Good afternoon, and welcome to the Regional REIT Limited investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to the management team. Stephen, good afternoon, sir. Thank you very much, and good afternoon, everyone, and welcome to the presentation of the half year results of Regional REIT for the period ending 30th of June, 2026. It is my intention this afternoon to take you through the results for 2026 and then spend a bit more time updating you on what we are witnessing in the marketplace and our continued progress that has been made towards our strategic goals. As mentioned earlier, Q&A, we will deal with at the end, and if you can submit your questions, we will try and get through as many of them as possible. If I may now introduce this afternoon's team from Regional REIT's manager, ESR LSPIM. I am Stephen Inglis, Chief Executive Officer, and also on the call this afternoon, Simon Marriott, Property Fund Manager, and Adam Dickinson, Investor Relations Manager. Well, after another six months of political and economic change and instability, I think we are almost back to where we have been many times before over the course of the last few years. Turmoil both in the U.K. and internationally, given the host of events currently ongoing, and that undoubtedly has impacted business confidence and impacted the real estate market, both in terms of energy, and also in terms of interest rate movements. Political turmoil in the U.K. with yet another new prime minister, sixth in 10 years, and Europe-wide with disenfranchised voters and the rise of the far right. This background impacts the U.K. economy either directly in the case of increased energy costs or more subtly, but also, as I said, impacting business confidence. The vital part of business confidence in growing the economy and creating jobs, which has in turn an impact on the requirement for physical space. So, a backdrop of uncertainty and continuing headwinds. However, against this backdrop, we are making steady progress in reducing the company's debt, selling non-performing, under-performing assets, and leasing up space marginally ahead of the expiries and breaks being exercised. So despite all of this, I think the company is making good progress and has made good progress over the course of the past six months. Adam, you can take maybe the slide three. Thank you. So, a quick summary of the 2026 half year highlights. So, as I mentioned in my opening remarks, whilst things are undoubtedly difficult and the leasing market remains slightly subdued, we have nonetheless undertaken 26 new lettings, delivering GBP 1.9 million in new rental income and delivering a GBP 700,000 annualized saving in reductions to void costs. We are making good progress on sales with GBP 21.5 million of sales completed in the period, and these were on vacant or partly vacant assets, and this has allowed us to reduce debt and reduce void costs, so accretive to income. We further reduced LTV, which now sits at 38.5% through repayment from those sales proceeds. Finally, of course, we have delivered a fully covered GBP 0.04 dividend in line with our target of GBP 0.08 for the full year 2026. Slide four, please, Adam. Just looking at the key highlights. Our strategy to reposition the portfolio continues. We remain committed to creating a high-quality, income-focused portfolio with targeted value-add opportunities. The portfolio value currently stands at GBP 526.7 million, down as a result of sales and a small 1.3% valuation reduction. EPRA occupancy is mainly down. This may look at first as counterintuitive given the leasing activity that I was just commenting on and the sale of vacant units. This is mainly due to the CapEx projects completing and coming back into the EPRA numbers, so it is very much a timing issue. Actual occupancy has improved over 2% over the period. CapEx in the period at GBP 1.4 million looks low. This is mainly as a result of the significant letting that we have undertaken in the period where we anticipated expending GBP 5 million of CapEx. However, as part of the deal, the tenant is now undertaking that. We will obviously commit that CapEx elsewhere in the portfolio to improve the overall quality of the portfolio and consequently the income. You are on track to do GBP 10 million per annum, which is our previously stated estimate. Earnings per share in line with our estimate, allowing us to fully cover the GBP 0.04 per share dividend for the half year. LTV, as mentioned in my opening remarks, down. Gross borrowings have decreased to GBP 243.8 million just due to those sales and the paid down of debt. Slide five, please, Adam. The strategic sales program continues, and the rationale obviously for sale to reduce debt in advance of the refinancing in December 2027 and December 2028 facilities. A little bit more detail on which to follow and to reduce costs associated with non-core and non-performing assets. Attempting to sell the non-performing, non-income producing assets, which we were successful in the first six months. The sales program continues with a further two sales completed post period end for GBP 4.3 million. There are a further 11 assets either contracted into the solicitor's hands or in late sales negotiations, i.e., where we have agreed terms, accounting for a further circa GBP 32 million of potential proceeds. In total then, assuming the sale is complete before the year-end, we could well be selling around GBP 58 million, in line with our previous guidance of GBP 50 million- GBP 60 million of sales for the full year. Slide six, please, Adam. Thank you. Portfolio repositioning for long-term growth. If we look at the average rent, average rent continues to grow. Yields, as you will see on the right-hand side, have effectively remained static since June 2025, so over the last three periods. That kind of suggests that the valuation market certainly has stabilized, and that we may well be now at the bottom of the market, all things being equal. We continue to see average rents creeping up. Offices, the vast majority of our portfolio, almost 90% by value. Obviously the lettings there in terms of what we have previously discussed, but clearly the one big letting, GBP 1.1 million of income across two buildings in Nottingham. That is the annualized rent. That is not the income for 2026, given rent-free periods. That was the annualized rent over the 10-year life of that letting. Average requirements in the market are increasing. We are seeing some upscaling of several tenants, to our benefit in some cases, but obviously to our detriment in others where we have lost tenants, where they have moved to bigger buildings. Rent collection remains strong, 99.7% in the period to date. That will ultimately become 100%. Those 0.3% is just an issue of timing and when those rents are collected. You will see the full year figure there at 100%. Okay, slide seven, please. Just looking at, obviously, the map of the U.K. showing our assets distributed across the main regions and major conurbations of the U.K. One or two highlights there, obviously one and two Newstead Court is the letting of the first six months, almost 150,000 sq ft on a 20-year lease with a 10-year break, and producing over GBP 1 million of annualized rent. With the tenant undertaking, as I mentioned earlier, GBP 5 million of CapEx works that we had originally looked to undertake on their behalf. But a much better result for us not having to expend the capital, but still achieving a GBP 1 million rent on a 10-year lease term certain. Linford Wood business park, again, rents improving there. Previous rents at GBP 18 up now to GBP 22.50. Thorpe Park, Leeds, likewise, we are seeing good rental growth now at GBP 24/sq ft on the latest letting there. Progress being made across the portfolio and in different regions. Next slide, please. A quick look at the portfolio segmentation. Many of you remember we have actually locked the assets in terms of the segmentation 18 months ago. Clearly, assets do change in terms of where they should be, and a classic example of that in the value add, you will see that building above, which is one of the Newstead Court buildings. Clearly that is no longer value add. We had looked to demolish these buildings to make way for high-quality industrial. Clearly, we have now done a letting, and that will move effectively to core, albeit to allow us to compare like for like, the assets are frozen in each box. We have made good inroads to the sales program. Sales down to roughly GBP 30 million by value, 5.6% of the portfolio. Value add there at GBP 55 million, as I say, distorted slightly by that one asset, but we will talk more on value add later in the presentation. CapEx to core and then core. If you like the buildings on the right, the value add and sales buildings we would look to sell in due course, and the CapEx and to core and core those assets we want to retain for further income growth. Next slide, please. Now looking at the trends for regional offices, in respect of the supply and demand. In this slide, the supply side. Supply remains constrained, and is probably going to constrain further as time moves on. When you look at the bottom right slide there or the bottom right box, construction start for regional offices at lowest level in over a decade. That is indicative of the development market as a whole, but office market specifically. The costs of ground-up construction these days have grown substantially as a consequence of which really, unless it's pre-let, to achieve rents of between GBP 50 and GBP 60, which is what you're required to achieve to justify development, as I say, I think we'll see very little in the way of new starts over the course of the next few years. On the right-hand side there, obviously, is the supply. We're seeing delivery of just under 1.5 million sq ft in 2027 of schemes obviously commenced several years ago. 2028 falls away dramatically. When you look at 2029, 2030, 2031, almost no new supply coming to the market at that point. I think that will constrain the market further as we continue to lose buildings to alternative uses, and for demolition of non-core, poorer quality Grade C, D, and E buildings. I think we will continue to see supply very much constrained. Okay, slide 11. Looking at demand then. That's the supply side. We are going to see a constrained supply and indeed diminishing overall supply in the regional office markets. Therefore, what about demand? Well, demand is holding up. I talked about a subdued leasing market. It is. It's taking much longer to get deals over the line. However, there still are requirements out there from many, many companies. But decision-making and determining timelines for when that initial interest becomes income, i.e., the buildings are actually leased and then become income producing, becoming increasingly difficult. There are requirements, there is demand, but the time taken for that to flow through into actual lettings is quite considerable. Because of that constrained supply and that continued demand, we are continuing to see rental value growth. The data there, U.K. offices saw rental value growth of 4.7% in the year to June, compared to City at 3.6%. Across our portfolio, we're achieving on average 3% above ERV. Of course, ERV has been increased over the course of the last couple of years in line with the market. So rental growth is there, which kind of supports my thesis that supply is restricted and demand continues. We expect to see that rental growth continue and indeed increase ahead of the 2030 date for EPC requirements A and B coming into force. The take-up figures there in the bottom right-hand corner. Okay, slide 12, please. Just looking at a couple of case studies. This is a brutalist architect building, but internally provides very, very good quality accommodation. The majority of this building is let to Global Banking School. We have one vacant floor, which we have agreed terms with Global Banking School to take. In fact, terms have been agreed for almost 15 months. But for a number of reasons, due to Global Banking School's internal requirements and indeed requirement from building warrant to change some of the fabric of the building to meet and satisfy their requirements for a single occupier, this deal is now only now coming to fruition. We expect to announce the final letting here in the next few weeks, taking this building to 100% let, and of investment grade. Next slide, please. We talked earlier about value add and potential change of use assets. We have undertaken 15 feasibility studies, and taken many of these assets through first stage planning, for initiatives for change of use, where the change of use values add value to the building compared to current holding costs. We will now see some of these assets coming to market over the course of the next few months, demonstrating that the value add element and that increase in value for alternative use does actually pay off and increase values quite substantially. Watch this space in terms of some of these properties coming to market, with the benefit of support for PBSA, for residential to sell and residential to let on the whole. But other uses include hospitals, industrial, and a host of others. Next slide, please. The largest value add potential asset in the portfolio, Central Park, New Lane, Leeds. This has been a long battle with the local authority. This was originally safeguarded as part of the HS2 proposals, and of course, they were canceled a couple of years ago, so HS2 no longer happening, therefore, one would have imagined that this would have been released from safeguarding. However, the local authority and local MPs have managed to retain the safeguarding for potential mass transit, Leeds Mass Transit system. We have been battling with the local authority and Department for Transport to say, "Well, that wasn't the intention of the legislation for HS2. The safeguarding is in connection with HS2 only and should not apply in respect of the mass transit system." Moving forward, some good news. The Department for Transport have now confirmed that this will not be required for the mass transit system, and indeed, that our arguments on safeguarding hold water. This will be released from safeguarding imminently. We are waiting for documentation to be signed, but the safeguarding will be released. As part of that has allowed us to agree a new long-term reversion, at least with Asda on the front portion of this site, as they use the industrial unit for their national training center. A very important part of their business with, of course, their headquarters across the road. That has been agreed at a much higher rent and will kick on from the expiry in 2028 for a further period of 10 years. Good news there. Again, that is in the process of being documented, and that releases then the rear element of the site to go through the planning process for residential. We anticipate that that will be high-density residential and, of course, south side of Leeds and the south bank has been a part of Leeds showing significant improvement and significant development. We anticipate, as I say, achieving a high-density scheme on the rear site, at which time we will sell to residential developers. Another change of views. One and Two Newstead Court, obviously featuring a lot in this presentation, given the scale of letting, but clearly we're not going to be demolishing this for industrial anymore. It is now a core hold offering potentially 20-year income. That just kind of is indicative of what is happening in the marketplace just now. I talked about constrained supply earlier. The constrained supply is forcing tenants to perhaps be a little bit more imaginative. For example, in this case, the tenant, Glenair, a U.S. defense and electronics company, required to upscale. There was nothing in the region suitable for them in terms of ready-made space. Therefore, they had to be a little bit more imaginative and say, "Well, fine, we will take what is fundamentally two good buildings in this business park and then undertake the works to create the space that we require for our staff." We have seen this on a few occasions over the course of the last 6 - 12 months, where constrained markets are forcing tenants to look elsewhere, not necessarily in terms of geographic locations, because they want to retain their existing staff, but more specifically on the types of buildings they are prepared to occupy and upgrade. I think this will become a feature of the market moving forward. Thanks, Adam. ESG remains very, very important in the minds of occupiers and of course, us as responsible landlords. We still are very much focused on ESG to deliver sustainability and cost savings. EPCs, the Energy Performance Certificates legislation, still not through, but everybody expects that by 2030, the legislation will be that all buildings require to be EPC A or B. Actually, to a degree, it does not really matter about the legislation because companies themselves are taking it upon themselves as part of their own ESG requirements. The vast majority of requirements, barring several outliers, are all for EPC A and B. So vital that we provide that quality of space. We are, as you will see, making good inroads, just over 61% of our portfolio now conforms. Of the rest, 26% is EPC C, with an identified route to upgrading and improving those buildings to EPC A or B. The vast majority of the D and Es and below will be sold as part of the sales program moving forward. I think worth a note, we have mentioned this many times before, but the market has not responded as quickly as it should have done to creating EPC A and B. I t is currently only 19% of U.K. commercial buildings, that includes industrial, so U.K. commercial buildings, meets the requirement. In the office markets, they vary city to city, region to region. But if I take Leeds and Manchester as an example, those markets are roughly 25% conforming. Now, if we look at that in the context of occupation, last occupier numbers are from December 2024. We are awaiting the December 2025 numbers to be confirmed. But roughly 81.6% of the regional office market was occupied at that point in time. 81.6% occupation with only 25% of buildings conforming. You can understand why we're enthused and indeed believe that we'll see rental growth for those better quality buildings. More of the market chasing fewer buildings or small part of the market that's conforming. We expect to see substantial rental growth over the office market where it's offering Grade A accommodation and EPC A and B. Elsewhere on ESG, we're continuing the rollout of our 4D s mart technology. This is effectively the smart technology for identifying energy usage, and where we can find cost savings. We've installed this system across 45 sites so far, and that's producing GBP 190,000 of savings to Regional REIT over and above those savings that the tenants themselves are receiving. Those GBP 190,000 of savings are direct savings to the REIT, not to the occupiers. Solar continues to be installed. Installation completed now at 17 sites, 14 of which are energy producing, and roughly 180,000 kWh being produced from those 14 sites. We'll continue that rollout over the course of the coming years. Just looking at the income overview. This is the EPRA earnings H1 2025 versus H1 2026. Effectively running through the bridge. Looking at the earnings, looking at rental property income, obviously down GBP 5.7 million in terms of sales. Most of the income from sales as well as the expiries and lease breaks. Looking at costs, admin costs, financial income, and finance expenses coming to the GBP 6.8 million of EPRA earnings June of 2026. Next slide, Adam, please. Then evaluation, obviously December 2025, there's the disposals, GBP 20.8 million of net of cost disposals to be GBP 1.5 million gross. Acquisitions, obviously none in the period. The gain and loss of disposal properties GBP 2.1 million, CapEx GBP 1.4 million and evaluation change there, that 1.3% reflecting GBP 7.1 million due to income differentials. Then the current valuation of GBP 526.7 million. Then just looking at a balance sheet overview. Again, summarizing effectively the two slides that we've just run through, looking at that NAV at GBP 305.8 million in the far right-hand corner. Moving on to debt. We have debt expiries in December 2028 and December, sorry, December 2027 and December 2028. If I can deal firstly with the Scottish Widows and Aviva debt in December 2027. We are obviously very much focused on that and the majority of sales that have been undertaken in the first half, and indeed will be undertaken in the second half, are focused on that specific facility. That will mean selling some income, but that income is where we've identified further risks down the line. For example, we will be selling, and indeed are under offer to sell, a large building where we know the tenant will vacate in 15 months' time. The leasing market in that specific location is thin and therefore we're de-risking by selling now. We're selling to, people say, "Well, why are you selling and who's buying?" We're selling to an operator who holds various assets in the same location. There's an element of local knowledge and marriage value for them. That will be re-fi-ed alongside the Scottish Widows facility in December 2028. We're in discussions both with our incumbent debt providers and Scottish Widows are there to refinance both facilities and also with other lenders outwith the Scottish Widows. We want some competitive tension, but I think the answer will be if we can refinance with Scottish Widows, it would be sensible to do so because they will give us the benefit of the current pricing to the expiry of those facilities. So, current pricing to December 2027 in respect of that facility and indeed current pricing to December 2028 on that element. With the sales, we expect to be refinancing at roughly GBP 100 million of debt. That refinancing will, on current pricing, be 3% above current levels, so just over 6% all-in cost. Whilst we are also looking at the RBS Bank of Scotland Santander facility, that was a facility we entered into a year or so ago, and it was a three-year facility with the option of two further one-year extensions. We have already made the application for the one-year extension from December 2028. That is currently at credit with the banks, and we anticipate receiving that very shortly. The Widows facility, if we refinance with them, is likely to be for seven years. With an external party, maybe five years. That would then allow us some breathing space in terms of the expiries out until the first one, June 2029. The sales program effectively will continue, but only on non-core assets. We will have dealt with the bank facilities, we will have reduced LTV to somewhere around 35% by the year-end on current sales. Indeed, we will have no banking facilities to deal with until Santander, June 2029. Okay, a reminder of our strategic priorities. So, driving income. How do we do that? Well, we increase occupancy and rental growth across the portfolio. Strengthening the core portfolio and continuing to improve EPC ratings, vital in obtaining the tenants and the quality tenants that have requirements in the marketplace, they will, as I mentioned earlier, only commit to Grade A space and EPC ratings of A and B moving forward. We are committed to reducing debt through targeted disposals. That continues, and we are well on our way to achieving our target by the year-end. Committed to fully covered dividend. We are fully covered for the half-year and will be the full year. Pursue opportunities to add value ahead of disposals. So that is the value-add element of the portfolio and, again, making good progress with those assets. Next. Adam, please. To sum up, really, we have now taken you through the H1 results for the company. We are very hopeful that the insight and the immediate outlook and longer-term out in relation to the supply and demand dynamics also appeal to you. We do believe that the supply and demand dynamics over the short term offer the regional office U.K. market a very opportune time to show rental growth, and by showing rental growth, show value improvement. With interest rates stabilizing, we do not expect to see huge growth in terms of value by yield compression. However, we can drive value by improving the quality and quantity of the rent. Yet again, we seem to be in a period of instability, but we can deal with what is in front of us, which is our portfolio, and the U.K. markets. That brings us to the end of the formal part of the presentation, and now very happy to take any questions. That's great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A can be accessed via our investor dashboard. Adam, if I could just hand back to you to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end. Thank you, Lily. Thank you, Stephen. I may start with the first question that was submitted earlier today. "Can you give an update on the Leeds development, please? What is the legal position, and has that been settled? Yeah, I think I probably touched on this in terms of the presentation. Clearly, it is an important asset. I can understand why the question has come in. I think I mentioned we have been in discussions with Department for Transport, who have responsibility for this site. So although it is Leeds City Council in terms of area, and Leeds City Council would normally be the planning authority, in a case where the site is effectively blighted, safeguarded, it is actually Department for Transport that has the authority. We have now had confirmation that they will release the site. It took a lot of negotiation and fighting. We sat alongside Asda. Asda threatened to relocate from Leeds City Center because their car park was also part of this exercise, which has also been released. I am pleased to say we will hopefully document that in the coming weeks. We will be submitting first-stage planning inquiries over the course of the next couple of weeks. We are all ready to go with that, and that will start the process in terms of planning. I also mentioned the Asda situation. So Asda are keen to continue to occupy the front area of this and will take a 10-year reversion release at an increased rent. Again, we will hopefully announce that in the coming weeks. All tied together, obviously, as part of the exercise. Yep. Thank you, Stephen. A question on the cash position of the company. Approximately GBP 39 million of unrestricted cash reported at 30th June 2026. Of that, how much represents service charge monies, tenant deposits, rent received in advance or other working capital amounts that cannot realistically be used for permanent debt repayment? What amount does management regard as genuinely surplus deployable cash after allowing for operational liquidity and committed CapEx? Yeah. Good question. Long question. Let me try and deal with it and can pull it apart. In terms of service charge monies and tenant deposit, zero. That clearly is not our money, that is the tenant's monies. So none of that is in the GBP 39 million. Rent received in advance, yes, a small proportion. Clearly, we accept or collect our rents quarterly in advance. But I guess the easiest way to deal with this in cash terms, so we retain a cash buffer of GBP 10 million. An element of unrestricted cash, GBP 1.8 million currently, and that is restricted by the banking facilities, but will be released as and when we meet the requirements of each individual facility. That sum varies substantially. It was almost zero in December 2025. In June 2025, I think we are at GBP 3 million or GBP 4 million. So that number varies substantially, but that will be released. The remainder really is committed and proposed CapEx projects and normal operating activities costs. So, all of the money has a purpose, and is identified. So true surplus, where we do not have a purpose for it, very little, and obviously the cash buffer of GBP 10 million, we retain as an insurance policy effectively for any unknown matters that crop up. Thank you, Stephen. A couple of questions on occupancy. Firstly, core portfolio occupancy fell from 86% down in December 2025 to 82% at June 2026, while overall occupancy is 74.3%. What caused the decline in core occupancy? What occupancy level does management expect for both the core and total portfolio at December 2026 and 2027? Another one is more when you think you will achieve occupancy at 80%+ level? Okay. The main reason for that fall in core occupancy is we have sold some income. We clearly want to target the non-performing assets and the assets where we have substantial hold costs, i.e., the vacant assets. We have done a good job in the first six months of doing that. I mentioned earlier GBP 700,000 of saving, which comes from those sales. However, we have sold some income, so that is really the main part, along with some lease expiries not renewing, and some breaks being exercised in normal course of events. We gained GBP 1.9 million of rent but lost GBP 1.8 million of rent from those lease expiries and breaks being exercised. That is the main reason for the fall in that core element. In terms of occupancy levels by the year-end and by the end of 2027, 2026 rather, we are looking at 84% occupancy by the end of 2026. An outcome from driving rents in terms of increased occupancy of our buildings and selling vacants. That is really where we are targeting. That 80% figure plus is going to come into force probably beginning of 2027. Sorry, beginning of 2028. We are keen to progress with the leasing-up activity. We have over 200,000 sq ft of space that has been refurbished where there is strong interest, but converting that interest, I think I mentioned earlier, subdued. Converting that interest to actual lettings and income has taken some, or does take some time. We are not the only company witnessing that. It seems to be across all markets, not just offices. Thank you. Then a couple of questions on the debt position. Bear in mind the GBP 240 million we currently have in debt, the GBP 103 million of Scottish Widows and Aviva facility matures in December 2027 and currently has an LTV of 47%. What level of debt and LTV does management expect immediately before refinancing? What refinancing interest rate or range is currently being expected or assumed? Yeah, again, I think I probably covered this in the presentation. The level of debt, we expect it to be GBP 100 million between the two Scottish Widows facilities. So that is combining the December 2027 expiry and the December 2028 expiry. 45% is the figure that Widows requires to get to. When we have been speaking to other banks, it ranges between 40% and 45%. But 45% seems a relatively comfortable figure for most of the banks. Therefore, clearly we need to get the current LTV of 47.3% down, plus the sales. GBP 100 million, 45% LTV, and the cost will be almost certainly 3% above where we are currently, so early 6%s. We have seen a lot of movement over the course of the last couple of weeks just in terms of the five-year rate on which debt is priced. I guess it will depend where rates sit when it comes to finalizing the loan documentation. We are anticipating that will be in place by the end of Q1 next year. The rationale for that is clearly the audit will be undertaken at that point as part of the full-year results exercise. We do not want a material uncertainty clause in our accounts, given that that debt will then be within 12 months, or expire within 12 months. I think that is the long and short of it. I think it is highly likely that we will refinance with Scottish Widows. Thank you, Stephen, and a similar question on the debt. What LTV are we actually targeting? Yeah, we have indicated levels of debt previously as to be mid 30%, i.e., 35%. We will be at 35% by the year-end, assuming the sales that we have contracted and anticipate will complete happen. That 35% level, the board seemed relatively comfortable with. Various thoughts in terms of should we be targeting 30%, should we be targeting lower? Certainly, it will naturally come down if we improve the quality and value of the portfolio. Indeed, as we continue to sell non-performing assets, you would expect that 35% to drift down. At the moment, the board seem comfortable, and the company seems comfortable at 35% LTV. Thanks, Stephen. Then more of a general question on the management structure. I realize that you have to paint the picture as rosy, but the markets do not seem to recognize that the long-term investors have suffered high management charges, falling dividends, and stagnant, if not falling, share price. What is the board doing to encourage the markets? How is the turnaround to avoid long-term shareholders from exiting? Yeah. The management fees have reduced substantially as well. Management fees, obviously, were originally just based on NAV and rental. As that NAV came down and rents came down, management fees also have been reduced substantially. The board did renegotiate the management contract a year or so ago, which obviously announced to the market, which then split the investment management fee between NAV and share price. That alignment is probably right and proper, but reduces fee income even further for managers. Are they high costs? Well, high in proportion to what? Clearly, it is a complicated portfolio to run. I would argue that the management fees are not particularly high when you look at internalized costs. Certainly, salary levels of our company are substantially below those of internalized PLCs. We continue to fight hard. I also am a large shareholder, as most people know, so my interests are aligned both as a manager and as a shareholder. We continue to drive forward our program. We haven't been in complete control of our own destiny, given falling values and pressure from banks. I think that will be far released come 2027 when we have refied, we have reduced debt to a far more comfortable level, and we begin to see some meaningful inroads into the net income position, i.e., getting rid of some of those void costs. The management continue to work hard day by day. Is the market tough? Of course, it is. Has been really since COVID. But I actually am seeing light at the end of this tunnel. Sales program going well, reducing overall indebtedness, giving us control of our own destiny back. We will see that growth come through in terms of supply, demand. As long as demand holds, doesn't have to improve, as long as it holds and supply continues to contract, then you'll see our portfolio continue to increase occupancy. Thanks, Stephen. On a similar vein, in terms of supply and demand in the market of office stock, how long is it likely to take for the excess office stock supply to be absorbed? Yeah. Excess office supply is mostly of buildings that are no longer fit for purpose or need a lot of construction, a lot of refurb costs. Refurb and new build is difficult given the construction market. I talked about the development market earlier. With values effectively flatlining and costs increasing, it makes development, and indeed refurbishment, increasingly difficult to justify. A bit of a double-edged sword. Our valuations have been hit very hard over the course of the last few years post-COVID, as the occupier market shrunk, and now is increasing again as companies who downsized substantially post-COVID are now increasing the amount of space that they require to bring people back into the office. I think, looking ahead, the surplus stock that is out there, that 20% of unoccupied space, is mostly of Grade C, D, E buildings. So not fit for purpose. Many of the buildings occupied will fall into the same category as tenancies come to an end or tenants are able to exercise break options, they will look to upgrade space. The answer to that is that there is very little Grade A accommodation conforming to EPC A and B available, which will drive rents. It also will mean that hopefully our renewal rates will remain stronger, as tenants won't have options to relocate. I am hoping it will be a double-edged approach for us. One, in terms of leasing up the space that we have refurbished, and secondly, in respect of retaining tenants in their existing accommodation. I think renewal rates will increase as well as new lettings. Thanks, Stephen. More of a general question in terms of the strategy. Value adds come at the bottom of the strategic list, selling assets at the top, roughly. Is this an opportunity, and I suppose, when do we see the selling going to stop? The sales for refi-ing will stop at the end of this year. Thereon forward, there will be good rational reasoning why we are selling. We will be selling because we don't see a future in a specific asset. We don't think it will perform in terms of rental growth because it may be wrong type of asset, wrong location, and/or risks to us in terms of refurb costs going forward. We will be back to selling for strategic reasons post the year end. Selling will stop, no, because as assets become let or vacant, we may well sell for the reason that we get an offer that is substantially ahead of current holding value, and it makes sense to do that. That is what we have always done. We have always turned the portfolio where there is a profit to take or to minimize forthcoming risks, and that will continue. But in terms of sales for refi, that part will complete at the end of this year. Thank you. I think the last question, which was sent by a couple of people. In terms of the refis, bank facilities go up across the board, what impact will that have on the dividend? Well, the intention is to hold the dividend at similar levels in the next year or so. The reason for that is, showing a small increase in terms of brokers forecasts, consensus forecasts for 2027. So the GBP 0.082 or so. The reason for that is we recognize the increased costs. To put it in context, if you are to refi that GBP 100 million at a 3% higher rate, then it is GBP 3 million per annum additional interest cost. Now, we need to offset that cost by increasing the sales of vacant properties and therefore reducing our void costs. Obviously, we have done GBP 700,000 in the first six months of this year. Also by letting up space of currently vacant accommodation. For those that have listened to me many times before, for every GBP 1 of rent, it is GBP 1.80- GBP 2 to the bottom line, given those very high vacancy void costs of service charge, insurance, and of course, the interest charges. We have a plan. We will offset those costs. We will try and hold the dividend as best we can. We can do that within the existing parameters of where we are. So, will it have an impact on dividend? No, we are hoping not. We should still be able to make our GBP 0.08+ dividend. Thank you, Stephen. I think that's all the questions today. I hand back to Lily now. That's great. Thank you for answering those questions you have from investors. Of course, the company can review all questions submitted today and will publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Stephen, could I please just ask you for a few closing comments? Yeah. I think we've covered quite a lot over this afternoon. This is really just a six-month update, as all half-year results are. We'll provide more detail with the full year as to where we sit. We anticipate making all of our strategic targets, which will allow us to continue to pay that dividend. Then hopefully, as markets begin to improve and as we drive income forward, we can then look to increase that dividend year on year, post next year, so 2028 onwards. So, thank you all for attending. I think we have made very good inroads. We're getting towards the end of that strategic repositioning of the portfolio, and therefore, I'm pleased that we're at this stage. We'll get there hopefully by the year-end, and then drive the company forward into 2027, 2028, and beyond. Thank you very much for paying attention today. That's great. Thank you for updating investors today. Can I please ask investors not to close the session, as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good afternoon to you all.