Q2 2026 CPI Property Group SA Earnings Call

September 7, 2026

Speaker #1: Good morning, and welcome to CPI Property Group's webcast covering our financial results for the first half of 2026. This is David Greenbaum, CEO of CPI Property Group.

David Greenbaum: Good morning, and welcome to CPI Property Group's webcast covering our financial results for the H1 2026. This is David Greenbaum, CEO of CPI Property Group. As usual, I am speaking to you today from Prague, where I am joined in the room by a fantastic group of colleagues who have worked very hard to deliver the results that we are presenting today. Please allow me to introduce Pavel Měchura, our CFO, Michal Felcman, Deputy COO and Co-Head of Group M&A, Květa Vojtová, Co-Head of M&A and Head of Transaction Legal, Mindee Lee, Director of Corporate Strategy, Petr Mizera, Head of External Reporting, Markéta Večeřová, Group Head of Real Estate Financing, Martin Matula, our General Counsel, Petra Hajná, Group Sustainability Officer, and Moritz Mayer, who is responsible for capital markets and investor relations.

Speaker #1: As usual, I'm speaking to you today from Prague, where I am joined in the room by a fantastic group of colleagues who have worked very hard to deliver the results that we are presenting today.

Speaker #1: So please allow me to introduce Pavel Mihura, our CFO; Michal Felsman, Deputy COO and Co-Head of Group M&A; Květa Vojtová, Co-Head of M&A and Head of Transaction Legal; Mindy Li, Director of Corporate Strategy; Petr Mizera, Head of External Reporting; Marketa Vetcharova, Group Head of Real Estate Financing; Martin Matula, our General Counsel; Petra Hyna, Group Sustainability Officer; and Moritz Meier, who is responsible for Capital Markets and Investor Relations.

Speaker #1: Stefano Filippi, our Head of Corporate Finance, is also on the line, just not in the room today. After today's presentation, we will be happy to answer your questions about our results for the first half of 2026 and our plans for the rest of the year.

David Greenbaum: Stefano Filippi, our Head of Corporate Finance, is also on the line, just not in the room today. After today's presentation, we will be happy to answer your questions about our results for the H1 2026 and our plans for the rest of the year. As usual, we will do our very best to answer each question, and we have plenty of time. Please use the tool on the webcast to ask your question as we go along. Today, we will be referencing CPIPG's H1 2026 management report, and you should be able to see the relevant pages displayed on the webcast. The same management report is also available on our website, cpipg.com. If you have any technical issues, please reach out to Moritz, even during the call, and we will do our very best to sort it out.

Speaker #1: As usual, we'll do our very best to answer each question, and we have plenty of time. Please use the tool on the webcast to ask your questions as we go along.

Speaker #1: Today, we will be referencing CPI PG's H1 2026 Management Report, and you should be able to see the relevant pages displayed on the webcast.

Speaker #1: The same management report is also available on our website, cpipg.com. If you have any technical issues, please reach out to Moritz—even during the call—and we'll do our very best to sort it out.

Speaker #1: Before we begin, I wanted to talk about why we are here. Why do we do these calls? Why do we put so much effort into the preparation of a 114-page half-year management report with extensive detail on everything we do?

David Greenbaum: Before we begin, I wanted to talk about why we are here. Why do we do these calls? Why do we put so much effort into the preparation of a 114-page half-year management report with extensive detail on everything we do? Well, the answer is obvious. We do it for you, for our fixed income investors, and to some extent, for our banks and other partners. We do it because we are proud of what CPIPG has achieved, and because we prioritize transparency and are open to discuss our challenges. I hope you have come to expect this from us, and we appreciate the dialogue with all of you. During the months of September and October, we will be meeting many of you at various conferences and roadshows arranged by our banks.

Speaker #1: Well, the answer is obvious. We do it for you—for our fixed income investors, and to some extent for our banks and other partners.

Speaker #1: We do it because we are proud of what CPI PG has achieved, and because we prioritize transparency and are open to discussing our challenges.

Speaker #1: I hope you have come to expect this from us, and we appreciate the dialogue with all of you. During the months of September and October, we will be meeting many of you at various conferences and roadshows arranged by our banks.

Speaker #1: CPI PG does not plan to issue any more bonds this year, but we want to make sure that we are available to our bondholders.

David Greenbaum: CPIPG does not plan to issue any more bonds this year, but we want to make sure that we are available to our bondholders. We look forward to that. Well, today, I am in a pretty good mood, and I am sleeping very well at night. There are several reasons why. First, CPIPG's liquidity position. We made huge progress on liquidity during the H1 2026 from a position that was already strong, and we now have liquidity of EUR 1.6 billion, which is sufficient to cover all debt maturities until the Q1 2028, and all unsecured bond maturities until the Q3 2030. We also reduced gross debt by EUR 159 million in the H1. Our undrawn revolving credit facility was upsized to EUR 500 million and extended to March 2030, with nine banks participating.

Speaker #1: So we look forward to that. Well, today, I'm in a pretty good mood, and I'm sleeping very well at night. There are several reasons why.

Speaker #1: First, CPI PG's liquidity position. We made huge progress on liquidity during the first half of 2026, from a position that was already strong. We now have liquidity of €1.6 billion, which is sufficient to cover all debt maturities until the first quarter of 2028 and all unsecured bond maturities until the third quarter of 2030.

Speaker #1: We also reduced gross debt by €159 million in the first half. Our undrawn revolving credit facility was upsized to €500 million and extended to March 2030, with nine banks participating.

Speaker #1: In general, our bank relationships are super strong, which has translated into a very easy time rolling over secured bank loans, as we will describe later.

David Greenbaum: In general, our bank relationships are super strong, which has translated into a very easy time rolling over secured bank loans, as we will describe later. We are quite happy about that. My only complaint is the trading levels of our bonds do not seem to account for the strength of our liquidity. Not yet, at least. Anyhow, strong liquidity gives CPIPG time to focus on three other key objectives, operations, disposals, and corporate simplification. On all three, our team has made very nice progress, which we will describe in more detail today. The key message is we are in a good position. We are focused on what we need to do. Okay. Now we can move on to the real presentation. On page three, do you remember where we began the year?

Speaker #1: So we're quite happy about that. I guess my only complaint is the trading levels of our bonds don't seem to account for the strength of our liquidity— not yet, at least.

Speaker #1: Anyhow, strong liquidity gives CPI PG time to focus on three other key objectives: operations, disposals, and corporate simplification. On all three, our team has made very nice progress, which we will describe in more detail today, but the key message is we are in a good position and we are focused on what we need to do.

Speaker #1: Okay, so now we can move on to the real presentation. On page three, do you remember where we began the year? Well, things were looking reasonably optimistic in European real estate in January and February.

David Greenbaum: Well, things were looking reasonably optimistic in European real estate in January and February. Property markets were stable, transaction activity was picking up, and financing conditions were supportive. The Iran war interrupted that momentum to some degree. Just like we saw in 2022, war pushed interest rates higher and impacted risk appetite. However, the magnitude of the interest rate rise was far less than 2022, and appetite for real estate has not been much affected. In fact, European transaction volume in H1 was up 10% year over year, and our group's disposal program has not been affected either. As Michal will describe later, we are well on track to meet or even exceed our disposal target. We also continue to invest in our real estate portfolio.

Speaker #1: Property markets were stable, transaction activity was picking up, and financing conditions were supportive. The Iran war interrupted that momentum to some degree. Just like we saw in 2022, war pushed interest rates higher and impacted risk appetite.

Speaker #1: However, the magnitude of the interest rate rise was far less than in 2022, and appetite for real estate has not been much affected. In fact, European transaction volume in H1 was up 10% year over year, and our group's disposal program has not been affected either.

Speaker #1: As Michal will describe later, we are well on track to meet—or even exceed—our disposal target. We also continue to invest in our real estate portfolio.

Speaker #1: So, we're watching interest rates, but back to the liquidity point, we simply do not have much refinancing—at least in senior unsecured—over the next three years.

David Greenbaum: We are watching interest rates, but back to the liquidity point, we simply do not have much refinancing, at least in senior unsecured over the next three years. On the secured financing, tighter margins because of intense competition among banks is helping to offset higher rates to some degree. So far, we have also not seen any direct effect of higher rates on valuations. Okay, time for some numbers on page four. CPIPG's total assets were EUR 19.9 billion as of H1 2026, and our property portfolio was EUR 17.5 billion. Consolidated leverage was 49.3%, and net ICR was 2.2 times, both unchanged from year-end, and contracted gross rent was EUR 902 million. Consolidated adjusted EBITDA was EUR 341 million, and FFO was EUR 145 million lower relative to H1 2025, reflecting the impact of our disposal program, which included both yielding and non-yielding assets.

Speaker #1: On the secured financing, tighter margins because of intense competition among banks are helping to offset higher rates to some degree. So far, we've also not seen any direct effect of higher rates on valuations.

Speaker #1: Okay, time for some numbers on page four. CPI PG's total assets were €19.9 billion as of H1 2026, and our property portfolio was €17.5 billion.

Speaker #1: Consolidated leverage was 49.3%, and net ICR was 2.2 times, both unchanged from year-end, and contracted gross rent was €902 million. Consolidated adjusted EBITDA was €341 million, and FFO was €145 million, lower relative to H1 2025, reflecting the impact of our disposal program, which included both yielding and non-yielding assets.

Speaker #1: With the completion of developments to hold and developments to sell next year, we hope to stabilize our income metrics while reducing gross leverage in a more meaningful way.

David Greenbaum: With the completion of developments to hold and developments to sale next year, we hope to stabilize our income metrics while reducing gross leverage in a more meaningful way. Occupancy was 92.4%, slightly below the 93.3% we had at year-end, but up slightly year over year, and like-for-like rental growth was 2.1%. Overall, valuations were stable, but it is worth mentioning that we proactively revalued some residential assets down in the UK and UAE and up in the Czech Republic due to significant developments in those markets. On page five, diversification remains a key aspect of CPIPG's strategy. At times, new investors have told me this makes our portfolio harder to understand. That might be true, but what I have also found over the years is when investors really take time to analyze our segments and what we are doing, they see the benefits of this strategy.

Speaker #1: Occupancy was 92.4%, slightly below the 93.3% we had at year-end, but up slightly year over year, and like-for-like rental growth was 2.1%. Overall, valuations were stable, but it's worth mentioning that we proactively revalued some residential assets down in the UK and UAE, and up in the Czech Republic due to significant developments in those markets.

Speaker #1: On page five, diversification remains a key aspect of CPI PG's strategy. At times, new investors have told me this makes our portfolio harder to understand.

Speaker #1: That might be true, but what I've also found over the years is that when investors really take the time to analyze our segments and what we are doing, they see the benefits of this strategy.

Speaker #1: Offices remain our largest segment, and we are still very happy with CEE capital cities. Warsaw, Prague, Bucharest, and Vienna are doing well. Budapest is improving post-election, and leasing activity in Berlin is picking up to a significant degree.

David Greenbaum: Offices remain our largest segment, and we are still super happy with CEE capital cities. Warsaw, Prague, Bucharest, and Vienna are doing well. Budapest is improving post-election, and leasing activity in Berlin is picking up to a significant degree. Retail is in excellent shape due to low density of retail across the CEE region. We have a market-leading network of retail parks and shopping centers, and due to our scale, the group has excellent relationships with tenants, and we are a preferred partner for new tenants entering a market. This is a segment where we continue to invest. We are happy with our hotel investments in CEE, where we continue to expand as an owner/operator, and residential has been part of our business since the 1990s. Complementary assets, mostly land and development, are also core to our strategy, going back to our origins as a family company.

Speaker #1: Retail is in excellent shape due to the low density of retail across the CEE region. We have a market-leading network of retail parks and shopping centers, and due to our scale, the Group has excellent relationships with tenants. We are a preferred partner for new tenants entering a market.

Speaker #1: This is a segment where we continue to invest. We're happy with our hotel investments in CEE, where we continue to expand as an owner-operator, and residential has been part of our business since the 1990s.

Speaker #1: Complementary assets, mostly land and development, are also core to our strategy, going back to our origins as a family company. CPI PG thinks in long-term horizons, and we have made some excellent returns over a long period of time in both land and development.

David Greenbaum: CPIPG thinks in long-term horizons, and we have made some excellent returns over a long period of time in both land and development. Considering today's higher financing cost environment, development is increasingly important as a source of higher yields and higher returns, and as I mentioned earlier, central to our overall strategy around debt reduction and improving our credit metrics. On page 6, I have covered some of this, but just a few more important points on strategy. I already touched high level and operations, but disposals are another big part of our story. Today, disposals are not only about reducing leverage for our group. That might have been the case in past years, when CPIPG had more short-term debt to repay and capital markets were closed. But today, we see disposals as a major engine of progress for the group.

Speaker #1: Considering today's higher financing cost environment, development is increasingly important as a source of higher yields and higher returns, and, as I mentioned earlier, central to our overall strategy around debt reduction and improving our credit metrics.

Speaker #1: On page six, I've covered some of this, but just a few more important points on strategy. I already touched on high-level and operations, but disposals are another big part of our story.

Speaker #1: Today, disposals are not only about reducing leverage for our group. That might have been the case in past years, when CPI PG had more short-term debt to repay and capital markets were closed, but today, we see disposals as a major engine of progress for the group.

Speaker #1: Disposals allow CPI PG to reshape our portfolio, to focus on our best assets, and to invest in places which bring better returns. We have signed or closed 542 million euros of disposals this year, and we made 155 million euros of acquisitions and spent 226 million euros on capex and development.

David Greenbaum: Disposals allow CPIPG to reshape our portfolio to focus on our best assets and to invest in places which bring better returns. We have signed or closed EUR 542 million of disposals this year, and we made EUR 155 million of acquisitions and spent EUR 226 million on CapEx and development. The H1 was also particularly active from a financing perspective. We completed EUR 1.4 billion of financing during H1 and EUR 2.3 billion year to date. As a result, you should not expect to see us in the bond markets anytime again soon. Gross debt came down by EUR 159 million during the half, and liquidity increased to EUR 1.6 billion, as I mentioned earlier. Also, I want to flag that during our last investor call in April, many of you asked about our hybrid that was callable beginning in July.

Speaker #1: The first half was also particularly active from a financing perspective. We completed €1.4 billion of financing during H1, and €2.3 billion year to date.

Speaker #1: As a result, you should not expect to see us in the bond markets again anytime soon. Gross debt came down by €159 million during the half, and liquidity increased to €1.6 billion, as I mentioned earlier.

Speaker #1: Also, I want to flag that during our last investor call in April, many of you asked about our hybrid that was callable beginning in July.

Speaker #1: As promised, we addressed the hybrid through a tender offer and new issue, replacing the old-style hybrid with our new Type A structure. We now have only one remaining old-style hybrid due in 2028, and we will look to address that bond either in 2028 or even sooner if the opportunity presents itself.

David Greenbaum: As promised, we addressed the hybrid through a tender offer and new issue, replacing the old style hybrid with our new Type A structure. We now have only one remaining old style hybrid due in 2028, and we will look to address that bond either in 2028 or even sooner if the opportunity presents itself. As I mentioned earlier, consolidated leverage was stable at 49.3%, and net ICR was at 2.2 times. I know these are two numbers that many of you focus on, and I will just be straightforward about it. Neither ratio is where we want it to be, but we believe time and patience as we execute our strategy will bring results, particularly from 2027 as proceeds from development start to come in. We made solid progress on corporate simplification in the H1.

Speaker #1: As I mentioned earlier, consolidated leverage was stable at 49.3%, and net ICR was at 2.2 times. I know these are two numbers that many of you focus on, and I'll just be straightforward about it.

Speaker #1: Neither ratio is where we want it to be, but we believe time and patience, as we execute our strategy, will bring results—particularly from 2027, as proceeds from developments start to come in.

Speaker #1: We made solid progress on corporate simplification in the first half. We completed the squeeze-out of Next Three in Italy, and as most of you have seen, we are doing some internal reorganization to streamline how real estate assets are managed and pulled together, such as the recent announcement that CPI PG and our subsidiary CPI Europe would explore combining our retail assets into a dedicated retail platform.

David Greenbaum: We completed the squeeze-out of Next3 in Italy. As most of you have seen, we are doing some internal reorganization to streamline how real estate assets are managed and pooled together, such as the recent announcement that CPIPG and our subsidiary, CPI Europe, would explore combining our retail assets into a dedicated retail platform. Our ratings are stable at Moody's and S&P. I hope they can see the wisdom of our strategy and how many steps we are taking to improve our group's prospects for the future. We were upgraded by MSCI on the ESG rating, going from triple B to A during H1. I was really happy about this one because we have been doing so much on the governance and environmental side.

Speaker #1: Our ratings are stable at Moody's and S&P, and I hope they can see the wisdom of our strategy and how many steps we are taking to improve our group's prospects for the future.

Speaker #1: We were upgraded by MSCI on the ESG rating, going from BBB to A during H1. I was really happy about this one because we've been doing so much on the governance and environmental side.

Speaker #1: On page seven, just to mention that our portfolio's EPRA topped-up net initial yield is now up to 5.8%, a full percentage point increase since 2022.

David Greenbaum: On page 7, just to mention that our portfolio's EPRA topped up net initial yield is now up to 5.8%, a full percentage point increase since 2022. On page 8, I already mentioned all of our financing. We repaid a lot of short-term bonds with our recent issues in sterling, euros, and Swiss francs. As you can see in the chart on the bottom right-hand side, our liquidity of EUR 1.6 billion is sufficient to cover all of our debt maturities through the first quarter of 2028 and our unsecured bond maturities through the third quarter of 2030. As I mentioned earlier, we also increased and extended our revolving credit facility to EUR 500 million, running through to March 2030, with Citibank and JP Morgan joining us as new lenders, which we are really, really happy about and really welcome them to our bank group.

Speaker #1: On page eight, I already mentioned all of our financing, and we repaid a lot of short-term bonds with our recent issues in sterling, euros, and Swiss francs.

Speaker #1: As you can see in the chart on the bottom right-hand side, our liquidity of €1.6 billion is sufficient to cover all of our debt maturities through the first quarter of 2028, and our unsecured bond maturities through the third quarter of 2030.

Speaker #1: As I mentioned earlier, we also increased and extended our revolving credit facility to $500 million, running through to March 2030, with Citibank and JPMorgan joining us as new lenders. We're really, really happy about it and really welcome them to our bank group.

Speaker #1: Anticipating questions about the impact of higher rates, let me remind you that 96% of our debt is fixed. That also means our near-term sensitivity to movements in market rates is limited.

David Greenbaum: Anticipating questions about the impact of higher rates, let me remind you that 96% of our debt is fixed. That also means our near-term sensitivity to movements in market rates is limited. For example, even a 100 basis points increase in market rates would increase the average cost of our existing debt from 3.73% to only around 3.77%, so about four basis points based on our current hedging profile. The more relevant sensitivity over time is refinancing fixed rate debt as it matures.

Speaker #1: For example, even a 100 basis point increase in market rates would increase the average cost of our existing debt from 3.73% to only around 3.77%, so about four basis points, based on our current hedging profile.

Speaker #1: The more relevant sensitivity over time is refinancing fixed-rate debt as it matures, but our business plan already assumes refinancing at current expected market rates.

Pavel Měchura: Our business plan already assumes refinancing at current expected market rates. Our average cost of debt at 3.73% was an increase of about 10 basis points as we took on some higher cost debt in order to strengthen liquidity for years to come. Now let me hand it over to Michal to give you more information on disposals. Michal.

David Greenbaum: Our business plan already assumes refinancing at current expected market rates. Our average cost of debt at 3.73% was an increase of about 10 basis points as we took on some higher cost debt in order to strengthen liquidity for years to come. Now let me hand it over to Michal to give you more information on disposals. Michal.

Speaker #1: Our average cost of debt at 3.73% was an increase of about 10 basis points, as we took on some higher-cost debt in order to strengthen liquidity for years to come.

Speaker #1: Now, let me hand it over to Michal to give you more information on disposals. Michal?

Speaker #2: Thank you, David. I'm now on page nine. As David mentioned, we have closed or signed €542 million of disposals this year, including two large transactions that each exceeded €100 million.

Michal Felcman: Thank you, David. I am now on page 9. As David mentioned, we have closed or signed EUR 542 million of disposals this year, including two large transactions that each exceeded EUR 100 million. The price of all the deals together is 5% above their book value. I trust that this is a good reflection of investors' appetite across our region, including larger transactions and bigger institutional investors participating in the deal. The majority of disposals have been office or retail assets. We also sold a meaningful amount of non-yielding land bank, representing 22% of total divestments this year. The most significant portion of this was the remaining land bank located in Bubny in central Prague.

Speaker #2: The price of all the deals together is 5% above their book value. I trust that this is a good reflection of investors' appetite across our region, including larger transactions and bigger institutional investors participating in the deal.

Speaker #2: The majority of disposals have been office or retail assets. We also sold a meaningful amount of non-yielding Goldbank, representing 22% of total divestments this year.

Speaker #2: The most significant portion of this was the remaining land bank located in Bubny, in central Prague. Our divestment strategy is focused on four categories: assets that are non-core by location or quality, non-yielding land bank, assets with limited future upside, or assets which are mature, fully priced, where we can receive attractive offers.

Michal Felcman: Our divestment strategy is focused on four categories: assets that are non-core by location or quality, non-yielding land bank, assets with limited future upside, or assets which are mature, fully priced, where we can receive attractive offers. Our total disposal pipeline now exceeds EUR 2 billion, with more than EUR 330 million currently under signed LOI or in advanced stage of due diligence. This means we expect to reach upper end of our target for this year, which was between EUR 500 and EUR 750 million. Our disposals are expected to combine both small and large assets from our portfolio. The average value of our 500 commercial properties is around EUR 36 million, which is a size that suits many local investors. On the other hand, we are also looking at the sale of large assets or portfolios which characteristics fit into one or more of the four categories.

Speaker #2: Our total disposal pipeline now exceeds €2 billion, with more than €330 million currently under signed LOI or in advanced stages of due diligence.

Speaker #2: This means we expect to reach the upper end of our target for this year, which was between €500 and €750 million. Our disposals are expected to combine both small and large assets from our portfolio.

Speaker #2: The average value of our 500 commercial properties is around €36 million, which is a size that suits many local investors. On the other hand, we are also looking at the sale of large assets or portfolios whose characteristics fit into one or more of the four categories.

Speaker #2: After all the divestments, the overall goal is to remain with a portfolio of buildings that deliver high yield, are of good quality, with sustainable rental income and effective operation.

Michal Felcman: After all the divestments, the overall goal is to remain with portfolio of buildings that deliver high yield, are of a good quality, with sustainable rental income and effective operation. Now I will turn the floor over to Pavel.

Speaker #2: And now, I will turn the floor over to Pavel.

Speaker #3: Thank you, Michal. I am now on page 11, and I will start going deeper into the figures. Net rental income declined by 5% to €375 million, reflecting our disposals.

Pavel Měchura: Thank you, Michal. I am now on page 11, and I will start going deeper into the figures. Net rental income declined by 5% to EUR 375 million, reflecting our disposals. Net business income declined by 7% because of lower hotel income. That was mainly due to the sale of our Marriott hotel in Vienna and Budapest last year. At the same time, we reduced our administrative expenses by 4% to EUR 57 million, continuing our cost discipline. The difference in net profit is mainly driven by our very slightly negative valuation result versus valuation gains in H1 2025. Our property portfolio declined by about 2% as we continue to sell office, retail, and residential assets. As a result, our total commercial assets declined from 510 to 498. Our total hotel rooms increased due to the completed hotel developments in Brno, Czech Republic, and Budapest.

Speaker #3: Net business income declined by 7% because of lower hotel income. This was mainly due to the sale of our Marriott hotels in Vienna and Budapest last year.

Speaker #3: At the same time, we reduced our administrative expenses by 4% to €57 million, continuing our cost discipline. The difference in net profit is mainly driven by our very slightly negative valuation result versus a valuation gain in H1 2025.

Speaker #3: Our property portfolio declined by about 2% as we continue to sell office, retail, and residential assets. As a result, our total commercial assets declined from 510 to 49,098.

Speaker #3: Our total hotel rooms increased due to the completed hotel developments in Brno, Czech Republic, and Budapest. The decline in equity is mainly driven by our distributions via share buyback in Q1 2026.

Pavel Měchura: The decline in equity is mainly driven by our distribution via share buyback in Q1 2026. CPIPG did not make any distributions during 2025, and our distribution this year was equivalent to 42% of our 2024 FFO 1, so below our target of 50% of FFO 1. In fact, the target itself was reduced from 65% just last year. Our net debt declined by EUR 270 million. As David mentioned, key credit metrics such as consolidated leverage at 49.3%, net debt to EBITDA at 12.7x, and our interest coverage ratio at 2.2x were unchanged during the H1. Improving these metrics meaningfully is going to take time. It requires selling more of our non-yielding land bank and development assets, which is exactly where our disposals are focused right now. We have to continue to reduce our costs, and we should see our income-generating investment add to the top line.

Speaker #3: CPI PG did not make any distributions during 2025, and our distribution this year was equivalent to 42% of our 2024 SFO1—so below our target of 50% of SFO1.

Speaker #3: In fact, the target itself was reduced from 65% just last year. Our net debt declined by €270 million, as David mentioned. Key credit metrics such as consolidated leverage at 49.3%, net debt to EBITDA at 12.7 times, and our interest coverage ratio at 2.2 times were unchanged during the third quarter.

Speaker #3: Improving these metrics meaningfully is going to take time. It requires selling more of our non-yielding gold bank and development assets, which is exactly where our disposals are focused right now.

Speaker #3: We have to continue to reduce our costs, and we should see our income-generating investment go up to the top line. We see 2027 as the year when you should start to see this benefit in our numbers.

Pavel Měchura: We see 2027 as the year when we should start to see this benefit our numbers. On the balance sheet, secured leverage increased slightly to 24%, and the secured share of total debt rose to 48.8%, largely due to the bond repayments and tenders we executed during the half. We still maintain a healthy balance between secured and unsecured financing, with unencumbered assets covering unsecured debt at 178%, slightly below year-end, but still comfortable.

Speaker #3: On the balance sheet, secured leverage increased slightly to 24%, and the secured share of total debt rose to 40.8%, largely due to the bond repayment and tenders we executed during the half.

Speaker #3: We still maintain a healthy balance between secured and unsecured financing, with unencumbered assets covering unsecured debts at 178%—slightly below year-end, but still profitable.

Speaker #3: Going forward, I would expect the share of unsecured and secured debt to fluctuate 50/50. We will repay some unsecured debt, particularly the legacy Immofinanz bonds in Austria, while also repaying secured loans alongside disposals, and through the completion and sale of our development.

Pavel Měchura: Going forward, I would expect the share of unsecured and secured debt to fluctuate 50/50. We will repay some unsecured debt, particularly the legacy S IMMO retail bonds in Austria, while also repaying secured loans alongside disposals and through the completion and sale of development. I will turn the floor back to David to walk through the real estate portfolio in more detail. David?

Speaker #3: Now, I will turn the floor back to David to walk through the real estate portfolio in more detail. David?

Speaker #1: Thank you very much, Pavel. I'm now on page 14, starting with offices. We continue to believe strongly in capital city offices across the CEE region, where limited new supply in most cities keeps working in favor of existing landlords like CPI PG.

David Greenbaum: Thank you very much, Pavel. I am now on page 14, starting with offices. We continue to believe strongly in capital city offices across the CEE region, where limited new supply in most cities keeps working in favor of existing landlords like CPIPG. Office occupancy was 88.3% at H1, essentially flat year-on-year, but a touch below year-end as occupancy simply fluctuated across individual cities. Net rental income declined 3.8% to EUR 188 million, reflecting our disposals. We sold four office properties in the H1, so we now have 138 office properties. On a like-for-like basis, the picture is more encouraging. We still have positive rent reversion potential of 11% across our key cities, and our multi-tenant buildings are attractively priced relative to the market. On page 16, Berlin remains our largest office platform, valued at EUR 2.4 billion across roughly 900,000 square meters and 42 properties.

Speaker #1: Office occupancy was 88.3% at H1, essentially flat year-on-year but a touch below year-end, as occupancy simply fluctuated across individual cities. Net rental income declined 3.8% to €188 million, reflecting our disposals.

Speaker #1: We sold four office properties in the first half, so we now have 138 office properties. On a like-for-like basis, the picture is more encouraging.

Speaker #1: We still have positive rent reversion potential of 11% across our key cities, and our multi-tenant buildings are attractively priced relative to the market. On page 16, Berlin remains our largest office platform, valued at €2.4 billion across roughly 900,000 square meters and 42 properties.

Speaker #1: The German economic recovery remains gradual, but Berlin continues to be the number one city for startups in the country, with startup funding increasing by 14% year-on-year in H1. The Berlin office market actually saw a 46% jump in take-up versus a year ago.

David Greenbaum: The German economic recovery remains gradual, but Berlin continues to be the number one city for startups in the country, with startup funding increasing by 14% year-on-year in H1. The Berlin office market actually saw a 46% jump in take-up versus a year ago. Our portfolio's average rent rose again to EUR 11.68 per square meter, still well below the Berlin market average of roughly EUR 26, which is precisely why our leasing volume has stayed strong even as occupancy in the mid-80s takes a bit longer to recover. We finished two small developments, Julius, which is fully leased, and Frames, which is being progressively leased up. We continue to find creative alternative uses such as commercial living, Limehome, schools, and gyms.

Speaker #1: Our portfolio's average rent rose again to €11.68 per square meter, still well below the Berlin market average of roughly €26.

Speaker #1: Which is precisely why our leasing volume has stayed strong, even as occupancy in the mid-80s takes a bit longer to recover. We finished two small developments: Julius, which is fully leased, and Frames, which is being progressively leased up. We continue to find creative alternative uses such as commercial living, Limehome, schools, and gyms.

Speaker #1: Page 19, Warsaw, where our portfolio of €1.6 billion means we're still the top owner of offices in the city, and we're really happy with how the portfolio is performing.

David Greenbaum: Page 19, Warsaw, where our portfolio of EUR 1.6 billion means we are still the top owner of offices in the city, and we are really happy with how the portfolio is performing. Warsaw is still the center of gravity in Poland, and new construction is limited, but I also believe our team on the ground is making a big difference. Occupancy in our portfolio of 95.8% compares to a market average around 91.5%. Net rental income grew 3.3%, and we signed more than 35,000 square meters of leases in the first half, two-thirds of which were renewals with existing tenants, always a good sign of tenant satisfaction. Warsaw's vacancy rate continued to fall, down to 8.5% on the back of limited new supply, and prime rents reached a new high of EUR 28.50 per square meter. Page 22, Prague.

Speaker #1: Warsaw is still the center of gravity in Poland, and new construction is limited. But I also believe our team on the ground is making a big difference.

Speaker #1: Occupancy in our portfolio of 95.8% compares to a market average of around 91.5%. Net rental income grew by 3.3%, and we signed more than 35,000 square meters of leases in the first half, two-thirds of which were renewals with existing tenants—always a good sign of tenant satisfaction.

Speaker #1: Warsaw's vacancy rate continued to fall, down to 8.5%, on the back of limited new supply, and prime rents reached a new high of €28.50 per square meter.

Speaker #1: Page 22, Prague—our portfolio declined to €768 million, as we sold three low-yielding office buildings above book value during the half. As a result, net rental income decreased to €22 million.

David Greenbaum: Our portfolio declined to EUR 768 million as we sold three low-yielding office buildings above book value during the half. As a result, net rental income decreased to EUR 22 million. Like-for-like rental growth was solid at 2.3%, and occupancy was high at 95%. Prague office market vacancy fell to 5.8%, basically back to pre-COVID levels, and new supply remains genuinely scarce. Page 25, Budapest is seeing a gradual recovery, with occupancy now at 87.3% and net rental income increasing to EUR 29 million. We had a strong leasing result in the first half, with more than 39,000 square meters signed, representing about 18% of the entire market activity. One of the stories in Budapest office over the last few years was the government's effort to move state-owned and state-linked tenants into state-owned office buildings.

Speaker #1: Like-for-like rental growth was solid at 2.3%, and occupancy was high at 95%. Prague office market vacancy fell to 5.8%, basically back to pre-COVID levels, and new supply remains genuinely scarce.

Speaker #1: Budapest is seeing a gradual recovery, with occupancy now at 87.3%, and net rental income increasing to €29 million. We had a strong leasing result in the first half, with more than 39,000 square meters signed, representing about 18% of the entire market activity.

Speaker #1: One of the stories in the Budapest office over the last few years was the government's effort to move state-owned and state-linked tenants into state-owned office buildings.

Speaker #1: This would have presented a real challenge to CPI PG, with 36% of our tenants falling into this category. The good news is, under the new government, we are seeing our state tenants extending their leases, and in general, we are seeing renewed interest in Hungary from potential tenants across office and retail as well.

David Greenbaum: This would have presented a real challenge to CPIPG, with 36% of our tenants falling into this category. The good news is, under the new government, we are seeing our state tenants extending their leases, and in general, we are seeing renewed interest in Hungary from potential tenants across office and retail as well. On page 27, Bucharest, where CPIPG is one of the largest owners of offices in the city, both directly and indirectly through our investment in Globalworth. Occupancy improved to 91%, above the market, supported by a healthy weighted average lease term of 5.6 years, much of that reflecting long leases that we have signed with hospitals and clinics, a niche that we have really developed in recent years. Net rental income declined to EUR 15 million, reflecting our disposals, rental adjustments, and some owner cost impact.

Speaker #1: On page 27, Bucharest, where CPI PG is one of the largest owners of offices in the city, both directly and indirectly through our investment in Globalworth.

Speaker #1: Occupancy improved to 91%, above the market, supported by a healthy weighted average lease term of 5.6 years—much of that reflecting long leases that we have signed with hospitals and clinics, a niche that we have really developed in recent years.

Speaker #1: Net rental income declined to €15 million, reflecting our disposals' rental adjustments and some owner cost impact. Romania is a market we still love and believe in, but Romania will also face some interesting times ahead with austerity measures, including higher VAT and dividend taxes. However, we are optimistic about the economy going forward.

David Greenbaum: Romania is a market we still love and believe in. Romania will also face some interesting times ahead with austerity measures, including higher VAT and dividend taxes. We are optimistic about the economy going forward. Romania just keeps moving forward. It is a young and hungry population, and you can really feel the buzz in Bucharest. Moving on to retail on page 29. CPIPG is one of the largest retail landlords in CEE, and this segment continues to be a bright spot. Occupancy of 98%, effectively full, and like-for-like rental growth of 2.2%. Net rental income rose to EUR 190 million. The Czech Republic remains our largest retail market by far, followed by Romania, Poland, Italy, and Hungary. We continue to add scale through development, such as retail parks in Croatia and Serbia, while selectively disposing of non-core assets, including the sale of two retail parks in Italy.

Speaker #1: Romania just keeps moving forward. It's a young and hungry population, and you can really feel the buzz in Bucharest. Moving on to retail, on page 29, CPI PG is one of the largest retail landlords in CEE, and this segment continues to be a bright spot.

Speaker #1: Occupancy of 98%—effectively full—and like-for-like rental growth of 2.2%. Net rental income rose to €190 million. The Czech Republic remains our largest retail market by far, followed by Romania, Poland, Italy, and Hungary.

Speaker #1: We continue to add scale through development, such as retail parks in Croatia and Serbia, while selectively disposing of non-core assets, including the sale of two retail parks in Italy.

Speaker #1: The refurbishment of our flagship Sun Plaza in Bucharest is nearly complete, with 99% of leases already signed, which should provide a nice uplift to rental income.

David Greenbaum: The refurbishment of our flagship Sun Plaza in Bucharest is nearly complete, with 99% of leases already signed, which should provide a nice uplift to rental income. Our scale continues to make us the first call for retailers expanding across the CEE region, and we are seeing that translate into multi-location leases with both existing and new international brands entering our core markets. Turning briefly to residential on page 36. Residential is 7% of our total portfolio, of which 82% is located in the Czech Republic, where we are the second-largest residential landlord in the country. Like-for-like rental growth was super strong at 10.1%, reflecting the ongoing housing shortage across the region. Occupancy in the Czech portfolio was steady at just over 90%. We continued opportunistic disposals of remaining assets in France and the UK, plus selective sales of Czech units at attractive pricing.

Speaker #1: Our scale continues to make us the first call for retailers expanding across the CEE region, and we're seeing that translate into multi-location leases with both existing and new international brands entering our core markets.

Speaker #1: Turning briefly to residential on page 36: residential is 7% of our total portfolio, of which 82% is located in the Czech Republic, where we are the second-largest residential landlord in the country.

Speaker #1: Like-for-like rental growth was super strong at 10.1%, reflecting the ongoing housing shortage across the region. Occupancy in the Czech portfolio was steady at just over 90%.

Speaker #1: We continued opportunistic disposals of remaining assets in France and the UK, plus selective sales of Czech units at attractive pricing. This is part of the reason you'll continue to see the absolute size of this segment shrink, even as underlying rental growth remains robust.

David Greenbaum: Part of the reason you will continue to see the absolute size of this segment shrink even as underlying rental growth remains robust. Now, I will pause for a moment and hand the floor over to Mindy. Mindy?

Speaker #1: Now, I will pause for a moment and hand the floor over to Mindy. Mindy?

Speaker #2: Thank you, David. I'm now on page 39. CPI PG owns one of the largest hotel platforms in the CEE region, primarily congress and convention hotels in capital cities.

Mindee Lee: Thank you, David. I am now on page 39. CPIPG owns one of the largest hotel platforms in the CEE region, primarily congress and convention hotels in capital cities. The segment continues to add diversification and yield to our overall portfolio. Performance was resilient in H1, with occupancy at 60.3% and an average daily rate of EUR 89.9. Gross operating profit margins held stable at 32.6%, which is a genuinely good result given we are still absorbing pre-opening costs and ramp-up expenses from three new hotels we opened in Budapest and Brno. The new hotels added 350 rooms to our total, which now stands at 4,701 rooms and contributed an additional EUR 1 million of gross operating profit this H1. Furthermore, we saw particularly strong RevPAR growth between 6% and 15% in Rome, Bratislava, Warsaw, and Vienna.

Speaker #2: The segment continues to add diversification and yield to our overall portfolio. Performance was resilient in the first half, with occupancy at 60.3% and an average daily rate of €89.9.

Speaker #2: Gross operating profit margins held stable at 32.6%, which is a genuinely good result given we're still absorbing pre-opening costs and ramp-up expenses from the three new hotels we opened in Budapest and Brno.

Speaker #2: The new hotels added €350,000 to our total, which now stands at 4,701 rooms, and contributed an additional €1 million of gross operating profit in the first half.

Speaker #2: Furthermore, we saw particularly strong RevPAR growth, between 6 and 15 percent, in Rome, Bratislava, Warsaw, and Vienna. Reported net hotel income declined sharply to €2 million from €11 million, but as Pavel mentioned, that's entirely the mechanical effect of the Marriott sales in Vienna and Budapest that closed in 2025.

Mindee Lee: Reported net hotel income declined sharply to EUR 2 million from EUR 11 million, but as Pavel mentioned, that is entirely the mechanical effect of the Marriott sale in Vienna and Budapest that closed in 2025. This is the last period you will see that year-on-year distortion. We also secured attractive new financing this H1, a EUR 117 million loan against a portfolio of Czech hotel properties that matures in 2031 with Raiffeisen Bank International. This reflects continued strong bank appetite for hospitality assets. We are also progressing on the sale of 2 small non-core hotels, which we expect to close later this year. Continuing on to page 42. Complementary assets, which is mostly land bank and development. As David mentioned earlier, land has always been part of our group's DNA, and this segment is where a lot of our future value creation sits.

Speaker #2: This is the last period you'll see that year-on-year distortion. We also secured attractive new financing this half: a €117 million loan against a portfolio of Czech hotel properties.

Speaker #2: That matures in 2031 with Raiffeisen Bank International. This reflects continued strong bank appetite for hospitality assets. We are also progressing on the sale of two small non-core hotels, which we expect to close later this year.

Speaker #2: Continuing on to page 42, complementary assets, which is mostly land bank and development. As David mentioned earlier, land has always been part of our group's DNA, and this segment is where a lot of our future value creation sits.

Speaker #2: We have seven projects currently under construction at an average expected yield on cost above 7%, with pre-letting already close to 90%. We completed the development of three retail parks, two offices, and a hotel during the first half of 2026, at a yield, or yield on cost, above 6%.

Mindee Lee: We have 7 projects currently under construction at an average expected yield on cost above 7%, with pre-letting already close to 90%. We completed the development of 3 retail parks, 2 offices, and a hotel during this H1 2026 at a yield on cost above 6%. Development sales were modest this H1, just EUR 5 million, but that reflects timing more than anything. We expect a substantial step-up starting from 2027 when part of the residential developments for sale will be completed. Moritz, do you want to give a bit more detail?

Speaker #2: Development sales were modest this first half, just 5 million euros, but that reflects timing more than anything. We expect a substantial step-up starting from 2027, when part of the residential developments for sale will be completed.

Speaker #2: Moritz, do you want to give a bit more detail?

Speaker #1: Thank you, Mindy. I'm now on page 43. In the Czech Republic, our residential development projects, mostly in Prague and Brno, are about 67% pre-sold on average, and we're targeting roughly €500 million of sales proceeds from these projects to be completed between 2026 and 2029.

Moritz Mayer: Thank you, Mindy. I am now on page 43. In the Czech Republic, our residential development projects, mostly in Prague and Brno, are about 67% pre-sold on average, and we are targeting roughly $500 million of sales proceeds from these projects to be completed between 2026 and 2029. At healthy expected margins well into the 30%, 40%. The desire of Czech people to own bricks has not changed. If anything, we see it stronger given how tight housing supply remains relatively to demand. On Dubai, we currently own 19 luxury residential properties, of which 15 are still under construction. In our opinion, the UAE has done an excellent job defensively and geopolitically in the past month, and Dubai remains a great place to live, and we do not see that changing.

Speaker #1: At healthy expected margins, well into the 30s—40%. The desire of Czech people to own bricks has not changed; if anything, we see it stronger, given how tight housing supply remains relative to demand.

Speaker #1: In Dubai, we currently own 19 luxury residential properties, of which 15 are still under construction. In our opinion, the UAE has done an excellent job defensively and geopolitically.

Speaker #1: In the past month, and Dubai remains a great place to live, and we do not see that changing. During H1, we signed a loan with Emirates NBD to cover a portion of the remaining CapEx in Dubai.

Moritz Mayer: During H1, we assigned a loan with Emirates NBD to cover a portion of the remaining CapEx in Dubai, which is another sign of confidence. Combined with our remaining UK residential assets, we still see more than $500 million of sales proceeds available from these 2 markets over the next few years. Finally, on page 45, we are in long-term investment mode. In the Czech Republic, we continue to progress on our redevelopment plans and transformation of the vast land block, Nova Zbrojovka in Brno. There are already several commercial and residential projects ongoing, but there are also future plans in the works for the remaining land area. In addition to that, our land bank around Rome, which we have acquired in recent years and potentially more to come over time, is now seeing some projects move towards the permitting and planning stage.

Speaker #1: Which is another sign of confidence. Combined with our remaining UK residential assets, we still see more than €500 million of sales proceeds available from these two markets over the next few years.

Speaker #1: Finally, on page 45, we're in long-term investment mode. In the Czech Republic, we continue to progress on our redevelopment plans and transformation of the vast land block in Novasiborska in Brno.

Speaker #1: There are already several commercial and residential projects ongoing, but there are also future plans in the works for the remaining land area. In addition to that, our landbank around Rome, which we have acquired in recent years—and potentially more to come over time—is now seeing some projects move towards the permitting and planning stage.

Speaker #1: The most notable project is the former Alitalia headquarters site at Muratella, roughly 107,000 square meters of buildable land, where we're planning around 1,300 residential units, alongside a school and commercial spaces.

Moritz Mayer: The most notable project is the former Alitalia headquarters site at Muratella, roughly 107,000 square meters of suitable land, where we are planning around 1,300 residential units alongside a school and commercial spaces. We expect the presale phase to begin in 2027. Italy remains a story that will play out over the balance of this decade rather than this year. We think long-term, and we see Italy as a wealthy country with a desperate need for modern residential assets, ideally with air conditioning after the summer that we all just experienced. Back to financing on page 47. I will not remind you of the key points around liquidity, but we are very happy with the current situation. This is a point we continue to emphasize with our rating agencies, and we typically catch up with them around our results publication.

Speaker #1: We expect the pre-sale phase to begin in 2027, so Italy remains a story that will play out over the balance of this decade, rather than this year.

Speaker #1: We think long-term, and we see Italy as a wealthy country with a desperate need for modern residential assets, ideally with air conditioning after the summer that we just experienced.

Speaker #1: Back to financing. On page 47, I will not remind you of the key points around liquidity, but we're very happy with the current situation.

Speaker #1: This is a point we continue to emphasize with our rating agencies, and we typically catch up with them around our results publication. Leverage remains stable with S&P and is within the rating guidance.

Moritz Mayer: Leverage remains stable with S&P and within the rating guidance, and improved for Moody's as a result of our most recent hybrid transaction at the end of June. The ICR, as the key credit rating metrics, remain in focus and should be within the rating guidance for both rating agencies based on our calculations using their rating adjustment standard approach. As previously mentioned by David, given our high hedging rate of 96% and the completed refinancing activity in H1 2026, we have a very limited interest rate sensitivity protecting us against the recent rise in rates. Overall, we see a steady picture while we need to continue to execute our business plan to show meaningful improvements in our credit metrics. Now I will turn over to Petra to discuss ESG.

Speaker #1: And improved for Moody's as a result of our most recent hybrid transaction at the end of June. The ICR as the key credit rating metric remains in focus and should be within the rating guidance for both rating agencies based on our calculation using their rating adjustment standard approach.

Speaker #1: As previously mentioned by David, given our high hedging rate of 96% and the completed refinancing activity in H1 2026, we have very limited interest rate sensitivity, protecting us against the recent rise in rates.

Speaker #1: So, overall, we see a steady picture, while we need to continue to execute our business plan to show meaningful improvements in our credit metrics.

Speaker #1: Now, I will turn over to Petra to discuss ESG.

Speaker #2: Thank you, Moritz. This is Petra Heiner. I am the Group Sustainability Officer and would like to walk you through the ESG highlights. Starting on page 63, we are pleased to report the progress in our green building goals.

Petra Hajná: Thank you, Moritz. This is Petra Hajná. I am the Group Sustainability Officer and would like to walk you through the ESG highlights. Starting on page 63, we are pleased to report steady progress in our green building goals. As of the end of June 2026, green certified buildings represented over 52% of our total portfolio value. What is even more important, nearly 95% of these buildings hold very strong certification, BREEAM very good and above, or LEED gold and above. On top of that, our LightOn project in Warsaw was shortlisted for the BREEAM Award 2026, which highlights our commitment to top-tier sustainability standards. Moving on to page 64. I would like to highlight another great ESG milestone. The Financial Times and Statista recently named CPIPG one of the Europe's climate leaders for 2026.

Speaker #2: As of the end of June 2026, green-certified buildings represented over 52% of our total portfolio value. What is even more important, nearly 95% of these buildings hold very strong certification—BREEAM Very Good and above, or LEED Gold and above.

Speaker #2: On top of that, our Light-On project in Warsaw was shortlisted for the PREEM Award 2026, which highlights our commitment to top-tier sustainability standards. Moving on to page 64, I would like to highlight another great ESG milestone.

Speaker #2: The Financial Times and Statista recently named CPI PG one of Europe's climate leaders for 2026. Within the property sector, we achieved an incredible second place, and ranked 28th overall among all participating companies.

Petra Hajná: Within the property sector, we achieved an incredible second place and ranked 28th overall among all participating companies. To add to this success, MSCI recently upgraded our ESG rating from triple B to A. Turning on to page 67. Our board of directors went through some changes during the first half, which we see as positive. Mindy Lee joined the board, which now consists of six members, of which four are independent and two are deemed. We believe the board now has the independent experience and diversity of perspective required to govern our group effectively for years to come. I will briefly discuss sustainable finance, which starts on page 71. In January 2026, the group published an updated sustainable finance framework and our first European Green Bond fact sheet, both independently reviewed by Moody's Ratings.

Speaker #2: To add to this success, MSCI recently upgraded our ESG rating from BBB to A. Turning to page 67, our Board of Directors went through some changes during the first half, which we see as positive.

Speaker #2: Mindy Lee joined the board, which now consists of six members, of which four are independent and two are women. We believe the board now has the independence, experience, and diversity of perspectives required to govern our group effectively for years to come.

Speaker #2: I will briefly discuss sustainable finance, which starts on page 71. In January 2026, the Group published an updated Sustainable Finance Framework and our first European Green Bond spec sheet.

Speaker #2: Both were independently reviewed by Moody's. Moody's assessed both documents as very good, confirming strong alignment with market standards and a meaningful contribution to sustainability.

Petra Hajná: Moody's assessed both documents as very good, confirming strong alignment with market standards as a meaningful contribution to sustainability. In July 2026, the group issued our inaugural European Green Bond of EUR 550 million, continuing our leadership in sustainable financing in CEE region and the real estate sector. The Green Bond and EU Green Bond allocation and impact report is an integral part of the half year management report starting on page 72. As of 31 July 2026, 100% of the net proceeds from green bonds and EU Green Bonds were allocated to the eligible assets. For the Green Bond portfolio, 91% of the proceeds were allocated to certified green buildings, followed by sustainable farming, holding the test certificate. For the EU Green Bond, 100% of the proceeds were allocated to the EU Taxonomy-aligned assets with an energy performance certificate rating of A.

Speaker #2: In July 2026, the group issued our inaugural European green bond, continuing our leadership in sustainable financing in the CE region and the real estate sector.

Speaker #2: The Green Bond and EU Green Bond Allocation and Impact Report is an integral part of the half-year management report, starting on page 72. As of 31 July 2026, 100% of the net proceeds from Green Bonds and EU Green Bonds were allocated to the eligible assets.

Speaker #2: For the green bond portfolio, 91% of the proceeds were allocated to certified green buildings, followed by sustainable farming, holding the test certificate. For the EU green bond, 100% of the proceeds were allocated to EU taxonomy-aligned assets, with an energy performance certificate rating of A.

Speaker #2: The environmental impact of the green bond portfolio for green buildings represents an annual greenhouse gases emissions reduction of more than 5,000 tons CO2 equivalent in 2025. By the EU taxonomy-aligned project, we achieved an annual greenhouse gases emissions reduction of more than 1,000 tons CO2 equivalent in 2025.

Petra Hajná: The environmental impact of the Green Bond portfolio for green building representing an annual greenhouse gas emissions reduction of more than 5,000 tonnes CO2 equivalent in 2025. While the EU Taxonomy-aligned projects achieve annual greenhouse gases emissions reductions of more than 1,000 tonnes CO2 equivalent in 2025. Finally, in August, Moody's conducted their annual review and rewarded our efforts by rating both the Green Bond and European Green Bond allocation and impact report a best practice. If you would like to see the details, the official annual review letters are already published on our website. David also mentioned earlier the MSCI upgrade from triple B to A. This was another good reflection of all the work we are doing, and I am very happy about it. That covers the ESG section. David, please.

Speaker #2: Finally, in August, Moody's conducted their annual reviews and rewarded our efforts by rating both the green bond and European green bond allocation and impact reports as best practice.

Speaker #2: If you would like to see the details, the official annual review letters are already published on our website. David also mentioned earlier the MSCI upgrade from BBB to A; that was another good reflection of all the work we are doing, and I am very happy about that.

Speaker #2: So that covers the ESG section. David, please go ahead.

Speaker #3: Thank you, Petra. Okay, so I think we can move on to the Q&A. Our typical practice is that Moritz will read out a question, and then we will decide who answers and how to answer.

David Greenbaum: Thank you, Petra. Okay, I think we can move on to the Q&A. Our typical practice is that Moritz will read out a question, and then we will decide who answers and how to answer. Moritz, do you want to start with the first one?

Speaker #3: So, Moritz, do you want to start with the first one?

Speaker #1: Okay, the first question: Can you explain how CPI Property could monetize its stake in retail CALLs and MO HOLD CALLs? Do you intend to divest it?

Moritz Mayer: Okay. The first question, can you explain how CPI Property could monetize its stake in RetailCo and IMMOHOLDCO? Do you intend it to deleverage?

Speaker #3: Okay, I'll start, and maybe Martin Muthula, you can correct me if you want, but I'll do my very best. We had a number of questions from you around both the retail co and the transaction involving CPI FIM, so let me try and give you a bit of context.

David Greenbaum: Okay, I will start, and maybe Martin Matula, you can correct me if you want, but I will do my very best. We had a number of questions from you around both the RetailCo and the transaction involving CPI FIM. Let me try and give you a bit of context. I would say, as everyone knows, and I think we have been very clear, corporate simplification is very important to us. We are quite a large group, and we are trying to really think around how to organize ourselves better for the future, both operationally but also to create some optionality for the future. Just to start and say, I would say baseline, really what we are doing is trying to have a better, more streamlined internal structure. Looking at the RetailCo.

Speaker #3: I'd say, as everyone knows—and I think we've been very clear—corporate simplification is very, very important to us. We are quite a large group, and we're trying to really think about how to organize ourselves better for the future, both operationally, but also to create some optionality for the future.

Speaker #3: So just to start and say, I'd say baseline, really what we're doing is trying to have a better, more streamlined internal structure. So looking at the retail co, the retail co really would involve us pooling together all of our retail assets, or the vast majority of our retail assets, into one company.

David Greenbaum: The RetailCo really would involve us pooling together all of our retail assets or the vast majority of our retail assets into one company. Now, that just may be where it stays, right? It may just simply be a good operational internal move. However, it does also create some optionality for the future for equity investments or other strategic transactions that we might look at. So it is a bit of housekeeping for the RetailCo, but also a bit of optionality. I am not saying that we are going to do an IPO of it or sell a portion to reduce leverage, but certainly creating the framework gives us the option to look at those things in the future. On the CPI IMMOHOLDCO transaction with CPI FIM, that is really more about housekeeping from my perspective. CPI FIM is our subsidiary. We own 97% of the company.

Speaker #3: Now, that just may be where it stays, right? It may just simply be a good operational, internal move. However, it does also create some optionality for the future—for equity investments or other strategic transactions that we might look at.

Speaker #3: So, it's a bit of housekeeping for the RetailCo, but also a bit of optionality. I'm not saying that we're going to do an IPO of it or sell a portion to reduce leverage, but certainly, creating the framework gives us the option to look at those things in the future.

Speaker #3: On the EMO HoldCo transaction with CPI FIM, that's really more about housekeeping from my perspective. CPI FIM is our subsidiary. We own 97% of the company.

Speaker #3: And frankly, there have just been a number of real estate assets that have been held within CPI FIM for a long time. And from our perspective, it just made more sense to put the physical real estate assets—keep saying retail—physical real estate assets into one company.

David Greenbaum: Frankly, there has just been a number of real estate assets that have been held within CPI FIM for a long time. From our perspective, it just made more sense to put the physical retail assets, I keep saying retail, physical real estate assets into one company. That is really what that is about. It is really just about making sure that the real estate is all in one place. Does that also potentially create optionality? That is maybe not towards the top of our mind right now. It is really more about housekeeping. Yeah, Martin? Okay, Martin approves. So we can go on to the next question.

Speaker #3: And that's really what that's about. It's really just about making sure that the real estate is all in one place. Does that also potentially create optionality that's maybe not at the top of our minds right now?

Speaker #3: It's really more about housekeeping. Yeah? Martin? Okay, Martin. Martin approves, so we can go on to the next question.

Speaker #1: And the next question: When do you expect to come back to the bond market?

Moritz Mayer: The next question. When do you expect to come back to the bond market?

Speaker #3: Not anytime soon.

David Greenbaum: Not anytime soon.

Speaker #1: Okay, then the next question—I think it's two parts. Can you go into how much more favorable bank lending conditions have evolved? How much tighter have rates gone?

Moritz Mayer: Okay. The next question, I think it is two parts. Can you go into how much more favorable bank lending conditions have evolved? How much tighter have rates gone? The second part, with such few debt coming due, now no obvious high coupon debt to tender, should we even expect new issuance in 2027 as well?

Speaker #1: And the second part: with such few debt coming due now and no obvious high-coupon debt to tender, should we even expect new issuance in 2027 as well?

Speaker #3: So, Marketta will take the first part of that question to give you some flavor on the bank financing. And I'm hoping you're going to tell them, Marketta, that it's partially the market and partially your brilliance that is leading to tighter margins.

David Greenbaum: Markéta will take the first part of that question to give you some flavor on the bank financing. I am hoping you are going to tell them, Markéta, that it is partially the market and partially your brilliance that is leading to tighter margins. Do you want to give some context?

Speaker #3: But do you want to give some context?

Speaker #2: Thank you, David. I would really like to say that, for us, we see the average of our margins around 2%. We do have some very old financing, which has much more attractive margins.

Markéta Večeřová: Thank you, David. I would like to really say that for us, we see the average of our margins around 2%. We do have some very old financing, which have much more attractive margins. However, I have to say that we still keep going very well with our margins. On our rollovers, we are getting very close margins, which we have in the history. Also, we are very able to get a favorable condition for the new financings. We are especially doing a very great job on the financings which we have for our development projects, where we are currently really under the market. Generally for our conditions, we are getting to the point that we are still under the market.

Speaker #2: However, I have to say that we are still doing very well with our margins, and on our rollovers we're getting margins very close to what we have had historically. Also, we are very able to get favorable conditions for the new financings.

Speaker #2: And they're especially doing a very great job on the financings, which we have for our development project, where we are currently really under the market.

Speaker #2: And generally, all our conditions—we're getting to the point that we're still under the market. And the expectations for the years 2027 and 2028 are looking pretty good.

Markéta Večeřová: The expectations for the years 2027 and 2028 are looking pretty good, and we have already agreed with our banks that we will roll over all our financing.

Speaker #2: And we have already agreed with our banks that we will roll over all our financing.

Speaker #3: Thank you, Marketta. Again, I think this is really one of the success stories of our group. We have a whole page dedicated to our secured financing in the management report.

David Greenbaum: Thank you, Markéta. Again, I think this is really one of the success stories of our group. We have a whole page dedicated to our secured financing in the management report, and I think it is something that we can be really proud of. The second part of the question, I am just trying to make sure I understand the question. It is true that we have eliminated really the vast majority of our high-coupon unsecured debt. That is true. However, if you look at what we have been doing, we have still been proactively repaying short-term debt really no matter what. I think most of you would have seen that we repaid our 2027 bonds early. Of course, the next meaningful debt maturity, even though it is not very large, is 2028.

Speaker #3: And I think it's something that we can be really proud of. The second part of the question—I'm just trying to make sure I understand the question.

Speaker #3: It is true that we have eliminated really the vast majority of our high-coupon unsecured debt—that is true. However, if you look at what we've been doing, we've still been proactively repaying short-term debt, really no matter what.

Speaker #3: So I think most of you would have seen that we repaid our 2027 bonds early. And of course, the next meaningful debt maturity, even though it's not very large, is in 2028.

Speaker #3: So, probably at this moment in time, we'd be more inclined, to the extent that we have cash and we look to tender for bonds, we'd probably be more inclined to focus on the short end of the curve—again, preserving liquidity.

David Greenbaum: Probably at this moment in time, we would be more inclined, to the extent that we have cash and we look to tender for bonds, we would probably be more inclined to focus on the short end of the curve, again, preserving liquidity. But we will also just simply have to see what the development is in credit spreads and rates. Again, I said earlier, we are not expecting to go back to the bond market anytime soon. Let us just see how it goes. But I think Pavel and I, we look at this, and we look at the debt maturity profile, and we feel really comfortable that we can stay away from the bond markets for really quite a while if we need to.

Speaker #3: But we'll also just simply have to see what the development is in our in-credit spreads and rates. Again, as I said earlier, we're not expecting to go back to the bond market anytime soon.

Speaker #3: Let's just see how it goes. But I think Pavel and I, we look at this, and we look at the debt maturity profile, and we feel really comfortable that we can stay away from the bond markets for quite a while if we need to.

Speaker #3: And just remember, Marketta has a long list of banks lining up for secured financing at margins that are hundreds of basis points tighter than where unsecured bonds are trading.

David Greenbaum: Just remember, Markéta has a long list of banks lining up for secured financing at margins that are hundreds of basis points tighter than where unsecured bonds are trading. So as much as we want to keep that balance of secured and unsecured, we always have that lower cost option of financing and secured if we need to.

Speaker #3: So, as much as we want to keep that balance of secured and unsecured, we always have that lower-cost option of financing and secured if we need to.

Speaker #1: Thank you, David. And the next question: When do you expect ICR to start improving?

Moritz Mayer: Thank you, David. The next question, when do you expect ICR to start improving?

Speaker #3: Would you like to answer yourself?

David Greenbaum: Would you like to answer yourself?

Speaker #1: Yeah, sure. So basically, we expect the ICR really to improve starting from 2027 onwards, when we’re able to finish and/or complete developments both to hold—which are yielding—and also developments for sale.

Moritz Mayer: Yeah, sure. We expect the ICR really to improve starting from 2027 onwards, when we are able to finish and/or complete developments, both to hold, which are yielding, and also developments for sale. We talked earlier about it. Those are the Czech residential projects, but also the apartments in the UAE and the UK. With the sale of those non-yielding assets, we can really reduce cross-debt without losing anything on the top line. This is really one of the key elements of our strategy, how to improve it again. The next question is, what do you expect to do with hybrids non-callable 2025 and 2026 stubs?

Speaker #1: And we talked earlier about it. Those are the Czech residential projects, but also the apartments in the UAE and the UK. And so, basically, with the sale of those non-yielding assets, we can really reduce gross debt without losing anything on the top line.

Speaker #1: And this is really one of the key elements of our strategy — how to improve it again. The next question is: what do you expect to do with hybrids, non-callable 2025 and 2026 stubs?

Speaker #3: So, I haven't given this one a lot of thought, to be honest. It keeps coming up in our meetings. The reality is, we already gave the hybrid holders an ability to exit from those bonds and go into new bonds.

David Greenbaum: I haven't given this one a lot of thought, to be honest. It keeps coming up in our meetings. The reality is, we already gave the hybrid holder an ability to exit from those bonds and go into new bonds. While the hybrid stubs are economically expensive, it's more cash out the door, they still provide some benefit in terms of our IFRS credit ratios and some benefit, particularly for S&P, in terms of our ratios. So, we are looking at it, and certainly to the extent that we feel really comfortable around cash, it's something that we can look at. But I would probably prioritize any further repayment of hybrid stubs. I'd prioritize that behind repayment of short-term senior unsecured debt, right? The goal is preserving liquidity, continuing to give us time to execute across all of these priorities. I think everyone's giving me the finished sign.

Speaker #3: And while the hybrid stubs are economically expensive—it's more cash out the door—they still provide some benefit in terms of our IFRS credit ratios and some benefit, particularly for S&P, in terms of our ratios.

Speaker #3: So we're looking at it. And certainly, to the extent that we feel really comfortable around cash, it's something that we can look at. But I would probably prioritize any further repayment of hybrid stubs.

Speaker #3: I'd prioritize that behind repayment of short-term senior unsecured debt, right? The goal is preserving liquidity and continuing to give us time to execute across all of these priorities.

Speaker #3: And I think everyone's giving me the finished sign, so I think that's the end of the Q&A. I'll give it another second, if anyone wants to pop any other questions into the chat. It seems like that's it.

David Greenbaum: I think that's the end of the Q&A. I will give it another second if anyone wants to pop any other questions into the chat. It seems like that's it. I would say that's a very efficient call for us. 50 minutes start to finish. I want to thank you all for listening and for your support of CPIPG. Please reach out to us if you have any questions. We will be seeing many of you, as I said, at conferences, and enjoy the rest of your day. Thanks a lot.

Speaker #3: So, I would say that's a very efficient call for us—50 minutes start to finish. I want to thank you all for listening and for your support of CPI PG.

Speaker #3: Please reach out to us if you have any questions. We'll be seeing many of you, as I said, at conferences. Enjoy the rest of your day.

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Q2 2026 CPI Property Group SA Earnings Call

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