Good morning, everybody. Welcome to our results presentation. There are a few seats scattered around if you don't want to stand at the back. There are four in the front over here if you wanted. Thank you, everybody, for coming. Great to see so many of you. We've got a lot to get through, so I'll crack straight on. I first of all want to welcome Jayne. Many of you will have met Jayne. Jayne took over as CFO about five weeks ago. She's had a cracking start, but these are her first results, so go easy on her. Okay. What I'm going to do, first of all, is start by summarizing the key messages we'll be giving you over the next 30 or so minutes. This year has been all about us executing on our growth strategy. We'll tell you about our excellent operational performance, delivering record leasing well ahead of target, with acquisitions made at discounts and sales at premium, and creating more prime spaces into a Central London market starved of such quality. As we think about the next few years, we'll explain how we have both strategic and financial flexibility should we see a macro-driven downturn. Absent that, we are well set to deliver both strong income and value growth across our portfolio, and we fully expect to deliver accretive total accounting returns. As ever, we have a full agenda for you for this morning to help tell this compelling story. I'm going to start with a reminder of our progress against our very clear strategy. Jayne 's then going to take you through the results and what to expect next. I'll then address our market opportunity, look at capital allocation, and conclude with our outlook before opening the floor up to you. As ever, we have the full senior team here to help answer questions. Let's start with our growth strategy. You will remember our key strategic themes shown here on the left. We've made excellent progress against each throughout the year, doing exactly what we said we would do. First, Prime Central London. It remains the largest city economy in Europe and is growing faster than the U.K. overall. To really benefit, you need to be in the center, which is where 100% of our attention is focused, and we concentrate on the best only, where the outperformance against the rest is accelerating. Second, we create and manage premium HQ and flex spaces. Their quality has enabled us to deliver a record leasing year with deep demand for our space, signing up customers at rents well ahead of ERV. Our rents are still rising, and even after substantial growth, we argue that they remain affordable, especially given the price inelastic nature of many premium customers. Third, contracyclical capital allocation. Never more important than in volatile conditions such as we have today, and delivering on the promises we made at the time of our rights issue. We've continued to buy well, almost GBP 500 million, including CapEx, since our rights issue, at a significant 60% discount to replacement cost. We've been developing some of the best spaces anywhere in Central London, delivering into a market starved of such quality, and their valuations were up 22%. We've sold out of completed business plans, as we said we would, GBP 490 million at a 2% premium to book value. Fourth, driving innovation. Leading the market with world firsts in our circular economy activity, and with our award-winning CX teams delivering exceptional experiences and an industry-leading Net Promoter Score. All of this activity always supported by a strong balance sheet and low leverage. Liquidity today is high, and LTV is where we want it to be. As we well remember from the many macro crises we've navigated through over the years, having financial flexibility gives us the luxury of strategic options. However the macro story unfolds, investing for growth and/or returning excess capital to shareholders. Finally, strong EPS and NTA growth. We're delivering here, too, with both measures ahead of consensus, and we've raised the dividend. Looking forward, we are on target to deliver 3 x EPS growth over the medium term and a 10%+ return on equity this financial year, along with a three-year annualized ROE well ahead of our cost of capital. A strong strategy that is right for today's volatile world and a business delivering on its promises. Turning briefly then to our excellent operational performance. As you can see on the chart, our leasing has been outstanding, with a record GBP 70.9 million let, 10.3% ahead of ERV, with the fourth quarter the strongest at a 15.8% beat. We are maintaining last year's run rate into Q1 this year, with no discernible impact from the current hostilities in the Middle East. Rent roll was up 46%. Rental values were up 5.8%, led by Prime offices, up more than 7%. Vacancy was better than forecast, as was our fully managed customer retention at 64%, where AI-led customers now account for some 27%. We made attractive acquisitions at a 70% discount to replacement cost, added only GBP 590 per sq ft, whilst our GBP 490 million of premium sales closed at more than twice that, at over GBP 1,200 per sq ft. We made strong progress against our development and our refurbishment activities, finishing 380,000 sq ft on time and on budget. From here, we've given ourselves a great platform for further growth. We will be crystallizing sales of more than GBP 1.2 billion of stabilized assets, developing to generate organic surpluses of between GBP 260 million and GBP 430 million, and generating significant organic income growth up 95%, with a 2.1x increase in our fully managed net operating income. All of which will, of course, combine to deliver significant NTA and earnings growth from here. More on all of these opportunities in a minute. First, over to Jayne to look at our financial results. Thank you, Toby. Morning, everybody. Thank you for joining us today. I'm pleased to be presenting my first set of results for GPE. I'm very much looking forward to taking you through our numbers and what has been a great year for the business. I've been with the business now for a couple of months, and I've received a fantastic GPE welcome. A great business with great people and an outstanding product. What has particularly stood out to me over this period is the discipline with which the strategy has been executed and the consistency of performance driving both earnings and value, supported by the quality of our portfolio. We are focused on long-term returns, also have the strategic optionality Toby referenced earlier, which emphasizes the resilience of our business. Turning first to our financial results. These are delivering upon our growth strategy of driving both income and value. Our earnings per share is up by 63% to GBP 0.085 ahead of consensus. This, in part, is as a result of our record leasing year and growing our fully managed space, including the leasing of 100% of Wardour Street within two months of completion, as well as the full year benefit from Alfred Place and 6 St. Andrew Street. Our dividend was GBP 0.082 per share, an increase of 4%, which is a reflection of the confidence in our earnings growth, and this is fully covered. Moving on to our value growth. We saw a like-for-like valuation increase on our portfolio of 4.3% as our assets continue to outperform the wider office market. Our focus on high-quality buildings continues to support the demand for well-located, high-specification office space in Central London. All this hard work has increased our EPRA NTA to GBP 5.24 per share, an increase of 6.1%, which is also ahead of consensus. We have maintained our financial strength, and as we set out last year, we have transitioned to a net seller with GBP 490 million worth of sales, which included 1 Newman Street and Wells Mews. This has contributed to the reduction in our LTV from 30.8% to 28.6%. Liquidity increased to GBP 412 million, an improvement of GBP 36 million, providing good headroom across our facilities. With strong ERV growth of 5.8% in the year, we continue to make progress towards our objective of delivering a return on equity in excess of 10%, achieving 7.9% this year. We turn to our property valuation in more detail, you can see from the table on the left that overall, we have seen both valuation and ERV growth of 4.3% and 5.8% respectively. We dig a little deeper, you will see that offices, which are 87% of our portfolio, have seen the highest valuation in ERV growth. Whilst our retail assets have not fared quite as well, this represents only 13% of the portfolio. The fully managed assets have seen valuation growth of 4.4%, whilst the stabilized portfolio grew by 3.6%, and the development saw strongest growth at 22.2% with a GBP 82 million development surplus captured within the valuation, which is not easy when construction costs are still rising. Today, our topped-up initial yield is 4.8%, and our true equivalent yield stands at 5.6%. On a reversionary basis, this rises to 7%. As you can see, much higher at 9.8% on a share price implied basis. As you'll hear many times today, it's the best versus the rest. 73% of our portfolio is at an EPC of A or B, which saw valuation growth of 6.4%. However, the assets that are not in the 73% are buildings which are being repositioned, and they will ultimately have an EPC of A or B, and their value will realign accordingly. In addition, 73% of the portfolio has a capital value in excess of GBP 1,000 per sq ft. It's these assets that have also seen the highest increase in valuation at 5.9%. The West End continues to outperform the rest of London. The 66% of our portfolio here saw a valuation increase of 6%. All of this demonstrates that we have a portfolio positioned for growth, which, as you can see, is reflected in our impressive organic rent roll growth of 46% over the last 12 months. The rent roll now stands at GBP 153 million. Absent sales, we expect this to continue to grow by around GBP 42 million over the next 12 months, with the leasing of vacancy and capturing of reversion adding around GBP 16 million, and then our development and refurbishment program delivering a further GBP 26 million. Looking further ahead, with the completion of our on-site developments, including The Delft and Whittington House, and 10% rental growth, our potential rent roll would almost double from where it is today to GBP 299 million. As you know, we are also recyclers of capital, and once our business plans are complete, we are often keen to move them on. Assuming GBP 1.2 billion of sales over the medium term, rent roll would reduce by approximately GBP 60 million over the same time period. What does this mean for our earnings? Ahead of market expectations, our earnings per share have grown by 63%, from GBP 0.052-GBP 0.085. We expect further growth over the next 12 months, targeting an EPRA EPS of around GBP 0.10, an increase of 20%. Beyond this, whilst the journey may not be linear, the growth in rent shown below shows that we are well on our way to tripling our earnings from April 2025. As you can see from the purple bar, fully managed is set to become a major contributor to rent roll. It's this part of the portfolio that continues to go from strength to strength. Looking at the charts, you can see we have grown our net operating income over 3 x in the last two years, from GBP 9 million to GBP 28 million. This is ahead of our target timeframe due to the excellent work of our team to complete refurbishments and lettings in short order. Our recent completions, including 170 Piccadilly and Wells Street, will deliver a further GBP 6 million. Beyond this, we're on-site with five fantastic schemes, including The Howlett and The Courtyard. These will grow our NOI by GBP 16 million, with a further pipeline of six refurbishments, including 175 Piccadilly and the completion of Kent House, providing a further GBP 8 million of NOI. This organic growth over the medium term will more than double our NOI to GBP 58 million. The service profit on this growth is also generating additional value on the portfolio of around GBP 150 million as the space is completed and let. This remains a fantastic organic growth opportunity for the business. Our ambition is to continue to grow this product, we are targeting a GBP 100 million NOI post future acquisitions of around 375,000 sq ft of space. Indeed, as you can see from the blue circles, that fully managed is becoming a much larger contributor to our P&L, rising from just 8% of gross profit two years ago to 28% today, and we expect this to be more than 40% in the future. We also continue to drive value growth from our developments. We have a GBP 590 million CapEx program with a gross development value of GBP 1.6 billion, mainly in the West End. Highlighting the dark green bars, we are currently on site with six schemes at various stages of completion, with a further GBP 223 million of CapEx to come. The light green bars show our pipeline of a further three schemes, which have a CapEx of GBP 367 million. If you assume 10% rental growth, we expect to deliver surpluses on these schemes of GBP 260 million. There is also the potential for further growth from this program. For example, if we see further rental growth over the next few years, 20% growth would equal a surplus of GBP 330 million. Illustratively, if yields were to compress by 25 basis points, the surplus would increase to GBP 427 million. Our growth is underpinned by our financial strength. Our team have been busy putting in a new GBP 525 million ESG-linked RCF and extending our existing GBP 150 million RCF with our partner banks. These facilities give us liquidity certainty and no refinancing needs until October 2028, particularly relevant during these volatile times. Moody's reaffirmed our Baa2 investment grade rating, and we have significant headroom against our covenants. Looking at the top right, our robust debt metrics highlight the strong position we are in with a low LTV at 28.6% and available liquidity of GBP 412 million. This means we can be agile in an ever-changing market. Our weighted average debt maturity has increased to 5.4 years, and our weighted average interest rate has reduced to 4.3%. Altogether, this puts us in a great position as we move forward through 2026 and beyond. This chart is an illustrative pro forma of our loan-to-value through the cycle of our existing and pipeline activities. Our onsite CapEx, near-term sales of approximately GBP 200 million, and development surpluses show that LTV would fall to 28.1% in the next 12 months. Whilst the further pipeline CapEx, development surpluses, and rental growth push the loan-to-value up to 32.5%, we would expect to realize sales of a further GBP 1 billion over the medium term. This reduces our LTV and gives us flexibility and options around further acquisitions and/or the return of excess capital to our shareholders, as we have done previously. Bringing all of these components together, as we look forward, we are excited about the opportunities it presents. We expect to deliver a further 20% earnings growth in the next 12 months, as we capture our 95% organic rent roll growth potential. As we grow, we will drive both operational and corporate efficiencies through economies of scale and technology. Our developments will deliver surpluses of GBP 260 million. As we expect to remain net sellers of assets, we will crystallize these surpluses with anticipated sales in excess of GBP 1.2 billion over the next few years. Supporting this will be our disciplined approach to capital and liquidity management. We have a flexible debt book with the ability to support future growth, and we will maintain our 10%-35% LTV range through the cycle. As we capture the prime rental growth opportunity and complete our development pipeline, we are on track to deliver an above 10% return on equity and maintain our progressive dividend policy. In summary, this is a business well-placed to continue with its growth strategy despite a backdrop of macroeconomic uncertainty, and I'm very much looking forward to being a part of it in the years to come. With that, I will hand you back to Toby to talk through the market. Thank you, Jayne. Let's turn and look at our market opportunity. The first point that I want to make is despite all the macro uncertainties around today, leasing conditions in our core markets remain strongly supportive, and we think that best rents are set to rise further. Let me tell you why. In short, it's because demand for space is materially outstripping supply. In fact, demand is at record levels today, perhaps driven by the expectation of further growth in office jobs, shown by the blue box on the right, expected to grow by a further 170,000 by 2030, and remarkably, up 33% since Brexit in 2016. The green bars show how this jobs growth has been converted into increasing take-up, now well ahead of the 10-year average, as well as much stronger levels of active demand, shown on the right, up 13% in the last 12 months. Today, it's circa 40% ahead of the long-run average. More of these companies are looking to expand than contract, 47% versus 15%. All this demand is colliding with a supply drought of new offices that remains acute. Bottom left, the bars show the history, and as has been clear to us for many years now, this situation is not going to change anytime soon. Indeed, if you take the annual average speculative supply for the next four years, divided by the long-term average take-up of new space, we are some 53% short every year out to 2030. Remember, the vacancy rate of Grade A space in the core is already virtually 0. It's only 0.3% in the West End. It's no surprise then that we think there's more rental growth to come, shown on the chart bottom right, with prime space to continue outperforming strongly as it has done since the end of the pandemic in 2021. Despite this growth, we think these rents remain affordable, as they still represent only a fraction of the average London business' salary bill, some 7% on average. Growth in prime, absolutely playing to our strengths with our 100% core locations and 91% next to an Elizabeth line station. Turning then to look at the investment markets, where the story is a mixed picture and a little less clear-cut. We are seeing liquidity for prime assets despite macroeconomic volatility. Looking at the chart top right, you can see that overall, real capital values have been flatlining since our 2024 capital raise, with the nominal up 6%. Our own assets have been faring rather better, up 8.1%, driven by our focus on the best locations and the rental growth I've just described. Meanwhile, yields in both the City and the West End, shown bottom left, are stable. Although we would argue that this hides the widening bifurcation between, on the one hand, prime liquid assets, where there is some downward pressure, and poorly located ex-growth assets on the other, that simply aren't selling and remain overvalued. Helpfully, there are signs of a recovery in investment volumes from 2024's lows, shown by the green bars, with 2025 up 50% versus 2024. As shown by the pink bars, the number of larger transactions was also up strongly last year by 118% for deals of GBP 100 million or more. We expect this momentum to continue as equity demand for London assets is up again, now standing at more than GBP 25 billion. This matters to us as we prepare some of our larger prime stabilized assets for sale. Plus, of course, with our healthy liquidity, we stand ready to take advantage of these volatile conditions to acquire future pipeline opportunities at discounts, as we have been over the last two years. To sum up then with our market outlook, which strongly supports our strategy of focusing on the best assets and in prime locations only. For rents, whilst macro uncertainties have increased since our interims, affecting confidence in business investment, the combination of decent demand and the continued supply drought have enabled us to deliver office rental value growth at or above the range we set out in November, as shown by the middle column, bottom left. These conditions also allow us to maintain our guidance of +4% to +7% for offices this year, still with a notable outperformance of prime versus secondary quality space. Looking at yields, heightened political risk, and a less accommodating interest rate environment will continue to have a dampening effect on yield compression in the near term, beyond that, it's clearly hard to read at present. That said, evidence of deals transacting right now supports our long-held view that the best, most liquid assets will continue to attract more downward yield pressure than the rest. In this context, let's turn and look at our capital allocation over the past year and consider what's next. You'll remember this, our contracyclical capital allocation model. The blue line shows the long run of real office capital values in Central London. The green bars are net acquisitions above the line, net disposals beneath. We raise capital, the green circles, to acquire discounted opportunities when markets are distressed, as was the case in 2009 through to 2013, and again in 2024. We then reposition these assets into the inevitable supply crunch before selling completed HQ business plans as markets recover and returning excess capital to shareholders, shown by the pink circles. Last cycle, following more than GBP 3 billion of realizations, we returned in excess of GBP 600 million to shareholders, more than twice the capital that we raised from them. Looking at the current cycle, as you can see on the right of the chart, we transitioned over this year from a net buyer to a net seller, shown by the green bar. We've been selling stabilized assets, benefiting from rising prime rents, shown by the blue dotted line. We've also bought well, taking advantage of market weakness for non-prime buildings in prime locations, buying repositioning opportunities off the orange line at sizable discounts. Our model then is alive and well, and we are successfully exploiting the best versus rest bifurcation that we've talked about. What next? As Jayne highlighted earlier, we expect to be a net seller this year too, and let's turn and look at some of the detail, but I'm going to start with acquisitions. Six deals done since the rights issue in 2024, all in the West End, for a total of GBP 231 million, or only GBP 756 per sq ft, and at an average discount to replacement cost of more than 60%. Including CapEx to deliver the business plans brings the total to just short of GBP 500 million, and once completed, we can expect them to deliver stabilized yields of up to circa 7% and ungeared IRRs of up to 15%, and that's before any market yield compression. Plenty of opportunity for income and capital growth. Now, here you can see our Alfred Place cluster. I spoke about The Gable acquisition in November, adding to our pipeline, since which we bought South Crescent for GBP 51 million, paying only GBP 708 per sq ft or a 67% discount to replacement cost and giving us a running yield of 7.1%, with the offices let at only GBP 67 per sq ft until August 2029. The business plan has optionality, either to regear with the existing customer at expiry or undertake a full refurbishment to create a prime HQ building, adding area and radically repositioning the space to a much higher quality, only some 400 yards from the Elizabeth line and, of course, hitting all of our target return metrics in the process. Attractive deals at decent discounts and with good upside to come. We've also had a good year delivering profitable disposals crystallizing completed business plans. Four deals for GBP 516 million at a GBP 1,200 per sq ft, more than twice the price of our acquisitions, and in aggregate at a 2% premium. I told you about Challenger House in Newman Street at the interims, since which we've sold wells&more in Fitzrovia on the left, and 103 Regent Street on the right. In both cases, we dealt at or near record capital values and crystallizing accretive, ungeared whole of life IRRs. As we finish business plans elsewhere in the portfolio, there's a lot more to come, circa GBP 200 million near term and a further GBP 1 billion + in the medium term. Let's have a look now at our HQ development activities. We have three schemes on site and have made good progress this year with their net valuations up 22%. At Duke Street, St James's, we're now 100% pre-let ahead of completion in the autumn, and all our performance numbers are good, with a 37% projected profit on cost and an ungeared IRR of more than 30%. Similarly, at The Delft in Southwark, progress has been strong and we pre-let 40% to data analytics company Quantexa in January. Our development yield is almost 8% and our profit on cost is 27%. Back in the West End at Whittington House, bottom left, we started this major refurbishment last month and already have leasing interest for what will be a wonderful building and a healthy development yield and profit here, too. Taken together, we're generating a sizable 152% ERV increase and a further circa GBP 60 million of surplus to come, assuming 10% rental growth for the currently unlet space. They're all prime with exemplary sustainability credentials and are pre-letting well, giving us strong upside potential. Wrapping up on our program, here you can see our 11 major schemes totaling some 700,000 sq ft across 27% of the portfolio. They're all in prime locations, all best-in-class product, delivering into the deep supply shortage, meaning they have strong pre-letting and rental growth prospects. Finally, on our capital allocation, we've continued investing in our market-leading flex offer with record fully managed leasing. GBP 40.9 million of lettings, 7.7% ahead of ERV and outperforming against all our main operating targets shown on the right. 6.7% yield on cost versus our 6% target, 64% customer retention versus our 50% target, and a 37% service margin, nearly double our 20% hurdle. Over the last 12 months, we've delivered three new buildings, taking our flex portfolio to more than 650,000 sq ft, and they are already 85% let or under offer, beating our underwrites. Of course, we have significant further growth to come. 136,000 sq ft of new deliveries in the next 18 months, some of which are shown on the right, and generating gross rents of some GBP 100 million over the next three years. We'll be working hard to capture operational efficiencies. For instance, at an 8.5% yield, every GBP 1 we save in OpEx translates to an effective valuation increase of GBP 12. We also have a supportive market with broadening demand. Today, there are more corporates taking flex space, 47% up from 13% in 2020, and often taking larger spaces, too. Demand for 6,000 sq ft units or above has more than trebled since 2023. As you know, our fully managed spaces are delivering a sizable net income beat, more than 40% over the more traditional ready-to-fit product. It's working well and there's much more to come. Bringing it all together, this is a portfolio full of growth opportunity. Our HQ developments at the top of the stack are all prime, majority in the West End and will deliver healthy prospective profits. Our active portfolio management assets, some 56% of the book, are the engine room of the business, with numerous angles for rent and value growth. For example, through delivering refurbs or capturing our growing reversion. Their valuation remains undemanding at just over GBP 1,100 per sq ft, with limited CapEx requirements, all in prime locations. Of course, they include our flex assets, now around 32% of our total book, full of the growth potential that I've just described. Finally, shown in yellow is the stabilized portion of the portfolio where we will continue selling out of completed business plans at higher capital values per square foot. We're aiming to realize more than GBP 1.2 billion over the next few years, and we will employ our usual discipline in deciding the most productive use for the proceeds, either back into the pipeline for income and value growth, or accretive acquisitions with IRRs well ahead of our cost of capital, or a return of capital to shareholders where it exceeds to our needs, or for that matter, a combination of all three. Lots to do as we execute our plan to deliver the substantial growth available to us. Wrapping up then with our outlook. In short, absent a macro-driven downturn, we have more growth to go for doing what we said we would do. It's clear we have a market full of opportunity. London remains Europe's business capital. It has jobs growth, which is creating healthy demand, colliding with a severe supply drought, meaning that rents are rising, particularly for the best spaces with a great customer experience. The investment market remains more mixed, again, the best is outperforming and prime yield compression remains a possibility, particularly for smaller lot sizes. Meanwhile, we remain fully focused on executing our growth strategy. First, significant further income growth. Second, sizable development surpluses of up to GBP 1.00 per share. Third, a major sales program of more than GBP 1.2 billion. Fourth, the proceeds from which will go to their most productive use, including a possible capital return of any excess. Always, of course, operating in 100% prime Central London only, never more important than it is right now. All in all, whatever the macro throws at us, GPE is well set and is in great shape. Our operational infrastructure is delivering, our amazing team has deep experience honed over multiple cycles, and is bound together by our collegiate culture, along with our robust balance sheet, all of which will help us capture our strong potential over the next few years. Right. Lots of information in there. I hope that all made sense. We are, as ever now, more than happy to take any questions you wish to throw at us. There are mics going around the room. I've got the members of the executive committee here to help answer any questions as well and provide more color. Who would like to go first? Yes. Good morning. Neil Green from JP Morgan. Two from me, please. On the rental side, you've had good growth and is expected to continue. Maybe I can ask about the conversations you are having with occupiers around rent reviews, how they're going and where they're landing. Secondly, a lot of leasing activity in your portfolio in the market as a whole. Are you seeing that coincide with any softness in incentives, please? Okay. Thanks, Neil. Simon, in a second, perhaps you'd like to address the second of those questions. On the rent reviews, we did, I think, about GBP 30 million of increase, the single biggest of which was in Hanover Square in the year. Within that, there were two principal done so far. We've got a few more to go down there. The largest, our financial services friends in that building, we ended up with a circa just short 50% increase there, so a good result. Bear in mind, we leased the building originally in 2020, so given the growth we've seen, not surprising. For what is one of the best buildings anywhere, you would expect to see good growth from 2020 through to the review date, October last year, I think it was, isn't it? Going forward, we've got a few more to do in that building. Clearly, with the growth that we've seen over the last few years, you would expect us to generate more rent review upside. We tend to generate more growth, that said, from new lettings, because our average lease length is typically less than 5 years, or around about 5 years. We've been, as you've seen this year, with GBP 71 million of new lettings generating the majority of our upside there. In relation to demand for space, Simon, have you seen any softening since the beginning of this year? Yeah. Was the question about softening of incentives, as in they're going out or actually coming in? Going out. Going out. Okay. The answer to that is no, we aren't. In fact, actually the opposite. When you have, obviously, a supply crunch and demand the way it is, as Toby has mentioned, we've seen rental growth. That rental growth is never linear. It's usually you get bumps as you get competition for space, as people actually start to lose out on the space that they were targeting. Over the last sort of two years or so, haven't seen a huge amount of that competition. It's kept landlords and customers pretty honest. You tend to get a customer in place and you do a deal, and they know that there isn't a lot of supply. We know, as a landlord, that, yes, there's good demand out there, but you want to secure that customer. Recently, we have started to see some competition for space. There's an example in the West End at the moment. The Ribbon. It's on Wells Street. It's one of only four buildings in the West End that can deliver over 60,000 sq ft. They've placed the top sort of 35,000 sq ft under offer, rents topping out at GBP 150 per sq ft. In doing so, have displaced two other customers who would have taken space in that building. One of those other four buildings is under offer in its entirety, to Microsoft AI. That's Film House on Wardour Street. These are the kind of situations which then drive not only rental growth, but then you start to see incentives come in. Typically, incentives at the moment are still about 12 months per 5 years term certain, but there are examples of that actually reducing. I would expect us to see a little bit more of that, albeit clearly, a lot of landlords are going to be driven by maintaining high headline rents. If you were to turn around and look at the screen behind you would see the net effective in the West End, where rents, the package to incoming customers has not moved. In the City, if you go forward one, it has come in a tiny bit, as you can see over the last couple of years. Yeah, I just think that the way the market dynamics are at the moment, I think we're going to see a little bit of compression. Yeah. Thanks, Neil. Yeah. Thanks. Jonny Coubrough from Deutsche Numis. It was really useful to have the slide on CapEx and how rental inflation might impact the development gains. It would be useful to also hear how you think over the past couple of years development economics more broadly have trended. Given that divergence that you mentioned between prime and non-prime capital values that you're effectively trading up has widened, has that benefited or has it been dominated by rising construction costs? Let's come to the rising construction costs in a second. There is a slide in the back, which Andy, if you wouldn't mind just chatting to as to the key components, that'd be helpful. Clearly, in a world of inflation consuming much of the rental growth that we've seen, economics of developments have not been as stellar as they would have been in the last cycle when clearly construction cost inflation was not a thing, and we had rents rising, and we had yields compressing. We've not got yields compressing at the minute. I do think, as we just discussed, there are going to be some opportunities for that at the prime end, and certainly in the smaller scale. It is the case that clearly development returns are less than they were last cycle. That said, look at our print this morning with +22% of the on-site schemes, largely because rents have come in quite a long way ahead of expectations and our own underwrite. The growth in that rental print is significantly faster than the growth in the inflation that also we've experienced in those schemes off a stable yield. There are circumstances in which you can make development work, and if we think about the next stage of our program, we're looking at some pretty healthy numbers there. Very healthy, as Jayne described earlier. If we see further rental growth, and if we get really lucky and see a bit of yield compression, whatever happens to construction costs, in a sense, will be less relevant. Don't forget, in the West End, for example, land is somewhere between 50%-75% of the total capital stack, right? Therefore, the construction cost inflation is only applying to somewhere between 25% and 50% of your cost base. In fact, it's not even that because you've got fees and interest and all the other things that go into the equation. Just on construction cost inflation, Andy. In the back somewhere. There you go. Thank you. Yeah. Thank you. Morning, everyone. Just before we actually talk about inflation, just to set our CapEx to come in context, as you've heard earlier, we've got about 90% of the cost fixed on that and healthy contingency allowances for the rest. We're feeling very well placed for our current CapEx to come. In terms of for the next cycle, what you're seeing here is this inflation slide is indexed, and it's average from 4 leading cost consultancies. It's showing about 3.5%-4% per annum. As ever, you've got upward and downward pricing pressures. Construction output is down. PMI for the last 15 months has been below 50, there is competition for work that is then offsetting, as you see in the bottom right, some of the upward pressures on pricing. You've got labor availability and cost right now with what's going on in the Middle East. Obviously, energy cost and energy-intensive materials. Stevie did ask me to get this one stat in today. Construction costs are not particularly strongly correlated to oil price. A 20% increase in oil price roughly equates to a 1% increase in construction costs. Gas prices are more important, but you've seen they've been a lot more stable recently. Finally, you've got some carbon-based tariffs coming. When we look at that, say, in relation to our St Thomas Yard scheme, we think that would have less than a 1% impact on construction pricing were it to be introduced by the government next year. All in all, for us, we've been here before. It's about early engagement with our supply chain and thinking about advanced sourcing of materials. Great. Thanks, Andy. Thank you, Jonny. Yeah. Thanks. Good morning. It's Tom Musson at Berenberg. Just thinking about the tail risk of a macro-driven downturn. In your going concern statement, you say that property values would have to fall 18.5% before a breach. Last year, that was a 45% fall, but values have gone up in the year. Can you just help me understand why that headroom's got a lot tighter? Sure. Stevie? Yeah, morning. Morning, Tom. How are you? That statement is essentially a forward look at the values after applying our going concern scenario to the values. It's a further 18% fall from the underlying assumptions within that model. If you look at the valuation as at 31 March, the headroom you have on your covenants is values could fall by 46% before you come anywhere near breaching any of your covenants. We've got plenty of headroom, as you should expect, given our LTV is only 29% today. That makes sense. Thanks. The second one looks like CBRE have rotated off after valuing the portfolio for 20 years. Knight Frank, they're in their place. Do you expect any risk to the comparability of valuations? No, I don't. I think they've actually valued since the inception of the listed entity, Healey & Baker originally, and then CBRE. I think that's right. The reason I don't expect there to be any comparability issues is because we have had Knight Frank shadowing the last two valuations, so they've been in the conversations. Hugh Morgan and the team has done a really good job of getting under the skin of understanding what they're thinking about our valuations. We've got a pretty clear idea of where they're coming from. Like CBRE, they've got good market share in London. They understand the dynamics of what's happening to rents and values and yields and costs, et cetera. I'm not expecting there to be dramatic or frankly any significant noticeable difference in the underlying tone of valuations. There will be differences, clearly, but not fundamental to the tone. There shouldn't be. Okay, thanks. Maybe if I can last one. By when do you forecast dividends to be fully covered by cash earnings? That would be a bit unfair to ask you, Jayne, so I'm going to ask Stevie. Good question, Tom. I would say we're going to be some time yet, because what you have to remember is the significant growth that's coming through in the cash earnings over the next few years will be driven by development completions. There, for example, the largest, which will be 200 Gray's Inn Road, is GBP 25 million worth of rent, but they're on a 15-year term and a three-year rent-free. It's probably at least three years out. You should see them grow quite materially over that period as we get towards cover. If you were, and not that you are, Tom, but were you to be worried about cash, clearly, with north of GBP 1 billion of sales coming, the cash component of this business is going up, not down. Morning. Adam Shapton from Green Street. Just one from me on the fully managed flex business. On the overheads, can you help us sort of triangulate, I think you're saying GBP 8 a foot in the waterfall chart? Does that mean it's about GBP 5 million today based on 650,000 sq ft, or is it less than that? It's less than that because not all of it is fully managed to the 650. Broadly, they're fully managed within the 650. Well, it's the majority, but it's probably about 60%. Yeah. Okay. Looking forward, as that portfolio grows, are those overheads now pretty much fixed? Obviously, there's staff costs in the OpEx as well, can we assume that will drop from GBP 8 to GBP 6 to GBP 4 per sq ft? I think you can assume that as we grow, those numbers will come down. The forecast is that today, at GBP 8 per sq ft, we think that's going to be not quite half, but pretty close to half that. We've already got the platform in place to manage a larger scale. What you would see inevitably as we scale up is more junior level additions to the team to help manage customer relationships and those kind of things. Critically, we've got the platform in place for that growth. Okay. Sorry, just to be clear, what is the absolute number if it's GBP 8 per sq ft today? Well, let's come back to you on the exact economics. Thanks, Adam. Zach. Morning. It is Zachary Gauge from UBS. Just a couple of fairly quick questions. First one, I was just a bit surprised given you probably seem even more bullish on Prime than 12 months ago, that you have actually slightly reduced your Prime estimate for this year from, I think it was 6%-8% to 4%-7%. Effectively now in line with average. If you could just touch on what is moving that. The second one is, you mentioned Duke Street as a potential sale. Can we assume that you would then potentially take a capital gains hit to sell that within the 3-year window? Yeah. I don't think we're any more bullish on Prime than we were last year. Exactly the same basic messages were delivered last year. The difference being last year, we still had it all ahead of us. This year, we've delivered it. The risk associated with it last year was higher than it is today in the sense that we've delivered a lot of that. It's been proven to have been broadly accurate. In fact, last year, we said, as you can see here, 6%-10% for Prime, and we delivered in the 7s. We're narrowing the range, I think, as we get more data and we understand more what's likely to happen in the market. 6%-10% in a world of inflation at low single digits feels a lot. I think what we're really saying here is we don't need 6%-10%, and it's probably more the case that you'll see a repetition of this year, next year, last year, this year, whichever you want to look at it. In other words, broadly 7% for prime rents as we go forward into this year. If we do that, we'll be delighted. Right. Was there a second part to your question? Sorry, Zachary Gauge. Yeah. Duke Street sale. Duke Street sale. As ever with us, this is all about looking at the forward IRR and thinking about the opportunity cost. We've sold buildings in the past soon after the tax window has expired. We've sold buildings before the tax window has begun, and we've sold them in the tax window and paid the tax. The analysis is always going to be the same. What do we think is in the best IRR outcome of that particular economic trade? Is it worth waiting? If we do wait, what happens to that IRR? What are the risks associated with it versus taking the money now and moving it on? We'll do the exact same with that one. You will have eagle-eyed noticed already that the GBP 200 million that we're anticipating trading this year. If you go to the slide, Rich, with the stack on it, whatever that was, you will have noticed that 30 Duke Street is there broadly. In other words, we are thinking about whether we trade that this year, this financial year. Thanks, Zach. Yes, Marc. Marc Mozzi, Bank of America. Can we have some color around the 10% return on equity targeted for this year? How you break that down between income capital and within capital between like capital growth and development contribution? Yeah, good question. I think, Rich, there's a slide in the back, isn't there? Yeah, well done. Thank you. Here you go. This is essentially building up from the net earnings the company is generating through rental growth. There you go, 4%-5%. That's broadly in the range. In fact, it's towards the bottom of the range, Zach, that we just chatted about. Bunch of development surpluses. What we've done there is looked at the likely deliveries of schemes and what we estimate the valuers might do, or if we were to sell them, what we think we could sell them for, and there you get to your 10%+. No yield compression in there at all. That's quite important. Given some of the evidence in the market right now, we might get some yield compression. We're not assuming we do. I think it would be foolish to assume that we do, because then you're just layering unknowns upon unknowns, and the 4%-5% rental growth clearly is contingent on relative stability in conditions out there going forward, and we clearly can't know that either. That's how we get to the figure. Thank you, Marc. Yes. Hi, Eleanor here at Barclays. On leasing, how repeatable do you think your strong performance is moving into this year? How much will be timing related from developments, and how should we think about the leasing volumes in FY 2027 overall? Linked to that, where do you see your vacancy rate moving over the year? Okay. Simon, repeatability? We are being asked to do it all over again. We think we can certainly deliver. As I mentioned earlier, the dynamics in the market are fully supportive. As Toby just mentioned, you cannot necessarily forecast everything in the world, and if you could, you would be a very rich person. The feeling in the market right now is that take-up is up, demand is up. There are over 30 requirements for over 100,000 sq ft in Central London at the moment. About 47% of those are expanding rather than contracting. There is lots and lots of confidence that we can take into this forthcoming year. On the HQ side of things, in the year to date, 51% of all take-up has been pre-let. I do think that we will see this continuing. There is a real lack of stock, and people are definitely looking at this with risk in mind, but in a way of, "I need space." If you look back to COVID, back in 2020 to today, companies took expansion options. Lots of people needed that ability to grow. Of all of that expansion space, only 11% was not taken. People have actually been expanding through the last 5 years. The other thing is that tenant release space, again, Rich, I think it's in the deck at the back. Tenant release space is currently 14% of availability. That's the lowest it's ever been. The market dynamics are really, really strong, and that's why we feel like we can repeat it on the HQ side. On the fully managed side, we've done, in the last year, one deal a week. Just over one deal a week, and the rental tone has been increasing, and the supply side on the fully managed side of things is no different. We don't see new entrants coming into the market. We don't see new serviced office operators coming into the market. We don't see new landlords creating a platform like we have. In a world where flexibility, lack of CapEx, and giving over the kind of difficulties of managing an office to a landlord who owns the space, that's really attractive. These are all reasons why we are confident going into this year. I think we'll do less than this year, partly because we've consumed quite a lot of the obvious leasing challenges in the year just gone. Right? Those big pre-lets were a big part of the story, and if you look at the existing on-site schemes, they are now majority pre-let. I think we will do less this year. Can you go to slide 42, Rich? Here you go. This is the long run of the components of the void rate. Clearly, at the bottom is the investment portfolio. That goes up and down depending on what we want to do with it, and we've wanted it to be higher for the last few years, as we've described, because we knew we could generate rental growth from those vacancies. We've clearly had a lot going on in development and refurbishment, and there you can see the reduction in green over the last couple of years, and the purple as we pre-let stuff. I think looking forward, it'll probably be a lower% of leasing, and I would imagine that the vacancy rate will be around the same as we get towards the end of the year. Yeah. Okay, do we have any more? If not, that's great. Some good questions. Thank you very much, everybody, and I hope that was helpful. As ever, we are around to answer further questions. The things I would take away from this, stack of income growth to come, load of sales to come. We will buy more, but I think this year will be all about those sales and what we do with that capital. Look out for potentially returns to shareholders as the year progresses. A sense of optimism all else equal. Thank you very much for coming.