Good morning, everybody. I'm happy together with Paul to present Covivio's 2024 results. Let's start page two with the key highlights. Those key figures illustrate a successful year for Covivio. Without mentioning all, what we see, reinforcement into hotel, a healthy balance sheet while values are stabilizing, strong operating performances, and growth in recurring result and dividend.
Let's go into more detail first on the transformation of the portfolio. Page five, you know our portfolio and unique model of diversification. This model, based on the three pillars you have on the right part, has driven the performance of the year and also been reinforced in 2024 by our asset rotation. See page six, with EUR 766 million of disposal agreement secured, 3% above 2023 values, and with an average exit yield of 5%. All in all, what do we see here?
Most of the agreements deal with offices worth EUR 361 million, close to book values, a mix between non-core asset and one development project in the south of Milan. In German resi, two interesting moves. First, the setup of a JV with a French investor, Caisse des Dépôts. Second, the continued progress of privatization with 40% margin versus book value.
Finally, in hotels, we include in those figures the swap transaction with AccorInvest, as it is a disposal on one side and an acquisition on the other. With this transaction and further disposals of non-strategic hotels, we streamlined the portfolio. In parallel, page seven, in 2024, we did for EUR 1.1 billion of investment at a yield above 6.5% and reflecting our strategic moves. Two-third of this investment were in hotels, including the contribution in kind for Covivio Hotels shares on the acquisitions of the AccorInvest OpCos.
In parallel, we reinforce our footprint into city centers office through our development project and continue to upgrade the quality of our German resi portfolio with modernization CapEx. Thanks to this asset rotation, 2024 has been a key year for the transformation of our portfolio, with more hotels and more centrality. See that page eight.
Taking a step back, since 2020, we increased by five points hotel exposure, of which three points in 2024. We also increased our German resi exposure, and finally, we increased the share of city center offices to 70% now. This trend should continue over the long term, as we show on the right part of the slide and as described in more longer during our capital market day last November. I will now leave the floor to Paul to comment on operating activity.
Thank you, Christophe. Good morning, everyone. The year was not only active on the asset rotation side, it was also active on the operating side, as you can see, starting with offices, page 10. We signed 176,000 sq m of letting during the year, a good performance across all of our clusters, as you can see on the right part of the slide.
On city centers, first, the main part of our portfolio, the occupancy has slightly increased to 97.6%, and in parallel, we benefited from a +12% uplift on our relatings. On major business hubs, our operated office offer is bearing fruit with letting successes, as you can see on the slide, on Saint-Ouen in Paris, Saint-Ouen So Pop, and in Issy-les-Moulineaux. This enabled us to increase by 200 basis points the occupancy rate to 94.9%.
On non-core assets, only 6% of our portfolio, we also have been able to improve the occupancy rate to 84.5%. Thanks to this letting activity, and moving to page 11, our office occupancy rate is up by 100 basis points to 95.5%. This directly contributes to a significant part of the strong like-for-like rental growth we had in 2024, +8% for the office portfolio. An active year also for hotels, and moving to page 12. 2024, as you probably remember, was marked by the asset swap with AccorInvest with, as you can see on the left part of the slide, the acquisition of the OpCos at 12% EBITDA yield in exchange of disposals of PropCos at 5% rental yield.
This deal was closed at the end of November 2024 and enabled us to merge OpCos and PropCos of 43 hotels, gaining the full control and the capacity to extract growth for this portfolio. Since then, we signed management contracts with hotel operators. We are fine-tuning the CapEx program, and we expect a 20% yield on this CapEx program.
In parallel, as you see on the bottom right part of the slide, on the remaining part of the AccorInvest portfolio, which is not concerned by this swap, we achieved joint disposals alongside AccorInvest to continue to streamline our hotel portfolio. This asset swap contributes to the transformation of our hotel portfolio, as you can see on the next slide, page 13. We keep our balanced revenue profile.
57% of the hotels are under fixed leases, in parallel, we gain flexibility and control on the variable part, moving from variable leases to operating properties. With this balanced model, we show on the right part of the slide the main elements. We have the security with long-term revenues on the leases. We have the growth potential of the operating properties.
Finally, the remaining part of the variable leases offers further asset management opportunities in the future. Moving to the performance now of the hotel portfolio on page 14. 2024 has been a strong year for us. First of all, we benefited from positive momentum on the market. RevPAR in Europe is up by 4%, a performance which has been driven by Southern Europe, especially Spain, +13%, but also Germany, +7%.
In this context, and moving to the right part of the slide, we outperformed with a 7% like-for-like revenue growth on our portfolio, benefiting from indexation on the fixed leases, +4.3%, and benefiting from the growth of the market and from our asset management deals on the variable revenues, which ends up at +12% growth like-for-like. That's for hotel.
Moving now to German Residential on page 15. Successful year as well. The increasing housing shortage benefit to our positioning. You see the reversionary potential we get on the relettings in 2024, +24% on average. Two years ago, it was +15%. On top of that, +36% only in Berlin. Overall, that means that we were able to accelerate on the like-for-like rental growth for this portfolio.
We were at 3.1% like-for-like growth in 2022, 3.9% in 2023, and 4.3% in 2024, thanks to this increasing reversionary and thanks also to the indexation. Berlin is outperforming. You see that on the right part of the slide, plus 4.9% growth.
Overall, moving to page 17, that means 5% increase at current scope for our revenues, up to EUR 680 million group share, thanks to the reinforcement in hotel, thanks to the dynamic letting activity I just mentioned, which enable us on the current scope to offset the impact of the disposal program. That means also, moving to the right part of the bottom of the slide, that we have a plus 6.7% like-for-like revenue growth in 2024. You see the drivers: indexation, three points, asset management, rental activity, plus 2.9 points, and 80 basis points coming from variable revenue in hotel.
Moving now to the financial results starting with the appraisal values. A word, first of all, page 19 on the investment market. 2023 has been one of the most calm markets overall, historically, we started to have a recovery in 2024, as you can see in this slide, 23% increase in the investment market, a recovery that we start to see across all our asset classes.
In this context, moving to our portfolio valuation, page 20, values are stabilizing, this has been confirmed with our appraisal values in the second part of 2024. After a minus 1.3% like-for-like value in H1, we record plus 0.2% in the second part of the year, which can be splitted between - 0.5 in office, where basically we have back to growth in the city centers.
You see Paris CBD + 3%, + 1% then on German Residential with the outperformance of Berlin. Keep in mind that this is block values, + 1% in the second part of the year into the hotel business, benefiting from the revenue growth, an increase of the yield at 6.4%. In parallel, our balance sheet has been further reinforced during the year.
We put the figures page 21. First of all, our LTV is down by 200 basis points to 38.9%, now in line with our LTV policy below 40%. Our net debt to EBITDA is also improving by 90 basis points to 11.4 x. With today, we have a strong balance sheet. You can see the main elements on the right part of the slide. We have a controlled cost of debt. We expect it to stay below 2.5% until the end of 2028.
We have a long-term debt maturity close to five years, we have a high liquidity, EUR 2.5 billion, which covers all the debt expiries by June 2027. Let's now look at the results, first of all, at the net asset value. Here, page 22, we put the NTA, which ends at EUR 79.8 per share at the end of 2024. You've seen the bridge. First of all, we had a decline in the first part of this year, linked to the value decrease I just mentioned, EUR 2.3 per share impact, linked also to the scrip dividend, which has been subscribed by close to 78% of the shareholders at a price of EUR 38.60 per share.
In the second part of the year, stabilization of the values and cash flow generation enable us to increase this net asset value by 3% over the second part of the year. Second main KPI for us is the recurring net results, and moving to page 23. We start with net revenue, which grew by 6% at EUR 686 million. What you can see in this P&L is basically that we have also improved our cost profile, decreasing the operating cost, and we were also able to control the cost of the net financial debt. Thanks to that, the 6% growth in net revenues became 10% growth in the adjusted earnings at EUR 477 million.
On a per share basis, we have the effect of the increase of shares linked to the scrip dividend and to the contribution in-kind in Hotel, and so despite the increase of the number of shares, we were able to stabilize the earnings per share at EUR 447. You see the bridge of the earnings on the slide 24. What we can do? First of all, we benefited from our reinforcement into hotel, increasing our stake to our subsidiary, Covivio Hotels. It represents 4 points in the growth of our recurring net results.
Putting that aside, we were also able to increase the results, kind of like-for-like on our portfolio, despite the effect of the disposals and despite the slight negative impact of the pipeline. This is thanks to EUR 40 million of additional revenues coming from the operating activity, and this is thanks also to the improvement of our cost base. Thank you, and I'll let the floor to Christophe.
Thank you, Paul. Let's now go look ahead with the outlook. Starting page 26, Covivio is entering 2025 stronger than before the crisis. Looking at the market first, we see positive fundamentals across all our asset classes, and we believe that the investment market is starting slowly to recover. In parallel, looking at ourselves, we have reinforced the quality of our portfolio.
We have demonstrated our agility over the last years and our capacity to innovate. On top of that, we can rely on a healthy balance sheet. For all these reasons, Covivio is in a good shape to seize new opportunities. In this context, and in line with the long-term ambition we provide at our capital market day last November, we fixed ourselves three main priorities for 2025.
To pursue the reinforcement of the portfolio quality and sustainability, to continue to extract growth from existing portfolio, and to deploy our operated real estate offer, a key component for our tenants. First, on portfolio rebalancing, page 28. We want to invest further in hotels. In this context, our subsidiary, Covivio Hotels, will launch a capital increase with scrip options on the dividend 2024. We will opt for the scrip option.
In parallel, on our portfolio, we continue to extract growth through conversion of office into hotels, through delivering of our office pipeline in the city centers, and through our CapEx program in German resi. We will also continue to streamline our portfolio by selling non-core or peripheral assets, and we have currently EUR 150 million of advanced discussions. Moving to the second priority, page 29, on growth potential. See some examples, office-to-hotel conversions.
We intend to launch in the next 12 months, two projects in the eastern part of Paris. Bobillot, a 3,400 sq m office building in Paris 13, and Voltaire in Paris in 11th arrondissement, on another 10,000 sq m office to be vacated soon by Orange. Overall, these two projects have a total budget of EUR 150 million, including the land, with an average yield on cost of 6%.
We also continue to transform office into resi. See this example in white, page 30. We are in a location well-known by upper middle class families and clearly lacking of quality housing. We just obtained the building permit to build 140 units, we start the work soon for delivery targeted in 2027. Here, the total budget is EUR 65 million, and we target a margin of around 10%. Staying in the resi segment and moving to Germany, page 31.
We continue to see there a lot of potential in our portfolio. The rental growth, like-for-like rent, is now significantly above inflation, and market rents continue to grow, especially in Berlin. Second driver, privatization, mostly in Berlin, where we have an highly divided portfolio. Over the long term, the potential value extractions amount to EUR 1 billion.
It will take time. The third driver, modernization programs, with yield from 5%-10%. Third priority, page 32, to deploy our operated real estate offer. Offering flexibility and services is key for many users in any asset classes. It also brings value flow to our asset. This is why we are frontrunner on this key element of our business and want to push further on it in our three business units. Let's take the example of offices, page 33.
Our approach of our operated real estate has been incremental to our letting successes. See the example of the left part of the slide. Three assets in markets with a lot of competitions. So Pop in the north of Paris is today 90% let. Maslö in Levallois is fully let. Urban Garden in Issy-les-Moulineaux is 85% let.
This approach is exactly what we want to do in CB21 tower in La Défense. You know that we have one single asset in La Défense, CB21. La Défense is a volatile market, but in the long term, it remains a good one. On the back of strong fundamentals, location, big and strong access to public transportation, and today, a record gap of rents bid versus the center of Paris.
That's why take-up in La Défense is really now rebounding by more than 60% in 2024 compared to 2023, and significantly above the 10-year average for +14% last year. In this market, our tower is one of the best-located assets, the closest to Paris, and in front of the Metro line. We already have propositions of lower floors in 2021, with an improved service offer.
Thanks to that, we are able to fully relet this part of the tower. Our tenant for the other part of the tower, Suez, is leaving in the coming months. They are occupying the best floor of the tower. We have there a dual strategy to relet those spaces. Relet the medium floor with a low level of CapEx. We already have advanced discussion to relet as it is, one first floor.
On the upper floors, we are defining a CapEx program to create state-of-the-art spaces and target higher level of rents above EUR 550 per sq uare meter. On hotels, page 34, we'll also further deploy our operated offer, changing brands and deploying high-yielding CapEx programs. Two examples here. ibis Paris Montmartre, an asset for which we bought the opco in the asset swap with AccorInvest just at the end of last year.
We just signed a new franchise, passing from Accor to an international brand. In the meantime, we will fully refurbish the hotel to higher standards. Another example, in Le Touquet Paris-Plage, a famous destination in France. Here, we will change the brand also, and we will refurbish and extend the capacity of the hotel. Overall, these two example of project offer a yield on cost. A yield on CapEx above 20% and a value creation above 30%.
Let's now conclude with the dividend and the guidance. First, page 36, with the dividend. As announced earlier in 2024, we come back to full cash dividend. We propose to the general meeting an increase by 6% to EUR 3.50 per share. Regarding the guidance for 2025, page 37, the good dynamic you have seen on our performance in 2024 should continue in 2025.
That means that despite the full effects of the disposal plan and progressive increase of financing cost, we expect to continue to grow recurring results and target a +4% in 2025 to EUR 495 million. That means that we expect a stability per share at EUR 4.47 per share, despite the full effect of the increased number of share of 2024. Before opening the Q&A session, what shall we keep for those results? Three key takeaways on my side.
We emerged from the real estate crisis stronger than before. During those two years of crisis, we have also demonstrated the relevance of our positioning on the back of strong results. We are entering 2025 optimistic, and we see a favorable outlook. Thank you to listening, Paul and myself, and we are not now ready with Paul, but also with Olivier Estève, our Deputy Chief Executive Officer, and Hugues de Ermiller, the Chief Executive Officer of Hotels, to answer your questions.
We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and One on the telephone. If you wish to remove yourself from the question queue, you may press Star and Two. The first question comes from Véronique Meertens from Kempen. Please go ahead.
Good morning, all. Thank you very much for the presentation and taking my questions. A few from my side. Maybe first on the guidance. You just mentioned EUR 4.7 stable per share, but in my calculation, I actually get it EUR 4.44. Just wondering if you are indeed expecting a stable per share basis. What are the exact drivers of the guidance? How many disposals or acquisitions or investments do you have penciled in to derive to that EUR 495 million?
Hello, Véronique. Basically, we will give you the precise number of shares, et cetera. We have some shares that we own. Maybe this is the explanation, but I confirm EUR 4.47 per share that is included in the guidance. In term of drivers, first of all, we have the hypothesis that we continue to have a good operating performance, outperforming inflation, basically. We will have also the full effect of the disposals of 2024. That's the main impact, I would say, to the guidance 2025. Not much of impact of the asset rotation of the year 2025.
We have a slight increase of the average cost of the debt. On the positive side, in addition to the like-for-like rental growth, we expect to have the full effect for 11 months of the swap with AccorInvest. We also have one quarter, in addition of our reinforcement into our subsidiary, Covivio Hotels. That's the main hypothesis.
Okay. That's clear. Maybe on those investment opportunities in hotels, what are you currently seeing in the market? How serious are the opportunities out there? Indeed, through the scrip dividends and of Covivio Hotels, you, I guess, hope to increase that stake. Do you already have an indication that the rest of the shareholder base might not take up the scrip dividend?
I will ask Hugues to speak about the opportunities hotel. After I will speak about those shareholders.
On opportunities, our priorities today is to strengthen our Southern Europe exposure. It's what we detail during our capital market day. One of the fair example that we have offered is the acquisition that we've done in December, with EUR 80 million acquisition under a lease agreement, mixed fixed and variable with Iberostar in the Canary Islands.
We continue to identify a lot of opportunities there. Spain, Portugal, and Italy. We benefit from local teams sourcing the market, and it's due to our confidence in finding good opportunities that we are offering this capacity to strengthen the Covivio Hotels balance sheet to easily finance those opportunities.
On the scrip at Covivio Hotels, at this stage, we don't know what will be the shareholder decide. What they will decide, the good news for us, if they subscribe, we have more capacity to invest in the hotel. If they will not follow, we'll reinforce our stake in Covivio Hotels.
Okay. That's very clear. Maybe one last thing for me. On the office lettings, you already briefly mentioned CB21. Just wanted to get a bit of a view on how you expected that occupational vacancy to roll out, because you mentioned that the middle floors, you're in advanced discussions. If you're refurbishing or have quite an extensive program on the upper floors, does that put a delay on the letting of the middle floors as well?
No. Thanks for this question. The tower will continue to be let. The first part of the tower today is fully let to 15 different tenants. We imagine, as I said before, to try to let with a minimum amount of CapEx, the medium parts of the tower. We have really one lease, which is ready to be signed for 1,500 sq m that will start in the 1st of July. We have other really discussions there. Just last week we have five visits. We imagine to be able to re-let a significant part of the tower as it is with the minimum level of CapEx on the medium part.
On the top part of the tower, we imagine really to improve the quality of the tower to offer, because there is really the best views comparison and so on. We imagine to be able to reach also a higher level of rents, and that will take little more time for that will not have any impact on the capacity to re-let the medium part of the tower.
Okay. That's very clear. Thank you.
The next question comes from Stéphanie Dossmann from Jefferies. Please go ahead.
Hello, everyone. Maybe three questions from my side. Regarding your non-core portfolio on offices, which is 6%, what is the strategy going forward? I know you quoted EUR 150 million in job discussions, but what can we expect in terms of disposals pace, I would say. Also on the German Office portfolio, what is your strategy there, given the value decline was very significant again this year.
The second question on German Residential, what is your view on the German elections? More regulation expected or not? I know it depends on the polls and the coalition. Do you have a view on that? Maybe last one, for the guidance of 2025, I agree with Véronique. I was at 4.44. Assuming the number of shares you disclosed in your report yesterday. Yeah, maybe a more precise figure on that and your indexation assumption for 2025, please.
Okay. First on the non-core office part. First of all, today it's only EUR 400 million value on your portfolio. That means really a small part of your EUR 15.5 billion of asset in group share. We reduce strongly this part during the last two years, thanks to disposal, but thanks also by the fact that the values were going strongly down this part of the portfolio by roughly 40% since the peak.
The strategy is really to exit from this part. We have really in the EUR 150 million of potential and advanced discussion today. Most of them are in this pocket, we will see after that if they will success through this year, or if will be for the next year. For us, in two years from now, we would like to be fully exit from this part.
In terms of value on German Office, part of the German Office are also in this pocket, it's also part of what we have today. Yes, you're right, the values are going strongly down also in 2024 in this pocket. I have to say, German Office remain a weak market compared to what we see, especially in Italy or in center of Paris.
We don't have the same dynamic in terms of letting and also in terms of investment. Today, when you compare just the prime yield in Milan are below the prime yield in Berlin. That's really when you are looking just to the interest rate, it's really strange, but it's the first time we see that. That's why really also there is this negative effect on the German Office market. We will continue to work and to try to improve the situation in the future.
In the German election, we will see the result of the election on Sunday. I think it is too early to have any view on that. What we imagine is that the right party will be part of the majority this time and as we expect, perhaps it could be small good news on the regulation, but really difficult to imagine, because we know that will be after the election, a discussion to build a coalition in Germany.
The question of regulation could be one thing on the table, but we are more optimistic than before on this topic also, and it perhaps could be good news for the future. On the guidance 2025, I will let Paul to try to answer another time to this question.
Stéphanie. We have 111.6 million of shares outstanding. Out of that, we have 0.8 million of treasury shares. If you exclude the treasury shares and you divide the EUR 495 million, you will find EUR 4.47 per share. Keep in mind, maybe this is what you used, the number of shares used for the NAV calculation is diluted. It means that it includes the free shares program.
Indexation.
Thank you. Maybe on indexation, what assumption do you take for 2025, please?
Basically, it depends on some, if it is directly linked to CPI or not, et cetera. Overall, around 2% indexation is taken as an hypothesis. We are slightly above on French offices because we have a lag effect due to the index, which are above as of today in terms of ILAT and ICC, and for the other part, it is really directly linked to the CPI. Overall, around 2%.
Thank you.
The next question comes from Florent Laroche-Joubert from Oddo. Please go ahead.
Thank you for the presentation. I would have one question about investment and disposal. What would be reasonable to expect in terms of acquisition and disposal in 2025? After the high volume of disposals in 2024, notably. Thank you.
We enter, as I said during the presentation, in a new part of the cycle. For us today, and we are able also to achieve our target in term of LTV. We imagine that we are at a low point of the cycle in term of values. That's why we will continue to push on disposal on what is non-core.
That's certainly not a question, that's something we want to exit. But we will, I imagine, reduce the speed of the disposal of what is core today in the future. That mean that today we could imagine to have roughly a minimum of EUR 400 million of disposal in 2025, taking into account what we could do. In term of investment, we have to finance all the CapEx plans that we have on our pipeline, and on what is also in the hotel sector.
What we have in mind. That's roughly EUR 250 million. On top of that, yes, we imagine to do some investments, and we will see what could be done in 2025, depending on the opportunities that we will find. As you understand, it will be mostly in the hotel sector.
Yeah. Can we ask you if you have some active discussion at the moment?
We have some discussions. As Jean-Thomas said, we can't say they are active, but we are, yes. We are studying some potential acquisition.
Okay. Thank you very much.
The next question comes from Alan Marley from Kepler Cheuvreux. Please go ahead.
Morning, guys. Thank you for taking my question. Just two. The first one on German office. Appreciate, I think you already answered this, but maybe just asking in a different way. Occupancy has been depressed there for quite a few years now. Is that something you expect to pick up over the coming years? Or does the economic and political uncertainty in the region, potentially put more downward pressure on occupancy levels there? Then just on the hotel portfolio, which you said that you would expect to increase, particularly in Southern Europe. Do you expect that mainly to be fixed leases? Or do you expect to continue growing your exposure to the operating properties beyond the current 40%?
German office, we have a target to increase the occupancy. We have some discussions now on some product, but I have to say it took more time than expected. That is sure. We will see exactly where we will be in the coming months. The market is really not as easy, as I said, that we see in France and in Italy. On the hotels portfolio, we like our current mix in terms of variable on what we have in terms of fixed lease and what we have in terms of operating properties. We would like to stay in this mix. That means roughly close to 60% fixed lease and 40% operating properties. We are currently discussing more, I have to say, on acquisition on fixed lease, but that could change. Pierre, do you want to add something?
Yeah. It is also not only about fixed lease, but our preference would be to have a more, I would say, upside potential through minimum guaranteed rent and variable part. This is probably more the evolution where we want to go. That was the example of the last acquisition that we have made. That will enable us to benefit from the outlook that we see on this part of Europe.
That's clear. Maybe just one. If the German portfolio in office was to remain particularly weak this year, maybe bit of a prolonged period of time, would you consider potentially some rotation, selling some of those assets and moving more into the hotel sector there with some of that disposal cash?
We have really today a significant part, as I explained, on the non-core office part, which is in Germany. That's already something which is planned. We will see. If we have opportunities to perhaps dispose some other asset in German office, we will do, but I don't expect that, I have to say, in the coming months. First, we need to increase the occupancy to work on the asset management. But in the medium term, yes, why not? To continue to dispose some German office asset to reinvest in the hotels in the future.
Yeah, thank you.
The next question comes from Adam Shepton from Green Street. Please go ahead.
Good morning. Hope you can hear me okay. Just one on capital structure and balance sheet. You set out, for a while now the split of the portfolio that you want to achieve. A third, a third, a third. Which is a changing risk profile, I think, to the overall portfolio. Can you talk about what you think is the appropriate capital structure and balance sheet, by 2030, in terms of debt EBITDA, in terms of debt maturity? Any other measures that you think about, assuming that that's not something you can achieve overnight, where do you want the balance sheet to be by 2030 with that change in portfolio mix?
What is sure is that we intend to continue to decrease our net debt to EBITDA ratio. Thanks with what you said, because we have really the investment in hotels is more accretive in term of cash flow. That will be mechanic, and that will be there. At this stage, we don't give targets to the market, but you can easily imagine where we could be in the future. With the same level of LTV, we will have less net debt to EBITDA ratio, that shows the future.
Okay, thank you
The next question comes from Celine Soo-Huynh from Barclays. Please go ahead.
Hi, Christophe. Hi, Paul. Just one question for you on German Resi, please. The best capital rotation you can think of at the moment is selling your low-yielding German Resi and investing into higher-yielding hotels. What are your expectations for German Resi privatization this year, and should we expect a ramp-up here going forward? Thank you.
Paul will answer this one. It is for you, Paul.
Thank you, Christophe. In terms of capital allocation, we like being diversified, as you know, and we like having this balance between high-yielding but also variable revenue structure with the hotel, and counterbalanced by the very low risk but lower yield of the German Residential portfolio. Keep in mind also that as we have seen in 2024, the growth of the German Residential has increased.
We are also very comfortable on the capacity to continue to further push on rental growth in this asset class, and we have the feeling that the values are troughing in the German Residential segment. Coming to your question more precisely on privatization, this is a strategy to continue to push on privatization. On a total share basis, it is more than EUR 80 million in 2024, and the target is to continue in this direction, EUR 80 million-EUR 100 million per year.
Thank you.
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Thank you. Thank you for everybody listening. See you soon for some of you in the former and future roadshow. Bye-bye.
Thank you. Bye-bye.
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