Ladies and gentlemen, welcome to Colonial SFL first half 2026 results presentation. The management of the company will run you through the presentation. That will be followed by a question-and-answer session. You can ask a question by phone by pressing star five on your telephone keypad. I would now like to introduce Mr. Pere Viñolas, CEO of Colonial SFL. Please, sir, go ahead.
Thank you. Good afternoon to everyone. We are very pleased to be able to share today the presentation of results for the first half of 2026. As you will see, we believe that they've been very robust and in line with the strategic guidelines of the company. I am on page four with these main highlights that I would like to emphasize now at the beginning of this presentation. The main takeaways from this presentation should be, first of all, we are finishing the first half of this year with a healthy gross rental income growth, 5% year-on-year, which means a 4% like for like gross rental income growth with an obvious big spread on indexation. That is a growth that is obviously also among the highest in European real estate.
We have already data available for the peers. We are at the top and with a certain gap. Very pleased to see this performance. This gross rental income growth is translated into recurring earnings that reach EUR 111 million. Again, a 4% growth year-on-year. Translated to EPS, that would mean EUR 0.178. That means that we are fully on track for our full year guidance for 2026. The P&L going very well. Balance sheet also very satisfied. We are going through a disposal program that had an initial objective of EUR 500 million. As of today, 440 disposals are confirmed. That means 87% of the original program being completed. All of them confirming appraisal values or above appraisal values. With a strong capital structure behind this execution.
In recent weeks, we've seen the confirmation by Moody's and Standard & Poor's of the investment grade of the company. That means that the balance sheet gearing in line with the leverage framework that we shared with the market in our capital markets day. Where is this coming from? This is coming from, remember our strategic framework. First of all, prime CBD operations benefiting from polarization. Again, very good data regarding occupancy. In these six months, the occupancy has increased 200 basis points year-to-date, going from 92%-94%. ERV growth, 5%. That means 300 basis points above indexation. Very healthy and good relet spread, 9%, mainly driven by Paris, which is multi-year high, 26%. That's box number one, prime CBD operations. Box number two, our Alpha X and project deliveries. Going very well. 9,000 sq m leased from project deliveries in one quarter.
Madnum in the final stages of the project, 92% by June 30. As we speak, even much higher. Haussmann reaches 54% let. Again, as we speak, on the path to much higher numbers now. As I said, capital recycling on track, disposal program on track. On the acquisition side, it is now already public. Our acquisition of a super prime Berlin CBD portfolio, together with the old execution of the EUR 48 million buyback program, which was completed in very attractive terms.
That's the main highlights. The main KPIs, you can see them on page five. Again, main takeaways, sustained cash flow growth, 5% gross rental income growth, EUR 207 million. EPRA earnings EUR 111 million, 4% growth. EPRA EPS EUR 0.178. Guidance confirmed. Behind these numbers, outstanding operational performance. Rental growth, meaning what we signed compared with the ERV December 2025, 5%. Let me emphasize, 8% in Madrid. Relet spread 9%.
Let me emphasize, 26% in Paris. Occupancy 94%. Let me emphasize, 200 basis points more than six months ago. If we talk about the balance sheet, our asset value growth, which again, it is outstanding compared to available information on peers. I think that again, proving that polarization effect. Net tangible assets EUR 6.0 billion number. The net tangible asset per share at EUR 9.82, that is +1% in six months. Always with a priority of a solid capital structure and a capital discipline before anything else, we have secured EUR 440 million of our disposal program, which had an initial objective of EUR 500 million, so very much advanced and working already on the next level. Loan-to-value 36.7%, down 39 basis points versus December. Liquidity remaining at EUR 2.5 billion. These are the outstanding numbers for the first half.
As usual, now we will go through the details. At the end, I will come back with some remarks about the future growth. Let's go into the section of financial performance. Carmina, when you wish. Thank you.
Okay. Thank you, Pere. Let's move into the financial performance, starting with the gross rental income. Gross rental income reaches EUR 207 million in the first half of the year, up to 5% year-on-year. That growth breaks down into three main components. The first driver, our like-for-like prime CBD operation, contributed EUR 8 million, or 4% growth. That growth is being driven primarily by a positive release spread on renewals and rental growth on new lettings, combined with genuine pricing power across our core markets. Second driver, Alpha X delivered project added a further EUR 6 million or 3% growth. This reflects the entry into operation of our recently delivered assets, mainly Madnum in Madrid and Haussmann in Paris, which are now contributing rental income for the first time and will continue to ramp up during the rest of 2026.
Finally, this positive impact has been partially offset by EUR 3 million or -2% from disposals, the natural result of an active capital recycling program, as you know. Put together, the total growth of 5% and combining the operational like-for-like performance with the project contribution, underlying growth reaches 7%. Digging into the like-for-like number, gross rental income grew from EUR 180 million to EUR 188 million, up 4%. That 4% is composed of three drivers. Indexation contributed 1.5%. Rental growth premium, our reletting or repricing effort above indexation, added 100%, and occupancy gains contributed a further close to 2%, 1.9%. What's particularly relevant here is the spread, as Pere mentioned before, over the indexation. Almost 300 basis points, 286 basis points, which is a clear evidence of genuine pricing power. This outperformance, it's broad based in our markets. Barcelona delivered 10% like-for-like gross rental income growth.
Madrid delivered 6% like-for-like. It is not here, Paris as well, 3% positive gross rental income like-for-like growth. Versus peers reported ahead of today, our 4.4% like-for-like growth is well above our peers, as you can see in this chart. The rental growth tax base flows straight through to our earnings. EPRA recording earnings reaches EUR 111 million, up 4% year-on-year. First, prime CBD operation like-for-like contributed EUR 7 million. Alpha X delivered project added EUR 6 million. Together, that's 12% earnings growth, offsetting by EUR 8 million of a higher financial cost and EUR 1 million from disposal, netting to the reporting 4% growth. EPRA EPS came into EUR 0.178 per share, up 4%, on a stable share count of 627 million shares.
Note that 14.5 million share buyback program and cancellation was completed in the late June, its full aggressive impact on the average share count will show through from the second half onward. It's not here. This keeps us firmly on track for our full year 2026 guidance of an EPS between EUR 0.34 and EUR 0.35 per share for 2026. In the next slide, turning into valuation, gross asset value stood at EUR 12.1 billion at June, up to 3.4% like-for-like year-on-year, driven by EUR 282 million from rental growth and project delivery. On top, EUR 108 million from yield movements or yield changes, and partially being offset by EUR 169 million of net disposals. By geography, this is positive across three markets. Madrid led with 5.8% like-for-like growth, Barcelona 4.3%, and Paris 2.4%.
All three markets in positive territory, which confirms the diversified pan-European or pan-geographic nature of the value creation. In capital value terms, Paris stands, as you can see here in the details, at EUR 18,000 per sq m, Madrid in the range of EUR 7,000, and Barcelona in the range of EUR 5,000, being in the prudent area according to transaction, and you can see in the appendix more details about the recent transactions. With valuation yields remaining stable across portfolio, 4.2% in Paris, 4.7% in Madrid, and 4.2% in Barcelona. Finally, the EPRA Net Initial Yield, including the available space and market rent, show levels between 4% in Paris and 5% in Barcelona. Very solid and stable yields. Finally, the balance sheet, which continues to strengthen alongside the operational performance.
We've secured, as Pere mentioned, EUR 4.4 million of disposal year to date, 87% of the original disposal program, with EUR 383 million already executed and confirming appraisal values, and a further EUR 59 million close to EUR 60 million committed, including accelerated execution on the residential assets. This execution is feeding directly into leverage. Loan-to-value stands at 36.7%. EPRA Loan-to-Value at 46.3%, which this ratio includes the dividend committed but not paid in June, has been paid after the closing. It's included in this ratio, and this ratio as well are not considering the disposals that are committed and under negotiation, and not today yet included in this ratio. Our credit profile remains fully intact. Both Moody's and S&P reaffirmed our investment grade ratings in the second quarter, Baa1 by Moody's and BBB+ by S&P with a stable outlook.
Liquidity has actually increased despite the disposals and investment activities. EUR 2.5 billion today, covering debt maturities up to 2029. Core spot debt remains contained less of 2%, being the average cost of the first half of the year at 1.9%. Taken together, rental growth, earning growth, disposal execution, and a strengthening balance sheet, this is a very solid set of half results. In the following sections, you will see with Carlos the details on the fundamentals of the main value drivers behind these results.
Thank you, Carmina. As we highlighted on the capital markets day, our short and midterm growth relies on three strategic value drivers. That is Prime CBD operations, Projects Alpha X, and active portfolio management. Let's go into section where we are on the different buckets. On page 13, first look at the letting performance of our Prime CBD operations. We signed 61,000 square meters. Out of this, two things to highlight. 60%, so more than 35,000 square meters are lettings of new spaces, of empty spaces. Specifically, Paris, the 14,000 square meters has been all of them available spaces. Our prime segment is working very well and generating a lot of demand.
Second element, in terms of activity, always the Spanish activity, because of the more short-term nature of the contracts, is higher, and we are securing a lot of future rents through all of the Spanish letting activity. 77% of the 61,000 square meters has been Spain. At Paris, we are signing at very high prices, as you can see with the examples at the left-hand side. Maybe a third interesting element, we are really mission-critical space for high-value jobs, in particular tech and AI. 30% of the contracts that we have signed have been in this segment. If we go to the next page, on page 14, as we've signed a lot of available space, we have had an improvement of 200 basis points year to date. 100 basis points in a quarter.
We are at the level of 94%, a very healthy level, and we are progressing quite well on the projects and on the rest of the available space. A very good speed thanks to the top product that we have. If we look at the nature of what we are signing on page 15, first element, we have achieved a 5% ERV growth in all of the contracts that we signed. Important to highlight that this is compared to December 2025. So, it's 5% in six months, just in six months, 5%. Outstanding Madrid and Paris with 8% and 4%. As we said on the capital markets day, we are getting an extra growth premium on indexation because of the high quality of our product. Blended is 300 basis points. In Madrid, the first half it has been 600 basis points. Paris, close to 400 basis points.
On the re-lease spread, we are maintaining very high levels, 9%, especially thanks to the Paris portfolio, where we achieved 26%. That is an all-year high mark, as you can see on the right-hand side. This is the first bucket, CBD operations. The second bucket of growth, a very relevant part, is our project pipeline. We are progressing very well on the two delivered projects, the short-term projects that we have to fill.
Madnum will fully stabilize, generate EUR 90 million of rents. We have already secured EUR 17 million. As you can see, 92% let as of today, and conversations to get quite soon at close to 100%, 99%. Important to highlight that in the P&L as of today, there are just EUR 7 million, because these are flowing in progressively as we sign the contract. So, we have EUR 17 secured and just EUR 7 have been crystallized so far in the P&L.
We are securing future rents. On Haussmann, we are at half of the asset fully let. This is equivalent to EUR 6 million in the part in our P&L. There have been just EUR 2 million as of the first half. If we look at the total project portfolio, we have also things pre-let, for instance, like Sancho de Ávila, and one floor on Scope. We have already today secured an annual amount of EUR 30 million of rents. That is quite a relevant part of the EUR 80 million that we have to get in 2028 to achieve our midterm EPS guidance. On the CapEx, we are remaining with the figures what we had. Last is the third driver. It's active portfolio management. As Carmina already mentioned, our initial disposal program of half a billion EUR, we have almost 90% done.
We are already working on identifying candidates from the additional enhancement of EUR 200 million, and we have also deployed very successfully the EUR 200 million that we guided on the capital markets drive to be invested. A buyback program in very attractive terms and the super prime portfolio in Berlin that Pere will explain with more detail.
Thank you, Carlos. Let me now go through a little bit of final remarks. My first remark, obviously, is about the execution of the value creation strategy. You can see that we are delivering. We have set up a clear framework of where value must come from. Prime CBD operations, managing and repositioning, Alpha X, and Prime Factory transformation, and capital recycling. If we go one by one, Prime CBD operations are clearly delivering. Polarisation is at stake, it's delivering, and as a consequence of that, we have delivered a revenue growth of 4% like for like, 300 basis points above inflation, clearly above peers that are not in our focus. The occupancy has grown by 200 basis points. The rental growth has been in the range of 5% in just six months. The release spread has been 9%, with record performance in Paris of 26%.
We are leading the sector, and we are delivering. Maybe I would like to add in this box, how pleased we are about letting activity. You know that letting activity is important for me. Letting activity is not only about the past, it's also about the future. It has to do with next year P&L, with two years P&L from now. It has to be about our midterm guidance. Our letting activity has been very strong. You've seen that a particularly strong contribution from Spain. When we talk about leasing, we are mainly a Spanish company. That's where our letting activity comes from. You saw a majority of new lettings, not just renewals. You saw also a great share of technology sector among our clients. All of this, it's giving us very good framework and expectations for the next year.
The Alpha X is also delivering. It's contributing an additional 3% year-on-year group revenue. Madnum is 92% secure at 30 June. If I should tell you where we are today with the discussions we are having, we are even much higher. Particularly, this will be true for Haussmann. That was 54% June 30, but it's going in the right direction as we speak. There's Scope with the first pre-let secure and increasing market interest. We are talking about more than EUR 30 million of additional revenues secure year to date, covering approximately 40% of the target for 2028. Coming quarters will crystallize significant amounts of secure rents. The first box is about capital recycling. Very much on track. EUR 440 million of disposals year to date, 80% of the target. Enhanced disposal program pipeline identified and progressing.
Buyback, really an old story, but also fully executed. New acquisition on Berlin super prime focus with an on-year IRR of 8% and a strong rental diversion ahead. All of this, what is telling us is that our guidance for this year is confirmed. You know that we announced also a midterm guidance for 2028 with a significant growth in terms of EPRA EPS attached to it. Everything that we've gone through these six months is telling us that this EPRA midterm guidance, it's confirmed. I would like to share also a few words about the acquisition of a portfolio of prime assets in Berlin. Basically, the things I would like to summarize is, you know why we are here. It's about Prime. It's not about Berlin.
It's mainly that we want to identify where we can put our know-how at stake and generate the kind of IRRs that we see here. This portfolio of Berlin, we believe it's super prime with potential. With potential means that we see capacity of rents going higher on year IRR of 8%-9%. We see this as a fantastic location, number one, with fantastic physical characteristics, big horizontal box. If you allow me, with the capacity of its management to be improved. We have a plan A, which give us this minimum of 8%-9% IRR, but we have plans at stake in the midterm to increase additionally the IRR of these projects to 9% or 10%. Not on the basis of big CapEx, on the basis of light CapEx with upside in rents.
I think it's a typical thing that Colonial SFL has been delivering consistently in Spain and in France, and we would like now to deliver this together with our partner, Generali, great partner, that we would like to show in the near future, in this particular case, in Berlin. On page 21, you had a few pictures. Basically, location. It's a great asset for this portfolio. Most of all, physical characteristics, capacity to outperform in terms of initiatives that would deliver an additional rental growth in the future. Basically, just to summarize, our exposure to Berlin for us is a projection of what we have been delivering in the past in Madrid, Barcelona, or Paris. Finally, strategy and outlook. A big summary.
In the end, you know that our bet on prime office is about betting on polarization, is about securing not only pass-through of inflation, but an additional spread that in the long term has an incredible value. This recurring EPS of 4%, or this revenue growth of 5% year-over-year, I think that is clearly what we want to deliver. As you can see, 286 basis points above indexation. Letting activity, very important, not only for the past, but for the future, with solid rental price increases of 5% in the last five months. Occupancy, 200 basis points year to date, and projects being delivered as expected, generating additional revenues. You can see also from this data that portfolio value is growing across all geographies. Spain, slightly better than France, our France, our Paris, being super solid as we expected. Disposal program well ahead of schedule.
The amount delivered, EUR 440, it's in line with our expectations. Let me emphasize again, everything at or above appraisal values. Berlin, done. Berlin Ultra Prime acquisition done, with attractive on-year IRR and strong reversion in the future expected. Always leverage levels in line with our framework and strong credit profile. That means capital discipline always a priority for us. As a consequence of this, guidance on track short term and also midterm. Well, this is the summary of the results for the first half of the year. Thank you. Let's go now for any questions you may have. Thank you.
Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press star five on your telephone keypad. Thank you. We kindly ask you to limit yourself to just two questions per turn. Thank you. We already have a few questions. The first one comes from Jonathan Kownator from Goldman Sachs. Please go ahead with your question.
Good morning. Thank you for taking my questions. I had actually three, but I'll start with two. The first question, it seems obviously the letting is progressing well. Just wanted a bit of clarification. It seems your annualized rent-free periods went from EUR 19 million at full year to EUR 45 million, and it seems to be driven by Paris. Can you give a bit more color on that, please? Let's start with that, and I'll go with the next one afterwards.
Yes. Just a minute, Jonathan. Did you catch the question? Yes. Go ahead, Carlos. Sorry.
Well, as I explained in my part on the letting activity, we have delivered a very strong quarter. On what we have today available in terms of prime product and, in particular, also the Haussmann project for the short term and also Scope, we are progressing, and we are receiving a lot of interest. We are confident, and we are seeing good progress and also have for the coming quarters, positive confidence.
I am sorry, that is not the question I asked. Apologies. It is good to hear, by the way. This is related to lettings that have been done already and that were done over H1. The annualized incentives went from EUR 19 million to EUR 45 million, and that is lettings that has been done at H1. It seems to be driven by Paris, because I think Paris is EUR 34 million of that. Have you delivered projects in Paris? Was that Haussmann? Or where do the incentives come from, please? Sorry.
I am not sure if I got correctly the question, on the
I can refer you to the press release if you want. It is in the annualized, page 29 in the EPRA Net Initial Yield table. You have essentially, at the end of 2025, you have EUR 19 million of notional rent expiration of rent-free periods, and that is gone up to EUR 45 million as of H1 2026.
Jonathan, sorry. We follow you because we did not understand.
Yeah, no worries
Sorry, Jonathan. I think there are two questions here. One needs to be adjusted in the EPRA yield, which are the incentives that are booked in our accounts to convert the cash on cash or the P&L yield into cash-on-cash yield. This is the part of the incentives that is linked to the gross rental income this first half of the year. The other is incentives that we are signing with the new contracts in Paris and in Spain. Basically, in Paris, it's true that ImmoStat has raised the data about the incentives, which averaged 30%, with outstanding 40% in La Défense, being in CBD in the range of 18%. In our case, Jonathan, the letting activity for the first quarter that we have been signing in France, which is 8,000 sq m, I think, it's in the average of 16%.
Between 14% and 16%, in line with the CBD, according the quality of our assets. In Spain, remains stable, four months, in the range of 4%-6% max. In economic terms, this is the incentives that we are signing this city. The adjustment that you are referring, Jonathan, it's about the incentives of the historical, let's say, contract base that are booked in our accounts. That needs being adjusted in the methodology, EPRA, to convert P&L gross rental income into cash-on-cash rental income.
This is the full portfolio, a totally different thing that you cannot tie up is the current first half activity, because the EPRA yields cover the full portfolio.
Yes.
It is very-
It does, it-
Specific call
it's not so much the magnitude. Obviously, you do business, you do incentives, we all know that. It's the change-
Yes
from 2025 to beginning of 2026, which is more than doubling. That was really the question.
We will check the numbers because it needs to be, normally, as you know, in Paris, the fact that they are long contracts, and we have big, long contracts like Pasteur, like La Banque Postale as well, this is the most important part of this incentive is let us check change vis-à-vis 2025.
Let us do a specific call where we check that.
Yeah.
Hello, can you hear me? Yeah. Sorry, I had the second question. On the LTV, I'm getting a bit confused, I have to say. I'm looking at your disclosure, and obviously you have your reported LTV, and you have the EPRA LTV, and you have different types of EPRA LTV. If I look at the magnitude, I go from something like 36 to 49.5, something like that. That is quite a 13-percentage point difference is quite substantial. Can you help us understand really the difference, and I think this EPRA number that you're showing is actually increasing and not decreasing. How does that exactly work? What's the difference here?
On the EPRA loan-to-value included the dividend that has not been paid and has been paid after closing. For methodology, Jonathan, needs to be included as a cash out. It is not included.
Okay. Its effect, you've paid it by now, right?
Yes. The payables. It's true that in this loan-to-value, for the EPRA loan-to-value, this is a cutoff, I would say. One is basically the dividend, which are coming some days later, and another is the disposal program that are on track that has not been included yet in this loan-to-value in June 2026.
Okay. Where do you think is the, if you include all of this, where is this EPRA number when you look at it and, again, the range. Your 36 number already includes all these elements treated as well.
No. Sorry. In the 36 by methodology, because it's the spot debt that you have at closing, and the 1st June, it doesn't include the dividend, it has been paid after the closing, the debt. Basically, the loan to value by methodology, it's the net debt spot, 30th June on the total assets. By methodology, EPRA LTV needs to include the payables that has been booked and not being debt yet.
Okay. You also have, Carmina, if I may, you also have a pro forma LTV number, that pro forma LTV number is also for 49.4%, page 13 release. I'm just trying to understand, is that pro forma number including also all the recent disposals? I think it says that it includes-
No
your disposals, or does it exclude the recent ones that you've just signed?
Yeah. No, very important question. This pro forma has not included the disposals that is being, I would say, agreed and not executed. It's not a pro forma, it's following the methodology. I understand, I agree with you, that could be some misunderstanding. It's following the methodology, but they are not including any pro forma disposal as of today, which are secured but not executed.
Can you help us understand where that number is, if you fully load it and if you do a It's called pro forma, but if you do a pro forma including the disposals that you've done, including the dividend that you paid, where should that number be, you think?
Yes. We speak in the framework that we share within capital market day. In this framework, about 45% EPRA LTV, which means at the end, would say more prudent levels according as well the rating metrics. Okay? Yeah, including the pro forma, with all the disposals that we are managing and the disposals that we are, I would say, now going on, this expected EPRA LTV would be in-
In Germany, is there a cash out that is not included in there either?
Sorry, the?
For Germany, do you have a cash out, and is that included or not?
Not yet.
It's not included either. Okay.
No
Not it. All right. Okay, I have some more questions, but I'll reach out because they're a bit technical.
Yes.
Helpful. Thank you.
Okay.
Thank you, Jonathan.
Next question comes from Florent Laroche-Joubert from ODDO BHF. Please go ahead.
Hi. Good evening. Thank you to take my question. I would have two question, if I may. My first question would be, on Scope. I understand that you have more and more interest on that building. Maybe could you give us maybe a little bit more color by reminding us maybe when this building is delivered and how it can be let, because there are several floors. It's a big building, I think. What shall we expect in terms of letting activity for this building?
First of all, sorry, because today we are answering a little bit late, but the quality is low, and sometimes we don't fully get know the answer. I understand that you ask about the progress of Scope. Yes, Scope today it's at about 15%, more or less, of occupancy. Conversations are out there for in order to double, roughly speaking, in the short term, this figure. You know that when conversations are open, the level of certainty attached to this, it's still low. We have high confidence in the quality of the conversations, but we cannot still attach a number, not even by year-end, because that will depend on the conversations of the next few months.
We are seeing a lot of interest. Let's see in the coming weeks what is happening. It's generating interest in the asset.
That's good to hear. I know we are follow up that. Maybe my second question would be about your enhanced disposal program. We understand that you have identified some assets to be disposed. Shall we expect this disposal program to be executed by the end of the year, mostly in Spain? Do you think you have some liquidity for some assets in Paris?
Look, we have several fronts. The first one is residential Spain. This is a process that it's happening across the year, during all the year. Honestly, it is going very well, and as you know, we decided to sell retail-wise and not portfolio-wise because we enhance the final proceeds from the disposals. This is progressing very well. Second, we have different alternative. Another thing that has worked out very well for us is secondary locations in Spain. That, for us, it's a sweet spot that is working very well for us in terms of disposal values. At the same time, from a point of view of real estate strategy, we are comfortable with. We keep on looking at
Things that may be available in Paris, if we believe that the upside is not there. If you ask me about, where do we see a higher probability as of today for the second half, I would say on top of the residential, probably Spanish non-core would be the next kind of ingredient to deliver the objectives that we highlighted. Remember we said first EUR 500 million, which is very much advanced, and then we said we are looking at an additional EUR 200 million. As we speak, in order to deliver this, the first one is almost already done. In order to deliver the whole objective, residential plus Spanish secondary, that would be a priority. France always available if the opportunity arises.
Okay, that's all, okay. Thank you very much.
Thank you, Florent.
Next question. Véronique Meertens from Kempen. Please, go ahead.
Hi all, thank you for taking my questions, congratulations on the solid results. Maybe first one comment because I think there is some confusion on your EPRA LTV table. It's because it states that your LTV, including transfer taxes, 49.5%, where it's actually higher than excluding transfer taxes, which obviously shouldn't be the case. Maybe as a remark, I think that 49.5% is probably or hopefully not the correct answer. Going to my questions, maybe first looking at the building blocks of your guidance for a full year, looks like you're well on track. Is there something we should expect from H2, which makes you not up your guidance for the full year, especially if we still get the impact from the shares being canceled?
Except this one, none particular one, honestly, regarding at this stage. I previously said that, of course, today, the delivery of Scope is the next challenge. To be honest, this will not have any material impact on the EPS for this year. I would say that as of today, we don't identify any relevant issue regarding delivery of EPS for this year. Regarding the LTV, I pass the word to my colleagues.
Look, we have exactly followed EPRA methodology. When you go to the layers LTV A divided by B, it's really the GAV excluding transfer costs and proportional. In the debt, this is the main difference to the other loan to value ratio, we take the financial debt, and in addition, also as EPRA suggests, the net payables. The net payables include in this, as of 30th of June 2026, a high amount of net payables that is roughly EUR 200 million of the dividend payment. That is not in terms of financial debt, but it's net payables. The other loan to value that also all of the companies publish, and therefore we publish, its financial debt divided by loan to value, including transfer cost. That is a going concern loan to value. That's doing all of the people in the sector.
The second, we also publish the EPRA loan to value. That is the gross asset value, excluding the transfer cost of the lower one, the net one, the liquidation one, and putting this in relation to financial debt plus net payable. Both of them, best market practice. Also, we have given on both of them, as you know, on the capital markets day, our ranges where we think that it is comfortable, that moreover has been also confirmed just some weeks ago by Moody's and Standard & Poor's. It's everything in line. If you have some further question or maybe.
No, Carlos, I'm actually trying to say that your numbers should be lower.
Okay.
I think your LTV, including transfer tax in the table, is higher than excluding transfer tax. It should be the opposite. It looks like you've actually deducted the transfer taxes. That's why you get to a very high LTV. I mean it as a positive. I think the number that's stated there is too high.
Okay. Understood.
We focus on the first step.
We focus on the first step.
We will recheck.
Thank you, Véronique. If it's a mistake, obviously we will recheck it as a high priority. Behind this, yes, it's like rather technical discussion. Thank you. Thank you for this contribution.
Yeah. Maybe, sorry, one actual last question. On the Berlin assets, could you give some color on what kind of rent levels you are underwriting to reach the reversionary yield?
On Berlin.
Yeah. Look, the Berlin, first of all, the main elements of this. It's 42,000 sq m. It's urban mixed-use. It's not just office, it's high-end living and retail. The people that know Berlin, Unter den Linden, Friedrichstraße is the best location in Berlin. Clearly the best location in Berlin. The assets, as of today, they are in correct shape. There are things that can be done. They give us an ungeared IRR between 8% and 9%. Today, the passing rent is at levels in the high 20s. In the current situation, just playing the reversion because these rents come, this is also long-term contract market, Berlin, from parts from several years ago. We can achieve between 25% and 30% reversion just by renewing the contracts.
If we do, moreover, but this is an optionality on some of the spaces in the near term, a little bit of light CapEx repositioning, like we, for instance, did on Potsdamer Platz in recent years. That is just light, we would call it renovation program, and not heavy CapEx. We could get more closer to the super prime rents. The super prime rents in this area are close to the 50s, so it's almost doubling. That's why we say as of today, just as it is, just capturing and renewing the contracts, so pure letting activity management, we will get at a reversion a yield of 6% and an IRR ungeared in excess of 8%, between 8% and 9%. We are aiming for more. If we do these additional optionalities, we can get in excess of 9%.
Another way to see it's the capital value is EUR 7,000 per sq m. When you look at any market data of the prime Berlin market, it's a very good entry price.
Thank you, Véronique.
Okay. Thank you very much.
There are no further questions as far as I can see, so I give back the floor to Mr. Pere Viñolas. Please go ahead.
Thank you. First of all, as I said, sorry because we could not listen very well to the questions today. I don't know why. There were some technical issues at stake, like those regarding LTV. We'll handle this properly and come back to you if necessary, and particularly if there's a mistake in our numbers, in which case we will take action immediately. Thank you for your comments in that sense. Besides this, honestly, we are happy with the results. They are good. They are better than expected. They are better than the rest. They are not only looking backwards but looking forwards, meaning letting activity, it's good, and everything that has to do with year-end, we are on track, but moreover, everything that has to do with mid-term guidance, it's good. Also because of all these questions of LTV, just a very clear statement.
The capital discipline, the financial discipline that we set up as a priority, and we shared as a priority at the Capital Markets Day remains a high priority. Maybe because of the numbers we shared today, there's an misunderstanding. Anything that we've been doing and anything that we will do in the remaining of this year, and the next year is with capital discipline as a priority. Thank you very much for your attention and have a good day. Thank you. Bye-bye.