Ladies and gentlemen, good day, and welcome to the Covivio 2020 half-year results presentation. For your information, this conference is being recorded. At this time, I would like to hand the call over to Christophe Kullmann, CEO. Please go ahead, sir. Your line is open.
Thank you. Good morning. Thank you for all attending this call. I'm here today with Hugues du Halbaillac, Dominique Ozanne , and Olivier Estève. Let's start page four. I won't really comment this slide because you all now know these figures, but I just would like to stress two points. First, we are facing today an unprecedented crisis with very different impacts. Travel and leisure activities are strongly impacted. At the same time, offices and residential activities are more resilient. Second, what is different today compared to 2009 crisis is that there is no financial crisis. In real estate, there is today a lot of liquidity waiting to be invested. In this environment, our diversified business model is strength to get through this crisis. As you see on page five, 84% of our portfolio is made of offices and residential, when hotels account for 15% of our portfolio.
Moving to page six, what does it mean for our performance in the first half? We summarize here some key figures. Operating performance in hotels has been hit by the crisis, but we were able to keep a good set of results in offices and residential. Our portfolio is strong, +1% in like-for-like value, +15% margin on our EUR 400 million new agreements of disposals. We benefit from a healthy debt profile with a 41% LTV, six times ICR, and EUR 2 billion of liquidity. Let's now focus on our achievements of the first half. Page eight. First, we succeed in the takeover of Godewind Immobilien. We now own 89%, and we have fully delisted the company in May. As a reminder, this acquisition enables us to take over 10 core office buildings in the largest German office market for a total price of EUR 1.2 billion.
This portfolio has been externally valued at the end of June, 3% above the acquisition price. With this acquisition and our historical exposure in Berlin, we now own a EUR 1.7 billion office portfolio in the top five German cities, also a EUR 600 million development pipeline, mainly in the city center of Berlin. The German office market is one of the strongest market in Europe, thanks to a vacancy rate of 3.1% at end of June and a limited available supply under construction. Let's take a step back on page 10. During the past few years, we have been very active in Germany. You can see in this slide how much we transformed our portfolio in five years. Moving from mainly French portfolio to a European portfolio, growing our exposure to Germany from 17% to 36%.
This has been made thanks to EUR 3.5 billion acquisition in residential and in offices. Another key achievement of the first half is the success of our disposal program. I'm on page 11. We announced in February a target of more than EUR 600 million disposal for 2020. As of end of June, we already signed EUR 400 million of new agreements, and we did it with a 15% average margin on the 2019 appraisal value. It is interesting to stress out that most of those disposals has been negotiated and signed after the start of the lockdown. Let's look at some examples, page 12, by focusing on offices disposal agreements. They account for 90% of our disposal activity on the first half, and they are very good example of our different expertise. First, in development. All those assets have been developed or redeveloped between 2013 and 2017. In asset management.
Those assets are let to big corporates such as EDF, Vinci, Amundi. Thanks to those skills, we have been able to extract a 90% value creation versus a development cost and a 12% IRR before leverage on average. Some comments about our development pipeline on page 13. The lockdown has delayed the timeline of our project by three months on average. It has obviously an impact on our rents and property development margin expected for 2020, but the impact on cost is very limited. As a consequence, this does not affect the profitability of our pipeline. We keep a 6% target yield on cost and more than 30% target value creation. As a reminder, on page 14, we benefit from a high-quality pipeline in offices on residential project. In France, 14 project in Paris, Greater Paris, and Lyon.
In Milan, seven project located in Milan CBD and in two dynamic districts, Soshine and Symbiosis. In Berlin, our project are located in the better districts of the city. Let's now have some words on letting activity. First is in offices, page 15. Despite a letting market frozen by the lockdown, we continue to be active by signing 31,000 square meters of new leases in Paris, Bordeaux, Turin, and Munich, by renewing 83,000 square meter of lease, with an average plus 4.2 years of lease extension and plus 2.2% increase in IFRS rent. It is interesting to notice a plus 12% on average on our 12,000 square meters of renewals in German offices. On the release side, we have seen some departure of tenants, mostly in Paris and La Defense. In German resi, page 16, activity continued to be active, thanks to strong market fundamentals.
On the letting side, we continue to extract the reversionary potential in North Rhine-Westphalia, Dresden, and Leipzig, gaining plus 15% versus previous rent. In Berlin, we continue to prioritize existing and new apartment with a very high margin. Moving on slide 17, rental collection has been strong in offices and residential this semester, despite the environment. This is a perfect illustration of the quality of our tenant base. In offices, 91% of our revenues come from large operators, such as Orange, Dassault Systèmes, Fastweb, and so on. Unpaid rent come mostly from ground floor retail in offices on residential buildings and from non-strategic shopping center in Italy. Let's focus on hotels, page 18. Our hotel portfolio has been mostly closed during the lockdown. For the hotel in lease, we enter into negotiation with our partner in order to help them getting through this crisis.
We already signed agreement with 8 operators, representing two-third of our lease portfolio. There are win-win agreements. Operators need to secure their short-term liquidity when their hotels were closed. We granted them deferred payment or rent-free periods. In exchange of that, we are able to extend this maturity for 4 years on average. Thanks to those negotiation, our hotel lease portfolio is let for 14.7 years firm on average. Now, I leave the floor to Cédric Duval to comment the results in details.
Good morning, everyone. Before moving to the financial result, let's share some comments on our revenue during this first half. Page 21, group share revenue amounted to 302.3 million EUR during this first half. In the positive territory, we have a decent growth on offices in France, Italy, and Germany, and +2.9% growth on residential. On the negative side, our hotel activity posted a -50% decrease, which leads overall to -7.5% and 1.9% for office and resi only. Regarding offices first, on page 22. Overall, the main part of our revenue base delivered 1.4% like-for-like rental growth, with occupancy standing at high level.
If France performance has been mainly driven by indexation and other effect being offset, mainly positive reversion and decreasing occupancy, in Italy, the performance has been strong, mostly in Milan, where we benefited from stronger reversion during this first half and also a bit of indexation. Last, on German offices, an increasing business line that we are now reporting as is, has benefited from a +2.8%. The Godewind portfolio acquired early this year is not included in those figures. Occupancy on this portfolio is now at 79%, as we have come to a financial agreement with WeWork early in July in order to cancel the lease of 21,000 sq m in Düsseldorf. This decision was based on the outcome of this negotiation and our confidence to improve the overall rent roll of this asset. Page 23.
German resi portfolio continues to deliver attractive rental growth with a +2.9% increase during this first half. Berlin performance is progressively reducing with the implementation of the new regulation, but the other part of the portfolio is progressing very well with a +3.6% during this first half. The appeal versus this new Berlin regulation is organizing in front of the Federal Constitutional Court. An interesting news came recently from Bavaria, where the Constitutional Court confirmed that that was a federal competency and not a local one. Finally, page 24. The hotel activity has been strongly impacted during this first half, with -50.5% like-for-like performance. The portfolio has been differently impacted depending on jurisdiction and revenue structure. First, on variable leases, which are mostly economic hotels in France, let to Accor. It's a -67% decrease versus 2019, with now progressive reopening starting mid-June.
Our operating hotels with management contract, that are mostly in Germany and for the remaining part in France, it's a 78% decrease versus 2019. The portfolio in the U.K. fully let to IHG. This is where the impact is the strongest due to a longer and stricter lockdown period and reopening phase that is not yet certain. Due to this unprecedented situation, the MAC clause that we have in our lease fully applies, and we should not perceive any rent this year. On the remaining part of our portfolio, consequently, mostly all the hotels let to B&B, NH, and other Spanish hotel operators in Europe, we have posted a slight decrease in like-for-like, -1.9%, mix of incentive granted and change of hotel operator occurring during this period, with some months dedicated to rebranding. On the financial result. Page 26.
Our portfolio has proven to be resilient, with a +1% like-for-like value growth during this first half. This is mostly driven by development pipeline that continues to boost office performance and German resi, where both yield compression and rental growth contribute to the 4.2% increase. On hotels, values show a decrease of 3.4% during this first half, mostly driven by the important drop on revenue expected in 2020 and partially mitigated by the longer leases we obtained in the negotiation. Hence, the most important decrease has been on the U.K. portfolio and the operating properties. Moving to page 27, the scrip dividend this year has been chosen by 82% of our shareholders, which leads to a EUR 343 million of capital increase aiming at financing the investment program, and specifically the Godewind acquisition. Those share issued at EUR 47.8 represent around 8% increase of the total shares of Covivio.
For those who choose this option, they obtain a 34% performance in two months. On the debt side, page 28, the metrics have not changed significantly. LTV stands at 41%, close to our objective to be below 40%. This target will be achieved within the next 18 months without new equity. The cost of debt keep on decreasing during this first half, with a steady debt maturity and no major refinancing before 2024, thanks to the recent bond issuance made in May. Our EPRA NAV, page 29, increased by 7% over one year, thanks to the dividend in share and the performance on the asset revaluation. In EUR per share, the NAV comes from EUR 100.6 end of June 2019 to EUR 99.8, mostly due to the dividend in share that has roughly 4% dilutive impact for those who have not taken it. Moving on the P&L, page 30.
We have, for this first half 2020, an EPRA earnings of EUR 192.4 million, versus EUR 219.7 million in 2019. This represent a decrease of 12.4% versus 2019. We have described on this slide the four main explanation of this evolution. The impact of our asset rotation strategy. That means that during first half, the revenue from new buildings that has been developed or new acquisition has not completely offset the impact of the disposal plan. The positive contribution from our office and resi portfolio, which posted decent rental growth during this first half. The positive effect of the last 12 months decrease in the financial cost. Last, what we have estimated as the impact of the COVID crisis, which is mainly coming from two effects in H1, the hotels and the rental provision.
Based on this analysis and our best estimate so far of what could be the performance of a second half, we have done, as announced in April, when we withdraw our initial guidance, a new guidance for 2020. This is based on few hypothesis. First, on hotels, the performance in H2 will be similar to H1. Second, on provision for unpaid rent, an important part has been booked on the Q2 rents, mostly on retail, but we should have additional provision in H2. Third, on offices, due to the strong decrease in the take-up in Europe, we will suffer from increased vacancy and delays on letting activity versus what we initially forecast. Fourth, and last, the lockdown on delays in the development activity has postponed some rent on the pipeline and development fees.
Those four explanation lead us to estimate that EPRA earnings for 2020 should amount to around EUR 380 million, which means EUR 4.15 per share. I will now let Christophe conclude on more longer term views.
Thanks to Duval. Before I answer your questions, some good comments on the potential future for us. What are our perspective? First, I have to say, our purpose doesn't change and is even today more relevant, to build or redevelop new buildings, to foster links between users in your building and bring them wellbeing. Today, this is key for our tenant and end users. There are obviously things that need to change or to evolve. On page 34, you see what we will do in the coming months. Let me go more into details in the slides. First, page 35, in offices. We will accelerate mature disposals on top of what we have already done in the first semester. Our target is to sell EUR 400 million of mature office asset in the next 12 months.
At the same time, we will continue to invest on development project in the CBD of Paris, Milan, or Berlin, creating spaces fully fitted to our end-user needs. Regarding our development pipeline and focusing on residential in France, page 36. As you already know, we have a strong expertise in residential in Germany, but also in France. In 2018, we created a dedicated residential development team in France in order to maximize the value of our buildings by transforming obsolete office buildings into residential to be sold. 130,000 sq m has been identified in location short of supply in residential, such as Greater Paris, Bordeaux, Nantes, or Nice. As of today, three projects are committed, the picture are on the slide, and are already fully pre-sold. Hotels is facing a steep crisis that people will always want to travel and to meet.
It will be progressive, but activity will come back. We will buy in September the 8 prime hotels in the heart of top European destination as announced few months ago. Last, but not least, on page 37, being more digital, offering more services and flexibility are trends we had already identified before the crisis. During our capital market day last year, we had presented you those trends and our digital and service strategy. This crisis is accelerating those trends. This leads us to intensify our strategy. Wellio is a good example of that. Today, we have 5 sites open with a good track record. We will continue to offer in some of our new buildings this service. The next opening will be in Milan in September, a few steps for the Duomo. It is already booked at more than 50%. Now we are available to answer your questions.
Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press the star key followed by the one to ask a question. We will pause for just a moment to allow everyone an opportunity to signal. Our first question will come from Christopher Ferrantino of Morgan Stanley. Please go ahead. Your line is open.
Hi. Good morning. I just had a few questions. The first is on the Godewind transaction. Can you just confirm whether the valuer that you have used is different to the one that Godewind previously used, and what the components of any change in valuation are there, please? That's the first question. The second question is just if you could give a little bit more detail on the WeWork transaction that you reference, some detail on whether that was planned, and what your plans are for that vacancy, please. Thirdly, I wanted to ask you about the decline in hotel valuations, which seems relatively light given how far the income has fallen. I appreciate that the income is likely to return, but can you just give us some more clarity about what your valuer is assuming, and how that valuation decline has not been more extreme, please?
Thank you.
Thank you, Chris, for these three questions. On Godewind, yes, we changed the appraisal value. It's a CBRE that made the appraisal. I need to check, but I think it's the case. It's really a new appraiser that was looking in detail in this portfolio, and the valuation was made, also taking into account the fact that was not in the Herzog Terrassen asset. On this WeWork question, we signed with them a financial agreement in July, which was, I have to say, in the benefit of the two parties. WeWork asked for the agreement to be confidential, that's why we will not be able to give you completely the details on this transaction. Herzog Terrassen is a very good quality building in the CBD of Düsseldorf. A sub-market where only today 8,000 square meters are available.
We are confident to be able to find, in the coming months, new tenants. That's on this point. For us, I let Dominique to answer directly the question on the appraisal on the hotels asset.
Concerning the valuation on hotel, of course, the decrease seems slow compared to the decrease in revenue. The -3% is an average, which take into account the -8% in the U.K., for instance, but also the successful lease negotiation we finalized. Of course, the job of the valuer was not easy considering all the uncertainty we face in the Q2, and their valuation has been confirmed by the appetite in the last months because a lot of new funds raised some equity in the hotel sectors. For example, Brookfield, Primonial, Starwood Capital, raise some money on the equity sectors. After, we had a lot of transaction, even very recently, which confirmed our valuation. After, if we speak about the hypothesis of the expert, they take into account a progressive recovery in 2021 and 2022.
To be more precise, in 2021, they take into account a round up. They consider a decrease of 25% in terms of turnover compared to the last year.
Compared to 2019.
It's 25% down in 2021 relative to 2019. Is that right?
Yes, exactly. Next question.
Question comes from Florent Laroche-Joubert from Oddo. Please go ahead, your line is open.
Hi, thank you very much for the presentation. I would have a three question for you. First question is to know how confident you are in executing your disposal plan for EUR 400 million in the next 12 coming months. My second question would be on offices market. Now you operate on maybe three offices market. My question would be, if you have to do a ranking of these different offices market, what will be this ranking and why? My third question will be on the residential transformation business. Beyond the projects already identified, at what pace do you want to develop this business? Thank you.
Thank you for this question. Yes, I have to say, we are really confident on the execution on the disposal plan, because today we have EUR 400 million of new agreements, and as I said, mostly negotiated after the lockdown. Today, we are ready to say EUR 300 million of advanced negotiations, we are really close to finalize this negotiation. Really today, what we see is there is appetite in the market for stabilized asset and with also decent value. You've seen that we were able to dispose in this first half with a really important margin compared to the last appraisal value. The assets that we're negotiating is the first half. That's on the first point. On the second point, office market. Today, we are a European company. What we want is to be present in these three main markets that we consider France, Germany and Italy.
We have in each, on these three countries today, strong teams that are able to manage asset, but also to create and to develop new buildings. What we want to do in the future in these three country is more to continue to grow in the office sector through development, and that's why we push on the development side now, also in Germany, as we are doing in France and in Italy. On the transformation business, what is important for us is to have the skills and the capacity to do that. That's why we want to stress this point during this presentation, that we don't wait the COVID crisis to start to think on transforming obsolete offices into resi. It's something that we already have put in place.
We have, today, a lot of projects, of assets that we manage that will be vacated from large tenants we have, and to be transformed into resi. We have, for example, a big project in Bordeaux, 40,000 sq m. It was a former IBM asset. We have also a large project in Nice, which is, today, an office asset fully let to EDF that will be vacated by year-end, and we are currently negotiating with the municipality to obtain the capacity to develop 25,000 sq m of resi. It's really part of what we will do, and we will continue to do that. I think it's a way to optimize the value of the portfolio we have, and we have the skills.
Okay. Thank you very much.
Our next question comes from Celine Houin from Barclays. Please go ahead. Your line is open.
Hi, good morning. I just have two questions on property values. The first one is, your peers in France recently had its office values adjusted downwards, we've got lower inflation, but your like-for-like value growth was positive in French offices. Appreciate there are some value adjustments from the development pipeline, but if you could give a comment on this. The second question is, your disposal program is on track, and you're selling double digit above book value, which is a rather positive print. What is preventing your valuers from taking this into account when they value the rest of the portfolio? Thank you.
I don't catch the second questions exactly.
Do you want me to repeat my second question?
No. Okay, I understand. It's clear. Okay. Like-for-like value, what we can say today, first, the disposals demonstrate the valuation, because when you have so many disposals, because it's not only one asset, I have to say, different disposals that we'll be able to achieve during this first half, and we give some example in the press release. Really today, that means that there is an appetite for those assets we have, and perhaps in some part, appraiser with less comfort in the past for the appraisal to have a good valuation on those assets. What is key for us in the office part is the development part. We have an important pipeline today, with a target value creation of more than 30%. You see that the asset that we dispose, we create in total 90% value creation of that since the starting of this development.
This, how to say, important development pipeline will continue to be a strong support of the evolution of the appraisal value in the future. That, I think, for me, is the main point. The second point is that we have a very important occupancy rate, 96% and 98% in Italy today. That helps a lot in this period to also support the appraisal value. The second point was, okay, what is today the appraisal value? What we take into account in your figures in June, most of this agreement are in this valuation. In the figures we give, it's plus 1% on average.
Thank you.
Our next question comes from Alvaro Cerrillo of Bank of America. Please go ahead. Your line is open.
Yes. Thank you. Three questions on my side. The first one on rent collection, the 96% in offices and residential, and the 60% in retail, do they include the impact of deferrals and rent waivers and rent holidays? I mean, it is a cash rent collection. The second question is on your capital structure. Given your LTV, about 40%, the CapEx, and also some forward acquisition you need to close, should investors start to discount a scrip dividend this year? How do you approach that discussion? The third one is probably on office vacancy. You expect 10% impact out of the EUR 100 million impact of COVID-19 on your EPS to be attributable to office vacancy. Can you explain a little bit, where do you see that vacancy coming from and which tenants are at risk? Thank you.
On rent collection, Philippe Boyer?
Yeah, on rent collection, I confirm this is a cash rent collection that we report on this presentation. Second question on scrip dividend. What we said, it is linked to the LTV policy that we have, is that we stick to this below 40%. For doing that, we will rely on our disposal program. No new equity is forecast in this objective.
No scrip dividend is also forecast for next year. On the vacancy in the office, perhaps Olivier, one word on the evolution of the office market, and why is this EUR 10 million?
Why is this EUR 10 million? In the vacancy, what we see that it's probably the vacancy which will increase slightly in different markets, but nevertheless, we have very low vacancy rate, both in Paris and German office. In Milan also, the situation is quite good because you have a scarcity of new state-of-the-art building. As Christophe mentioned, our main issue are on the development pipeline. It means that we have a building, I would say, well-fitted for this environment. What we have seen from the lockdown is the market has been frozen, of course, during this period. Now the activity is improving a little bit, and we expect more activity for the Q4 in all the market where we are.
One quick follow-up question, again, on your capital structure and on your LTV. Just to confirm that, as of today, there is no discussion on a scrip dividend. Given the LTV is way above 40%, you have some CapEx commitments, we could see, although is not granted, of course, some further property devaluation in H2. It is something that is not under discussion right now?
Yes. Really, it's not under discussion. We don't expect to do that in the future. After that, if there is specific situation, we will always look at it. Today is really not what we have in our plan. We have, as we said, a capacity to dispose assets with a strong appeal in the market. We will do that. In term of investment, we have a small postponement in the CapEx plan. That will also need to be taken into account in the future. I have to say, today, as we saw in the first half, we don't expect a decrease in the valuation in our asset. We will see where the market will be.
thanks to the appetite we see mostly in the office sector today, but also in the German resi sector today, we don't expect, in total, the valuation going down in the future.
Thank you very much. Very clear. Thank you.
Our next question is a follow-up from Christopher Ferrantino of Morgan Stanley. Please go ahead.
Hi. Just wanted to quickly ask two follow-ups. One on Berlin residential. What is your latest expectation for a result from the courts on the Berlin residential rent freeze situation? The first one. Then the second one, a more general one. You mentioned accelerating trends in office. Can you just explain how you assess the impact of working from home trends on office demand? Do you see that as something that is significant over the medium term for office demand and for your portfolio?
Okay. Thank you. I will answer on the Berlin situation, and Olivier on the trends in the office sector. What we expect today, which is today, something, nobody knows exactly the future, but we have our own opinion. On the rent-free situation in Berlin today, we are waiting the evolution of the discussion and the Supreme Court decision, but what Tugdual said on the Bavarian situation is really interesting to notice, and that it really gives some more support to the fact that this law could be canceled in the future. The question always the same, when? Today, I imagine expectation of the cancellation of the current law is increasing. Perhaps Olivier on the expectation on the future of office and so on.
Okay. It's a vast question. First, I think we need to split what is more conjunctural than structural. The first outcome of the situation is that immediate impact relates more to the crisis and the need for company to find and to reduce cost and cost-cutting. In the same time, more in medium-term, what we see that only may be an acceleration of trends which are already seen in the market. Companies are looking for space that promote collaboration, enhance the corporate culture, or act as a leverage in the transformation of the organization. The question of remote working was already on the table, and all companies are thinking about, I would say, a well-balanced solution between offices, remote working, and flexible solution.
Again, with our strategy mainly focused on development and the quality of our building, the location, the quality of the asset, and which we are able to provide, I would say, state-of-the-art building, flexibility, and also to support the strategy in terms of well-being and care. We are well-positioned in the market. Again, what I said is that many of the decision were on hold due to the situation. We see, when we discuss with brokers, there are lot of discussion and the demand express is high. We expect, I would say, more activity by the end of the year. With our portfolio, we think we can take the benefit of that.
As a reminder, if you wish to ask a question, please signal by pressing star one on your keypad. Our next question comes from Laura Gomez from Kempen. Please go ahead.
Hi, everyone. Just a quick question following up on your comment regarding valuations. We've already seen yields in your portfolio moving up by around 10 bps, which is arguably not a lot. Vacancy is ticking up as a direct result of this crisis, and there's likely to be more tenants under duress as the H2 progresses. Do you think it's realistic not to expect a decrease in valuations against this backdrop? Thanks.
Tugdual will answer this question.
For valuation, we said different times, the best example is what we've done in terms of disposal. What we see on the ground, on the asset that we put under disposal, is that we have a very strong appetite from investor. It's fair to say that, as we said also, we anticipate a slight increase in the vacancy, et cetera. On the other side, we have a very strong expectation in terms of disposal plan, and we do not anticipate for H2, for offices specifically, any impact of what you said. Our base case is today, let's say, steady or slight positive figures in terms of office valuation.
Okay, there is some question on the net, so I will just read the question and then after that we will give the answer. First one is, can you go above your EUR 600 million disposal target in 2020? Do you have a target for 2021? No, the first one, yes, really. EUR 600 target, we always said that the target is to dispose more than EUR 600 million of assets. Yes, we imagine today to be above these figures, and we give more color, I imagine, during the Q3 results. For target on 2021, it's too early to give a full year target, and that will be given at year-end. Can you give the details of the underperformance clause for the U.K. portfolio? What is the threshold? Dominique to answer this point.
As it works, the lease contract provides us a fixed rent during 25 years, with an exception if the loss borne by the hotel operator account for more of one-third of the rent. In this case, the rent is adjusted consequently. Of course, as this crisis is exceptional, we consider the MAC clause will apply in 2020. Just to remember, today, only four hotels of the portfolio of 12 hotels are reopened today. We are in exceptional situations.
The last one was, do you see the crisis as an opportunity to further simplify the structure with the buyback of minorities of Covivio Hotels? What is important in Covivio Hotels shareholder base is that we are side by side with long-term investors, with deep pockets, because they are insurance companies, and together we will face this crisis. That's really what we have. With this situation is really, I have to say, very supportive of this activity because with this long-term investors, mostly insurance companies, we have a strong support that was fully committed this year to take all the dividend in shares. That was helpful for really Covivio Hotels, and we will continue to work with them in the future. There is no plan to buy back these minorities in the near future. I think it's the end of the question.
Thank you, everybody, for attending this call, I'm sure we will see some of you in the coming days. Bye-bye, good holidays for everyone.
This will conclude today's conference call. Thank you all for your participation. You may now disconnect.