Hello, welcome to Vastned's Annual Results 2022. Please note this call is being recorded and for the duration of the call, your lines will be on listen only. You'll have the opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand over to your host, Reinier Walta, CEO, to begin today's conference. Thank you. Thank you. Welcome everyone to the presentation of our 2022 Annual Results. We are here today to guide you through the operational and financial results of Vastned. First, I would like to inform you that it's the last time I will do this together with Simon Theeuwes, who will leave us at the end of February. Simon, I would like to thank you for all the hard work in the last couple of years. His role will be taken over by Remko Bakker, who is also present here today. Next slide. The year 2022 has been a strong year for Vastned on operational and financial performance. Vastned is satisfied with the achieved results. The quality of the portfolio is confirmed, which is also reflected in the property valuation that only showed a slight decrease of 1.2%. With an increase in the occupancy rate to 98.6% at the year end 2022, and a collection rate of 98.2%, the quality of our tenant base as well of our organization is confirmed. Throughout the year 2022, a limited number of mutations occurred within the Vastned portfolio. New lettings were limited, but all close or above market rents. The number of divestments, five and investments, one, were very few. The like-for-like rental growth increased by 7.5%, driven by the higher occupancy rate, indexation, and less waivers. The waivers, it was for 4.1% change. With low vacancy in high streets and tourism in the main cities rebounding, Vastned feels that the operational foundation for high street retail is robust. The increase in the direct result of EUR 2.05 per share, which is on top of our indicated range of EUR 1.95-EUR 2.05, reflects all of this. This allows for a dividend proposal of EUR 1.85 per share to our shareholders. With an interim dividend of EUR 0.59 per share already paid, the final dividend to be paid will be EUR 1.26. This implies a payout of 9.2% of our direct results. Our portfolio has proven to be robust and high street shopping getting back on track. It is, however, important to remain vigilant. Vastned is not immune to rising interest rates, geopolitical and other economic uncertainties. Vastned does not provide guidance on the direct results for 2023 at this stage. The next slide. Considering the current context of rising interest rates, increasing yields on retail real estate properties, and the expected abolishment of the FBI regime in 2025, we will conduct a strategic reorientation with the intention to unlock value for Vastned and all of its stakeholders. In this reorientation, we will consider all strategic options for the company, including their feasibility. As already indicated, the like-for-like rental growth and a significant reduction in COVID-19 related lockdowns are the main drivers for our growth and the direct result per share with EUR 0.07 and EUR 0.13 per share. We continued our cost control despite upward pressure from price inflation with a limited increase of EUR 186,000 in 2022, which was mainly due to additional consultants costs, higher IT costs, and increased audit fees. There's still a reduction of almost 16% realized in general expenses since end of 2019. The number of full-time employees remained flat at 32 after filling four vacancies in 2022. The occupancy rate increased in all countries compared to 2021, demonstrating robustness. The high occupancy rates across our portfolio reflect the high quality of Vastned's real estate, which enabled to keep most of our properties fully let with attractive and resilient tenants, even in uncertain times. This was also demonstrated during the COVID-19 pandemic years. In 2022, Vastned concluded 43 new leases for a total amount of EUR 6.4 million. This was less than last year, when 92 new leases were concluded for a total annual amount of EUR 12.4 million. The rental change was driven by a limited number of new rents of properties that were previously over-rented. Vastned has been able to secure all lettings close or above market rates with existing and new long-term tenants that we consider well suited for these properties and locations. On average, new rents are about 2% above market rent. The EUR 800,000 rental change was mainly driven by two large contracts and previously over-rented situations in The Hague and Antwerp. We were happy to secure JD Sports in The Hague on the Wagenstraat, well above market rent. This large property in The Hague was previously rented to H&M and significantly over-rented in 2021 and before. In Antwerp, we secured Aton on the Meir 99, which was previously rented to Massimo Dutti, also well above market rent levels. The strong like-for-like rental growth was driven by higher occupancy, indexation, and less waivers. Like-for-like rental growth is positively impacted by indexation. The effect of indexation gained significance mainly in the second half of the year, in line with the increasing inflation rates in all our markets. Indexation of rents is linked in various ways to the level of inflation and depends on the anniversary dates of our rental contracts. This lagging effect of indexation was gaining momentum, especially in the final moments of 2022. In 2022, Vastned was only in the Netherlands confronted with some rental waivers related to lockdown measures, which impact rental income in January with a total of half a million euro. Vastned believes that diversification is key. Currently, Vastned is seeing signs that fashion retail is in better shape than before. This could slow the shift in tenant mix as we see demand from fashion retailers holding up better than expected. Our current share of fashion retail was further reduced to 45%. Evaluations of Vastned properties have decreased slightly with 1.2%. This limited revaluation confirms the strategy of Vastned to focus on high quality properties. Vastned continues to operate with a loan-to-value that is above its own long-term target of a maximum of 40%. At the same time, Vastned operates well within the financing governance, which mainly addresses solvency, which needs to be above 45%, as well as an interest coverage ratio which needs to be above 2%. The average rate, interest rate, saw a slight increase over 2022 as a result of the 27.5% of the debt portfolio that has a floating interest. The interest rate in the first half of the year was lower than prior year, the higher interest rates in the second half of the year are also expected to last and will have an impact on 2023. The average interest rate in 2022 was 1.9%, still flat compared to the 1.9% in 2021. During 2022, we have been able to extend EUR 200 million of our syndicated facility by another year, from September 2024 to September 2025. This was done at attractive unchanged conditions. As you can see from the graphs on this slide, our largest maturities are in 2024 and 2025. This is on a relatively short time-term, the refinancing will be an integral part of the strategic reorientation. We also want to point at the increased eligible assets value on the green finance framework from EUR 130 million to EUR 354 million, which is 25% of our total portfolio. This is only based on the value of the EPC label properties in the Netherlands and Spain. Properties need to have a minimum of a C label in order to be eligible under the current green finance facility. More than 80% of these properties have an A label or even higher. This provides the opportunity to tap increasingly into the growing market of green financing instruments. Vastned will take this into account in its plans for refinancing. Vastned proposes to pay a total dividend of EUR 1.85 per share, an increase of EUR 0.12 compared to 2021. This implies a payout ratio of 90.2%. Yeah, this is the presentation. I would like to hand back to the operator and also see whether we have any questions. Yeah. Thank you. Thank you. As a reminder, if you'd like to ask a question on today's call, please press star one on your telephone keypad. To withdraw your question, please press star two. The first question comes from the line of Gerardo Ibáñez Herrero of ABN AMRO/ODDO BHF. Please go ahead. Hi. Good morning. Thank you for taking my question. My first question comes a bit on the outlook. Why do you refrain from an outlook? Basically, which contracts are going to expire, what debt you need to refinance, and broadly, the incremental cost of debt that would imply. You normally know your general expenses and can assume a range of indexation. Are we missing something here? If maybe you can provide a bit of how to go, at least on these numbers. Thank you for your question. I think the best answer to your question is that we want to be cautious and vigilant on this one. If you look, we had a good 2022. We started also 2023 with confidence. However, if you look at the short-term interest rates, which are still rising, and also with some uncertainties, what's gonna happen? How is consumer confidence staying like it is, like that? That we said we think it's too early at this stage to give a forecast. Of course, we will come out with a forecast at a certain moment in this year when we have a better visibility and maybe some uncertainties are gone. That's the way we look at that. Okay. Thank you. Also, I have. Does it answer your question? Yes. Thank you. Also, I have a few questions on the strategy? Yeah. You also mentioned that you're gonna be focused on more on winning cities. This implies more divestments, right? What can we expect for 2023? In terms of the improvement of the mix, does it mean less fashion and more residential and offices? What can we also expect for 2023? I think, if you look at our strategy at the moment, our strategy is focused on mixed use and really also reducing our fashion, to get a better diversification in our portfolio. That strategy isn't changed. Still working on see where we can create apartments, see where we can get the right tenants in and get the right tenant mix. Next to that, we also announced that we are gonna initiate a strategic reorientation. The main reason for that is that we see interest rates rising, we see yields of retail property going up. We also have, of course, that the proposed abolishment of the FBI regime in the Netherlands. We're now really gonna focus on how we're gonna unlock value for Vastned in the long term. Also our financing will be a part of that. Our current strategy of mixed use, of adding other meters to our properties and also to get the right tenants in, that will not change as long as we have not come out to the market with our strategic reorientation. Okay. Thank you. Any other questions? The next question comes from the line of Ventsi Iliev of Kempen. Please go ahead. Good morning. Thank you for the presentation. Could you provide an update on the maturities for the debt maturing in 2024? Or could you indicate whether if there is a possibility that it could be extended as well? If you see as in our maturity loan facilities is that EUR 334 million of our loans will expire, mature in 2024. We have extended EUR 200 million to 2025. What we are going to do is, of course, also do the strategic reorientation, and also look at our— how we're gonna refinance and what will be the impact of that and how do we want to be refinanced. That's where we are at the moment, and that's also the plan we have to develop this year also, especially around financing. Okay, thank you. One more question on negotiations with tenants. Yeah. How negotiations around renewals are going, given that now, indexation is 8%- 10% in some cases, depending on the month. If I first go to how the indexation goes in our company is we have commercial contracts where we made agreements with our tenants, Our policy is that we index. The index the rate we have is what we put forward. Of course, in some cases, if you have to negotiate a new deal or a renewal and we can get better commercial terms and they ask to do something about indexation, that's part of the negotiation then. If we get much longer contracts, then of course, then, and they don't want any incentives, then you can talk about that. In general, we index and it's just then part of commercial negotiations, whether we do anything with the index. It's a negotiation, so it should be a two-way street and not a one-way street. Just asking for less indexation, that we are not doing anything with that. Okay. In other words, if the tenant is asking for a cap, you're also asking for a floor. Is that correct? If the tenant is asking for a cap. Sometimes you could ask for a floor, sometimes for a fixed indexation. You could also say, "We're not gonna pay any incentives." That's a negotiation where you end up, and that differs, can differ per situation. Okay, thank you. That's it from my side. Thank you. The last question comes from the line of Vincent Koppmair of Degroof Petercam. Please go ahead. Hello, good morning. Thank you very much. Good morning. I had a quick question on your strategic reorientation that you mentioned. Is it possible that it includes, again, thoughts about merging with the Belgium branch? I think what we have said is that we're going to look at all options. That means that at this stage, I cannot really say and say what we're going to do because then I'm already going to give the outcome. We are first going to see and look at all possibilities and the main driver behind all this is that we need to generate long-term value for all our stakeholders. And we will take everything into account and see what the best options will be at the end. What we will think are the best options. Okay. Thank you very much for the answer. In terms of ESG strategy, what is your outlook in next coming years besides green financing? Are there also different projects, maybe new acquisitions or green acquisitions or something similar? We do it a little bit differently at the moment. What we are doing is we looked at first at the labeling. That's the least you can do. For next year, what we are going to do is we're going to use the so-called CRREM methodology, and that's carbon reduction. How can we reduce? We're going to look at all our properties, see what we can do, and on the basis of those outcomes, we're also gonna set a new sustainability policy, and also, we're going to set our KPIs. The difficulty with our portfolio is it's really a lot is historic, it's in inner cities, we have to be cautious and not overpromise, we also acknowledge that we have to take steps. 2023 is going to be instrumental in that to also set our goals and our KPIs. Okay. Thank you very much. That's all from my side. There are no further questions. I will hand back to you, Host, to conclude today's conference. I would like to thank everyone for their interest, say goodbye to everyone. Thank you. Thank you for joining today's call. You may now disconnect.