Hey, good morning. This is Remon Vos speaking. First of all, just back from New York and, this is it, the medal for the New York Marathon, well below four hours. Welcome to you all, and I'm happy to report good news. Third quarter, we have continued to see strong performance with more leases being signed this year compared to last year, a total of 1.4 million square meters. The leases we've done so far this year are 16.16% up in terms of rent per square meter per month, and we're now getting EUR 5.6 per square meter per month.
During the Capital Markets Day, earlier this year in September, we have given you some examples on how we were able to increase the rents, in particular in the Czech Republic, but as well in Germany. Now, we are market leader in most of the countries where we operate, especially Central European countries, of course, Czech, Slovakia, Hungary, Romania. So we have a very good feel of the market. We know what's going on. We have been first movers. We have been on the ground for many years with fantastic people who run those countries, and I have the pleasure of working with them.
I do continue to travel a lot, one day per week in Prague, the rest of the week in the countries, meet the colleagues, meet the clients, see land sites, see construction sites, and, that's very good and very important, we believe, to maintain that close relationship. That's very good. We are happy to see the performance in the different countries. CTP's core business to grow the business parks and utilize the land bank, the land which we own within the different parks. And we can also see that looking back at the leases we've done so far, two-thirds of all the leases signed are with existing clients, and, we continue to see strong demand.
Mostly clients who have established their business in Central Europe or in our park are happy, and they normally grow their business, bring more activity to that site. Can be manufacturing, can be, logistics, all different type of things. Manufacturing, in particular in the CEE region, Business Park, as we call it, ideal for, manufacturing for Europe, in Europe. Lots of benefits, highly competitive labor costs compared to Western European, labor, costs, but also qualifications, productivity. Good infrastructure in, Central Europe, but also support from local governments, which, makes it a very pleasant place to, to do business. And, I may say that we are at home in this part of the world, and, yeah, we benefit from a large network of clients, but also contacts we have in the markets.
We see not just from manufacturing sector, but also from the 3PLs. We see demand throughout the portfolio. Obviously, the characteristics of the markets of Central Europe have been that there was a lack of stock, so... And with the consumer spending, you see demand for property, in particular in those core markets, which is good. The middle class have more to spend, and we see spendings happening. So in short, we see a continuous strong demand for supply. We split the business in three business lines: the operator, developer, and energy. I'll update you shortly on those different business lines. Operator to start with. Operator, the properties we own, 11.2 million sqm by now, which is good for EUR 676 million of contracted rent, and that's up 20% year-on-year.
This again confirms and illustrates strong demand, but also this is good for cash flow. The tenants, very diversified, more than 1,000 blue-chip tenants, can be a large space user, can be small, but it's nicely diversified. Manufacturing, R&D, 3PLs, you name it, it's all in the portfolio, different property types in the different parks we own. Rent collection, 99.8%. Occupancy is around 93%, stable compared to first half of this year. So far for the operator, maybe continue with the developer. Looking at the overall market and the different peers, they may bring less space to the market. We have a good position to bring space to the market. Also, use the opportunity of being an in-house construction company. We can start, we don't have to complete, we can slow down, or we can accelerate subject to demand.
So I think we are in a good position to grab more business and to react quick in case we do see demand. Well, on the way to reach our yearly targets, this year delivered 566,000 square meters. That includes a couple of highlights, 65,000 square meters in Bucharest West, which is for a fashion retailer, but also, for example, in Slovakia, where we have done another project for Bosch. Bosch is a Stammkunde, and we do lots of projects for Bosch, not just in Slovakia, but also in Serbia and other places. We have together 1.9 million square meters of properties under construction. Not all of that, as I explained, will be complete this year.
Others will complete next year in 2024, and that is what we do at north of 10%, so 10.6% yield on cost. That is also because of the construction cost, which came down, and we see rents continue to grow. Actually, there is more rental growth. We expect to deliver this year 1.1-1.2 million square meter of space in 2023. Those will be around 80% occupied as well, and the rest will then follow. Expect to increase that further to, as I said, the target of 93%-95%, depends on the different markets. Obviously, a new market, we bring more property to the market.
Established market, as for example, the Czech Republic, we see way more higher occupancy compared to Poland, where we entered and we started build buildings, and that is being leased while we speak. Land bank, lots of land, 20.7 million square meters. Most of the land is within existing business parks, so there's more land to grow, mostly for existing clients, land with infrastructure, permits, and with on-site teams who would build on the land and construct those properties. And this allows a lot of work, but it allows also us to develop more property, double the size of the portfolio. So far for the developer, brings me to the last business line, which is the energy. Obviously, energy is an important part of any project you do.
You first start, okay, land, clients, infrastructure, and energy, of course, and that is what we do. And so we look at a broader picture of, where does energy come from? What does it cost? How much do we consume? Can we reduce that smart metering? Talk to the tenants. But also, can we create energy? And if we create energy, what do we do with it? Can we sell it to the tenants? Do we bring it to the grid? Can we store it? And that's a lot of, I think, learning by doing. We have, of course, we've done some projects 10 years ago, and those projects are doing very well.
But also this year, 2023, we have been able to install more rooftop solar plants, and in different markets, different legislation, and we now learn how we can benefit from them, and how we trade, and how we make money with that. And so far, I must say, quite good. So optimistic and positive about that business and how we would grow that. 59 MW installed so far this year, and we are installing while we speak, and the income towards, 2024, would be by that time we have 97 or 100 MW, which will be around the higher yield on cost compared to property. We think it's gonna end up at 15% yield on cost on the energy/renewable energy/solar business. That was it, and I hand over to Maarten, and I look forward to answering any of your questions later on.
I will now give an update on our main financial highlights. In the first nine months of 2023, we achieved a like-for-like rental growth of 7.5%, driven by indexation and strong rent reversion. 63% of CTP's portfolio is now indexed to the Consumer Price Index, while the other 37% has fixed escalations. By the end of 2023, we expect around 70% of our contracts to be linked to CPI. The reversionary potential stands at 14.1%. We've also been successful in capturing this potential for the leases that came up for expiry. This is illustrated by the average monthly rent per square meter of the new leases signed in 2023, being 16% higher than the same period last year.
Our rental income for the first nine months increased 19% year-on-year to EUR 421.5 million. The net rental income went up by 22.6% year-on-year, as we reduced the service charge leakage. Company-specific adjusted EPRA earnings increased 22.7% year-on-year to EUR 238.4 million. The EPS increased 18.6% year-on-year to EUR 0.54, on track to reach our guidance of EUR 0.72 for 2023. Now, moving on to valuations. At the Q1 and Q3 results, only the investment properties in the development are revalued, while there's no revaluation for the standing portfolio. The gross asset value of our portfolio came to EUR 13 billion, up 12.8% compared to year-end 2022.
The Q3 revaluation amounted to EUR 239 million, reflecting the leasing and construction progress of our developments. As in previous years, the investment properties and the development revaluations are higher in the second half of the year as projects near their completion. The Q3 revaluation brings the total year-to-date revaluation to EUR 656.3 million. The EPRA net tangible asset per share increased from EUR 13.81 as at 31 December 2022, to EUR 15.28 as at 30 September 2023, representing an increase of 10.6%. This increase was driven by the portfolio revaluation and accruing earnings, partly offset by the dividend we paid out. Looking forward, with the 70 basis points reversionary yield increase we have taken in the last twelve months, we expect no further material yield widening.
However, we do foresee further positive year-over-year growth on the back of the continued tenant demand, which is positively impacted by the secular growth drivers in the CEE region. CEE rental levels remain affordable despite the strong growth seen, as they have started from significantly lower absolute levels than investment in European markets. Furthermore, with the larger yield movements in Western European markets, the yield differential between Central and Eastern European logistics, on the one hand, and Western European logistics, on the other hand, is now back to the long-term average. Now I hand over to Richard, who will run you through the funding and outlook.
Both Standard & Poor's and Moody's confirmed our investment grade ratings with a stable outlook in the last quarter. This reflects our robust balance sheet and our access to multiple pools of capital. In Q3, we tapped EUR 280 million from the international unsecured bank market, including a EUR 200 million ten-year facility from the EIB for an all-in cost of 4.5%. We also closed EUR 137 million of secured financing with two separate banks. The average cost of this debt was 4.9%, with maturities between six and seven years. In October, we signed two additional loan facilities totaling EUR 209 million. As we used all our pre-hedges, the fixed all-in cost of these two facilities was 5.35%.
In addition, we have a strong pipeline for further financing, with a material amount of funding agreed, which we plan to draw in the coming months. Our pro forma cash position, including the loan facilities we signed in October, is EUR 1.078 billion, sufficient to meet our cash needs for the next 12 months. Including our EUR 500 million RCF, our pro forma liquidity position amounts to almost EUR 1.6 billion. Our average debt maturity stands at 5.2 years, with a EUR 400 million bond maturing in November 2023. This will be repaid from available cash reserves. Following this, we have no material debt maturity until June 2025. CTP's average cost of debt stood at 1.98%. This will continue to tick up going forward as we bring new funding on to finance our development-led growth.
99.5% of our debt is fixed or hedged until maturity. Thanks to our strong cash-generating portfolio, we have a healthy interest coverage ratio of 4.2 times, while our forward-looking ICR, reflecting annualized income for our developments, comes to 4.8 times, and our normalized net debt to EBITDA stands at 9.3 times. Our loan-to-value ratio was 45.7%, down 20 basis points from the half year, only slightly above our 40%-45% target range. We expect the loan-to-value in 2023 to be around 45%, as the revaluations of our developments are fully booked. We continue to deem this loan-to-value range to be appropriate, given the higher-yielding nature of our portfolio. We are confident in the outlook for CTP.
Despite some slowdown in the macro environment, leasing dynamics in the CEE region remain strong, leading to continued rental growth and supporting valuations. Our pipeline is highly profitable and tenant-led, and thanks to our industry-leading yield on cost, we are able to deliver sustainable and profitable growth also in the current higher interest rate environment. This sets us apart from other players in the sector. CTP has the team, the land bank, the balance sheet, and the tenant relationships to deliver on our promises. We confirm our EPS guidance of EUR 0.72 for 2023 and EUR 0.80-EUR 0.82 for 2024. We are on track to reach 20 million square meters of GLA and rental income of EUR 1.2 billion before the end of the decade. Thank you for your attention. We now welcome your questions.
Thank you. Please press star followed by the number one if you've joined us on the conference call. To submit a question via the webcast, you can type your questions in the box under the player. We'll take questions from the conference call first before moving over to the webcast. Our first question today comes from Thierry Cherel from Natixis. Your line is open. Please go ahead.
Hi, thanks to take my questions. I have, like, four questions here. First one is, why occupancy is declining, and do you see this as a weakness first? Do you want me to ask the whole questions in a row or give you the opportunity to answer one by one?
Hi, Thierry. It's Maarten here. We can answer them on a one-by-one basis. That's probably easier. So I will start with the first question. So if you look to occupancy, the 93%, it's stable versus the half year. So, of course, we brought some new properties online in the third quarter, but the leasing of those is in line with what we had in the standing portfolio. It's indeed slightly lower than what we had at the end of next year, which is mainly driven, what we also explained already in our H1 call, by the delivery of the Amsterdam asset. Other than that, there is no change in occupancy.
Okay. Okay. So in the future-
Or maybe, maybe-
I could assume that occupancy rate will improve?
Maybe there's one more comment to that. This is Remon speaking. Hi, Thierry. What Maarten just said. If you look at, we have been around 95-93% occupancy historically. If you look at occupancy or vacancy, vacancy is mostly in the new markets, which are new markets for us, where we have been, yeah, where we have only started a couple of years ago, or even, even less than that. So that is the Netherlands. That is also Poland, where we have been very active building property, and, we are now in the middle of leasing that up. So if you look at, for example, core market like the Czech Republic, I think you're going to see, that's more than 95% occupancy.
So it's more the combination of different markets where the occupancy and the vacancy is, and that's mostly where we have been building properties, which are now being leased. I think that's also part of it. So there is no structural-
Thanks for the update... Mm-mm. So sorry, please go ahead.
No, no, there is no structural vacancy or anything like that. It's not that we are sitting on old buildings which are empty, which will remain empty. It's in Poland, for example, more the newer stuff which we bring to the market, and where we are currently in negotiations with various potential clients to lease that out. And the same for Amsterdam, we are now more than one-third, and we are talking to various parties to hit another third, which I think, and from talking to Ronald yesterday, in Amsterdam, it looks like first half of next year, we will be able to to close a couple of deals and bring occupancy further up. So that's the Amsterdam asset.
Yeah, but there is no properties where we struggle long term with vacancies or anything like that. No.
So we could have an assumption for next end of next year, 2024 at 95, if it's a guidance?
Yeah, that's not, not perfect guidance, but that's what we have internally. Our discussions with the different teams are that we like to. Yeah, that the one of the KPIs we have here internally is that we would like to be at 95 on group level. But that again is different per country. So you will have countries where you also for next year is 93, and other countries which will be north of or higher than 95% occupancy. It is also and always, of course, a balance between supply and demand, and as you know, we like to build, and we enjoy building. I think we're good at building. We have land to build on, so that is one thing we like to do.
On the other hand, we like to keep the occupancy high, and that's the balance which we always look for. But historically, if you look at the past five years, I think Maarten did show that also previously, you've seen or we have seen, we've been around 93, 92, we've been 96. We have been in and around the 95 number. But to answer your question in simple, yes, I think end of next year, we would be at 95%. On a group level, I think that's fair to say, and that's exactly what we have in our group KPI.
Thank you. Thank you very much, Remon, and Maarten. My next question is about net debt growth versus portfolio value growth. So, first, congratulations for such a huge growth, both in portfolio and NAV. I think it's very appreciated. But on my point of view, I mean, credit point of view, I just would like to understand why LTV continues to rise, even if it's a slight rise. But what's behind that, please? Thank you.
Yeah. Hi, Thierry. Richard. Yeah, so LTV ticked down in Q3 from 45.9 to 45.7. As we get closer to completion on our developments, we take more of the development profit. We had 1.9 million square meters under construction at the end of Q3. And obviously we borrowed the money to fund that construction. So that's what drives the debt. We also maintain a material cash position to secure funding for our pipeline. But as we complete developments, we would expect valuations to continue to tick up.
As Maarten said in the video, we don't expect any yield decompression in a couple of markets. I rather think that we'll maybe see yields coming down. So we have a very conservative valuation yield. So our reversionary yield is 7.2% as of the middle of the year. So we have anything other than a aggressively valued portfolio. So would expect the LTV to tick down as revaluations come on, as rents continue to go up, as we factor in the indexation at the start of next year. So loan to values are starting to come down.
Thank you. Thank you, Richard, for this very reassuring answer. Another question is about Czech Republic markets. Some market participants are forecasting lower than average total return in Czech Republic logistics markets compared to the neighbors' markets. What's your opinion about that?
Look, I can give a start and Remon can add on that. But if you look to the Czech Republic, you see a market which is very tight in terms of overall demand. The vacancy of the Czech market is low, 1%. We continue to see very strong demand, and zoning and permitting is relatively restrictive, which is good for us as an incumbent player, 'cause we have the land bank and we can grow on that. If you look to rental levels in the Czech Republic, those have been increasing quite substantially. A few years ago, EUR 4-4.5 per square meter per month were more common.
Those days it's more, 6-6.5, and around Prague, even 7-7.5. So we have seen an enormous potential rental growth opportunity there for us, because ultimately, if you look to our portfolio, yes, of course, we are leasing the new leases at such levels, but we have, of course, a quite big standing portfolio where we have the reversionary potential. On group level, the reversionary potential is 14.1%. In Czech, that's definitely higher. So for us, we see quite some opportunities in Czech to boost basically still the rents in our existing portfolio, which will also help us in terms of valuations. But Remon can add if he wants.
Yeah, no, it's very clear. Thank you very much, Martin. I see the tightness of the market with the 1% vacancy rate; it's different. But my question was about does rental growth, which has been a huge driver of total return in the past, being the same in the future and maybe at a lower pace, and maybe not that much yield compression makes lower total return that we could see elsewhere. But okay, very clear answer. My last question to give the floor for other participants is about the strategy.
Last time we discussed, Martin, very, very interestingly, you mentioned about the strategy not focused on capital rotation because of the parks, and I fully in line with this very good strategy. But my question is about leveraging on CTP's ability to develop assets, standalone asset, I mean not in the parks, but outside, to make beside the core strategy, a capital return or capital rotation strategy in developing above 10% and selling at 5.5, five or six, or whatever. Making another way of giving in some references on the market, and allowing CTP to collect the disposal proceeds, which would be good for both equity and credit, I think.
Yeah. Hi, Thierry. It's yeah, interesting question. If you look at our land bank, 85% of our land bank is in and around our existing parks, so the core or the start of a new park, and a park for us is more than 100,000 square meters. So, you know, in practice, we focus on building and growing the ecosystems and the scale of our parks, because we find that that's the best way for us to drive long-term growth, where we're able to capture higher rents with more loyal tenants. Because by offering them an attractive and interesting ecosystem where they can profit from the...
Also, the neighbors in the location that they have by offering an attractive environment that gives them also competitive advantage in the labor market, where they can offer their workers somewhere nice to work, somewhere that they look forward to going to. We think that in that way, we can drive returns higher in the long run. So yes, we could do that. I mean, we've done that once in the last four or five years, which was a very bespoke building which we built in the Czech Republic, a kind of standalone location. We sold it.
We made a very nice profit on that, but I think that's gonna continue to be the exception rather than the norm for us.
Mm-hmm. Okay. Very, very, very clear. Thank you very much for your answers, and congrats for the results.
Our next question comes from Frédéric Renard of Kepler. Your line is open.
Hi, good morning, guys. Just a question on my side. Maybe can you comment on the level of incentive granted on the leasing activities, or should we look at the 16% uplift you realized as an economic rent? That's the first question.
Yeah. So, hi, Fred. If you look to the 16% uplift, that are headline rents, but you see incentives coming down. You see that the most clearly if you look to your... And it's a bit technical, but if you look to your EPRA topped up net initial yield, you basically see the amount of incentives, basically, which is the bridge between your EPRA net initial and topped up coming down. What does that translate into incentives on a contract basis? Typically, it depends a bit per market, but I would say one to two months for a five year contract, maybe three months for a 10-year contract.
On average, incentives clearly have come down, especially also when we do, of course, renewals of existing tenants, which is already in there. That's of course a testament to the low vacancy in the market and the healthy demand that we continue to see.
... Okay, that's, that's very clear. And, the second question is, what's the pre-letting of the total pipeline at this stage? I know that you communicate on the 77% for the pipeline to be delivered this year, but what about the whole pipeline? I think you were around 50% last year, and, you don't communicate anymore on that. So what would be the percentage?
Yeah, we're at a similar level now, Fred. And, you know, what we say is that we're going to be 80%-90% as we deliver the pipeline. As you know, as our own general contractor, we're always playing with the timing so that we are able to speed up and deliver quickly if a tenant is there and needs space in the short term. But if we start a construction, then we see that demand in that location is maybe not coming as quickly as we thought, then we're slowing down the construction, stopping to spend money in there, and then speeding up again as and when the demand comes back.
Just to add on that, if you see, of course, the amount of projects, what we also communicated that we leased but not yet started, of around 270,000 square meters, that's the continued sign of that demand, and allows us to manage what Richard said, to 80%-90% pre-let delivery.
That's great. Thank you.
Our next question comes from Steven Boumans of ABN AMRO. Please go ahead.
Hi, good morning, and thank you for taking my questions. Of course, Simon, congrats on New York, although I haven't heard Richard's and Maarten's time. I have two more separate questions on development. First, could you comment on the new speculative developments that you see in the market for your main countries? And the second question is, projects under development for you in Romania and the Netherlands are relatively small versus the country's share in the land bank. Is there any reason why you haven't started more developments there, and can we expect more developments to start in these countries in 2024? That's it for me.
Thank you for the question, Steven. I can take that, maybe, and then Maarten or Richard, just add any of your comments. But with regards to your question, for Holland and Romania, if I understood well, it's about land bank utilization.
Yeah.
Actually, yeah, I'm sitting in Bucharest now. It's true that CTP has a portfolio of 2.6 million square meters of income producing here in Romania, and we have a land bank of 3.6, so we can build another 1.8. So there is a lot of land which we have here in Romania, mostly within the region of Bucharest and within a few of our larger parks. And your question is, why are you only building 200,000 square meters or something like that? Which is less than 10%-
Mm-hmm
... compared to standing. That is true. The approach here in Romania is a bit of, or a bit, maybe more conservative, if you like. What we have agreed with the, with the team here is that we, we like to focus on rental growth and, and increase occupancy. We like to be in Romania as well, north of 95%. That is the focus more than building on a speculative basis. What we are doing, the 200,000, or around that number, is mostly pre-leased. With that, maybe I can use also the opportunity to explain a bit of the pipeline here in Romania. There are two major projects. One is for a company from Germany called Diehl.
For Diehl, we are currently building around 20,000 square meters in Brașov. The other project is almost, let's say it's 90,000. Phase one is 90,000 square meters for a well-known fashion retailer. It's H&M, and I think that has been previously also mentioned somewhere. Anyway, that's the focus in Romania, to utilize land, but with pre-leases. Then we are doing a few smaller properties for existing clients, and we start in Timișoara with a new building where we are in advanced negotiations stage of negotiations with existing tenants who need to have need for bigger space, more space. So that's why. We can easily accelerate, we can easily build more.
We have land permits, and we will do so if we feel that the market is there and there's more demand. But as I said before, the focus in Romania is much more on occupancy and rental growth, where we see opportunities here, point one. And with regards to the Netherlands, yeah, the land bank is in Waalwijk and in Gorinchem, mostly. And I think what I can report on Waalwijk is that, we're making good progress, but it has not been our plan to build there immediately. That's... There's just, we need time for obtaining the permits for Waalwijk. And with regards to Gorinchem, you remember that, the acquisition which we did, with, on the agreement with, with Deli Home?
We bought their sale-leaseback with the agreement that we would develop for Deli Home a new facility. And that we're making good progress, and the plan is now to start with construction works in 2025. And the focus in Holland is very much now on leasing of the ALC, the property in Amsterdam, which is good that the city has introduced the legislation that would actually stimulate companies who have distribution into the city of Amsterdam to use water and to over water into the city, et cetera, et cetera. So and that will create more demand for the ALC type of property. And that is the focus in the Netherlands.
Okay, clear. And then the other question on speculative developments in the market for your main countries, do you see that increasing or decreasing? So not-
Oh, sorry. Yeah, I wanted to answer that question. Yeah. No, overall, we see less activity and yeah, from the trader developers, obviously, yeah, companies who would build and sell because of the yeah, different market circumstances. So we see a bit less. Yeah, so there's a thing, supply coming to the market and yeah, I think that's a trend, but maybe Martin can comment on it, but that's what I see from traveling the region and from talking to the various commercial teams that yeah, there's not too many speculative developments going on or happening from other players.
Yeah, just to add on that...
Okay. That's also true for Poland?
Yeah, especially, especially in Poland, Steven, as you know, because here the market was of course much more dominated by trader developers than any of our other markets in where we are active. So especially in Poland, we have seen that with the higher cost of financing that it's more difficult to get that for development projects. And that's also the reason why if you look to our financing structure, we only finance standing assets. Banks are simply more reluctant and ask higher rates for development projects.
That's why you see that, that's, that's basically the speculative supply is coming down, especially from those trader developers, but also from some smaller competitors, because of course, in the past, when interest rates were low, almost everyone could build. Now you see it more going back to the main operators who have a long track record and long-standing tenant relationships.
Okay, very clear. Thank you.
Thank you. As a reminder, if you'd like to ask a question on the conference call, it's star followed by one on your telephone keypad. And if you wanted to submit a question via the webcast, you can type your question in the box under the player. Our next question from the conference call comes from Peter Van der Boom of Kempen.
Hi, team. Thanks for taking my question. I put one on the, the rents, the Czech Republic. These came in at $80 per sq m, quite an increase. Is it mostly driven by logistics, or is it also because you've signed, say, more offices, like the ones you've shown us in Brno?
No, that's mostly driven by warehouse prices. Martin said earlier, you know, we've seen a dramatic increase in rent levels in the Czech Republic over the last years. And so new leasing, like Martin says, you know, headline rents for warehouses will be EUR 7.50 in the major markets. If you add into that, ancillary space office that you're leasing at a higher yield, your blended rent will actually come in higher than your headline for your warehouse. So that's how we achieve that.
Perfect. It's very clear. My last question is on indexation. Do you already have a sense of what your indexation will be for next year on the first of January?
Yeah, of course, we are nearing that point. So it's a mix, of course. As we gave the update, we are currently have 63% of our contracts to be linked to CPI. We need to see, of course, exactly where some CPIs are landing at, because we have a mix, as you know, between local and eurozone, but there is also sometimes a mix in terms of calculation. Some of them are more a point in time, so you compare your index from, say, October 2023 to October 2022. Others are more annual averages. So that's a mix in terms of how the calculation is done.
But in general, as you might remember, when we gave guidance at our capital markets day, we said we expect a like-for-like growth of around 5%, which is still the case. I think roughly around 4% of that is indexation, the remaining reversion.
Thank you. We have no further questions at this time, so I'll turn the call back to the management team.
We'd like to thank everyone for their attention today and look forward to continuing the dialogue going forward. Thanks very much, everyone. Have a good day.
Thank you.