Q2 2026 Montea NV Earnings Call

August 21, 2026

Speaker #1: A long-term partnership with Montea for at least 15 years. We have signed three more strong agreements in recent months at prime multimodal locations. Do you remember our recent acquisition of the former Euroshoe site in Beringe?

Speaker #1: Well, six months later, we are welcoming a new client: Klaas Retail Group, known for fashion brands such as JBC, CKS, and Maerlin. In Brussels, we strengthen our portfolio with the last-mile acquisition in Anderlecht.

Speaker #1: Of nearly 33,000 square meters, led to Bpost on a long-term lease. And also, in Willebroek, on the former Decathlon site, we are welcoming a new tenant.

Speaker #1: A global retail giant that may be somewhat less well known here in Belgium.

Speaker #2: Indeed.

Speaker #1: JD.com is the number one retailer in China. They serve millions of customers worldwide through one of the most sophisticated e-commerce and logistics ecosystems. Their partnership with MONTEA reflects their ongoing expansion across Europe.

Jo De Wolf: Their partnership with Montea reflects their ongoing expansion across Europe. In Willebroek, they will rent a site of 55,000 square meters. This is real space for growth in action. With these results, we will invest at least EUR 180 million in 2026 at an average initial yield of above 6.5%. With 95% of targeted investment volume achieved, our strategic Track27 goals are fully on track. Montea's momentum is building, and we are confident that there is much more space for growth. Good morning, ladies and gentlemen, and thank you for joining our webcast this morning. The H1 of the year demonstrate that Montea strategy is working exactly as intended. As momentum picks up across our markets, we see our clients taking strategic decisions, translated directly into leasing activity, investments, developments, and earnings growth.

[Video Narrator]: Their partnership with Montea reflects their ongoing expansion across Europe. In Willebroek, they will rent a site of 55,000 square meters. This is real space for growth in action. With these results, we will invest at least EUR 180 million in 2026 at an average initial yield of above 6.5%. With 95% of targeted investment volume achieved, our strategic Track27 goals are fully on track. Montea's momentum is building, and we are confident that there is much more space for growth.

Speaker #1: In Willebroek, they will rent a site of 55,000 square meters.

Speaker #2: This is real space for growth in action. With these results, we will invest at least €180 million in 2026, at an average initial yield of above 6.5%.

Speaker #2: And with 95% of targeted investment volume achieved, our strategic Track 27 goals are fully on track. MONTEA's momentum is building, and we are confident that there is much more space for growth.

Speaker #3: Good morning, ladies and gentlemen, and thank you for joining our webcast this morning. The first half of the year demonstrated that Montea's strategy is working exactly as intended.

Jo De Wolf: Good morning, ladies and gentlemen, and thank you for joining our webcast this morning. The H1 of the year demonstrate that Montea strategy is working exactly as intended. As momentum picks up across our markets, we see our clients taking strategic decisions, translated directly into leasing activity, investments, developments, and earnings growth.

Speaker #3: As momentum picks up across our markets, we see our clients taking strategic decisions. This has translated directly into leasing activity, investments, developments, and earnings growth. As in every quarter, I'm pleased to present these results together with our CFO, Els, and our Investor Relations Manager, Ina.

Jo De Wolf: As in every quarter, I am pleased to present these results together with our CFO, Els, and our Investor Relations Manager, Ina. Els and I will take you through the results, after which Ina will lead the Q&A session. Our EPRA EPS remains fully on track with 5% year-on-year increase, underpinned by strong 2.8% rental growth. Our portfolio, as well as our development pipeline, have seen exceptional leasing momentum with 255,000 square meters let, relet, securing an average rental uplift of not less than 16%. This progress means that we have now secured 95% of Track27, bringing us within reach of the EUR 1.15 billion target we set ourselves. At the same time, we have fully secured the funding required to deliver this growth.

Speaker #3: Els and I will take you through the results, after which Ina will lead the Q&A session. Our EPRA APS remains fully on track, with a 5% year-on-year increase, underpinned by a strong 2.8% rental growth.

Speaker #3: Our portfolio, as well as our development pipeline, have seen exceptional leasing momentum, with 255,000 square meters let or re-let, securing an average rental uplift of not less than 16%.

Speaker #3: This progress means that we have now secured 95% of Track 27, bringing us within reach of the €1.15 billion target we set ourselves. At the same time, we have fully secured the funding required to deliver this growth.

Jo De Wolf: With both investment and financing largely locked in, we have a clear runway for future earnings growth and confidence on future execution of our strategy and our promised value creation. Before diving into results, I would like to give one slide on the market update. What we see is while geopolitical uncertainty remains a reality that is unlikely to change soon, we see that occupiers are starting to look through that. 51% of occupiers are now looking to expand in the next three years, an increase not seen since 2023. Businesses have increased their confidence with 3PLs, post and parcel delivery, and e-commerce being most optimistic, along with Chinese occupiers that are increasingly active across Europe. I will come back on that later on. Last but not least, we see that occupiers are concerned because of the lack of good quality product.

Speaker #3: With both investment and financing largely locked in, we have a clear runway for future earnings growth and confidence in the future execution of our strategy and our promised value creation.

Speaker #3: Before diving into results, I would like to give one slide on a market update. What we see is that, while geopolitical uncertainty remains a reality that is unlikely to change soon, occupiers are starting to look through that.

Speaker #3: Fifty-one percent of occupiers are now looking to expand in the next three years, an increase not seen since 2023. Businesses have increased their confidence, with 3PLs, post and parcel delivery, and e-commerce being the most optimistic.

Speaker #3: Along with Chinese occupiers that are increasingly active across Europe—I will come back to that later on. And last but not least, we see that occupiers are concerned because of the lack of good quality product.

Speaker #3: Also on that topic, I will come back to it later in the presentation. As said, 255,000 square meters of letting and re-letting—145,000 of that is in the existing portfolio, but 72% of that 145,000 square meters is leased to new tenants.

Jo De Wolf: Also on that topic, I will come back later in the presentation. I said 255,000 square meters of letting and reletting, 145,000 of that is in the existing portfolio. 72% of that 145,000 square meters is leased to new tenants. We were able to increase the rent by 16% on average, in line with our ERV. When we look at the kind of leases we signed, we see that more than half of them were big box above 25,000 square meters with nice names like JD.com and CRG. Going into detail on some of the deals, the JD.com deal is a deal we did on the former Decathlon site. You remember we developed that building in 2017 for Decathlon. The lease was expiring in 2027, and we were already closing this deal today, de-risking the 2027 lease maturity profile already in 2026.

Speaker #3: And we were able to increase the rent by 16% on average, in line with our ERV. When we look at the kind of leases we signed, we see that more than half of them were big box, above 25,000 square meters, with strong names like JD.com and CRG.

Speaker #3: Going into detail on some of the deals, the JD.com deal is a deal we did on the former Decathlon site. You remember we developed that building in 2017 for Decathlon.

Speaker #3: The lease was expiring in 2027, and we were already closing this deal today, de-risking the 2027 lease maturity profile already in 2026. Another nice deal we did over the last months was with CRG.

Jo De Wolf: Another nice deal we did over the last months was with CRG, the Claes Retail Group. You remember that six months ago, we bought this building empty after the bankruptcy of Euro Shoe. We renovated the building, and at delivery, it was leased to CRG, a nice deal on a core location. We continue to sustain near full occupancy in our portfolio, outperforming the market by no less than 500 basis points. 95% of the lease maturing in 2026 have now been let or relets, only leaving us 0.6% to renegotiate over the last half year.

Speaker #3: The Klaas Retail Group, you remember that six months ago we bought this building empty after the bankruptcy of Euroshoe. We renovated the building and at delivery, it was leased to CRG.

Speaker #3: A nice deal on a core location. We continue to sustain near full occupancy in our portfolio, outperforming the market by no less than 500 basis points.

Speaker #3: Ninety-five percent of the leases maturing in 2026 have now been let or re-let, only leaving us 0.6% to renegotiate over the last half-year. And as I said, the tenants are struggling with the lack of good product, and this is something you see, in my opinion, in this graph, where you see that for good product, like our portfolio, you still have an occupancy rate of 99.4%, whereas the average of the market is now roughly between 94% and 95%.

Jo De Wolf: As I said, the tenants are struggling with the lack of good product, and this is something you see, in my opinion, in this graph where you see that for good product like our portfolio, you still have an occupancy rate of 99.4%, where the average of the market is now roughly between 94% and 95%. We also see that we are able to catch rent reversion with an average rental growth of 4% since 2022, clearly demonstrating the capturing of the reversionary potential to both indexation and positive reversion. As of today, we still have 7% of rent potential to capture, meaning future rental growth potential. Let me now focus on Track27, our growth plan. As already mentioned, 95% of the EUR 1.15 billion we want to invest is now secured. More than EUR 800 million has been invested.

Speaker #3: We also see that we are able to catch rent reversion, with an average rental growth of 4% since 2022, clearly demonstrating the capturing of the reversionary potential through both indexation and positive reversion as of today.

Speaker #3: We still have 7% of rent potential to capture, meaning future rental growth potential. Let me now focus on track 27, our growth plan. As already mentioned, 95% of the €1.15 billion we want to invest is now secured.

Speaker #3: More than €800 million has been invested. Another €90 million is under execution today, and another €180 million is under exclusive negotiation. A part of this is the remaining directly yielding acquisition we announced in Q1, which we expect to close in the very near future.

Jo De Wolf: Another EUR 90 million is under execution today, and another EUR 180 million is under exclusive negotiation. A part of this are the remaining directly yielding acquisition we announced in Q1, which we expect to close in the very near future, and at an average yield of above 6.5%, on average 6.6%. You know our four growth pillars, but I always want to repeat them. Development, acquisitions, partnerships, and green investments. Developments, 130,000 square meters of new leases signed. We will come back on that. 33,000 square meters acquired in Brussels, and of course, our ongoing partnership with the Wirtz Group in Liège. Going to the first pillar, the developments. We were able to win a tender in the Port of Antwerp for the development of a new building for DP World.

Speaker #3: And at an average yield of above 6.5%, on average 6.6%. You know our core growth pillars, but I always want to repeat them: development, acquisitions, partnerships, and green investments.

Speaker #3: Developments: 130,000 square meters of new leases signed—I will come back to that. 33,000 square meters acquired in Brussels. And, of course, our ongoing partnership with the Werth Group in Liège.

Speaker #3: Moving to the first pillar, the developments. We were able to win a tender in the Port of Antwerp for the development of a new building for DP World.

Speaker #3: We were able to sign a lease with Bosch Siemens Hausgeräte for development in Tiel, where we were able to sign a lease for 70% of this building.

Jo De Wolf: We were able to sign a lease with BSH Hausgeräte, for development in Tiel, where we were able to sign a lease for 70% of this building. So 30% is still on the market, but there are advanced discussions for these developments. This is for me a nice momentum to give you an update on the total development of Tiel. As you know, in 2018, we bought 48 hectares of land, which is the former glasswork site. We remediated the site. We developed, and I start from the right-hand side, we developed for Intergamma last year, 95,000 square meters GLA, both logistics and cross-dock platform. In the back of the site, we have a land lease with Struyk Verwo Infra for another longer period for the exterior storage of building materials.

Speaker #3: So, 30% is still on the market, but there are advanced discussions for these developments. And this is, for me, a nice moment to give you an update on the total development of Tiel.

Speaker #3: As you know, in 2018 we bought 48 hectares of land, which is the former Glassworks site. We remediated the site. We developed—and I'll start from the right-hand side—we developed for Intergamma last year 95,000 square meters GLA, both logistics and cross-dock platform.

Speaker #3: In the back of the site, we have a land lease with a strike Verbo for another longer period, for the exterior storage of building materials.

Speaker #3: The one in blue, next to Intergamma, is the one we are starting now. The 67,000 square meters, of which 70% is pre-let to BSH.

Jo De Wolf: The one in blue next to Intergamma is the one we are starting now, the 67,000 square meters of which 70% is prelet to BSH. The one in green is the one we still have on the market on the commercial process where we are actively looking for tenants. The two purple ones we developed for Overheid and are starting a development for Ario. The one in the back, the small one, the yellow one, is a very interesting one. We leased it out. It is a land lease to Milence, and Milence is building a trans-European charging platform for truck charging. This is nice because we will be able to use the energy we produce on the roofs of this park to develop or to charge the trucks that come to the park. So this is really sustainability in action.

Speaker #3: The one in green is the one we still have on the market, in the commercial process, where we are actively looking for tenants.

Speaker #3: Then the two purple ones we developed for over there, and are starting a development for Ario. And the one in the back, the small one, the yellow one, is a very interesting one.

Speaker #3: We leased it out. It's a land lease to Mylands, and Mylands is building a Trans-European charging platform for truck charging. This is nice because we will be able to use the energy we produce on the roofs of this park to charge the trucks that come to the park.

Speaker #3: So, this is really sustainability in action. In short, we have 188,000 square meters now under development in Halle for the Colruyt Group. Two projects in Tiel.

Jo De Wolf: In short, we have 188,000 square meters now under development in Halle for the Colruyt Group, two projects in Tiel, and of course, our 40% in the JV with Wirtz in Liège, which gives us another 220,000 square meters in a near-term development pipeline. After that, even 1.4 million square meters of future development potential in the portfolio. Second pillar, acquisitions. We did a very nice acquisition in Brussels, really at the entrance of Brussels. We know that Brussels is struggling to organize the last-mile logistics. You know that we have had great experience in Antwerp with the Blue Gate project, and we really intend to do the same in Brussels. The building is now leased for a long period to bpost, but this strategic plot will only become more strategic in the upcoming years.

Speaker #3: And of course, our 40% in the GV with Werth in Liège, which gives us another 220,000 square meters in a near-term development pipeline, and after that, even 1.4 million square meters of future development potential in the portfolio.

Speaker #3: Second pillar: acquisitions. We did a very nice acquisition in Brussels, really at the entrance of Brussels. We know that Brussels is struggling to organize the last mile logistics.

Speaker #3: You know that we have had great experience in Antwerp with the Blue Gate project, and we really intend to do the same in Brussels.

Speaker #3: The building is now leased for a long period to Bpost, but this strategic plot will only become more strategic in the upcoming years.

Speaker #3: Talking about the partnerships, the beautiful Sketchers project we developed together with Werth, and we're really proud of the successful partnership. The first three units out of five have now been delivered to Sketchers.

Jo De Wolf: Talking about the partnerships, the beautiful Skechers project we developed together with Wirtz, we are really proud of this successful partnership. The first three units of five have now been delivered to Skechers, who have now started the automation works in the building. Remaining phases are fully on track for this beautiful, ambitious development. Looking at the pipeline of the project beyond the successful execution, what makes this project particularly attractive for us is the earning profile. Through our joint venture structure, Montea has been generating a return on every euro invested from day one, resulting in an immediate positive contribution to our earnings. Last but not least, you know this is a very important one for me, I always emphasize on it is our land bank, where we think it is our most important competitive advantage.

Speaker #3: We have now started the automation works in the building. The remaining phases are fully on track for this beautiful, ambitious development. Looking at the project pipeline, beyond the successful execution, what makes this project particularly attractive for us is its earning profile.

Speaker #3: Through our joint venture structure, MONTEA has been generating a return on every euro invested from day one, resulting in an immediate positive contribution to our earnings.

Speaker #3: Last but not least—and you know this is a very important one for me, I always emphasize it—it's our landbank, which we think is our most important competitive advantage.

Speaker #3: We were able to add another 500,000 square meters of land under option in Q2, mainly in France. So, we continue to secure strategic land, with now close to 4 million square meters under control.

Jo De Wolf: We were able to add another 500,000 square meters of land under option in Q2, mainly in France. We continue to secure strategic land with now close to 4 million square meters under control. Knowing Montea, you know that we always plan with the long term in mind. Our first priority today is the execution, and remains the execution of Track27, but we are already preparing the future beyond Track27. One of the key growth drivers will remain this land bank and the in-house developments we can realize on them. With the French land bank now as an anchor, where we are in the process of securing 500,000 square meters of permits, we intend to continue the growth on this land bank beyond 2027. To make this very concrete, in our land bank, we see another 75% of rental growth in the upcoming years.

Speaker #3: Knowing MONTEA, you know that we always plan with the long term in mind. Our first priority today is the execution, and remains the execution, of Track 27, but we are already preparing for the future beyond Track 27.

Speaker #3: One of the key growth drivers will remain this landbank and the in-house developments we can realize on them. And with the French landbank now as an anchor, where we are in the process of securing 500,000 square meters of permits, we intend to continue the growth on this landbank beyond 2027.

Speaker #3: And to make this very concrete, in our landbank we see another 75% of rental growth in the upcoming years. But of course, growth just for the sake of growth is not really the game we're at.

Jo De Wolf: But of course, growth just for the sake of growth is not really the game we are at. We want to create value, and we think that there is around EUR 360 million of additional value remaining to be captured through these developments. This, in our opinion, highlights the unique strengths of the Montea platform. A substantial portion of our future earnings growth and value creation is already embedded in the assets we own today. With this positive message, I would like to give the floor to Els.

Speaker #3: We want to create value, and we think that there is around €350 million of additional value remaining to be captured through these developments. This, in our opinion, highlights the unique strengths of the MONTEA platform.

Speaker #3: A substantial portion of our future earnings growth and value creation is already embedded in the assets we own today. With this positive message, I would now like to give the floor to Els.

Speaker #1: Thank you very much, Joel. All of our growth is backed by a very strong balance sheet. During the first half of the year, we secured and refinanced €207 million of funding.

Els Vervaecke: Thank you very much, Jo. All of our growth is backed by a very strong balance sheet. During H1, we secured and refinanced EUR 207 million of funding. This means that we now have all the means in place to execute Track27. At the same time, we further improved the quality of our financing. We refinanced all debt maturing in 2027 well ahead of time while keeping our long-term, well-diversified financing profile with long-term interest rate protection. We also continue to maintain the cost of debt at a very low level of 2.2% on average, well below our maximum guidance of 2.5% under Track27. In short, we have the funding, the balance sheet, and the flexibility to deliver our growth plans and take new opportunities whenever they arise. Our funding position has been strengthened further.

Speaker #1: This means that we now have all the means in place to execute Track 27. At the same time, we have further improved the quality of our financing.

Speaker #1: We refinanced all debt maturing in 2027 well ahead of time, while keeping our long-term, well-diversified financing profile with long-term interest rate protection. We also continue to maintain the cost of debt at a very low level of 2.2% on average.

Speaker #1: Well below our maximum guidance of 2.5% under Track 27. In short, we have the funding, the balance sheet, and the flexibility to deliver our growth plans and take new opportunities whenever they arise.

Speaker #1: Our funding position has been strengthened further. With the refinancing done, we now have no debt maturing before 2028. At the same time, we extended the average maturity to 5.5 years, creating a well-balanced repayment profile.

Els Vervaecke: With the refinancing done, we now have no debt maturing before 2028. At the same time, we extended the average maturity to 5.5 years, creating a well-balanced repayment profile. The funding platform has been strengthened by adding three new lending relationships. Overall, our funding is well-spread over time, supported by a broader group of financing partners and fully aligned with the execution of Track27. Our financial strength is not only reflected in our funding profile, it is also recognized externally. Fitch reaffirmed our BBB+ investment-grade credit rating with a stable outlook, recognizing both the resilience of our portfolio and our disciplined financial management. For the first time, we also obtained a strong F1 short-term credit rating, all while keeping our leverage and coverage ratios within the expected levels. We continue to operate within a resilient financial framework.

Speaker #1: The funding platform has been strengthened by adding three new lending relationships. Overall, our funding is well spread over time, supported by a broader group of financing partners, and fully aligned with the execution of Track 27.

Speaker #1: Our financial strength is not only reflected in our funding profile; it is also recognized externally. Fitch reaffirmed our triple B plus investment-grade credit rating, with a stable outlook.

Speaker #1: Recognizing both the resilience of our portfolio and our disciplined financial management. For the first time, we also obtained a strong F1 short-term credit rating.

Speaker #1: All while keeping our leverage and coverage ratios within the expected levels. We continue to operate within a resilient financial framework. All remaining Track 27 investments are fully funded and covered within our around 8 times adjusted net debt-to-EBITDA barrier.

Els Vervaecke: All remaining Track27 investments are fully funded and covered within our around eight times adjusted net debt on EBITDA barrier. We maintain our financial discipline, and we continue to protect the strength of our balance sheets while keeping the flexibility to capture new opportunities and, of course, market momentum. Based on this strong H1 performance, we reaffirm our guidance for both 2026 and 2027, keeping us firmly on track to deliver the 7% annual EPS growth ambition of Track27. We have our 2027 EPS target of EUR 5.60 in sight. Thanks to the strong performance of our existing portfolio, the continued like-for-like rental growth, additional income from recently completed projects, and of course, from new directly yielding investments. With our growth pipeline secured, funding in place, and earnings feasibilities continuing to improve, we remain confident about the road ahead.

Speaker #1: We maintain our financial discipline, and we continue to protect the strength of our balance sheet, while keeping the flexibility to capture new opportunities and, of course, market momentum.

Speaker #1: Based on this strong first half-year performance, we reaffirm our guidance for both '26 and '27, keeping us firmly on track to deliver the 7% annual EPS growth ambition of Track 27.

Speaker #1: We have our 2027 EPS target of €5.60 in sight, thanks to the strong performance of our existing portfolio, continued like-for-like rental growth, additional income from recently completed projects, and, of course, from new directly yielding investments.

Speaker #1: With our growth pipeline secured, funding in place, and earnings feasibilities continuing to improve, we remain confident about the road ahead. I will now hand back to you, Joel.

Els Vervaecke: I will now hand back to you, Jo.

Speaker #2: Thank you, Els. So, in conclusion, we see strong leasing momentum with 255,000 square meters signed over the last six months. We see significant progress on Track 27, with 95% now secured.

Jo De Wolf: Thank you, Els. In conclusion, we see strong leasing momentum with 255,000 square meters signed over the last six months. We see significant progress on Track27, with 95% now secured, and with a fully funded investment pipeline. As Els mentioned, it provides us confidence in the earnings trajectory ahead with a 7% earnings per share growth over the next years. Backed by a strategic land bank, sorry to repeat it again, but backed by a strategic land bank, deep local market expertise with our local teams, and a high-quality portfolio, Montea is well-positioned to translate future market demands into sustainable long-term growth. With this message, I will now hand over to Inna for the Q&A session.

Speaker #2: And with a fully funded investment pipeline, as Els mentioned, it provides us confidence in the earnings trajectory ahead, with 7% earnings per share growth over the next years.

Speaker #2: Backed by a strategic landbank—sorry to repeat it again—but backed by a strategic landbank, deep local market expertise with our local teams, and a high-quality portfolio, MONTEA is well positioned to translate future market demand into sustainable, long-term growth.

Speaker #2: And with this message, I will now hand over to Ina for the Q&A session.

Speaker #1: Thank you, Joel, and good morning, everyone. As you know, you have two options to ask your questions. If you're joining us via webcast, please feel free to raise your hand.

Inna Maslova: Thank you, Jo. Good morning, everyone. As you know, you have two options to ask your questions. If you are joining us via webcast, please feel free to raise your hands. In case you are joining us through the dial-in option, please press pound key 5 to enter the queue. If you want to withdraw your question, press pound key 6. Our first question is from Suraj at Green Street. Suraj, your line is now open.

Speaker #1: And in case you're joining us through the dial-in option, please press the pound key, five, to enter the queue. And if you want to withdraw your question, press the pound key, six.

Speaker #1: Our first question is from Suraj at Green Street. Suraj, your line is now open.

[Analyst] (Green Street): Good morning. Thanks. Two, my question, just a couple. First one is on the EPS. It just looks like it is lagging a little bit in H1. I know you reiterated your 2026 EPS guidance. Is it possible just to help us understand how you bridge the gap? Maybe I will ask a second question afterwards.

Suraj Goyal: Good morning. Thanks. Two, my question, just a couple. First one is on the EPS. It just looks like it is lagging a little bit in H1. I know you reiterated your 2026 EPS guidance. Is it possible just to help us understand how you bridge the gap? Maybe I will ask a second question afterwards.

Speaker #3: Good morning. Thanks for taking my question. Just a couple. The first one is on EPS. It just looks like it's lagging a little bit in one half year.

Speaker #3: I know you reiterated your 2026 EPS guidance. Is it possible to help us understand how you'll bridge the gap? Maybe I'll ask the second question afterwards.

Speaker #4: What you mean is, actually, that we are currently at 5% growth, while the guidance is 7%? Yeah. Yeah, that's clear. Of course, the 2% remaining is the recognition of MONTEA in the Netherlands as FBE for fiscal year 2024.

Els Vervaecke: What you mean is actually that we are currently at a 5% growth while the guidance is 7%?

[Analyst] (Green Street): Correct. Yeah.

Suraj Goyal: Correct. Yeah.

Els Vervaecke: Yeah, that's clear. The 2% remaining is the recognition of Montea in the Netherlands FBI for fiscal year 2024. We are still awaiting that recognition, which will represent roughly EUR 0.08, the 2% that is missing.

Speaker #4: So we are still awaiting that recognition, which will represent roughly $0.08, the 2% that is missing.

Speaker #3: Okay, thank you. And then the second one was just on France. I think you still mentioned that you're trying to aim for the 500,000 square meters of permitted land by the end of '27.

[Analyst] (Green Street): Okay, thank you. The second one was just on France. You still, I think, mentioned that you're trying to aim for the 500,000 square meters of committed land by end of 2027, but have 150,000 secured today. I just wanted to understand, is that still the realistic goal by the end of next year? Is planning maybe the main constraint to accelerating in France right now rather than occupier demand?

Suraj Goyal: Okay, thank you. The second one was just on France. You still, I think, mentioned that you're trying to aim for the 500,000 square meters of committed land by end of 2027, but have 150,000 secured today. I just wanted to understand, is that still the realistic goal by the end of next year? Is planning maybe the main constraint to accelerating in France right now rather than occupier demand?

Speaker #3: But you have 150,000 today. I just wanted to understand—is that still sort of the realistic goal by the end of next year? And is planning maybe the main constraint to accelerating in France right now, rather than occupier demand?

Speaker #2: Well, as in every country, planning and permitting is the main challenge in our projects. But we are well on track. We see that when we make that message, it's because we have the visibility to get the permits in place.

Jo De Wolf: Well, as in every country, planning and permitting is the main challenge in our projects, but we are well on track. We see that when we make that message, it's because we have the visibility to get the permits in place. Let's not forget that a lot of the land in France that we buy is subject to obtaining those permits. That also means that we did not have to invest in the land prior to obtaining the permit. So we are well confident that we will obtain these in this year or the beginning of next year. But in the meanwhile, they are less difficult for us because we don't have to buy the land until they have the permit.

Speaker #2: Let's not forget that a lot of the land in France that we buy is subject to obtaining those permits. So that also means that we did not have to invest in the land prior to obtaining the permit.

Speaker #2: So we are well confident that we will obtain these in this year or at the beginning of next year. But in the meanwhile, they are less difficult for us because we don't have to buy the land until they have the permits.

Speaker #1: And Joel, maybe to add, as of today, we've already secured the 150,000 square meters of GLA that we were planning to do until the end of 2027.

Inna Maslova: Jo, maybe to add, as of today, we've secured 150,000 square meters already of the GLA that we were planning to do until the end of 2027. So we definitely have work ongoing there, and we're confident that we can reach the remaining 350.

Speaker #1: So we definitely have work ongoing there, and we're confident that we can reach the remaining 350.

Speaker #2: Yeah. Absolutely. Thank you.

Jo De Wolf: Absolutely.

[Analyst] (Green Street): Okay, thank you.

Suraj Goyal: Okay, thank you.

Speaker #1: Thanks, Suraj. Our next question on the line is from Lynn at KBC Securities. Lynn, your line is now unmuted.

Inna Maslova: Thanks, Suraj. Our next question on the line is from Lynn at KBC Securities. Lynn, your line is now unmuted.

[Analyst] (KBC Securities): Hi. Good morning, everyone. I have two questions. My first question was on France and the development potential that you have there. I was just wondering if the WDP and Argan combination changed your perspective on the French market, given the potential increase of competitive pressures, and if you would maybe target a different set of tenants or building type in the future going forward?

Speaker #4: Hi, good morning everyone. I have two questions. My first question is also on funds and the development potential that you have there. I was just wondering if the WDE-Argonne combination changes your perspective on the French market, given the potential increase in competitive pressures?

Speaker #4: And if you would, maybe target a date of tenant or building type in the future, going forward.

Speaker #2: Well, thank you, Lynn, for your question. Let's say that WDP was our first competitor in the Benelux, and Argonne was our first competitor in France.

Jo De Wolf: Well, thank you, Lynn, for your question. WDP was our first competitor in the Benelux. Argan was our first competitor in France. So them joining forces doesn't really change the needle for us. It's just the same people, it's the same that we were encountering on the current market. So no, that doesn't really change for us the dynamics. Of course, it's the DNA of Argan, the DNA of WDP, and the DNA of Montea is, in that sense, comparable, that we all try to capture value by in-house developments. In that perspective, I think Montea is well-equipped, as we already mentioned, by the land bank we developed. If you compare it relative to the total portfolio size, we have the largest land bank of all players in the European market.

Speaker #2: So then, joining forces doesn't really move the needle for us. It's just the same people; it's the same that we were encountering in the current market.

Speaker #2: So no, that doesn't really change for us the dynamics. Of course, it's the DNA of Argonne, the DNA of WDP, and the DNA of MONTEA. In that sense, it's comparable that we all try to capture value by in-house developments.

Speaker #2: In that perspective, I think MONTEA is well equipped, as we already mentioned. With the land bank we developed—if you compare it relative to the total portfolio size—we have the largest land bank of all players in the European market.

Speaker #2: So we are really confident that we are able to continue our growth plan on our own landbank, and the merger of Argonne WDP doesn't really change anything for us on the French market.

Jo De Wolf: We are really confident that we are able to continue our growth plan on our own land bank. The merger of Argan, WDP does not really change for us on the French market.

Speaker #4: Okay, perfectly clear. And then, second question is on your operational margin — or, yeah, your EPRA cost ratio. Your guidance for 2027 is a 90% operational margin, but if I see it, it actually comes down a bit.

[Analyst] (KBC Securities): Okay, perfectly clear. Second question is on your operational margin or EPRA cost ratio. Your guidance for 2027 is 90% operational margin. If I see it actually comes down a bit, and I understand there is some seasonality, but could you elaborate on why it has been coming down and how comfortable you are in reaching that 90% next year?

Speaker #4: And I understand there is some seasonality, but maybe could you elaborate on why it's been coming down and how comfortable you are in reaching that 90% next year?

Speaker #4: Yeah. Compared to last year, it's more or less in line. So indeed, we have been speeding up the investment in the teams in the different countries to get the growth done, which has a slight impact on our operating margin or the EPRA cost ratio.

Els Vervaecke: Yeah. Comparing to last year, it is more or less in line. Indeed, we have been speeding up in investing in the teams in the different countries to get the growth done, which has a slight impact on our operating margin or the EPRA cost ratio. This being said, I think with this cost ratio, we are in the top 10 of the EPRA universe with the best performing or the highest occupancy rate. Indeed, the target for 2027 can be reaffirmed to 90% operating margin for 2027.

Speaker #4: That being said, I think with this cost ratio, we are in the top 10 of the EPRA universe, with the best-performing or the highest occupancy rate.

Speaker #4: And indeed, the target for 2027 can be reaffirmed to a 90% operating margin for 2027. Okay, thank you.

[Analyst] (KBC Securities): Okay. Thank you.

Speaker #2: Thank you, Lynn.

Jo De Wolf: Thank you, Lynn.

Speaker #1: Thank you, Lynn. Our next question comes from Steven at ABN. Your line is now unmuted.

Inna Maslova: Thank you, Lynn. Our next question comes from Steven at ABN. Your line is now unmuted.

Speaker #3: Hi, good morning, and thank you for taking my questions. I have two—I'll ask them separately. So first: looking at your recent leasing track record, large-scale occupier demand seems to be improving, and is better than stated in Q1 and before.

[Analyst] (ABN): Hi, good morning, and thank you for taking my questions. I have two. I will ask them separately. First, looking at your recent leasing track record, large-scale occupied demand seems to be improving and being better than stated in Q1 and before. What changed most during the quarter? Is it tenant decision-making, pricing, sector demand, or anything else? Also, how should we reconcile your leasing and comments with the rising market vacancy that you show on slide 9?

Steven Boumans: Hi, good morning, and thank you for taking my questions. I have two. I will ask them separately. First, looking at your recent leasing track record, large-scale occupied demand seems to be improving and being better than stated in Q1 and before. What changed most during the quarter? Is it tenant decision-making, pricing, sector demand, or anything else? Also, how should we reconcile your leasing and comments with the rising market vacancy that you show on slide 9?

Speaker #3: What changed most during the quarter—is it tenant decision-making, pricing, sector demand, or anything else? And also, how should we reconcile your leasing comments with the rising market vacancy that you show on Slide 9?

Speaker #2: Yeah. Thank you, Steve, for that question. First of all, it's not repricing—that we are very clear about. If we were able to increase the rents by 16%, it shows that we have this... When we say there is rent reversion potential in our portfolio, we really show that it is there.

Jo De Wolf: Yeah. Thank you, Steven, for that question. First of all, it is not repricing. Let us be very clear. If we were able to increase the rents by 16%, it shows that we have this, when we say there is rent reversion potential in our portfolio, we really show that it is there. So it is not about lowering the prices, so let us be very clear on that. I think a lot of the deals we did just take much longer as they did in the past. We all remember those, I would say after the Corona crisis, 2021, 2022, where parties needed to decide within two to three months because otherwise there was competition and somebody else was taking the space. Now we see that they take their time. It is taking longer to take a decision. So that is why there has been a bit of a delay.

Speaker #2: So it's not about lowering the prices, so let's be very clear on that. I think what a lot of the deals—we did just take much longer than they did in the past.

Speaker #2: We all remember those, I would say, '21 after the corona crisis—'21, '22—where parties needed to decide within two to three months, because otherwise there was competition and somebody else was taking the space.

Speaker #2: Now we see that they take their time. It's taking longer to make a decision, so that's why there has been a bit of a delay.

Speaker #2: I think that uncertainty is the new normal. It's a bit of a catchphrase, but I believe it's true—uncertainty is the new normal. Those who said they were going to wait until they have more visibility in the market now understand that it's not about to come.

Jo De Wolf: I think that uncertainty is the new normal. It's a bit of a catchphrase, but I think it's true. Uncertainty is the new normal. Those who said we are going to wait until we have more visibility in the market, they now understand that it's not about to come. Operationally, they were stressed, and they needed to take a decision, and now they start acting again. Maybe last point I want to make, and it's a repetition of what I said during the presentation. We see the clear distinction between the A product being a sustainable new product on a top location compared to everything else. And you see that on that A product, there is still a lot of competition. It's much more difficult if you have B product. This can be on B locations.

Speaker #2: Operationally, they were stressed and they needed to make a decision. And now they are starting to act again. Maybe the last point I want to make—and it's a repetition of what I said during the presentation.

Speaker #2: We see the clear distinction between the A product—A product being a sustainable, new product—compared to an A location, a top location, compared to everything else.

Speaker #2: And you see that on that A product, there is still a lot of competition. It's much more difficult if you have B product; this can be on B locations, that can be a bit older buildings, not really in line with current demand.

Jo De Wolf: It can be a bit of older buildings, not really in line with current demand, then you are struggling. But luckily, we have this strategic well-positioned portfolio. A lot of people forget that, but 10 years ago, we already did a lot of asset rotation in the portfolio. I've always said that we focus on those strategic long-term leases. If you look at the first break dates on average in our portfolio, it's above 6 years, which is quite unique in the market, but it's really because we focus on that prime product. So I think that is, in my opinion, the main reason why you see that difference between our 99.4% and the average in the market, which stands around 94.5%.

Speaker #2: Then you are struggling. But luckily, we have this strategic well-positioned portfolio. We did a lot of a lot of people forget that, but 10 years ago, we already did a lot of asset rotation in the portfolio.

Speaker #2: I've always said that we focus on those strategic, long-term leases. If you look at the first break dates on average in our portfolio, it's above six years, which is quite unique in the market. But it's really because we focus on that prime product.

Speaker #2: So I think that is, in my opinion, the main reason why you see that difference between our 99.4% and the average in the market, which stands around 94.5%.

Speaker #3: Okay, very clear. Maybe a second question, if I may. If I recall correctly, you have started some small speculative developments—something you didn't do that much before.

[Analyst] (ABN): Okay, very clear. Maybe a second question, if I may. If I recall correctly, you have started some small speculative developments, something you didn't do that much before. Can we expect more of those speculative develop starts going forwards, and to what extent?

Steven Boumans: Okay, very clear. Maybe a second question, if I may. If I recall correctly, you have started some small speculative developments, something you didn't do that much before. Can we expect more of those speculative develop starts going forwards, and to what extent?

Speaker #3: Can we expect more of those speculative developments starting going forward, and to what extent?

Speaker #2: Well, we've always been very clear, Steven, that for our developments we would start based on a 50% pre-lease. We've done that in France. We've done that in Holland before.

Jo De Wolf: Well, we've always been very clear, Steven, that for our developments, we would start based on a 50% pre-let. We've done that in France, we've done that in Holland before, and we are doing that now in Tiel. It's 70% pre-let, so we feel confident that there are already ongoing discussions for the remaining 30%. So there our strategy is unchanged. Speculative development is part of our scope, but only if there is 50% pre-let. And on that, if I can assure you, every time we've done that in the past, we were able to lease out the entire building before the delivery date. So we have a very strong track record on that topic.

Speaker #2: And we are doing that now in Tiel. It's 70% pre-let, so we feel confident. There are already ongoing discussions for the remaining 30%.

Speaker #2: So there, our strategy is unchanged. Speculative development is part of our scope, but only if there is 50% pre-lease. And on that, I can assure you, every time we've done that in the past, we were able to lease out the entire building before the delivery date.

Speaker #2: So we have a very strong track record on that topic.

Speaker #4: Yeah. And looking at the total portfolio of developments in execution, the pre-lease level still stands at 92%.

Inna Maslova: Yeah. Looking at the total portfolio of developments in execution, the pre-let level still stands at 92%.

Els Vervaecke: Yeah. Looking at the total portfolio of developments in execution, the pre-let level still stands at 92%.

Speaker #3: Yeah, that's very clear. Just wondering, indeed, for the future. But that's clear. Thank you.

[Analyst] (ABN): Yeah. That's very clear. Just wondering indeed for the future, but that's clear. Thank you.

Steven Boumans: Yeah. That's very clear. Just wondering indeed for the future, but that's clear. Thank you.

Speaker #4: Thank you, Steven.

Inna Maslova: Thank you, Steven.

Els Vervaecke: Thank you, Steven.

Speaker #2: Thank you, Steven.

Jo De Wolf: Thank you, Steven.

Speaker #1: Thanks, Steven. Our next question comes from John at Van Landgoed Kempen. Your line is now live.

Inna Maslova: Thanks, Steven. Our next question comes from John at Van Lanschot Kempen. Your line is now live.

Speaker #5: Hi, good morning. I hope you can hear me. I want to follow up on Steven's questions. Looking at the leases that you signed, the JD leases are overlapping with, I suppose, refurbishment, and the BSH1 is a new development.

[Analyst] (Van Lanschot Kempen): Hi. Good morning. Hope you can hear me. I want to follow up on Steven's questions. Looking at the leases that you signed, the JD leases are reletting, with, I suppose, refurbishment, and the BSH one is a new development. At the same time, you are mentioning that occupiers are concerned about the lack of good quality demands. They take longer to make decisions, but once a decision is made, do you sense that whether demand out there really has the patience to wait for the space that they are taking up, or do they want it as soon as possible once they make this decision?

John Vuong: Hi. Good morning. Hope you can hear me. I want to follow up on Steven's questions. Looking at the leases that you signed, the JD leases are reletting, with, I suppose, refurbishment, and the BSH one is a new development. At the same time, you are mentioning that occupiers are concerned about the lack of good quality demands. They take longer to make decisions, but once a decision is made, do you sense that whether demand out there really has the patience to wait for the space that they are taking up, or do they want it as soon as possible once they make this decision?

Speaker #5: So, the timelines until the tenant can move in are quite different. At the same time, you are mentioning that occupiers are concerned about the lack of good quality demand.

Speaker #5: They take longer to make decisions, but once a decision is made, do you sense that, where the demand is out there, people really have the patience to wait for this space that they're taking up?

Speaker #5: Or do they want it as soon as possible once they make this decision?

Speaker #2: Well, we have the advantage in logistics that the throughput time of a project is rather short. We can deliver once we have the permit.

Jo De Wolf: Well, we have the advantage in logistics that the throughput time of a project is rather short. Once we have the permit, we can deliver within 9 to 12 months. So, for me, and I have always said that it is not a reason to do speculative development. Sometimes in real estate, you say you have to do spec in order to catch the demand at delivery. We are not really convinced of that. We really focus on pre-letting. So there we do not change our strategy. JD, they will start immediately. BSH, they can wait. DP World, it is a tender they organize themselves. It is a beauty contest they organize together with the Port of Antwerp. So it is a process they manage. So they are well aware that there is a timing of 12 to 18 months, including their internal works that need to be done.

Speaker #2: We can deliver within 9 to 12 months. So that's not really for me, and I've always said that—it's not a reason to do speculative development.

Speaker #2: Sometimes in real estate, you say you have to do spec in order to catch the demand at delivery. We are not really convinced of that.

Speaker #2: We really focus on pre-letting. So there, we don't change our strategy. JD, they will start immediately. BSH, they can wait. And, of course, DP World—it's a tender they organize themselves.

Speaker #2: It's a beauty contest they organize together with the Port of Antwerp, so it's also a process they manage. They are well aware that there is a timeline of 12 to 18 months, including their internal works that need to be done.

Speaker #2: So, timing is not really an issue.

Jo De Wolf: The timing is not really an issue.

Speaker #5: Okay, that's clear. Thank you. And then in Q1, you mentioned that you had four acquisitions signed. I suppose the Brussels one is one of those four, and you closed that.

[Analyst] (Van Lanschot Kempen): Okay. That is clear. Thank you. In Q1, you mentioned that you had four acquisitions signed. I suppose the Brussels one is one of those four, and you closed that. Could you provide a bit more color on the progress for the remainder and also whether closing these are included in your 2026 DPS guidance?

John Vuong: Okay. That is clear. Thank you. In Q1, you mentioned that you had four acquisitions signed. I suppose the Brussels one is one of those four, and you closed that. Could you provide a bit more color on the progress for the remainder and also whether closing these are included in your 2026 DPS guidance?

Speaker #5: Could you provide a bit more color on the progress for the remainder, and also whether closing these is included in your 2060 PS guidance?

Speaker #2: I'm always looking ahead, so if we are looking back, then I give the floor to Ina.

Jo De Wolf: I am always looking ahead, so if we are looking back, then I give the floor to Ina.

Speaker #1: No, John, so you're referring to the €90 million to close at above a 6.5% net initial yield. So, yes, indeed, one of which was Bpost.

Inna Maslova: No, John. You are referring to the EUR 90 million to close at above 6.5% net initial yield. We are indeed, one of which was bpost. It was an EUR 80 million acquisition that we now closed in June. The remaining mix, it is a couple of acquisitions. I do not think we have confirmed exactly how many we will be doing. But the remaining mix is EUR 70 million, which are now in final stages of closing. So we expect to provide news on that very shortly. We indeed confirm the same target of yields at above 6.5%, which of course, will feed directly into our earnings towards the end of this year as well as next.

Speaker #1: It was an €80 million acquisition that we closed in June. The remaining mix is a couple of acquisitions— I don't think we've confirmed exactly how many we will be doing.

Speaker #1: But the remaining mix is €70 million, which are now in the final stages of closing. So we expect to provide news on that very shortly.

Speaker #1: And we indeed confirm the same target of yield at above 6.5%, which, of course, will feed directly into our earnings towards the end of this year as well as next.

Speaker #5: Okay. That's clear. Thank you.

[Analyst] (Van Lanschot Kempen): Okay. That is clear. Thank you.

John Vuong: Okay. That is clear. Thank you.

Speaker #4: Thank you.

Inna Maslova: Thank you.

Els Vervaecke: Thank you.

Speaker #2: Thank you, John.

Jo De Wolf: Thank you, John.

Speaker #1: Thank you, John. And our next question comes from Francesca at ING. Your line is now open.

Inna Maslova: Thank you, John. Our next question comes from Francesca at ING. Your line is now open.

[Analyst] (ING): Hello. Good morning, everybody. Can you hear me?

Francesca Ferragina: Hello. Good morning, everybody. Can you hear me?

Speaker #6: Hello. Good morning, everybody. Can you hear me?

Speaker #2: Yes. Good morning, Francesca.

Jo De Wolf: Yes. Good morning, Francesca.

[Analyst] (ING): Hello. I have questions. The first one is escalating a bit the question of Lina KBC on sector consolidation. We have an important consolidation trend across the logistics sector. How Montea is looking at this? What is your view and what type of strategic opportunities or strategic risk do you see in the recent deals that we have seen? Should I go one by one?

Francesca Ferragina: Hello. I have questions. The first one is escalating a bit the question of Lina KBC on sector consolidation. We have an important consolidation trend across the logistics sector. How Montea is looking at this? What is your view and what type of strategic opportunities or strategic risk do you see in the recent deals that we have seen? Should I go one by one?

Speaker #6: Hello. I have questions. The first one is to build a bit on Lina's question from KBC about sector consolidation. We are seeing an important consolidation trend across the logistics sector.

Speaker #6: How is Montea looking at this? What is your view, and what types of strategic opportunities or strategic risks do you see in the recent deals that we have seen?

Speaker #6: Should I go one by one?

Speaker #2: Yes, that's maybe easier, Francesca. I will take that one. I agree. But what we see today in the market is definitely a mismatch between the public and the private markets.

Jo De Wolf: Yes, that's maybe easier, Francesca. I will take that one.

[Analyst] (ING): Yeah.

Francesca Ferragina: Yeah.

Jo De Wolf: I agree that what we see today in the market is definitely a mismatch between the public and the private markets. If we want to buy an asset, the yields we have to buy, and we then look at the share prices on the public market, there is indeed a mismatch there, which leads to more pressure on M&A. We, from our side, we want to continue to focus on value creation, as I said, through the land bank, through our local teams, through rent reversion. We are not really playing on that market today, and every opportunity that would come by would, of course, have to lead to EPS growth or significant NTA growth. Otherwise, if it's just growing for the sake of growing, we will never do it because it would dilute the potential of our land bank in more shares.

Speaker #2: If we look, if we want to buy an asset, at the yields we have to buy, and we then look at the share prices on the public market, there is indeed a mismatch there, which leads to more pressure on M&A.

Speaker #2: From our side, we want to continue to focus on value creation, as I said, through the land bank, through our local teams, and through rent reversion.

Speaker #2: So, we are not really playing in that market today. Any opportunity that would come by would, of course, have to lead to EPS growth or significant NTA growth.

Speaker #2: Otherwise, if it’s just growing for the sake of growing, we will never do it, because it would dilute the potential of our land bank in more shares.

Speaker #2: So, yeah, we are well aware of that mismatch today, but it's not our first focus today.

Jo De Wolf: So, we are well aware of that mismatch today, but it is not our first focus today.

Speaker #6: Okay, another question for you, Joe. You're always looking ahead, so that's the question for you. Track 2027 is approaching its completion. Today, you look more confident when it comes to dynamics among tenants.

[Analyst] (ING): Okay. Another question for you, Jo. You are always looking ahead, so that is the question for you. Track27 is approaching its completion. Today, you look more confident when it comes to dynamics among tenants. When should we expect an update about your next strategic plan and key priorities, let us say up to 2030?

Francesca Ferragina: Okay. Another question for you, Jo. You are always looking ahead, so that is the question for you. Track27 is approaching its completion. Today, you look more confident when it comes to dynamics among tenants. When should we expect an update about your next strategic plan and key priorities, let us say up to 2030?

Speaker #6: When should we expect an update about your next strategic plan and key priorities, let's say up to 2030?

Speaker #2: You will understand, Francesca, that I will not give you a date on that. Unfortunately, I cannot give it. But let me assure you that if you look at the land bank, if you look at the potential we are building there, of course we want...

Jo De Wolf: You will understand, Francesca, that I will not give you a date on that. Unfortunately, I cannot give it. But let me assure you that if you look at the land bank, if you look at the potential we are building there, of course, we want to continue the growth story. We want to continue on those strong KPIs, both on EPS growth, on NTA growth. So yes, there will, of course, one day be a new growth plan. It is not for today, unfortunately, but we are working on it behind the scenes. And I think when we say that we have now a land bank of 4 million square meters, that should be the best indicator that we are still able to continue that growth plan.

Speaker #1: We want to continue the growth story. We want to continue on those strong KPIs, both on EPS growth and on NTA growth.

Speaker #1: So yes , I will . Of course , one day be a new growth plan . It's not for today , unfortunately . But we are working on it behind the scenes .

Speaker #1: And I think when we say that we have now a land bank of 4,000,000 m², that should be the best indicator that we are still able to continue that growth plan.

Speaker #2: Okay . And maybe another question . We we see peers becoming more active a little bit more active when it comes to asset rotation .

[Analyst] (ING): Okay. And maybe another question. We see peers becoming more active, a little bit more active when it comes to asset rotation. Is this something that might be of interest also for yourself?

Francesca Ferragina: Okay. And maybe another question. We see peers becoming more active, a little bit more active when it comes to asset rotation. Is this something that might be of interest also for yourself?

Speaker #2: Is this something that might be of interest also for yourself?

Speaker #1: Absolutely . But as I mentioned , we already did a lot of asset rotation back . I would say ten to between 10 and 15 .

Jo De Wolf: Absolutely. But as I mentioned, we already did a lot of asset rotation back, I would say between 2010 and 2015, between 2011 and 2016. We already did quite some asset rotation, light industrial. I remember some of my competitors saying at the time, "Well, every time you sell a building, you're selling a client," which was partly true. But on the other hand, it gave us the equity to continue the growth and to continue in those strategic long-term assets. We're really happy for the fact that we did that in the past. Now, for me, when the share price is at the level it is today, if I would have to raise capital today, I would have to get hurdle rates above 7% in order to create EPS growth. That doesn't make sense.

Speaker #1: Between 2011 and 2016 , we already did quite some asset rotation light industrial . I remember some of my competitors saying at the time , well , every time you sell a building , you're selling a client , which was partly true .

Speaker #1: But, on the other hand, it gives us the equity to continue the growth and to continue in those strategic long-term assets.

Speaker #1: So we're really happy for the fact that we did that in the past . Now , for me , when the share price is at a level it is today , if I would have to raise capital today , I would have to get hurdle rates above 7% in order to create EPS growth .

Speaker #1: That doesn't make sense . So for us , asset rotation as part of a growth strategy where you say , I want to create shareholders value by rotating in the portfolio , that's an exercise we really making in every individual country on every individual asset line .

Jo De Wolf: For us, asset rotation as part of a growth strategy where you say, "I want to create shareholders value by rotating in the portfolio," that's an exercise we're really making in every individual country, on every individual asset line. It's not our preferred scenario. We would like to continue both growing EPS, NTA, but also the portfolio. It's our ambition to grow. But if it doesn't create value, then asset rotation will definitely be part of the strategy of our future growth, absolutely. It's not our first option, but if we have to do it, we will do it.

Speaker #1: It's not our preferred scenario . We would like to continue both growing EPs and to , but also the portfolio . It's our ambition to grow .

Speaker #1: But if it doesn't create value, then asset rotation will definitely be part of the strategy for our future growth. Absolutely. So, it's not our first option.

Speaker #1: But if we have to do it, we will do it.

[Analyst] (ING): And quickly, the question is on the Decathlon. Out of curiosity, why didn't they renew the leasing there, do you think?

Francesca Ferragina: And quickly, the question is on the Decathlon. Out of curiosity, why didn't they renew the leasing there, do you think?

Speaker #2: Thank you . The question is on the out of curiosity , why did the new the disease in their building ?

Speaker #1: We didn't—we did not understand your question. I think there's a problem with the line. Francesca, could you repeat it?

Jo De Wolf: We did not understand your question. I think there's a problem with the line, Francesca. Could you repeat it?

Speaker #2: Can you hear me? Why are you...? Why renew the leasing?

[Analyst] (ING): Can you hear me? Why didn't they renew the leasing?

Francesca Ferragina: Can you hear me? Why didn't they renew the leasing?

Speaker #3: Francesca . I think the line . The line was quite bad again . Perhaps I can either ask you to submit the question via the chat .

Inna Maslova: Francesca, I think the line was quite bad again. Perhaps I can either ask you to submit the question via the chat, or we can take

Speaker #3: Or we can pick it up offline afterwards, if that's okay with you.

[Analyst] (ING): Yes.

Francesca Ferragina: Yes.

Inna Maslova: it up offline afterwards, if that's okay for you.

[Analyst] (ING): No. Yeah, no worries.

Francesca Ferragina: No. Yeah, no worries.

Speaker #2: Yeah . No worries

Speaker #1: Thank you . Francesca .

Jo De Wolf: Thank you, Francesca.

Speaker #3: Thank you. Thank you. It appears we don't have any remaining questions in the queue, so over to you for the concluding remarks.

Inna Maslova: Thank you. It appears we don't have any remaining questions in the queue, so Jo, over to you for the concluding remarks.

Speaker #1: Thank you very much. And thank you very much for your questions. I hope that through this call, we were able to prove to you that MONTEA has momentum.

Jo De Wolf: Thank you very much, Inna, and thank you very much for your questions. I hope that through this call, we were able to prove to you that Montea's momentum is building, and we are confident that there is much more space for growth to come. Thank you all for joining the call. Thanks for your time, and I already wish you a great weekend. Thanks.

Speaker #1: ...is building, and we are confident that there is much more space for growth to come. Thank you all for joining the call.

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Q2 2026 Montea NV Earnings Call

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