Morning, everyone. Thank you for joining, and welcome to our 2026 half-year results analyst call.

Today, our CFO and co-CEO, Elke Snijder, will comment on the result presentation published on our website this morning. At the end of the call, you will have the opportunity to ask questions.

For now, I would like to hand over to Elke.

Good morning, everyone. Happy to have you all here on the webcast this morning, and it is my pleasure to guide you through the slides.

Before we get into the half-year results, I want to point your attention to the picture we included here on the front page, as this is the view from Noon, formerly Vitrum, where a couple of weeks ago, we hosted an event for brokers to get a feel for the location and atmosphere, despite it being a full-on construction site as De Rapenburger has commenced there with the constructions. All right.

Now let's move into the presentation. The highlights of the first half of 2026.

As mentioned, we started construction at the Noon site, and we are also progressing the plans with respect to Glass House to the stage that we can say that we are preparing a major repositioning of the asset once KPN leaves the building in Q1 2027. Of course, we also want to update you on leasing, our number one priority for the year, and we'll have a lot of information on that later on in the presentation.

We also announced on June 12th that we decided to discontinue the Well House development. Quite painful for the organization and all involved, from municipality, architects, to construction company, but unfortunately, it had become evident after an extensive feasibility study that the project just was not viable for NSI.

The higher construction cost just outpaced the improving rental prospects. Okay.

Lastly, we are announcing a 5% share buyback. This is an attractive capital allocation given the current discount to NAV.

It delivers immediate shareholder value while preserving capacity for Noon, Glass House, and leaves some flexibility beyond that to benefit from commercial opportunities. Not on the sheet, but something I want to address, that on May 22nd, we announced that Bernd Stahli will step down as CEO after 10 years with the company.

Bernd and the supervisory board concluded that this is the right moment to begin a new chapter of leadership for NSI. An executive search firm has been engaged to lead the search for his successor.

During the transition, Bernd will continue to focus on matters that are currently at play, while I will serve as interim co-CEO next to my CFO duties and focus on the next phase of NSI's development. I am grateful that Bernd will remain with the company during this period, and I highly value his experience, guidance, and support.

All right. This is an overview slide for you with the KPIs, and it highlights immediately why we will talk about vacancies a lot later in this presentation, showing a near double vacancy rate versus H1 2025.

Noticeable is the negative change in like-for-like net rents on the right top side graph, which is driven by vacancy, and that is mostly the impact of Newtonweg in Leiden and Vivaldi II in Amsterdam. Moving on to portfolio performance.

This is a familiar map for you, and it shows you where our 41 assets are. More than half are located in Amsterdam, and you see that we don't have any more assets in Eindhoven, and also Hoofddorp, which we exited over the last year.

Moving on to the next slide, a bit more on our portfolio optimization. We continued our asset rotation plans in early 2026 and sold our one remaining asset in Eindhoven, Hooghestraat.

As you can see, we tend to sell our assets above book value. We are now focusing possible disposals on assets that are less fitting for our portfolio and what we want to deliver to tenants.

An LOI has been signed for our assets at the Arlandaweg, which is currently a school in the Sloterdijk area. This location has, like several other assets in our portfolio, residential potential, and therefore, an LOI has been signed at an attractive price above book.

All right. Now some more deep dives into our vacancy.

Just to remind you what happened there in our portfolio. The first bump that you can see from 2024 to 2025, is due to Vivaldi II, which was returned to us in the fall of 2025, after which we started renovating the ground floor, for less than EUR 1 million in CapEx and prepared the building to be let out, both flexibly and conventionally.

The second step up that you see from 2025 to 2026 Q1 is due to Newtonweg in Leiden, as the single tenant moves to a newer asset in the area. Over the past quarter, so from Q1 to Q2, we have seen improvements.

Some further attention is needed for Vivaldi II, however. Pickup there is slower than envisioned, as it currently stands in the actuals at 11% occupancy.

The pickup has been delayed as there were issues with getting all the materials delivered for the ground floor refurb, but that is now finalized. You can imagine if the ground floor doesn't look very nice, it's harder to get tenants enthusiastic about the building.

Flex space, as of now, is doing quite okay in leasing, but that is all small floor plates. In such a large building, then you need a lot of those smaller tenants.

To further support the leasing of the conventional space also possibly some larger floor spaces, two additional brokers have been engaged recently, and we see traction from that right away as well. We did have to downgrade our assumption for leasing by the end of the year.

We were aiming for 75%+, but we have to be realistic, and we now guide 40%, hopefully plus. Now let me elaborate on the coming slides on some of the positives that we see happening in our leasing.

Okay. Early renewals.

We are proactively addressing the assets with single tenants and have early renewals at these three assets, all into the next decade. Veerhaven in Rotterdam and Archimedesweg 6 and 30 in Leiden.

On the next slide, you can see is that we can relet space when we get it back in a quick turnaround. Some of our tenants, due to circumstances, want to resize.

At Trivium in Amsterdam, we had such a case just this year. Within a short time frame of six months, we were able to relet the substantial space we got back to a great new tenant.

There you can see we got it back, re-leased it, and are back to 100% occupancy at the building in the next quarter. That's how we generally like it.

On to the next slide, of course, I want to tell you a little bit more about Rotterdam Alexander. In February, we opened this asset after a large refurbishment, we told you last time that conventional space is leasing up nicely, but also our flexible offices are doing well with nearly 70% let within four months.

The number on the sheet also underpins why we like flex offices, as contracted rent stands at 2.3x the rent of conventional space, which has been our experience in the HNK locations. That is good news.

Moving to our projects that obviously are supportive of future leasing prospects. First of all, Noon.

At Noon, as mentioned, construction has started, we have a total cost of about EUR 89 million, including entry value and capitalized interest. Total CapEx that we have remaining is a bit over EUR 50 million, which for the most part is the cost of the construction.

We'd like to keep you updated on this down the line as well. Of course, a nice visual on the next slide, a render of what the building will look like, I cannot wait to actually step into it because it's going to look amazing if you ask me.

On the following slide, something else that is going to look amazing, Glass House. As announced, KPN is set to leave the building.

This was to happen per December 1st this year, they will now stay for another two to three months, after which they will vacate the building. Over the past period, the team has worked very hard to come up with the most optimal repositioning.

Our conclusion is that we're going to make something special, reposition as the top asset of Sloterdijk with quality services and sustainability matching the location in excellence. Investments will not be dissimilar per square meter to what we did at Rotterdam Alexander.

Without overdoing or making a South Axis product, it just does not fit the area. To the investment, you have to be mindful that a significant part of the money goes into renewal of technical installations and white boxing.

This renewal of technical installations would have been necessary after the 20-odd years KPN has occupied the building regardless. The rest of the investment is used to boost the experience for the tenants and make the asset stand out.

Think of a covered atrium, connecting bridges, and a third entrance. Moving to the balance sheet.

Portfolio valuations. Overall, for the half year, 2.6%-.

Half of this is attributable to the revaluation of Glass House that got another downwards adjustment. We mapped it out for you on the right side of the slide, you can just see it right there.

Partially, this downgrade of Glass House was due to the lease expiry, with KPN coming closer, but also due to the appraiser having refined its view on the CapEx requirements. The following slide, we also showed you the previous time around to take a closer look at our valuations.

What we illustrate is the development of both market rent, ERV, and asset valuations for our like-for-like portfolio using 2020 as the base year. Over a longer period, you would generally expect that if anticipated rental income increases, the corresponding asset values would rise as well.

However, the chart shows a disconnect over this time frame. While ERV has increased by over 20% across our like-for-like portfolio, valuations have declined by 19% over the same period.

The gap has widened further versus half a year ago. All right.

Briefly show you the next slide. On this sheet, it shows that GRI growth outpaces inflation for us.

On the bottom right, that new lease rentals are outpacing ERV by circa 15% in H1 2025. You can see that we're actually doing quite well versus ERV every time we sign a new lease, generally.

Moving on to sustainability as one of our key strategic pillars. Remains an area where we are truly committed, and we continue to be committed as a leader in the sector.

We assess our progress across multiple indicators, as you know, giving a well-rounded view of our performance. In short summary, is that we are happy about our progress.

Do see that the incremental improvement on CRREM, which is on the left, which we generally take as our main target. Those are looking at improvements in kilowatt hour per square meter per year are getting harder.

It requires both investing in the technical performance of the buildings, which we are continuously doing, but also supporting the tenants in adopting more energy-conscious behavior. Okay.

Bear with me. We're going to step into the financials now.

First slide, familiar slide for you. It shows the bridge from GRI to NRI to EPRA earnings.

A few points stand out. Gross rental dropped significantly as the portfolio is smaller with the disposals, and vacancy is higher due to Newtonweg and Vivaldi II, primarily.

Service costs not recharged increased. This is logical as when you have higher vacancy, it means that a larger share of these costs cannot be passed on to tenants.

You can also see that OpEx is in check. Admin as well.

The increase that is shown is driven by the accrual we had to take considering the CEO transition. Okay.

Now, two bridges for you. The first one looking at EPRA earnings per share.

It bridges H1 2025 to H1 2026 from left to right. Let's talk about the big chunks.

Negative impact of disposals consists of a full year impact of the 2025 disposals, namely Beukenhaven and Hoofddorp per October, Kennedyplein in Eindhoven per December, and the impact of disposal of Hooghestraat in January 2026, also in Eindhoven. GRI, like for like, looks a bit ugly, I have to say.

That is the impact of vacancy. That's really outpaced indexation.

We like to see a plus here because that is then the indexation. Now with the vacancy drop, that's a negative.

As said, service cost not recharged increased due to higher vacancy and OpEx a bit lower and admin a bit higher due to the CEO transition. Next bridge, EPRA NTA per share.

There we go. The net tangible asset value per share from H1 2025 to H1 2026.

Going again from left to right, you can see, the 2025 final dividends that we paid out there of EUR 0.83. We paid that out in the first half of 2026.

I just explained the EUR 0.79 EPRA earnings per share. Impact of the revaluation comes down to €1.34.

We sold Eindhoven asset in 2026. Hooghestraat was sold above book value, hence the result on sales.

Other is the impact of discontinuation of Well House. That overall led to an indirect cost of close to EUR 10 million.

Okay. Two more sheets on the balance sheet.

Also familiar view for you. On the left side of the slide, you see the loan maturity profile.

Varies well staggered schedule. No refinancing needs until 2028.

We did lots of refinancing last year. It also highlights that we still have substantial capacity available on our RCF.

With the completion of the new private placement with MetLife in January. It replaced the Pricoa PP.

We have extended our average debt maturity, as you can see, from 3.6 to 4.2 now. Lastly, on the financials, the balance sheet KPIs.

On the left, you can see that our cost of debt has increased slightly due to the new private placement with MetLife. Obviously, that was priced in a very different base rate environment than the Pricoa private placement that expired in January.

LTV shown on the top right remains comfortably low, well within the bank covenant threshold of 60%, and well within our internal guidance range that we like to look at through the cycle. Okay, last slide for you.

Then, of course, we'll open up for questions. I'm going to talk about the outlook.

Outlook 2026 for the remainder of the year. Focus remains on leasing, our top 1 priority.

We did have to lower our expectations for Vivaldi II this year, but are confident the asset will perform. It just needs some more time.

Noon and Glass House are our large projects with Noon in execution and Glass House in finalization of the plans. For Glass House, I cannot wait to show you the final renders.

The draft renders look amazing. I'm looking forward to showing you what the plans are once they are final and once we are closer to contracting a construction company.

We also have somewhat smaller projects in execution to update the HNK experience. At Houthavens, we are close to done with the investment.

We did a large refurbishment, mainly of the entrance and the central areas, but also new meeting rooms there. It's amazing.

It just looks good. At HNK, it's a central station.

We have started with an upgrade of the central areas, and should deliver late this year. That is actually a high performing HNK location for us.

As we want to keep it that way, we continue to invest. We maintain an interim dividend of EUR 0.75 per share.

As noted, we will also execute a share buyback of up to 5% of total outstanding shares before the end of Q1 2027. Due to the slow leasing progress on Vivaldi II, and we noted that on the right-hand side of this slide, and the one of approval for CEO transition, we lower our EPRA EPS guidance to EUR 1.80 to EUR 1.90 per share from the previous EUR 1.90 to EUR 2.05.

I think that concludes what I wanted to share with you on the slides, and I am handing it back.

Hi. Good morning.

Can you hear me?

Yep.

Okay. Hi.

Thanks for the presentation. A couple of questions.

First on the CEO transition accrual, that's circa EUR 600K in H1. Is that it, or should I annualize that number to EUR 1 million+?

For me, it's easiest to just answer your questions right ahead instead of you asking first all of them and then I have to remember. The accrual that we've taken is in line with the Dutch Corporate Governance Code, the amount that will be passed on to our CEO, but it also includes a small amount already for the search.

It is not, unfortunately, for free to engage an external search headhunter for a CEO of a listed company. We will see some other costs related to the search coming in later quarters, probably all in Q3, but it sort of depends on how the search will progress.

Those will be picked up in our actuals, probably all in Q3.

Okay. Is there an option to count as a non-recurring expense and exclude it from the EPRA earnings?

Under EPRA, we just generally like to show you what our true expenses are, but it is most definitely a one-off.

Okay. All right.

Two more questions. On the early renewed leases, job well done, despite the difficult market.

One asset I think that still has a near-term lease maturity is Uniceflaan in Utrecht. I believe the KVK is a tenant.

Are similar talks going on there to extend that lease? The other question on Newtonweg.

Difficult to lease it up in the current status. If you sell, I assume there has to be a change of zoning for that asset.

How's talks with the municipality going there?

Let me move into that. Uniceflaan, our asset in Utrecht, those talks are ongoing.

No further update there. Newtonweg, actually, I would've loved to been able to tell you that we had a great sale there.

We actually had a conditional sales agreement. The condition was a change in zoning.

We test-drived it with the municipality, as the buyer was interested in converting it. Unfortunately, we did not have a positive attitude of the municipality towards a change in zoning.

At least we test-drived it, and now we know for sure that's not happening in the short term. There we have to explore other options.

Of course, preferred option for now is to lease it up, because then we make money on the asset again. We always look at plan B, and plan B is see whether we can monetize it through a sale.

Maybe one last. Speaking of plan B, Vivaldi II is a bit slower in terms of leasing.

Does it change your view on the CapEx plan that's in place on the building?

Well, leasing has taken longer than expected. We understand the refurbishment of the ground floor has just taken longer than we had hoped for.

Very simply put, because there was a delay in getting the materials delivered. We live in a little bit crazier world sometimes than we like to.

Occupancy is a bit disappointing currently at 11%. That's why I think we also had to be more realistic in our forecast and downgraded it to 40% by year-end.

We did strengthen the leasing team by appointing additional brokers for conventional space. We are happy, even though it's only 11% that we're looking at, the rental levels remain in line with our expectations.

We're not pursuing occupancy at any price. If leasing is slower, and it is slower now than we'd like it to be, we're going to give it another couple of months to really see if we can boost the pickup.

The impact would mainly be timing rather than our long-term view of the assets. Does that answer your question?

Yeah. Perfect.

Thank you very much.

Good. Thanks, Alex.

Yes, good morning. Thank you for the presentation.

Two questions. First one, you disposed an asset for redevelopment into residential.

Could you specify in a bit more detail how many assets or what percentage of the portfolio could be suited for redevelopment into residential? I believe it's mainly focused in the Southeast Amsterdam area.

Is that correct?

Yeah. We have two assets here in the Southeast area that we think the longer term use would be much more logical as residential.

We have one asset, furthermore, in Amsterdam, that is actually currently already being used as student housing, that could be up for a more elaborate conversion to residential as well. Of course, the asset that we sold, or at least where we have a letter of intent was also residential potential.

That's also the reason why we were able to sign an LOI well above book, because that residential potential is in there. I think that is the potential in the portfolio that we're looking at.

Okay, great. Very clear.

Last question, given the pressure that you have on EPS, could you maybe remind us of your dividend policy?

Yep. Because we are an FBI, which is in Dutch, a fiscale beleggingsinstelling.

To remain an FBI, we have to give out 100% of our fiscal result. As a policy, we hand out 75% of our EPRA earnings.

That's a minimum, just to be clear.

Okay. That's clear.

Thank you very much.

Good morning. Thank you very much for the presentation.

Well, most of the questions were already asked, but maybe some small follow-up question or maybe more strategically, because you've highlighted, of course, quite some change, quite some different strategic options in terms of capital allocation discipline. Now you've discontinued Well House earlier this year, as it no longer meets the investment criteria of NSI, while also announcing now a 5% share buyback.

My question is also just how are you currently internally ranking redevelopment, disposals, buyback, maybe as you've also highlighted some asset rotations into different segments. What is the current framework you're currently internally working with?

Thank you.

Yeah, that's a very good question, Vincent. That's of course exactly the question that we are discussing here internally when talking about all of these options.

I do want to emphasize that our strategy will remain as is, also during the CEO transition. Looking at, for example, the share buyback, I think we have to take it serious, as an option for our capital, given the current discount to NAV.

That's why we progress there. It does create immediate shareholder value, which for us is important.

We also have to look at the mid and long term, creating shareholder value for our shareholders. That's why we like the redevelopments that we're doing at our current assets.

We are convinced that we are in the right locations, but we don't always have the quality of assets on that location, which is why we've invested a lot of money in HNK Rotterdam Alexander, but also the smaller investment at Houthavens, but also Utrecht Central Station and the big refurb we're doing now at Noon and upcoming in Glass House. We are convinced there that we can create mid to longer term value for our shareholders, and that's why we also allocate capital there.

As I think you mentioned correctly, Well House just had to be off the table. For us, very unfortunately, it was very painful.

It is something that went a lot of effort of all parties in, but also a lot of money, as you can see from what we had to take out of our indirect results. It just no longer met our return requirements.

Net yields and costs for Well House would have been under 5%, and the risk-reward balance deteriorated further due to that cost inflation really outpacing, indeed improving rental prospects. What we're balancing, yes, we have a framework, and that framework looks at the risk-return balance.

For less risky projects, we are happy with a lower return. For riskier projects, as indeed Well House would have been, we really mandate a higher return, but also like to balance impacting value for shareholders in the short term, but also the mid to long term.

That is something we do continuously.

All right. Thank you very much for that point.

The next question is maybe more on Noon, since it's one of your major redevelopments and maybe one of the key value drivers in the equity story that investors should keep in mind. You now have, of course, the CapEx plan and the development on 2028.

You've highlighted that you are now working with brokers to find leasing and to get, of course, the asset fully let up. The question is, when we look at, of course, it's not the same asset, but Vivaldi II, where you might have been too optimistic at a certain point on occupancy and leasing, how do you see the progress on Noon happening to continue or having any positive leasing sentiment on that asset?

Well, we had the kickoff with the brokers. Of course, I think, for me, the first check was, is there any interest of the brokers?

It was packed, so interest was high. I think it's also a landmark asset that a lot of people know but have never been inside of.

It's very special because it bridges the Prinses Irenestraat, from which you can see actually, you saw that on the picture, our starting picture. You look right onto the south axis, but it is also the entryway into the city.

The location is quite special, and the building is quite special. I think that always helps when tenants look at something special for their employees.

One of the major items for tenants is getting their employees back to the office. Leasing campaign has started.

All I can say is interest is encouraging. We have no pre-lets.

I think we have to be a little bit more advanced in being able to show what it will actually look like when we are expanding the bridge, because we're pushing out both sides of the bridge. We cannot announce any pre-lets there yet.

I always say flowers at the finish line. We're not there yet.

I think everything so far is quite encouraging, both from the broker interest, but also from what we hear from the market.

All right. Fair enough.

My last question, of course, on the hot topic of CEO search. My question is more technical in the sense where, could you please tell me where in the process of searching the new CEO, who will in the end have the final decision in the new CEO?

Will it be the board of directors, main shareholders, or could you give any more information on that front? Thank you.

Yeah, that's for me a very easy answer, because part of the supervisory board is the selection and appointment committee. Those were also the people who, in the end, decided on hiring me two years ago.

They will also be in charge of engaging with the search company, and also deciding on who the new CEO will be.

All right. That's it from me.

Thank you very much.

Yes, good morning, everybody. Indeed, Roy Külter, ABN AMRO-ODDO BHF.

One question from my side. The previous questions were also related to the strategy of the company and capital allocation.

In the answer, I did not hear anything about the LTV of the company. We have seen the LTV move up over the recent years.

The press release says that it will go to roughly 40%, sort of the higher end of the internal range. How comfortable are you in the current cycle to go to the higher end of your range, given that there have still been some negative revaluations in the first half?

On the other hand, we are also seeing some disposals that have a book value. How comfortable are you today with the book values and/or your LTV going to 40%?

That's an interesting question, Roy, because, of course, valuations remain market dependent. We get those done by independent appraisers.

I think they are still hampered by a lack of liquidity. They do not have a lot of benchmarks in the market that they can have a look at.

We can say what we know now. What we know now is that we can see that the remaining portfolio, besides Glass House, only had a step down of about 1%.

We are not seeing the big jumps that we saw, I think, over the past two to three years, going down. We would hope that we are bottoming out, but we have been thinking that, I think, for the last year and a half already.

Also in the hopes for the liquidity in the market picking up and having more reference objects there for the appraisers, but they are just not there. I do see that what we sell, we sell above book value, and that's generally not just a little bit, but sometimes even with a big step up.

That's nice. That also gives me a little bit of comfort with the valuations that we currently have.

Of course, it would be silly to think that we could sell the entire portfolio now for above book value. Incidental assets we can bring to market and do well on.

You asked the question about LTV, how comfortable would you be with a look through LTV of 45% or 40%? Quite still comfortable because our internal guidance is so far away from when we breach external covenants with the banks.

That provides me a lot of comfort as well. In our guidelines, we also have a big buffer towards when we would sort of really get into trouble with our covenants.

That's good. Would we get into trouble, we always have the possibility and the flexibility to look at further assets rotation.

For now, quite comfortable.

Okay. Thank you.

Maybe one clarification question on the Glass House. You're guiding a yield on costs of at least 7%.

That's probably book value plus CapEx to come. Which book value do you use?

Is that 31st of December or 30th of June, basically after the write-down or before the write-down?

That would be the current book value. That's after the write-down.

Yep.

Great. Thank you for that.

Okay. Thank you.

Yeah, I did in front of him. Yep.

Okay.

Very good.

Thanks, Roy.

I think that given that there are no further questions, I would like to thank everyone for listening, and I wish you a pleasant rest of your day. Thank you.