Good morning, everyone, and welcome to our presentation. This is the presentation of Lighthouse Properties.

It's for the interim period ended 30 June 2026. We're covering the first six months of the financial year.

Again, I'd like to just say thank you all for being here with us. We do know everyone's very busy, especially at this time of the year, and we do appreciate you taking the time to be with us here this morning.

As usual, I'm joined by my colleagues, Răzvan Sin, our head of retail, and our new CFO, who'll be presenting for the first time, Dawie Swarts. Just in terms of housekeeping, Q&A, we will hold that at the end.

If you do have any questions, there should be a tab on your screen that says "Questions", and you click on that and there should be a box that you type your question into. Then at the end of the presentation, we will read them out aloud and answer them accordingly.

Before I move on, I'd like to talk to the pictures and just to share a bit of color. This is H2O.

It's one of our two centers in Madrid. We've recently finished quite an extensive refurbishment here.

We've replaced the flooring, improved the lighting, replaced the balustrades, we also refurbished the food court. There was a large exterior artificial lake, which we partially filled and created a park space and a green area.

I think most importantly, we've been focusing on the tenanting here. All the Inditex brands other than Zara have all been extended and refurbished, are currently trading in their latest concepts.

We've agreed with Zara to refurbish and extend their store, and they will be concluding that during the course of 2027. What we've also done is signed a lease with Lefties.

Lefties will be taking the space left behind by the arcade and bowling operator. They've relocated to the location of the trampoline park, who vacated the scheme due to national insolvency.

It's exciting we do have Lefties coming here. We now do have all the Inditex brands.

Despite all these ongoing works and relocations and letting and tenanting, mall's continuing to perform well. Sales still growing for the period over 6%.

Vacancies have dropped just below 1%, and we expect the mall to become fully let once Lefties is fully open and operational, which will be towards the end of 2026. In terms of the content and what we're going to be covering this morning, I'll start with an overview.

I'll take you through our strategy as well as some of the highlights for the period, and then we'll hand over to Dawie, who will take you through the financial results and some of the financial KPIs. Then Răzvan will take you through the operations.

He'll take you through the letting initiatives, some of the projects we're busy with and the projects we plan to commence with in the coming months. Then we will conclude with an outlook, and we'll provide an update on the guidance, and then we will also follow up with the Q&A session at the end.

Again, talking to the picture, this is Salera. It's our mall in Castellón in Spain on the Mediterranean coast.

It's our largest mall, probably our most powerful mall in Spain. You do see at the bottom there Bershka as well as Stradivarius.

They've relocated here. They were undersized and overtrading, and have opted to move to these locations.

From where they were, it is a secondary location, but I think they were so desperate to have the size that they needed that they were happy to compromise on the location. They now have anchored this part of the mall.

It was fairly cold before. It was anchored by Sports Direct as well as United Colors of Benetton.

Much more powerful offering here, and it's completely re-energized and reactivated this part of the mall. The other thing it's done, it's enabled us to bring some new tenants to the mall as well.

We've got Rossellimac, which is one of the Apple premium resellers, which wasn't present in the mall before. We do have Scalpers now that have joined the mall, as well as Cortefiel.

Also performing nicely, sales growth at Salera was about 8.5% for the period, and the mall's effectively fully let. Then just to kick off with an overview, again on the picture, this is Alcalá Magna.

It's one of our two malls that we own in Madrid. It's in one of the rapidly growing residential nodes.

It's the smallest mall in our Iberian portfolio. Despite this small size, it's 32,000 square meters, it's performing extremely well.

It keeps surprising us. The sales growth here was about 12.3% for the period.

Vacancy is very low, 0.6%. Despite its size, it does have all the tenants.

It's got Zara, who've refurbished and are on their latest flagship concept. We've got Primark as well, also has a Lefties, and a very strong Mercadona as well.

Again, despite this size, it's attracting over 7 million feet. It's punching well above its weight.

Very strong center, especially given its size. Just to recap on the strategy, nothing much has changed.

We've been consistent with the strategy over the past couple of years. What we're trying to do is provide a stable investment with sustainable growing distributions, which are all underpinned by dominant, defensive malls.

With this in mind, we've got a very specific investment criteria when it comes to acquiring new malls and investing our capital. We do only focus on dominant and defensive malls.

In our minds, to be dominant, you do need to have the key tenants. You do need Zara, and Zara on a latest flagship concept, and you do need a Primark.

In most instances, you'll see if we're outside of the major metropolitans, we usually do have the only Zara and the only Primark in that specific city. It's so important to have Zara on their latest flagship concept.

They are consolidating, they are closing the stores. If you see a situation where Zara have invested money in a store and upgraded to a flagship concept and there's an older Zara within proximity, it's a higher risk that that Zara will also close.

We've been focusing a lot on getting all the Zaras up to the latest flagship concept. H2O, which I mentioned earlier, is the last remaining one which we've agreed with them to do, and that will be done during the course of next year.

Again, we only focus on cities with a strong economic underpin, it's provincial capitals, agriculture, mining, tourism is often the case, or we don't mind the major metropolitans. We are in Madrid, we mentioned the two malls earlier, we also do have a mall in Lisbon.

I think what's important is that there's a growing population in these respective cities. There is urbanization happening in Europe.

Prevalent in Spain, we avoid the cities with these declining populations. You do need that growing population just to give you that tailwind when it comes to footfall growth and sales growth.

We're focusing on Western Europe, specifically Iberia. We intend to do so for the foreseeable future.

On the acquisition side, it has abated somewhat. We are seeing there's still opportunities, but it's become extremely competitive.

We are starting to focus more and more on enhancing the assets, reinvesting capital in the assets themselves. That this investment does come with returns, it includes extensions, refurbishments, moving tenants around, bringing the correct tenants in, and we are attracting very, very attractive returns on these capital deployments.

In terms of acquisitions, even though we do think there will be fewer acquisitions going forward, we do still constantly monitor. I think all opportunities do come across our desk.

We're well known in the market, and we continue monitoring. I think when there is weakness or there is a specific opportunity, we will be able to execute on it.

Just with that strategy in mind, looking back, we see how we've executed it over the past few years. We started on the Iberian expansion in 2022, acquired our first mall in Spain, this was Torrecárdenas.

That was then followed up in 2024, which I think was the best year to be buying centers in Iberia. This is when we were acquiring centers at yields of between 7.5% and 8%.

We followed that up in 2025 with two additional acquisitions. These yields were between 7% and 7.5%, we did see yield compression happening already.

Starting in 2026, you'll probably read in the press there's some big acquisitions happening, some malls are being acquired, but these yields have dropped 6.5% sort of and below. It has become less attractive to buy.

There is a lot of capital chasing the few assets in Iberia. It's become a very attractive investment destination, especially for offshore and foreign capital.

In terms of the debt refinancing, I think when we acquired a lot of these centers, they came with existing loans. Some of these loans were amortizing, it was quite a drag on our cash flow.

That they've all been refinanced. There is no more material amortization in the portfolio, and our debt maturities been extended as well.

A lot of the focus, which Răzvan will take you through some of the detail a bit later, has been focusing on improving the existing assets and value creation, and we are seeing nice returns, and this is how we're driving our growth in the next couple of years. On the financial highlights for the first half, I think the most important number there, that 9.7% growth in distributions.

This builds on the 7.9% that we achieved for the first half of last year, you are starting to see nice, consistent growth coming through. It was driven by acquisitions that were made during the first half of last year.

They're now contributing for a full six-month period, as well as the strong sales growth, which we'll touch on a bit later, but there has been strong sales growth across all geographies, pushing up your turnover rentals, also helping with your indexation and your lease renewals. On the LTV side, 35.9%, it's improved slightly from the 36.1%, and it's because of valuations.

We did revalue at the end of 2025. We haven't revalued for the interim.

We only revalue at year-ends. That benefit comes through from the valuations that were already done.

You do see that coming through in that NAV increase per share of 4.9%. It's due to the revaluations that were done at the end of 2025.

NPIs are up nicely, and I think cap rates have compressed further, we do expect that NAV growth to continue towards the end of the year. In terms of refinancings, we've been quite busy here, and these both happened after the period end.

Torrecárdenas, Alcalá Magna been refinanced by Aareal, we repaid the old facilities, and then we do now new facilities, which have extended our debt maturity profile. I think quite importantly, we've secured terms with Natixis to refinance the French loan, which was maturing in March 2027.

We were surprised at how competitive that process became for the lenders. There were five potential lenders we could have gone with.

We ended up electing to go with Natixis, who was the existing lender, main reason being execution risk. They were familiar with the assets and they had all the security already, it made sense to go with them.

What they also did do is reduce the margin. When we borrowed from them originally, that margin was 300 basis points in 2022.

It's now reduced to 175 basis points, quite a major reduction in the margin there. I think it's an acknowledgment and recognition of the improvement in the market conditions firstly, but also the improvement in the assets.

Much better quality assets, much better quality tenant profiles, also been improved from various enhancements and extensions that have been done and refurbishments that have been done to those centers. Just to take you through the operational highlights.

As you see, Spain, Portugal, that's 87% of our portfolio, the major part of our business, with just under 13% being France. Like-for-like NPI growth at a portfolio level, 4.5%.

It dragged down somewhat by Portugal, but I think it's important to understand that Portuguese portfolio, there's only two assets in that portfolio. One is Forum Coimbra, other one's Forum Montijo.

Forum Coimbra is having quite a major extension done to it, mostly with the Inditex brands, and that involves some voids and moving some tenants around, also some rent-frees and some tenants being closed. That did drag down the NPI.

You do see a contrast with the sales growth of 9.5% for the period, but we do expect that NPI to normalize into 2027. I think we'll see a number north of 6% for Portugal for 2027 once these projects are completed and trading normalizes again.

On the sales growth, Spain continues to outperform, also very strong, far above inflation at 7.7%, and France also performing nicely, 5.7%, taking the portfolio total to 7.9%. Growth in footfall, 3%.

It is difficult to continue growing footfall, but a tailwind that helps this is being in these growing population areas and bringing the right tenants and attracting more and more shoppers, and also keeping the malls relevant and aspirational, and this is driving footfalls, which in turn does help you drive sales. EPRA vacancies, our Iberian portfolio, it just speaks to the quality, it's almost fully let, 0.3% in Spain and fully let in Portugal, and then France sitting at about 6%, but being fairly stable at about that 6% level, taking our total portfolio vacancy to 1.1%.

This is just a slight evolution of the portfolio from over the past 12 months. You can see a bit of stability and some staticness happening here.

The only difference being we acquired the grocer, a grocer in Cartagena in Espacio Mediterráneo towards the end of 2025, and that did bump up that Spanish exposure a bit from 58% to 59.1%. If you're investing in Lighthouse, you primarily investing in an Iberian portfolio.

There are only eight assets, but all eight of those assets are dominant, are effectively fully let, and are growing quite nicely. Then the balance being 12.8% is invested into French assets, that's a portfolio of four assets.

With that, I'll hand you over to Dawie, who's presenting for the first time. He'll take you through the financial results.

Welcome, Dawie.

Thank you for that introduction, Justin. I'm going to take us through the financial results for the six months ended 30 June 2026.

As Justin has already mentioned, the most important metric on this slide is the increase in distribution per share, which is 9.7% for the six months ended 30 June 2026 compared to the prior period. This is off the back of a 10.9% increase in distributable income, offset slightly by an increase in shares due to a scrip dividend for the second half of December 2025.

Distributable income increased mainly due to an increase in property rental and related revenue, and this is as a result of the acquisition of two properties in 2025. This was Espacio Mediterráneo in June '25, as well as Alcalá Magna in March 2025.

We've also had some rental indexation, which Raz will take us through a bit later, as well as ongoing asset management initiatives. This increase in property rental has been offset by an increase mainly in finance costs, also as a result of the acquisition of these two assets, and therefore, the loans to fund these assets increased as well.

Our payout ratio remained at 100% from the previous period, and our net asset value increased by 4.9% compared to 30 June 2025. This is, as Justin has also mentioned earlier, mainly due to an increase in fair value adjustments in our investment properties at December 2025.

I'll now take us through our debt profile. As Justin has mentioned also, we focus on a strong balance sheet and also on a disciplined LTV ratio, and we do extensive hedging.

Our interest-bearing borrowings as at 30 June 2026 remained relatively stable compared to December '25. It decreased from €581 million to €578 million, and this decrease is mainly due to amortization of loans, which we are planning on largely eliminating going forward, which I'll talk to in the next slide.

Our LTV ratio decreased slightly from 36.1% at December '25 to 35.9% at June 2026. Our cost of borrowings also remains stable at 4.97% compared to 4.99% for the comparable period in the prior year, and this is mainly as a result of our fixed borrowings.

We'd fixed all our debt either through fixed loans or through interest rate derivatives, and that remained 100% fixed for the current and the comparable period. Our weighted average debt maturity decreased from 4.7 years at December '25 to 4.3 years at June 2026.

On the right-hand side of the slide, you will see that we have quite a significant amount of debt maturing in 2027, and this is mainly due to our French portfolio that is expiring in March 2027. Moving on to the next slide, then talking about the refinancing, we have two debt streams that happened after June 2026.

Firstly, we refinanced two properties in Spain, and this was Torrecárdenas and Alcalá Magna. We increased our debt on these two loans to €128.1 million, and this was a six-year bullet debt profile with no amortization on the debt.

We have a significant improvement on our margin achieved from 226 basis points previously obtained to 185 basis points for the new debt. This was already closed in the beginning of July 2026.

This new facility gives us better governance flexibility because we now have one debt facility covering all our Spanish properties except for Salera, which is in a joint venture, and there's also enhanced cash extraction from these properties as a result of this refinancing. Then moving on to the debt that is expiring in March 2027, as I mentioned, it's the France debt, and we're expecting to close this refinancing in the fourth quarter of 2026.

We decided to remain with Natixis, which is incumbent lender, due to execution risk on this facility. The margin on this facility decreased significantly from 300 basis points that we achieved in 2022 to 175 basis points for the current facility.

The facility is also expected to increase to €126 million, and this would be a five-year bullet loan compared to the current loan on the French portfolio, which has quite a significant amortization portion on that. This refinancing is also going to provide us with better covenant flexibility and also enhanced cash extraction due to less covenants than we had in the previous facility.

Post the refinancing of both the Spanish debt in Torrecárdenas and Alcalá, as well as the French debt, our expected cost of debt is going to increase from around 4.97% for the six months ended 30 June to around 5.05%, and this increase is mainly due to a significant increase in the base rates, but it's offset significantly by our improved margins on both the Spanish as well as the French debt, which I've already spoken to. Our average maturity of debt is also then expected to increase from 4.3 years as at 30 June 2026 to 5.2 years post the refinance.

As mentioned before, the group will now have no material amortizing loan outstanding anymore, which will reduce the cash drag on our debt. With that, I'll give over to Răzvan to take us through the operations.

Thanks.

Thank you, Dawie. Good morning, everyone.

In the following slides, I will take you through the operational highlights for the first half of 2026. This is a picture with Espai Gironès.

This is a mall that we are extending mainly to introduce and extend Zara. They are currently busy fitting out and they will open the new flagship store in October this year.

Performance metrics: EPRA vacancy, 1.1%, this is down from 1.3% at the end of 2025. Spain, 0.3%, down from 0.5%, this is mainly due to the leasing of the vacant space in H2O.

Portugal, vacancy is practically 0%. France is flat at 6.1%.

Collection rate, 98.7%, it's more than 99% in Spain and Portugal, 97% in France. Going forward, we expect vacancy and collection rate to stabilize and maybe we'll see some improvements in France in 2027.

Average occupancy cost, 10.5%, this is slightly lower than previously reported, it was 10.6%. As sales increase, we are also increasing the base rent when leases expire, but in this six months sales increased materially, average occupancy cost is down, and this will allow us to deliver a consistent rental uplift going forward as leases expire.

Indexation: 2.9% in Spain, 2% in Portugal, and in France in Q1, -0.5%. It was communicated only for Q1, it will be published for Q2 in September, and our expectation is that for the full year in France indexation will be somewhere around 1%.

On the right side, the lease expiry profile by monthly rental, no major changes here, approximately 40% of the leases expire in the next five years. Average rental reversion, 6.5%, it was 5.1% in 2025.

We managed to increase the base rent at a higher level than in 2025, and this talks to the occupancy cost that I mentioned before. This level excludes indexation, which is applied on indexation date.

Leasing activity: 85 leases in the first six months were signed, this is for more than 38,000 square meters of GLA. On the right side, the sales variation by sector.

Sales improved across all countries, with growth exceeding the inflation materially. As Justin already mentioned, sales improved with 7.9% across the portfolio.

The highest increase was in the leisure sector, 17.4%, due to the exceptional performance of the cinemas this year. The rest of the leisure tenants, meaning bowling centers, arcade games, and fitness centers, also performed well, but not at the level of the cinemas.

Cinema tickets increased with 29.2% in the first half compared to the first half of '25, and the growth was driven by content and blockbusters, and we expect this growth to continue also in the second half. The 29% growth in ticket sales corresponds to a total growth in sales of more than 35% for the cinemas due to the increase in prices for concessions and tickets.

For the rest of the sectors: services increased 11.9%, personal care 7.9%, and fashion, which is the largest category, it represents 36% of the rental income, it increased with 6.2%. Within fashion, the best performer was the Inditex Group with all the seven brands, the increase was more than 10% there.

Top 10 tenants by rental income: the largest 10 tenants represent 31.5% of the rental income. Inditex is our main tenant with the seven brands and together they account for 12% of the income, while Zara alone, which is the flagship of the group, represents 4.9%, right ahead of Primark with 4.7%.

The two brands are very selective, both Zara and Primark. They only open in dominant malls, and they're many times followed by other tenants.

Tenants consider the presence of the two tenants, Primark and Zara, in a mall as an indicator of the quality of that mall. They're following the two brands.

Inditex is present in 11 out of the 12 malls, and Primark is present in 10 out of 12. As Justin mentioned, it is important to have them, but also it is important to have them on the right concept, on the latest concept, and on the right size, because this means that they invest in their stores to update.

This is especially important for Zara. They are continuing the consolidation process, they are closing the secondary locations and they are enlarging the performing ones.

In our portfolio, we have eight Zara stores in Iberia, in all eight malls, seven out of those eight have been refurbished recently, and the last one is H2O, which will be extended and refurbished in 2027. Spain operational highlights: Spain represents 59.1% of the direct portfolio by fair value.

GDP growth of 2.7%, well above the European average, it's one of the highest in Western Europe. Like-for-like NPI growth of 5.6%.

Tenant sales up 7.7%. In general, in shopping centers in Spain, sales increased with 6%, the portfolio is outpacing the market average with 7.7% compared to 6%.

Footfall growth, 2.4% up. EPRA vacancy, 0.3%, down from 0.4%.

On the right side, some of the projects and leasing highlights that we've been busy with in this first six months. At Salera, Bershka and Stradivarius, they relocated and opened larger stores.

This allowed us to introduce Rossellimac, Scalpers, and Cortefiel. Lefties, also in Salera, they refurbished and opened the latest concept in April.

At Espai Gironès, the extension of the mall for Zara is advancing well, and it's within budget. Zara took over the unit, and they will open in October.

At Espacio Mediterráneo, Primark signed the renewal and they quickly refurbished the store, and in June, they opened a new concept. We opened two new brands, Mangotin and Rossellimac.

Also in Mediterráneo, we handed over the space to Perfumerías Primor, and they are expected to open in September. At H2O, previously we communicated that we are in negotiations with a large fashion tenant.

Consequently, we signed a lease agreement with Lefties. This is a large store, 3,200 square meters.

We are preparing the space for them now, and they will open before December this year. NPI growth of 5.6% in Spain.

Considering all the initiatives that we have in Spain, we have considerable room for improvement in 2027. This is because a lot of the large stores are or will be temporarily closed during 2026.

Here I refer to Zara in Espai Gironès, Bershka, Stradivarius, and Lefties, which were closed for a period in Salera, Lefties, who will open at the end of the year in H2O, and of course, Inditex and Primark in Coimbra. This is Portugal.

Some of the openings in Spain, you can see Primark and Mangotin in Mediterráneo, and Bershka, Cortefiel, and Lefties at Salera. Moving to Portugal, which represents 28.1% of the portfolio.

GDP growth, 2.1%, again, one of the highest in Western Europe. Like-for-like NPI growth of 1.7%.

This is low because of the rental voids and because of the projects that we are busy with. We have some disruptions, mainly with Inditex and with Primark in Coimbra.

Tenant sales increased with 9.5%. This is compared to an increase of 5.1% in shopping centers in general in Portugal.

Footfall growth, 3.1%, and EPRA vacancy is 0%. Some of the projects and leasing initiatives: we have two ongoing projects at Coimbra.

This is the extension of the mall for Inditex and for Primark. The Inditex part was finalized, Zara, Stradivarius, Bershka, Pull&Bear are now open.

Zara opened a flagship, almost 4,000 square meters. In July, just now, they closed the competing store in the city.

This is part of the consolidation strategy. Once Zara opened in Forum Coimbra, they closed the second store.

The second project in Coimbra is the extension of the mall on the second floor to add a new medical center. The lease with the medical center has been signed, and we will deliver the space by the end of the year and they will open at the beginning of next year.

Some of the openings: Sephora and Lego in Coimbra, and the Zara flagship together with Bershka and Pull&Bear also in Coimbra, and in Forum Montijo, Motocard, who opened in the retail park. Operational highlights for France, which represents 12.8% of the portfolio.

GDP growth here is only 0.2%. Like-for-like NPI growth, 6.6%, driven by the asset management and leasing initiatives.

Tenant sales increased with 5.7%, footfall increased with 4.5%. This is compared with a negative growth in sales in shopping centers in general in France.

Sales in comparable shopping centers in France were negative, -0.5%, and this is despite the strong performance of the cinemas. Footfall increased with only 0.8%.

EPRA vacancy is stable at 6.1%. On the right side, some of the projects and leasing highlights: New Yorker and Popeyes signed the leases for new stores with opening in Q4 in Rivetoile.

In Docks Vauban, we opened two new restaurants, Les 3 Brasseurs and O'Tacos, and we have one more Italian concept on a large surface opening in the second part of the year. At Saint Sever, we opened Rituals, and at Docks 76, we signed the lease agreement with New Yorker, who will open in Q2 next year.

Also in France, we have two large spaces, two New Yorker stores that will be operational only in 2027. I think the main message that I want to send is that we deliver strong NPI growth in 2026, but we had some major disruptions.

Several of the large tenants were not fully operational because of extensions and refurbishments, and these tenants will be fully operational in 2027, which will drive further NPI growth. With this, I finished the operational part and hand back to you, Justin.

Thank you, Răzvan. I think we will just conclude with the outlook and give you an update on the guidance, and then we'll move on to the Q&A section.

I think in terms of outlook, we will remain disciplined on that investment approach, which I spoke of earlier. It's very important that we have dominant assets and we won't compromise on quality in exchange for yield.

Given that, we do expect acquisitions to moderate for the foreseeable future. On the flip side of that, we're seeing very strong economic performance out of Iberia, strong sales growth, that momentum remains strong, and we don't see it changing in the foreseeable future as well.

It will continue driving our growth. As you've seen with Răzvan, there's a lot happening in the portfolio, there's lots of moving parts, there's a lot of projects that are currently on the way.

These will be concluded mostly towards the end of this year and some during the course of next year, but this will continue as these get let up, will continue driving our growth into 2027. Expecting 2027 to be another good year.

With regards to 2026, we have upgraded our guidance and increased it from €0.0295 for the full year to €0.03, and that takes our growth from an improvement from 6.9% to that 8.7% level, which we're very pleased with. I think it does show the quality of that portfolio and the strength of some of the asset management initiatives.

That does build on again, I think last year the increase was about 7.5%, it's an improvement even on that. We're very happy with that number.

I think that concludes the presentation, and then we will hand over to the Q&A section. Dawie, I think there have been some questions that have been asked during the presentation.

Dawie will read them out aloud and then either Răzvan, myself, or Dawie will answer accordingly.

All right, we have a few questions. I'll try and group some of them together.

The first one talks about our asset management across the portfolio with attractive yields. The question is, can you provide a summary of these across the portfolio and also the budgeted yields?

There's a few of them and they do come at various yields. For example, Forum Coimbra, that was a €12 million project, and that was primarily to extend Primark as well as all of the Inditex brands.

The yield on that was around 7.5%. When we talk yield, we just talk incremental rental increase over the cost that's incurred.

Over and above that, you do get further benefit. In Coimbra, specifically, Zara closed in the competing scheme, which means that that'll consolidate into our scheme, which means there'll be more footfall, means there'll be more sales across the portfolio.

That 7.5% is probably understated to what your real return is. You may also get a slight compression in cap rate because you've become more dominant.

That's an example in Coimbra. We also have Girona.

That one was about €6.6 million at about a 5.5% yield, quite low, but again, I think there that will be improved because of the dominance that's created by the competing Zaras in the competing schemes closing. Salera, we spoke of that earlier.

We moved Stradivarius as well as Bershka, that did incur CapEx of around €2 million, but the yield on that CapEx was around 9%. Some other initiatives we're looking at doing, we are looking at buying some space back from the grocers to downsize them and bring some new tenants there.

There's one in particular, it's a cost of around €6 million, the yield there will probably be north of 8%. Then we're also working on—and it's largely tenant-driven because everything we do when it comes to extensions will be pre-let.

We have got some options, like H2O, for example, there is an idea, or at least we do have rights and the ability to extend that mall. A project there will cost around €6 million, the yield will be north of 10%.

This is the types of deals that we're looking at where we do get these attractive returns. This is what we are saying is a more attractive investment destination for capital than buying new centers at low 6s at probably not the quality we would like to be buying at this point in time.

The next question, the tax rate for the distributable income was 2.9% in 1H 2026. What tax rate are you allowing for the FY 2026 guidance, and also where do you expect it to settle in the long term, as well as what tax rate is included when dividends are distributed from Portugal?

We are expecting the average rate for FY 2026 to be around 3.1%. On a stabilized basis, we're expecting it to settle around 4% 4% to 4.5% on the total portfolio.

Then the question around the tax in Portugal, when distributions are made out of Portugal, there's a 10% tax rate applicable to that distribution. The next question then, the Portuguese and Spanish NPI were lower in 1H 2026 than in 2H 2025, and the distributable income guidance suggests that 2H 2026 NPI growth will be good.

Can you give color about seasonality in these portfolios?

We did speak about Portugal earlier and the impact of some of the voids, rent-frees, etc., that are happening there, which won't reappear in the second half of the year. There is seasonality.

A huge amount of the trading Răzvan can probably speak to, but there's a far greater period of sales or the densities of sales are much higher in the second half of the year, especially in Europe you have summer, which is the August months where sales are strong, and then you have the December period as well, obviously then sales are strong as well. If you want to add to that, Răzvan?

Yes, the NPI is mainly driven by the projects and by the tenants closing for sometimes one, two, if it's a large tenant, it will be three months closed for an extension and refurbishment. This is what drives mainly the NPI.

There is seasonality because in the second part of the year, there's back to school in September and then it's the winter holidays, and this would have a small effect on the turnover rents, but I would say it's minor impact on the NPI.

The next question, can you please provide your holdings of NEPI versus Klépierre at period end, comprising the €8.5 million, and has there been any changes post year-end? I can take that one.

The full €8.5 million are NEPI shares. We don't hold any Klépierre shares, and there's been no movement in those shares since reporting period.

The next question, what are your plans to improve the vacancies in France? Are you looking at disposals of any assets that don't fit the strategy of cities with strong economic underpin?

There were two two questions in this regard that I'll just group together.

I think France, what we are seeing in France is an improvement in tenanting from an entrant point of view. France was net losing tenants.

We were seeing a lot of insolvencies, bankruptcies, tenant failures, obviously putting a lot of pressure on the vacancies themselves. What we are seeing is new tenants coming into the market.

We've seen Lefties open in the market, obviously they're a major player and they have got a roll-out plan. We're seeing the likes of Primor, who's a big perfumery operator from Spain, opening in that French market.

We are starting to see that happen, and we are speaking to these tenants to occupy quite meaningful spaces in those French malls, which we think will help the vacancies as well. Maybe Răzvan can speak to Docks 76 is one of the centers where we have got a meaningful vacancy.

There's a repositioning happening there, which I'll let Răzvan speak to, and then we have got some new tenants like New Yorker coming into two of the schemes, again anchoring those centers quite nicely, and I think it will also drive the letting there.

New Yorker entering both Docks 76 and Rivetoile, Strasbourg. We are looking into improving the leisure segment in Docks 76.

We are in discussions with a large tenant to occupy a large part of the first floor, but we will announce it once the leases are signed.

All right. The next question then is, are you still looking to acquire further properties, and in which jurisdiction?

At the moment, we're always looking. We just needed to be at the right sort of asset quality and the right pricing point, which makes sense to us.

For the moment, improving the assets, I think we did speak of some of the projects earlier, the return on capital and the deployment of capital into that for us is better. Not only gives us a yield, it also improves the existing assets and makes them more defensive.

This is where our focus is for now. Again, always assessing.

I think if we do find an opportunity that does make sense, it will probably be Iberia, we would act on it. It's become a competitive market, and as I mentioned earlier, yields have compressed there.

There's two questions remaining. Second-last one, can you provide an update on your solar rollout strategy and the benefits arising?

With regards to solar, it is slightly different to South Africa in terms of the ability to expand on it, and it is quite different to what you see in Eastern Europe by some of the other players there. Our first objective is to provide solar to the common area, that's the easy part.

We've done it, if you look at Iberia, out of our eight centers there, six of them have got solar on the roofs providing energy to the common areas of the mall. There's nice returns on that, it's usually about 15% ROIs plus, because you've got a captive market and sort of a forced off-take.

There's two more malls where we need to roll that out, H2O as well as Girona. Once that's done, we would have achieved the objective of putting solar on the roof that feeds all the common areas, and then we'll start looking towards furthering that, whether it be batteries or selling directly to tenants, but that'll be the next step and probably won't happen for at least the remainder of this year.

Okay. Then what sort of valuation results are you expecting into the full-year results now that the Balcony portfolio has transacted?

Do you expect this to result in cap rate compression across your portfolio?

Yes, there's a few assets other than Balcony that have happened. I think the Balcony portfolio, the disclosed yield, I think from the media, is around that 6.3% level.

It is a very good quality portfolio, it doesn't necessarily mean all assets should trade at 6.3%. Given what's happened, we do believe cap rates will compress slightly from where they were in December.

I think what's a given is the NPIs have increased. We've seen 4%, 5%, 6% growth in our NPIs across the portfolio.

That even if cap rates remain the same, you should be seeing the equivalent growth in valuations without even making assumptions on the cap rate compression.

Then one last question has come in just now. Is there NPI sensitivity to energy costs increases in any of the three countries?

Not for us as the landlords, because I'll caveat the answer now, but all the energy is sort of paid for by the tenants through the service charge. Each tenant has his own meter, and each tenant arranges his own electricity.

When it comes to the service area, that's charged onto the tenants. We as landlords aren't exposed there.

Where you are slightly exposed is where you've got vacancies, I suppose, but it's very minimal.

Yes, but our vacancies are low,

it's

a very small impact.

The indirect risk is affordability of the tenants. If there's a massive spike in energy, the affordability of the tenants to pay higher rentals, become reversions, may reduce slightly, but that's an indirect risk rather than a direct one.

That concludes all the questions.

Okay. Great.

Again, thanks for coming. I know we have got some time booked with a few of you.

Look forward to it, and if there are any other questions, feel free to just drop me an email, or Răzvan or Dawie. Great.

Thank you very much for attending again, and bye.