COLES GROUP LIMITED. — Call Transcript 2026

Good morning. First of all, a big thank you to all of you for being here today and being able to share with you this Capital Markets Day. I think it's been a long time since last time we were able to organize these kind of meetings. A lot has been going on in the world in recent years. Every year, something has been happening that was far more important, that put the focus of capital markets somewhere else in what's going on in the world, very far away of the individual performance of companies. It was difficult to establish a relationship between any company and the markets. The markets had other things to worry about. Like in couples that are about to divorce, they were saying, "It's not you, it's me, the one that has a problem." That make it difficult to find the time to discuss about how a company is doing, what they are thinking about the future. We were wishing that this day could come, and I think that that's the time, and we are so pleased to have this opportunity to share with you where Colonial is and where Colonial is going to go in the future. I think it's a great opportunity to talk, because there's always this need to go beyond what's happening in the short term and share openly in an open discussion what's our expectations and wishes and plans for the midterm or for the future. To have the opportunity to discuss at an industrial level, let's put it this way, and not so much at a financial level. To discuss about mid to long term as opposed to a short-term view. I think it's a great opportunity, and that's why we are so pleased to have this opportunity today to be able to share where Colonial is and will be with you. In this beautiful place. I am conflicted about it, but I think it's a fantastic place. It's Madnum. It's a very good example of our view about the world of offices. You will see today how much we believe, how high is our conviction of a bright future for a certain way of approaching the office world. It's not about office, it's about experience. It's about providing the right place to be for those companies who really are concerned about talent attraction, about having the best place to take care of the best intangibles of a company, which is the corporate culture, the talent attraction, the talent retention. This is magnificent place. I hope you will be able to enjoy it before or after, where you can see the kind of experience we want to provide for the people that are joining us in this building. What's the plan for today? That's the agenda. We are going through the introduction and the welcome. We will devote a few minutes with me about the investment case of Colonial. We will go then more in depth about our operational business model. We'll have a coffee break. Afterwards, with Carmina, we'll discuss about financials, and more importantly, capital allocation framework. What's the discipline, the framework where we develop our strategy in order to later on have a discussion with Carlos about the strategic plan and value drivers. Finally, I will go through some remarks about our strategic view about the future and to what extent we believe that Colonial represents an unparalleled opportunity in the European prime office. With me, I have the pleasure of having Carmina, as usual, Chief Corporate Officer; Juanma Ortega, Chief Investment Officer; Carlos Krohmer, Chief Corporate Development Officer; and Alexia Abtan, Directrice des Investissements SFL. I hope my French is good enough. Who will be with us, plus all the investor relations team that I would like to take the opportunity to thank them for the big work they've been doing in preparing this. Also, I would like to thank all of the people that is supporting in the organization of this event. All the people in Spain and in France. The French team is here. Welcome also. I also would like to thank some of you, some of the investors and analysts that are following us for many years, that also have been providing us with insights on what's the best use of our time in this opportunity today. Big thank you to all of you. What are the objectives for today? In a way, what I would like for you to remember about today's meeting. What are the takeaways? A few sentences. I would like that you achieve the conviction that Colonial represents a unique opportunity to play the European urban transformation growth cycle. In other words, that Colonial is a really strong investment case proposition. It's a strong company, different from others. You know that one of the struggles we have in this sector, the office sector, is to say and to show and to prove that A and B are different. In fact, we would like that you achieve the conviction that Colonial is different and better. That could be objective number one. Why? Because of the positioning of Colonial in the prime asset world, which offers a clear path to value creation. Clear positioning of Colonial and clear path going forward in our strategy. Basically, two things, that there is a polarization game that has already happened in this world of office business, and that Colonial, it's a winner in this polarization game. That would be one of our objectives to share with you. Because of that our platform has a significant embedded growth to be unlocked in the next three years. Specific, well-supported, not wishful hoping numbers. Specific midterm numbers that prove that the growth expected for this company in the midterm is relevant. Again, if you allow me, that we all always and also can be aware that this growth is not just happening now. It's not that we just discover now that Colonial is going to grow in the next 3 years. To remember to what extent this has already happened, and there is quite a lot of evidence and track record of growth if you look at the past. The next objective is also to share with you that our strategy is anchored in a strong capital allocation framework. It's not a simplistic view about growth, what is in our minds. It's a clear framework of capital allocation with discipline attached to it. Within this capital allocation framework, there is a fantastic growth expectation. For us, it's as important to share with you how beautiful our expectations are of our growth as it is to share with you to what extent this is happening within a framework of capital allocation discipline. As a result of this, that Colonial is offering a strong proposition of shareholder value creation with solid short-term value drivers. Specific midterm goals, that should be one of the takeaways of this meeting, and a sound equilibrium between growth and solid capital allocation and capital discipline base case. That would be more or less the takeaways that we would like for today. I will start with section one, which is about the investment case. Where is Colonial? What is our view of the world, of real estate, of our sector? How do we see ourself within this world? First, the obvious starting point that all of you know so well, probably no need to go through this. The view about Colonial as simple, strong, and better platform. Simple. Those of you who follow many companies, I guess you will not find many that can be so easily understood in a limited time period. It's about EUR 12 billion in France and Spain. Because the strategy has been so clear for many years, the result is, well, what are we talking about? We are talking about a portfolio of EUR 12 billion, where all of it is prime. Most of it's core, and all of it is at the real top of ESG compliant. That's why I say humbly, strong, simple, and better, because I cannot think of many other investment cases, many other companies that have the same average quality in its portfolio. We always use this picture. We always use this picture because it helps to understand. We always use this picture when you go on road shows. Many of you know also with the numbers of occupancy, 100, 100, almost everywhere. We are in thriving places. We are in the best potential locations in Paris, in Madrid, and in Barcelona. One of the other messages I would like to insist is not only about places, it's also about clients. With the best clients, with the big names that are walking alongside with us. That's as important as the places themselves. Let me first go through some remarks about our view of what's going on in the office market before talking about where Colonial is today within this prime office market world. What's going on in the world? I would like to go backwards a little bit to have a wider perspective and just to share a very simple thought. The simple thought is about despite what's going on in the world, cities are thriving. Cities are expanding, are attracting, are the place to be, are where all the future about talent, about jobs, about innovation, about population. It's where things are happening. We don't have to forget the underlying trend of urbanization that is happening and happening on a regular basis. It's differential. We don't have to forget that cities are performing better than countries. This mega urban trend is consistently happening across Europe and consistently happening across time. This is the very basic of our strength. Before talking about the office market, cities are thriving. What's the relationship between this and our world? The world of Colonial, the world of the office market. Well, cities are the place where the new mission-critical social infrastructure is provided for companies. There's been a lot happening these years. We all know that the office as an asset class has been challenged because of many things happened. The way we think about it is in a positive way as an opportunity. COVID started. COVID happened a few years ago, and this was a wake-up call for many companies. Many companies, well, all the companies suddenly realized they had to think about where do they want to work, how do they want to work, if this was important or was not important. They realized that they had no tools, no know-how. They didn't have anybody in the company that was supposed to take care of this. Maybe the CEO, maybe the CFO, maybe the HR guy or lady, no answer was provided. Everybody was forced to think about it. The result of this thinking, in our view, was that for many people, they found out that first of all, for them, it is very important the intangible values of corporate values, of talent retention, of professional careers, of fostering creativity, of working in a way that allows the company to promote its values. That a big part of the success of a company was related to all of these intangible values. The paradox was that these intangible values were a lot dependent on something very tangible, which is where do you work and how do you work. There was an explicit relationship with a choice of where and how do you work with the management of all of these key drivers of the future success of a company. In getting the right answers, people realized that this important decision needed specific answers, and they wanted specific places. They wanted specific places where they were providing to the employees, to the people that work in any company, the right level of experience outside the building, inside the building. That has become key. [And] I think there is a big conclusion today among many different companies that this really matters. What is the problem? Well, not the problem. What is the opportunity? That those places where opportunity is happening are not very much. There is a structural scarcity of the right place to be. This has been clear for the few years that we've been following after COVID. It happened already before, but now it's becoming even more strategic. In the meantime, demand is high. Supply is by definition short. The number of companies that thought this is important for me is higher than the available space that they are looking for. This is creating a balance between supply and demand that is different in certain places. This is a slide that we use sometimes when we meet investors. We take the example of Paris, and there's a lot of discussion about how Paris is performing. We always like to highlight, "Look, are you talking about my Paris? Or other people's Paris?" Because depending on the place where you are, the absorption of supply may take two years, three years. Depending on where you are, it may take six months. Depending on where you are, there are a lot of new supply that's coming that we don't know where take-up is going to be. Depending on where you are, there is no relevant supply in the foreseeable near-term future. This, let's say, reality, you can extend it to Madrid, you can extend it to Barcelona. Polarization has already happened. I think that's obvious. What should be the number, the KPI that would prove this theory that polarization has already happened, and that supply and demand have a different balance depending on the sub-market you're referring to? Well, it's obviously rental growth. It's obvious that rental growth has shown a very different path depending on the kind of sub-market where you are. Consistently, we, as Colonial, have been showing above, and we'll see today again, above-market rental growth, above-inflation rental growth. The expectation that we have for the next few years is that this path is going to remain. This polarization game has also meant that the market, the product is being fragmented more and more from platinum to gold to silver to very politely called bronze kind of places. Different sub-markets with different range of rents attached to this. Where does Colonial sit in all of this? Well, we've been in this market view for many years, as you know. Many of you know us, and you know that the obsession about the quality of the product, about the positioning on the right place has been following us in Colonial and SFL for many years. We have the positioning, which is not so obvious in some of our colleagues. Therefore, we have the track record. It's not that suddenly we find out that that's our way of thinking. We have it on an international way. We have France and Spain with a long track record, and we do it as we will discuss today in a proactive way. We are not passive holders, a collectionist of buildings. We think a lot about how to enhance the experience of every individual building. As a result, we are the dominant player in key European gateway cities with strong growth perspective in this market. We are at the top of property owners in prime CBD in Madrid, in Barcelona. In Paris, by the way, we are the most important owner of the highest level of trophy assets. We have five out of nine of the top trophy assets in Paris. This has proved to work nicely in the past. Our EPS has grown with a CAGR of 19% 2015-2020, 8% 2021-2025. What was at 12, today is at 34, and EBITDA has been sustainable, solid, growing. Let me be more specific. That's because the way we approach our strategy, it's a little bit more complex than just to say that we like the high experience prime CBD buildings. We have three levels of strategic thinking. We like to own and manage prime CBD operations. So we like to have an important portfolio with the best trophy assets. Here, the key message that probably Juanma and Alexia will explain better than me. The key message is we are proactive managers of everything we own. Most of what we own, either we develop it or either we refurbish it. Second level, we always try to add a second layer of enhancement of our returns with new projects. The Alpha X projects. The X is not about what you may think. It's about number 10. It's because we've done nine projects before. It's a long story of going through this. It's a new wave of projects that we are going through. Third, it's about thinking a lot about buying and selling and finding new opportunities of value creation for shareholders. Maybe the comment for today, because this has been around for a while, is that you will see that the way we are approaching this in the current market conditions is with an additional layer of flexibility. When we talk about Alpha X projects, you'll see that first of all, our strategy is prime CBD. When there is the window of opportunity of create value through urban transformation, we do it. We always did it. We can provide examples about 10 years ago, the Mandarin in Paris. Many examples. We believe that in current market conditions, you have to be more aware of this and be more close to these opportunities. You will find that sometimes in our capital recycling policy, our strategy is more open to urban transformation because of tactical reasons related to shareholder value creation. The other comment that probably we will have is about geographies. We believe that since the market has been evolving in a way that it's being transformed in these two sub-markets, the prime and the secondary, the level playing field for developing prime must be wider. You cannot think about a bright future for a big company doing prime by thinking that you will just walk Champs-Élysées up and down, buying and selling things in just one street. You have to think that you have the capabilities to do what your platform knows how to do in different places. We'll talk a little bit about the way we apply this philosophy. Quick comments on this investment case view. Well, sorry that we will hammer a little bit on this during the morning, but this has been already proven for a number of years. If you look at the Like-for-like gross rental income growth, it's been, number one, consistently above inflation for many years. Many of you will remember that when inflation started, the question for all of us, for the industry was, "Are you really able to pass through the inflation? Will you do it?" Because if not, it's a disaster, but if you do it's super important. In fact, markets behave as if you were not available. Years have gone by, and the spread versus indexation, versus inflation has been very important throughout all of the years. That's message number one. As a result of this, the numbers of like-for-like growth have been remarkable. Look at the seven and eight and six in the last four years. Which lead us, again, to a humble remark, which is, and this is happening also with a differential, with a gap versus our peers. Which is maybe not because of us, maybe it's because of the sub-market where we are. The other thing about the investment case, which I already started to mention, but we will go through this because we are doing new things all of the time, and the question is, well, what's the logic of these new things that you are doing? Does this mean that you are revisiting your strategy? What's the framework? The message we want to pass to you is we always did this. Many of you we have met in many places, in many meetings, on roadshows. Me always saying the same. Very simple balance sheet, 80%-90% yield income producing trophy assets. 10%-20% new ventures that enhance our return. This combination is better than a plain vanilla passive owner of trophy assets. That provides better returns without compromising the risk profile of the company. It's always been like this. That's why you will see that in our investment thesis, there are always new kind of ventures getting into the investment scope of the company. The overall conclusion is that our focus remains the same. This is in a framework of capital recycling. Where do we buy and we sell? I won't go into details. Juanma and Alexia will go much more than me into details, and maybe Carmina, too. We've been buying and we've been selling, and basically, the message that we'll share with you is that this is done under a very strict framework of capital allocation with a very strong view on capital structure, on what are the things that we can do and what are the things that we will not do. Where do we stand today? I will finish with this initial approach to our investment thesis. In this capital recycling view, currently, we are marginally more on divestment mood and deleveraging mood than on the investment mood. That's how we believe we have to manage the cycle. We announced a few months ago a disposal program of EUR 500 million. Juanma will cover this. This is going super well. He will remember to you that everything we've done for many years, all of the several billion EUR we sold always at NAV or GAV or a premium, again this time, and being executed in very good rhythm, in very good speed. Based on these results of this program, we are envisaging an additional program of divestments that by now looking at the market, we are seeing around EUR 200 million. That's the disposals. The new investments are more in the range of EUR 200 million. About the EUR 200 million, the investment thesis. It's all about prime, first of all, as the first remark before any other consideration. First of all, our mission statement remains the same. Which are the caveats? Well, first of all, we may consider doing different things. Let's not forget within a framework of capital allocation discipline, but open to two things. One is the way cities are evolving in Europe today. Sometimes there are windows of opportunity for higher value creation in a different use. We are not shy about this. You just walk through some residential here on your path towards this meeting. Well, we did it because when we bought this 100,000 sq m, eight years ago or something like that it was, we thought 100,000 sq m, this part of town, the best use is putting at least 30,000 of residential and the rest office. We did it. Who did it? Us. We did all of the development. Albert here played a big role in this. We did it. About the strategic thinking, the outcome was we sold it. We sold it at a nice premium. We are not shy about this. We do it on a regular basis. We did the Mandarin Oriental in Paris just some years ago. We are doing a hospital in Barcelona because a much better use than a traditional office. We are also considering, as we'll talk now, a big project of student accommodation in Madrid. This is extracting maximum value from our platform, from the skills of our platform. The other remark is, this prime can happen in Madrid, can happen in Paris, can happen in other European cities. We are currently looking at opportunities. We are currently looking at opportunities in Germany, and we are quite advanced in doing something in a German city. Why this? Well, first of all, as I say, it's not about Germany, it's about prime. We want to have a level playing field as a market that is wide enough for us to develop our capabilities. Does this mean that we don't like Madrid, we don't like Paris? No, we like them. There's a picture that somebody told me. Look, this picture here you see in the middle, it's about an asset that is not ours. Yes, it's true. This is an asset that is in the market as we speak. I don't know, maybe you saw it in the press. It's Les Bermudes. It's a trophy asset project that is in the market as we speak. We look for it. Did we like it? Yes. Were we ready to invest there? Yes. By the way, this is a EUR 400 million a year project with a number of investors that want to come with us. We are allocating a limited amount of our money. What happened? Do you remember the Trocadéro experience? A trophy asset comes in the market. 12 people queuing for that asset, which is interesting. We may talk about Paris, but that's a good example about the different dynamics that are happening in Paris. We bid for Trocadéro too, with a number of investors that were supporting us. That's another remark, because we don't compromise our expected returns. We were expelled and thrown through the window in the early stages of the process, which for us was sad and happy at the same time to see the market dynamics. Les Bermudes has been a little bit of the same. We've been thrown through the window quite soon. Which tell us some remarks or takeaways. We don't want to invest in Paris, of course. Are we condemned to a future where we are walking Champs-Élysées up or down looking for these kind of things, and when we have one, then there are 15 people surrounding us wanting to chase this at an unreasonable IRRs according to our judgment. Our level playing field has to be wider. What is happening in Germany? There's no 12 people for a prime trophy asset in the negotiation. The expected returns, adjusted for risk, adjusted for quality, are higher. Why shouldn't we take a look at this? That's what we are doing. These are the dynamics. As I said, more driven by real estate judgment, micro analytics, not so much about macro. If we have to have discussion about macro long-term view of the markets, we can also have a discussion about the future of different geographies in a few years. I think that only talking at the level of real estate rationale, it makes a lot of sense. My final remark is, all of this in a framework of being prudent. The problem when you do something new, even if it's tiny, it's that people get the impression that we are doing nothing else but this, and that's the company, the new thing that we are doing. We have a more, let's say, wider view. You have bring us your confidence in us managing a EUR 12 billion portfolio, and we believe it's wise to devote EUR 200 out of EUR 12 billion to these things. That makes sense because it's within a framework that makes sense, but this doesn't challenge our strategic view. That remains crystal clear what we have to deliver for shareholders in the present and in the future. These are investment thesis. Going back to what I mentioned before, the plan now is to walk you through a deeper view of our way of approaching the management of our assets, then a view of the financial background, the capital discipline, and again, this capital allocation framework that is embracing everything, to end, coming back to our strategy, to our new investments, and to the future that we expect for Colonial. This would be my first presentation. I probably already killed the agenda about timing. Sorry about that. We'll manage it. Since I'm the last speaker, I will be the buffer to adapt for everything to take place in the right timing. Thank you. I give the word to Juanma and to Alexia. Thank you. Thank you, Pere. Welcome everyone here. I think it's a privilege to see you here in Madrid. As Pere was saying, let me just take one minute. When we land here the eight years ago, it was a massive plot. Some of the investors would say at that time, in the middle of nowhere, they were completely wrong. We're just, and you may notice, seven minutes away from Atocha high-speed train station. We are so close to Castellana, and we realize this was part of our DNA. I think you have felt the atmosphere today just walking through and coming to this auditorium. Everything that is going to be said during this presentation, together with Alexia, is with regards to this DNA. Forgive me if I just repeat some of the message of Pere. Maybe I have the privilege to have this presentation before the coffee break, so I will try to be efficient. As Pere mentioned before, it's all about the three pillars that form our prime business asset class model. This is within three main pillars. The first pillar is with regards to our existing portfolio. Our existing portfolio, we don't buy or we don't hold the assets and that's it. End of story. It's, I would say, regular work with the operational teams, thinking about how to squeeze the value every day of these assets, how to increase the growth, how to create value. This is what we are devoted to. This give us and enable us to have this pricing power and differentiation effect from other peers, and as it's been disclosed during the first presentation, to achieve over time a strong reversion with this spread. Second pillar, it's with regards to our capability to transform assets from the scratch or through full refurbishment. We've done it. You will see in a later slide, during many years. The most important thing, we have harvest and show to the market the returns that we have achieved. It has led us to have this superior value creation. The third pillar, it's so important in today's environment. Through a very disciplined framework, We don't just take by coincidence decisions. We are doing everything through a smart asset allocation model. We are buying at the same time we are disposing assets. We don't say, "During these months, we are going to acquire assets." We are doing everything at the same time to create value. As a result of this strategy, sometimes we are more inclined to deleverage, to be strict and prudent with our capital structure. Others, we want to rely on the cycle, and we want to make the most of the opportunity, as Pere was mentioning before, in different places where we are sure we could be doing returns in the future to come. If we start, and I think it's obvious it's been said, the value of our portfolio relies on it's a unique and irreplicable portfolio comprising in excess of 80 amazing, prominent, standalone assets in the three cities we are today. You can see here the pictures. Obviously, it's worth the image rather than the words. All of these assets have been transformed by Colonial, have been created by Colonial in many different situations. Either from the scratch, from a plot in the middle of nowhere, to full refurbishment like Diagonal 530, to the change of a project like it was Velázquez, that it has become the reference in the prime office sector in Madrid. Many, many different situation. I think this portfolio, as Pere was mentioning, cannot be replicated. Those landmark assets in these locations where there's a chronic supply shortage. There is a value behind, and that explain why we are so persistent in trying to get and extract the maximum value of our assets. It's about location, obviously. It's about being in the prime CBD areas. I think we are obsessed, but it's part of our passion to design the best products. When we come to this, we try to have this driver of our clients. How can we enrich the experience of our client? That's why you can see here in the screen, we have three pillars for the design of our products. We want to foster experience. We want to have efficiency and through the best environmental standards. If it comes to experience, you have obviously first factor, location. It's essential in this polarized world. That's why and explain, as we saw before, we are close to 100% located in central CBD and prime locations in Paris, Madrid, and Barcelona. We foster the experience of the client through the combination of different areas. This is a great example. You may see later people coming. Well, probably today is not a good example because due to the Pope visit to Madrid, everyone has remained at home. We were expecting the city to be a chaos. Maybe today is not the best example, but I just welcome you to come here, to come back, and to see all the employees coming to the food and beverage areas, to use all the coworking spaces, all these services of the auditorium, et cetera. What are we doing in terms of design? We are trying and 58% of our properties provides large floor plates that links to efficiency together with the horizontal buildings scheme. That has made us possible to have this multi-tenant, de-risk client base. It's not about one sector, it's not about companies of one sector. It's about companies of many different high-margin sectors. When we speak about the environment, you all know we are top-ranked in best-in-class sustainability certifications on all the environmental and ESG policy. Maybe now it's worth if you just can tell us about clients. Thank you, Juan. Good morning, everyone. It's true that this active management approach is probably the result of the quality of our portfolio. You have seen it. It's also maybe the fact that we have internally all the functions to handle it, to promote it in order to do one thing: To attract and to retain clients. Even if location is clearly still the first criteria for companies, prime offices are no longer just about location. We have talked about many project. Madnum is a tremendous example. Now, companies are willing not just to have places to work. They are willing to look for strategic tools in which every time we design bespoke space in order to, again, meet the needs of the most demanding and sophisticated clients. We have obviously many examples on this slide. In all the cities we are invested in, and especially across several sectors, we have amazing clients and very prestigious clients. We can tell about tech companies with Meta and more recently, Pinterest. We have also clients in the finance field with, let's say, many of them like Grant Thornton or many others. We have also fashion industry with LVMH, Alloe in retail also units, as well as many others and so on. The idea is to do this kind of amazing project every time, and a good illustration and a typical illustration could be Édouard VII, as you're seeing here. Édouard VII is a masterpiece. He's really almost a piece of Paris, more than one hectare site in the middle of the 9th district, one of the most sought-after area, both for companies and employees. This is a mixed-use complex, and if we are reminding all the criteria Juan just told us regarding what we are expecting and what our clients are expected, it's a large-scale scheme, more than 54,000 sq m. With large and horizontal and very modern floor plates, even if the architecture is very typical of a Parisian style. It's also mixed-use and multi-tenant. We have more than 14 office tenants in this building, creating a real attraction and vibrancy in this complex. When we are talking about mixed-use here, it's about the district, the area, the direct area, but also inside the building. We have, obviously prime offices, but also a retail mix that creates really vibrancy in the area, as well as a hotel, two famous theaters, including the Olympia. We have also residential and living units, also co-living inside. We have a public parking, we have an auditorium, meeting rooms, and also dedicated services to the office clients, from a restaurant to a cafe, as well as a fitness center and a bike park. I have many other examples of this kind of project. I could talk to you about Cloud, about Washington Plaza. This is the typical kind of product we want to invest in, we want to develop. In order, again, to meet the client's expectation, these buildings are fully occupied with consistently strong rental growth. This is what we believe is the new trend. Could be in the next few months, AI companies that are looking for these kind of buildings. We are really trying to do our best to develop, again, increase this kind of amazing landmark in our company. How we do that? We also use our competency to develop, with the Alpha X project. Juan will talk about it right now. Okay. Thank you very much, Alexia. Yes, going through the second pillar. It's been said at the beginning that we have constantly and consistently contributing to the value of the company with the transformation of projects during the last 15 years. Here, you may see two generations of projects. It's not about one big project and period, full stop. It's about many different projects. This is explaining why we are talking about Alpha X. We are not talking about Alpha 2. With this regard, under our discipline, we are reaching 9%-10% unlevered IRR returns with capital gain on cost blended basis from 50%-70%. I would say outstanding and very famous projects within the different cities where we are working, reference that we've been awarded over the years by many different organizations. You are going to visit today, obviously, Madnum. You're going to visit Velázquez. You can see here how the large scale of the projects, the critical mass. Some of them, we have already sold them, and this is linked to the third pillar. Let me just go quickly because we have already spoken about Madnum, and maybe it's just worth having this tour and answering the questions during the tour. This is what I said before. See at the left-hand sides what was the reality of Méndez Álvaro some years ago. What is today? Well, many different institutional investors have come behind us, and they have developed other schemes, residential schemes, PBSA, flex living, retail, hotels. It was not just to develop an office property. It was about urban transformation. We have clearly transformed this urban area. The mayor, his team, and the town planning authorities have called us many times. I just remember a week ago, they said, "Look, we want you to have a leading role in designing priority areas of new development in Madrid, because we want more Madnums to come to the city." It's not just one asset, and I think we can say this with many different projects that we have shown you in the past. Obviously, it's not just a design, it's linked with the client attraction that Alexia was mentioning. If we can attract talent, we attract, obviously, companies. We make employees, they would like to come here, and they are not complaining about coming to the office space, and this is contributing to the benefit of our clients. Here, you can see that we have already achieved 88%, but I think the good news is that probably in two, three months, we will be reaching close to 100%, 97%. From underwriting rents, we have exceeded 25%. At the beginning, this was called a second area within the M30 ring road outside the CBD. Today, because the rental performance brokers want to have Madnum as part of the CBD. This is a reflection of the urban transformation effects. If we move to super prime area, I was saying, like Velázquez. Velázquez has been a super successful project. We started negotiating with the existing tenants. Those tenants were paying EUR 18, EUR 19, EUR 20 per square meter per month. Our first objective was to, let's say this way, get rid of those clients to start with the transformation of the asset. It was a complex project, but we did it, and we moved some of those clients to other properties of Colonial, like Discovery. I think the design is, you'll see later, it's state of the art. One of the most attractive terraces within the city. We have innovated in the sense that the operational team led by Albert, they have included common areas within the gross lettable area of the clients. They are super happy to pay for those areas because they enjoy those areas, they use those areas. Later we will see this. Alexia, maybe some great project in France deserve your words. Thank you. You are probably very familiar with this operation in the middle of the heart of Paris, which is called Louvre Saint-Honoré in-house. This is also a large-scale, mixed-use building, more than 45,000 sq m. Let's say half office, half retail. If we take a look at the operation on a value creation standpoint, this is again a tremendous success. You can see on the slide, we have a value creation with a multiple of almost three, which is impressive. The idea is to understand how do we achieve this kind of project? Clearly, it's a middle to long-term view. You have to have a lot of convictions, and ambition, and discipline. First of all, we pre-let and secured all the retail area by signing a 40-year firm term lease with one of the major luxury brands in the world, which is Cartier, to locate their new foundation, which was previously in the 14th district of Paris. 40 years with 20 mandatories is unique in France. We have co-created one of the most sophisticated, innovative, and very highly technical projects designed by one of the most impressive architects, Jean Nouvel. Our team managed all the administrative authorization, supported, which is important, by the City of Paris. Comes the hard part. We had to handle the fact that this project was one of a kind, very unique, very innovative, but we had to take into account all the technical requirements, and we signed at a very early stage, a contract with VINCI in order to verify if it was technically feasible, and also to define the right methodology to deploy this kind of project in a very dense environment. You are in front of the Louvre, the Conseil d'État, the Ministère de la Culture, and so on, which was really tricky. We probably would have failed at many stages without the help of a unique team as well as unique advisors, clearly. We delivered this project to Cartier earlier than expected, in July 2023, in order to let them do their own works, and the foundation opened to the public in November 2025. The project and the work on this amazing asset is not over. We are now in the new stage. Eric will be happy to talk about it during the break. To refurbish and reposition all the office to let this amazing building become the prime office building in Paris. We have already signed 7,000 square meters of offices at really high level of rent. There are still a lot of potential to capture in terms of rental growth in this building. We are already very happy to be the owner of this kind of amazing landmark building in Paris. We will definitely continue. That doesn't mean we doesn't think about rotation in some point regarding our portfolio. Juan will talk about it. Okay, before jumping on the smart asset allocation strategy, just have a look to the midterm EPS main driver through the existing projects. I think we are running out of time. Just a few comments about them. In Spain, we are transforming the former headquarters of Deutsche Telekom in the 22@ prime area for a hospital. In left-hand side, you can see we have already signed 30 years contract with 15 years mandatory with one of the main players of the healthcare area. This is in the Bupa group. It's Sanitas. Now we have a very good news because we have been granted with the license. We are progressing with the project. We have signed rents at EUR 29 per square meter per month. That is almost 111% increase on the former rent, 20% above the prime office rents in the area. In Spain to highlight, it's going to be a reality in 2028, fourth quarter, is the full transformation of the headquarters of IBM. Those headquarters developed in 1986. It was obviously an outdated. It was like a museum. We love it when we inspect it. It was the kind of offices of the 1880s. Now it's going through a full reconversion to one of the, I think, vibrant and promising living concepts within the M30 of Madrid. We have gained buildability, around 7,000 sq m. We are going to have an increase of 70% of the existing rents. We have already met an agreement with one of the main players of operators of the living arena. Maybe a few words about France, Alexia. Thank you. Regarding France, one other key point of our strategy is also to invest in main gateways in the cities we are invested in, Paris and Madrid, obviously. These two projects are located next to a main transportation hub. Scope is positioned next to Gare de Lyon. It's a major transformation of this previous Natixis headquarter. It will be best-in-class product, definitely, with high visibility through its new bioclimatic facade, as you can see, with obviously large and modern floor plates and a very defined and designed offer of services. It will be delivered by the end of the year. We are currently in the leasing process. We are targeting an unlevered IRR of 9% and levered IRR of 13%, and we are happy to announce that we have already secured the first contract prelet yesterday. Condorcet is the same kind of vision, but in a different area. It's next to Gare du Nord, which is an amazing connection to many European cities like London, obviously, Brussels or Amsterdam. This is also a one-hectare site, an amazing mixed-use urban campus development, which mix offices and residential. We will host student housing accommodation, as well as 22,000 sq m of brand-new offices that combines perfectly modernity as well as heritage. Meaning that you will find all the design and architecture of the Parisian-style city, as well as very flexible and modern floor plates, which will probably allows us to attract a variety of potential targets from tech to AI, as well as media and fashion companies. The delivery is expected by 2027. We are also targeting 9% unlevered IRR and 13% after leverage. The process of leasing will start in the coming days, but we are very confident about it, as well as the ongoing works that are without any concern on our side. Okay, let me just go very quickly. I'm seeing the script read numbers now. Within the third pillar of our prime business model, it's our capital recycling strategy. What we've just disposed over the year, EUR 3 billion of assets disposed, what kind of assets? It's easy for us. All these assets that do not comply with the attributes we would like to develop to squeeze that portfolio that we were saying at the beginning, those assets are no longer in our wishes. This is our first target. Second one, it's all those assets located in outskirts or peripheral locations. As a result, you may see here the active strategy of disposing all of these assets over time. I will take some time to speak about the recent disposal plan and the new disposal plan, with regards to the acquisitions, always with this objective of creating value through prime factory, through value-added opportunities. You will never see Colonial coming into the market and buying a 3% initial yield property with no upside potential. That is not part of our business objectives. Today, where we are and linking with what Pere was saying, that we are so disciplined, and we are inclined to the deleveraging process. With regards to the first disposal plan of EUR 500 million, here it's disclosed that we have already executed 70%. It's wrong. It's not 70%, it's close to 80%. The reason behind is because we are actively doing further disposals over the last week, and Carlos is not going to be changing the presentation on a daily basis. As an example, unfortunately, I need to leave you because we are closing one transaction today. At 12 o'clock, we are selling one of our residential, granular residential assets in the outskirts of Madrid, worth EUR 20 million. Tuesday this week, we sign a commitment, further 19 dwellings in Zaragoza. We have already visibility for commitments of the residential portfolio accounting close to EUR 100 million before August. Probably for the first disposal plan of EUR 500 million, we will be reaching close to 92%, 93% before summer. Together with this, it's been announced a potential additional program of EUR 200 million. Obviously, this is due to the fact that we are constantly working on new disposals. We have together identified many different situations comprising seven to eight assets where we are having different bilateral conversations with different investors. Let me just reinforce and hammer the message that we always have conversations on appraisal value, and normally with a premium on appraisal value. It is not a bullish talking. You know this because you've seen over time, over the last 15 years. We could have visibility as well before the year end for this additional EUR 200 million. Just a few words on the acquisition sites from the science and innovation acquisition last year. First message is the existing portfolio is going well, is going as expected in the business plan. Many lettings have been accomplished with clients under the science and innovation arena, critical infrastructure, stick clients to the real estate properties. Just Pere already mentioned, the two projects we are today involved, one, it's the creation of a leading platform within the M30 Ring Road in Madrid. Madrid, the megatrend is amazing for living. Just to give you an example, I think in the U.K., one bed each eight students. Spain, one bed each 17 students. Inner Madrid, within the M30 Ring Road, it could be even higher. Following the scarcity, following the megatrends, we have progress with a potential creation of a living platform without making any further investment. Lastly, it was what Pere mentioned about different opportunities in gateway cities in Europe with a prime approach where we can find some upside potential, some rental growth in only these kind of assets that we are fully convinced we can extract value in the future. From us, this has been the description about the business model. I hope you have enjoyed, and let's go for a coffee. Thank you very much. [Break] I don't know if everybody's here in the room. Still people? Yeah? Okay. I think we can start with the following section. Thank you again for coming. I would like to spend almost 20 minutes of my presentation on what we really think is the backbone of what you have seen and what you have heard this morning from Pere and from Alexia and from Juan. Basically, the financial foundation, what underpins the business strategy and you will see how we manage our financial side of the business, and why we believe the framework that we have built gives us this, I would say, secure and very high visible, and the right direction for the growth that we are going to show today. I will cover basically three things. One would be where we stand financially today. The second thing, it's how we work and how we envisage the capital allocation framework, how this all in, it's being translated into the returns as well, of course, and the growth for the total shareholder returns for all of you. Let me start first with a simple observation. Over the last decade, the EBITDA has been growing almost two times. The EPS has been growing almost three times. This is not a coincidence. This is a meaningful growth. As you can see here, this growth keeping the long-term value in the range of 36%-40%. Basically, in our track record always. I will come later to explain how. Basically, we are very focused on combining this binomial of growth and discipline. For us, it's a very important goal to keep in every single decision we take in our company. Growth and discipline can be done jointly with a good strategy and a good balance. This combination of growth and discipline over the full cycle, it's what you've seen here, growing, keeping the metrics on the ratings, and even enhancing the ratings at the level that we would like to be, which is this according S&P BBB+ and according Moody's Baa1. This is the rating that we need to be focused, where we want to be, and the range that where we want to be inside when we run our business. This is deliberately being decided, being and keeping our metrics inside these levels, maintaining the growth strategy as you know very well. What is behind this? How we actually think about our balance? First, let me go to the liquidity and let me go to the maturity profile of our debts. I think you know very well how is the maturity of our debt, but the message that I want to share with you is that behind this is a very active as liability management. You have seen what has been very actively in the balance sheet. You see and you know what is behind our liability management, managing every year, every month, what could be improved, our key metrics in financials, how we can extend at better conditions, how we can include additional banks. Some of you are here, thank you for the confidence on Colonial project. This is what is behind all these metrics, and this is what our teams, some of them here, are working every day. To enhance and to have the best liability, the best debt. Pere, our CEO, always tends to say that we have the prime assets, we would like to have as well the prime debt. This is how we protect our balance sheet. The liquidity risk always has been kept at EUR 2 billion, roughly. Today, this liquidity covers almost maturity up to 2029. It's true that today we have a very interesting cost of debt, 1.9%, maturities of four years, and improving and enhancing these maturities in this active asset management, and keeping the investment rating in the higher end. These are solid numbers, it's true. The question naturally probably you would may raise, it's how confident we are to maintain these solid numbers. Probably one of the key tests to answer this question about having the best debt is the bond market. The bond market is, we try to look at them as a useful external perspective and the test, and a nice test to see if there is a good test for us and for the appetite from the institutional investor of Colonial debt. You can see here the five years spread. We are now in the lowest range of spread for our bonds, well below our peers with the same rating. I invite you to compare this spread with other peers with the same rating that we have. Basically, because behind this, there is a lot of credibility in the strategy, a lot of visibility on the cash flow, a lot of quality on the cash flow, and this is behind this spread above or better in the markets, better than our peers. This is probably that it's a genuine conviction from institutional investors in the underlying credit quality. This is one of the probably data. It's about the solid investor appetite. It's what we experienced in the recent bond issuance. By the way, green bond issuance, you know that one of the key strategies in our run across our portfolio are to be in the high end of all the green strategies. We have been, or we were in the past, the first real estate company in Spain issuing green bonds, and all debt, green bonds, sorry, and term loans and revolving facilities, all of them are green debt. We experience a very solid investor appetite, reflecting this confidence in the recent issuance of bonds. Basically, we tapped the market last year of EUR 1.8 billion, and we received an appetite, or we received an oversubscription of almost 4.4x. This is a demonstration that our paper, our credit metrics are well-received from the institutional investors. As you may see here as well, our group Loan-to-value has been decreased since 40%–37%. As well, the net Loan-to-value improved 200 basis points, and the Net EBITDA improves as well. I will come later about this trend of deleveraging. Now probably let me go forward about what it's our financial approach. In this section, I have shared now what has been our key financial metrics as of today. These are not a coincidence. Where we are today, it's as a consequence, or thanks, to a very disciplined capital allocation and a very disciplined financial framework that we work every day. At the center of our financial approach, it's a framework that we have built. Let me explain a little bit this chart. I will cover the different parts of this chart. This is very, let's say, with an image, how we manage the company, how we approach any single investment, and how we manage the objective of our shareholder return, keeping always the financial discipline. It's a framework built around three interconnected priorities: capital recycling, financial discipline, and shareholders remuneration. They are not independent. They are interconnected among them. Each one enables the other one, and discipline, recycling of capital funds that you've seen before from my colleagues, Alexia and Juanma. These disposals of funds investing at better returns. Financial discipline preserving the credit metrics, the rating credit metrics, and together we generate this ambition of shareholders' return with a very, we'd say, solid and predictable cash flow. Let me walk now through each one of the boxes. On the financial discipline. Here, some of you always talk and ask about what is exactly the metrics that we need to put as an objective on the financials. We always answer, sorry for that, we say always the same question, which is the reality. How we approach our financial discipline, this box, very important, to keep this binomial, keep this balance between growth and discipline. How we approach the financial discipline, it's the same way how the rating agencies approach our credit metrics, our credit rating. They evaluate, and this is very important you consider in your approach to Colonial, because it's different than others. They consider the business profile you've seen before in the initial part of the presentation. What does it mean, business profile? Business profile means high-quality assets, unique assets, well-located, good collateral, good contracts, good tenants, high occupancy rate, high releases spread, and pricing power. This is what it means, the business profile. The consequence of this business' strong profile gives us a lot of certainty on cash flows. This is different than others, and you should consider when you approach Colonial in terms of financing metrics. The other, of course, the other vertical, it's the financial profile. As you see, and we share with you in every quarter, strong liquidity position, interesting hedge position, secure interest rate, high visibility on the interest rate for the future. I will come later on details on that. Rating, robust policy, financial policy, resilient capital structure. When you go through, as I mentioned before in my previous pages, when you went through the growth that we have devoted and we have delivered during the last decade, always has been with this discipline, financial discipline, in the range of this loan-to-value, in the range and below with some room with the metrics on the investment grade. What does it mean that growth and discipline can work together? This is what it means, financial profile. Of course, operational. We have a track record of solid tenant base, and we have a track record of strong management and governance in all our operations. All has been, this is the set that the output of these three verticals is the rating. These are what the rating is considered. These are what we consider in any single approach, in any single investment analysis, when we include this analysis in our business plan, always we reshape with these three verticals. Are there, according our business profile risk, high quality, prime location, release spread, additional returns? We can operate as we have our capacities in place. It links the output. It's the rating by investment grade. Why we think this strategy? We think that the financial strength is an asset by itself, but how we manage them in terms of metrics that some of you are asking for. This is probably the page that you would like to see. I would like to explain this page. You need to consider this page accordingly with the previous one. Because isolated, this page, it's one part of the equation. This is not only the equation that the credit metrics and the financial discipline looks like. It's not. [But] some of you asked about what takes our target look to value, how it's translating. Here, internally, again, for us, the main goal is the investment grade. What does it mean, investment grade? Metrics, in that case, we have taken S&P. The S&P look to value between 35%-45%. Where we are today, we are below the limits. We have room to manage any optionality in investment, any volatility in the market. We are confident of keeping in this range. What it's translating in this range by S&P to what you would like to listen, to loan to value, to EPRA loan to value. To IFRS loan to value or to EPRA loan to value. Basically, to keep this range 35%-45% S&P Loan-to-value, it is translated into group Loan-to-value maximum 42%. Today, we are at 37%. Our internal goal, being a little bit more conservative, is max 40%. EPRA Loan-to-value, the translation of S&P to EPRA Loan-to-value, it is maximum 50%. Today, we are at 45%, our internal rules are at 45%. These are one part of the equation. These are behind our discipline in combination of what you've seen previously. These are the boundaries which we are included inside the rating metrics. We feel comfortable in being inside these metrics. Our business plan, considering the existing market condition, shows the leverage on these metrics around 150 or 200 basis points on the Loan-to-value. This is a deleveraging trend. Being inside these boundaries, we keep what we want to be in the rating, the maximum or the high end of the investment grade. We can manage with buffer enough, with room enough, any market volatility and any investment opportunity. On the Net EBITDA, which is the other key metric for us, a company with Colonial, with the quality of the cash flow, with this predictable cash flow, this is something with the rating agencies, they feel very comfortable. The standard stabilized Net EBITDA should be in the range of 10x-12x. This is the stabilized Net EBITDA for a company like Colonial. Where we are today, 15. Why? Because we have a very important part of Alpha X that you saw before, going in the right direction. At the end of this Project Alpha, Project X, at the end, when these projects will be mature, the business plan reached these 11x, between 10x and 11x Net EBITDA. Why we are not today? Because we have almost more than 10% of our portfolio not income producing. If you exclude this effect, of course, our stabilized operational part, the first column or the first pillar of the growth, it's 10x, 11x. This is how we envisage our global financial strategy without having any rating pressure. The answer about growth, because some of you, I would like to see more deleveraging, I would like to see more disposals, but this plan shows a deleveraging trend according to today's market condition. This plan show a balance between growth and discipline, so we can deliver growth and keeping discipline. This is the financial metrics. How we protect the cost structure? This is also another question that you raise sometimes. First message that we would like to share with you, our debt for the following years will show this profile between fixed cost and hedge. Then will come what is the level of this cost of debt. Thanks to the bond issuance that we have done in place, thanks to the hedging that we have in place actively, this is not a strategy. This is one short strategy. This is a permanent strategy to protect our balance sheet. We have been consistently executed. This is the profile of our debt that will look like for the following years. Mainly up to 2028, mainly at 90% average, it's being covered fixed and today with a high visibility on the cost of debt and very limited, as you see, exposed to the market conditions. What is the reality in terms of cost of debt? It's what you see in the right-hand side of this slide. The cost of debt that we will have for the following years will be well above market levels. This is not a coincidence. This is behind our active hedge strategy, our active balance sheet strategy. We have created a lot of value for you during these years. We have still a lot of value to crystallize in the following years, thanks to this hedging. This is a real advantage of Colonial to others. There are few players, few peers that they have this position, that secures our growth coming from the operations, secures a path to growth, a very clear path to growth that I will come later. To give you some additional, probably numbers, I don't want to cover in a lot of details. I'm happy to disclose and to answer any question if you have. Some of you as well, you were asking about, "How can I have some visibility? How this mark to market, or how this value of hedging, it's being recycled into the P&L?" Basically, three main ideas you need to take from this page. We have created a lot of value from the hedge. Since when the rates were negative, we took a very smart position of covering future cost of debt for the future maturities in our bonds. We took almost EUR 3 billion pre-hedge instruments to cover all our debt that will need to be, at that moment, would needed to be refinanced in the future. For the following years, 2010 to six has been already done. 73% of our debt that has been expired this year, 73% has been hedged at 2.4 strike. You can see here what will be in the following issuance, debt maturities, EUR 627, EUR 28, EUR 1,000. What will be the level of hedge and the strike behind this level of hedge. Two final comments. The hedge that we have today, which are booked in our accounts and, of course, audited, this is EUR 233 million. This EUR 233 million, it's the hedge, the value that will be allocated in any future maturities of bonds that we are going to be refinancing in the future. EUR 233 million will be allocated EUR 12 million in the issuance 2026, 2032, and 2027 and beyond. How will this EUR 233 million be allocated or recycled into P&L is the bottom line. The idea you need to take from this page is we have a very predictable cost of debt. We have mark-to-market, a lot of value still to crystallize, EUR 233 million still to crystallize in the following years up to, at the very end, that all the debt, not 2028, not 2029, not 2030. At the very late, all the debt in place today will be mature. This is the idea of this page, and it will help you probably to modeling what is going on. This is the consequence of this cost of debt I showed you before and why we are so, I would say, comfortable about the guidance for this part, about the guidance that I am going to share with you. This is not a meaningful pre-hedge. What we would like as well, an interesting takeaway, one important takeaway, because for us it's important, this is not a coincidence. This is not a single strategy. This is a permanent strategy to protect, to secure the cost of debt, to assure that the growth comes from the business. Okay? This is not a coincidence. Behind this, is a real policy. Given that financial discipline, I'm going now to the other box, to the other part of this helix retrofitting by themselves. This is the capital recycling, and this is the part of our investment side. We have as well a clear framework. You've seen a clear framework of the financial discipline. You will see now, and some examples has been already done. You will see a lot of, as well, a very clear framework on the financial discipline. We approach any single investment with a very clear hurdle rate, subject if there is core plus investment or value-added investment between 7% and 8.5% if a core investment, or 9%-10% if the value-added investment. These are not the hurdle rates that are linked to the macro drivers. These are hurdle rates that are linked, and I think as well Pere mentioned before, that are linked to the micro-driven analysis of any single asset. What does it mean? Location, it means tenant. It means if the asset is under management, we can create value enhancing the operational part of the management or some light CapEx to enhance the value of the investment. It's about location and city centers and profile of the scheme. It's about potential releases spread. It's how we can recycle this capital to ask for a very interesting capital returns. Why these levels? Because with these levels, we are beating the cost of capital that the market are requesting. With these hurdle rates, we are creating value for all of you. The combination of these hurdle rates being very disciplined on the investment, keeping the framework on the financials I explained before, we secure the growth value for the shareholder remuneration and the value creation because all these hurdle rates are well above the cost of capital that today's market is requesting for Colonial. Very clear, we filter every single opportunity. If we don't reach these hurdle rates, we are not going to do it. You should be, I would say, very confident in what we've done because the track record, I think, we believe, that shows this discipline always as well in the investment. This is how we can maintain the return profile across the cycle with this room to surface at any market volatilities and as well to take advantage of any opportunity. Let me bring together what does it mean, what I explained before. Capital recycling, we said very clearly, these are the hurdle rates beating the cost of capital the markets are requesting, creating value through any investment approach, and disposing at a price or even at a premium. We have been always, in certain quarters, delivering premiums to disposal. This is how we recycle capital. On the financial discipline, always this goal of credit rating metrics. What does it mean as a consequence, this Loan-to-value, S&P rates, or boundaries that I shared before with you. With this trend of deleveraging, thanks to this active management on the capital recycling and as well on the operational side with this operational debt, EBITDA, reaching this 10x. All these three pillars, it's for shareholder return. All these pillars, and keeping this balance, provides and delivers this solid FFO generation for all of you. As well, of course, beating the cost of capital, additional value growth for the future. For us, very important, and this is one of the main important things when we manage an investment committee and we manage our business. These three pillars are each one measurable, very important for us. You can measure these pillars and very clear. Very clear, and that provides accountability, which the reason why we are here. All the output from this strategy is on the guidance. The result of this strategy at the end is the guidance. The guidance in short term. We provide as well the guidance in this event about midterm. The guidance, we confirm the guidance for 2026, 2034, 2035. As you know, we are going to propose to the AGM EUR 0.32 per share on the dividend. On the midterm, our guidance for the midterm, and Carlos then will provide the different building blocks, how we reach these numbers. We are in the range of 39%-41%, which is average 20% growth, which is remarkable. All these three drivers or the three drivers that we went through this morning: core portfolio growth, Alpha X deliveries, and capital recycling, all of them with a high visibility, with an active management and active execution as of today. We feel comfortable of providing you these numbers. I would like as well to emphasize that this guidance is grounded with the same financial discipline I explained in my presentation. Conservative assumptions, very secure numbers, and with a deleveraging trend, as I mentioned before. Finally, the DPS, which is the other part of the equation, it's a mirror of the EPS growth. You can see here the trend of the DPS growing significantly, as well in line with the EPS growth and how we envisage in, Alexia showed before, in the framework of the three pillars interconnected themselves. The shareholder remuneration, you've seen that we have proposed, or we have executed already a share buyback. We are going to propose, in the AGM, cancellation of 14.5 million shares. When we approach our remuneration policy, in the first part, we have an EPS growth and DPS growth that provide this dividend growth policy. Of course, in the short term, you will see the AGM approve, of course. If you, as an investor, will approve the shares cancellation. With this approach of financial framework, we have the scope of discretionary share buyback in the future. If we don't find good enough returns in the investment approach that I mentioned before, this is why it makes sense, this discipline. We have the opportunity to do share buybacks. If we have investment opportunities and we reach and we execute investment opportunities we had in the past at 90% IRR, unlevered IRR, 10% IRR, of course, we are creating more value investing at 10% IRR, rather than doing share buybacks. Why? Because the share buybacks implicit IRR are below the hurdle rates that we are targeting in our capital recycling. All it makes sense, and again, if we don't find, or we don't see better returns enough to beat these hurdle rates or to fulfill these hurdle rates, of course, we have a scope for these discretionary share buybacks additional. To close my presentation, I will give you probably some key message that I would like you take from my presentation. First message, it's about comfort on the balance sheet. I think you need to end this presentation about that we take care about the balance sheet. We take care of any metrics of the balance sheet, quality and quantity case. The balance sheet investment grade does not mean only financial metrics, it means more things. Any single decisions, we analyze the three pillars that we envisage this comfort on our balance sheet. The guardrails, we take care of them. I think when you looked in my first page, when you look our track record, you look growth and discipline. This is why we manage and how we manage the company, growth and discipline. Second, conviction to growth. EPS guidance for this year, EPS guidance for 2028, with a clear high visibility on this growth in our business. Third, confidence on our framework. The capital allocation approach is discipline, measured, and transparent, and consistently being applied in the levels of the framework as I've shared before. We, as management, always we believe that we have been delivering year-by-year, through this profile of framework, the growth numbers are there, and the discipline rating is there. Thank you. Now I hand the board to Carlos. Thank you. Okay. As you have seen this morning, we are in a segment that is a prime asset class that has superior growth across European gateway cities. We have the capabilities with the platform. Juanma and Alexia explained it. Not only that we have the capability, we have proven it. We have a track record. We have delivered the returns. We have delivered the cash flow growth. All of this is embedded in a strong, solid capital allocation framework. Everything we buy follows a discipline. Everything we sell is being done in the framework of value creation, on portfolio improvement. Everything that we do takes into account to have a well-grounded, strong capital structure in order to optimize the WACC, the cost of capital of our shareholders. With this in mind, we build our figures. Today, we're going to show you what we think, where we're going to land in three years from now based on our business model that has proven to be very successful. Our business model has three pillars, as it has been already explained. Number 1 is our super prime footprint that really has above-market rental growth. We are setting the standards in rents. Here you see some examples. Our assets set the standards. We set the reference rents, the highest rents in the market. In addition, and this is quite unique, I would say almost no company in Europe has really this capability, with a strong development track record. People in the real estate sector, listed sector, there are not so many people that really have this track record to transform assets. What does this mean specifically looking into the next three years? We have seven projects. Three have just been delivered right now. No, Montse. Three have just been delivered right now. Madnum, Diagonal, and Haussmann, and they are progressing quite successfully. We have interesting phasing in across the next two and a half to three years of four very attractive projects. All of them with large floor plates and with interesting urban mixed characteristics. We have a third layer that we've also proven to do very well, that is buying and selling, improving the average return of our portfolio, and remaining with a strong balance sheet. We announced a disposal program in November. It's just a few months ago. As of today, it's accelerating both in timing and in pricing. We are getting higher prices than we expected, and this has encouraged us to enhance further the disposal activity and to add on top EUR 200 million. We're going to also deploy capital. Our idea and what we have baked into the numbers that we show right now is that we use roughly EUR 0.2 billion into new things. One is the buyback program that has already been completed, and then some investment opportunities that we are quite close to execute. First of all, in terms of modeling, how should you factor this in? The first layer, it's an ongoing layer throughout the three years. The prime operations. Maybe a little bit of distinctive elements is in Barcelona, we have especially a driver of occupancy ramp-up. Barcelona is accelerating the market activity. It's gaining a lot of positive traction. This is really an interesting engine of additional cash flow growth. Madrid, we have a portfolio that is at very high occupancy levels. We have there a lot of rent reversion from top assets. Also here and there some opportunities of letting up. Paris is similar to Madrid, but it's really a very strong market. Our assets have there an extremely strong pricing power. Then we have something in addition to Barcelona and Madrid, as a consequence of the longer contract maturity structure of this city, we have a significant reversionary potential in passing rents as of today. It's quite an important number. On the projects, as I said, three of them are delivered. They have almost not contributed a lot of rents in 2025 because they were developed across 2025, and they will now kick in across 2026 with interesting numbers of rents. Then progressively, the urban business campus at Gare de Lyon Scope will kick in towards the end of the year. Then towards the end of 2027, Condorcet and Sancho de Ávila. Sancho Ávila today is already fully let. There's no commercial risk. We have the rents already in-house. It's just an issue of timing. Mid to end 2028, the student housing premise, Santa Hortensia. On the disposal program, it's ongoing. We are starting now to identify new opportunities. We've seen a lot of things that can be value attractive in a disposal program, and the buyback program, as all of you know, is completed, and on the prime acquisitions, we are currently working on it. If we go a little bit into the details. The first layer, our best estimate as of today is that it will add EUR 0.05-0.06 per share. Implicitly, this is a CAGR growth of 4%-5% in net rents. As I said, the drivers are a little bit different in every city. Barcelona is a strong occupancy ramp up driven. Madrid is a combination. Paris has also really spread. There are some assets that stand out. Louvre Saint-Honoré has a very interesting growth portfolio. Also Recoletos and Velázquez, as they are very strong assets with strong pricing power, have an interesting profile. There's some ramp-up in Visionary and Santa Engracia. There are a variety of different assets where we can capture additional cash flow. We have the project pipeline. You have, on the one-hand side, the delivered assets, and we have the four project Alpha X assets that will kick in. Our best estimate is that as of 2028, we will have EUR 80 million of annualized rents. As of today, we are at EUR 8 million. You know that in the presentations, we always flag these seven assets with a full capacity of EUR 100 million. Condorcet and Santa Hortensia and Sancho de Ávila are kicking in more at the back end of this timeline, we get at the full capacity at 2030. EUR 100 million are being achieved in 2030, but in 2028, we expect to be at EUR 80 million.The remaining CapEx achieved here, EUR 148 million in 2026, between EUR 100 million and EUR 120 million in 2027. These are the most updated figures, including all of the uncertainties that have been also not currently in the short term situation. We have EUR 20 million that were already invested in Q1. In terms of pending CapEx as of today, between EUR 248 million and EUR 268 million. All of this, and here you see, as we always said, it's a quite relevant growth driver, EUR 0.08-EUR 0.09 per share at full capacity. That is more 2030, EUR 0.11 per share. [Then] we also create value by capital allocation by rotation. We are selling off assets and we are redeploying the capital. As of today, we expect to have a marginal impact of value creation in terms of EPS, recurring EPS, and recurring cash flow of EUR 0.02-EUR 0.03. What is included here is the impact of the share buyback program, the investments that we are looking at that has an unguid IRR in excess of 8%, and also the contribution of the activity that we are doing in terms of third-party capital management. Cash flow from asset management that we are collecting. All of this together, we estimate as of today that it could be between EUR 0.02 and EUR 0.03 per share. When we look at all of it together, at the starting point on 2025, we were at EUR 0.33 a share. We expect with our business model that relies on three value drivers to add another EUR 0.15-0.18. Five to six from our core activity, from the strong cash flow of our assets. As I said, a CAGR between 4%-5%, as you see, 200-300 basis points above indexation. A very significant driver, this is why we have done this many years, because we have the capacity to do it successful, is urban transformation. It's projects, EUR 0.08-0.09 per share. Capital recycling. We are in the business of constantly improving the average return of our portfolio, EUR 0.02-0.03 per share. Together, EUR 0.15-0.18. That in an environment that everybody knows, where we are still in a situation of increasing interest rates, more than offsets the impact from interest rates. A very healthy and solid cash flow growth, embedded in a disciplined and strong capital structure. From point to point, this is between 16% and 22%, and 5%-7% CAGR. This is by far, as of today, one of the highest or maybe the highest growth profile in the European listed sector at the moment. This is at the end, the proposition. As you can see, we are confident on it. It has been built with a lot of detail and with a solid and disciplined capital allocation framework. When you look at the last 10-15 years, these are the growth rates that we have always delivered. We are quite confident on it, and that's why we decided also to flag it today and to explain where it comes from in the different building blocks. With this, I'll pass to the final wrap up of the session. Thank you, Carlos. I think that we are not only late, but ahead of time. actually, this was not planned to be so on time, but it's fantastic. this last section, it's a little bit of a wrap-up of everything that has been said. A little bit of maybe additional deep dive on certain things that maybe need an additional layer of comments that have to be provided. The final takeaways that we expect from this meeting today. The ideas. Coming back to the very beginning of this session this morning, there's something going on in our market that is good, that offers growth, and that offers an opportunity. It's not only about Colonial; it's about what's happening in urban cities, what's happening in the office market. There is a clear trend towards polarization. There is a chronic supply of the right product for this polarization. This is unbalanced versus the take-up that is surging in Europe in the search of these trophy assets. This creates a number of dynamics that create, let's call it a beta, a kind of external growth factor that are driving our sector, and that explains why the performance is being a good one so far. Moreover, why do we expect this performance to remain even better in the future? The second part of the story is, well, this may happen in the market, but we happen to be very well positioned. We've been strategically committed to this positioning for a long time. That has already generated a number of returns, but today that is transforming Colonial into the prime dominant player. The dominant player in prime assets. We have this positioning with an unparalleled track record, having been able to deliver this in an international footprint and with also the additional layer of capability to generate returns through capital recycling and development of new projects. I like this slide. It's just now. I think that these numbers is recently, but if you could take them for the next recent years. It's about like-for-like growth versus exposure to prime. This is a plot that I asked for the most recent data available, but this could apply for recent years, and we believe that this will apply for the next years. We want to be in the range of the highest GRI like-for-like growth that will explain the superior returns of Colonial going forward. This, and we insist, is something that it's not about wishful thinking from now on. This is a vision of returns, the leverage, and everything else in the last 10 years. [In the end,] the history of Colonial in the last 10 years is about a history of sound growth with good discipline in terms of leverage. It's a good equilibrium between growth and leverage that has been delivered consistently and that has led us to where we are today. These are the foundations of where we are in order to project ourselves into the future. How do we project ourselves into the future? Well, this slide is a slide that we should never do. Too many things explained in one slide, I will try to walk you through this because in the end, it's a summary of everything that has been said today. If we project Colonial in the next future, first of all, a framework. Here there is a triangle of wanting to invest in the best places with the higher returns possible with discipline. As I said before, if we missed it, we missed it. Now we've lost a couple of opportunities in Paris, but it's important that we remain disciplined in our hurdle rates that we want for our investments. This is an angle, but this is dependent on the prime financial structure that we want to achieve, and this is within a model that in the end is to generate the EPS and DPS, and in the end, shareholder remuneration that we want for our shareholders in the future. The returns we want to give for our shareholders in the future are based on prime CBD operations, on Alpha X, on capital recycling. Just to summarize where this is coming from. I think we just saw from Carlos' presentation very clear numbers attached to this. I think that the strength on prime CBD operations, it's clear. I won't insist on this. We had a debate yesterday. We had pages and pages of evidence of superior returns in the last few years. In the end, we sent them to the appendix of the presentation because we thought we would be boring you. We just included a couple ones, but there's a number of evidences. prime factory Alpha X remarks. We have those four projects. There were five, but you're sitting today in the number 1 of these five. Already done, delivered. Here is the product. Here are the returns, the value created. They are the four remaining ones. Here, to emphasize this, let's say flexibility in terms of our commitment to prime factory, to creating a prime product within a wider scope of looking at urban transformation opportunities. You see that out of these four opportunities, two are not going to be office buildings. One is an hospital project in Barcelona. It's interesting. It was the first office building that was built in the 22@ neighborhood in Barcelona. The T-Systems headquarters in Barcelona. This area of Barcelona, it's super clear that it's unbalanced between office supply and other users. It needs desperately a hospital. It's not us who are saying this. The town hall is chasing Albert all of the time because they are so much interested in this project. Of course, the operator that is renting this for us is a super believer, and the returns are much better. That's why we are delivering this project. The second one, this one will be delivered next year, and next year we'll be saying, as we are now saying from Madnum, "This is done." The next one, maybe it's a little bit more tricky, is the student accommodation one, Santa Hortensia. The story of Santa Hortensia was we expected that with the new evolution of IBM, the way the company has been restructured, this would have the opportunity to go in different directions. When we bought it many years ago, we already had all of these kind of stress test scenarios. We went through the initial analysis. It was crystal clear that there was a better use for other users, non-office related, that had a higher value. Anything related to residential is offering today an opportunity, if possible, because it's not so easy, in different European cities. In Madrid, it's a clear example. By doing transformation, you achieve additional returns. We had a look at different alternatives. Let's call it traditional residential did not work out because of too much time attached to the project. Short-term resi, which is living, flex living, hospitality, student accommodation, anything worked out pretty well. We decided to go into the student accommodation direction. Why? Because so much pressure from all operators, from everybody in the market looking at very much interest in this. By the way, we keep the optionality of this coming back to ordinary flex living or other areas of hospitality if market trends give us this advice. To transform a student accommodation into ordinary flex living, it's very easy in terms of CapEx requirements. Let's not forget about this optionality because as you know, flex living is also booming in Madrid. Of course, every time that we approach something that is not office, we carefully assess all of the risks attached to that. That meant here selecting an operating partner that came with us. We went through the interest of many different people, and we finally selected one, which unfortunately we are in quite advanced stages of discussions, but still not at the time that we can be transparent. Pity, but that's how business happens. We are very well advanced. In this particular area, what you should be seeing in the future is that we announce at some point a partnership to manage this project, which will bring comfort on, let's say, the proper management of the opportunity. We are considering going a little bit step beyond, that is to create together with a partner, a platform. I was going to say a small platform, but it won't be small, of our asset plus other assets in this universe of this partnership. I'm saying this because maybe this will be disclosed in the near future. The rationale behind this is that we are enhancing the value of what we have. Today, we have a development that is promising fantastic returns three years from now, but it's a development and that's it. If we contribute this to a platform, we will be transforming this into a share of a portfolio that is cash flow producing sooner, that has a more dominant position in terms of operations, in terms of competing, where we have already crystallized the expected value that we have for 2028 of our building. We are de-risking the development, introducing cash sooner, having more value. That's why we may be going in this direction. Does this mean that we are, let's say, revisiting the strategy of Colonial? I think that today we wanted to pass the message to you that we are pretty focused on what we do. That is pretty consistent with maximizing value for every asset we own, and we are not shy, and we are ambitious in the way we do it for every asset. Sometimes we may give the wrong perception. I remember when we did the residential here, the one you passed through. Wasn't this a wise decision? We did it. That's created a much better environment. We did it. We sold it. By the way, today we announced that we are quite advanced in the residential in Spain that was contributed from CriteriaCaixa 2 years ago. I remember a little bit of hesitation about what does this mean. I think that I would like to pass a message of comfort. To be an office player at the heart of your business, together with maximizing value through urban transformation is something that is consistent and it's in the benefit of shareholders. That's why we are here. This is the comments on Alpha X. 2 will be, or are currently urban transformation projects. The other two will be traditional prime factory initiatives. On capital recycling, the message is clear. Divestments are going quite well, as you can see. Much better than disclosed before, I would be honest, than expected. When we decided to go retail in the process of selling residential, we were right. We are achieving much higher premiums and much quicker than expected. The half a billion divestment program, it is being a success, honestly. Based on that, we are flagging the additional EUR 200 one. On the investment side, the EUR 200, yes, the message is you will probably see us investing in Germany. If things go the way they are, it will be prudent because we are talking below EUR 200 million framework. It will be prime. If it is not prime, it will not happen. Let's put it this way. As usual, it is not passive ownership of a beautiful asset. It is because we have identified things that we would like to do with these assets in due course. It will have an initial profitability, let's say, expected, which is higher than what we usually are used to in France or in Spain. On top of that, we'll have a little bit of real estate rationale attached to that that will bring us additional layers of returns in due course. It will probably be, again, through a partnership. This is another question that you put to us. Are you comfortable doing things here and there? Look, the story of Paris. It's been 20 years of international, let's say, exposure. By the way, urban transformation, the Mandarin, it was 15 years ago. Yeah, 10, 12 years ago. Message of comfort. We do this on a regular basis. You will see a little bit of this capital recycling happening this way, but most of all within this framework that you have repeatedly been explaining today. All of this in a context of wisely managing investments versus deleveraging versus share buybacks. I think that Carmina explained that very well. We constantly look for investment opportunities. We are strict about the hurdle rate and the return we want to achieve. If it's out there, fantastic. If it's not there, okay. We also want this to be on a condition precedent of prime financial structure, which today means additional deleveraging. First goes the capital structure, then later goes the investment decisions. That means also a context of capital recycling, selling, and buying. That's basically the framework that we expect regarding capital structure. I think that the idea today was to pass you the message that we pretend to have a sophisticated approach to financing decisions. In the end, it's about minimizing our average cost of capital, and I think you have seen what is the cost of capital that comes from this capital structure decision today. We do have a prudent capital structure. We also manage, I think, as many other companies, interest rates with prudency, meaning hedging policies as everybody else, or not everybody else, as many companies. On top of that, we were, if you want, lucky or wise to take some decisions a few years ago that generated value for shareholders for several hundred million EUR. At the beginning, more than 400 million EUR now. This can be recognized in different ways. We follow strict IFRS rules, as I think anyone should do. You can look at this in many different ways, but the value is there. These are good news, the fact that value has been generated. How do you look at it and how this is recognized? I think it's second-level debate. The first one is value has been generated. Anyway, as Carmina explained, our deleveraging process, it means that we are at the low end of the frame that is considered by S&P for our current rating. On top of that, with our current business plan, our expectation is that this LTV with current market circumstances will go down between 150 and 250 basis points additional for this kind of midterm. Let's say a scenario that we predict. [So I think,] last but not least, and also Carmina said it is very important, without compromising earnings growth. I think that any company, it's about the sound equilibrium of earning growth with leveraging, the leverage or discipline decision. This is the framework of what we want to do going forward. Since this may seem very theoretical, the objective for today was to translate this into numbers. This is a kind of summary of the business plan that we use internally to work. The management of Colonial and SFL. We have a, let's say, sophisticated and detailed business plan in order to frame any decisions. We look at everything from an industrial point of view. I said at the beginning that it's nice to have these opportunities to talk. As you can imagine, everything we do, we cannot do it looking at the impact during this year on EPS or during this year on the balance sheet. This would not be sound management. We do it looking at a five-year period or a much longer even year period. To pass a message today, this is, well, in fact, Carlos went through this. This is the translation of everything we are expecting to do in the next three years. This means that we should see our EPS in the range of 39-41 by 2028. Which means an annual total return between 11% and 13% as a combination of the EPS yield and the growth. You can look at this also from looking just at dividend yield plus the growth. Maybe it's a side comment that is maybe good to have or maybe not so much, yes, we were told, "Please, let's remind the audience that we, the management, have skin in the game." That this matters to us. I can tell you it matters. I can tell you because if you want to be very basic about this, our remuneration is biased towards variable remuneration as opposed to fixed remuneration in a comparison with a benchmark. In this variable part of our remuneration, it's biased towards total shareholder return for shareholders above peers, above the benchmark. We are on the same boat. That's what I wanted to say with you. It's not that we want to please you with this, and then we come to our ordinary life, no. Our ordinary life is about to deliver, sorry, not only for you, but for us, too. This is basically what I wanted to share today. Now we will have, for those of you who are sharing this place with us today, the opportunity to question, to debate for anything that needs more deep dive. As I said at the beginning, it's been a pleasure to have this opportunity. At the beginning, I mentioned, well, these are the takeaways that we would like. You always have to even more simplify, no. For me, the takeaway is that we have a good strategic positioning, but more importantly, that this company is offering clear visibility on midterm growth. In the end, that's what we wanted to share with you today. Our daily life when we interact with capital markets, sadly, is too much focus in what's happening in the next few weeks or months or within the year. For me, capital market is about having the opportunity to look beyond. For me, the main takeaway is clear visibility on midterm growth. Because of everything that's happening, all of this within a framework of disciplined capital allocation. We also wanted to pass the message of not only how much, but also the message of how are we managing this company. That's it. Thank you. Just now, in a few minutes, we will start the second part, debate or Q&A. Thank you.

Speaker 5: Good morning. First of all, a big thank you to all of you for being here today and being able to share with you this Capital Markets Day. I think it's been a long time since last time we were able to organize these kind of meetings. A lot has been going on in the world in recent years. Every year, something has been happening that was far more important, that put the focus of capital markets somewhere else in what's going on in the world, very far away of the individual performance of companies. It was difficult to establish a relationship between any company and the markets. The markets had other things to worry about. Good morning. good morning First of all, a big thank you to all of you for being here today and being able to share with you this Capital Markets Day. first of all a big thank you to all of you for being here today and being able to share with you this capital markets day I think it's been a long time since last time we were able to organize these kind of meetings. i think it's been a long time since last time we were able to organize these kind of meetings A lot has been going on in the world in recent years. a lot has been going on in the world in recent years Every year, something has been happening that was far more important, that put the focus of capital markets somewhere else in what's going on in the world, very far away of the individual performance of companies. every year something has been happening that was far more important that put the focus of capital markets somewhere else in what's going on in the world very far away of the individual performance of companies It was difficult to establish a relationship between any company and the markets. it was difficult to establish a relationship between any company and the markets The markets had other things to worry about. the markets had other things to worry about Like in couples that are about to divorce, they were saying, "It's not you, it's me, the one that has a problem." That make it difficult to find the time to discuss about how a company is doing, what they are thinking about the future. We were wishing that this day could come, and I think that that's the time, and we are so pleased to have this opportunity to share with you where Colonial is and where Colonial is going to go in the future. I think it's a great opportunity to talk, because there's always this need to go beyond what's happening in the short term and share openly in an open discussion what's our expectations and wishes and plans for the midterm or for the future. Like in couples that are about to divorce, they were saying, "It's not you, it's me, the one that has a problem." That make it difficult to find the time to discuss about how a company is doing, what they are thinking about the future. like in couples that are about to divorce they were saying "it's not you it's me the one that has a problem." that make it difficult to find the time to discuss about how a company is doing what they are thinking about the future We were wishing that this day could come, and I think that that's the time, and we are so pleased to have this opportunity to share with you where Colonial is and where Colonial is going to go in the future. we were wishing that this day could come and i think that that's the time and we are so pleased to have this opportunity to share with you where colonial is and where colonial is going to go in the future I think it's a great opportunity to talk, because there's always this need to go beyond what's happening in the short term and share openly in an open discussion what's our expectations and wishes and plans for the midterm or for the future. i think it's a great opportunity to talk because there's always this need to go beyond what's happening in the short term and share openly in an open discussion what's our expectations and wishes and plans for the midterm or for the future To have the opportunity to discuss at an industrial level, let's put it this way, and not so much at a financial level. To discuss about mid to long term as opposed to a short-term view. I think it's a great opportunity, and that's why we are so pleased to have this opportunity today to be able to share where Colonial is and will be with you. In this beautiful place. I am conflicted about it, but I think it's a fantastic place. It's Madnum. It's a very good example of our view about the world of offices. You will see today how much we believe, how high is our conviction of a bright future for a certain way of approaching the office world. It's not about office, it's about experience. To have the opportunity to discuss at an industrial level, let's put it this way, and not so much at a financial level. to have the opportunity to discuss at an industrial level let's put it this way and not so much at a financial level To discuss about mid to long term as opposed to a short-term view. to discuss about mid to long term as opposed to a short-term view I think it's a great opportunity, and that's why we are so pleased to have this opportunity today to be able to share where Colonial is and will be with you. i think it's a great opportunity and that's why we are so pleased to have this opportunity today to be able to share where colonial is and will be with you In this beautiful place. in this beautiful place I am conflicted about it, but I think it's a fantastic place. i am conflicted about it but i think it's a fantastic place It's Madnum. it's madnum It's a very good example of our view about the world of offices. it's a very good example of our view about the world of offices You will see today how much we believe, how high is our conviction of a bright future for a certain way of approaching the office world. you will see today how much we believe how high is our conviction of a bright future for a certain way of approaching the office world It's not about office, it's about experience. it's not about office it's about experience It's about providing the right place to be for those companies who really are concerned about talent attraction, about having the best place to take care of the best intangibles of a company, which is the corporate culture, the talent attraction, the talent retention. This is magnificent place. I hope you will be able to enjoy it before or after, where you can see the kind of experience we want to provide for the people that are joining us in this building. It's about providing the right place to be for those companies who really are concerned about talent attraction, about having the best place to take care of the best intangibles of a company, which is the corporate culture, the talent attraction, the talent retention. it's about providing the right place to be for those companies who really are concerned about talent attraction about having the best place to take care of the best intangibles of a company which is the corporate culture the talent attraction the talent retention This is magnificent place. this is magnificent place I hope you will be able to enjoy it before or after, where you can see the kind of experience we want to provide for the people that are joining us in this building. i hope you will be able to enjoy it before or after where you can see the kind of experience we want to provide for the people that are joining us in this building What's the plan for today? That's the agenda. We are going through the introduction and the welcome. We will devote a few minutes with me about the investment case of Colonial. We will go then more in depth about our operational business model. We'll have a coffee break. Afterwards, with Carmina, we'll discuss about financials, and more importantly, capital allocation framework. What's the plan for today? what's the plan for today That's the agenda. that's the agenda We are going through the introduction and the welcome. we are going through the introduction and the welcome We will devote a few minutes with me about the investment case of Colonial. we will devote a few minutes with me about the investment case of colonial We will go then more in depth about our operational business model. we will go then more in depth about our operational business model We'll have a coffee break. we'll have a coffee break Afterwards, with Carmina, we'll discuss about financials, and more importantly, capital allocation framework. afterwards with carmina we'll discuss about financials and more importantly capital allocation framework What's the discipline, the framework where we develop our strategy in order to later on have a discussion with Carlos about the strategic plan and value drivers. Finally, I will go through some remarks about our strategic view about the future and to what extent we believe that Colonial represents an unparalleled opportunity in the European prime office. What's the discipline, the framework where we develop our strategy in order to later on have a discussion with Carlos about the strategic plan and value drivers. what's the discipline the framework where we develop our strategy in order to later on have a discussion with carlos about the strategic plan and value drivers Finally, I will go through some remarks about our strategic view about the future and to what extent we believe that Colonial represents an unparalleled opportunity in the European prime office. finally i will go through some remarks about our strategic view about the future and to what extent we believe that colonial represents an unparalleled opportunity in the european prime office With me, I have the pleasure of having Carmina, as usual, Chief Corporate Officer; Juanma Ortega, Chief Investment Officer; Carlos Krohmer, Chief Corporate Development Officer; and Alexia Abtan, Directrice des Investissements SFL. I hope my French is good enough. Who will be with us, plus all the investor relations team that I would like to take the opportunity to thank them for the big work they've been doing in preparing this. Also, I would like to thank all of the people that is supporting in the organization of this event. With me, I have the pleasure of having Carmina, as usual, Chief Corporate Officer; Juanma Ortega, Chief Investment Officer; Carlos Krohmer, Chief Corporate Development Officer; and Alexia Abtan, Directrice des Investissements SFL. with me i have the pleasure of having carmina as usual chief corporate officer juanma ortega chief investment officer carlos krohmer chief corporate development officer and alexia abtan directrice des investissements sfl I hope my French is good enough. i hope my french is good enough Who will be with us, plus all the investor relations team that I would like to take the opportunity to thank them for the big work they've been doing in preparing this. who will be with us plus all the investor relations team that i would like to take the opportunity to thank them for the big work they've been doing in preparing this Also, I would like to thank all of the people that is supporting in the organization of this event. also i would like to thank all of the people that is supporting in the organization of this event All the people in Spain and in France. The French team is here. Welcome also. I also would like to thank some of you, some of the investors and analysts that are following us for many years, that also have been providing us with insights on what's the best use of our time in this opportunity today. Big thank you to all of you. All the people in Spain and in France. all the people in spain and in france The French team is here. the french team is here Welcome also. welcome also I also would like to thank some of you, some of the investors and analysts that are following us for many years, that also have been providing us with insights on what's the best use of our time in this opportunity today. i also would like to thank some of you some of the investors and analysts that are following us for many years that also have been providing us with insights on what's the best use of our time in this opportunity today Big thank you to all of you. big thank you to all of you What are the objectives for today? In a way, what I would like for you to remember about today's meeting. What are the takeaways? A few sentences. I would like that you achieve the conviction that Colonial represents a unique opportunity to play the European urban transformation growth cycle. In other words, that Colonial is a really strong investment case proposition. It's a strong company, different from others. What are the objectives for today? what are the objectives for today In a way, what I would like for you to remember about today's meeting. in a way what i would like for you to remember about today's meeting What are the takeaways? what are the takeaways A few sentences. a few sentences I would like that you achieve the conviction that Colonial represents a unique opportunity to play the European urban transformation growth cycle. In other words, that Colonial is a really strong investment case proposition. i would like that you achieve the conviction that colonial represents a unique opportunity to play the european urban transformation growth cycle. in other words that colonial is a really strong investment case proposition It's a strong company, different from others. it's a strong company different from others You know that one of the struggles we have in this sector, the office sector, is to say and to show and to prove that A and B are different. In fact, we would like that you achieve the conviction that Colonial is different and better. That could be objective number one. Why? Because of the positioning of Colonial in the prime asset world, which offers a clear path to value creation. Clear positioning of Colonial and clear path going forward in our strategy. You know that one of the struggles we have in this sector, the office sector, is to say and to show and to prove that A and B are different. you know that one of the struggles we have in this sector the office sector is to say and to show and to prove that a and b are different In fact, we would like that you achieve the conviction that Colonial is different and better. in fact we would like that you achieve the conviction that colonial is different and better That could be objective number one. that could be objective number one Why? why Because of the positioning of Colonial in the prime asset world, which offers a clear path to value creation. because of the positioning of colonial in the prime asset world which offers a clear path to value creation Clear positioning of Colonial and clear path going forward in our strategy. clear positioning of colonial and clear path going forward in our strategy Basically, two things, that there is a polarization game that has already happened in this world of office business, and that Colonial, it's a winner in this polarization game. That would be one of our objectives to share with you. Because of that our platform has a significant embedded growth to be unlocked in the next three years. Basically, two things, that there is a polarization game that has already happened in this world of office business, and that Colonial, it's a winner in this polarization game. basically two things that there is a polarization game that has already happened in this world of office business and that colonial it's a winner in this polarization game That would be one of our objectives to share with you. that would be one of our objectives to share with you Because of that our platform has a significant embedded growth to be unlocked in the next three years. because of that our platform has a significant embedded growth to be unlocked in the next three years Specific, well-supported, not wishful hoping numbers. Specific midterm numbers that prove that the growth expected for this company in the midterm is relevant. Again, if you allow me, that we all always and also can be aware that this growth is not just happening now. It's not that we just discover now that Colonial is going to grow in the next 3 years. To remember to what extent this has already happened, and there is quite a lot of evidence and track record of growth if you look at the past. Specific, well-supported, not wishful hoping numbers. specific well-supported not wishful hoping numbers Specific midterm numbers that prove that the growth expected for this company in the midterm is relevant. specific midterm numbers that prove that the growth expected for this company in the midterm is relevant Again, if you allow me, that we all always and also can be aware that this growth is not just happening now. again if you allow me that we all always and also can be aware that this growth is not just happening now It's not that we just discover now that Colonial is going to grow in the next 3 years. it's not that we just discover now that colonial is going to grow in the next 3 years To remember to what extent this has already happened, and there is quite a lot of evidence and track record of growth if you look at the past. to remember to what extent this has already happened and there is quite a lot of evidence and track record of growth if you look at the past The next objective is also to share with you that our strategy is anchored in a strong capital allocation framework. It's not a simplistic view about growth, what is in our minds. It's a clear framework of capital allocation with discipline attached to it. Within this capital allocation framework, there is a fantastic growth expectation. For us, it's as important to share with you how beautiful our expectations are of our growth as it is to share with you to what extent this is happening within a framework of capital allocation discipline. The next objective is also to share with you that our strategy is anchored in a strong capital allocation framework. the next objective is also to share with you that our strategy is anchored in a strong capital allocation framework It's not a simplistic view about growth, what is in our minds. it's not a simplistic view about growth what is in our minds It's a clear framework of capital allocation with discipline attached to it. it's a clear framework of capital allocation with discipline attached to it Within this capital allocation framework, there is a fantastic growth expectation. within this capital allocation framework there is a fantastic growth expectation For us, it's as important to share with you how beautiful our expectations are of our growth as it is to share with you to what extent this is happening within a framework of capital allocation discipline. for us it's as important to share with you how beautiful our expectations are of our growth as it is to share with you to what extent this is happening within a framework of capital allocation discipline As a result of this, that Colonial is offering a strong proposition of shareholder value creation with solid short-term value drivers. Specific midterm goals, that should be one of the takeaways of this meeting, and a sound equilibrium between growth and solid capital allocation and capital discipline base case. That would be more or less the takeaways that we would like for today. I will start with section one, which is about the investment case. Where is Colonial? What is our view of the world, of real estate, of our sector? How do we see ourself within this world? As a result of this, that Colonial is offering a strong proposition of shareholder value creation with solid short-term value drivers. as a result of this that colonial is offering a strong proposition of shareholder value creation with solid short-term value drivers Specific midterm goals, that should be one of the takeaways of this meeting, and a sound equilibrium between growth and solid capital allocation and capital discipline base case. specific midterm goals that should be one of the takeaways of this meeting and a sound equilibrium between growth and solid capital allocation and capital discipline base case That would be more or less the takeaways that we would like for today. that would be more or less the takeaways that we would like for today I will start with section one, which is about the investment case. i will start with section one which is about the investment case Where is Colonial? where is colonial What is our view of the world, of real estate, of our sector? what is our view of the world of real estate of our sector How do we see ourself within this world? how do we see ourself within this world First, the obvious starting point that all of you know so well, probably no need to go through this. The view about Colonial as simple, strong, and better platform. Simple. Those of you who follow many companies, I guess you will not find many that can be so easily understood in a limited time period. It's about EUR 12 billion in France and Spain. First, the obvious starting point that all of you know so well, probably no need to go through this. first the obvious starting point that all of you know so well probably no need to go through this The view about Colonial as simple, strong, and better platform. the view about colonial as simple strong and better platform Simple. simple Those of you who follow many companies, I guess you will not find many that can be so easily understood in a limited time period. those of you who follow many companies i guess you will not find many that can be so easily understood in a limited time period It's about EUR 12 billion in France and Spain. it's about eur 12 billion in france and spain Because the strategy has been so clear for many years, the result is, well, what are we talking about? We are talking about a portfolio of EUR 12 billion, where all of it is prime. Most of it's core, and all of it is at the real top of ESG compliant. That's why I say humbly, strong, simple, and better, because I cannot think of many other investment cases, many other companies that have the same average quality in its portfolio. Because the strategy has been so clear for many years, the result is, well, what are we talking about? because the strategy has been so clear for many years the result is well what are we talking about We are talking about a portfolio of EUR 12 billion, where all of it is prime. we are talking about a portfolio of eur 12 billion where all of it is prime Most of it's core, and all of it is at the real top of ESG compliant. most of it's core and all of it is at the real top of esg compliant That's why I say humbly, strong, simple, and better, because I cannot think of many other investment cases, many other companies that have the same average quality in its portfolio. that's why i say humbly strong simple and better because i cannot think of many other investment cases many other companies that have the same average quality in its portfolio We always use this picture. We always use this picture because it helps to understand. We always use this picture when you go on road shows. Many of you know also with the numbers of occupancy, 100, 100, almost everywhere. We are in thriving places. We are in the best potential locations in Paris, in Madrid, and in Barcelona. We always use this picture. we always use this picture We always use this picture because it helps to understand. we always use this picture because it helps to understand We always use this picture when you go on road shows. we always use this picture when you go on road shows Many of you know also with the numbers of occupancy, 100, 100, almost everywhere. many of you know also with the numbers of occupancy 100 100 almost everywhere We are in thriving places. we are in thriving places We are in the best potential locations in Paris, in Madrid, and in Barcelona. we are in the best potential locations in paris in madrid and in barcelona One of the other messages I would like to insist is not only about places, it's also about clients. With the best clients, with the big names that are walking alongside with us. That's as important as the places themselves. Let me first go through some remarks about our view of what's going on in the office market before talking about where Colonial is today within this prime office market world. What's going on in the world? One of the other messages I would like to insist is not only about places, it's also about clients. one of the other messages i would like to insist is not only about places it's also about clients With the best clients, with the big names that are walking alongside with us. with the best clients with the big names that are walking alongside with us That's as important as the places themselves. Let me first go through some remarks about our view of what's going on in the office market before talking about where Colonial is today within this prime office market world. that's as important as the places themselves. let me first go through some remarks about our view of what's going on in the office market before talking about where colonial is today within this prime office market world What's going on in the world? what's going on in the world I would like to go backwards a little bit to have a wider perspective and just to share a very simple thought. The simple thought is about despite what's going on in the world, cities are thriving. Cities are expanding, are attracting, are the place to be, are where all the future about talent, about jobs, about innovation, about population. It's where things are happening. We don't have to forget the underlying trend of urbanization that is happening and happening on a regular basis. I would like to go backwards a little bit to have a wider perspective and just to share a very simple thought. i would like to go backwards a little bit to have a wider perspective and just to share a very simple thought The simple thought is about despite what's going on in the world, cities are thriving. the simple thought is about despite what's going on in the world cities are thriving Cities are expanding, are attracting, are the place to be, are where all the future about talent, about jobs, about innovation, about population. cities are expanding are attracting are the place to be are where all the future about talent about jobs about innovation about population It's where things are happening. it's where things are happening We don't have to forget the underlying trend of urbanization that is happening and happening on a regular basis. we don't have to forget the underlying trend of urbanization that is happening and happening on a regular basis It's differential. We don't have to forget that cities are performing better than countries. This mega urban trend is consistently happening across Europe and consistently happening across time. This is the very basic of our strength. Before talking about the office market, cities are thriving. What's the relationship between this and our world? It's differential. it's differential We don't have to forget that cities are performing better than countries. we don't have to forget that cities are performing better than countries This mega urban trend is consistently happening across Europe and consistently happening across time. this mega urban trend is consistently happening across europe and consistently happening across time This is the very basic of our strength. this is the very basic of our strength Before talking about the office market, cities are thriving. before talking about the office market cities are thriving What's the relationship between this and our world? what's the relationship between this and our world The world of Colonial, the world of the office market. Well, cities are the place where the new mission-critical social infrastructure is provided for companies. There's been a lot happening these years. We all know that the office as an asset class has been challenged because of many things happened. The way we think about it is in a positive way as an opportunity. The world of Colonial, the world of the office market. the world of colonial the world of the office market Well, cities are the place where the new mission-critical social infrastructure is provided for companies. well cities are the place where the new mission-critical social infrastructure is provided for companies There's been a lot happening these years. there's been a lot happening these years We all know that the office as an asset class has been challenged because of many things happened. we all know that the office as an asset class has been challenged because of many things happened The way we think about it is in a positive way as an opportunity. the way we think about it is in a positive way as an opportunity COVID started. COVID happened a few years ago, and this was a wake-up call for many companies. Many companies, well, all the companies suddenly realized they had to think about where do they want to work, how do they want to work, if this was important or was not important. They realized that they had no tools, no know-how. They didn't have anybody in the company that was supposed to take care of this. COVID started. covid started COVID happened a few years ago, and this was a wake-up call for many companies. covid happened a few years ago and this was a wake-up call for many companies Many companies, well, all the companies suddenly realized they had to think about where do they want to work, how do they want to work, if this was important or was not important. many companies well all the companies suddenly realized they had to think about where do they want to work how do they want to work if this was important or was not important They realized that they had no tools, no know-how. they realized that they had no tools no know-how They didn't have anybody in the company that was supposed to take care of this. they didn't have anybody in the company that was supposed to take care of this Maybe the CEO, maybe the CFO, maybe the HR guy or lady, no answer was provided. Everybody was forced to think about it. The result of this thinking, in our view, was that for many people, they found out that first of all, for them, it is very important the intangible values of corporate values, of talent retention, of professional careers, of fostering creativity, of working in a way that allows the company to promote its values. That a big part of the success of a company was related to all of these intangible values. The paradox was that these intangible values were a lot dependent on something very tangible, which is where do you work and how do you work. Maybe the CEO, maybe the CFO, maybe the HR guy or lady, no answer was provided. maybe the ceo maybe the cfo maybe the hr guy or lady no answer was provided Everybody was forced to think about it. everybody was forced to think about it The result of this thinking, in our view, was that for many people, they found out that first of all, for them, it is very important the intangible values of corporate values, of talent retention, of professional careers, of fostering creativity, of working in a way that allows the company to promote its values. the result of this thinking in our view was that for many people they found out that first of all for them it is very important the intangible values of corporate values of talent retention of professional careers of fostering creativity of working in a way that allows the company to promote its values That a big part of the success of a company was related to all of these intangible values. that a big part of the success of a company was related to all of these intangible values The paradox was that these intangible values were a lot dependent on something very tangible, which is where do you work and how do you work. the paradox was that these intangible values were a lot dependent on something very tangible which is where do you work and how do you work There was an explicit relationship with a choice of where and how do you work with the management of all of these key drivers of the future success of a company. In getting the right answers, people realized that this important decision needed specific answers, and they wanted specific places. They wanted specific places where they were providing to the employees, to the people that work in any company, the right level of experience outside the building, inside the building. That has become key. There was an explicit relationship with a choice of where and how do you work with the management of all of these key drivers of the future success of a company. there was an explicit relationship with a choice of where and how do you work with the management of all of these key drivers of the future success of a company In getting the right answers, people realized that this important decision needed specific answers, and they wanted specific places. in getting the right answers people realized that this important decision needed specific answers and they wanted specific places They wanted specific places where they were providing to the employees, to the people that work in any company, the right level of experience outside the building, inside the building. they wanted specific places where they were providing to the employees to the people that work in any company the right level of experience outside the building inside the building That has become key. that has become key [And] I think there is a big conclusion today among many different companies that this really matters. What is the problem? Well, not the problem. What is the opportunity? That those places where opportunity is happening are not very much. There is a structural scarcity of the right place to be. [And] I think there is a big conclusion today among many different companies that this really matters. [and] i think there is a big conclusion today among many different companies that this really matters What is the problem? what is the problem Well, not the problem. well not the problem What is the opportunity? what is the opportunity That those places where opportunity is happening are not very much. that those places where opportunity is happening are not very much There is a structural scarcity of the right place to be. there is a structural scarcity of the right place to be This has been clear for the few years that we've been following after COVID. It happened already before, but now it's becoming even more strategic. In the meantime, demand is high. Supply is by definition short. The number of companies that thought this is important for me is higher than the available space that they are looking for. This has been clear for the few years that we've been following after COVID. this has been clear for the few years that we've been following after covid It happened already before, but now it's becoming even more strategic. it happened already before but now it's becoming even more strategic In the meantime, demand is high. in the meantime demand is high Supply is by definition short. supply is by definition short The number of companies that thought this is important for me is higher than the available space that they are looking for. the number of companies that thought this is important for me is higher than the available space that they are looking for This is creating a balance between supply and demand that is different in certain places. This is a slide that we use sometimes when we meet investors. We take the example of Paris, and there's a lot of discussion about how Paris is performing. We always like to highlight, "Look, are you talking about my Paris? Or other people's Paris?" Because depending on the place where you are, the absorption of supply may take two years, three years. This is creating a balance between supply and demand that is different in certain places. this is creating a balance between supply and demand that is different in certain places This is a slide that we use sometimes when we meet investors. this is a slide that we use sometimes when we meet investors We take the example of Paris, and there's a lot of discussion about how Paris is performing. we take the example of paris and there's a lot of discussion about how paris is performing We always like to highlight, "Look, are you talking about my Paris? Or other people's Paris?" Because depending on the place where you are, the absorption of supply may take two years, three years. we always like to highlight "look are you talking about my paris? or other people's paris?" because depending on the place where you are the absorption of supply may take two years three years Depending on where you are, it may take six months. Depending on where you are, there are a lot of new supply that's coming that we don't know where take-up is going to be. Depending on where you are, there is no relevant supply in the foreseeable near-term future. This, let's say, reality, you can extend it to Madrid, you can extend it to Barcelona. Polarization has already happened. Depending on where you are, it may take six months. depending on where you are it may take six months Depending on where you are, there are a lot of new supply that's coming that we don't know where take-up is going to be. depending on where you are there are a lot of new supply that's coming that we don't know where take-up is going to be Depending on where you are, there is no relevant supply in the foreseeable near-term future. depending on where you are there is no relevant supply in the foreseeable near-term future This, let's say, reality, you can extend it to Madrid, you can extend it to Barcelona. this let's say reality you can extend it to madrid you can extend it to barcelona Polarization has already happened. polarization has already happened I think that's obvious. What should be the number, the KPI that would prove this theory that polarization has already happened, and that supply and demand have a different balance depending on the sub-market you're referring to? Well, it's obviously rental growth. It's obvious that rental growth has shown a very different path depending on the kind of sub-market where you are. I think that's obvious. i think that's obvious What should be the number, the KPI that would prove this theory that polarization has already happened, and that supply and demand have a different balance depending on the sub-market you're referring to? what should be the number the kpi that would prove this theory that polarization has already happened and that supply and demand have a different balance depending on the sub-market you're referring to Well, it's obviously rental growth. well it's obviously rental growth It's obvious that rental growth has shown a very different path depending on the kind of sub-market where you are. it's obvious that rental growth has shown a very different path depending on the kind of sub-market where you are Consistently, we, as Colonial, have been showing above, and we'll see today again, above-market rental growth, above-inflation rental growth. The expectation that we have for the next few years is that this path is going to remain. This polarization game has also meant that the market, the product is being fragmented more and more from platinum to gold to silver to very politely called bronze kind of places. Consistently, we, as Colonial, have been showing above, and we'll see today again, above-market rental growth, above-inflation rental growth. consistently we as colonial have been showing above and we'll see today again above-market rental growth above-inflation rental growth The expectation that we have for the next few years is that this path is going to remain. the expectation that we have for the next few years is that this path is going to remain This polarization game has also meant that the market, the product is being fragmented more and more from platinum to gold to silver to very politely called bronze kind of places. this polarization game has also meant that the market the product is being fragmented more and more from platinum to gold to silver to very politely called bronze kind of places Different sub-markets with different range of rents attached to this. Where does Colonial sit in all of this? Well, we've been in this market view for many years, as you know. Many of you know us, and you know that the obsession about the quality of the product, about the positioning on the right place has been following us in Colonial and SFL for many years. Different sub-markets with different range of rents attached to this. different sub-markets with different range of rents attached to this Where does Colonial sit in all of this? where does colonial sit in all of this Well, we've been in this market view for many years, as you know. well we've been in this market view for many years as you know Many of you know us, and you know that the obsession about the quality of the product, about the positioning on the right place has been following us in Colonial and SFL for many years. many of you know us and you know that the obsession about the quality of the product about the positioning on the right place has been following us in colonial and sfl for many years We have the positioning, which is not so obvious in some of our colleagues. Therefore, we have the track record. It's not that suddenly we find out that that's our way of thinking. We have it on an international way. We have France and Spain with a long track record, and we do it as we will discuss today in a proactive way. We are not passive holders, a collectionist of buildings. We think a lot about how to enhance the experience of every individual building. We have the positioning, which is not so obvious in some of our colleagues. we have the positioning which is not so obvious in some of our colleagues Therefore, we have the track record. therefore we have the track record It's not that suddenly we find out that that's our way of thinking. it's not that suddenly we find out that that's our way of thinking We have it on an international way. we have it on an international way We have France and Spain with a long track record, and we do it as we will discuss today in a proactive way. we have france and spain with a long track record and we do it as we will discuss today in a proactive way We are not passive holders, a collectionist of buildings. we are not passive holders a collectionist of buildings We think a lot about how to enhance the experience of every individual building. we think a lot about how to enhance the experience of every individual building As a result, we are the dominant player in key European gateway cities with strong growth perspective in this market. We are at the top of property owners in prime CBD in Madrid, in Barcelona. In Paris, by the way, we are the most important owner of the highest level of trophy assets. We have five out of nine of the top trophy assets in Paris. As a result, we are the dominant player in key European gateway cities with strong growth perspective in this market. as a result we are the dominant player in key european gateway cities with strong growth perspective in this market We are at the top of property owners in prime CBD in Madrid, in Barcelona. we are at the top of property owners in prime cbd in madrid in barcelona In Paris, by the way, we are the most important owner of the highest level of trophy assets. in paris by the way we are the most important owner of the highest level of trophy assets We have five out of nine of the top trophy assets in Paris. we have five out of nine of the top trophy assets in paris This has proved to work nicely in the past. Our EPS has grown with a CAGR of 19% 2015-2020, 8% 2021-2025. What was at 12, today is at 34, and EBITDA has been sustainable, solid, growing. Let me be more specific. That's because the way we approach our strategy, it's a little bit more complex than just to say that we like the high experience prime CBD buildings. We have three levels of strategic thinking. We like to own and manage prime CBD operations. So we like to have an important portfolio with the best trophy assets. Here, the key message that probably Juanma and Alexia will explain better than me. The key message is we are proactive managers of everything we own. This has proved to work nicely in the past. this has proved to work nicely in the past Our EPS has grown with a CAGR of 19% 2015-2020, 8% 2021-2025. our eps has grown with a cagr of 19% 2015-2020 8% 2021-2025 What was at 12, today is at 34, and EBITDA has been sustainable, solid, growing. what was at 12 today is at 34 and ebitda has been sustainable solid growing Let me be more specific. let me be more specific That's because the way we approach our strategy, it's a little bit more complex than just to say that we like the high experience prime CBD buildings. that's because the way we approach our strategy it's a little bit more complex than just to say that we like the high experience prime cbd buildings We have three levels of strategic thinking. we have three levels of strategic thinking We like to own and manage prime CBD operations. we like to own and manage prime cbd operations So we like to have an important portfolio with the best trophy assets. so we like to have an important portfolio with the best trophy assets Here, the key message that probably Juanma and Alexia will explain better than me. here the key message that probably juanma and alexia will explain better than me The key message is we are proactive managers of everything we own. the key message is we are proactive managers of everything we own Most of what we own, either we develop it or either we refurbish it. Second level, we always try to add a second layer of enhancement of our returns with new projects. The Alpha X projects. The X is not about what you may think. It's about number 10. It's because we've done nine projects before. It's a long story of going through this. It's a new wave of projects that we are going through. Most of what we own, either we develop it or either we refurbish it. most of what we own either we develop it or either we refurbish it Second level, we always try to add a second layer of enhancement of our returns with new projects. second level we always try to add a second layer of enhancement of our returns with new projects The Alpha X projects. the alpha x projects The X is not about what you may think. the x is not about what you may think It's about number 10. it's about number 10 It's because we've done nine projects before. it's because we've done nine projects before It's a long story of going through this. it's a long story of going through this It's a new wave of projects that we are going through. it's a new wave of projects that we are going through Third, it's about thinking a lot about buying and selling and finding new opportunities of value creation for shareholders. Maybe the comment for today, because this has been around for a while, is that you will see that the way we are approaching this in the current market conditions is with an additional layer of flexibility. Third, it's about thinking a lot about buying and selling and finding new opportunities of value creation for shareholders. third it's about thinking a lot about buying and selling and finding new opportunities of value creation for shareholders Maybe the comment for today, because this has been around for a while, is that you will see that the way we are approaching this in the current market conditions is with an additional layer of flexibility. maybe the comment for today because this has been around for a while is that you will see that the way we are approaching this in the current market conditions is with an additional layer of flexibility When we talk about Alpha X projects, you'll see that first of all, our strategy is prime CBD. When there is the window of opportunity of create value through urban transformation, we do it. We always did it. We can provide examples about 10 years ago, the Mandarin in Paris. Many examples. When we talk about Alpha X projects, you'll see that first of all, our strategy is prime CBD. when we talk about alpha x projects you'll see that first of all our strategy is prime cbd When there is the window of opportunity of create value through urban transformation, we do it. when there is the window of opportunity of create value through urban transformation we do it We always did it. we always did it We can provide examples about 10 years ago, the Mandarin in Paris. we can provide examples about 10 years ago the mandarin in paris Many examples. many examples We believe that in current market conditions, you have to be more aware of this and be more close to these opportunities. You will find that sometimes in our capital recycling policy, our strategy is more open to urban transformation because of tactical reasons related to shareholder value creation. The other comment that probably we will have is about geographies. We believe that since the market has been evolving in a way that it's being transformed in these two sub-markets, the prime and the secondary, the level playing field for developing prime must be wider. We believe that in current market conditions, you have to be more aware of this and be more close to these opportunities. we believe that in current market conditions you have to be more aware of this and be more close to these opportunities You will find that sometimes in our capital recycling policy, our strategy is more open to urban transformation because of tactical reasons related to shareholder value creation. you will find that sometimes in our capital recycling policy our strategy is more open to urban transformation because of tactical reasons related to shareholder value creation The other comment that probably we will have is about geographies. the other comment that probably we will have is about geographies We believe that since the market has been evolving in a way that it's being transformed in these two sub-markets, the prime and the secondary, the level playing field for developing prime must be wider. we believe that since the market has been evolving in a way that it's being transformed in these two sub-markets the prime and the secondary the level playing field for developing prime must be wider You cannot think about a bright future for a big company doing prime by thinking that you will just walk Champs-Élysées up and down, buying and selling things in just one street. You have to think that you have the capabilities to do what your platform knows how to do in different places. We'll talk a little bit about the way we apply this philosophy. You cannot think about a bright future for a big company doing prime by thinking that you will just walk Champs-Élysées up and down, buying and selling things in just one street. you cannot think about a bright future for a big company doing prime by thinking that you will just walk champs-élysées up and down buying and selling things in just one street You have to think that you have the capabilities to do what your platform knows how to do in different places. you have to think that you have the capabilities to do what your platform knows how to do in different places We'll talk a little bit about the way we apply this philosophy. we'll talk a little bit about the way we apply this philosophy Quick comments on this investment case view. Well, sorry that we will hammer a little bit on this during the morning, but this has been already proven for a number of years. If you look at the Like-for-like gross rental income growth, it's been, number one, consistently above inflation for many years. Many of you will remember that when inflation started, the question for all of us, for the industry was, "Are you really able to pass through the inflation? Quick comments on this investment case view. quick comments on this investment case view Well, sorry that we will hammer a little bit on this during the morning, but this has been already proven for a number of years. well sorry that we will hammer a little bit on this during the morning but this has been already proven for a number of years If you look at the Like-for-like gross rental income growth, it's been, number one, consistently above inflation for many years. if you look at the like-for-like gross rental income growth it's been number one consistently above inflation for many years Many of you will remember that when inflation started, the question for all of us, for the industry was, "Are you really able to pass through the inflation? many of you will remember that when inflation started the question for all of us for the industry was "are you really able to pass through the inflation Will you do it?" Because if not, it's a disaster, but if you do it's super important. In fact, markets behave as if you were not available. Years have gone by, and the spread versus indexation, versus inflation has been very important throughout all of the years. That's message number one. As a result of this, the numbers of like-for-like growth have been remarkable. Look at the seven and eight and six in the last four years. Which lead us, again, to a humble remark, which is, and this is happening also with a differential, with a gap versus our peers. Which is maybe not because of us, maybe it's because of the sub-market where we are. Will you do it?" Because if not, it's a disaster, but if you do it's super important. will you do it?" because if not it's a disaster but if you do it's super important In fact, markets behave as if you were not available. in fact markets behave as if you were not available Years have gone by, and the spread versus indexation, versus inflation has been very important throughout all of the years. years have gone by and the spread versus indexation versus inflation has been very important throughout all of the years That's message number one. that's message number one As a result of this, the numbers of like-for-like growth have been remarkable. as a result of this the numbers of like-for-like growth have been remarkable Look at the seven and eight and six in the last four years. look at the seven and eight and six in the last four years Which lead us, again, to a humble remark, which is, and this is happening also with a differential, with a gap versus our peers. which lead us again to a humble remark which is and this is happening also with a differential with a gap versus our peers Which is maybe not because of us, maybe it's because of the sub-market where we are. which is maybe not because of us maybe it's because of the sub-market where we are The other thing about the investment case, which I already started to mention, but we will go through this because we are doing new things all of the time, and the question is, well, what's the logic of these new things that you are doing? Does this mean that you are revisiting your strategy? What's the framework? The message we want to pass to you is we always did this. Many of you we have met in many places, in many meetings, on roadshows. Me always saying the same. Very simple balance sheet, 80%-90% yield income producing trophy assets. 10%-20% new ventures that enhance our return. This combination is better than a plain vanilla passive owner of trophy assets. That provides better returns without compromising the risk profile of the company. The other thing about the investment case, which I already started to mention, but we will go through this because we are doing new things all of the time, and the question is, well, what's the logic of these new things that you are doing? the other thing about the investment case which i already started to mention but we will go through this because we are doing new things all of the time and the question is well what's the logic of these new things that you are doing Does this mean that you are revisiting your strategy? does this mean that you are revisiting your strategy What's the framework? what's the framework The message we want to pass to you is we always did this. the message we want to pass to you is we always did this Many of you we have met in many places, in many meetings, on roadshows. many of you we have met in many places in many meetings on roadshows Me always saying the same. me always saying the same Very simple balance sheet, 80%-90% yield income producing trophy assets. 10%-20% new ventures that enhance our return. very simple balance sheet 80%-90% yield income producing trophy assets 10%-20% new ventures that enhance our return This combination is better than a plain vanilla passive owner of trophy assets. this combination is better than a plain vanilla passive owner of trophy assets That provides better returns without compromising the risk profile of the company. that provides better returns without compromising the risk profile of the company It's always been like this. That's why you will see that in our investment thesis, there are always new kind of ventures getting into the investment scope of the company. The overall conclusion is that our focus remains the same. This is in a framework of capital recycling. Where do we buy and we sell? I won't go into details. Juanma and Alexia will go much more than me into details, and maybe Carmina, too. It's always been like this. it's always been like this That's why you will see that in our investment thesis, there are always new kind of ventures getting into the investment scope of the company. that's why you will see that in our investment thesis there are always new kind of ventures getting into the investment scope of the company The overall conclusion is that our focus remains the same. the overall conclusion is that our focus remains the same This is in a framework of capital recycling. this is in a framework of capital recycling Where do we buy and we sell? where do we buy and we sell I won't go into details. i won't go into details Juanma and Alexia will go much more than me into details, and maybe Carmina, too. juanma and alexia will go much more than me into details and maybe carmina too We've been buying and we've been selling, and basically, the message that we'll share with you is that this is done under a very strict framework of capital allocation with a very strong view on capital structure, on what are the things that we can do and what are the things that we will not do. Where do we stand today? We've been buying and we've been selling, and basically, the message that we'll share with you is that this is done under a very strict framework of capital allocation with a very strong view on capital structure, on what are the things that we can do and what are the things that we will not do. we've been buying and we've been selling and basically the message that we'll share with you is that this is done under a very strict framework of capital allocation with a very strong view on capital structure on what are the things that we can do and what are the things that we will not do Where do we stand today? where do we stand today I will finish with this initial approach to our investment thesis. In this capital recycling view, currently, we are marginally more on divestment mood and deleveraging mood than on the investment mood. That's how we believe we have to manage the cycle. We announced a few months ago a disposal program of EUR 500 million. Juanma will cover this. This is going super well. He will remember to you that everything we've done for many years, all of the several billion EUR we sold always at NAV or GAV or a premium, again this time, and being executed in very good rhythm, in very good speed. I will finish with this initial approach to our investment thesis. In this capital recycling view, currently, we are marginally more on divestment mood and deleveraging mood than on the investment mood. i will finish with this initial approach to our investment thesis. in this capital recycling view currently we are marginally more on divestment mood and deleveraging mood than on the investment mood That's how we believe we have to manage the cycle. that's how we believe we have to manage the cycle We announced a few months ago a disposal program of EUR 500 million. we announced a few months ago a disposal program of eur 500 million Juanma will cover this. juanma will cover this This is going super well. this is going super well He will remember to you that everything we've done for many years, all of the several billion EUR we sold always at NAV or GAV or a premium, again this time, and being executed in very good rhythm, in very good speed. he will remember to you that everything we've done for many years all of the several billion eur we sold always at nav or gav or a premium again this time and being executed in very good rhythm in very good speed Based on these results of this program, we are envisaging an additional program of divestments that by now looking at the market, we are seeing around EUR 200 million. That's the disposals. The new investments are more in the range of EUR 200 million. About the EUR 200 million, the investment thesis. It's all about prime, first of all, as the first remark before any other consideration. Based on these results of this program, we are envisaging an additional program of divestments that by now looking at the market, we are seeing around EUR 200 million. based on these results of this program we are envisaging an additional program of divestments that by now looking at the market we are seeing around eur 200 million That's the disposals. that's the disposals The new investments are more in the range of EUR 200 million. the new investments are more in the range of eur 200 million About the EUR 200 million, the investment thesis. about the eur 200 million the investment thesis It's all about prime, first of all, as the first remark before any other consideration. it's all about prime first of all as the first remark before any other consideration First of all, our mission statement remains the same. Which are the caveats? Well, first of all, we may consider doing different things. Let's not forget within a framework of capital allocation discipline, but open to two things. One is the way cities are evolving in Europe today. Sometimes there are windows of opportunity for higher value creation in a different use. We are not shy about this. You just walk through some residential here on your path towards this meeting. Well, we did it because when we bought this 100,000 sq m, eight years ago or something like that it was, we thought 100,000 sq m, this part of town, the best use is putting at least 30,000 of residential and the rest office. First of all, our mission statement remains the same. first of all our mission statement remains the same Which are the caveats? which are the caveats Well, first of all, we may consider doing different things. well first of all we may consider doing different things Let's not forget within a framework of capital allocation discipline, but open to two things. let's not forget within a framework of capital allocation discipline but open to two things One is the way cities are evolving in Europe today. one is the way cities are evolving in europe today Sometimes there are windows of opportunity for higher value creation in a different use. sometimes there are windows of opportunity for higher value creation in a different use We are not shy about this. we are not shy about this You just walk through some residential here on your path towards this meeting. you just walk through some residential here on your path towards this meeting Well, we did it because when we bought this 100,000 sq m, eight years ago or something like that it was, we thought 100,000 sq m, this part of town, the best use is putting at least 30,000 of residential and the rest office. well we did it because when we bought this 100,000 sq m eight years ago or something like that it was we thought 100,000 sq m this part of town the best use is putting at least 30,000 of residential and the rest office We did it. Who did it? Us. We did all of the development. Albert here played a big role in this. We did it. About the strategic thinking, the outcome was we sold it. We sold it at a nice premium. We are not shy about this. We do it on a regular basis. We did the Mandarin Oriental in Paris just some years ago. We are doing a hospital in Barcelona because a much better use than a traditional office. We are also considering, as we'll talk now, a big project of student accommodation in Madrid. We did it. we did it Who did it? who did it Us. us We did all of the development. we did all of the development Albert here played a big role in this. albert here played a big role in this We did it. we did it About the strategic thinking, the outcome was we sold it. about the strategic thinking the outcome was we sold it We sold it at a nice premium. we sold it at a nice premium We are not shy about this. we are not shy about this We do it on a regular basis. we do it on a regular basis We did the Mandarin Oriental in Paris just some years ago. we did the mandarin oriental in paris just some years ago We are doing a hospital in Barcelona because a much better use than a traditional office. we are doing a hospital in barcelona because a much better use than a traditional office We are also considering, as we'll talk now, a big project of student accommodation in Madrid. we are also considering as we'll talk now a big project of student accommodation in madrid This is extracting maximum value from our platform, from the skills of our platform. The other remark is, this prime can happen in Madrid, can happen in Paris, can happen in other European cities. We are currently looking at opportunities. We are currently looking at opportunities in Germany, and we are quite advanced in doing something in a German city. This is extracting maximum value from our platform, from the skills of our platform. this is extracting maximum value from our platform from the skills of our platform The other remark is, this prime can happen in Madrid, can happen in Paris, can happen in other European cities. the other remark is this prime can happen in madrid can happen in paris can happen in other european cities We are currently looking at opportunities. we are currently looking at opportunities We are currently looking at opportunities in Germany, and we are quite advanced in doing something in a German city. we are currently looking at opportunities in germany and we are quite advanced in doing something in a german city Why this? Well, first of all, as I say, it's not about Germany, it's about prime. We want to have a level playing field as a market that is wide enough for us to develop our capabilities. Does this mean that we don't like Madrid, we don't like Paris? No, we like them. There's a picture that somebody told me. Look, this picture here you see in the middle, it's about an asset that is not ours. Yes, it's true. This is an asset that is in the market as we speak. I don't know, maybe you saw it in the press. It's Les Bermudes. It's a trophy asset project that is in the market as we speak. Why this? why this Well, first of all, as I say, it's not about Germany, it's about prime. well first of all as i say it's not about germany it's about prime We want to have a level playing field as a market that is wide enough for us to develop our capabilities. we want to have a level playing field as a market that is wide enough for us to develop our capabilities Does this mean that we don't like Madrid, we don't like Paris? does this mean that we don't like madrid we don't like paris No, we like them. no we like them There's a picture that somebody told me. there's a picture that somebody told me Look, this picture here you see in the middle, it's about an asset that is not ours. look this picture here you see in the middle it's about an asset that is not ours Yes, it's true. yes it's true This is an asset that is in the market as we speak. this is an asset that is in the market as we speak I don't know, maybe you saw it in the press. i don't know maybe you saw it in the press It's Les Bermudes. it's les bermudes It's a trophy asset project that is in the market as we speak. it's a trophy asset project that is in the market as we speak We look for it. Did we like it? Yes. Were we ready to invest there? Yes. By the way, this is a EUR 400 million a year project with a number of investors that want to come with us. We are allocating a limited amount of our money. What happened? Do you remember the Trocadéro experience? A trophy asset comes in the market. 12 people queuing for that asset, which is interesting. We may talk about Paris, but that's a good example about the different dynamics that are happening in Paris. We look for it. we look for it Did we like it? did we like it Yes. yes Were we ready to invest there? were we ready to invest there Yes. yes By the way, this is a EUR 400 million a year project with a number of investors that want to come with us. by the way this is a eur 400 million a year project with a number of investors that want to come with us We are allocating a limited amount of our money. we are allocating a limited amount of our money What happened? what happened Do you remember the Trocadéro experience? do you remember the trocadéro experience A trophy asset comes in the market. 12 people queuing for that asset, which is interesting. a trophy asset comes in the market 12 people queuing for that asset which is interesting We may talk about Paris, but that's a good example about the different dynamics that are happening in Paris. we may talk about paris but that's a good example about the different dynamics that are happening in paris We bid for Trocadéro too, with a number of investors that were supporting us. That's another remark, because we don't compromise our expected returns. We were expelled and thrown through the window in the early stages of the process, which for us was sad and happy at the same time to see the market dynamics. Les Bermudes has been a little bit of the same. We bid for Trocadéro too, with a number of investors that were supporting us. we bid for trocadéro too with a number of investors that were supporting us That's another remark, because we don't compromise our expected returns. that's another remark because we don't compromise our expected returns We were expelled and thrown through the window in the early stages of the process, which for us was sad and happy at the same time to see the market dynamics. Les Bermudes has been a little bit of the same. we were expelled and thrown through the window in the early stages of the process which for us was sad and happy at the same time to see the market dynamics. les bermudes has been a little bit of the same We've been thrown through the window quite soon. Which tell us some remarks or takeaways. We don't want to invest in Paris, of course. Are we condemned to a future where we are walking Champs-Élysées up or down looking for these kind of things, and when we have one, then there are 15 people surrounding us wanting to chase this at an unreasonable IRRs according to our judgment. We've been thrown through the window quite soon. we've been thrown through the window quite soon Which tell us some remarks or takeaways. which tell us some remarks or takeaways We don't want to invest in Paris, of course. we don't want to invest in paris of course Are we condemned to a future where we are walking Champs-Élysées up or down looking for these kind of things, and when we have one, then there are 15 people surrounding us wanting to chase this at an unreasonable IRRs according to our judgment. are we condemned to a future where we are walking champs-élysées up or down looking for these kind of things and when we have one, then there are 15 people surrounding us wanting to chase this at an unreasonable irrs according to our judgment Our level playing field has to be wider. What is happening in Germany? There's no 12 people for a prime trophy asset in the negotiation. The expected returns, adjusted for risk, adjusted for quality, are higher. Why shouldn't we take a look at this? That's what we are doing. These are the dynamics. As I said, more driven by real estate judgment, micro analytics, not so much about macro. If we have to have discussion about macro long-term view of the markets, we can also have a discussion about the future of different geographies in a few years. I think that only talking at the level of real estate rationale, it makes a lot of sense. Our level playing field has to be wider. our level playing field has to be wider What is happening in Germany? what is happening in germany There's no 12 people for a prime trophy asset in the negotiation. there's no 12 people for a prime trophy asset in the negotiation The expected returns, adjusted for risk, adjusted for quality, are higher. the expected returns adjusted for risk adjusted for quality are higher Why shouldn't we take a look at this? why shouldn't we take a look at this That's what we are doing. that's what we are doing These are the dynamics. these are the dynamics As I said, more driven by real estate judgment, micro analytics, not so much about macro. as i said more driven by real estate judgment micro analytics not so much about macro If we have to have discussion about macro long-term view of the markets, we can also have a discussion about the future of different geographies in a few years. if we have to have discussion about macro long-term view of the markets we can also have a discussion about the future of different geographies in a few years I think that only talking at the level of real estate rationale, it makes a lot of sense. i think that only talking at the level of real estate rationale it makes a lot of sense My final remark is, all of this in a framework of being prudent. The problem when you do something new, even if it's tiny, it's that people get the impression that we are doing nothing else but this, and that's the company, the new thing that we are doing. We have a more, let's say, wider view. You have bring us your confidence in us managing a EUR 12 billion portfolio, and we believe it's wise to devote EUR 200 out of EUR 12 billion to these things. My final remark is, all of this in a framework of being prudent. my final remark is all of this in a framework of being prudent The problem when you do something new, even if it's tiny, it's that people get the impression that we are doing nothing else but this, and that's the company, the new thing that we are doing. the problem when you do something new even if it's tiny it's that people get the impression that we are doing nothing else but this and that's the company the new thing that we are doing We have a more, let's say, wider view. we have a more let's say wider view You have bring us your confidence in us managing a EUR 12 billion portfolio, and we believe it's wise to devote EUR 200 out of EUR 12 billion to these things. you have bring us your confidence in us managing a eur 12 billion portfolio and we believe it's wise to devote eur 200 out of eur 12 billion to these things That makes sense because it's within a framework that makes sense, but this doesn't challenge our strategic view. That remains crystal clear what we have to deliver for shareholders in the present and in the future. These are investment thesis. Going back to what I mentioned before, the plan now is to walk you through a deeper view of our way of approaching the management of our assets, then a view of the financial background, the capital discipline, and again, this capital allocation framework that is embracing everything, to end, coming back to our strategy, to our new investments, and to the future that we expect for Colonial. That makes sense because it's within a framework that makes sense, but this doesn't challenge our strategic view. that makes sense because it's within a framework that makes sense but this doesn't challenge our strategic view That remains crystal clear what we have to deliver for shareholders in the present and in the future. that remains crystal clear what we have to deliver for shareholders in the present and in the future These are investment thesis. these are investment thesis Going back to what I mentioned before, the plan now is to walk you through a deeper view of our way of approaching the management of our assets, then a view of the financial background, the capital discipline, and again, this capital allocation framework that is embracing everything, to end, coming back to our strategy, to our new investments, and to the future that we expect for Colonial. going back to what i mentioned before the plan now is to walk you through a deeper view of our way of approaching the management of our assets then a view of the financial background the capital discipline and again this capital allocation framework that is embracing everything to end coming back to our strategy to our new investments and to the future that we expect for colonial This would be my first presentation. I probably already killed the agenda about timing. Sorry about that. We'll manage it. Since I'm the last speaker, I will be the buffer to adapt for everything to take place in the right timing. Thank you. I give the word to Juanma and to Alexia. Thank you. This would be my first presentation. this would be my first presentation I probably already killed the agenda about timing. i probably already killed the agenda about timing Sorry about that. sorry about that We'll manage it. we'll manage it Since I'm the last speaker, I will be the buffer to adapt for everything to take place in the right timing. since i'm the last speaker i will be the buffer to adapt for everything to take place in the right timing Thank you. thank you I give the word to Juanma and to Alexia. i give the word to juanma and to alexia Thank you. thank you

Speaker 4: Thank you, Pere. Welcome everyone here. I think it's a privilege to see you here in Madrid. As Pere was saying, let me just take one minute. When we land here the eight years ago, it was a massive plot. Some of the investors would say at that time, in the middle of nowhere, they were completely wrong. We're just, and you may notice, seven minutes away from Atocha high-speed train station. Thank you, Pere. thank you pere Welcome everyone here. welcome everyone here I think it's a privilege to see you here in Madrid. i think it's a privilege to see you here in madrid As Pere was saying, let me just take one minute. as pere was saying let me just take one minute When we land here the eight years ago, it was a massive plot. when we land here the eight years ago it was a massive plot Some of the investors would say at that time, in the middle of nowhere, they were completely wrong. some of the investors would say at that time in the middle of nowhere they were completely wrong We're just, and you may notice, seven minutes away from Atocha high-speed train station. we're just and you may notice seven minutes away from atocha high-speed train station We are so close to Castellana, and we realize this was part of our DNA. I think you have felt the atmosphere today just walking through and coming to this auditorium. Everything that is going to be said during this presentation, together with Alexia, is with regards to this DNA. Forgive me if I just repeat some of the message of Pere. Maybe I have the privilege to have this presentation before the coffee break, so I will try to be efficient. We are so close to Castellana, and we realize this was part of our DNA. we are so close to castellana and we realize this was part of our dna I think you have felt the atmosphere today just walking through and coming to this auditorium. i think you have felt the atmosphere today just walking through and coming to this auditorium Everything that is going to be said during this presentation, together with Alexia, is with regards to this DNA. everything that is going to be said during this presentation together with alexia is with regards to this dna Forgive me if I just repeat some of the message of Pere. forgive me if i just repeat some of the message of pere Maybe I have the privilege to have this presentation before the coffee break, so I will try to be efficient. maybe i have the privilege to have this presentation before the coffee break so i will try to be efficient As Pere mentioned before, it's all about the three pillars that form our prime business asset class model. This is within three main pillars. The first pillar is with regards to our existing portfolio. Our existing portfolio, we don't buy or we don't hold the assets and that's it. End of story. It's, I would say, regular work with the operational teams, thinking about how to squeeze the value every day of these assets, how to increase the growth, how to create value. This is what we are devoted to. As Pere mentioned before, it's all about the three pillars that form our prime business asset class model. as pere mentioned before it's all about the three pillars that form our prime business asset class model This is within three main pillars. this is within three main pillars The first pillar is with regards to our existing portfolio. the first pillar is with regards to our existing portfolio Our existing portfolio, we don't buy or we don't hold the assets and that's it. our existing portfolio we don't buy or we don't hold the assets and that's it End of story. end of story It's, I would say, regular work with the operational teams, thinking about how to squeeze the value every day of these assets, how to increase the growth, how to create value. it's i would say regular work with the operational teams thinking about how to squeeze the value every day of these assets how to increase the growth how to create value This is what we are devoted to. this is what we are devoted to This give us and enable us to have this pricing power and differentiation effect from other peers, and as it's been disclosed during the first presentation, to achieve over time a strong reversion with this spread. Second pillar, it's with regards to our capability to transform assets from the scratch or through full refurbishment. We've done it. You will see in a later slide, during many years. The most important thing, we have harvest and show to the market the returns that we have achieved. It has led us to have this superior value creation. This give us and enable us to have this pricing power and differentiation effect from other peers, and as it's been disclosed during the first presentation, to achieve over time a strong reversion with this spread. this give us and enable us to have this pricing power and differentiation effect from other peers and as it's been disclosed during the first presentation to achieve over time a strong reversion with this spread Second pillar, it's with regards to our capability to transform assets from the scratch or through full refurbishment. second pillar it's with regards to our capability to transform assets from the scratch or through full refurbishment We've done it. we've done it You will see in a later slide, during many years. you will see in a later slide during many years The most important thing, we have harvest and show to the market the returns that we have achieved. the most important thing we have harvest and show to the market the returns that we have achieved It has led us to have this superior value creation. it has led us to have this superior value creation The third pillar, it's so important in today's environment. Through a very disciplined framework, We don't just take by coincidence decisions. We are doing everything through a smart asset allocation model. We are buying at the same time we are disposing assets. We don't say, "During these months, we are going to acquire assets." We are doing everything at the same time to create value. The third pillar, it's so important in today's environment. the third pillar it's so important in today's environment Through a very disciplined framework, We don't just take by coincidence decisions. through a very disciplined framework we don't just take by coincidence decisions We are doing everything through a smart asset allocation model. we are doing everything through a smart asset allocation model We are buying at the same time we are disposing assets. we are buying at the same time we are disposing assets We don't say, "During these months, we are going to acquire assets." We are doing everything at the same time to create value. we don't say "during these months we are going to acquire assets." we are doing everything at the same time to create value As a result of this strategy, sometimes we are more inclined to deleverage, to be strict and prudent with our capital structure. Others, we want to rely on the cycle, and we want to make the most of the opportunity, as Pere was mentioning before, in different places where we are sure we could be doing returns in the future to come. As a result of this strategy, sometimes we are more inclined to deleverage, to be strict and prudent with our capital structure. as a result of this strategy sometimes we are more inclined to deleverage to be strict and prudent with our capital structure Others, we want to rely on the cycle, and we want to make the most of the opportunity, as Pere was mentioning before, in different places where we are sure we could be doing returns in the future to come. others we want to rely on the cycle and we want to make the most of the opportunity as pere was mentioning before in different places where we are sure we could be doing returns in the future to come If we start, and I think it's obvious it's been said, the value of our portfolio relies on it's a unique and irreplicable portfolio comprising in excess of 80 amazing, prominent, standalone assets in the three cities we are today. You can see here the pictures. Obviously, it's worth the image rather than the words. All of these assets have been transformed by Colonial, have been created by Colonial in many different situations. If we start, and I think it's obvious it's been said, the value of our portfolio relies on it's a unique and irreplicable portfolio comprising in excess of 80 amazing, prominent, standalone assets in the three cities we are today. if we start and i think it's obvious it's been said the value of our portfolio relies on it's a unique and irreplicable portfolio comprising in excess of 80 amazing prominent standalone assets in the three cities we are today You can see here the pictures. you can see here the pictures Obviously, it's worth the image rather than the words. obviously it's worth the image rather than the words All of these assets have been transformed by Colonial, have been created by Colonial in many different situations. all of these assets have been transformed by colonial have been created by colonial in many different situations Either from the scratch, from a plot in the middle of nowhere, to full refurbishment like Diagonal 530, to the change of a project like it was Velázquez, that it has become the reference in the prime office sector in Madrid. Many, many different situation. I think this portfolio, as Pere was mentioning, cannot be replicated. Those landmark assets in these locations where there's a chronic supply shortage. Either from the scratch, from a plot in the middle of nowhere, to full refurbishment like Diagonal 530, to the change of a project like it was Velázquez, that it has become the reference in the prime office sector in Madrid. either from the scratch from a plot in the middle of nowhere to full refurbishment like diagonal 530 to the change of a project like it was velázquez that it has become the reference in the prime office sector in madrid Many, many different situation. many many different situation I think this portfolio, as Pere was mentioning, cannot be replicated. i think this portfolio as pere was mentioning cannot be replicated Those landmark assets in these locations where there's a chronic supply shortage. those landmark assets in these locations where there's a chronic supply shortage There is a value behind, and that explain why we are so persistent in trying to get and extract the maximum value of our assets. It's about location, obviously. It's about being in the prime CBD areas. I think we are obsessed, but it's part of our passion to design the best products. When we come to this, we try to have this driver of our clients. How can we enrich the experience of our client? There is a value behind, and that explain why we are so persistent in trying to get and extract the maximum value of our assets. there is a value behind and that explain why we are so persistent in trying to get and extract the maximum value of our assets It's about location, obviously. it's about location obviously It's about being in the prime CBD areas. it's about being in the prime cbd areas I think we are obsessed, but it's part of our passion to design the best products. i think we are obsessed but it's part of our passion to design the best products When we come to this, we try to have this driver of our clients. when we come to this we try to have this driver of our clients How can we enrich the experience of our client? how can we enrich the experience of our client That's why you can see here in the screen, we have three pillars for the design of our products. We want to foster experience. We want to have efficiency and through the best environmental standards. If it comes to experience, you have obviously first factor, location. It's essential in this polarized world. That's why you can see here in the screen, we have three pillars for the design of our products. that's why you can see here in the screen we have three pillars for the design of our products We want to foster experience. we want to foster experience We want to have efficiency and through the best environmental standards. we want to have efficiency and through the best environmental standards If it comes to experience, you have obviously first factor, location. if it comes to experience you have obviously first factor location It's essential in this polarized world. it's essential in this polarized world That's why and explain, as we saw before, we are close to 100% located in central CBD and prime locations in Paris, Madrid, and Barcelona. We foster the experience of the client through the combination of different areas. This is a great example. You may see later people coming. Well, probably today is not a good example because due to the Pope visit to Madrid, everyone has remained at home. We were expecting the city to be a chaos. That's why and explain, as we saw before, we are close to 100% located in central CBD and prime locations in Paris, Madrid, and Barcelona. that's why and explain as we saw before we are close to 100% located in central cbd and prime locations in paris madrid and barcelona We foster the experience of the client through the combination of different areas. we foster the experience of the client through the combination of different areas This is a great example. this is a great example You may see later people coming. you may see later people coming Well, probably today is not a good example because due to the Pope visit to Madrid, everyone has remained at home. well probably today is not a good example because due to the pope visit to madrid everyone has remained at home We were expecting the city to be a chaos. we were expecting the city to be a chaos Maybe today is not the best example, but I just welcome you to come here, to come back, and to see all the employees coming to the food and beverage areas, to use all the coworking spaces, all these services of the auditorium, et cetera. What are we doing in terms of design? We are trying and 58% of our properties provides large floor plates that links to efficiency together with the horizontal buildings scheme. Maybe today is not the best example, but I just welcome you to come here, to come back, and to see all the employees coming to the food and beverage areas, to use all the coworking spaces, all these services of the auditorium, et cetera. maybe today is not the best example but i just welcome you to come here to come back and to see all the employees coming to the food and beverage areas to use all the coworking spaces all these services of the auditorium et cetera What are we doing in terms of design? what are we doing in terms of design We are trying and 58% of our properties provides large floor plates that links to efficiency together with the horizontal buildings scheme. we are trying and 58% of our properties provides large floor plates that links to efficiency together with the horizontal buildings scheme That has made us possible to have this multi-tenant, de-risk client base. It's not about one sector, it's not about companies of one sector. It's about companies of many different high-margin sectors. When we speak about the environment, you all know we are top-ranked in best-in-class sustainability certifications on all the environmental and ESG policy. Maybe now it's worth if you just can tell us about clients. That has made us possible to have this multi-tenant, de-risk client base. that has made us possible to have this multi-tenant de-risk client base It's not about one sector, it's not about companies of one sector. it's not about one sector it's not about companies of one sector It's about companies of many different high-margin sectors. it's about companies of many different high-margin sectors When we speak about the environment, you all know we are top-ranked in best-in-class sustainability certifications on all the environmental and ESG policy. when we speak about the environment you all know we are top-ranked in best-in-class sustainability certifications on all the environmental and esg policy Maybe now it's worth if you just can tell us about clients. maybe now it's worth if you just can tell us about clients

Speaker 1: Thank you, Juan. Good morning, everyone. It's true that this active management approach is probably the result of the quality of our portfolio. You have seen it. It's also maybe the fact that we have internally all the functions to handle it, to promote it in order to do one thing: To attract and to retain clients. Even if location is clearly still the first criteria for companies, prime offices are no longer just about location. Thank you, Juan. thank you juan Good morning, everyone. good morning everyone It's true that this active management approach is probably the result of the quality of our portfolio. it's true that this active management approach is probably the result of the quality of our portfolio You have seen it. you have seen it It's also maybe the fact that we have internally all the functions to handle it, to promote it in order to do one thing: To attract and to retain clients. it's also maybe the fact that we have internally all the functions to handle it to promote it in order to do one thing to attract and to retain clients Even if location is clearly still the first criteria for companies, prime offices are no longer just about location. even if location is clearly still the first criteria for companies prime offices are no longer just about location We have talked about many project. Madnum is a tremendous example. Now, companies are willing not just to have places to work. They are willing to look for strategic tools in which every time we design bespoke space in order to, again, meet the needs of the most demanding and sophisticated clients. We have obviously many examples on this slide. We have talked about many project. we have talked about many project Madnum is a tremendous example. madnum is a tremendous example Now, companies are willing not just to have places to work. now companies are willing not just to have places to work They are willing to look for strategic tools in which every time we design bespoke space in order to, again, meet the needs of the most demanding and sophisticated clients. they are willing to look for strategic tools in which every time we design bespoke space in order to again meet the needs of the most demanding and sophisticated clients We have obviously many examples on this slide. we have obviously many examples on this slide In all the cities we are invested in, and especially across several sectors, we have amazing clients and very prestigious clients. We can tell about tech companies with Meta and more recently, Pinterest. We have also clients in the finance field with, let's say, many of them like Grant Thornton or many others. We have also fashion industry with LVMH, Alloe in retail also units, as well as many others and so on. In all the cities we are invested in, and especially across several sectors, we have amazing clients and very prestigious clients. in all the cities we are invested in and especially across several sectors we have amazing clients and very prestigious clients We can tell about tech companies with Meta and more recently, Pinterest. we can tell about tech companies with meta and more recently pinterest We have also clients in the finance field with, let's say, many of them like Grant Thornton or many others. we have also clients in the finance field with let's say many of them like grant thornton or many others We have also fashion industry with LVMH, Alloe in retail also units, as well as many others and so on. we have also fashion industry with lvmh alloe in retail also units as well as many others and so on The idea is to do this kind of amazing project every time, and a good illustration and a typical illustration could be Édouard VII, as you're seeing here. Édouard VII is a masterpiece. He's really almost a piece of Paris, more than one hectare site in the middle of the 9th district, one of the most sought-after area, both for companies and employees. The idea is to do this kind of amazing project every time, and a good illustration and a typical illustration could be Édouard VII, as you're seeing here. the idea is to do this kind of amazing project every time and a good illustration and a typical illustration could be édouard vii as you're seeing here Édouard VII is a masterpiece. édouard vii is a masterpiece He's really almost a piece of Paris, more than one hectare site in the middle of the 9th district, one of the most sought-after area, both for companies and employees. he's really almost a piece of paris more than one hectare site in the middle of the 9th district one of the most sought-after area both for companies and employees This is a mixed-use complex, and if we are reminding all the criteria Juan just told us regarding what we are expecting and what our clients are expected, it's a large-scale scheme, more than 54,000 sq m. With large and horizontal and very modern floor plates, even if the architecture is very typical of a Parisian style. It's also mixed-use and multi-tenant. We have more than 14 office tenants in this building, creating a real attraction and vibrancy in this complex. This is a mixed-use complex, and if we are reminding all the criteria Juan just told us regarding what we are expecting and what our clients are expected, it's a large-scale scheme, more than 54,000 sq m. this is a mixed-use complex and if we are reminding all the criteria juan just told us regarding what we are expecting and what our clients are expected it's a large-scale scheme more than 54,000 sq m With large and horizontal and very modern floor plates, even if the architecture is very typical of a Parisian style. with large and horizontal and very modern floor plates even if the architecture is very typical of a parisian style It's also mixed-use and multi-tenant. it's also mixed-use and multi-tenant We have more than 14 office tenants in this building, creating a real attraction and vibrancy in this complex. we have more than 14 office tenants in this building creating a real attraction and vibrancy in this complex When we are talking about mixed-use here, it's about the district, the area, the direct area, but also inside the building. We have, obviously prime offices, but also a retail mix that creates really vibrancy in the area, as well as a hotel, two famous theaters, including the Olympia. We have also residential and living units, also co-living inside. When we are talking about mixed-use here, it's about the district, the area, the direct area, but also inside the building. when we are talking about mixed-use here it's about the district the area the direct area but also inside the building We have, obviously prime offices, but also a retail mix that creates really vibrancy in the area, as well as a hotel, two famous theaters, including the Olympia. we have obviously prime offices but also a retail mix that creates really vibrancy in the area as well as a hotel two famous theaters including the olympia We have also residential and living units, also co-living inside. we have also residential and living units also co-living inside We have a public parking, we have an auditorium, meeting rooms, and also dedicated services to the office clients, from a restaurant to a cafe, as well as a fitness center and a bike park. I have many other examples of this kind of project. I could talk to you about Cloud, about Washington Plaza. This is the typical kind of product we want to invest in, we want to develop. We have a public parking, we have an auditorium, meeting rooms, and also dedicated services to the office clients, from a restaurant to a cafe, as well as a fitness center and a bike park. we have a public parking we have an auditorium meeting rooms and also dedicated services to the office clients from a restaurant to a cafe as well as a fitness center and a bike park I have many other examples of this kind of project. i have many other examples of this kind of project I could talk to you about Cloud, about Washington Plaza. i could talk to you about cloud about washington plaza This is the typical kind of product we want to invest in, we want to develop. this is the typical kind of product we want to invest in we want to develop In order, again, to meet the client's expectation, these buildings are fully occupied with consistently strong rental growth. This is what we believe is the new trend. Could be in the next few months, AI companies that are looking for these kind of buildings. We are really trying to do our best to develop, again, increase this kind of amazing landmark in our company. How we do that? We also use our competency to develop, with the Alpha X project. Juan will talk about it right now. In order, again, to meet the client's expectation, these buildings are fully occupied with consistently strong rental growth. in order again to meet the client's expectation these buildings are fully occupied with consistently strong rental growth This is what we believe is the new trend. this is what we believe is the new trend Could be in the next few months, AI companies that are looking for these kind of buildings. could be in the next few months ai companies that are looking for these kind of buildings We are really trying to do our best to develop, again, increase this kind of amazing landmark in our company. we are really trying to do our best to develop again increase this kind of amazing landmark in our company How we do that? how we do that We also use our competency to develop, with the Alpha X project. we also use our competency to develop with the alpha x project Juan will talk about it right now. juan will talk about it right now

Speaker 4: Okay. Thank you very much, Alexia. Yes, going through the second pillar. It's been said at the beginning that we have constantly and consistently contributing to the value of the company with the transformation of projects during the last 15 years. Here, you may see two generations of projects. It's not about one big project and period, full stop. It's about many different projects. This is explaining why we are talking about Alpha X. We are not talking about Alpha 2. Okay. okay Thank you very much, Alexia. thank you very much alexia Yes, going through the second pillar. yes going through the second pillar It's been said at the beginning that we have constantly and consistently contributing to the value of the company with the transformation of projects during the last 15 years. it's been said at the beginning that we have constantly and consistently contributing to the value of the company with the transformation of projects during the last 15 years Here, you may see two generations of projects. here you may see two generations of projects It's not about one big project and period, full stop. it's not about one big project and period full stop It's about many different projects. it's about many different projects This is explaining why we are talking about Alpha X. this is explaining why we are talking about alpha x We are not talking about Alpha 2. we are not talking about alpha 2 With this regard, under our discipline, we are reaching 9%-10% unlevered IRR returns with capital gain on cost blended basis from 50%-70%. I would say outstanding and very famous projects within the different cities where we are working, reference that we've been awarded over the years by many different organizations. You are going to visit today, obviously, Madnum. You're going to visit Velázquez. With this regard, under our discipline, we are reaching 9%-10% unlevered IRR returns with capital gain on cost blended basis from 50%-70%. with this regard under our discipline we are reaching 9%-10% unlevered irr returns with capital gain on cost blended basis from 50%-70% I would say outstanding and very famous projects within the different cities where we are working, reference that we've been awarded over the years by many different organizations. i would say outstanding and very famous projects within the different cities where we are working reference that we've been awarded over the years by many different organizations You are going to visit today, obviously, Madnum. you are going to visit today obviously madnum You're going to visit Velázquez. you're going to visit velázquez You can see here how the large scale of the projects, the critical mass. Some of them, we have already sold them, and this is linked to the third pillar. Let me just go quickly because we have already spoken about Madnum, and maybe it's just worth having this tour and answering the questions during the tour. This is what I said before. See at the left-hand sides what was the reality of Méndez Álvaro some years ago. You can see here how the large scale of the projects, the critical mass. you can see here how the large scale of the projects the critical mass Some of them, we have already sold them, and this is linked to the third pillar. some of them we have already sold them and this is linked to the third pillar Let me just go quickly because we have already spoken about Madnum, and maybe it's just worth having this tour and answering the questions during the tour. let me just go quickly because we have already spoken about madnum and maybe it's just worth having this tour and answering the questions during the tour This is what I said before. this is what i said before See at the left-hand sides what was the reality of Méndez Álvaro some years ago. see at the left-hand sides what was the reality of méndez álvaro some years ago What is today? Well, many different institutional investors have come behind us, and they have developed other schemes, residential schemes, PBSA, flex living, retail, hotels. It was not just to develop an office property. It was about urban transformation. We have clearly transformed this urban area. The mayor, his team, and the town planning authorities have called us many times. What is today? what is today Well, many different institutional investors have come behind us, and they have developed other schemes, residential schemes, PBSA, flex living, retail, hotels. well many different institutional investors have come behind us and they have developed other schemes residential schemes pbsa flex living retail hotels It was not just to develop an office property. it was not just to develop an office property It was about urban transformation. it was about urban transformation We have clearly transformed this urban area. we have clearly transformed this urban area The mayor, his team, and the town planning authorities have called us many times. the mayor his team and the town planning authorities have called us many times I just remember a week ago, they said, "Look, we want you to have a leading role in designing priority areas of new development in Madrid, because we want more Madnums to come to the city." It's not just one asset, and I think we can say this with many different projects that we have shown you in the past. I just remember a week ago, they said, "Look, we want you to have a leading role in designing priority areas of new development in Madrid, because we want more Madnums to come to the city." It's not just one asset, and I think we can say this with many different projects that we have shown you in the past. i just remember a week ago they said "look we want you to have a leading role in designing priority areas of new development in madrid because we want more madnums to come to the city." it's not just one asset and i think we can say this with many different projects that we have shown you in the past Obviously, it's not just a design, it's linked with the client attraction that Alexia was mentioning. If we can attract talent, we attract, obviously, companies. We make employees, they would like to come here, and they are not complaining about coming to the office space, and this is contributing to the benefit of our clients. Here, you can see that we have already achieved 88%, but I think the good news is that probably in two, three months, we will be reaching close to 100%, 97%. Obviously, it's not just a design, it's linked with the client attraction that Alexia was mentioning. obviously it's not just a design it's linked with the client attraction that alexia was mentioning If we can attract talent, we attract, obviously, companies. if we can attract talent we attract obviously companies We make employees, they would like to come here, and they are not complaining about coming to the office space, and this is contributing to the benefit of our clients. we make employees they would like to come here and they are not complaining about coming to the office space and this is contributing to the benefit of our clients Here, you can see that we have already achieved 88%, but I think the good news is that probably in two, three months, we will be reaching close to 100%, 97%. here you can see that we have already achieved 88% but i think the good news is that probably in two three months we will be reaching close to 100% 97% From underwriting rents, we have exceeded 25%. At the beginning, this was called a second area within the M30 ring road outside the CBD. Today, because the rental performance brokers want to have Madnum as part of the CBD. This is a reflection of the urban transformation effects. If we move to super prime area, I was saying, like Velázquez. Velázquez has been a super successful project. We started negotiating with the existing tenants. Those tenants were paying EUR 18, EUR 19, EUR 20 per square meter per month. From underwriting rents, we have exceeded 25%. from underwriting rents we have exceeded 25% At the beginning, this was called a second area within the M30 ring road outside the CBD. at the beginning this was called a second area within the m30 ring road outside the cbd Today, because the rental performance brokers want to have Madnum as part of the CBD. today because the rental performance brokers want to have madnum as part of the cbd This is a reflection of the urban transformation effects. this is a reflection of the urban transformation effects If we move to super prime area, I was saying, like Velázquez. if we move to super prime area i was saying like velázquez Velázquez has been a super successful project. velázquez has been a super successful project We started negotiating with the existing tenants. we started negotiating with the existing tenants Those tenants were paying EUR 18, EUR 19, EUR 20 per square meter per month. those tenants were paying eur 18, eur 19, eur 20 per square meter per month Our first objective was to, let's say this way, get rid of those clients to start with the transformation of the asset. It was a complex project, but we did it, and we moved some of those clients to other properties of Colonial, like Discovery. I think the design is, you'll see later, it's state of the art. Our first objective was to, let's say this way, get rid of those clients to start with the transformation of the asset. our first objective was to let's say this way get rid of those clients to start with the transformation of the asset It was a complex project, but we did it, and we moved some of those clients to other properties of Colonial, like Discovery. it was a complex project but we did it and we moved some of those clients to other properties of colonial like discovery I think the design is, you'll see later, it's state of the art. i think the design is you'll see later it's state of the art One of the most attractive terraces within the city. We have innovated in the sense that the operational team led by Albert, they have included common areas within the gross lettable area of the clients. They are super happy to pay for those areas because they enjoy those areas, they use those areas. Later we will see this. Alexia, maybe some great project in France deserve your words. One of the most attractive terraces within the city. one of the most attractive terraces within the city We have innovated in the sense that the operational team led by Albert, they have included common areas within the gross lettable area of the clients. we have innovated in the sense that the operational team led by albert they have included common areas within the gross lettable area of the clients They are super happy to pay for those areas because they enjoy those areas, they use those areas. they are super happy to pay for those areas because they enjoy those areas they use those areas Later we will see this. later we will see this Alexia, maybe some great project in France deserve your words. alexia maybe some great project in france deserve your words

Speaker 1: Thank you. You are probably very familiar with this operation in the middle of the heart of Paris, which is called Louvre Saint-Honoré in-house. This is also a large-scale, mixed-use building, more than 45,000 sq m. Let's say half office, half retail. If we take a look at the operation on a value creation standpoint, this is again a tremendous success. You can see on the slide, we have a value creation with a multiple of almost three, which is impressive. The idea is to understand how do we achieve this kind of project? Clearly, it's a middle to long-term view. You have to have a lot of convictions, and ambition, and discipline. Thank you. thank you You are probably very familiar with this operation in the middle of the heart of Paris, which is called Louvre Saint-Honoré in-house. you are probably very familiar with this operation in the middle of the heart of paris which is called louvre saint-honoré in-house This is also a large-scale, mixed-use building, more than 45,000 sq m. this is also a large-scale mixed-use building more than 45,000 sq m Let's say half office, half retail. let's say half office half retail If we take a look at the operation on a value creation standpoint, this is again a tremendous success. if we take a look at the operation on a value creation standpoint this is again a tremendous success You can see on the slide, we have a value creation with a multiple of almost three, which is impressive. you can see on the slide we have a value creation with a multiple of almost three which is impressive The idea is to understand how do we achieve this kind of project? the idea is to understand how do we achieve this kind of project Clearly, it's a middle to long-term view. clearly it's a middle to long-term view You have to have a lot of convictions, and ambition, and discipline. you have to have a lot of convictions and ambition and discipline First of all, we pre-let and secured all the retail area by signing a 40-year firm term lease with one of the major luxury brands in the world, which is Cartier, to locate their new foundation, which was previously in the 14th district of Paris. 40 years with 20 mandatories is unique in France. We have co-created one of the most sophisticated, innovative, and very highly technical projects designed by one of the most impressive architects, Jean Nouvel. Our team managed all the administrative authorization, supported, which is important, by the City of Paris. Comes the hard part. First of all, we pre-let and secured all the retail area by signing a 40-year firm term lease with one of the major luxury brands in the world, which is Cartier, to locate their new foundation, which was previously in the 14th district of Paris. 40 years with 20 mandatories is unique in France. first of all we pre-let and secured all the retail area by signing a 40-year firm term lease with one of the major luxury brands in the world which is cartier to locate their new foundation which was previously in the 14th district of paris 40 years with 20 mandatories is unique in france We have co-created one of the most sophisticated, innovative, and very highly technical projects designed by one of the most impressive architects, Jean Nouvel. we have co-created one of the most sophisticated innovative and very highly technical projects designed by one of the most impressive architects jean nouvel Our team managed all the administrative authorization, supported, which is important, by the City of Paris. our team managed all the administrative authorization supported which is important by the city of paris Comes the hard part. comes the hard part We had to handle the fact that this project was one of a kind, very unique, very innovative, but we had to take into account all the technical requirements, and we signed at a very early stage, a contract with VINCI in order to verify if it was technically feasible, and also to define the right methodology to deploy this kind of project in a very dense environment. You are in front of the Louvre, the Conseil d'État, the Ministère de la Culture, and so on, which was really tricky. We had to handle the fact that this project was one of a kind, very unique, very innovative, but we had to take into account all the technical requirements, and we signed at a very early stage, a contract with VINCI in order to verify if it was technically feasible, and also to define the right methodology to deploy this kind of project in a very dense environment. we had to handle the fact that this project was one of a kind very unique very innovative but we had to take into account all the technical requirements and we signed at a very early stage a contract with vinci in order to verify if it was technically feasible and also to define the right methodology to deploy this kind of project in a very dense environment You are in front of the Louvre, the Conseil d'État, the Ministère de la Culture, and so on, which was really tricky. you are in front of the louvre the conseil d'état the ministère de la culture and so on which was really tricky We probably would have failed at many stages without the help of a unique team as well as unique advisors, clearly. We delivered this project to Cartier earlier than expected, in July 2023, in order to let them do their own works, and the foundation opened to the public in November 2025. We probably would have failed at many stages without the help of a unique team as well as unique advisors, clearly. we probably would have failed at many stages without the help of a unique team as well as unique advisors clearly We delivered this project to Cartier earlier than expected, in July 2023, in order to let them do their own works, and the foundation opened to the public in November 2025. we delivered this project to cartier earlier than expected in july 2023 in order to let them do their own works and the foundation opened to the public in november 2025 The project and the work on this amazing asset is not over. We are now in the new stage. Eric will be happy to talk about it during the break. To refurbish and reposition all the office to let this amazing building become the prime office building in Paris. We have already signed 7,000 square meters of offices at really high level of rent. There are still a lot of potential to capture in terms of rental growth in this building. We are already very happy to be the owner of this kind of amazing landmark building in Paris. We will definitely continue. That doesn't mean we doesn't think about rotation in some point regarding our portfolio. Juan will talk about it. The project and the work on this amazing asset is not over. the project and the work on this amazing asset is not over We are now in the new stage. we are now in the new stage Eric will be happy to talk about it during the break. eric will be happy to talk about it during the break To refurbish and reposition all the office to let this amazing building become the prime office building in Paris. to refurbish and reposition all the office to let this amazing building become the prime office building in paris We have already signed 7,000 square meters of offices at really high level of rent. we have already signed 7,000 square meters of offices at really high level of rent There are still a lot of potential to capture in terms of rental growth in this building. there are still a lot of potential to capture in terms of rental growth in this building We are already very happy to be the owner of this kind of amazing landmark building in Paris. we are already very happy to be the owner of this kind of amazing landmark building in paris We will definitely continue. we will definitely continue That doesn't mean we doesn't think about rotation in some point regarding our portfolio. that doesn't mean we doesn't think about rotation in some point regarding our portfolio Juan will talk about it. juan will talk about it

Speaker 4: Okay, before jumping on the smart asset allocation strategy, just have a look to the midterm EPS main driver through the existing projects. I think we are running out of time. Just a few comments about them. In Spain, we are transforming the former headquarters of Deutsche Telekom in the 22@ prime area for a hospital. Okay, before jumping on the smart asset allocation strategy, just have a look to the midterm EPS main driver through the existing projects. okay before jumping on the smart asset allocation strategy just have a look to the midterm eps main driver through the existing projects I think we are running out of time. i think we are running out of time Just a few comments about them. just a few comments about them In Spain, we are transforming the former headquarters of Deutsche Telekom in the 22@ prime area for a hospital. in spain we are transforming the former headquarters of deutsche telekom in the 22@ prime area for a hospital In left-hand side, you can see we have already signed 30 years contract with 15 years mandatory with one of the main players of the healthcare area. This is in the Bupa group. It's Sanitas. Now we have a very good news because we have been granted with the license. We are progressing with the project. We have signed rents at EUR 29 per square meter per month. That is almost 111% increase on the former rent, 20% above the prime office rents in the area. In left-hand side, you can see we have already signed 30 years contract with 15 years mandatory with one of the main players of the healthcare area. in left-hand side you can see we have already signed 30 years contract with 15 years mandatory with one of the main players of the healthcare area This is in the Bupa group. this is in the bupa group It's Sanitas. it's sanitas Now we have a very good news because we have been granted with the license. now we have a very good news because we have been granted with the license We are progressing with the project. we are progressing with the project We have signed rents at EUR 29 per square meter per month. we have signed rents at eur 29 per square meter per month That is almost 111% increase on the former rent, 20% above the prime office rents in the area. that is almost 111% increase on the former rent 20% above the prime office rents in the area In Spain to highlight, it's going to be a reality in 2028, fourth quarter, is the full transformation of the headquarters of IBM. Those headquarters developed in 1986. It was obviously an outdated. It was like a museum. We love it when we inspect it. It was the kind of offices of the 1880s. In Spain to highlight, it's going to be a reality in 2028, fourth quarter, is the full transformation of the headquarters of IBM. in spain to highlight it's going to be a reality in 2028 fourth quarter is the full transformation of the headquarters of ibm Those headquarters developed in 1986. those headquarters developed in 1986 It was obviously an outdated. it was obviously an outdated It was like a museum. it was like a museum We love it when we inspect it. we love it when we inspect it It was the kind of offices of the 1880s. it was the kind of offices of the 1880s Now it's going through a full reconversion to one of the, I think, vibrant and promising living concepts within the M30 of Madrid. We have gained buildability, around 7,000 sq m. We are going to have an increase of 70% of the existing rents. We have already met an agreement with one of the main players of operators of the living arena. Maybe a few words about France, Alexia. Now it's going through a full reconversion to one of the, I think, vibrant and promising living concepts within the M30 of Madrid. now it's going through a full reconversion to one of the i think vibrant and promising living concepts within the m30 of madrid We have gained buildability, around 7,000 sq m. we have gained buildability around 7,000 sq m We are going to have an increase of 70% of the existing rents. we are going to have an increase of 70% of the existing rents We have already met an agreement with one of the main players of operators of the living arena. we have already met an agreement with one of the main players of operators of the living arena Maybe a few words about France, Alexia. maybe a few words about france alexia

Speaker 1: Thank you. Regarding France, one other key point of our strategy is also to invest in main gateways in the cities we are invested in, Paris and Madrid, obviously. These two projects are located next to a main transportation hub. Scope is positioned next to Gare de Lyon. It's a major transformation of this previous Natixis headquarter. It will be best-in-class product, definitely, with high visibility through its new bioclimatic facade, as you can see, with obviously large and modern floor plates and a very defined and designed offer of services. It will be delivered by the end of the year. Thank you. thank you Regarding France, one other key point of our strategy is also to invest in main gateways in the cities we are invested in, Paris and Madrid, obviously. regarding france one other key point of our strategy is also to invest in main gateways in the cities we are invested in paris and madrid obviously These two projects are located next to a main transportation hub. these two projects are located next to a main transportation hub Scope is positioned next to Gare de Lyon. scope is positioned next to gare de lyon It's a major transformation of this previous Natixis headquarter. it's a major transformation of this previous natixis headquarter It will be best-in-class product, definitely, with high visibility through its new bioclimatic facade, as you can see, with obviously large and modern floor plates and a very defined and designed offer of services. it will be best-in-class product definitely with high visibility through its new bioclimatic facade as you can see with obviously large and modern floor plates and a very defined and designed offer of services It will be delivered by the end of the year. it will be delivered by the end of the year We are currently in the leasing process. We are targeting an unlevered IRR of 9% and levered IRR of 13%, and we are happy to announce that we have already secured the first contract prelet yesterday. Condorcet is the same kind of vision, but in a different area. It's next to Gare du Nord, which is an amazing connection to many European cities like London, obviously, Brussels or Amsterdam. This is also a one-hectare site, an amazing mixed-use urban campus development, which mix offices and residential. We will host student housing accommodation, as well as 22,000 sq m of brand-new offices that combines perfectly modernity as well as heritage. We are currently in the leasing process. we are currently in the leasing process We are targeting an unlevered IRR of 9% and levered IRR of 13%, and we are happy to announce that we have already secured the first contract prelet yesterday. we are targeting an unlevered irr of 9% and levered irr of 13% and we are happy to announce that we have already secured the first contract prelet yesterday Condorcet is the same kind of vision, but in a different area. condorcet is the same kind of vision but in a different area It's next to Gare du Nord, which is an amazing connection to many European cities like London, obviously, Brussels or Amsterdam. it's next to gare du nord which is an amazing connection to many european cities like london obviously brussels or amsterdam This is also a one-hectare site, an amazing mixed-use urban campus development, which mix offices and residential. this is also a one-hectare site an amazing mixed-use urban campus development which mix offices and residential We will host student housing accommodation, as well as 22,000 sq m of brand-new offices that combines perfectly modernity as well as heritage. we will host student housing accommodation as well as 22,000 sq m of brand-new offices that combines perfectly modernity as well as heritage Meaning that you will find all the design and architecture of the Parisian-style city, as well as very flexible and modern floor plates, which will probably allows us to attract a variety of potential targets from tech to AI, as well as media and fashion companies. The delivery is expected by 2027. We are also targeting 9% unlevered IRR and 13% after leverage. The process of leasing will start in the coming days, but we are very confident about it, as well as the ongoing works that are without any concern on our side. Meaning that you will find all the design and architecture of the Parisian-style city, as well as very flexible and modern floor plates, which will probably allows us to attract a variety of potential targets from tech to AI, as well as media and fashion companies. meaning that you will find all the design and architecture of the parisian-style city as well as very flexible and modern floor plates which will probably allows us to attract a variety of potential targets from tech to ai as well as media and fashion companies The delivery is expected by 2027. the delivery is expected by 2027 We are also targeting 9% unlevered IRR and 13% after leverage. we are also targeting 9% unlevered irr and 13% after leverage The process of leasing will start in the coming days, but we are very confident about it, as well as the ongoing works that are without any concern on our side. the process of leasing will start in the coming days but we are very confident about it as well as the ongoing works that are without any concern on our side

Speaker 4: Okay, let me just go very quickly. I'm seeing the script read numbers now. Within the third pillar of our prime business model, it's our capital recycling strategy. What we've just disposed over the year, EUR 3 billion of assets disposed, what kind of assets? It's easy for us. All these assets that do not comply with the attributes we would like to develop to squeeze that portfolio that we were saying at the beginning, those assets are no longer in our wishes. This is our first target. Second one, it's all those assets located in outskirts or peripheral locations. As a result, you may see here the active strategy of disposing all of these assets over time. Okay, let me just go very quickly. okay let me just go very quickly I'm seeing the script read numbers now. i'm seeing the script read numbers now Within the third pillar of our prime business model, it's our capital recycling strategy. within the third pillar of our prime business model, it's our capital recycling strategy What we've just disposed over the year, EUR 3 billion of assets disposed, what kind of assets? what we've just disposed over the year eur 3 billion of assets disposed what kind of assets It's easy for us. it's easy for us All these assets that do not comply with the attributes we would like to develop to squeeze that portfolio that we were saying at the beginning, those assets are no longer in our wishes. all these assets that do not comply with the attributes we would like to develop to squeeze that portfolio that we were saying at the beginning those assets are no longer in our wishes This is our first target. this is our first target Second one, it's all those assets located in outskirts or peripheral locations. second one it's all those assets located in outskirts or peripheral locations As a result, you may see here the active strategy of disposing all of these assets over time. as a result you may see here the active strategy of disposing all of these assets over time I will take some time to speak about the recent disposal plan and the new disposal plan, with regards to the acquisitions, always with this objective of creating value through prime factory, through value-added opportunities. You will never see Colonial coming into the market and buying a 3% initial yield property with no upside potential. That is not part of our business objectives. I will take some time to speak about the recent disposal plan and the new disposal plan, with regards to the acquisitions, always with this objective of creating value through prime factory, through value-added opportunities. i will take some time to speak about the recent disposal plan and the new disposal plan with regards to the acquisitions always with this objective of creating value through prime factory through value-added opportunities You will never see Colonial coming into the market and buying a 3% initial yield property with no upside potential. you will never see colonial coming into the market and buying a 3% initial yield property with no upside potential That is not part of our business objectives. that is not part of our business objectives Today, where we are and linking with what Pere was saying, that we are so disciplined, and we are inclined to the deleveraging process. With regards to the first disposal plan of EUR 500 million, here it's disclosed that we have already executed 70%. It's wrong. It's not 70%, it's close to 80%. The reason behind is because we are actively doing further disposals over the last week, and Carlos is not going to be changing the presentation on a daily basis. Today, where we are and linking with what Pere was saying, that we are so disciplined, and we are inclined to the deleveraging process. today where we are and linking with what pere was saying that we are so disciplined and we are inclined to the deleveraging process With regards to the first disposal plan of EUR 500 million, here it's disclosed that we have already executed 70%. with regards to the first disposal plan of eur 500 million here it's disclosed that we have already executed 70% It's wrong. it's wrong It's not 70%, it's close to 80%. it's not 70% it's close to 80% The reason behind is because we are actively doing further disposals over the last week, and Carlos is not going to be changing the presentation on a daily basis. the reason behind is because we are actively doing further disposals over the last week and carlos is not going to be changing the presentation on a daily basis As an example, unfortunately, I need to leave you because we are closing one transaction today. At 12 o'clock, we are selling one of our residential, granular residential assets in the outskirts of Madrid, worth EUR 20 million. Tuesday this week, we sign a commitment, further 19 dwellings in Zaragoza. We have already visibility for commitments of the residential portfolio accounting close to EUR 100 million before August. As an example, unfortunately, I need to leave you because we are closing one transaction today. as an example unfortunately i need to leave you because we are closing one transaction today At 12 o'clock, we are selling one of our residential, granular residential assets in the outskirts of Madrid, worth EUR 20 million. at 12 o'clock we are selling one of our residential granular residential assets in the outskirts of madrid worth eur 20 million Tuesday this week, we sign a commitment, further 19 dwellings in Zaragoza. tuesday this week we sign a commitment further 19 dwellings in zaragoza We have already visibility for commitments of the residential portfolio accounting close to EUR 100 million before August. we have already visibility for commitments of the residential portfolio accounting close to eur 100 million before august Probably for the first disposal plan of EUR 500 million, we will be reaching close to 92%, 93% before summer. Together with this, it's been announced a potential additional program of EUR 200 million. Obviously, this is due to the fact that we are constantly working on new disposals. We have together identified many different situations comprising seven to eight assets where we are having different bilateral conversations with different investors. Probably for the first disposal plan of EUR 500 million, we will be reaching close to 92%, 93% before summer. probably for the first disposal plan of eur 500 million we will be reaching close to 92% 93% before summer Together with this, it's been announced a potential additional program of EUR 200 million. together with this it's been announced a potential additional program of eur 200 million Obviously, this is due to the fact that we are constantly working on new disposals. obviously this is due to the fact that we are constantly working on new disposals We have together identified many different situations comprising seven to eight assets where we are having different bilateral conversations with different investors. we have together identified many different situations comprising seven to eight assets where we are having different bilateral conversations with different investors Let me just reinforce and hammer the message that we always have conversations on appraisal value, and normally with a premium on appraisal value. It is not a bullish talking. You know this because you've seen over time, over the last 15 years. We could have visibility as well before the year end for this additional EUR 200 million. Let me just reinforce and hammer the message that we always have conversations on appraisal value, and normally with a premium on appraisal value. It is not a bullish talking. let me just reinforce and hammer the message that we always have conversations on appraisal value and normally with a premium on appraisal value. it is not a bullish talking You know this because you've seen over time, over the last 15 years. you know this because you've seen over time over the last 15 years We could have visibility as well before the year end for this additional EUR 200 million. we could have visibility as well before the year end for this additional eur 200 million Just a few words on the acquisition sites from the science and innovation acquisition last year. First message is the existing portfolio is going well, is going as expected in the business plan. Many lettings have been accomplished with clients under the science and innovation arena, critical infrastructure, stick clients to the real estate properties. Just Pere already mentioned, the two projects we are today involved, one, it's the creation of a leading platform within the M30 Ring Road in Madrid. Just a few words on the acquisition sites from the science and innovation acquisition last year. just a few words on the acquisition sites from the science and innovation acquisition last year First message is the existing portfolio is going well, is going as expected in the business plan. first message is the existing portfolio is going well is going as expected in the business plan Many lettings have been accomplished with clients under the science and innovation arena, critical infrastructure, stick clients to the real estate properties. many lettings have been accomplished with clients under the science and innovation arena critical infrastructure stick clients to the real estate properties Just Pere already mentioned, the two projects we are today involved, one, it's the creation of a leading platform within the M30 Ring Road in Madrid. just pere already mentioned the two projects we are today involved one it's the creation of a leading platform within the m30 ring road in madrid Madrid, the megatrend is amazing for living. Just to give you an example, I think in the U.K., one bed each eight students. Spain, one bed each 17 students. Inner Madrid, within the M30 Ring Road, it could be even higher. Following the scarcity, following the megatrends, we have progress with a potential creation of a living platform without making any further investment. Madrid, the megatrend is amazing for living. madrid the megatrend is amazing for living Just to give you an example, I think in the U.K., one bed each eight students. just to give you an example i think in the u.k one bed each eight students Spain, one bed each 17 students. spain one bed each 17 students Inner Madrid, within the M30 Ring Road, it could be even higher. inner madrid within the m30 ring road it could be even higher Following the scarcity, following the megatrends, we have progress with a potential creation of a living platform without making any further investment. following the scarcity following the megatrends we have progress with a potential creation of a living platform without making any further investment Lastly, it was what Pere mentioned about different opportunities in gateway cities in Europe with a prime approach where we can find some upside potential, some rental growth in only these kind of assets that we are fully convinced we can extract value in the future. From us, this has been the description about the business model. I hope you have enjoyed, and let's go for a coffee. Thank you very much. Lastly, it was what Pere mentioned about different opportunities in gateway cities in Europe with a prime approach where we can find some upside potential, some rental growth in only these kind of assets that we are fully convinced we can extract value in the future. lastly it was what pere mentioned about different opportunities in gateway cities in europe with a prime approach where we can find some upside potential some rental growth in only these kind of assets that we are fully convinced we can extract value in the future From us, this has been the description about the business model. from us this has been the description about the business model I hope you have enjoyed, and let's go for a coffee. i hope you have enjoyed and let's go for a coffee Thank you very much. thank you very much [Break] [Break] [break]

Speaker 3: I don't know if everybody's here in the room. Still people? Yeah? Okay. I think we can start with the following section. Thank you again for coming. I would like to spend almost 20 minutes of my presentation on what we really think is the backbone of what you have seen and what you have heard this morning from Pere and from Alexia and from Juan. I don't know if everybody's here in the room. i don't know if everybody's here in the room Still people? still people Yeah? yeah Okay. okay I think we can start with the following section. i think we can start with the following section Thank you again for coming. thank you again for coming I would like to spend almost 20 minutes of my presentation on what we really think is the backbone of what you have seen and what you have heard this morning from Pere and from Alexia and from Juan. i would like to spend almost 20 minutes of my presentation on what we really think is the backbone of what you have seen and what you have heard this morning from pere and from alexia and from juan Basically, the financial foundation, what underpins the business strategy and you will see how we manage our financial side of the business, and why we believe the framework that we have built gives us this, I would say, secure and very high visible, and the right direction for the growth that we are going to show today. I will cover basically three things. One would be where we stand financially today. Basically, the financial foundation, what underpins the business strategy and you will see how we manage our financial side of the business, and why we believe the framework that we have built gives us this, I would say, secure and very high visible, and the right direction for the growth that we are going to show today. basically the financial foundation what underpins the business strategy and you will see how we manage our financial side of the business and why we believe the framework that we have built gives us this i would say secure and very high visible and the right direction for the growth that we are going to show today I will cover basically three things. i will cover basically three things One would be where we stand financially today. one would be where we stand financially today The second thing, it's how we work and how we envisage the capital allocation framework, how this all in, it's being translated into the returns as well, of course, and the growth for the total shareholder returns for all of you. Let me start first with a simple observation. Over the last decade, the EBITDA has been growing almost two times. The EPS has been growing almost three times. This is not a coincidence. This is a meaningful growth. The second thing, it's how we work and how we envisage the capital allocation framework, how this all in, it's being translated into the returns as well, of course, and the growth for the total shareholder returns for all of you. the second thing it's how we work and how we envisage the capital allocation framework how this all in it's being translated into the returns as well of course and the growth for the total shareholder returns for all of you Let me start first with a simple observation. let me start first with a simple observation Over the last decade, the EBITDA has been growing almost two times. over the last decade the ebitda has been growing almost two times The EPS has been growing almost three times. the eps has been growing almost three times This is not a coincidence. this is not a coincidence This is a meaningful growth. this is a meaningful growth As you can see here, this growth keeping the long-term value in the range of 36%-40%. Basically, in our track record always. I will come later to explain how. Basically, we are very focused on combining this binomial of growth and discipline. For us, it's a very important goal to keep in every single decision we take in our company. As you can see here, this growth keeping the long-term value in the range of 36%-40%. as you can see here this growth keeping the long-term value in the range of 36%-40% Basically, in our track record always. basically in our track record always I will come later to explain how. i will come later to explain how Basically, we are very focused on combining this binomial of growth and discipline. basically we are very focused on combining this binomial of growth and discipline For us, it's a very important goal to keep in every single decision we take in our company. for us it's a very important goal to keep in every single decision we take in our company Growth and discipline can be done jointly with a good strategy and a good balance. This combination of growth and discipline over the full cycle, it's what you've seen here, growing, keeping the metrics on the ratings, and even enhancing the ratings at the level that we would like to be, which is this according S&P BBB+ and according Moody's Baa1. This is the rating that we need to be focused, where we want to be, and the range that where we want to be inside when we run our business. Growth and discipline can be done jointly with a good strategy and a good balance. growth and discipline can be done jointly with a good strategy and a good balance This combination of growth and discipline over the full cycle, it's what you've seen here, growing, keeping the metrics on the ratings, and even enhancing the ratings at the level that we would like to be, which is this according S&P BBB+ and according Moody's Baa1. this combination of growth and discipline over the full cycle it's what you've seen here growing keeping the metrics on the ratings and even enhancing the ratings at the level that we would like to be which is this according s&p bbb+ and according moody's baa1 This is the rating that we need to be focused, where we want to be, and the range that where we want to be inside when we run our business. this is the rating that we need to be focused where we want to be and the range that where we want to be inside when we run our business This is deliberately being decided, being and keeping our metrics inside these levels, maintaining the growth strategy as you know very well. What is behind this? How we actually think about our balance? First, let me go to the liquidity and let me go to the maturity profile of our debts. I think you know very well how is the maturity of our debt, but the message that I want to share with you is that behind this is a very active as liability management. This is deliberately being decided, being and keeping our metrics inside these levels, maintaining the growth strategy as you know very well. this is deliberately being decided being and keeping our metrics inside these levels maintaining the growth strategy as you know very well What is behind this? what is behind this How we actually think about our balance? how we actually think about our balance First, let me go to the liquidity and let me go to the maturity profile of our debts. first let me go to the liquidity and let me go to the maturity profile of our debts I think you know very well how is the maturity of our debt, but the message that I want to share with you is that behind this is a very active as liability management. i think you know very well how is the maturity of our debt but the message that i want to share with you is that behind this is a very active as liability management You have seen what has been very actively in the balance sheet. You see and you know what is behind our liability management, managing every year, every month, what could be improved, our key metrics in financials, how we can extend at better conditions, how we can include additional banks. Some of you are here, thank you for the confidence on Colonial project. This is what is behind all these metrics, and this is what our teams, some of them here, are working every day. To enhance and to have the best liability, the best debt. You have seen what has been very actively in the balance sheet. you have seen what has been very actively in the balance sheet You see and you know what is behind our liability management, managing every year, every month, what could be improved, our key metrics in financials, how we can extend at better conditions, how we can include additional banks. you see and you know what is behind our liability management managing every year every month what could be improved our key metrics in financials how we can extend at better conditions how we can include additional banks Some of you are here, thank you for the confidence on Colonial project. some of you are here thank you for the confidence on colonial project This is what is behind all these metrics, and this is what our teams, some of them here, are working every day. this is what is behind all these metrics and this is what our teams some of them here are working every day To enhance and to have the best liability, the best debt. to enhance and to have the best liability the best debt Pere, our CEO, always tends to say that we have the prime assets, we would like to have as well the prime debt. This is how we protect our balance sheet. The liquidity risk always has been kept at EUR 2 billion, roughly. Today, this liquidity covers almost maturity up to 2029. It's true that today we have a very interesting cost of debt, 1.9%, maturities of four years, and improving and enhancing these maturities in this active asset management, and keeping the investment rating in the higher end. Pere, our CEO, always tends to say that we have the prime assets, we would like to have as well the prime debt. pere our ceo always tends to say that we have the prime assets we would like to have as well the prime debt This is how we protect our balance sheet. this is how we protect our balance sheet The liquidity risk always has been kept at EUR 2 billion, roughly. the liquidity risk always has been kept at eur 2 billion roughly Today, this liquidity covers almost maturity up to 2029. today this liquidity covers almost maturity up to 2029 It's true that today we have a very interesting cost of debt, 1.9%, maturities of four years, and improving and enhancing these maturities in this active asset management, and keeping the investment rating in the higher end. it's true that today we have a very interesting cost of debt 1.9% maturities of four years and improving and enhancing these maturities in this active asset management and keeping the investment rating in the higher end These are solid numbers, it's true. The question naturally probably you would may raise, it's how confident we are to maintain these solid numbers. Probably one of the key tests to answer this question about having the best debt is the bond market. The bond market is, we try to look at them as a useful external perspective and the test, and a nice test to see if there is a good test for us and for the appetite from the institutional investor of Colonial debt. These are solid numbers, it's true. these are solid numbers it's true The question naturally probably you would may raise, it's how confident we are to maintain these solid numbers. the question naturally probably you would may raise it's how confident we are to maintain these solid numbers Probably one of the key tests to answer this question about having the best debt is the bond market. probably one of the key tests to answer this question about having the best debt is the bond market The bond market is, we try to look at them as a useful external perspective and the test, and a nice test to see if there is a good test for us and for the appetite from the institutional investor of Colonial debt. the bond market is we try to look at them as a useful external perspective and the test and a nice test to see if there is a good test for us and for the appetite from the institutional investor of colonial debt You can see here the five years spread. We are now in the lowest range of spread for our bonds, well below our peers with the same rating. I invite you to compare this spread with other peers with the same rating that we have. Basically, because behind this, there is a lot of credibility in the strategy, a lot of visibility on the cash flow, a lot of quality on the cash flow, and this is behind this spread above or better in the markets, better than our peers. You can see here the five years spread. you can see here the five years spread We are now in the lowest range of spread for our bonds, well below our peers with the same rating. we are now in the lowest range of spread for our bonds well below our peers with the same rating I invite you to compare this spread with other peers with the same rating that we have. i invite you to compare this spread with other peers with the same rating that we have Basically, because behind this, there is a lot of credibility in the strategy, a lot of visibility on the cash flow, a lot of quality on the cash flow, and this is behind this spread above or better in the markets, better than our peers. basically because behind this there is a lot of credibility in the strategy a lot of visibility on the cash flow a lot of quality on the cash flow and this is behind this spread above or better in the markets better than our peers This is probably that it's a genuine conviction from institutional investors in the underlying credit quality. This is one of the probably data. It's about the solid investor appetite. It's what we experienced in the recent bond issuance. By the way, green bond issuance, you know that one of the key strategies in our run across our portfolio are to be in the high end of all the green strategies. We have been, or we were in the past, the first real estate company in Spain issuing green bonds, and all debt, green bonds, sorry, and term loans and revolving facilities, all of them are green debt. We experience a very solid investor appetite, reflecting this confidence in the recent issuance of bonds. This is probably that it's a genuine conviction from institutional investors in the underlying credit quality. this is probably that it's a genuine conviction from institutional investors in the underlying credit quality This is one of the probably data. this is one of the probably data It's about the solid investor appetite. it's about the solid investor appetite It's what we experienced in the recent bond issuance. it's what we experienced in the recent bond issuance By the way, green bond issuance, you know that one of the key strategies in our run across our portfolio are to be in the high end of all the green strategies. by the way green bond issuance you know that one of the key strategies in our run across our portfolio are to be in the high end of all the green strategies We have been, or we were in the past, the first real estate company in Spain issuing green bonds, and all debt, green bonds, sorry, and term loans and revolving facilities, all of them are green debt. we have been or we were in the past the first real estate company in spain issuing green bonds and all debt green bonds sorry and term loans and revolving facilities all of them are green debt We experience a very solid investor appetite, reflecting this confidence in the recent issuance of bonds. we experience a very solid investor appetite reflecting this confidence in the recent issuance of bonds Basically, we tapped the market last year of EUR 1.8 billion, and we received an appetite, or we received an oversubscription of almost 4.4x. This is a demonstration that our paper, our credit metrics are well-received from the institutional investors. As you may see here as well, our group Loan-to-value has been decreased since 40%–37%. As well, the net Loan-to-value improved 200 basis points, and the Net EBITDA improves as well. I will come later about this trend of deleveraging. Basically, we tapped the market last year of EUR 1.8 billion, and we received an appetite, or we received an oversubscription of almost 4.4x. basically we tapped the market last year of eur 1.8 billion and we received an appetite or we received an oversubscription of almost 4.4x This is a demonstration that our paper, our credit metrics are well-received from the institutional investors. this is a demonstration that our paper our credit metrics are well-received from the institutional investors As you may see here as well, our group Loan-to-value has been decreased since 40%– 37%. as you may see here as well our group loan-to-value has been decreased since 40%– 37% As well, the net Loan-to-value improved 200 basis points, and the Net EBITDA improves as well. as well the net loan-to-value improved 200 basis points and the net ebitda improves as well I will come later about this trend of deleveraging. i will come later about this trend of deleveraging Now probably let me go forward about what it's our financial approach. In this section, I have shared now what has been our key financial metrics as of today. These are not a coincidence. Where we are today, it's as a consequence, or thanks, to a very disciplined capital allocation and a very disciplined financial framework that we work every day. Now probably let me go forward about what it's our financial approach. now probably let me go forward about what it's our financial approach In this section, I have shared now what has been our key financial metrics as of today. in this section i have shared now what has been our key financial metrics as of today These are not a coincidence. these are not a coincidence Where we are today, it's as a consequence, or thanks, to a very disciplined capital allocation and a very disciplined financial framework that we work every day. where we are today it's as a consequence or thanks to a very disciplined capital allocation and a very disciplined financial framework that we work every day At the center of our financial approach, it's a framework that we have built. Let me explain a little bit this chart. I will cover the different parts of this chart. This is very, let's say, with an image, how we manage the company, how we approach any single investment, and how we manage the objective of our shareholder return, keeping always the financial discipline. It's a framework built around three interconnected priorities: capital recycling, financial discipline, and shareholders remuneration. They are not independent. They are interconnected among them. Each one enables the other one, and discipline, recycling of capital funds that you've seen before from my colleagues, Alexia and Juanma. At the center of our financial approach, it's a framework that we have built. at the center of our financial approach it's a framework that we have built Let me explain a little bit this chart. let me explain a little bit this chart I will cover the different parts of this chart. i will cover the different parts of this chart This is very, let's say, with an image, how we manage the company, how we approach any single investment, and how we manage the objective of our shareholder return, keeping always the financial discipline. this is very let's say with an image how we manage the company how we approach any single investment and how we manage the objective of our shareholder return keeping always the financial discipline It's a framework built around three interconnected priorities: capital recycling, financial discipline, and shareholders remuneration. it's a framework built around three interconnected priorities capital recycling financial discipline and shareholders remuneration They are not independent. they are not independent They are interconnected among them. they are interconnected among them Each one enables the other one, and discipline, recycling of capital funds that you've seen before from my colleagues, Alexia and Juanma. each one enables the other one and discipline recycling of capital funds that you've seen before from my colleagues alexia and juanma These disposals of funds investing at better returns. Financial discipline preserving the credit metrics, the rating credit metrics, and together we generate this ambition of shareholders' return with a very, we'd say, solid and predictable cash flow. Let me walk now through each one of the boxes. These disposals of funds investing at better returns. Financial discipline preserving the credit metrics, the rating credit metrics, and together we generate this ambition of shareholders' return with a very, we'd say, solid and predictable cash flow. these disposals of funds investing at better returns. financial discipline preserving the credit metrics the rating credit metrics and together we generate this ambition of shareholders' return with a very we'd say solid and predictable cash flow Let me walk now through each one of the boxes. let me walk now through each one of the boxes On the financial discipline. Here, some of you always talk and ask about what is exactly the metrics that we need to put as an objective on the financials. We always answer, sorry for that, we say always the same question, which is the reality. How we approach our financial discipline, this box, very important, to keep this binomial, keep this balance between growth and discipline. How we approach the financial discipline, it's the same way how the rating agencies approach our credit metrics, our credit rating. On the financial discipline. on the financial discipline Here, some of you always talk and ask about what is exactly the metrics that we need to put as an objective on the financials. here some of you always talk and ask about what is exactly the metrics that we need to put as an objective on the financials We always answer, sorry for that, we say always the same question, which is the reality. we always answer sorry for that we say always the same question which is the reality How we approach our financial discipline, this box, very important, to keep this binomial, keep this balance between growth and discipline. how we approach our financial discipline this box very important to keep this binomial keep this balance between growth and discipline How we approach the financial discipline, it's the same way how the rating agencies approach our credit metrics, our credit rating. how we approach the financial discipline it's the same way how the rating agencies approach our credit metrics our credit rating They evaluate, and this is very important you consider in your approach to Colonial, because it's different than others. They consider the business profile you've seen before in the initial part of the presentation. What does it mean, business profile? Business profile means high-quality assets, unique assets, well-located, good collateral, good contracts, good tenants, high occupancy rate, high releases spread, and pricing power. This is what it means, the business profile. The consequence of this business' strong profile gives us a lot of certainty on cash flows. This is different than others, and you should consider when you approach Colonial in terms of financing metrics. They evaluate, and this is very important you consider in your approach to Colonial, because it's different than others. they evaluate and this is very important you consider in your approach to colonial because it's different than others They consider the business profile you've seen before in the initial part of the presentation. they consider the business profile you've seen before in the initial part of the presentation What does it mean, business profile? what does it mean business profile Business profile means high-quality assets, unique assets, well-located, good collateral, good contracts, good tenants, high occupancy rate, high releases spread, and pricing power. business profile means high-quality assets unique assets well-located good collateral good contracts good tenants high occupancy rate high releases spread and pricing power This is what it means, the business profile. this is what it means the business profile The consequence of this business' strong profile gives us a lot of certainty on cash flows. the consequence of this business' strong profile gives us a lot of certainty on cash flows This is different than others, and you should consider when you approach Colonial in terms of financing metrics. this is different than others and you should consider when you approach colonial in terms of financing metrics The other, of course, the other vertical, it's the financial profile. As you see, and we share with you in every quarter, strong liquidity position, interesting hedge position, secure interest rate, high visibility on the interest rate for the future. I will come later on details on that. Rating, robust policy, financial policy, resilient capital structure. When you go through, as I mentioned before in my previous pages, when you went through the growth that we have devoted and we have delivered during the last decade, always has been with this discipline, financial discipline, in the range of this loan-to-value, in the range and below with some room with the metrics on the investment grade. The other, of course, the other vertical, it's the financial profile. the other of course the other vertical it's the financial profile As you see, and we share with you in every quarter, strong liquidity position, interesting hedge position, secure interest rate, high visibility on the interest rate for the future. as you see and we share with you in every quarter strong liquidity position interesting hedge position secure interest rate high visibility on the interest rate for the future I will come later on details on that. i will come later on details on that Rating, robust policy, financial policy, resilient capital structure. rating robust policy financial policy resilient capital structure When you go through, as I mentioned before in my previous pages, when you went through the growth that we have devoted and we have delivered during the last decade, always has been with this discipline, financial discipline, in the range of this loan-to-value, in the range and below with some room with the metrics on the investment grade. when you go through as i mentioned before in my previous pages when you went through the growth that we have devoted and we have delivered during the last decade always has been with this discipline financial discipline in the range of this loan-to-value in the range and below with some room with the metrics on the investment grade What does it mean that growth and discipline can work together? This is what it means, financial profile. Of course, operational. We have a track record of solid tenant base, and we have a track record of strong management and governance in all our operations. All has been, this is the set that the output of these three verticals is the rating. What does it mean that growth and discipline can work together? what does it mean that growth and discipline can work together This is what it means, financial profile. this is what it means financial profile Of course, operational. of course operational We have a track record of solid tenant base, and we have a track record of strong management and governance in all our operations. we have a track record of solid tenant base and we have a track record of strong management and governance in all our operations All has been, this is the set that the output of these three verticals is the rating. all has been this is the set that the output of these three verticals is the rating These are what the rating is considered. These are what we consider in any single approach, in any single investment analysis, when we include this analysis in our business plan, always we reshape with these three verticals. Are there, according our business profile risk, high quality, prime location, release spread, additional returns? We can operate as we have our capacities in place. It links the output. It's the rating by investment grade. These are what the rating is considered. these are what the rating is considered These are what we consider in any single approach, in any single investment analysis, when we include this analysis in our business plan, always we reshape with these three verticals. these are what we consider in any single approach in any single investment analysis when we include this analysis in our business plan always we reshape with these three verticals Are there, according our business profile risk, high quality, prime location, release spread, additional returns? are there according our business profile risk high quality prime location release spread additional returns We can operate as we have our capacities in place. we can operate as we have our capacities in place It links the output. it links the output It's the rating by investment grade. it's the rating by investment grade Why we think this strategy? We think that the financial strength is an asset by itself, but how we manage them in terms of metrics that some of you are asking for. This is probably the page that you would like to see. I would like to explain this page. You need to consider this page accordingly with the previous one. Because isolated, this page, it's one part of the equation. This is not only the equation that the credit metrics and the financial discipline looks like. It's not. Why we think this strategy? why we think this strategy We think that the financial strength is an asset by itself, but how we manage them in terms of metrics that some of you are asking for. we think that the financial strength is an asset by itself but how we manage them in terms of metrics that some of you are asking for This is probably the page that you would like to see. this is probably the page that you would like to see I would like to explain this page. i would like to explain this page You need to consider this page accordingly with the previous one. you need to consider this page accordingly with the previous one Because isolated, this page, it's one part of the equation. because isolated this page it's one part of the equation This is not only the equation that the credit metrics and the financial discipline looks like. this is not only the equation that the credit metrics and the financial discipline looks like It's not. it's not [But] some of you asked about what takes our target look to value, how it's translating. Here, internally, again, for us, the main goal is the investment grade. What does it mean, investment grade? Metrics, in that case, we have taken S&P. The S&P look to value between 35%-45%. Where we are today, we are below the limits. We have room to manage any optionality in investment, any volatility in the market. We are confident of keeping in this range. What it's translating in this range by S&P to what you would like to listen, to loan to value, to EPRA loan to value. To IFRS loan to value or to EPRA loan to value. [But] some of you asked about what takes our target look to value, how it's translating. [but] some of you asked about what takes our target look to value how it's translating Here, internally, again, for us, the main goal is the investment grade. here internally again for us the main goal is the investment grade What does it mean, investment grade? what does it mean investment grade Metrics, in that case, we have taken S&P. metrics in that case we have taken s&p The S&P look to value between 35%-45%. the s&p look to value between 35%-45% Where we are today, we are below the limits. where we are today we are below the limits We have room to manage any optionality in investment, any volatility in the market. we have room to manage any optionality in investment any volatility in the market We are confident of keeping in this range. we are confident of keeping in this range What it's translating in this range by S&P to what you would like to listen, to loan to value, to EPRA loan to value. what it's translating in this range by s&p to what you would like to listen to loan to value to epra loan to value To IFRS loan to value or to EPRA loan to value. to ifrs loan to value or to epra loan to value Basically, to keep this range 35%-45% S&P Loan-to-value, it is translated into group Loan-to-value maximum 42%. Today, we are at 37%. Our internal goal, being a little bit more conservative, is max 40%. EPRA Loan-to-value, the translation of S&P to EPRA Loan-to-value, it is maximum 50%. Basically, to keep this range 35%-45% S&P Loan-to-value, it is translated into group Loan-to-value maximum 42%. basically to keep this range 35%-45% s&p loan-to-value it is translated into group loan-to-value maximum 42% Today, we are at 37%. today we are at 37% Our internal goal, being a little bit more conservative, is max 40%. our internal goal being a little bit more conservative is max 40% EPRA Loan-to-value, the translation of S&P to EPRA Loan-to-value, it is maximum 50%. epra loan-to-value the translation of s&p to epra loan-to-value it is maximum 50% Today, we are at 45%, our internal rules are at 45%. These are one part of the equation. These are behind our discipline in combination of what you've seen previously. These are the boundaries which we are included inside the rating metrics. We feel comfortable in being inside these metrics. Today, we are at 45%, our internal rules are at 45%. today we are at 45% our internal rules are at 45% These are one part of the equation. these are one part of the equation These are behind our discipline in combination of what you've seen previously. these are behind our discipline in combination of what you've seen previously These are the boundaries which we are included inside the rating metrics. these are the boundaries which we are included inside the rating metrics We feel comfortable in being inside these metrics. we feel comfortable in being inside these metrics Our business plan, considering the existing market condition, shows the leverage on these metrics around 150 or 200 basis points on the Loan-to-value. This is a deleveraging trend. Being inside these boundaries, we keep what we want to be in the rating, the maximum or the high end of the investment grade. We can manage with buffer enough, with room enough, any market volatility and any investment opportunity. Our business plan, considering the existing market condition, shows the leverage on these metrics around 150 or 200 basis points on the Loan-to-value. our business plan considering the existing market condition shows the leverage on these metrics around 150 or 200 basis points on the loan-to-value This is a deleveraging trend. this is a deleveraging trend Being inside these boundaries, we keep what we want to be in the rating, the maximum or the high end of the investment grade. being inside these boundaries we keep what we want to be in the rating the maximum or the high end of the investment grade We can manage with buffer enough, with room enough, any market volatility and any investment opportunity. we can manage with buffer enough with room enough any market volatility and any investment opportunity On the Net EBITDA, which is the other key metric for us, a company with Colonial, with the quality of the cash flow, with this predictable cash flow, this is something with the rating agencies, they feel very comfortable. The standard stabilized Net EBITDA should be in the range of 10x-12x. This is the stabilized Net EBITDA for a company like Colonial. Where we are today, 15. Why? Because we have a very important part of Alpha X that you saw before, going in the right direction. On the Net EBITDA, which is the other key metric for us, a company with Colonial, with the quality of the cash flow, with this predictable cash flow, this is something with the rating agencies, they feel very comfortable. on the net ebitda which is the other key metric for us a company with colonial with the quality of the cash flow with this predictable cash flow this is something with the rating agencies they feel very comfortable The standard stabilized Net EBITDA should be in the range of 10 x- 12x . the standard stabilized net ebitda should be in the range of 10 x- 12x This is the stabilized Net EBITDA for a company like Colonial. this is the stabilized net ebitda for a company like colonial Where we are today, 15. where we are today 15 Why? why Because we have a very important part of Alpha X that you saw before, going in the right direction. because we have a very important part of alpha x that you saw before going in the right direction At the end of this Project Alpha, Project X, at the end, when these projects will be mature, the business plan reached these 11x, between 10x and 11x Net EBITDA. Why we are not today? Because we have almost more than 10% of our portfolio not income producing. If you exclude this effect, of course, our stabilized operational part, the first column or the first pillar of the growth, it's 10x, 11x. At the end of this Project Alpha, Project X, at the end, when these projects will be mature, the business plan reached these 11x , between 10x and 11x Net EBITDA. at the end of this project alpha project x at the end when these projects will be mature the business plan reached these 11x between 10x and 11x net ebitda Why we are not today? why we are not today Because we have almost more than 10% of our portfolio not income producing. because we have almost more than 10% of our portfolio not income producing If you exclude this effect, of course, our stabilized operational part, the first column or the first pillar of the growth, it's 10x, 11x . if you exclude this effect of course our stabilized operational part the first column or the first pillar of the growth it's 10x 11x This is how we envisage our global financial strategy without having any rating pressure. The answer about growth, because some of you, I would like to see more deleveraging, I would like to see more disposals, but this plan shows a deleveraging trend according to today's market condition. This plan show a balance between growth and discipline, so we can deliver growth and keeping discipline. This is the financial metrics. How we protect the cost structure? This is also another question that you raise sometimes. This is how we envisage our global financial strategy without having any rating pressure. this is how we envisage our global financial strategy without having any rating pressure The answer about growth, because some of you, I would like to see more deleveraging, I would like to see more disposals, but this plan shows a deleveraging trend according to today's market condition. the answer about growth because some of you i would like to see more deleveraging i would like to see more disposals but this plan shows a deleveraging trend according to today's market condition This plan show a balance between growth and discipline, so we can deliver growth and keeping discipline. this plan show a balance between growth and discipline so we can deliver growth and keeping discipline This is the financial metrics. this is the financial metrics How we protect the cost structure? how we protect the cost structure This is also another question that you raise sometimes. this is also another question that you raise sometimes First message that we would like to share with you, our debt for the following years will show this profile between fixed cost and hedge. Then will come what is the level of this cost of debt. Thanks to the bond issuance that we have done in place, thanks to the hedging that we have in place actively, this is not a strategy. This is one short strategy. This is a permanent strategy to protect our balance sheet. We have been consistently executed. This is the profile of our debt that will look like for the following years. First message that we would like to share with you, our debt for the following years will show this profile between fixed cost and hedge. first message that we would like to share with you our debt for the following years will show this profile between fixed cost and hedge Then will come what is the level of this cost of debt. then will come what is the level of this cost of debt Thanks to the bond issuance that we have done in place, thanks to the hedging that we have in place actively, this is not a strategy. thanks to the bond issuance that we have done in place thanks to the hedging that we have in place actively this is not a strategy This is one short strategy. this is one short strategy This is a permanent strategy to protect our balance sheet. this is a permanent strategy to protect our balance sheet We have been consistently executed. we have been consistently executed This is the profile of our debt that will look like for the following years. this is the profile of our debt that will look like for the following years Mainly up to 2028, mainly at 90% average, it's being covered fixed and today with a high visibility on the cost of debt and very limited, as you see, exposed to the market conditions. What is the reality in terms of cost of debt? It's what you see in the right-hand side of this slide. The cost of debt that we will have for the following years will be well above market levels. This is not a coincidence. This is behind our active hedge strategy, our active balance sheet strategy. We have created a lot of value for you during these years. We have still a lot of value to crystallize in the following years, thanks to this hedging. This is a real advantage of Colonial to others. Mainly up to 2028, mainly at 90% average, it's being covered fixed and today with a high visibility on the cost of debt and very limited, as you see, exposed to the market conditions. mainly up to 2028 mainly at 90% average it's being covered fixed and today with a high visibility on the cost of debt and very limited as you see exposed to the market conditions What is the reality in terms of cost of debt? what is the reality in terms of cost of debt It's what you see in the right-hand side of this slide. it's what you see in the right-hand side of this slide The cost of debt that we will have for the following years will be well above market levels. the cost of debt that we will have for the following years will be well above market levels This is not a coincidence. this is not a coincidence This is behind our active hedge strategy, our active balance sheet strategy. this is behind our active hedge strategy our active balance sheet strategy We have created a lot of value for you during these years. we have created a lot of value for you during these years We have still a lot of value to crystallize in the following years, thanks to this hedging. we have still a lot of value to crystallize in the following years thanks to this hedging This is a real advantage of Colonial to others. this is a real advantage of colonial to others There are few players, few peers that they have this position, that secures our growth coming from the operations, secures a path to growth, a very clear path to growth that I will come later. To give you some additional, probably numbers, I don't want to cover in a lot of details. I'm happy to disclose and to answer any question if you have. Some of you as well, you were asking about, "How can I have some visibility? How this mark to market, or how this value of hedging, it's being recycled into the P&L?" There are few players, few peers that they have this position, that secures our growth coming from the operations, secures a path to growth, a very clear path to growth that I will come later. there are few players few peers that they have this position that secures our growth coming from the operations secures a path to growth a very clear path to growth that i will come later To give you some additional, probably numbers, I don't want to cover in a lot of details. to give you some additional probably numbers i don't want to cover in a lot of details I'm happy to disclose and to answer any question if you have. i'm happy to disclose and to answer any question if you have Some of you as well, you were asking about, "How can I have some visibility? some of you as well you were asking about "how can i have some visibility How this mark to market, or how this value of hedging, it's being recycled into the P&L?" how this mark to market or how this value of hedging it's being recycled into the p&l?" Basically, three main ideas you need to take from this page. We have created a lot of value from the hedge. Since when the rates were negative, we took a very smart position of covering future cost of debt for the future maturities in our bonds. We took almost EUR 3 billion pre-hedge instruments to cover all our debt that will need to be, at that moment, would needed to be refinanced in the future. Basically, three main ideas you need to take from this page. basically three main ideas you need to take from this page We have created a lot of value from the hedge. we have created a lot of value from the hedge Since when the rates were negative, we took a very smart position of covering future cost of debt for the future maturities in our bonds. since when the rates were negative we took a very smart position of covering future cost of debt for the future maturities in our bonds We took almost EUR 3 billion pre-hedge instruments to cover all our debt that will need to be, at that moment, would needed to be refinanced in the future. we took almost eur 3 billion pre-hedge instruments to cover all our debt that will need to be at that moment would needed to be refinanced in the future For the following years, 2010 to six has been already done. 73% of our debt that has been expired this year, 73% has been hedged at 2.4 strike. You can see here what will be in the following issuance, debt maturities, EUR 627, EUR 28, EUR 1,000. What will be the level of hedge and the strike behind this level of hedge. Two final comments. The hedge that we have today, which are booked in our accounts and, of course, audited, this is EUR 233 million. This EUR 233 million, it's the hedge, the value that will be allocated in any future maturities of bonds that we are going to be refinancing in the future. For the following years, 2010 to six has been already done. 73% of our debt that has been expired this year, 73% has been hedged at 2.4 strike. for the following years 2010 to six has been already done 73% of our debt that has been expired this year 73% has been hedged at 2.4 strike You can see here what will be in the following issuance, debt maturities, EUR 627, EUR 28, EUR 1,000. you can see here what will be in the following issuance debt maturities, eur 627, eur 28, eur 1,000 What will be the level of hedge and the strike behind this level of hedge. Two final comments. what will be the level of hedge and the strike behind this level of hedge. two final comments The hedge that we have today, which are booked in our accounts and, of course, audited, this is EUR 233 million. the hedge that we have today which are booked in our accounts and of course audited this is eur 233 million This EUR 233 million, it's the hedge, the value that will be allocated in any future maturities of bonds that we are going to be refinancing in the future. this eur 233 million it's the hedge the value that will be allocated in any future maturities of bonds that we are going to be refinancing in the future EUR 233 million will be allocated EUR 12 million in the issuance 2026, 2032, and 2027 and beyond. How will this EUR 233 million be allocated or recycled into P&L is the bottom line. The idea you need to take from this page is we have a very predictable cost of debt. We have mark-to-market, a lot of value still to crystallize, EUR 233 million still to crystallize in the following years up to, at the very end, that all the debt, not 2028, not 2029, not 2030. At the very late, all the debt in place today will be mature. EUR 233 million will be allocated EUR 12 million in the issuance 2026, 2032, and 2027 and beyond. eur 233 million will be allocated eur 12 million in the issuance 2026 2032 and 2027 and beyond How will this EUR 233 million be allocated or recycled into P&L is the bottom line. how will this eur 233 million be allocated or recycled into p&l is the bottom line The idea you need to take from this page is we have a very predictable cost of debt. the idea you need to take from this page is we have a very predictable cost of debt We have mark-to-market, a lot of value still to crystallize, EUR 233 million still to crystallize in the following years up to, at the very end, that all the debt, not 2028, not 2029, not 2030. we have mark-to-market a lot of value still to crystallize, eur 233 million still to crystallize in the following years up to at the very end that all the debt not 2028 not 2029 not 2030 At the very late, all the debt in place today will be mature. at the very late all the debt in place today will be mature This is the idea of this page, and it will help you probably to modeling what is going on. This is the consequence of this cost of debt I showed you before and why we are so, I would say, comfortable about the guidance for this part, about the guidance that I am going to share with you. This is not a meaningful pre-hedge. What we would like as well, an interesting takeaway, one important takeaway, because for us it's important, this is not a coincidence. This is not a single strategy. This is a permanent strategy to protect, to secure the cost of debt, to assure that the growth comes from the business. Okay? This is the idea of this page, and it will help you probably to modeling what is going on. this is the idea of this page and it will help you probably to modeling what is going on This is the consequence of this cost of debt I showed you before and why we are so, I would say, comfortable about the guidance for this part, about the guidance that I am going to share with you. this is the consequence of this cost of debt i showed you before and why we are so i would say comfortable about the guidance for this part about the guidance that i am going to share with you This is not a meaningful pre-hedge. this is not a meaningful pre-hedge What we would like as well, an interesting takeaway, one important takeaway, because for us it's important, this is not a coincidence. what we would like as well an interesting takeaway one important takeaway because for us it's important this is not a coincidence This is not a single strategy. this is not a single strategy This is a permanent strategy to protect, to secure the cost of debt, to assure that the growth comes from the business. this is a permanent strategy to protect to secure the cost of debt to assure that the growth comes from the business Okay? okay This is not a coincidence. Behind this, is a real policy. Given that financial discipline, I'm going now to the other box, to the other part of this helix retrofitting by themselves. This is the capital recycling, and this is the part of our investment side. We have as well a clear framework. You've seen a clear framework of the financial discipline. You will see now, and some examples has been already done. You will see a lot of, as well, a very clear framework on the financial discipline. This is not a coincidence. this is not a coincidence Behind this, is a real policy. behind this is a real policy Given that financial discipline, I'm going now to the other box, to the other part of this helix retrofitting by themselves. given that financial discipline i'm going now to the other box to the other part of this helix retrofitting by themselves This is the capital recycling, and this is the part of our investment side. this is the capital recycling and this is the part of our investment side We have as well a clear framework. we have as well a clear framework You've seen a clear framework of the financial discipline. you've seen a clear framework of the financial discipline You will see now, and some examples has been already done. you will see now and some examples has been already done You will see a lot of, as well, a very clear framework on the financial discipline. you will see a lot of as well a very clear framework on the financial discipline We approach any single investment with a very clear hurdle rate, subject if there is core plus investment or value-added investment between 7% and 8.5% if a core investment, or 9%-10% if the value-added investment. These are not the hurdle rates that are linked to the macro drivers. These are hurdle rates that are linked, and I think as well Pere mentioned before, that are linked to the micro-driven analysis of any single asset. What does it mean? Location, it means tenant. We approach any single investment with a very clear hurdle rate, subject if there is core plus investment or value-added investment between 7% and 8.5% if a core investment, or 9%-10% if the value-added investment. we approach any single investment with a very clear hurdle rate subject if there is core plus investment or value-added investment between 7% and 8.5% if a core investment or 9%-10% if the value-added investment These are not the hurdle rates that are linked to the macro drivers. these are not the hurdle rates that are linked to the macro drivers These are hurdle rates that are linked, and I think as well Pere mentioned before, that are linked to the micro-driven analysis of any single asset. these are hurdle rates that are linked and i think as well pere mentioned before that are linked to the micro-driven analysis of any single asset What does it mean? what does it mean Location, it means tenant. location it means tenant It means if the asset is under management, we can create value enhancing the operational part of the management or some light CapEx to enhance the value of the investment. It's about location and city centers and profile of the scheme. It's about potential releases spread. It's how we can recycle this capital to ask for a very interesting capital returns. It means if the asset is under management, we can create value enhancing the operational part of the management or some light CapEx to enhance the value of the investment. it means if the asset is under management we can create value enhancing the operational part of the management or some light capex to enhance the value of the investment It's about location and city centers and profile of the scheme. it's about location and city centers and profile of the scheme It's about potential releases spread. it's about potential releases spread It's how we can recycle this capital to ask for a very interesting capital returns. it's how we can recycle this capital to ask for a very interesting capital returns Why these levels? Because with these levels, we are beating the cost of capital that the market are requesting. With these hurdle rates, we are creating value for all of you. The combination of these hurdle rates being very disciplined on the investment, keeping the framework on the financials I explained before, we secure the growth value for the shareholder remuneration and the value creation because all these hurdle rates are well above the cost of capital that today's market is requesting for Colonial. Why these levels? why these levels Because with these levels, we are beating the cost of capital that the market are requesting. because with these levels we are beating the cost of capital that the market are requesting With these hurdle rates, we are creating value for all of you. with these hurdle rates we are creating value for all of you The combination of these hurdle rates being very disciplined on the investment, keeping the framework on the financials I explained before, we secure the growth value for the shareholder remuneration and the value creation because all these hurdle rates are well above the cost of capital that today's market is requesting for Colonial. the combination of these hurdle rates being very disciplined on the investment keeping the framework on the financials i explained before we secure the growth value for the shareholder remuneration and the value creation because all these hurdle rates are well above the cost of capital that today's market is requesting for colonial Very clear, we filter every single opportunity. If we don't reach these hurdle rates, we are not going to do it. You should be, I would say, very confident in what we've done because the track record, I think, we believe, that shows this discipline always as well in the investment. Very clear, we filter every single opportunity. very clear we filter every single opportunity If we don't reach these hurdle rates, we are not going to do it. if we don't reach these hurdle rates we are not going to do it You should be, I would say, very confident in what we've done because the track record, I think, we believe, that shows this discipline always as well in the investment. you should be i would say very confident in what we've done because the track record i think we believe that shows this discipline always as well in the investment This is how we can maintain the return profile across the cycle with this room to surface at any market volatilities and as well to take advantage of any opportunity. Let me bring together what does it mean, what I explained before. Capital recycling, we said very clearly, these are the hurdle rates beating the cost of capital the markets are requesting, creating value through any investment approach, and disposing at a price or even at a premium. We have been always, in certain quarters, delivering premiums to disposal. This is how we can maintain the return profile across the cycle with this room to surface at any market volatilities and as well to take advantage of any opportunity. this is how we can maintain the return profile across the cycle with this room to surface at any market volatilities and as well to take advantage of any opportunity Let me bring together what does it mean, what I explained before. let me bring together what does it mean what i explained before Capital recycling, we said very clearly, these are the hurdle rates beating the cost of capital the markets are requesting, creating value through any investment approach, and disposing at a price or even at a premium. capital recycling we said very clearly these are the hurdle rates beating the cost of capital the markets are requesting creating value through any investment approach and disposing at a price or even at a premium We have been always, in certain quarters, delivering premiums to disposal. we have been always in certain quarters delivering premiums to disposal This is how we recycle capital. On the financial discipline, always this goal of credit rating metrics. What does it mean as a consequence, this Loan-to-value, S&P rates, or boundaries that I shared before with you. With this trend of deleveraging, thanks to this active management on the capital recycling and as well on the operational side with this operational debt, EBITDA, reaching this 10x. This is how we recycle capital. this is how we recycle capital On the financial discipline, always this goal of credit rating metrics. What does it mean as a consequence, this Loan-to-value, S&P rates, or boundaries that I shared before with you. on the financial discipline always this goal of credit rating metrics. what does it mean as a consequence this loan-to-value s&p rates or boundaries that i shared before with you With this trend of deleveraging, thanks to this active management on the capital recycling and as well on the operational side with this operational debt, EBITDA, reaching this 10x. with this trend of deleveraging thanks to this active management on the capital recycling and as well on the operational side with this operational debt ebitda reaching this 10x All these three pillars, it's for shareholder return. All these pillars, and keeping this balance, provides and delivers this solid FFO generation for all of you. As well, of course, beating the cost of capital, additional value growth for the future. For us, very important, and this is one of the main important things when we manage an investment committee and we manage our business. These three pillars are each one measurable, very important for us. All these three pillars, it's for shareholder return. all these three pillars it's for shareholder return All these pillars, and keeping this balance, provides and delivers this solid FFO generation for all of you. all these pillars and keeping this balance provides and delivers this solid ffo generation for all of you As well, of course, beating the cost of capital, additional value growth for the future. as well of course beating the cost of capital additional value growth for the future For us, very important, and this is one of the main important things when we manage an investment committee and we manage our business. for us very important and this is one of the main important things when we manage an investment committee and we manage our business These three pillars are each one measurable, very important for us. these three pillars are each one measurable very important for us You can measure these pillars and very clear. Very clear, and that provides accountability, which the reason why we are here. All the output from this strategy is on the guidance. The result of this strategy at the end is the guidance. The guidance in short term. We provide as well the guidance in this event about midterm. You can measure these pillars and very clear. you can measure these pillars and very clear Very clear, and that provides accountability, which the reason why we are here. very clear and that provides accountability which the reason why we are here All the output from this strategy is on the guidance. all the output from this strategy is on the guidance The result of this strategy at the end is the guidance. the result of this strategy at the end is the guidance The guidance in short term. the guidance in short term We provide as well the guidance in this event about midterm. we provide as well the guidance in this event about midterm The guidance, we confirm the guidance for 2026, 2034, 2035. As you know, we are going to propose to the AGM EUR 0.32 per share on the dividend. On the midterm, our guidance for the midterm, and Carlos then will provide the different building blocks, how we reach these numbers. We are in the range of 39%-41%, which is average 20% growth, which is remarkable. All these three drivers or the three drivers that we went through this morning: core portfolio growth, Alpha X deliveries, and capital recycling, all of them with a high visibility, with an active management and active execution as of today. We feel comfortable of providing you these numbers. The guidance, we confirm the guidance for 2026, 2034, 2035. the guidance we confirm the guidance for 2026 2034 2035 As you know, we are going to propose to the AGM EUR 0.32 per share on the dividend. as you know we are going to propose to the agm eur 0.32 per share on the dividend On the midterm, our guidance for the midterm, and Carlos then will provide the different building blocks, how we reach these numbers. on the midterm our guidance for the midterm and carlos then will provide the different building blocks how we reach these numbers We are in the range of 39%-41%, which is average 20% growth, which is remarkable. we are in the range of 39%-41% which is average 20% growth which is remarkable All these three drivers or the three drivers that we went through this morning: core portfolio growth, Alpha X deliveries, and capital recycling, all of them with a high visibility, with an active management and active execution as of today. all these three drivers or the three drivers that we went through this morning core portfolio growth alpha x deliveries and capital recycling all of them with a high visibility with an active management and active execution as of today We feel comfortable of providing you these numbers. we feel comfortable of providing you these numbers I would like as well to emphasize that this guidance is grounded with the same financial discipline I explained in my presentation. Conservative assumptions, very secure numbers, and with a deleveraging trend, as I mentioned before. Finally, the DPS, which is the other part of the equation, it's a mirror of the EPS growth. You can see here the trend of the DPS growing significantly, as well in line with the EPS growth and how we envisage in, Alexia showed before, in the framework of the three pillars interconnected themselves. I would like as well to emphasize that this guidance is grounded with the same financial discipline I explained in my presentation. i would like as well to emphasize that this guidance is grounded with the same financial discipline i explained in my presentation Conservative assumptions, very secure numbers, and with a deleveraging trend, as I mentioned before. conservative assumptions very secure numbers and with a deleveraging trend as i mentioned before Finally, the DPS, which is the other part of the equation, it's a mirror of the EPS growth. finally the dps which is the other part of the equation it's a mirror of the eps growth You can see here the trend of the DPS growing significantly, as well in line with the EPS growth and how we envisage in, Alexia showed before, in the framework of the three pillars interconnected themselves. you can see here the trend of the dps growing significantly as well in line with the eps growth and how we envisage in, alexia showed before in the framework of the three pillars interconnected themselves The shareholder remuneration, you've seen that we have proposed, or we have executed already a share buyback. We are going to propose, in the AGM, cancellation of 14.5 million shares. When we approach our remuneration policy, in the first part, we have an EPS growth and DPS growth that provide this dividend growth policy. The shareholder remuneration, you've seen that we have proposed, or we have executed already a share buyback. the shareholder remuneration you've seen that we have proposed or we have executed already a share buyback We are going to propose, in the AGM, cancellation of 14.5 million shares. we are going to propose in the agm cancellation of 14.5 million shares When we approach our remuneration policy, in the first part, we have an EPS growth and DPS growth that provide this dividend growth policy. when we approach our remuneration policy in the first part we have an eps growth and dps growth that provide this dividend growth policy Of course, in the short term, you will see the AGM approve, of course. If you, as an investor, will approve the shares cancellation. With this approach of financial framework, we have the scope of discretionary share buyback in the future. If we don't find good enough returns in the investment approach that I mentioned before, this is why it makes sense, this discipline. We have the opportunity to do share buybacks. Of course, in the short term, you will see the AGM approve, of course. of course in the short term you will see the agm approve of course If you, as an investor, will approve the shares cancellation. if you as an investor will approve the shares cancellation With this approach of financial framework, we have the scope of discretionary share buyback in the future. with this approach of financial framework we have the scope of discretionary share buyback in the future If we don't find good enough returns in the investment approach that I mentioned before, this is why it makes sense, this discipline. if we don't find good enough returns in the investment approach that i mentioned before this is why it makes sense this discipline We have the opportunity to do share buybacks. we have the opportunity to do share buybacks If we have investment opportunities and we reach and we execute investment opportunities we had in the past at 90% IRR, unlevered IRR, 10% IRR, of course, we are creating more value investing at 10% IRR, rather than doing share buybacks. Why? Because the share buybacks implicit IRR are below the hurdle rates that we are targeting in our capital recycling. If we have investment opportunities and we reach and we execute investment opportunities we had in the past at 90% IRR, unlevered IRR, 10% IRR, of course, we are creating more value investing at 10% IRR, rather than doing share buybacks. if we have investment opportunities and we reach and we execute investment opportunities we had in the past at 90% irr unlevered irr 10% irr of course we are creating more value investing at 10% irr rather than doing share buybacks Why? why Because the share buybacks implicit IRR are below the hurdle rates that we are targeting in our capital recycling. because the share buybacks implicit irr are below the hurdle rates that we are targeting in our capital recycling All it makes sense, and again, if we don't find, or we don't see better returns enough to beat these hurdle rates or to fulfill these hurdle rates, of course, we have a scope for these discretionary share buybacks additional. To close my presentation, I will give you probably some key message that I would like you take from my presentation. First message, it's about comfort on the balance sheet. I think you need to end this presentation about that we take care about the balance sheet. All it makes sense, and again, if we don't find, or we don't see better returns enough to beat these hurdle rates or to fulfill these hurdle rates, of course, we have a scope for these discretionary share buybacks additional. all it makes sense and again if we don't find or we don't see better returns enough to beat these hurdle rates or to fulfill these hurdle rates of course we have a scope for these discretionary share buybacks additional To close my presentation, I will give you probably some key message that I would like you take from my presentation. to close my presentation i will give you probably some key message that i would like you take from my presentation First message, it's about comfort on the balance sheet. first message it's about comfort on the balance sheet I think you need to end this presentation about that we take care about the balance sheet. i think you need to end this presentation about that we take care about the balance sheet We take care of any metrics of the balance sheet, quality and quantity case. The balance sheet investment grade does not mean only financial metrics, it means more things. Any single decisions, we analyze the three pillars that we envisage this comfort on our balance sheet. The guardrails, we take care of them. I think when you looked in my first page, when you look our track record, you look growth and discipline. We take care of any metrics of the balance sheet, quality and quantity case. we take care of any metrics of the balance sheet quality and quantity case The balance sheet investment grade does not mean only financial metrics, it means more things. the balance sheet investment grade does not mean only financial metrics it means more things Any single decisions, we analyze the three pillars that we envisage this comfort on our balance sheet. any single decisions we analyze the three pillars that we envisage this comfort on our balance sheet The guardrails, we take care of them. the guardrails we take care of them I think when you looked in my first page, when you look our track record, you look growth and discipline. i think when you looked in my first page when you look our track record you look growth and discipline This is why we manage and how we manage the company, growth and discipline. Second, conviction to growth. EPS guidance for this year, EPS guidance for 2028, with a clear high visibility on this growth in our business. Third, confidence on our framework. The capital allocation approach is discipline, measured, and transparent, and consistently being applied in the levels of the framework as I've shared before. We, as management, always we believe that we have been delivering year-by-year, through this profile of framework, the growth numbers are there, and the discipline rating is there. Thank you. Now I hand the board to Carlos. Thank you. This is why we manage and how we manage the company, growth and discipline. this is why we manage and how we manage the company growth and discipline Second, conviction to growth. EPS guidance for this year, EPS guidance for 2028, with a clear high visibility on this growth in our business. second conviction to growth. eps guidance for this year eps guidance for 2028 with a clear high visibility on this growth in our business Third, confidence on our framework. third confidence on our framework The capital allocation approach is discipline, measured, and transparent, and consistently being applied in the levels of the framework as I've shared before. the capital allocation approach is discipline measured and transparent and consistently being applied in the levels of the framework as i've shared before We, as management, always we believe that we have been delivering year- by- year, through this profile of framework, the growth numbers are there, and the discipline rating is there. we as management always we believe that we have been delivering year- by- year through this profile of framework the growth numbers are there and the discipline rating is there Thank you. thank you Now I hand the board to Carlos. now i hand the board to carlos Thank you. thank you

Speaker 2: Okay. As you have seen this morning, we are in a segment that is a prime asset class that has superior growth across European gateway cities. We have the capabilities with the platform. Juanma and Alexia explained it. Not only that we have the capability, we have proven it. We have a track record. We have delivered the returns. We have delivered the cash flow growth. All of this is embedded in a strong, solid capital allocation framework. Okay. okay As you have seen this morning, we are in a segment that is a prime asset class that has superior growth across European gateway cities. as you have seen this morning we are in a segment that is a prime asset class that has superior growth across european gateway cities We have the capabilities with the platform. we have the capabilities with the platform Juanma and Alexia explained it. juanma and alexia explained it Not only that we have the capability, we have proven it. not only that we have the capability we have proven it We have a track record. we have a track record We have delivered the returns. we have delivered the returns We have delivered the cash flow growth. we have delivered the cash flow growth All of this is embedded in a strong, solid capital allocation framework. all of this is embedded in a strong solid capital allocation framework Everything we buy follows a discipline. Everything we sell is being done in the framework of value creation, on portfolio improvement. Everything that we do takes into account to have a well-grounded, strong capital structure in order to optimize the WACC, the cost of capital of our shareholders. With this in mind, we build our figures. Everything we buy follows a discipline. everything we buy follows a discipline Everything we sell is being done in the framework of value creation, on portfolio improvement. everything we sell is being done in the framework of value creation on portfolio improvement Everything that we do takes into account to have a well-grounded, strong capital structure in order to optimize the WACC, the cost of capital of our shareholders. everything that we do takes into account to have a well-grounded strong capital structure in order to optimize the wacc the cost of capital of our shareholders With this in mind, we build our figures. with this in mind we build our figures Today, we're going to show you what we think, where we're going to land in three years from now based on our business model that has proven to be very successful. Our business model has three pillars, as it has been already explained. Number 1 is our super prime footprint that really has above-market rental growth. We are setting the standards in rents. Here you see some examples. Our assets set the standards. We set the reference rents, the highest rents in the market. Today, we're going to show you what we think, where we're going to land in three years from now based on our business model that has proven to be very successful. today we're going to show you what we think where we're going to land in three years from now based on our business model that has proven to be very successful Our business model has three pillars, as it has been already explained. our business model has three pillars as it has been already explained Number 1 is our super prime footprint that really has above-market rental growth. number 1 is our super prime footprint that really has above-market rental growth We are setting the standards in rents. we are setting the standards in rents Here you see some examples. here you see some examples Our assets set the standards. our assets set the standards We set the reference rents, the highest rents in the market. we set the reference rents the highest rents in the market In addition, and this is quite unique, I would say almost no company in Europe has really this capability, with a strong development track record. People in the real estate sector, listed sector, there are not so many people that really have this track record to transform assets. What does this mean specifically looking into the next three years? We have seven projects. In addition, and this is quite unique, I would say almost no company in Europe has really this capability, with a strong development track record. in addition and this is quite unique i would say almost no company in europe has really this capability with a strong development track record People in the real estate sector, listed sector, there are not so many people that really have this track record to transform assets. people in the real estate sector listed sector there are not so many people that really have this track record to transform assets What does this mean specifically looking into the next three years? what does this mean specifically looking into the next three years We have seven projects. we have seven projects Three have just been delivered right now. No, Montse. Three have just been delivered right now. Madnum, Diagonal, and Haussmann, and they are progressing quite successfully. We have interesting phasing in across the next two and a half to three years of four very attractive projects. All of them with large floor plates and with interesting urban mixed characteristics. Three have just been delivered right now. three have just been delivered right now No, Montse. no montse Three have just been delivered right now. three have just been delivered right now Madnum, Diagonal, and Haussmann, and they are progressing quite successfully. madnum diagonal and haussmann and they are progressing quite successfully We have interesting phasing in across the next two and a half to three years of four very attractive projects. we have interesting phasing in across the next two and a half to three years of four very attractive projects All of them with large floor plates and with interesting urban mixed characteristics. all of them with large floor plates and with interesting urban mixed characteristics We have a third layer that we've also proven to do very well, that is buying and selling, improving the average return of our portfolio, and remaining with a strong balance sheet. We announced a disposal program in November. It's just a few months ago. As of today, it's accelerating both in timing and in pricing. We are getting higher prices than we expected, and this has encouraged us to enhance further the disposal activity and to add on top EUR 200 million. We have a third layer that we've also proven to do very well, that is buying and selling, improving the average return of our portfolio, and remaining with a strong balance sheet. we have a third layer that we've also proven to do very well that is buying and selling improving the average return of our portfolio and remaining with a strong balance sheet We announced a disposal program in November. we announced a disposal program in november It's just a few months ago. it's just a few months ago As of today, it's accelerating both in timing and in pricing. as of today it's accelerating both in timing and in pricing We are getting higher prices than we expected, and this has encouraged us to enhance further the disposal activity and to add on top EUR 200 million. we are getting higher prices than we expected and this has encouraged us to enhance further the disposal activity and to add on top eur 200 million We're going to also deploy capital. Our idea and what we have baked into the numbers that we show right now is that we use roughly EUR 0.2 billion into new things. One is the buyback program that has already been completed, and then some investment opportunities that we are quite close to execute. First of all, in terms of modeling, how should you factor this in? We're going to also deploy capital. we're going to also deploy capital Our idea and what we have baked into the numbers that we show right now is that we use roughly EUR 0.2 billion into new things. our idea and what we have baked into the numbers that we show right now is that we use roughly eur 0.2 billion into new things One is the buyback program that has already been completed, and then some investment opportunities that we are quite close to execute. one is the buyback program that has already been completed and then some investment opportunities that we are quite close to execute First of all, in terms of modeling, how should you factor this in? first of all in terms of modeling how should you factor this in The first layer, it's an ongoing layer throughout the three years. The prime operations. Maybe a little bit of distinctive elements is in Barcelona, we have especially a driver of occupancy ramp-up. Barcelona is accelerating the market activity. It's gaining a lot of positive traction. This is really an interesting engine of additional cash flow growth. Madrid, we have a portfolio that is at very high occupancy levels. We have there a lot of rent reversion from top assets. The first layer, it's an ongoing layer throughout the three years. the first layer it's an ongoing layer throughout the three years The prime operations. the prime operations Maybe a little bit of distinctive elements is in Barcelona, we have especially a driver of occupancy ramp-up. maybe a little bit of distinctive elements is in barcelona we have especially a driver of occupancy ramp-up Barcelona is accelerating the market activity. barcelona is accelerating the market activity It's gaining a lot of positive traction. it's gaining a lot of positive traction This is really an interesting engine of additional cash flow growth. this is really an interesting engine of additional cash flow growth Madrid, we have a portfolio that is at very high occupancy levels. madrid we have a portfolio that is at very high occupancy levels We have there a lot of rent reversion from top assets. we have there a lot of rent reversion from top assets Also here and there some opportunities of letting up. Paris is similar to Madrid, but it's really a very strong market. Our assets have there an extremely strong pricing power. Then we have something in addition to Barcelona and Madrid, as a consequence of the longer contract maturity structure of this city, we have a significant reversionary potential in passing rents as of today. It's quite an important number. Also here and there some opportunities of letting up. also here and there some opportunities of letting up Paris is similar to Madrid, but it's really a very strong market. paris is similar to madrid but it's really a very strong market Our assets have there an extremely strong pricing power. our assets have there an extremely strong pricing power Then we have something in addition to Barcelona and Madrid, as a consequence of the longer contract maturity structure of this city, we have a significant reversionary potential in passing rents as of today. then we have something in addition to barcelona and madrid as a consequence of the longer contract maturity structure of this city we have a significant reversionary potential in passing rents as of today It's quite an important number. it's quite an important number On the projects, as I said, three of them are delivered. They have almost not contributed a lot of rents in 2025 because they were developed across 2025, and they will now kick in across 2026 with interesting numbers of rents. Then progressively, the urban business campus at Gare de Lyon Scope will kick in towards the end of the year. Then towards the end of 2027, Condorcet and Sancho de Ávila. On the projects, as I said, three of them are delivered. on the projects as i said three of them are delivered They have almost not contributed a lot of rents in 2025 because they were developed across 2025, and they will now kick in across 2026 with interesting numbers of rents. they have almost not contributed a lot of rents in 2025 because they were developed across 2025 and they will now kick in across 2026 with interesting numbers of rents Then progressively, the urban business campus at Gare de Lyon Scope will kick in towards the end of the year. then progressively the urban business campus at gare de lyon scope will kick in towards the end of the year Then towards the end of 2027, Condorcet and Sancho de Ávila. then towards the end of 2027 condorcet and sancho de ávila Sancho Ávila today is already fully let. There's no commercial risk. We have the rents already in-house. It's just an issue of timing. Mid to end 2028, the student housing premise, Santa Hortensia. On the disposal program, it's ongoing. We are starting now to identify new opportunities. We've seen a lot of things that can be value attractive in a disposal program, and the buyback program, as all of you know, is completed, and on the prime acquisitions, we are currently working on it. Sancho Ávila today is already fully let. sancho ávila today is already fully let There's no commercial risk. there's no commercial risk We have the rents already in-house. we have the rents already in-house It's just an issue of timing. it's just an issue of timing Mid to end 2028, the student housing premise, Santa Hortensia. mid to end 2028 the student housing premise santa hortensia On the disposal program, it's ongoing. on the disposal program it's ongoing We are starting now to identify new opportunities. we are starting now to identify new opportunities We've seen a lot of things that can be value attractive in a disposal program, and the buyback program, as all of you know, is completed, and on the prime acquisitions, we are currently working on it. we've seen a lot of things that can be value attractive in a disposal program and the buyback program as all of you know is completed and on the prime acquisitions we are currently working on it If we go a little bit into the details. The first layer, our best estimate as of today is that it will add EUR 0.05-0.06 per share. Implicitly, this is a CAGR growth of 4%-5% in net rents. As I said, the drivers are a little bit different in every city. Barcelona is a strong occupancy ramp up driven. Madrid is a combination. Paris has also really spread. There are some assets that stand out. Louvre Saint-Honoré has a very interesting growth portfolio. Also Recoletos and Velázquez, as they are very strong assets with strong pricing power, have an interesting profile. There's some ramp-up in Visionary and Santa Engracia. If we go a little bit into the details. if we go a little bit into the details The first layer, our best estimate as of today is that it will add EUR 0.05-0.06 per share. the first layer our best estimate as of today is that it will add eur 0.05-0.06 per share Implicitly, this is a CAGR growth of 4%-5% in net rents. implicitly this is a cagr growth of 4%-5% in net rents As I said, the drivers are a little bit different in every city. as i said the drivers are a little bit different in every city Barcelona is a strong occupancy ramp up driven. barcelona is a strong occupancy ramp up driven Madrid is a combination. madrid is a combination Paris has also really spread. paris has also really spread There are some assets that stand out. there are some assets that stand out Louvre Saint-Honoré has a very interesting growth portfolio. louvre saint-honoré has a very interesting growth portfolio Also Recoletos and Velázquez, as they are very strong assets with strong pricing power, have an interesting profile. also recoletos and velázquez as they are very strong assets with strong pricing power have an interesting profile There's some ramp-up in Visionary and Santa Engracia. there's some ramp-up in visionary and santa engracia There are a variety of different assets where we can capture additional cash flow. We have the project pipeline. You have, on the one-hand side, the delivered assets, and we have the four project Alpha X assets that will kick in. Our best estimate is that as of 2028, we will have EUR 80 million of annualized rents. As of today, we are at EUR 8 million. You know that in the presentations, we always flag these seven assets with a full capacity of EUR 100 million. There are a variety of different assets where we can capture additional cash flow. there are a variety of different assets where we can capture additional cash flow We have the project pipeline. we have the project pipeline You have, on the one-hand side, the delivered assets, and we have the four project Alpha X assets that will kick in. you have on the one-hand side the delivered assets and we have the four project alpha x assets that will kick in Our best estimate is that as of 2028, we will have EUR 80 million of annualized rents. our best estimate is that as of 2028 we will have eur 80 million of annualized rents As of today, we are at EUR 8 million. as of today we are at eur 8 million You know that in the presentations, we always flag these seven assets with a full capacity of EUR 100 million. you know that in the presentations we always flag these seven assets with a full capacity of eur 100 million Condorcet and Santa Hortensia and Sancho de Ávila are kicking in more at the back end of this timeline, we get at the full capacity at 2030. EUR 100 million are being achieved in 2030, but in 2028, we expect to be at EUR 80 million.The remaining CapEx achieved here, EUR 148 million in 2026, between EUR 100 million and EUR 120 million in 2027. These are the most updated figures, including all of the uncertainties that have been also not currently in the short term situation. We have EUR 20 million that were already invested in Q1. Condorcet and Santa Hortensia and Sancho de Ávila are kicking in more at the back end of this timeline, we get at the full capacity at 2030. condorcet and santa hortensia and sancho de ávila are kicking in more at the back end of this timeline we get at the full capacity at 2030 EUR 100 million are being achieved in 2030, but in 2028, we expect to be at EUR 80 million. eur 100 million are being achieved in 2030 but in 2028 we expect to be at eur 80 million The remaining CapEx achieved here, EUR 148 million in 2026, between EUR 100 million and EUR 120 million in 2027. the remaining capex achieved here, eur 148 million in 2026 between eur 100 million and eur 120 million in 2027 These are the most updated figures, including all of the uncertainties that have been also not currently in the short term situation. these are the most updated figures including all of the uncertainties that have been also not currently in the short term situation We have EUR 20 million that were already invested in Q1. we have eur 20 million that were already invested in q1 In terms of pending CapEx as of today, between EUR 248 million and EUR 268 million. All of this, and here you see, as we always said, it's a quite relevant growth driver, EUR 0.08-EUR 0.09 per share at full capacity. That is more 2030, EUR 0.11 per share. [Then] we also create value by capital allocation by rotation. In terms of pending CapEx as of today, between EUR 248 million and EUR 268 million. in terms of pending capex as of today between eur 248 million and eur 268 million All of this, and here you see, as we always said, it's a quite relevant growth driver, EUR 0.08-EUR 0.09 per share at full capacity. all of this and here you see as we always said it's a quite relevant growth driver eur 0.08-eur 0.09 per share at full capacity That is more 2030, EUR 0.11 per share. that is more 2030 eur 0.11 per share [Then] we also create value by capital allocation by rotation. [then] we also create value by capital allocation by rotation We are selling off assets and we are redeploying the capital. As of today, we expect to have a marginal impact of value creation in terms of EPS, recurring EPS, and recurring cash flow of EUR 0.02-EUR 0.03. What is included here is the impact of the share buyback program, the investments that we are looking at that has an unguid IRR in excess of 8%, and also the contribution of the activity that we are doing in terms of third-party capital management. Cash flow from asset management that we are collecting. All of this together, we estimate as of today that it could be between EUR 0.02 and EUR 0.03 per share. We are selling off assets and we are redeploying the capital. we are selling off assets and we are redeploying the capital As of today, we expect to have a marginal impact of value creation in terms of EPS, recurring EPS, and recurring cash flow of EUR 0.02-EUR 0.03. as of today we expect to have a marginal impact of value creation in terms of eps recurring eps and recurring cash flow of eur 0.02-eur 0.03 What is included here is the impact of the share buyback program, the investments that we are looking at that has an unguid IRR in excess of 8%, and also the contribution of the activity that we are doing in terms of third-party capital management. what is included here is the impact of the share buyback program the investments that we are looking at that has an unguid irr in excess of 8% and also the contribution of the activity that we are doing in terms of third-party capital management Cash flow from asset management that we are collecting. cash flow from asset management that we are collecting All of this together, we estimate as of today that it could be between EUR 0.02 and EUR 0.03 per share. all of this together we estimate as of today that it could be between eur 0.02 and eur 0.03 per share When we look at all of it together, at the starting point on 2025, we were at EUR 0.33 a share. We expect with our business model that relies on three value drivers to add another EUR 0.15-0.18. Five to six from our core activity, from the strong cash flow of our assets. When we look at all of it together, at the starting point on 2025, we were at EUR 0.33 a share. when we look at all of it together at the starting point on 2025 we were at eur 0.33 a share We expect with our business model that relies on three value drivers to add another EUR 0.15-0.18. we expect with our business model that relies on three value drivers to add another eur 0.15-0.18 Five to six from our core activity, from the strong cash flow of our assets. five to six from our core activity from the strong cash flow of our assets As I said, a CAGR between 4%-5%, as you see, 200-300 basis points above indexation. A very significant driver, this is why we have done this many years, because we have the capacity to do it successful, is urban transformation. It's projects, EUR 0.08-0.09 per share. Capital recycling. We are in the business of constantly improving the average return of our portfolio, EUR 0.02-0.03 per share. Together, EUR 0.15-0.18. That in an environment that everybody knows, where we are still in a situation of increasing interest rates, more than offsets the impact from interest rates. As I said, a CAGR between 4%-5%, as you see, 200-300 basis points above indexation. as i said a cagr between 4%-5% as you see 200-300 basis points above indexation A very significant driver, this is why we have done this many years, because we have the capacity to do it successful, is urban transformation. a very significant driver this is why we have done this many years because we have the capacity to do it successful is urban transformation It's projects, EUR 0.08-0.09 per share. it's projects eur 0.08-0.09 per share Capital recycling. capital recycling We are in the business of constantly improving the average return of our portfolio, EUR 0.02-0.03 per share. we are in the business of constantly improving the average return of our portfolio eur 0.02-0.03 per share Together, EUR 0.15-0.18. together eur 0.15-0.18 That in an environment that everybody knows, where we are still in a situation of increasing interest rates, more than offsets the impact from interest rates. that in an environment that everybody knows where we are still in a situation of increasing interest rates more than offsets the impact from interest rates A very healthy and solid cash flow growth, embedded in a disciplined and strong capital structure. From point to point, this is between 16% and 22%, and 5%-7% CAGR. This is by far, as of today, one of the highest or maybe the highest growth profile in the European listed sector at the moment. A very healthy and solid cash flow growth, embedded in a disciplined and strong capital structure. a very healthy and solid cash flow growth embedded in a disciplined and strong capital structure From point to point, this is between 16% and 22%, and 5%- 7% CAGR. from point to point this is between 16% and 22% and 5%- 7% cagr This is by far, as of today, one of the highest or maybe the highest growth profile in the European listed sector at the moment. this is by far as of today one of the highest or maybe the highest growth profile in the european listed sector at the moment This is at the end, the proposition. As you can see, we are confident on it. It has been built with a lot of detail and with a solid and disciplined capital allocation framework. When you look at the last 10-15 years, these are the growth rates that we have always delivered. We are quite confident on it, and that's why we decided also to flag it today and to explain where it comes from in the different building blocks. With this, I'll pass to the final wrap up of the session. This is at the end, the proposition. this is at the end the proposition As you can see, we are confident on it. as you can see we are confident on it It has been built with a lot of detail and with a solid and disciplined capital allocation framework. it has been built with a lot of detail and with a solid and disciplined capital allocation framework When you look at the last 10- 15 years, these are the growth rates that we have always delivered. when you look at the last 10- 15 years these are the growth rates that we have always delivered We are quite confident on it, and that's why we decided also to flag it today and to explain where it comes from in the different building blocks. we are quite confident on it and that's why we decided also to flag it today and to explain where it comes from in the different building blocks With this, I'll pass to the final wrap up of the session. with this i'll pass to the final wrap up of the session

Speaker 5: Thank you, Carlos. I think that we are not only late, but ahead of time. actually, this was not planned to be so on time, but it's fantastic. this last section, it's a little bit of a wrap-up of everything that has been said. A little bit of maybe additional deep dive on certain things that maybe need an additional layer of comments that have to be provided. The final takeaways that we expect from this meeting today. The ideas. Thank you, Carlos. thank you carlos I think that we are not only late, but ahead of time. actually, this was not planned to be so on time, but it's fantastic. this last section, it's a little bit of a wrap-up of everything that has been said. i think that we are not only late but ahead of time actually this was not planned to be so on time but it's fantastic this last section it's a little bit of a wrap-up of everything that has been said A little bit of maybe additional deep dive on certain things that maybe need an additional layer of comments that have to be provided. a little bit of maybe additional deep dive on certain things that maybe need an additional layer of comments that have to be provided The final takeaways that we expect from this meeting today. the final takeaways that we expect from this meeting today The ideas. the ideas Coming back to the very beginning of this session this morning, there's something going on in our market that is good, that offers growth, and that offers an opportunity. It's not only about Colonial; it's about what's happening in urban cities, what's happening in the office market. There is a clear trend towards polarization. There is a chronic supply of the right product for this polarization. Coming back to the very beginning of this session this morning, there's something going on in our market that is good, that offers growth, and that offers an opportunity. coming back to the very beginning of this session this morning there's something going on in our market that is good that offers growth and that offers an opportunity It's not only about Colonial; it's about what's happening in urban cities, what's happening in the office market. it's not only about colonial it's about what's happening in urban cities what's happening in the office market There is a clear trend towards polarization. there is a clear trend towards polarization There is a chronic supply of the right product for this polarization. there is a chronic supply of the right product for this polarization This is unbalanced versus the take-up that is surging in Europe in the search of these trophy assets. This creates a number of dynamics that create, let's call it a beta, a kind of external growth factor that are driving our sector, and that explains why the performance is being a good one so far. Moreover, why do we expect this performance to remain even better in the future? This is unbalanced versus the take-up that is surging in Europe in the search of these trophy assets. this is unbalanced versus the take-up that is surging in europe in the search of these trophy assets This creates a number of dynamics that create, let's call it a beta, a kind of external growth factor that are driving our sector, and that explains why the performance is being a good one so far. this creates a number of dynamics that create let's call it a beta a kind of external growth factor that are driving our sector and that explains why the performance is being a good one so far Moreover, why do we expect this performance to remain even better in the future? moreover why do we expect this performance to remain even better in the future The second part of the story is, well, this may happen in the market, but we happen to be very well positioned. We've been strategically committed to this positioning for a long time. That has already generated a number of returns, but today that is transforming Colonial into the prime dominant player. The dominant player in prime assets. We have this positioning with an unparalleled track record, having been able to deliver this in an international footprint and with also the additional layer of capability to generate returns through capital recycling and development of new projects. The second part of the story is, well, this may happen in the market, but we happen to be very well positioned. the second part of the story is well this may happen in the market but we happen to be very well positioned We've been strategically committed to this positioning for a long time. we've been strategically committed to this positioning for a long time That has already generated a number of returns, but today that is transforming Colonial into the prime dominant player. that has already generated a number of returns but today that is transforming colonial into the prime dominant player The dominant player in prime assets. the dominant player in prime assets We have this positioning with an unparalleled track record, having been able to deliver this in an international footprint and with also the additional layer of capability to generate returns through capital recycling and development of new projects. we have this positioning with an unparalleled track record having been able to deliver this in an international footprint and with also the additional layer of capability to generate returns through capital recycling and development of new projects I like this slide. It's just now. I think that these numbers is recently, but if you could take them for the next recent years. It's about like-for-like growth versus exposure to prime. This is a plot that I asked for the most recent data available, but this could apply for recent years, and we believe that this will apply for the next years. We want to be in the range of the highest GRI like-for-like growth that will explain the superior returns of Colonial going forward. This, and we insist, is something that it's not about wishful thinking from now on. I like this slide. i like this slide It's just now. it's just now I think that these numbers is recently, but if you could take them for the next recent years. i think that these numbers is recently but if you could take them for the next recent years It's about like-for-like growth versus exposure to prime. it's about like-for-like growth versus exposure to prime This is a plot that I asked for the most recent data available, but this could apply for recent years, and we believe that this will apply for the next years. this is a plot that i asked for the most recent data available but this could apply for recent years and we believe that this will apply for the next years We want to be in the range of the highest GRI like-for-like growth that will explain the superior returns of Colonial going forward. we want to be in the range of the highest gri like-for-like growth that will explain the superior returns of colonial going forward This, and we insist, is something that it's not about wishful thinking from now on. this and we insist is something that it's not about wishful thinking from now on This is a vision of returns, the leverage, and everything else in the last 10 years. [In the end,] the history of Colonial in the last 10 years is about a history of sound growth with good discipline in terms of leverage. It's a good equilibrium between growth and leverage that has been delivered consistently and that has led us to where we are today. This is a vision of returns, the leverage, and everything else in the last 10 years. [In the end,] the history of Colonial in the last 10 years is about a history of sound growth with good discipline in terms of leverage. this is a vision of returns the leverage and everything else in the last 10 years. [in the end,] the history of colonial in the last 10 years is about a history of sound growth with good discipline in terms of leverage It's a good equilibrium between growth and leverage that has been delivered consistently and that has led us to where we are today. it's a good equilibrium between growth and leverage that has been delivered consistently and that has led us to where we are today These are the foundations of where we are in order to project ourselves into the future. How do we project ourselves into the future? Well, this slide is a slide that we should never do. Too many things explained in one slide, I will try to walk you through this because in the end, it's a summary of everything that has been said today. If we project Colonial in the next future, first of all, a framework. These are the foundations of where we are in order to project ourselves into the future. these are the foundations of where we are in order to project ourselves into the future How do we project ourselves into the future? how do we project ourselves into the future Well, this slide is a slide that we should never do. well this slide is a slide that we should never do Too many things explained in one slide, I will try to walk you through this because in the end, it's a summary of everything that has been said today. too many things explained in one slide i will try to walk you through this because in the end it's a summary of everything that has been said today If we project Colonial in the next future, first of all, a framework. if we project colonial in the next future first of all a framework Here there is a triangle of wanting to invest in the best places with the higher returns possible with discipline. As I said before, if we missed it, we missed it. Now we've lost a couple of opportunities in Paris, but it's important that we remain disciplined in our hurdle rates that we want for our investments. This is an angle, but this is dependent on the prime financial structure that we want to achieve, and this is within a model that in the end is to generate the EPS and DPS, and in the end, shareholder remuneration that we want for our shareholders in the future. Here there is a triangle of wanting to invest in the best places with the higher returns possible with discipline. here there is a triangle of wanting to invest in the best places with the higher returns possible with discipline As I said before, if we missed it, we missed it. as i said before if we missed it we missed it Now we've lost a couple of opportunities in Paris, but it's important that we remain disciplined in our hurdle rates that we want for our investments. now we've lost a couple of opportunities in paris but it's important that we remain disciplined in our hurdle rates that we want for our investments This is an angle, but this is dependent on the prime financial structure that we want to achieve, and this is within a model that in the end is to generate the EPS and DPS, and in the end, shareholder remuneration that we want for our shareholders in the future. this is an angle but this is dependent on the prime financial structure that we want to achieve and this is within a model that in the end is to generate the eps and dps and in the end shareholder remuneration that we want for our shareholders in the future The returns we want to give for our shareholders in the future are based on prime CBD operations, on Alpha X, on capital recycling. Just to summarize where this is coming from. I think we just saw from Carlos' presentation very clear numbers attached to this. I think that the strength on prime CBD operations, it's clear. I won't insist on this. We had a debate yesterday. We had pages and pages of evidence of superior returns in the last few years. The returns we want to give for our shareholders in the future are based on prime CBD operations, on Alpha X, on capital recycling. the returns we want to give for our shareholders in the future are based on prime cbd operations on alpha x on capital recycling Just to summarize where this is coming from. just to summarize where this is coming from I think we just saw from Carlos' presentation very clear numbers attached to this. i think we just saw from carlos' presentation very clear numbers attached to this I think that the strength on prime CBD operations, it's clear. i think that the strength on prime cbd operations it's clear I won't insist on this. i won't insist on this We had a debate yesterday. we had a debate yesterday We had pages and pages of evidence of superior returns in the last few years. we had pages and pages of evidence of superior returns in the last few years In the end, we sent them to the appendix of the presentation because we thought we would be boring you. We just included a couple ones, but there's a number of evidences. prime factory Alpha X remarks. We have those four projects. There were five, but you're sitting today in the number 1 of these five. Already done, delivered. Here is the product. Here are the returns, the value created. They are the four remaining ones. In the end, we sent them to the appendix of the presentation because we thought we would be boring you. in the end we sent them to the appendix of the presentation because we thought we would be boring you We just included a couple ones, but there's a number of evidences. prime factory Alpha X remarks. we just included a couple ones but there's a number of evidences prime factory alpha x remarks We have those four projects. we have those four projects There were five, but you're sitting today in the number 1 of these five. there were five but you're sitting today in the number 1 of these five Already done, delivered. already done delivered Here is the product. here is the product Here are the returns, the value created. here are the returns the value created They are the four remaining ones. they are the four remaining ones Here, to emphasize this, let's say flexibility in terms of our commitment to prime factory, to creating a prime product within a wider scope of looking at urban transformation opportunities. You see that out of these four opportunities, two are not going to be office buildings. One is an hospital project in Barcelona. It's interesting. It was the first office building that was built in the 22@ neighborhood in Barcelona. The T-Systems headquarters in Barcelona. Here, to emphasize this, let's say flexibility in terms of our commitment to prime factory, to creating a prime product within a wider scope of looking at urban transformation opportunities. here to emphasize this let's say flexibility in terms of our commitment to prime factory to creating a prime product within a wider scope of looking at urban transformation opportunities You see that out of these four opportunities, two are not going to be office buildings. you see that out of these four opportunities two are not going to be office buildings One is an hospital project in Barcelona. one is an hospital project in barcelona It's interesting. it's interesting It was the first office building that was built in the 22@ neighborhood in Barcelona. it was the first office building that was built in the 22@ neighborhood in barcelona The T-Systems headquarters in Barcelona. the t-systems headquarters in barcelona This area of Barcelona, it's super clear that it's unbalanced between office supply and other users. It needs desperately a hospital. It's not us who are saying this. The town hall is chasing Albert all of the time because they are so much interested in this project. Of course, the operator that is renting this for us is a super believer, and the returns are much better. This area of Barcelona, it's super clear that it's unbalanced between office supply and other users. this area of barcelona it's super clear that it's unbalanced between office supply and other users It needs desperately a hospital. it needs desperately a hospital It's not us who are saying this. it's not us who are saying this The town hall is chasing Albert all of the time because they are so much interested in this project. the town hall is chasing albert all of the time because they are so much interested in this project Of course, the operator that is renting this for us is a super believer, and the returns are much better. of course the operator that is renting this for us is a super believer and the returns are much better That's why we are delivering this project. The second one, this one will be delivered next year, and next year we'll be saying, as we are now saying from Madnum, "This is done." The next one, maybe it's a little bit more tricky, is the student accommodation one, Santa Hortensia. The story of Santa Hortensia was we expected that with the new evolution of IBM, the way the company has been restructured, this would have the opportunity to go in different directions. That's why we are delivering this project. that's why we are delivering this project The second one, this one will be delivered next year, and next year we'll be saying, as we are now saying from Madnum, "This is done." The next one, maybe it's a little bit more tricky, is the student accommodation one, Santa Hortensia. the second one this one will be delivered next year and next year we'll be saying as we are now saying from madnum "this is done." the next one maybe it's a little bit more tricky is the student accommodation one santa hortensia The story of Santa Hortensia was we expected that with the new evolution of IBM, the way the company has been restructured, this would have the opportunity to go in different directions. the story of santa hortensia was we expected that with the new evolution of ibm the way the company has been restructured this would have the opportunity to go in different directions When we bought it many years ago, we already had all of these kind of stress test scenarios. We went through the initial analysis. It was crystal clear that there was a better use for other users, non-office related, that had a higher value. Anything related to residential is offering today an opportunity, if possible, because it's not so easy, in different European cities. When we bought it many years ago, we already had all of these kind of stress test scenarios. when we bought it many years ago we already had all of these kind of stress test scenarios We went through the initial analysis. we went through the initial analysis It was crystal clear that there was a better use for other users, non-office related, that had a higher value. it was crystal clear that there was a better use for other users non-office related that had a higher value Anything related to residential is offering today an opportunity, if possible, because it's not so easy, in different European cities. anything related to residential is offering today an opportunity if possible because it's not so easy in different european cities In Madrid, it's a clear example. By doing transformation, you achieve additional returns. We had a look at different alternatives. Let's call it traditional residential did not work out because of too much time attached to the project. Short-term resi, which is living, flex living, hospitality, student accommodation, anything worked out pretty well. We decided to go into the student accommodation direction. Why? Because so much pressure from all operators, from everybody in the market looking at very much interest in this. In Madrid, it's a clear example. in madrid it's a clear example By doing transformation, you achieve additional returns. by doing transformation you achieve additional returns We had a look at different alternatives. we had a look at different alternatives Let's call it traditional residential did not work out because of too much time attached to the project. let's call it traditional residential did not work out because of too much time attached to the project Short-term resi, which is living, flex living, hospitality, student accommodation, anything worked out pretty well. short-term resi which is living flex living hospitality student accommodation anything worked out pretty well We decided to go into the student accommodation direction. we decided to go into the student accommodation direction Why? why Because so much pressure from all operators, from everybody in the market looking at very much interest in this. because so much pressure from all operators from everybody in the market looking at very much interest in this By the way, we keep the optionality of this coming back to ordinary flex living or other areas of hospitality if market trends give us this advice. To transform a student accommodation into ordinary flex living, it's very easy in terms of CapEx requirements. Let's not forget about this optionality because as you know, flex living is also booming in Madrid. By the way, we keep the optionality of this coming back to ordinary flex living or other areas of hospitality if market trends give us this advice. by the way we keep the optionality of this coming back to ordinary flex living or other areas of hospitality if market trends give us this advice To transform a student accommodation into ordinary flex living, it's very easy in terms of CapEx requirements. to transform a student accommodation into ordinary flex living it's very easy in terms of capex requirements Let's not forget about this optionality because as you know, flex living is also booming in Madrid. let's not forget about this optionality because as you know flex living is also booming in madrid Of course, every time that we approach something that is not office, we carefully assess all of the risks attached to that. That meant here selecting an operating partner that came with us. We went through the interest of many different people, and we finally selected one, which unfortunately we are in quite advanced stages of discussions, but still not at the time that we can be transparent. Pity, but that's how business happens. We are very well advanced. In this particular area, what you should be seeing in the future is that we announce at some point a partnership to manage this project, which will bring comfort on, let's say, the proper management of the opportunity. Of course, every time that we approach something that is not office, we carefully assess all of the risks attached to that. of course every time that we approach something that is not office we carefully assess all of the risks attached to that That meant here selecting an operating partner that came with us. that meant here selecting an operating partner that came with us We went through the interest of many different people, and we finally selected one, which unfortunately we are in quite advanced stages of discussions, but still not at the time that we can be transparent. we went through the interest of many different people and we finally selected one which unfortunately we are in quite advanced stages of discussions but still not at the time that we can be transparent Pity, but that's how business happens. pity but that's how business happens We are very well advanced. we are very well advanced In this particular area, what you should be seeing in the future is that we announce at some point a partnership to manage this project, which will bring comfort on, let's say, the proper management of the opportunity. in this particular area what you should be seeing in the future is that we announce at some point a partnership to manage this project which will bring comfort on let's say the proper management of the opportunity We are considering going a little bit step beyond, that is to create together with a partner, a platform. I was going to say a small platform, but it won't be small, of our asset plus other assets in this universe of this partnership. I'm saying this because maybe this will be disclosed in the near future. The rationale behind this is that we are enhancing the value of what we have. We are considering going a little bit step beyond, that is to create together with a partner, a platform. we are considering going a little bit step beyond that is to create together with a partner a platform I was going to say a small platform, but it won't be small, of our asset plus other assets in this universe of this partnership. i was going to say a small platform but it won't be small of our asset plus other assets in this universe of this partnership I'm saying this because maybe this will be disclosed in the near future. i'm saying this because maybe this will be disclosed in the near future The rationale behind this is that we are enhancing the value of what we have. the rationale behind this is that we are enhancing the value of what we have Today, we have a development that is promising fantastic returns three years from now, but it's a development and that's it. If we contribute this to a platform, we will be transforming this into a share of a portfolio that is cash flow producing sooner, that has a more dominant position in terms of operations, in terms of competing, where we have already crystallized the expected value that we have for 2028 of our building. Today, we have a development that is promising fantastic returns three years from now, but it's a development and that's it. today we have a development that is promising fantastic returns three years from now but it's a development and that's it If we contribute this to a platform, we will be transforming this into a share of a portfolio that is cash flow producing sooner, that has a more dominant position in terms of operations, in terms of competing, where we have already crystallized the expected value that we have for 2028 of our building. if we contribute this to a platform we will be transforming this into a share of a portfolio that is cash flow producing sooner that has a more dominant position in terms of operations in terms of competing where we have already crystallized the expected value that we have for 2028 of our building We are de-risking the development, introducing cash sooner, having more value. That's why we may be going in this direction. Does this mean that we are, let's say, revisiting the strategy of Colonial? I think that today we wanted to pass the message to you that we are pretty focused on what we do. We are de-risking the development, introducing cash sooner, having more value. we are de-risking the development introducing cash sooner having more value That's why we may be going in this direction. that's why we may be going in this direction Does this mean that we are, let's say, revisiting the strategy of Colonial? does this mean that we are let's say revisiting the strategy of colonial I think that today we wanted to pass the message to you that we are pretty focused on what we do. i think that today we wanted to pass the message to you that we are pretty focused on what we do That is pretty consistent with maximizing value for every asset we own, and we are not shy, and we are ambitious in the way we do it for every asset. Sometimes we may give the wrong perception. I remember when we did the residential here, the one you passed through. Wasn't this a wise decision? We did it. That's created a much better environment. We did it. We sold it. That is pretty consistent with maximizing value for every asset we own, and we are not shy, and we are ambitious in the way we do it for every asset. that is pretty consistent with maximizing value for every asset we own and we are not shy and we are ambitious in the way we do it for every asset Sometimes we may give the wrong perception. sometimes we may give the wrong perception I remember when we did the residential here, the one you passed through. i remember when we did the residential here the one you passed through Wasn't this a wise decision? wasn't this a wise decision We did it. we did it That's created a much better environment. that's created a much better environment We did it. we did it We sold it. we sold it By the way, today we announced that we are quite advanced in the residential in Spain that was contributed from CriteriaCaixa 2 years ago. I remember a little bit of hesitation about what does this mean. I think that I would like to pass a message of comfort. To be an office player at the heart of your business, together with maximizing value through urban transformation is something that is consistent and it's in the benefit of shareholders. That's why we are here. By the way, today we announced that we are quite advanced in the residential in Spain that was contributed from CriteriaCaixa 2 years ago. by the way today we announced that we are quite advanced in the residential in spain that was contributed from criteriacaixa 2 years ago I remember a little bit of hesitation about what does this mean. i remember a little bit of hesitation about what does this mean I think that I would like to pass a message of comfort. i think that i would like to pass a message of comfort To be an office player at the heart of your business, together with maximizing value through urban transformation is something that is consistent and it's in the benefit of shareholders. to be an office player at the heart of your business together with maximizing value through urban transformation is something that is consistent and it's in the benefit of shareholders That's why we are here. that's why we are here This is the comments on Alpha X. 2 will be, or are currently urban transformation projects. The other two will be traditional prime factory initiatives. On capital recycling, the message is clear. Divestments are going quite well, as you can see. Much better than disclosed before, I would be honest, than expected. When we decided to go retail in the process of selling residential, we were right. We are achieving much higher premiums and much quicker than expected. The half a billion divestment program, it is being a success, honestly. Based on that, we are flagging the additional EUR 200 one. This is the comments on Alpha X. 2 will be, or are currently urban transformation projects. this is the comments on alpha x 2 will be or are currently urban transformation projects The other two will be traditional prime factory initiatives. the other two will be traditional prime factory initiatives On capital recycling, the message is clear. on capital recycling the message is clear Divestments are going quite well, as you can see. divestments are going quite well as you can see Much better than disclosed before, I would be honest, than expected. much better than disclosed before i would be honest than expected When we decided to go retail in the process of selling residential, we were right. when we decided to go retail in the process of selling residential we were right We are achieving much higher premiums and much quicker than expected. we are achieving much higher premiums and much quicker than expected The half a billion divestment program, it is being a success, honestly. the half a billion divestment program it is being a success honestly Based on that, we are flagging the additional EUR 200 one. based on that we are flagging the additional eur 200 one On the investment side, the EUR 200, yes, the message is you will probably see us investing in Germany. If things go the way they are, it will be prudent because we are talking below EUR 200 million framework. It will be prime. If it is not prime, it will not happen. Let's put it this way. As usual, it is not passive ownership of a beautiful asset. It is because we have identified things that we would like to do with these assets in due course. On the investment side, the EUR 200, yes, the message is you will probably see us investing in Germany. on the investment side the eur 200 yes the message is you will probably see us investing in germany If things go the way they are, it will be prudent because we are talking below EUR 200 million framework. if things go the way they are it will be prudent because we are talking below eur 200 million framework It will be prime. it will be prime If it is not prime, it will not happen. if it is not prime it will not happen Let's put it this way. let's put it this way As usual, it is not passive ownership of a beautiful asset. as usual it is not passive ownership of a beautiful asset It is because we have identified things that we would like to do with these assets in due course. it is because we have identified things that we would like to do with these assets in due course It will have an initial profitability, let's say, expected, which is higher than what we usually are used to in France or in Spain. On top of that, we'll have a little bit of real estate rationale attached to that that will bring us additional layers of returns in due course. It will probably be, again, through a partnership. This is another question that you put to us. Are you comfortable doing things here and there? Look, the story of Paris. It's been 20 years of international, let's say, exposure. It will have an initial profitability, let's say, expected, which is higher than what we usually are used to in France or in Spain. it will have an initial profitability let's say expected which is higher than what we usually are used to in france or in spain On top of that, we'll have a little bit of real estate rationale attached to that that will bring us additional layers of returns in due course. on top of that we'll have a little bit of real estate rationale attached to that that will bring us additional layers of returns in due course It will probably be, again, through a partnership. it will probably be again through a partnership This is another question that you put to us. this is another question that you put to us Are you comfortable doing things here and there? are you comfortable doing things here and there Look, the story of Paris. look the story of paris It's been 20 years of international, let's say, exposure. it's been 20 years of international let's say exposure By the way, urban transformation, the Mandarin, it was 15 years ago. Yeah, 10, 12 years ago. Message of comfort. We do this on a regular basis. You will see a little bit of this capital recycling happening this way, but most of all within this framework that you have repeatedly been explaining today. By the way, urban transformation, the Mandarin, it was 15 years ago. by the way urban transformation the mandarin it was 15 years ago Yeah, 10, 12 years ago. yeah 10 12 years ago Message of comfort. message of comfort We do this on a regular basis. we do this on a regular basis You will see a little bit of this capital recycling happening this way, but most of all within this framework that you have repeatedly been explaining today. you will see a little bit of this capital recycling happening this way but most of all within this framework that you have repeatedly been explaining today All of this in a context of wisely managing investments versus deleveraging versus share buybacks. I think that Carmina explained that very well. We constantly look for investment opportunities. We are strict about the hurdle rate and the return we want to achieve. If it's out there, fantastic. If it's not there, okay. We also want this to be on a condition precedent of prime financial structure, which today means additional deleveraging. All of this in a context of wisely managing investments versus deleveraging versus share buybacks. all of this in a context of wisely managing investments versus deleveraging versus share buybacks I think that Carmina explained that very well. i think that carmina explained that very well We constantly look for investment opportunities. we constantly look for investment opportunities We are strict about the hurdle rate and the return we want to achieve. we are strict about the hurdle rate and the return we want to achieve If it's out there, fantastic. if it's out there fantastic If it's not there, okay. if it's not there okay We also want this to be on a condition precedent of prime financial structure, which today means additional deleveraging. we also want this to be on a condition precedent of prime financial structure which today means additional deleveraging First goes the capital structure, then later goes the investment decisions. That means also a context of capital recycling, selling, and buying. That's basically the framework that we expect regarding capital structure. I think that the idea today was to pass you the message that we pretend to have a sophisticated approach to financing decisions. First goes the capital structure, then later goes the investment decisions. first goes the capital structure then later goes the investment decisions That means also a context of capital recycling, selling, and buying. that means also a context of capital recycling selling and buying That's basically the framework that we expect regarding capital structure. that's basically the framework that we expect regarding capital structure I think that the idea today was to pass you the message that we pretend to have a sophisticated approach to financing decisions. i think that the idea today was to pass you the message that we pretend to have a sophisticated approach to financing decisions In the end, it's about minimizing our average cost of capital, and I think you have seen what is the cost of capital that comes from this capital structure decision today. We do have a prudent capital structure. We also manage, I think, as many other companies, interest rates with prudency, meaning hedging policies as everybody else, or not everybody else, as many companies. In the end, it's about minimizing our average cost of capital, and I think you have seen what is the cost of capital that comes from this capital structure decision today. in the end it's about minimizing our average cost of capital and i think you have seen what is the cost of capital that comes from this capital structure decision today We do have a prudent capital structure. we do have a prudent capital structure We also manage, I think, as many other companies, interest rates with prudency, meaning hedging policies as everybody else, or not everybody else, as many companies. we also manage i think as many other companies interest rates with prudency meaning hedging policies as everybody else or not everybody else as many companies On top of that, we were, if you want, lucky or wise to take some decisions a few years ago that generated value for shareholders for several hundred million EUR. At the beginning, more than 400 million EUR now. This can be recognized in different ways. We follow strict IFRS rules, as I think anyone should do. You can look at this in many different ways, but the value is there. These are good news, the fact that value has been generated. On top of that, we were, if you want, lucky or wise to take some decisions a few years ago that generated value for shareholders for several hundred million EUR. on top of that we were if you want lucky or wise to take some decisions a few years ago that generated value for shareholders for several hundred million eur At the beginning, more than 400 million EUR now. at the beginning more than 400 million eur now This can be recognized in different ways. this can be recognized in different ways We follow strict IFRS rules, as I think anyone should do. we follow strict ifrs rules as i think anyone should do You can look at this in many different ways, but the value is there. you can look at this in many different ways but the value is there These are good news, the fact that value has been generated. these are good news the fact that value has been generated How do you look at it and how this is recognized? I think it's second-level debate. The first one is value has been generated. Anyway, as Carmina explained, our deleveraging process, it means that we are at the low end of the frame that is considered by S&P for our current rating. How do you look at it and how this is recognized? how do you look at it and how this is recognized I think it's second-level debate. i think it's second-level debate The first one is value has been generated. the first one is value has been generated Anyway, as Carmina explained, our deleveraging process, it means that we are at the low end of the frame that is considered by S&P for our current rating. anyway as carmina explained our deleveraging process it means that we are at the low end of the frame that is considered by s&p for our current rating On top of that, with our current business plan, our expectation is that this LTV with current market circumstances will go down between 150 and 250 basis points additional for this kind of midterm. Let's say a scenario that we predict. [So I think,] last but not least, and also Carmina said it is very important, without compromising earnings growth. I think that any company, it's about the sound equilibrium of earning growth with leveraging, the leverage or discipline decision. This is the framework of what we want to do going forward. On top of that, with our current business plan, our expectation is that this LTV with current market circumstances will go down between 150 and 250 basis points additional for this kind of midterm. on top of that with our current business plan our expectation is that this ltv with current market circumstances will go down between 150 and 250 basis points additional for this kind of midterm Let's say a scenario that we predict. let's say a scenario that we predict [So I think,] last but not least, and also Carmina said it is very important, without compromising earnings growth. [so i think,] last but not least and also carmina said it is very important without compromising earnings growth I think that any company, it's about the sound equilibrium of earning growth with leveraging, the leverage or discipline decision. i think that any company it's about the sound equilibrium of earning growth with leveraging the leverage or discipline decision This is the framework of what we want to do going forward. this is the framework of what we want to do going forward Since this may seem very theoretical, the objective for today was to translate this into numbers. This is a kind of summary of the business plan that we use internally to work. The management of Colonial and SFL. We have a, let's say, sophisticated and detailed business plan in order to frame any decisions. We look at everything from an industrial point of view. I said at the beginning that it's nice to have these opportunities to talk. Since this may seem very theoretical, the objective for today was to translate this into numbers. since this may seem very theoretical the objective for today was to translate this into numbers This is a kind of summary of the business plan that we use internally to work. this is a kind of summary of the business plan that we use internally to work The management of Colonial and SFL. the management of colonial and sfl We have a, let's say, sophisticated and detailed business plan in order to frame any decisions. we have a let's say sophisticated and detailed business plan in order to frame any decisions We look at everything from an industrial point of view. we look at everything from an industrial point of view I said at the beginning that it's nice to have these opportunities to talk. i said at the beginning that it's nice to have these opportunities to talk As you can imagine, everything we do, we cannot do it looking at the impact during this year on EPS or during this year on the balance sheet. This would not be sound management. We do it looking at a five-year period or a much longer even year period. To pass a message today, this is, well, in fact, Carlos went through this. As you can imagine, everything we do, we cannot do it looking at the impact during this year on EPS or during this year on the balance sheet. as you can imagine everything we do we cannot do it looking at the impact during this year on eps or during this year on the balance sheet This would not be sound management. this would not be sound management We do it looking at a five-year period or a much longer even year period. we do it looking at a five-year period or a much longer even year period To pass a message today, this is, well, in fact, Carlos went through this. to pass a message today this is well in fact carlos went through this This is the translation of everything we are expecting to do in the next three years. This means that we should see our EPS in the range of 39-41 by 2028. Which means an annual total return between 11% and 13% as a combination of the EPS yield and the growth. You can look at this also from looking just at dividend yield plus the growth. This is the translation of everything we are expecting to do in the next three years. this is the translation of everything we are expecting to do in the next three years This means that we should see our EPS in the range of 39-41 by 2028. this means that we should see our eps in the range of 39-41 by 2028 Which means an annual total return between 11% and 13% as a combination of the EPS yield and the growth. which means an annual total return between 11% and 13% as a combination of the eps yield and the growth You can look at this also from looking just at dividend yield plus the growth. you can look at this also from looking just at dividend yield plus the growth Maybe it's a side comment that is maybe good to have or maybe not so much, yes, we were told, "Please, let's remind the audience that we, the management, have skin in the game." That this matters to us. I can tell you it matters. I can tell you because if you want to be very basic about this, our remuneration is biased towards variable remuneration as opposed to fixed remuneration in a comparison with a benchmark. Maybe it's a side comment that is maybe good to have or maybe not so much, yes, we were told, "Please, let's remind the audience that we, the management, have skin in the game." That this matters to us. maybe it's a side comment that is maybe good to have or maybe not so much yes we were told "please let's remind the audience that we the management have skin in the game." that this matters to us I can tell you it matters. i can tell you it matters I can tell you because if you want to be very basic about this, our remuneration is biased towards variable remuneration as opposed to fixed remuneration in a comparison with a benchmark. i can tell you because if you want to be very basic about this our remuneration is biased towards variable remuneration as opposed to fixed remuneration in a comparison with a benchmark In this variable part of our remuneration, it's biased towards total shareholder return for shareholders above peers, above the benchmark. We are on the same boat. That's what I wanted to say with you. It's not that we want to please you with this, and then we come to our ordinary life, no. Our ordinary life is about to deliver, sorry, not only for you, but for us, too. In this variable part of our remuneration, it's biased towards total shareholder return for shareholders above peers, above the benchmark. in this variable part of our remuneration it's biased towards total shareholder return for shareholders above peers above the benchmark We are on the same boat. we are on the same boat That's what I wanted to say with you. that's what i wanted to say with you It's not that we want to please you with this, and then we come to our ordinary life, no. it's not that we want to please you with this and then we come to our ordinary life no Our ordinary life is about to deliver, sorry, not only for you, but for us, too. our ordinary life is about to deliver sorry not only for you but for us too This is basically what I wanted to share today. Now we will have, for those of you who are sharing this place with us today, the opportunity to question, to debate for anything that needs more deep dive. As I said at the beginning, it's been a pleasure to have this opportunity. At the beginning, I mentioned, well, these are the takeaways that we would like. You always have to even more simplify, no. This is basically what I wanted to share today. this is basically what i wanted to share today Now we will have, for those of you who are sharing this place with us today, the opportunity to question, to debate for anything that needs more deep dive. now we will have for those of you who are sharing this place with us today the opportunity to question to debate for anything that needs more deep dive As I said at the beginning, it's been a pleasure to have this opportunity. as i said at the beginning it's been a pleasure to have this opportunity At the beginning, I mentioned, well, these are the takeaways that we would like. at the beginning i mentioned well these are the takeaways that we would like You always have to even more simplify, no. you always have to even more simplify no For me, the takeaway is that we have a good strategic positioning, but more importantly, that this company is offering clear visibility on midterm growth. In the end, that's what we wanted to share with you today. Our daily life when we interact with capital markets, sadly, is too much focus in what's happening in the next few weeks or months or within the year. For me, the takeaway is that we have a good strategic positioning, but more importantly, that this company is offering clear visibility on midterm growth. for me the takeaway is that we have a good strategic positioning but more importantly that this company is offering clear visibility on midterm growth In the end, that's what we wanted to share with you today. in the end that's what we wanted to share with you today Our daily life when we interact with capital markets, sadly, is too much focus in what's happening in the next few weeks or months or within the year. our daily life when we interact with capital markets sadly is too much focus in what's happening in the next few weeks or months or within the year For me, capital market is about having the opportunity to look beyond. For me, the main takeaway is clear visibility on midterm growth. Because of everything that's happening, all of this within a framework of disciplined capital allocation. We also wanted to pass the message of not only how much, but also the message of how are we managing this company. That's it. Thank you. Just now, in a few minutes, we will start the second part, debate or Q&A. For me, capital market is about having the opportunity to look beyond. for me capital market is about having the opportunity to look beyond For me, the main takeaway is clear visibility on midterm growth. for me the main takeaway is clear visibility on midterm growth Because of everything that's happening, all of this within a framework of disciplined capital allocation. because of everything that's happening all of this within a framework of disciplined capital allocation We also wanted to pass the message of not only how much, but also the message of how are we managing this company. we also wanted to pass the message of not only how much but also the message of how are we managing this company That's it. that's it Thank you. thank you Just now, in a few minutes, we will start the second part, debate or Q&A. just now in a few minutes we will start the second part debate or q&a Thank you. Thank you. thank you