we're sitting today and everything you've said about the supply crunch that's kind of coming in 2024 and 2025, does that make you feel more confident about that range of that -5% to 5%, should shift up? I know you're not in the business of giving a 2024 ERV guidance, it sounds like from what you're saying anyway, that things certainly should be moving in the right direction with that whole banding. I think it's time for some rental growth. Let's be honest about it. You know, it's been sort of relatively small for a few years. You know, with the quality of portfolio and the depth of demand we see, I think we should see some good growth this year. Some good growth for next year. Confidence certainly seems to be good. You're seeing a lot of inquiries, aren't you, Emily? So. Yeah. There's been a shift in sentiment this year, and I think, I think it, again, to the point of averages, you know, the West End is where the crunch really hit. I think you'll see better growth in the West End, but across the board we're relatively positive. We're sort of endorsed by, you know, PIMCO, 12.5%, 12.3% above ERV, 25. People are feeling, you know, people are busy. People are feeling that they need secure great space. What was also interesting for PIMCO, I think, is they've got about 60,000 sq ft at the moment. They're taking 100. It's, it's not only better buildings, but also some growth. I'd also just add that because we've been clearing the portfolio up, the sort of tail has sort of gone. Th e poorer quality is not that poor. You know? It is the likes of Greencoat, it is the likes of Oliver's Yard, where there's probably a 20%-25% uplift if you did the scheme. You know, they're decreasing, but I can see the rate of that sort of leveling out, you know, offering value. Great. Thanks. Just a follow-up as well on the kind of forward-looking IRR hurdles now that we're in this new sort of environment. How has that broadly changed where we are today in terms of o n refurbishments and on developments. I mean, just the headlines. You know, profit on costs, I think we target 15%, we generally do better. Don't forget that we're looking at today's cost, tomorrow's cost, today's rents, only development yield to what? Late fives, maybe 6%. We tend to sort of do better. Yeah. Yeah. I mean, we used to be 20, but you'd achieve better. The target was probably 15, but you'd achieve better. If you look at the matrix at the back, on, you know, the two developments on site, we show... I think that's currently showing on current value as 11% profit on cost. You then let the PIMCO at, you know, GBP 5, GBP 10 more. If you look at the sensitivity there, you're at the higher end of the sensitivity. You know, the value is generally, it's a spec yield, it's a spec building, they're quite cautious. Nigel, Damian, on finance, you seem to. I mean, we're obviously well-financed. I think we've got very little refinancing to do for the time being. Comfortable with what we've got to spend. The recycling model carries on. We sold quite a bit in the last couple of years, as we've said. I think we're in a good place to fund the pipeline. It's interesting to see our finance cost didn't go up over the year, that's the benefit of fixed rates. We've got this, I mentioned it in the talk, we've got a nice little GBP 75 million interest rate swap, which is unused, as well as cash in the bank. We've got a good place from which to invest in the portfolio with decent visibility for the time being. Great. Thank you. Thank you, Max. Any other questions? Yes. Oh, sorry. Yep, please go ahead. Can you speak up a little bit, please? Press the button. Yeah. Sorry. You can hear me better? Yeah, that's better. Just maybe a follow-up question on Baker Street. Does that mean with the premium that PIMCO has let, does this mean the ERV for the scheme is actually gonna move up for your scheme? Maybe just generally for the market, have you started to see impact from the tech industry? I know it's it makes a lot of the headline, but given your exposure to some of the more periphery areas where techs have exposure, any, you know, any color on the market that you could see? Well, I mean, if you look at the Baker Street, you know, we're, you know, we're very happy with the letting we've done. Well above ERV. We've got, you know. We think 2025 is going to be a pretty good market for landlords, I think we'll feel quite confident about waiting if need be, I would expect the rents to grow. I think Emily would agree with that. Yeah. Yeah. I suppose in respect to tech, firstly a tech, what is tech? We haven't got much big tech. If you look at our tech, it's growing tech. You know, I think the headlines will probably, again, beware of averages, is if you know, the big tech have expanded, probably overexpanded with numbers of people. If you look at the growth in our areas of the white collar, you've got some tech companies taking space, growing. I think you've got to be very careful what you're, how you define tech. It's not just sort of Meta and Google and the rest of it's a whole range of different occupiers. Emily. Yeah. Most of the chunky downsizing is the FANGs, and some of that is already in the vacancy stock today. Some of the Meta space is already in that vacancy that we're looking at. In terms of the locations, a lot of the big chunks are actually in the northern corridor, surprisingly. The small to mid-range tech companies, a lot of them are still in growth. As Paul says, it's a bit of a mixed bag. It will feed into the overall vacancy, so we won't be immune to that. At the moment, the direct impact is limited. We just added that point. The great thing about London is the variety of occupiers who are looking to take space and the growth of other sectors. Emily touched on it in her presentation. If you look at actually where the growth is coming from, professional services seem still incredibly busy. London's much more than big tech. We got any questions on the telephone? Yes. One question. Should we take that? Ladies and gentlemen, if you wish to ask a question via telephone, please press star followed by one on your telephone keypads. If you change your mind and wish to remove your question, please press star followed by two. When preparing to ask your question, please ensure that your phone is unmuted locally. To confirm, that's star followed by one to ask a question. The first question on the phone is from Mark Moseley, Bank of America. Your question please. Thank you. Very good morning all. Good morning. I have two questions on my side. The first one is, could you give us the marginal cost of debt you are currently experiencing? The second one would be about what sort of property risk premium do you think investors are happy to pay over the risk-free rate for some of your of your buildings? I'm just wondering why you refer to 0.8% true equivalent yield to 2014 and not 2011, 12 or 13, where interest rates were exactly at the same level where they are now, which would mean that the true equivalent yield will have to reach 5.5%. Thank you. I think we heard some of that. Was it debt? I think the first question was about our marginal cost of debt. Yeah If I heard that right. It's a bit complicated, I'll answer it in three ways. First of all, we're sitting on cash, which is yielding up to 3%. If we spend that, That costs us about 3%. I mentioned earlier, we have a GBP 75 million interest rate swap at 1.36%. The cost of the first GBP 75 million of revolving debt is something around the low 2s when you take into account the non-utilization fees that we're already paying. Once we go into floating rate debt, it's nearer five. It's a bit of a complicated answer, but, that's how it looks at the moment. There was a question about yields as well? What sort of price premium do you think investors are happy to pay right now for your buildings above the risk-free rate? I think what our investors are happy to pay every month. Yeah. As I mentioned, we are actually getting inquiries. Go back sort of 18 months, two years, you'd have 20, 30 inspections until you can only have one buyer. There is a pool of investors out there that, if they can get an opportunity, just like we sold to on Charterhouse Street, they will pay a reasonable figure for it, for a, you know, a closed market. It's probably different at the very big end of the market, where it's a smaller pool. We are getting inquiries asking about, "Will you be selling stuff and can we come and have a chat?" I think the momentum is just starting. You know, we hear buildings are under offer, but we feel the momentum is picking up again. London offers good value compared to other European cities. Yeah. Yeah. You know, construction prices are, you know, is making it harder, you know, returns harder, so there may be a bit less development. I think the question was about risk-free rate. Did I hear that right as well? It was a bad line, I'm afraid, so it was. Yeah. I mean, clearly we were in a slightly different place in sort of October or so last year when the so-called risk-free rate was up in the fives in some cases. As we all know, it's come back down again. It's moved up a bit in the last few weeks. It does feel as though yields in the U.K. have settled down quite a bit since that point. Looking at the equivalent yields on our portfolio, it's almost 5%. I think what we'd like to see, and we've talked about this already on the calls, is some proper rental growth at the top end of the portfolio where the high quality product can really sing a bit. That will really, I think, make the returns really interesting again. Thank you for your question. Thank you very much. I hope we answered the question. It was a bad line, so hopefully we answered your question. If not, we've answered your other question, which is fine. 2 more calls. Next call, please. Next question is from the line of Paul May with Barclays. Your question please. Hi, team. Got a couple of questions. Hopefully the line is clear. You meant you've taken yield expansion of 38 bps, which I think compares to Prime expansion over the year of sort of 40-75 basis points. Appreciate your higher yielding to start with, but Prime did have stronger rental growth. I think sort of West End Prime's up 15% over the year. What makes you think that over the next 12 months that the yield expansion will ease from here? I appreciate that means that you still expect further yield expansion, but, just wondering what your thoughts were there. I think what helps the interest rates settling a bit helps the situation. There is still a weight of money looking to invest in, and I think very much Q4 was on pause. People have come back, you know, the GBP 33 billion looking to invest in London. Private wealth looking to invest as well. I think London seems a great place to invest your capital. you know, it's. I think still money coming in. I feel, we feel in the pressure is easing. I think what's been interesting is the correction, call that, happened quite quickly. If you think, go back to the GFC, and I don't... You remember that, Paul? But actually, that took a bit of time, when actually the change has been quite quick, which is good. The values have caught up very quickly. I think the view is London still very much remains in demand. The letting market is good, and given the weight of international money, we just think that interest rates should remain, you know, an increase should be pretty limited. Nigel, do you want to add anything to that? No, I think, I think that's a good point on the sort of movement of the values. If you look at sort of the last two cycles, we had a movement out in, you know, the Brexit. We had a yield movement out, and the GFC, we had a yield movement out. They were very much back-loaded by reactionary. This feels very much front-loaded and on the front foot, which I think is encouraging. That I think in itself is gonna help the market, a quick reprice. This feels more like a correction and then get the correction out of the way, and we can move forward. Thank you, Paul. Thank you, sir. The second one on the take-up and you mentioned obviously leasing progressing well. Our understanding is that's still very much at the top end of the market. I think if you look at last year's take-up was down on sort of pre-COVID levels, down about 11%, I think on the sort of 2014-2019 average. Just wondered how you're seeing that take-up in, should we say the probably not top end of the market, the non-Prime. I appreciate that's been more difficult. Is that still the case, or are you starting to see that leasing up now, over the last sort of few months? I mean, firstly, I would say there's definitely a flight to quality and people are prepared to move, cost of moving, expand for the best buildings, and I think we see that accelerating. I think the reality is that some of the second-hand space is sticking, you know, will continue to stick. Actually, if we look across our portfolio in the retaining stuff, again, it's pretty busy. I think that may be also a little bit location driven. I firmly believe the West End and Farringdon, those sort of locations will do better in the, for the more secondary space. Whereas, you know, spaces maybe out of town or maybe further out of London might be more difficult. Emily, do you want to add anything to that? Yeah. I think encouragingly, we've seen steady increases from 2020 up to today in terms of overall take-up. I think the average is an important point here in the sense that the West End is obviously 20% above LTA against the city, which is only 3%. It is slightly skewed at the moment. I think we've seen an increased momentum positively since the sort of pause in the COVID times. Looking ahead, I think we're still anticipating that take-up to be growing in the coming year. Thank you, Paul. Well, I think we've got one final call. Robbie? No, he's got one more. One more call? Next call, please. The next question is from the line of Pieter Runneboom with Van Lanschot Kempen. Your question please. Morning, Peter. Hi, team. Morning. Hi. Morning. Team, thanks for taking my call. I got one question on your capital or capitalized interest. What interest rate are you using for this? Is that your average cost of debt or the marginal cost of debt for the development? We use an average cost of debt, and we include fees as well as interest rates in that. It's a roughly mid-4s level. Okay. So the capitalized interest rate using now is at a mid-fours? Yeah. Oh, okay. That's perfect. Thank you. Thanks a lot. No more calls online? No? There are no further questions via phone at the moment. I think we've got one call for our webcast. Jon Hall will read that out. Jon, over to you. Hi. We have a question from Joris Jansen. What are the rent frees on new lettings? That will be PIMCO and Buro Happold. They're about three years for both of them to 15 years. I think 37 months. PIMCO is 37 months on 15, and Buro Happold is 24 plus 12 split around the break 15, with a 10-year break. They're pretty much in line as they've always been. I think that wraps up for today. Thank you everyone who attended. I know it's a busy day for everyone. We're all around. If anyone's got any further questions they want to raise, the team is around. You can speak to Robbie if you want to, and, for questions. Thank you for all coming today and, thank you for listening. Have a good day. Thank you. Thank you.