Q2 2026 Lighthouse Properties PLC Earnings Call

August 11, 2026

Speaker #1: Good morning, everyone, and welcome to our presentation. This is the presentation of Lighthouse Properties for the interim period ended 30 June 2026. So we're covering the first six months of the financial year.

Justin Muller: Good morning, everyone, and welcome to our presentation. This is the presentation of Lighthouse Properties. It is for the interim period, ended 30 June 2026, so we are covering the first 6 months of the financial year. Again, I would like to just thank you all for being here with us. We do know everyone is very busy, especially at this time of the year, and we do appreciate you taking the time to be with us here this morning.

Justin Muller: Good morning, everyone, and welcome to our presentation. This is the presentation of Lighthouse Properties. It is for the interim period, ended 30 June 2026, so we are covering the first six months of the financial year. Again, I would like to just thank you all for being here with us. We do know everyone is very busy, especially at this time of the year, and we do appreciate you taking the time to be with us here this morning.

Speaker #1: Again, I'd like to just thank you all for being here with us. We do know everyone's very busy, especially at this time of the year.

Speaker #1: And we do appreciate you taking the time to be with us this morning. As usual, I'm joined by my colleague Razvan Sin, our Head of Retail, and our new CFO, who will be presenting for the first time, Darvi Schwartz.

Justin Muller: As usual, I am joined by my colleagues, Razvan Sin, Head of Retail, and our new CFO, who will be presenting for the first time, Dawie Swarts. In terms of housekeeping, Q&A, we will hold that at the end. If you do have any questions, there should be a tab on your screen that says Questions, and you click on that, and there should be a box that you type your question into. At the end of the presentation, we will read them out loud and answer them accordingly.

Speaker #1: And just in terms of housekeeping, Q&A—we will hold that at the end. So, if you do have any questions, there should be a tab on your screen that says “Questions.” Click on that, and there should be a box for you to type your question into.

Speaker #1: And then at the end of the presentation, we will read them out aloud and answer them accordingly. Before I move on, I'd like to talk to the pictures and just to share a bit of color.

Justin Muller: Before I move on, I would like to talk to the pictures and just to share a bit of color. This is H2O. It is one of our two centers in Madrid. We recently finished quite an extensive refurbishment here. We replaced the flooring, improved the lighting, replaced the balustrades, we also refurbished the food courts. There was a large exterior artificial lake, which we partially filled and created a park space and a green area. I think most importantly, we have been focusing on the tenanting here. All the Inditex brands, other than Zara, have all been extended and refurbished, are currently trading in their latest concepts. We have agreed with Zara to refurbish and extend their store, and they will be concluding that during the course of 2027.

Speaker #1: This is H2O. It's one of our two centers in Madrid. We've recently finished a quite extensive refurbishment here. We replaced the flooring, improved the lighting, replaced the balustrades, and we also refurbished the food court.

Speaker #1: There was a large, exterior artificial lake, which we partially filled and created a park space and a green area. And I think, most importantly, we've been focusing on the tenanting here.

Speaker #1: All the Intex brands other than Zara have been extended and refurbished, and are currently trading in their latest concepts. We've agreed with Zara to refurbish and extend their store.

Speaker #1: And they will be concluding that during the course of 2027. What we've also done is signed a lease with Lefties, and Lefties will be taking the space left behind by the arcade and bowling operator.

Justin Muller: What we have also done is sign a lease with Lefties, and Lefties will be taking the space left behind by the arcade and bowling operator. They have relocated to We have spoken about it previously, but they have relocated to a trampoline park. The location of the trampoline park, who vacated the scheme due to national insolvency. It is exciting. We do have Lefties coming here. We now do have all the Inditex brands. Despite all these ongoing works and relocations and letting and tenanting, the mall is continuing to perform well. Sales still growing, for the period over 6%. Vacancies have dropped just below 1%, and we expect the mall to become fully let once Lefties is fully operational, which will be towards the end of 2026. In terms of the content and what we are going to be covering this morning, I will start with an overview.

Speaker #1: They have relocated to— which we've spoken about previously— but they have relocated to the trampoline park, to the location of the trampoline park.

Speaker #1: We've vacated the scheme due to a national insolvency, so it's exciting. We do have Lefties coming here. We now do have all the Inditex brands.

Speaker #1: And despite all these ongoing works and relocations and letting and tenanting, malls continue to perform well, sales are still growing—for the period, over 6%—vacancies have dropped just below 1%, and we expect that to, or expect the mall to become fully let once the Lefties is fully open and operational, which will be towards the end of 2026.

Speaker #1: In terms of the content and what we're going to be covering this morning, I'll start with an overview. I'll take you through our strategy, as well as some of the highlights for the period, and then we'll hand over to Darvi, who will take you through the financial results and some of the financial KPIs.

Justin Muller: I will take you through our strategy as well as some of the highlights for the period. We will hand over to Dawie, who will take you through the financial results and some of the financial KPIs. Razvan will take you through the operations. We will take you through the letting initiatives and some of the projects we are busy with and the projects we plan to commence with in the coming months. We will conclude with an outlook, and we will provide an update on the guidance, and we will also follow up with the Q&A session at the end. Again, talking to the picture, this is La Salera. It is our mall in Castellón, in Spain, on the Mediterranean coast. It is our largest mall, probably our most powerful mall in Spain. You do see at the bottom there, Bershka as well as Stradivarius. They have relocated here.

Justin Muller: I will take you through our strategy as well as some of the highlights for the period. We will hand over to Dawie, who will take you through the financial results and some of the financial KPIs. Razvan will take you through the operations. We will take you through the letting initiatives and some of the projects we are busy with and the projects we plan to commence with in the coming months. We will conclude with an outlook, and we will provide an update on the guidance, and we will also follow up with the Q&A session at the end. Again, talking to the picture, this is Salera. It is our mall in Castellón, in Spain, on the Mediterranean coast. It is our largest mall, probably our most powerful mall in Spain. You do see at the bottom there, Bershka as well as Stradivarius. They have relocated here.

Speaker #1: And then Razvan will take you through the operations. He'll take you through the letting initiatives, some of the projects we're busy with, and the projects we plan to commence with in the coming months.

Speaker #1: And then we'll conclude with an outlook and provide an update on the guidance. We will also follow up with the Q&A session at the end.

Speaker #1: Again, talking to the picture, this is a Solera. It's our mall in, in Castellón, in, in Spain, on the Mediterranean coast. it's our largest mall, our la our probably our most powerful mall in, in Spain.

Speaker #1: You do see at the bottom there, Bershka as well as Stradivarius. They've relocated here. They were undersized and overtrading, and have opted to move to these locations.

Justin Muller: They were undersized and overtrading and have opted to move to these locations. From where they were, it is a secondary location. But I think they were so desperate to have the size that they needed that they were happy to compromise on the location. So they now have anchored this part of the mall. It was fairly cold before. It was anchored by Sports Direct as well as United Colors of Benetton. Much more powerful offering here, and it is completely re-energized and reactivated this part of the mall. And the other thing it has done, it has enabled us to bring some new tenants to the mall as well. So we have Rossellimac, which is one of the Apple Premium Resellers, which was not present in the mall before. We do have Scalpers now that have joined the mall, as well as Cortefiel.

Speaker #1: It is, from where they were, a secondary location. But I think they were so desperate to have the size that they needed that they were happy to compromise on the location.

Speaker #1: So they now have anchored this part of the mall. It was fairly cold before—it was anchored by Sports Direct, as well as United Colors of Benetton.

Speaker #1: It’s a much more powerful offering here, and it’s completely re-energized and re-activated this part of the mall. The other thing it’s done is enabled us to bring some new tenants to the mall as well.

Speaker #1: So we've got Rosselli Mack, which is one of the Apple Premium Resellers, which wasn't present in the mall before. We do have Scalpers now that have joined the mall, as well as Quarterfuel.

Speaker #1: Also performing nicely, sales growth at Solera was about 8.5% for the period, and the mall is effectively fully let. And then, just to kick off with an overview again on the picture, this is Alcalamagna.

Justin Muller: Also performing nicely, the sales growth at Salera was about 8.5% for the period, and the mall is effectively fully let. Then just to kick off with an overview. Again, on the picture, this is Alcalá Magna. It is one of our two malls that we own in Madrid. It is in one of the rapidly growing residential nodes. It is the smallest mall in our Iberian portfolio. Despite the small size, it is 32,000 square meters, it is performing extremely well. It keeps surprising us. The sales growth here was about 12.3% for the period. Vacancy is very low at 0.6%. Despite its size, it does have all the tenants. We have Zara, who refurbished and on their latest flagship concept. We have Primark as well, also has a Lefties and a very strong Mercadona as well. Again, despite this size, it is attracting over 7 million people.

Speaker #1: It's one of our two malls that we own in Madrid. It's in one of the rapidly growing residential nodes. It's the smallest mall in our Iberian portfolio.

Speaker #1: And despite this small size—it's 32,000 square meters—it's performing extremely well. It keeps surprising us. The sales growth here was about 12.3% for the period.

Speaker #1: Vacancy is very low, just 0.6%. And despite its size, it does have all the tenants—it has Zara, who have refurbished and are on their latest flagship concept.

Speaker #1: We've got Primark as well. It also has a Lefties, and a very strong Mercadona as well. And, again, despite its size, it's attracting over 7 million people.

Speaker #1: So, it's punching well above its weight—very strong center, especially given its size. Just a recap on the strategy: nothing much has changed.

Justin Muller: It is punching well above its weight. A very strong center, especially given its fast. Just a recap on the strategy. Nothing much has changed. We have been consistent with the strategy over the past couple of years. What we are trying to do is provide a stable investment with sustainable growing distributions, which are all underpinned by dominant, defensive malls. With this in mind, we have a very specific investment criteria when it comes to acquiring new malls and investing our capital. We do only focus on dominant and defensive malls. In our minds, to be dominant, you do need to have the key tenants. You do need Zara, and Zara on their latest flagship concept, and you do need a Primark.

Speaker #1: We've been consistent with the strategy over the past couple of years. What we're trying to do is provide a stable investment with sustainably growing distributions, which are all underpinned by dominant, defensive malls.

Speaker #1: So, with this in mind, we've got a very specific investment criteria. When it comes to acquiring new malls and investing our capital, we do only focus on dominant and defensive malls.

Speaker #1: And in our minds, to be dominant, you do need to have the key tenets. You did in Zara, and Zara on their latest flagship concept, and you do need a Promoc.

Speaker #1: And in most instances, you'll see that in the cities we are in, if we're outside of the major metropolitans, we usually do have the only Zara and the only Pramoc in that specific city.

Justin Muller: In most instances, you will see in the cities that we are, if we are outside of the major metropolitans, we usually do have the only Zara and the only Primark in that specific city. It is just important to have Zara on their latest flagship concept. They are consolidating, so they are closing the stores. If you see a situation where Zara have invested money in a store and upgraded to a flagship concept, and there is an older Zara within proximity, there is a high risk that that Zara will also close. So, we have been focusing a lot on getting all the Zaras up to their latest flagship concept. H2O, which I mentioned earlier, is the last remaining one, which we have agreed with them to do, and that will be done during the course of next year.

Speaker #1: And it's just important to have Zara on their latest flagship concept. They are consolidating, so they are closing the stores. If you see a situation where Zara has invested money in a store and upgraded it to a flagship concept, and there's an older Zara within proximity, Zara has listed that that store will also close.

Speaker #1: So, we've been focusing a lot on getting all the Zaras up to the latest flagship concept. H2O, which I mentioned earlier, is the last remaining one, which we've agreed with them to do, and that will be done during the course of next year.

Speaker #1: Again, we only focus on cities with a strong economic underpin—so it's provincial capitals; agriculture, mining, tourism is often the case; or it could even be, we do a subdomain. Or, we don't mind the major metropolitans.

Justin Muller: Again, we only focus on cities with a strong economic underpin, so it is provincial capitals, agriculture, mining. Tourism is often the case, or it could even be, we do not mind the major metropolitans. We are in Madrid. We mentioned the two malls earlier. We also do have a mall in Lisbon. I think what is important is that there is a growing population in these respective cities. There is urbanization happening in Europe, and it is prevalent in Spain, so we avoid the cities with these declining populations. You do need that growing population just to give you that tailwind when it comes to footfall growth and sales growth. We are focusing on Western Europe, specifically Iberia. We intend to do so for the foreseeable future. On the acquisition side, it has abated somewhat. We are seeing there are still opportunities, but it has become extremely competitive.

Speaker #1: We are in Madrid. We mentioned the two malls earlier. We also do have a mall in Lisbon. I think what's important is that there's a growing population.

Speaker #1: In these, in these respective cities, there is urbanization happening in Europe. it's across and, and it's per it's prevalent in Spain. So we avoid the cities with these declining populations.

Speaker #1: You do need that growing population just to give you that tailwind when it comes to footfall growth and sales growth. We're focusing on Western Europe, specifically Iberia.

Speaker #1: We intend to do so for the foreseeable future. And on the acquisition side, it has abated somewhat. We are seeing that there are still opportunities, but it has become extremely competitive.

Speaker #1: So, we are starting to focus more and more on enhancing the assets. We're investing capital in the assets themselves, though this investment does come with returns.

Justin Muller: We are starting to focus more and more on enhancing the assets. We invest in capital in the assets themselves. This investment does come with returns. It includes extensions, refurbishments, moving tenants around, bringing the correct tenants in. We are attracting very attractive returns on these capital deployments. In terms of acquisitions, even though we do think there will be fewer acquisitions going forward, we do still constantly monitor. I think all opportunities do come across our desk. We are well-known in the market, and we continue monitoring. I think when there is weakness or there is a specific opportunity, we will be able to execute on it. Just with that strategy in mind, looking back, we see how we have executed it over the past few years. We started on the Iberian expansion in 2022, acquired our first mall in Spain. This was Torre Cárdenas.

Speaker #1: So it includes extensions, refurbishments, moving tenants around, and bringing the correct tenants in. We are attracting very, very attractive returns on these capital deployments.

Speaker #1: And, in terms of acquisitions, even though we do think there will be fewer acquisitions going forward, we do still constantly monitor. I think all opportunities do come across our desk.

Speaker #1: We're well known in the market, and we continue monitoring. I think when there is weakness or there is a specific opportunity, we will be able to execute on it.

Speaker #1: Just with that strategy in mind, looking back, we see how we've executed it over the past few years. We started on the Iberian expansion in 2022, and acquired our first mall in Spain.

Speaker #1: This was Torre Cadenas, and that was then followed up in 2024, which I think was the best year to be buying centers in Iberia.

Justin Muller: That was then followed up in 2024, which I think was the best year to be buying centers in Iberia. So when we were acquiring centers at yields of between 7.5% and 8%. We followed that up in 2025 with two additional acquisitions. These yields were between 7% and 7.5%, so we did see yield compression happening already. Starting in 2026, you will probably read in the press there are some big acquisitions happening. Some malls are being acquired, but these yields have dropped 6.5% sort of and below. So it has become less attractive to buy. There is a lot of capital chasing the few assets in Iberia. It has become a very attractive investment destination, especially for offshore and foreign capital. In terms of the debt refinancing, I think when we acquired a lot of these centers, they came with existing loans.

Speaker #1: This is when we were acquiring centers at yields between 7.5% and 8%. We followed that up in 2025 with two additional acquisitions; these yields were between 7.5% and 7.5%.

Speaker #1: So, we did see yield compression happening already, but starting in 2026, you will probably read in the press that there are some big acquisitions happening.

Speaker #1: Some malls are being acquired, but these yields have dropped—6.5% and below. So it has become less attractive to buy. There is a lot of capital.

Speaker #1: Chasing the few assets in Iberia, it's become a very attractive investment destination, especially for offshore and foreign capital. In terms of the debt refinancing, I think when we acquired a lot of these centers, they came with existing loans.

Speaker #1: Some of these loans were amortizing, so it was quite a drag on our cash flow that they've all been refinanced. There's no more material amortization in the portfolio.

Justin Muller: Some of these loans were amortizing, so it was quite a drag on our cash flow. They have all been refinanced. There is no more material amortization in the portfolio. Our debt maturity has been extended as well. A lot of the focus, which Razvan will take you through some of the detail a bit later, has been focusing on improving the existing assets, and value creation, and we are seeing nice returns, and this is how we are driving our growth in the next couple of years. On the financial highlights for H1, I think the most important number there, that 9.7% growth in distributions. This builds on the 7.9% that we achieved for H1 of last year. So you are starting to see nice consistent growth coming through. It was driven by acquisitions that were made during H1 of last year.

Speaker #1: And our debt maturity's been, been, extended as well. And a lot of the focus was rather than we'll take you through some of the detail th through some of the detail a bit later, has been focusing on improving the existing assets, and value creation.

Speaker #1: And we are seeing nice returns, and this is how we're driving our growth in the next couple of years. On the financial highlights for the first half, I think the most important number there is that 9.7% growth in distributions—this builds on the 7.9% that we achieved for the first half of last year.

Speaker #1: So, you are starting to see nice, consistent growth coming through. It was driven by acquisitions that were made during the first half of last year.

Justin Muller: They are now contributing for a full six-month period, as well as the strong sales growth, which we will touch on a bit later. But there has been strong sales growth across all geographies, pushing up your turnover rentals, also helping with your indexation and your lease renewals. On the LTV side, 35.9%. It has improved slightly from the 36.1% and it is because of valuations. We did revalue at the end of 2025. We have not revalued for the interim. We only revalue at year-ends. So that benefit has come through from the valuations that were already done. And you do see that coming through in that NAV increase per share of 4.9%. That is due to the revaluations that were done at the end of 2025. NRIs are up nicely, and I think cap rates have compressed further, so we do expect that NAV growth to continue towards the end of the year.

Speaker #1: They, they now contributing for a full six-month period. as well as the strong sales growth, which we'll touch on a bit later. But there has been strong sales growth across all geographies, pushing up your turnover rentals, also helping with your indexation and your, and your, your, your, your li your lease renewals.

Speaker #1: On the LTV side, 35.9%. It's improved slightly from the 36.1%. And it's because of valuations. We did revalue at the end of 2025.

Speaker #1: We haven't revalued for the interim. We only revalue at year-end, so that benefit comes through from the valuations that were already done.

Justin Muller: We only revalue at year-ends. So that benefit has come through from the valuations that were already done. And you do see that coming through in that NAV increase per share of 4.9%. That is due to the revaluations that were done at the end of 2025. NRIs are up nicely, and I think cap rates have compressed further, so we do expect that NAV growth to continue towards the end of the year. In terms of refinancings, we have been quite busy here and these both happened after the period end. Torre Cárdenas, Alcalá Magna been refinanced by Aareal. So we repaid the old facilities, and then we have now new facilities, which have extended our debt maturity profile.

Speaker #1: And you do see that coming through in that NAV, which increased per share by 4.9%. That's due to the revaluations that were done at the end of 2025.

Speaker #1: MPRs are up nicely, and I think cap rates have compressed further. So we do expect that NAV growth to continue towards the end of the year.

Speaker #1: In terms of refinancings, we've been quite busy here, and these both happened after the period end. The Torre Cadenas, or Calamagna, has been refinanced by Ariel.

Justin Muller: In terms of refinancings, we have been quite busy here and these both happened after the period end. Torre Cárdenas, Alcalá Magna been refinanced by Aareal. So we repaid the old facilities, and then we have now new facilities, which have extended our debt maturity profile. And I think quite importantly, we have secured terms with Natixis to refinance the French loan, which was maturing in March 2027. We were surprised at how competitive that process became for the lenders. There were five potential lenders we could have gone with. We ended up electing to go with Natixis, who was the existing lender. Main reason being execution risk. They were familiar with the assets and they had all the security already, so it made sense to go with them. What they also did do is reduce the margin.

Speaker #1: So we repaid the old facilities, and then we did new facilities, which have extended our debt maturity profile. And then I think, quite importantly, we've secured terms with Natixis to refinance the French loan, which was maturing in March 2027.

Justin Muller: And I think quite importantly, we have secured terms with Natixis to refinance the French loan, which was maturing in March 2027. We were surprised at how competitive that process became for the lenders. There were five potential lenders we could have gone with. We ended up electing to go with Natixis, who was the existing lender. Main reason being execution risk. They were familiar with the assets and they had all the security already, so it made sense to go with them. What they also did do is reduce the margin.

Speaker #1: We were surprised at how, how competitive that process became for the lenders. There were five potential lenders we could have gone with.

Speaker #1: We ended up electing to go with Natixis, who was the existing lender. The main reason being execution risk. They were familiar with the assets, and they had all the security already.

Speaker #1: So it made sense to go with them. I think what they also did do is reduce the margin. When we borrowed from them originally, that margin was 300 basis points in 2022.

Justin Muller: When we borrowed from them originally, that margin was 300 basis points in 2022. It has now reduced to 175 basis points. So quite a major reduction in the margin there. And I think it is acknowledgement and recognition of the improvement in the market conditions firstly, but also the improvement in the assets. Much better quality assets, much better quality tenant profiles, also been improved from various enhancements and extensions that have been done and refurbishments that have been done to those centers. Just to take you through the operational highlights. As you see, Spain, Portugal, that is 87% of our portfolio, so the major part of our business, with just under 13% being France. Like-for-like NRI growth at a portfolio level of 4.5%, dragged down somewhat by Portugal. And I think it is important to understand that Portuguese portfolio, there is only two assets in that portfolio.

Speaker #1: It's now reduced to 175 basis points, so quite a major reduction in the margin there. And I think it's an acknowledgment and recognition of the improvement in market conditions, firstly, but also the improvement in the assets.

Speaker #1: Much better quality assets, much better quality tenant profiles, and much has also been improved from various enhancements and extensions that have been done in refurbishments to those centers.

Speaker #1: Just to take you through the operational highlights. As you see, Spain and Portugal make up 87% of our portfolio, so the major part of our business, with just under 13% being France.

Speaker #1: Like-for-like MPR growth at a portfolio level of 4.5%, dragged down somewhat by Portugal. And I think it's important to understand that the Portuguese portfolio—there are only two assets in that portfolio.

Speaker #1: One is Forum Coimbra, the other one is Forum Montijo. Forum Coimbra is having quite a major extension done to it, mostly with the Initex brands, and then it involves some buoys and moving some tenants around.

Justin Muller: One is Forum Coimbra, other one is Forum Montijo. Forum Coimbra is having quite a major extension done to it, mostly with the Inditex brands and then involves some voids and moving some tenants around. Also some rent freeze and some tenants being closed, that did drag down the NRI. You do see a contrast with the sales growth of 9.5% for the period. But we do expect that NRI to normalize into 2027, and I think we will see a number north of 6% for Portugal for 2027 once these projects are completed and trading normalizes again. On the sales growth, Spain continues to outperform also very strong, far above inflation, at 7.7%. And France also performing nicely, 5.7%, taking the portfolio total to 7.9%. Growth in footfall 3%.

Speaker #1: Also, some rent frees and some tenants being closed did drag down the NPR. You do see a contrast with the sales growth of 9.5% for the period.

Speaker #1: But we do expect that NPR to normalize into 2027, and I think we'll see a number north of 6% for Portugal for 2027, once these projects are completed and trading normalizes again.

Speaker #1: Yes. On the sales growth, Spain continues to outperform, also very strong, at 5.5% above inflation, at 7.7%. And France is also performing nicely at 5.7%, taking the portfolio total to 7.9%.

Speaker #1: Growth in football, 3%. It is difficult to continue growing football, but the tailwind that helps us is being in these growing population areas.

Justin Muller: It is difficult to continue growing footfall, but a tailwind that helps us is being in these growing population areas and bringing the right tenants and attracting more and more shoppers. Also keeping the malls relevant and aspirational, this is driving footfalls, which in turn does help you drive sales. EPRA vacancies, Iberian portfolio, it does speak to the quality. It is almost fully let, so 0.3% in Spain and fully let in Portugal. France sitting at about 6%, but being fairly stable at about that 6% level, taking our total portfolio vacancy to 1.1%. This is just a slight evolution of the portfolio from over the past 12 months. You can see a bit of a stability and some static-ness happening here.

Speaker #1: And bringing the right tenants and attracting more and more shoppers, and also keeping the malls relevant and aspirational. This is driving footfall, which in turn does help you drive sales.

Speaker #1: EPRA vacancies are a very important portfolio metric. I'll just speak to the quality—it's almost fully let: 0.3% in Spain and fully let in Portugal.

Speaker #1: And then France is sitting at about 6%, but being fairly stable at around that 6% level, taking our total portfolio vacancy to 1.1%. This is just a slight evolution of the portfolio over the past 12 months.

Speaker #1: You'll get you can see a, a bit of a stability and, and, some staticness happening here. The only difference being we acquired the grocer, a grocer in Cartagena, in Espacio Mediterráneo towards the end of, 2025.

Justin Muller: The only difference being we acquired the grocer, a grocer in Cartagena, in Espacio Mediterráneo towards the end of 2025, and that did bump up that Spanish exposure a bit from 58% to 59.1%. If you are investing in Lighthouse, you are primarily investing in an Iberian portfolio. There are only eight assets, but all eight of those assets are dominant, are effectively fully let, and are growing quite nicely. The balance being 12.8% is invested into French assets. So that is a portfolio of four assets. With that, I will hand you over to Dawie, who is presenting for the first time. He will take you through the financial results. Welcome, Dawie.

Speaker #1: And that did bump up that Spanish exposure a bit, from 58% to 59.1%. But if you're investing in Lighthouse, you're primarily investing in an Iberian portfolio.

Speaker #1: There are only eight assets, but all eight of those assets are dominant, are effectively fully let, and are growing quite nicely. And then the balance, being 12.8%, is invested into French assets.

Speaker #1: So that's a portfolio of four assets. And with that, I'll hand you over to Darvi, who's presenting for the first time. He'll take you through the financial results.

Speaker #1: Welcome, Darvi.

Speaker #2: Thank you for that introduction, Justin. I'm going to take us through the financial results for the six months ended 30 June 2026. As Justin has already mentioned, the most important metric on this slide is the increase in distribution per share, which is 9.7%.

Dawie Swarts: Thank you for that introduction, Justin. I am going to take us through the financial results for the six months ended 30 June 2026. As Justin has already mentioned, the most important metric on this slide is the increase in distribution per share, which is 9.7% for the six months ended 30 June 2026 compared to the prior period. This is off the back of a 10.9% increase in distributable income, offset slightly by an increase in shares due to a scrip dividend for the H2 2025. Distributable income increased mainly due to an increase in property rental and related revenue. This is as a result of the acquisition of two properties in 2025. This was Espacio Mediterráneo in June 2025 as well as Alcalá Magna, in March 2025.

Speaker #2: For the six months ended 30 June 2026, compared to the prior period. And this is off the back of a 10.9% increase in distributable income.

Speaker #2: Offset slightly by an increase in shares, due to a scrip dividend for the second half of December 2025. Distributable income increased mainly due to an increase in property rental and related revenue.

Speaker #2: And this is as a result of the acquisition of two properties in 2025. This was Espacio Mediterráneo in June 2025, as well as Alcalá Magna in March 2025.

Speaker #2: We've also had some rental indexation, which Raz will take us through a bit later, as well as ongoing asset management initiatives. This increase in property rental has been offset by an increase mainly in finance costs, also as a result of the acquisition of these two assets.

Dawie Swarts: We have also had some rental indexation, which Raz will take us through a bit later, as well as ongoing asset management initiatives. This increase in property rental has been offset by an increase mainly, in finance costs, also as a result of the acquisition of these two assets, and therefore, the loans to fund these assets increased as well. Our payout ratio remained at 100% from the previous period, and our net asset value increased by 4.9% compared to 30 June 2025. This is, as Justin has also mentioned earlier, mainly due to an increase in fair value adjustments in our investment properties at December 2025. I will now talk us through our debt profile. As Justin has mentioned also, we focus on a strong balance sheet and also on a disciplined LTV ratio, and we do extensive hedging.

Speaker #2: And therefore, the loans to fund these assets increased as well. Our payout ratio remained at 100% from the previous period, and our net asset value increased by 4.9% compared to 30 June 2025.

Speaker #2: And this is, as Justin has also mentioned earlier, mainly due to an increase in fair value adjustments in our investment properties at December 2025.

Speaker #2: I'll now take us through our debt profile. As Justin has mentioned, we focus on maintaining a strong balance sheet and a disciplined LTV ratio.

Speaker #2: And we do extensive hedging. Our interest-bearing borrowings, as of 30 June 2026, remained relatively stable compared to December 2025. It decreased from €581 million to €578 million.

Dawie Swarts: Our interest-bearing borrowings as of 30 June 2026 remained relatively stable compared to December 2025. It decreased from EUR 581 million to EUR 578 million. This decrease is mainly due to amortization of loans, which we are planning on largely eliminating going forward, which I will talk to in the next slide. Our LTV ratio decreased slightly from 36.1% at December 2025 to 35.9% at June 2026. Our cost of borrowings also remained stable at 4.97% compared to 4.99% for the comparable period in the prior year. This is mainly as a result of our fixed borrowings. We had fixed all our debt, either through fixed loans or through interest rate derivatives, and that remained 100% fixed for the current and the comparable period. Our weighted average debt maturity decreased from 4.7 years at December 2025 to 4.3 years, at June 2026.

Speaker #2: And this decrease is mainly due to amortization of loans, which we are planning on largely eliminating going forward, which I'll talk to in the next slide.

Speaker #2: Our LTV ratio decreased slightly from 36.1% at December 2025 to 35.9% at June 2026. Our cost of borrowings also remained stable at 4.97%, compared to 4.99% for the comparable period in the prior year.

Speaker #2: And this is mainly as a result of our fixed borrowings—we've fixed all our debt, either through fixed loans or through interest rate derivatives.

Speaker #2: And that remained 100% fixed for the current and the comparable period. Our weighted average debt maturity decreased from 4.7 years at December 2025 to 4.3 years at June 2026.

Speaker #2: On the right-hand side of the slide, you will see that we have quite a significant amount of debt maturing in 2027, and this is mainly due to our French portfolio that is expiring in March 2027.

Dawie Swarts: On the right-hand side of the slide, you will see that we have quite a significant amount of debt maturing in 2027. This is mainly due to our French portfolio that is expiring in March 2027. Moving on to the next slide then, talking about the refinancing. We have two debt streams that happened after June 2026. Firstly, we refinanced two properties in Spain. This was Torre Cárdenas and Alcalá Magna. We increased our debt on these two loans to EUR 128.1 million. This was a six-year bullet debt profile with no amortization on the debt. We have a significant improvement on our margin achieved from 226 basis points previously obtained to 185 basis points for the new debt. This was already closed in the beginning of July 2026.

Speaker #2: And moving on to the next slide then, talking about the refinancing, we have two debt streams that happen after June 2026. Firstly, we refinanced two properties in Spain.

Speaker #2: And this was Torre Cadenas and Alcalá Magna. We increased our debt on these two loans to €128.1 million. This was a six-year bullet debt profile, with no amortization on the debt.

Speaker #2: We have seen a significant improvement in our margin, moving from 226 basis points previously obtained to 185 basis points for the new debt.

Speaker #2: And this was already closed in the beginning of July 2026. This new facility gives us better covenant flexibility, because we now have one debt facility covering all our Spanish properties.

Dawie Swarts: This new facility gives us better governance flexibility because we now have one debt facility covering all our Spanish properties except for Salera, which is in a joint venture. This also enhanced cash extraction from these properties as a result of this refinancing. Moving on to the debt that is expiring in March 2027. As I mentioned, it is the France debt, and we are expecting to close this refinancing in Q4 2026. We decided to remain with Natixis, which is the incumbent lender, due to execution risk on this facility. The margin on this facility decreased significantly from 300 basis points that we achieved in 2022 to 175 basis points for the current facility.

Speaker #2: Except for Solera, which is in a joint venture. There's also enhanced cash extraction from these properties as a result of this refinancing. Then, moving on to the debt that is expiring in March 2027.

Speaker #2: As I mentioned, it's the France debt, and we're expecting to close this refinancing in the fourth quarter of 2026. We decided to remain with Natixis, which is the incumbent lender, due to execution risk on this facility.

Speaker #2: And the margin on this facility decreased significantly, from 300 basis points that we achieved in 2022 to 175 basis points for the current facility. The facility is also expected to increase to €126 million.

Dawie Swarts: The facility is also expected to increase to EUR 126 million. This would be a five-year bullet loan, compared to the current loan on the French portfolio, which has quite a significant amortization portion on that. This refinancing is also going to provide us with better covenant flexibility and also enhanced cash extraction due to less covenants than we had in the previous facility. Post the refinancing of both the Spanish debt in Torre and Alcalá, as well as the French debt, our expected cost of debt is going to increase from around 4.97% for the six months ended 3 June to around 5.05%. This increase is mainly due to a significant increase in the base rates. But it is offset significantly by our improved margins on both the Spanish as well as the French debt, which I have already spoken to.

Speaker #2: And this would be a five-year bullet loan, compared to the current loan on the French portfolio, which has quite a significant amortization portion on that.

Speaker #2: This refinancing is also going to provide us with better covenant flexibility and enhanced cash extraction due to having fewer covenants than we had in the previous facility.

Speaker #2: Both the refinancing of the Spanish debt in Torre and Alcalá, as well as the French debt, means our expected cost of debt is going to increase from around 4.97% for the six months ending 30 June to around 5.05%.

Speaker #2: And this increase is mainly due to a significant increase in the base rates, but it's offset significantly by our improved margins on both the Spanish as well as the French debt, which I've already spoken to.

Speaker #2: Our average maturity of debt is also then expected to increase from 4.3 years as of 30 June '26 to 5.2 years post the refinance.

Dawie Swarts: Our average maturity of debt is also then expected to increase from 4.3 years, as at 30 June 2026, to 5.2 years post the refinance. As mentioned before, the group will now have no material amortizing loan outstanding anymore, which will reduce the cash drag on our debt. With that, I will give over to Razvan to take us through the operations. Thanks.

Speaker #2: And as mentioned before, the group will now have no material amortizing loan outstanding anymore, which will reduce the cash drag on our debt.

Speaker #2: And with that, I'll hand over to Razvan to take us through the operations. Thanks.

Speaker #1: Thank you, Davi. Good morning, everyone. In the following slides, I will take you through the operational highlights for the first half of 2026. This is a picture with the SPY Girones.

Razvan Sin: Thank you, Dawie. Good morning, everyone. In the following slides, I will take you through the operational highlights for the H1 2026. This is a picture with Espai Gironès. This is a mall that we are extending mainly to introduce and extend Zara. They are currently busy fitting out, and they will open the new flagship store in October this year. Performance metrics. EPRA vacancy 1.1%. This is down from 1.3% at the end of 2025. Spain 0.3%, down from 0.5%. This is mainly due to the leasing of the vacant space in H2O. Portugal vacancy is practically zero. France is flat at 6.1%. Collection rate 98.7%. It is more than 99% in Spain and Portugal, 97% in France. Going forward, we expect vacancy and collection rate to stabilize and maybe we will see some improvements in France in 2027. Average occupancy cost 10.5%.

Speaker #1: This is a mall that we are extending mainly to introduce and expand Zara. They are currently busy fitting out, and they will open the new flagship store in October this year.

Speaker #1: Performance metrics: EPRA vacancy is 1.1%, down from 1.3% at the end of 2025. Spain is at 0.3%, down from 0.5%. This is mainly due to the leasing of the vacant space in H2O.

Speaker #1: Portugal: vacancy is practically zero. France is flat at 6.1%. Collection rate: 98.7%. It's more than 99% in Spain and Portugal, and 97% in France.

Speaker #1: Going forward, we expect vacancy and collection rates to stabilize, and maybe we'll see some improvements in France in 2027. Average occupancy cost is 10.5%.

Speaker #1: This is slightly lower than previously reported. It was 10.6%. As sales increase, we are also increasing the base rent when leases expire.

Razvan Sin: This is slightly lower than previously reported. It was 10.6%. As sales increase, we are also increasing the base rent when leases expire. In these six months, sales increased materially, so average occupancy cost is down, and this will allow us to deliver a consistent rental uplift going forward as leases expire. Indexation, 2.9% in Spain, 2% in Portugal, and in France, in Q1, -0.5%. It was communicated only for Q1. It will be published for Q2 in September. Our expectation is that for the full year in France, indexation will be somewhere around 1%. On the right side, the lease expiry profile by monthly rental. No major changes here. Approximately 40% of the leases expire in the next five years. Average rental reversion, 6.5%. It was 5.1% in 2021.

Speaker #1: But in this six months, sales increased materially. So average occupancy cost is down. And this will allow us to deliver a consistent rental uplift going forward as leases expire.

Speaker #1: Indexation: 2.9% in Spain, 2% in Portugal, and in France, in Q1, negative 0.5%. It was communicated only for Q1; it will be published for Q2 in September.

Speaker #1: And our expectation is that for the full year in France, indexation will be somewhere around 1%. On the right side, the lease expiry profile is shown by monthly rental.

Speaker #1: No major changes here. Approximately 40% of the leases expire in the next five years. Average rental reversion is 6.5%. It was 5.1% in 2021. So we managed to increase the base rent at a higher level than in 2021.

Razvan Sin: We managed to increase the base rent at a higher level than in 2025, and this talks to the occupancy cost that I mentioned before. This level excludes indexation, which is applied on indexation date. Leasing activity, 85 leases in the first six months were signed. This is for more than 38,000 square meters of GLA. On the right side, the sales variation by sector. Sales improved across all countries, with growth exceeding the inflation materially. As Justin already mentioned, sales improved with 7.9% across the portfolio. The highest increase was in the leisure sector, 17.4%, due to the exceptional performance of the cinemas this year. The rest of the leisure tenants, meaning bowling centers, arcade games, and fitness centers, also performed well, but not at the level of the cinemas.

Speaker #1: And this talks to the occupancy cost that I mentioned before. This level excludes indexation, which is applied on indexation date. Leasing activity: 85 leases in the first six months were signed.

Speaker #1: This is for more than 38,000 square meters of GLA. On the right side, the sales variation by sector—sales improved across all countries, with growth exceeding inflation materially.

Speaker #1: As Justin already mentioned, sales improved by 7.9% across the portfolio. The highest increase was in the leisure sector, at 17.4%, due to the exceptional performance of the cinemas this year.

Speaker #1: The rest of the leisure tenants—meaning bowling centers, arcade games, and fitness centers—also performed well, but not at the level of the cinemas.

Speaker #1: Cinema tickets increased by 29.2% in the first half compared to the first half of '25. The growth was driven by content and blockbusters.

Razvan Sin: Cinema tickets increased with 29.2% in H1 compared to H1 2025, and the growth was driven by content and blockbusters. We expect this growth to continue also in H2. The 29% growth in ticket sales corresponds to a total growth in sales of more than 35% for the cinemas due to the increase in prices for concessions and tickets. For the rest of the sectors, services increased 11.9%, personal care 7.9%, and fashion, which is the largest category. It represents 36% of the rental income. It increased with 6.2%. Within fashion, the best performer was the Inditex group with all the seven brands. The increase was more than 10%. Top 10 tenants by rental income. The largest 10 tenants represent 31.5% of the rental income.

Speaker #1: And we expect this growth to, to continue also in the second half. The, the 29%, growth in ticket sales, corresponds to, growth in sales total growth in sales of more than 35% for the cinemas due to the, increase in prices, for concessions and tickets.

Speaker #1: For the rest of the sectors, services increased 11.9%. Personal care, 7.9%, and fashion, which is the largest category, represents 36% of the rental income.

Speaker #1: It increased by 6.2%. And within fashion, the best performer was the Inditex Group. With all seven brands, the increase was more than 10% there.

Speaker #1: Top 10 tenants by rental income. The, the le the, the largest 10 tenants represent 31.5% of the rental income. Inditex is our, main tenant with the, with the seven brands.

Razvan Sin: Inditex is our main tenant with the seven brands, and together they account for 12% of the income. Zara alone, which is the flagship of the group, represents 4.9%, right ahead of Primark with 4.7%. The two brands are very selective, both Zara and Primark. They only open in dominant malls, and they are many times followed by other tenants. Tenants consider the presence of the two tenants, Primark and Zara in a mall as an indicator of the quality of that mall. They are following the two brands. Inditex is present in 11 out of the 12 malls, and Primark is present in 10 out of 12.

Speaker #1: And together, they account for 12% of the income. Meanwhile, Zara alone, which is the flagship of the group, represents 4.9%, right ahead of Primark with 4.7%.

Speaker #1: The two, the two brands are, are very selective, both, Zara and, and Primark. They only open in dominant malls. And, there are many times followed by other tenants.

Speaker #1: So, tenants consider the presence of the two tenants, Primark and Zara, in a mall as an indicator of the quality of that mall.

Speaker #1: So, they are following the two brands. Inditex is present in 11 out of the 12 malls, and Primark is present in 10 out of 12.

Speaker #1: As Justin mentioned, it is important to have them, but also, it is important to have them on the right concept, on the latest concept, and on the right side.

Razvan Sin: As Justin mentioned, it is important to have them, but also it is important to have them on the right concept, on the latest concept, and on the right size, because this means that they invest in their stores to update. This is especially important for Zara. They are continuing the consolidation process. They are closing the secondary locations, and they are enlarging the performing ones. In our portfolio, we have eight Zara stores in Iberia, so in all eight malls. Seven out of those eight have been refurbished recently. The last one is H2O, which will be extended and refurbished in 2027. Spain operational highlights. Spain represents 59.1% of the direct portfolio by fair value. GDP growth of 2.7%, well above the European average. It is one of the highest in Western Europe. Like for like, NPI growth of 5.6%. Tenant sales are up 7.7%.

Speaker #1: Right size, because this means that they invest in their stores to update. This is especially important for Zara, as they are continuing the consolidation process.

Speaker #1: They are closing the secondary locations, and they are enlarging the performing ones in our portfolio. We have eight Zara stores in Iberia. So in all eight malls, seven out of those eight have been refurbished recently.

Speaker #1: And the last one is H2O, which will be extended and refurbished in 2027. Spain operational highlights: Spain represents 59.1% of the direct portfolio by fair value.

Speaker #1: GDP growth of 2.7%, well above the European average. It's one of the highest in Western Europe. Like-for-like NPI growth of 5.6%. Tenant sales up 7.7%.

Speaker #1: In general, in shopping centers in Spain, sales increased by 6%. So the portfolio is outpacing the market average, with 7.7% compared to 6%.

Razvan Sin: In general, in shopping centers in Spain, sales increased with 6%. The portfolio is outpacing the market average with 7.7% compared to 6%. Footfall growth 2.4% up. EPRA vacancy 0.3%, down from 0.4%. On the right side, some of the projects and leasing highlights that we have been busy with in this first six months. At Salera, Bershka and Stradivarius, they relocated and opened larger stores. This allowed us to introduce Rossellimac, Scalpers, and Cortefiel. Lefties, also in Salera, they refurbished and opened the latest concept in April. At Espai Gironès, the extension of the mall for Zara is advancing well, and it is within budget. Zara took over the unit, and they will open in October. At Espacio Mediterráneo, Primark signed the renewal, and they quickly refurbished the store, and in June they opened a new concept. We opened two new brands, Mango Teen and Rossellimac.

Speaker #1: Footfall growth is 2.4% up. EPRA vacancy is 0.3, down from 0.4. And on the right side, some of the projects and leasing highlights that we've been busy with.

Speaker #1: In these first six months, at Salera, Bershka, and Stradivarius, they relocated and opened larger stores. This allowed us to introduce Rosalie, Mack, Scalpers, and Cortefil.

Speaker #1: Lefties also in Salera, they refurbished and opened the latest concept in April. At Espai Girona, the extension of the mall for Zara is advancing well, and it's within budget.

Speaker #1: Zara took over the unit, and they will open in October. At Espacio Mediterráneo, Primark signed the renewal, and they quickly refurbished the store.

Speaker #1: And in June, they opened a new concept. We opened two new brands, Mango Teen and Rosalie Mack. And also, in Mediterráneo, we handed over the space to Perfumería Primor.

Razvan Sin: In Mediterráneo, we handed over the space to Perfumería Primor, and they are expected to open in September. At H2O, previously, we communicated that we are in negotiations with a large fashion tenant. Consequently, we signed the lease agreement with Lefties. This is a large store, 3,200 square meters. We are preparing the space for them now, and they will open before December this year. NPI growth of 5.6% in Spain. Considering all the initiatives that we have in Spain, we have considerable room for improvement in 2027. This is because a lot of the large stores are or will be temporarily closed during 2026. Here I refer to Zara in Espai Gironès, Bershka, Stradivarius, and Lefties, which were closed for a period in Salera. Lefties, who will open at the end of the year in H2O, and of course, Inditex and Primark in Coimbra.

Speaker #1: And they are expected to open in September. At H2O, previously we communicated that we are in negotiations with a large fashion tenant. Consequently, we signed the lease agreement with Lefties. This is a large store, 3,200 square meters.

Speaker #1: We are preparing the space for them now, and they will open before December this year. So, NPI growth of 5.6% in Spain. Considering all the initiatives that we have in Spain, we have considerable room for improvement in 2027.

Speaker #1: And this is because a lot of the large stores have been temporarily, or will be temporarily, closed during 2026. And here I refer to Zara in Espai Girona, Bershka, Stradivarius, and Lefties, which were closed for a period in Salera.

Speaker #1: Lefties will open at the end of the year in H2O. And of course, Inditex and Primark in Coimbra. But this is Portugal.

Razvan Sin: This is Portugal. Some of the openings in Spain. You can see Primark and Mango Teen in Mediterráneo, and Bershka, Cortefiel, and Lefties at Salera. Moving to Portugal, which represents 28.1% of the portfolio. GDP growth 2.1%, again, one of the highest in Western Europe. Like-for-like NPI growth of 1.7%. This is low because of the rental void and because of the projects that we are busy with. We have some disruptions, mainly with Inditex and with Primark in Coimbra. Tenant sales increased with 9.5%. This is compared to an increase of 5.1% in shopping centers in general in Portugal. Footfall growth 3.1%, and EPRA vacancy 0%. Some of the projects and leasing initiatives, we have two ongoing projects at Coimbra. This is the extension of the mall for Inditex and for Primark. The Inditex part was finalized, so Zara, Stradivarius, Bershka, Pull&Bear are now open.

Speaker #1: Some of the openings in Spain: you can see Primark and Mango Teen in Mediterráneo, and Bershka, Cortefiel, and Lefties at Salera. Moving to Portugal, which represents 28.1% of the portfolio.

Speaker #1: GDP growth was 2.1%, again, one of the highest in Western Europe. Like-for-like NPI growth was 1.7%. This is low because of the rental voids and because of the projects that we are busy with.

Speaker #1: We have some disruptions, mainly with Inditex and with Primark in Coimbra. Tenant sales increased by 9.5%. This is compared to an increase of 5.1% in shopping centers in general in Portugal.

Speaker #1: Footfall growth was 3.1% and EPRA vacancy was 0%. Regarding some of the projects and leasing initiatives, we have two ongoing projects at Coimbra. This is the extension of the mall for Inditex and for Primark.

Speaker #1: The Inditex part was finalized, so Zara, Stradivarius, Bershka, and Pull&Bear are now open. Zara opened a flagship store, almost 4,000 square meters. And in July, just now, they closed the competing store in the city. So this is part of the consolidation strategy: once Zara opened in Forum Coimbra, they closed the second store.

Razvan Sin: Zara opened a flagship almost 4,000 square meters. In July, just now, they closed the competing store in the city. This is part of the consolidation strategy. Once Zara opened in Forum Coimbra, they closed the second store. The second project in Coimbra is the extension of the mall on the second floor to add a new medical center. The lease with the medical center has been signed, and we will deliver the space by the end of the year, and they will open at the beginning of next year. Some of the openings, Sephora and Lego in Coimbra, and Zara flagship together with Bershka and Pull&Bear, also in Coimbra, and in Forum Montijo, Motocard, who opened in the retail park. Operational highlights for France, which represents 12.8% of the portfolio. GDP growth here is only 0.2%.

Speaker #1: And the second project in Coimbra is the extension of the mall on the second floor to add a new medical center. The lease with the medical center has been signed.

Speaker #1: And we will deliver the space by the end of the year, and they will open at the beginning of next year. Some of the openings are Sephora and Lego in Coimbra.

Speaker #1: And Zara flagship, together with Bershka and Pull&Bear, also in Coimbra. And in Forum Montijo, Motocard, who opened in the Vittel Park. Operational highlights for France.

Speaker #1: This represents 12.8% of the portfolio. GDP growth here is only 0.2%. Like-for-like NPI growth is 6.6%, driven by asset management and leasing initiatives. Tenant sales increased by 5.7%.

Razvan Sin: Like-for-like NPI growth 6.6%, driven by the asset management and leasing initiatives. Tenant sales increased with 5.7%. Footfall increased with 4.5%. This is compared with a negative growth in sales in shopping centers in general in France. Sales in comparable shopping centers in France were negative, -0.5%, and this is despite the strong performance of the cinemas. Footfall increased with only 0.8%. EPRA vacancy is stable at 6.1%. On the right side, some of the projects and leasing highlights. New Yorker and Popeyes signed the leases for new stores with opening in Q4 in Rive Gauche. In Docks Vauban, we opened two new restaurants, Les 3 Brasseurs and O'Tacos, and we have one more Italian concept on a large surface opening in the second part of the year.

Speaker #1: Footfalls footfall increased with 4.5%. This is compared with the negative growth in sales in, shopping centers in general in France. So, sales in shopping centers in comparable shopping centers in France were negative, minus 5, 0.5%.

Speaker #1: And this is despite the strong performance of the cinemas, and footfall increased by only 0.8%. EPRA vacancy is stable at 6.1%. And on the right side, some of the projects and leasing highlights.

Speaker #1: New Yorker and Popeyes signed the leases for new stores, with openings in Q4 in Rivetual. In Dox Voban, we opened two new restaurants: Le Tra Brasserie and Otacos.

Speaker #1: And we have one more Italian concept on a large surface, opening in the second part of the year. At San Sever, we opened Rituals.

Razvan Sin: At Saint-Sever we opened Rituals. At Docks 76 we signed the lease agreement with New Yorker, who will open in Q2 next year. In France, we have two large spaces, two New Yorker stores that will be operational only in 2027. I think the main message that I want to send is that we deliver strong NPI growth in 2026, but we had some major disruptions. Several of the large tenants were not fully operational because of extensions and refurbishments. These tenants will be fully operational in 2027, which will drive further NPI growth. With this, I finish the operational part and hand back to you, Justin.

Speaker #1: And at Doc 76, we signed the lease agreement with New Yorker, who will open in Q2 next year. Also, in France, we have two large spaces—two New Yorker stores—that will be operational only in 2027.

Speaker #1: I think the main message that I want to send is that we delivered strong NPI growth in 2026, but we had some major disruptions.

Speaker #1: Several of the large tenants were not fully operational because of extensions and refurbishments. These tenants will be fully operational in 2027, which will drive further NPI growth.

Speaker #1: And with this, I finish the operational part and hand back to you, Justin.

Speaker #2: Thank you, Razvan. and I think we will just, conclude with the outlook and give you an update on the guidance. And then we'll hand we'll, we'll, we'll move on to the Q&A section.

Justin Muller: Thank you, Razvan. I think we will just conclude with the outlook and give you an update on the guidance. Then we will move on to the Q&A section. I think in terms of outlook, we will remain disciplined on that investment approach, which I spoke of earlier. It is very important that we have dominant assets and we will not compromise on quality in exchange for yield. Given that, we do expect acquisitions to moderate for the foreseeable future. On the flip side of that, we are seeing very strong economic performance out of Iberia, strong sales growth. That momentum remains strong, and we do not see it changing in the foreseeable future. It will continue driving our growth. As you have seen with Razvan, there is a lot happening in the portfolio. There are lots of moving parts.

Speaker #2: I think, in terms of outlook, we will remain disciplined on that investment approach which I spoke of earlier. It's very important that we have dominant assets, and we won't compromise on quality in exchange for yields.

Speaker #2: So given that, we do expect acquisitions to moderate for the foreseeable future. But on the flip side of that, we're seeing very strong economic performance out of Iberia.

Speaker #2: Strong sales growth. That momentum remains strong, and we don't see it changing in the foreseeable future as well. So it will continue driving our growth.

Speaker #2: And as Raz—as you've seen with Razvan—there's a lot happening in the portfolio. There are lots of moving parts; there are a lot of projects that are currently underway.

Justin Muller: There are a lot of projects that are currently on the way. These will be concluded mostly towards the end of this year and some during the course of next year. This will continue. As these get let up, we will continue driving our growth into 2027. So expecting 2027 to be another good year. With regards to 2026, we have upgraded our guidance and increased it from EUR 2.95 cents for the full year to EUR 3 cents. That takes our growth from an improvement from 6.9% to that 8.7% level, which we are very pleased with. I think it does show the quality of that portfolio, and the strength of some of the asset management initiatives. That does build on, again, I think last year, the increase was about 7.5%. So it is an improvement even on that. We are very happy with that number.

Speaker #2: These will be concluded mostly towards the end of this year, and some during the course of next year. But this will continue—as these get let up, they will continue driving our growth into 2027.

Speaker #2: So, expecting 2027 to be another good year. But with regards to 2026, we have upgraded our guidance and increased it from 2.95 euro cents for the full year to 3 euro cents.

Speaker #2: And that takes our growth from an improvement of 6.9% to that 8.7% level, which we're very pleased with. I think it does show the quality of that portfolio.

Speaker #2: ...and the strength of some of the asset management initiatives. And that does build on—again, I think last year, the increase was about 7.5%.

Speaker #2: So it's an improvement even on that, so we're very happy with that number. I think that concludes the presentation, and we will hand over to the Q&A section.

Justin Muller: I think that concludes the presentation. Then we will hand over to the Q&A section. Dawie, I think there have been some questions that have been asked during the presentation. Dawie will read them out loud. Then either Razvan, myself, or Dawie will answer accordingly.

Speaker #2: And, Davi, I think there have been some questions. They've been asked during the presentation. Davi, I'll read them out aloud and then either Razvan, myself, or Davi will answer accordingly.

Speaker #1: All right, so we have a few questions. I'll try and group some of them together. The first one talks about our asset management across the portfolio.

Dawie Swarts: All right. We have a few questions. I will try and group some of them together. The first one talks about our asset management across the portfolio, with attractive yield. The question is: can you provide a summary of these across the portfolio and also the budgeted yields?

Speaker #1: With attractive yield. So the question is, can you provide a summary of these across the portfolio, and also the budgeted yields?

Speaker #2: Yeah. So there are a few of them, and they do come at various yields. We, for example—Forum Coimbra—that was a €12 million project.

Justin Muller: Well, there are a few of them, and they do come at various yields. For example, Forum Coimbra, that was a EUR 12 million project, and that was primarily to extend Primark as well as all of the Inditex brands. The yield on that was around 7.5%. When we talk yield, we just talk the incremental cost over the, well, the incremental rental increase over the cost that you incurred. Over and above that, you do get further benefit. In Coimbra specifically, Zara closed in the competing scheme, which means that they will consolidate into our scheme, which means there will be more footfall. It means there will be more sales across the portfolio. So that 7.5% is probably understated to what your real return is. You may also get a slight compression in cap rate because you have become more dominant. That is an example in Coimbra. We also have Girona.

Speaker #2: to and that was primarily to extend Pramoc as well as all of the Inditex brands. the yield on that was around 7.5%. but we just when we talk yield, we just talk the incremental cost over the or the incremental rental increase over the incre over the cost of the incurred.

Speaker #2: Over and above that, you do get further benefit. I mean, in Coimbra specifically, Zara closed in the competing scheme, which means that they'll consolidate into our scheme, which means there'll be more footfall—means there'll be more sales across the portfolio.

Justin Muller: In Coimbra specifically, Zara closed in the competing scheme, which means that they will consolidate into our scheme, which means there will be more footfall. It means there will be more sales across the portfolio. So that 7.5% is probably understated to what your real return is. You may also get a slight compression in cap rate because you have become more dominant. That is an example in Coimbra. We also have Girona.

Speaker #2: So that 7.5% is probably understated compared to what your real return is. You may also get a slight compression in cap rate because you've become more dominant.

Speaker #2: but that's an example. In Coimbra, we also have Girona, that one was, about 6.6 million at about a 5.5, percent yield. So quite low, but again, I think there it will be, improved because of the, dominance that's created by that, by the, the competing Zara's and the competing schemes, closing.

Justin Muller: That one was about EUR 6.6 million at about a 5.5% yield. So quite low, but again, I think that will be improved because of the dominance that is created by the competing Zaras and the competing schemes closing. Salera, we spoke of that earlier. We moved Stradivarius as well as Bershka. That did incur CapEx of around EUR 2 million, but the yield on that CapEx was around 9%. We are also, some other initiatives we are looking at doing, we are looking at buying some space back from the grocers to downsize them and bring some new tenants there. Those are going to be, there is one in particular, it is a cost of around EUR 6 million. The yield there will probably be north of 8%. Then we are also working on, and it is largely tenant-driven because everything we do when it comes to extensions will be pre-let.

Speaker #2: Solera was—we spoke of that earlier. We moved Stradivarius as well as Bershka. That did incur capex of around $2 million, but the yield on that capex was around 9%.

Speaker #2: And we also—some other initiatives we're looking at doing, we are looking at buying some space back from the grocers to downsize them and bring some new tenants there.

Speaker #2: Those are going to be—or there's one in particular—it's a cost of around $6 million. The yield there will probably be north of 8%.

Justin Muller: Those are going to be, there is one in particular, it is a cost of around EUR 6 million. The yield there will probably be north of 8%. Then we are also working on, and it is largely tenant-driven because everything we do when it comes to extensions will be pre-let. We have got some options like H2O, for example. There is an idea, or at least, we do have rights and the ability to extend that mall. A project there will cost around EUR 6 million.

Speaker #2: And then we are also working on, and it's largely tenant-driven, because everything we do when it comes to extensions will be pre-let.

Speaker #2: We have got some options, like H2O. For example, there is an idea—or at least a role—we do have rights and the ability to extend that more. A project there will cost around $6 million.

Justin Muller: We have got some options like H2O, for example. There is an idea, or at least, we do have rights and the ability to extend that mall. A project there will cost around EUR 6 million. The yield will be north of 10%. So these are the types of deals that we are looking at where we do get these attractive returns, and this is what we are saying is a more attractive investment destination for capital than buying new centers at low sixes. That is probably not the quality we would like to be buying at this point in time.

Speaker #2: The yield will be north of 10%. So these are the types of deals that we're looking at, where we do get these attractive returns.

Justin Muller: The yield will be north of 10%. So these are the types of deals that we are looking at where we do get these attractive returns, and this is what we are saying is a more attractive investment destination for capital than buying new centers at low sixes. That is probably not the quality we would like to be buying at this point in time.

Speaker #2: And this is what we are saying: it is a more attractive investment destination for capital than buying new sensors at low sixes, and probably not at the quality we would like to be buying at this point in time.

Speaker #1: Okay, so the next question: The tax rate for the distributor income was 2.9% in 1H26. What tax rate are you allowing for the FY26 guidance?

Dawie Swarts: Okay, the next question. The tax rate for the distributable income was 2.9% in H1 2026. What tax rate are you allowing for the FY 2026 guidance? Also, where do you expect it to settle in the long term, as well as what tax rate is included when dividends are distributed from Portugal? We are expecting the average rate for FY 2026 to be around 3.1%. On a stabilized basis, we are expecting it to settle around 4% to 4.5% on the total portfolio. Then the question around the tax in Portugal. When distributions are made out of Portugal, there is a 10% tax rate applicable to that distribution. Okay, the next question then. The Portuguese and Spanish NPI were lower in H1 2026 than in H2 2025, and the distributable income guidance suggests that H2 2026 NPI growth will be good. Can you give color about seasonality in these portfolios?

Speaker #1: And also, where do you expect it to settle in the long term? As well as, what tax rate is included when dividends are distributed from Portugal?

Speaker #1: So, we are expecting the average rate for FY26 to be around 3.1%. On a stabilized basis, we're expecting it to settle around 4.0% to 4.5% on the total portfolio.

Speaker #1: And then the question around the tax in Portugal: when distributions are made out of Portugal, there's a 10% tax rate applicable to that distribution.

Dawie Swarts: Then the question around the tax in Portugal. When distributions are made out of Portugal, there is a 10% tax rate applicable to that distribution. Okay, the next question then. The Portuguese and Spanish NPI were lower in H1 2026 than in H2 2025, and the distributable income guidance suggests that H2 2026 NPI growth will be good. Can you give color about seasonality in these portfolios?

Speaker #1: Okay, so the next question then: the Portuguese and Spanish MPI were lower in H1 2026 than in H2 2025, and the distributor income guidance suggests that H2 2026 MPI growth will be good.

Speaker #1: Can you give color about seasonality in these portfolios?

Speaker #2: Yeah. I mean, we did speak about Portugal earlier and the impact of some of the, the buoys, rain, freeze, etc., that are happening there, which won't reappear in the second half of the year.

Justin Muller: Yeah. We did speak about Portugal earlier and the impact of some of the voice rent freeze, et cetera, that are happening there, which won't reappear in the second half of the year. There is a seasonality. A huge amount of the trading, Razvan can probably speak to, but there is a far greater period of sales or the densities of sales are much higher in the second half of the year. Especially in Europe, you have summer, obviously, which is the August months, where sales are strong. Then you have the December period as well, obviously, then sales are strong as well. Do you want to add to that, Razvan?

Speaker #2: And, there's a seasonality. A lot of I mean, a huge amount of the trading I mean, Razvan can probably speak to, but there's a, a, a far greater period of sales or, or the densities of, of sales are much higher in the second half of the year.

Speaker #2: Especially in Europe, you have summer, obviously, which is the August months where sales are strong. Then you have the December period as well—obviously, sales are strong then as well.

Speaker #2: I just want to add to that, Razvan. Yeah, so the MPI is mainly driven by the project and by the tenant closing. Sometimes it's one or two months; if it's a large tenant, it'll be three months closed for an extension and refurbishment.

Razvan Sin: Yeah. The NPI is mainly driven by the project and by the tenant closing for sometimes one, two, if it is a large tenant, it will be three months closed for an extension and the refurbishment. So this is what drives mainly the NPI. There is seasonality because in the second part of the year, there is back to school in September, and then it is the winter holidays. This would have a small effect on the turnover rent, but I would say it is minor impact on the NPI.

Speaker #2: So this is what mainly drives the NPI. There is seasonality, because in the second part of the year there's back to school in September, and then there's the winter holidays.

Speaker #2: and this would have a, an effect on the a small effect on the, turnovers. Turnover rents, but it's, I would say it's minor impact on the MPI.

Dawie Swarts: Okay, the next question: Can you please provide your holdings of NEPI versus Klépierre at period end, comprising the EUR 8.5 million? Has there been any changes post-year end? I can take that one. The full EUR 8.5 million are NEPI shares. We don't hold any Klépierre shares. There has been no movement in those shares since reporting period. Okay, the next question: What are your plans to improve the vacancies in France? Are you looking at disposals of any assets that don't fit the strategy of cities with strong economic underpin? There were two questions in this regard that I will just group together.

Speaker #1: Okay. So, the next question: Can you please provide your holdings of NEPI versus LPA at period end, comprising the €8.5 million, and has there been any changes post-year end?

Speaker #1: So I can take that one. The full €8.5 million is on NEPI shares; we don't hold any LPA shares. And there's been no movement in those shares since the reporting period.

Speaker #1: Okay, so the next question: What are your plans to improve the vacancies in France? Are you looking at disposals of any assets that don't fit the strategy of cities with strong economic underpinning?

Speaker #1: And there were two questions in this regard that I'll just group together.

Speaker #2: Okay. Maybe—I think what we are seeing in France is an improvement in tenancing from a tenant point of view. France was net losing tenants.

Justin Muller: Okay, I think France, what we are seeing in France is an improvement in tenanting from an entrant point of view. France was net losing tenants. We were seeing a lot of insolvencies, bankruptcies, tenant failures, obviously putting a lot of pressure on the vacancies themselves. What we are seeing is now tenants coming into the market. We have seen Lefties open in the market. Obviously, they are a major player. They have got a rollout plan. We are seeing the likes of Primor, who is a big perfumery operator from Spain, opening in that French market. We are starting to see that happen, and we are speaking to these tenants to occupy quite meaningful spaces in those French malls, which I think will help the vacancies as well. Maybe Razvan can speak to, Docks 76 is one of the centers where we have got a meaningful vacancy.

Speaker #2: We were seeing a lot of insolvencies, bankruptcies, and tenant failures—obviously putting a lot of pressure on the vacancies themselves. But what we are seeing now is tenants coming into the market.

Speaker #2: We've seen Lefties open in the market. Obviously, they're a major player. They have got a rollout plan. We're seeing the likes of Primor, who's a big perfumery operator from Spain, opening in that French market.

Justin Muller: They have got a rollout plan. We are seeing the likes of Primor, who is a big perfumery operator from Spain, opening in that French market. We are starting to see that happen, and we are speaking to these tenants to occupy quite meaningful spaces in those French malls, which I think will help the vacancies as well. Maybe Razvan can speak to, Docks 76 is one of the centers where we have got a meaningful vacancy. There is a repositioning happening there, which I will let Razvan speak to. Then we have got some new tenants like New Yorker coming into two of the schemes, again, anchoring those centers quite nicely, and I think it will also drive the letting there.

Speaker #2: So we are starting to see that happen, and we are speaking to these tenants to occupy quite meaningful spaces in those French malls, which I think will help the vacancies as well.

Speaker #2: Maybe Razvan can speak to Doc 76; it is one of the centers where we have a meaningful vacancy. There's a repositioning happening there, which I'll let Razvan speak to.

Justin Muller: There is a repositioning happening there, which I will let Razvan speak to. Then we have got some new tenants like New Yorker coming into two of the schemes, again, anchoring those centers quite nicely, and I think it will also drive the letting there.

Speaker #2: And then, we have got some new tenants like New Yorker coming into two of the schemes. Again, anchoring those centers quite nicely, and I think it will also drive the letting there.

Speaker #3: Yeah. So New Yorker entering both Doc 76 and, Rivertal, Strasbourg. And, we are looking into improving the leisure segment in Doc 76. we are in discussions with a large tenant, to occupy a large part of the of the first floor, but, we will we will announce it once, once the leases are signed.

Razvan Sin: New Yorker entering both Docks 76 and Rivetoile, Strasbourg. We are looking into improving the leisure segment in Docks 76. We are in discussions with a large tenant to occupy a large part of the first floor, but we will announce it once the leases are signed.

Speaker #1: All right. Okay. So, the next question then is: Are you still looking to acquire further properties, and in which jurisdiction?

Dawie Swarts: All right. Okay. The next question then is: Are you still looking to acquire further properties, and in which jurisdiction?

Speaker #2: Yeah. At the moment, we're always looking. We just need to be at the right sort of asset quality and the right pricing point, which makes sense to us.

Justin Muller: Yeah. At the moment, we're always looking. We just need it to be at the right sort of asset quality and the right pricing point, which makes sense to us. For the moment, improving the assets, I think we did speak of some of the projects earlier. The return on capital and the deployment of capital into that for us is better. Not only it gives us a yield, it also improves the existing assets and makes them more defensive. This is where our focus is for now. Again, always assessing. I think if we do find an opportunity that does make sense, it will probably be Iberia. We would act on it. It's become a competitive market, and as I mentioned earlier, yields have compressed it.

Speaker #2: for the for the moment, improving the assets, I think we did speak of some of the projects earlier. The, the return on capital and the deployment of capital into that for us is better.

Speaker #2: Not only does it give us a yield, but it also improves the existing assets and makes them more defensive. So this is where our focus is for now.

Speaker #2: But again, always assessing. I think if we do find an opportunity that does make sense, it'll probably be our barrier. We would act on it.

Speaker #2: But, as it has become a competitive market, and as I mentioned earlier, yields have compressed there.

Speaker #1: Okay, so there are two questions remaining. The second-to-last one: can you provide an update on your solar rollout strategy and the benefits arising?

Dawie Swarts: Okay, so there's two questions remaining. Second last one: Can you provide an update on your solar rollout strategy and the benefits arising?

Speaker #2: Yeah, so with regards to solar, it is slightly different to South Africa in terms of the ability to expand on it, and it is quite different to what you see in Eastern Europe or some of the other players there.

Justin Muller: Yeah. With regards to solar, it is slightly different to South Africa in terms of the ability to expand on it, and it is quite different to what you see in Eastern Europe or some of the other players there. Our first objective is to provide solar to the common area. That's the easy part. We've done it. If you look at Iberia, out of our eight centers there, six of them have got solar on the roofs providing energy to the common areas of the mall. There's nice returns on that. It's usually about 15% ROI plus. Because you've got a captive market and sort of a forced off-take. There's two more malls where we need to roll that out, H2O, as well as Espai Gironès.

Speaker #2: Our first objective is to provide solar to the common area. That's the easy part. We are going to be— we’ve done it. If you look at our barrier, out of our eight sensors there, six of them have got solar on the roofs, providing energy to the common areas of the mall.

Speaker #2: There are nice returns on that. It's usually about 15% ROS plus. Because you've got a captive market and sort of a forced offtake, there's two more malls where we need to roll that out—H2O.

Justin Muller: There's nice returns on that. It's usually about 15% ROI plus. Because you've got a captive market and sort of a forced off-take. There's two more malls where we need to roll that out, H2O, as well as Espai Gironès. Once that's done, we would have achieved the objective of putting solar on the roof that feeds all the common areas, and then we'll start looking towards furthering that, whether it be batteries or selling directly to tenants. That'll be the next step, then probably won't happen for what is the remainder of this year.

Speaker #2: As well as Girona. And once that's done, we will have achieved the objective of putting solar on the roof that feeds all the common areas.

Justin Muller: Once that's done, we would have achieved the objective of putting solar on the roof that feeds all the common areas, and then we'll start looking towards furthering that, whether it be batteries or selling directly to tenants. That'll be the next step, then probably won't happen for what is the remainder of this year.

Speaker #2: And then we'll start looking towards furthering that, whether it be batteries or selling directly to tenants, but that'll be the next step and probably won't happen for at least the remainder of this year.

Speaker #1: Okay. Then what sort of valuation results are you expecting in the full-year results now that the Balcony portfolio has transacted? Do you expect this to result in cap rate compression across your portfolio?

Dawie Swarts: Okay. Then what sort of valuation results are you expecting into the full year results now that the balcony portfolio has transacted? Do you expect this to result in cap rate compression across your portfolio?

Speaker #2: Yes. Not only the BA, there are a few assets other than Balcony that have happened. I think the Balcony portfolio, the disclosed yield, I think from the media is around that 6.3% level.

Justin Muller: Yes. There's a few assets other than balcony that have happened. I think the balcony portfolio, the disclosed yield, I think, from the media is around that 6.3% level. It is a very good quality portfolio, so it doesn't necessarily mean all assets should trade at 6.3%. But given what's happened, we do believe cap rates will compress slightly from where they were in December. But I think what's a given is the NRIs have increased. We've seen 4%, 5%, 6% growth in our NRIs across the portfolio, that even if cap rates remain the same, you should be seeing the equivalent growth in valuations without even making assumptions on the cap rate compression.

Speaker #2: It is a very good quality portfolio, so it doesn't necessarily mean all assets should trade at 6.3%. But given what's happened, we do believe cap rates will compress slightly from where they were in December.

Speaker #2: But I think what's a given is the NPIs have increased. We've seen 4%, 5%, 6% growth in our NPIs across the portfolio. Even if cap rates remain the same, you should be seeing the equivalent growth in valuations.

Speaker #2: Without even making assumptions on the cap rate compression.

Speaker #1: Okay, then one last question has come in just now. Is there NPI sensitivity to energy cost increases in any of the three countries?

Dawie Swarts: Okay, then one last question has come in just now. Is there NRI sensitivity to energy costs increases in any of the three countries?

Speaker #2: So not for us as the landlords, because all the energy—I'll caveat that or clarify the answer now—but all the energy is sort of paid for by the tenants through the service charge.

Justin Muller: Not for us as the landlords, because all the energy, I'll caveat the answer now, but all the energy is sort of paid for by the tenants through the service charge. Each tenant has his own meter, and each tenant arranges his own electricity. When it comes to the service area, that's charged onto the tenant. So we, as landlords, aren't exposed there. Where you are slightly exposed is where you've got vacancies, I suppose, but it's very minimal. Razvan, is it anything-

Speaker #2: Each tenant has his own meter, and each tenant arranges his own electricity. When it comes to the service area, that's charged onto the tenant.

Speaker #2: So we as landlords aren't exposed there. Where you are slightly exposed is where you've got vacancies, I suppose. But it's very minimal. Razvan, is there anything?

Razvan Sin: Yes, but our vacancies are low, so it is a very small impact.

Speaker #3: Yes, but our vacancies are low, so it's a very small impact.

Speaker #2: So yeah, there's no—it's at the indirect risk, it's affordability of the tenants. So, if there's a massive spike in energy, the affordability of the tenants to pay higher rentals becomes a risk of reversions.

Justin Muller: The indirect risk is affordability of the tenant. There is a massive spike in energy, the affordability of the tenants to pay higher rentals, camera versions may reduce slightly, but that is an indirect risk rather than a direct one.

Speaker #2: It may reduce, reduce slightly, but that's an indirect risk rather than a direct one.

Speaker #1: Okay, that concludes all the questions.

Dawie Swarts: Okay, that concludes all the questions.

Speaker #2: Okay, great. Again, thanks for coming. I know we have got some time booked with a few of you. Look forward to it. And if there are any other questions, feel free to just drop me an email.

Justin Muller: Okay, great. Again, thanks for coming. I know we have got some time booked with a few of you. Look forward to it. If there are any other questions, feel free to just drop me an email, or Razvan, or Dawie. Great. Thank you very much for attending again, and bye.

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