Morning everyone, and welcome. I'd like to welcome you to our results presentation for the financial year ended 31 December 2024. I'm joined here this morning by my colleagues, Razvan Sin, who's our Head of Leasing, as well as Cobus van Biljon, who is our Financial Director.
It's been a good year for Lighthouse. We're excited to show you what we've been up to. We've done a lot of acquisitions. We've rotated out of our Hammerson position, and we've completely transformed the business, I think, over the course of the year. In terms of proceedings, I will deliver my part of the presentation. It covers the overview, some of the acquisitions, as well as the highlights for the year.
After that, I'll hand over to Cobus, who will cover the financial results and some of the financial KPIs. Razvan will take you through some of the leasing initiatives as well as the projects we've been busy with. In terms of questions, I think at any point in time, there should be a chat box on your screens.
You can just type in your question, send it through. We will receive them here, and we will answer them at the end of the presentation. I'll start with the overview. I think before I leave here, I'd just like to talk to this picture a bit. It's, it's the food court at Forum Coimbra. It was refurbished. It was completed in the early part of 2024. Completely redid the floor.
There were some cone structures in the upper areas of this, of this part of the mall. They were removed. It's improved the lighting, improved the look and feel. I think most importantly, we increased the seating area. We did this by shrinking the voids to create more seating for the shoppers.
It's actually was over-trading. It was a bit on the small side. Since then, it's actually improved. The seating and performance has continued to improve. I'll cover our strategy. It's Northern Europe and many other places around the world, there is depopulation and there is urbanization. We're only focusing on the metros. If you look in Spain, along the coastal regions, those areas are growing quite nicely.
We're focusing there, avoiding the depopulating areas altogether. Tenant focus. This is, when we talk to this, it's specifically Primark as well as Zara. It's getting to a point now it's not just Zara, it's having a flagship Zara with their current, with their current concepts. I think I'll just skip to the last bullet. It's conservative risk management.
I think I'll explain this by way of maintaining low levels of gearing, having capacity to take advantage of market conditions. At the beginning of 2024, we were sitting with an LTV ratio of around 14%. Put us in a very good position to take advantage of the market, which became a buyer's market. We were able to use our leverage, use our low gearing to acquire 4 shopping centers.
At the beginning of this year, 2025, we were on 25% LTV, again, putting us in a position to already have acquired 1 center. We are in discussions and due diligence and actually exclusivity on another asset, also in Spain.
I'll take you through some of the highlights. This is across the portfolio in all of our centers, in all of our jurisdictions, and very, very attractive number if you think of the inflation over the same period, which was between 2% and 3%. LTVs increased from 14%, now currently 25% at year-end. Since we've acquired Alcala Magna, it's now sitting at 31%, and we'll grow a bit more from there with the completion of the acquisition that's currently under exclusivity.
I think one of the most, the largest accomplishment or the biggest accomplishments for the year was rotation out of Hammerson. It was 16% at the end of the year and end of 2023, which was sold out completely during the course of 2024. That's come down from 22.8% at the end of 2022. It's a full rotation out of that holding.
We also disposed of Planet Koper, and these proceeds were used to acquire 4 shopping centers. Total invested was EUR 542 and a half million. I think we were among the most, if not the most, active investors in the Iberian market over the course of 2024. I think I'll use this slide to. Extremely attractive for buyers.
Institutional investors had reached a tipping point where they are now forced to sell or had to sell assets. We had liquidity in the form of Hammerson. The decision was made to liquidate that position and rotate into physical assets.
I think we were surprised at the speed at which that was done. We thought probably in the beginning it would be a 2 to 3-year strategy to implement. It was implemented in less than 12 months. We opened the year, 39% of our assets with Hammerson.
This was our largest exposure. Spain was 18%. It was a single asset. Portugal was 21%. Again, a single asset. France was our largest physical property exposure. It was 4 assets, 60% of those 4 assets. Slovenia was 8%. We had 1 asset in Slovenia.
During the year, we've acquired 3 assets in Spain, 1 in Portugal. We've disposed of Planet Koper in Slovenia, and we've also disposed of our Hammerson plc holding and rotated into those physical assets.
You can see at 2024, it's become a lot more clear, the strategy is a lot more defined. Let's continue to look at 2025 at our projection. We already have acquired 1 asset. We are in discussions on an exclusivity on a further 1, and we anticipate Spain and Portugal to be about 86% of our total exposure at the end of the year, with France being 14%.
If you have a look at Lighthouse, the business has become very simple. Investing in Lighthouse, you're investing 85 or 86% in Iberia, 14% in France. It's only shopping malls. It's only dominant shopping malls.
There's no retail parks, there's no residential. It's a very clear, concise, easy to understand strategy. The slide summarizes a lot of what I've already said, but I think the most important is the vacancies, which I'll speak to. Our portfolio vacancy at the end of the year was 2%. It had come down quite nicely.
This was off the back of a reduction in France. It was at about just under 8% at the beginning of the year, declined to 5.8% by the end of the year. I think what is worth noting, it's not just a reduction in the vacancies, it's also a massive improvement in the quality of. Yeah, just over 14% growth on NPI. France did have a nice recovery for the year.
In Spain, sitting at 0.9%, most of this vacancy is concentrated at H2O, which is the center you see in your picture there. That mall was acquired with a refurbishment provisioned in. This is about EUR 10 million. We're looking to decrease the size of that lake. We're also redoing the interior, improving the look and feel.
Also, we'll be retiling the center. That project is currently underway, and Razvan will speak to it a little bit later. This is just a slide summarizing our strategy. Strong economic underpinnings. We do see and we have seen many opportunities where yields are attractive. We see yields of 8.5%, 9% for some centers that come across our desk. Usually, won't have a Primark or don't have a Primark.
May have a Zara, but you'll see it's an old Zara, and if you look closely, there'll be a better performing, larger, stronger Zara within the proximity. There's risk attached to that yield, so we prefer to buy quality. I think the slight sacrifice on yield outweighs the slightly higher yield you would get on a poorer quality asset.
Summary of the acquisitions for the year. I think what's worth noting here is getting to formal processes with 3 or 4, 5 different bids being received. Along with that, you're seeing a compression in the yield. We think the tempo will slow down going forward and the tempo and frequency at which we acquire will also slow down.
I've been asked, I think it's a good time to cover the growth and where we see the growth coming from, 'cause we have been asked a few times, saying that these assets are fairly mature, that we've been buying, they're 15-plus years old, mostly fully occupied. They've got all the tenants.
They've already got Primark, already got Zara. They're already dominant. What's the upside? How are we gonna grow our, our income, and what's the return upside gonna be from these centers? It's, it's fairly simple.
You're buying these specific centers at a very specific point in the evolution of that mall. This is where consolidation is happening. If you look at the centers we've acquired, you see Salera there. It was acquired in January.
Just in January, actually, at the end of January, Zara closed on the, on the high street of Castellón. This is the only mall in that city and it caters to the broader region. All those sales just simply migrate from having gone to the city center to this mall.
That will continue as you improve and keep on enhancing the tenant mix and quality. Then you see the vacancy at the end of the year, 0.2%. Just a picture of the interior of Salera. Just give you a. You look at H2O. This was the second acquisition for the year. Look at the sales growth, 10.1%. Look at the footfall growth, 3.7%. There were also new tenants coming.
Druni, also another one of the major perfumeries in Spain. Also Inditex brands expanded their offerings and upgraded to latest concepts, vacancy sitting at 2.6%. We acquired it at 3.5%. It's come down somewhat. With that refurbishment, which I mentioned earlier, we expect that to continue declining.
The other thing worth noting on this center is it's in a very rapidly growing residential node within Madrid, probably one of the fastest-growing residential nodes in Madrid. It always, in addition to consolidation, it will always just have a tailwind from just simply population growing quite rapidly. It's a picture of the interior of H2O. You see Druni, which I mentioned earlier, the perfumery. Pull&Bear, I also mentioned, Inditex brand that upgraded and extended.
This floor has actually already been lifted up and retiled on the upper level. We haven't got to the bottom level yet. It was provided for on acquisition. The floor was identified as being of a poor quality. It was deteriorating in some places, and it's undergoing a full replacement. I think that'll further drive the footfalls and sales of the mall.
Alegro Montijo acquired this in September. Also good sales growth, 7.3%. Also nice footfall growth of 7.6%. Primark opened quite late yet. It was a new entrant to the center. It opened in the fourth quarter of the year, so the Primark impact was only for 3 months. I think the first month was 30% odd up and then 20% odd for the following month.
A big boost in the footfall growth, following Primark having opened. There you see the vacancy sitting at 0%. There's another picture of the food courts in Alegro Montijo. Another picture of the interior of Alegro Montijo. You see it's quite a upmarket finish. You can see the Portuguese paving on the bottom there, on the flooring side.
Nice natural light, full-line tenants. I think you can see from the picture, this is a proper regional shopping center. Last acquisition done during 2024, acquired in October. This is Espacio Mediterráneo. Sales growth of 13.8%. The story here is Alcampo. You see the brand on the top of the mall there. That's Auchan. They replaced an underperforming grocer.
When I say underperforming, it was on a national scale. It was a concept that wasn't working. They vacated, they were replaced with Alcampo on almost 2x the surface, and that's simply what's pushing that sales growth to these types of levels. Interestingly, this mall has one of the best performing Zaras in our portfolio. It is actually trading on an old concept.
We are well advanced in discussions and with them close to signing leases. We do have the rights already to expand the existing Zara and upgrade that to their flagship concept. We think when that does happen, they will likely move and close on the high street and carry on again, pushing footfalls and sales growth into the future. It's a picture of the interior of Espacio.
You see the Primark on the bottom there, just behind the escalator. Bottom right, you just see the entrance to the Alcampo that was recently added. I'll just recap on the most recent acquisitions done just over a week, two weeks ago, not even. This acquired on 6th of March. It's acquired for EUR 96.3 million.
It's one of our smaller assets in Iberia now. This was paid for by a subrogation of an existing loan that the seller already had. That loan simply transferred across from us along with the center, and then the balance of the proceeds was funded from existing cash resources. Those cash resources came out of the disposal of Planet Koper. It's a picture of Alcala Magna.
It's not in the December numbers because it was acquired post year-end. You see another good year of sales growth. It's off the back of Primark, which opened earlier in the year. A strong impact there, especially on the footfalls.
Another good thing with the center would be that Zara have already signed a lease and are going to increase the footprint they're currently on. We'll upgrade to latest flagship concept. That will be included in the purchase price.
It will be funded by the seller effectively. Again, I think once that's completed, we'll see more sales growth and footfall growth into the future. This picture of the interior of Alcala Magna. Again, nice finishes. You see the Primark in the back there.
For those that are interested, they replaced H&M. I mean, we're happy with the center, I think the Zara, as I mentioned earlier, coming in will also further improve and improve the footfall and growth going forward. Lastly, I'll just cover the portfolio performance. I've mentioned some of this already.
I've gone through the weightings. I think worth noting the growth in Net Property Income is a like for like growth in Net Property Income. If you look at Spain, it's literally one asset. The Torrecárdenas, if you look at Portugal, that's the performance of one asset. France, on the other hand, is the entire portfolio, four assets held on both sides of the year.
Sales growth, 7.8% for the year. I mentioned it earlier. Very strong performance out of Spain. Footfall growth, I think across the geographies was a nice growth in footfalls. I mentioned this as well, vacancies at 2% at the end of the year and the breakdown of the jurisdictions. With that, I will hand over to Cobus.
Before I do, I mentioned the food court earlier in Forum Coimbra. I mentioned filling in the voids and shrinking the voids and creating more seating. You can see it down there, where those wood slats are. That was the void that was filled in. It was done in 2 sections, and this is what they did to create the additional seating. With that, I hand over to Kobus to take you through the financial results.
Good morning. Lighthouse shares on issue increased during the year as a result of partial scrip distributions, as well as the equity raise during September. Distributions of EUR 0.025671 per share equate 100% or 100% payout ratio of the distributable earnings. The net asset value per share increased to EUR 0.427 per share, and the loan-to-value ratio at 31 December was 25%.
After the acquisition of Alcala Magna, the indicative loan-to-value is circa 31%. Should Lighthouse proceed with the transaction that's currently under exclusivity, the loan-to-value ratio is expected to increase to 38%, which would be a peak and at the upper end of the board's targeted range. This slide sets out Lighthouse's borrowings at 31 December, as well as corresponding covenant LTV levels.
The weighted average loan term is 4.8 years, and it has increased mainly due to refinancings during the year. The weighted average effective interest rate is 5.2%, and that is following a refinancing of Lighthouse's last cheap debt during December 2024.
The graph on this slide indicates Lighthouse's debt maturity profile and also indicates the maturity of the transaction debt acquired with Alcala Magna. It's worth noting that the hedge profiles match the related debt profiles.
The transaction debt acquired has also been hedged. Lighthouse's properties have been valued by independent valuation experts at 31 December 2024. The valuation gains in Iberia were partially offset by valuation losses in France. Indicated in the table would be the capitalization rates on a weighted average basis for each of the regions.
The France figure is on a like-for-like basis, but the 2024 numbers for Spain and Portugal include the acquisitions, and therefore are not on a like-for-like basis with 2023. With that, I'll hand over to Razvan Sin. Thank you.
Thank you, Cobus. Good morning. In the next slides, I will present our direct portfolio with the focus on the performance KPIs, the leasing activity, and our main projects. Lighthouse Properties direct portfolio comprised 10 shopping centers at the end of December 2024. With the addition of Alcala Magna, the total GLA will be approximately 470,000 sq m of GLA and a fair value of more than EUR 1.2 billion.
Occupancy is 98%. This is higher than previously reported. It was 96.7%. This is because of the addition of the 4 shopping centers in Spain that have an occupancy close to 100%. The lower vacancy in France. Vacancy in France is 5.8% compared to 7.9%.
We expect this number to reduce further in 2025. Vacancy in Spain and Portugal, close to zero, with the exception of H2O, where it's 2.5%. We are making good progress in the negotiations to lease the remaining space.
Our largest tenants by income. The accumulated rental income of the 10 largest tenants is 29.7% of the total rental income. We don't have a major exposure to a single tenant or to a large group of tenants. Out of the 11 malls across the three countries, Inditex, who's our largest tenant, is present in all of them, with one exception in France.
maybe to add to what Justin was mentioning before, it is important to have Zara on the right concept because they are closing stores and they are consolidating in the strong shopping centers. Out of the seven Zara stores in Iberia, three have the right size and the new concepts.
Two, this is Coimbra and Alcala Magna, have already signed lease agreements for the extension and refurbishment. The two remaining ones are very advanced in negotiations. This is coming from the tenant. It's the demand of the tenant who is asking to consolidate in our shopping centers. The goal is that by the end of 2026, all the Zara stores will be on the right concept and the right size.
Primark is present in all the shopping centers in Iberia and in 2 out of the 4 malls in France. It is important to have the major fashion anchors, Zara and Primark, also the other ones. This is because they are very selective with their locations.
They only open in the dominant shopping centers, the rest of the tenants are following them. The tenants are rating these shopping centers very highly if the anchor tenants are present. H&M is the third largest tenant. They are going through a challenging and difficult period. They are closing stores in Iberia, not in France and in the other countries, but they do close 24 stores in Iberia, 2 in Portugal and 22 in Spain.
They are not closing any of the stores in our portfolio. In two of our cities, this is Girona and Almería, they are closing the competing stores, and they are consolidating in our malls. H&M has very good locations, low rentals. In case we have to reduce part of their surface, this would actually be an opportunity, we have a lot of demand for that space.
Mango and Cortefiel, the two tenants in Iberia that are expanding very aggressively. They reported very good results. Maybe just to focus on the cinemas. We have cinemas in all but one shopping center. Pathé is our larger, largest cinema tenant. We have two large locations with them in France.
It was a difficult year for the cinemas. Nevertheless, in our portfolio, ticket sales are only 6% down compared to 2023. We expect this year to be flat, considering that there is more content coming from the movie distributors.
We don't have any discussions about reducing the size or closing or discounts or anything like that. Performance metrics. Vacancy at 2%. Collection rate, 99%. It's materially improved. It was 97.3 previously. Collection is close to 100% in Iberia. In France, it's 96.6. We made a lot of progress in France. We managed to clean the portfolio.
We replaced the non-performing, non-paying tenants with major brands, and the portfolio in France is much, much healthier now going forward. Average OCR, 10.6%, came down from 11.9% at end of 2023. As you know, the occupancy cost is a function of sales. Our sales, the sales in our portfolio are growing.
This is translated in a lower occupancy cost. So OCR in Spain is 10%, Portugal 10.7%, and France slightly higher at 11.9%. This 10.6% average gives us a lot of room to increase the rents when the leases expire and allows us to increase the rental income. Average rental reversion is 6.3%.
This is substantial. I expect the reversion in 2025 to be higher than that. The average rental reversion, it excludes indexation. Indexation is applied on indexation day for each lease. It includes only the renewals and the like for like replacements. It excludes any resizings or relocations.
For example, if we have a large tenant, a large unit that is split into several small ones, and this involves CapEx, such as landlord works or fit-out contribution, we don't include that rental uplift in the average rental reversion.
Weighted average unexpired lease term, 6.9 years. More than 50% of our leases expire in 5 years or later. Next part of the presentation is focused on the leasing activity. We'll have more less tables and more pictures and logos.
In this slide, you see a picture of Salera with the basement level and the ground floor dedicated to fashion, and the first floor dedicated to leisure with the cinema and an entertainment center and the food court. Some of the deals that we signed in 2024 and some of the new openings.
I will not mention all of them. Some of them were already mentioned. Primark opened in H2O and in Alegro Montijo. Both Primark and Zara, they signed the leases for extending in Forum Coimbra. I think it's important to mention that we're focused on the tenants with the highest performance. For example, JD Sports. Normal is also one of them. We signed 4 lease agreements.
3 of these stores already opened in 2024, and 1, the one in Docks 76, will open by the end of March this year. Brands such as Rituals, Starbucks are very selective. Rituals opened in Forum Coimbra, in Docks Vauban. Starbucks in Torrecárdenas, Salera and Saint-Sever. I would mention only one contract here which is very important is the lease agreement signed with Darty Electronics in Docks 76.
This is the market leader in electronics and home appliances. They will open by the end of the year. They are replacing Esprit, who closed all the stores in France. We are replacing a non-performing tenant with a very strong tenant. They are part of the group Fnac Darty.
It's one of the biggest retailers in Europe. Also, it's an activity that Docks 76 didn't have. This would be electronics. We expect Docks 76 to be stronger with Darty and also with the opening of Normal this year. We are very focused on improving the tenant mix. I think the tenant mix is one of the most important elements in a shopping center, in a successful shopping center.
It's important to have the latest concepts. Justin already mentioned that, and sometimes it's difficult to fully quantify the impact of the opening of a Primark or a Zara on the footfalls and on the sales. Last year we had many openings, three new Primark stores that opened, some at the beginning of the year, some in the second half.
In this slide, I try to present the impact of these openings on the footfalls and on the sales. Alegro Montijo, Primark opened in October. The impact on the footfalls was plus 18.6% in Q4. Sales improved in Q4 with 12.3%. Very similar in H2O. Primark opened in September 2024. Very positive footfalls in Q4, growing 14.5% and sales with 16%. In Alcalá Magna, we had the opening of Primark in April. Impressive sales growth in Q4, 11.1%, and footfalls almost 18%.
Obviously, these figures are much higher than the averages for 2024, and I think they demonstrate how these concepts are attracting customers and then how they attract higher sales. In the 2 pictures, you see the new concept from Zara in Alegro Montijo on the left and the new Primark store in Alcalá Magna.
The new openings in 2024, some of them were already mentioned. I will not mention all of them. In H2O, we had the opening of Primark, Druni, Bershka, Deichmann, ALE-HOP. You can also see in these pictures the new floor that's much improved the feeling of the mall. In France, we lowered the vacancy by bringing in new tenants, but we also replaced many of the tenants in Docks 76.
The total number of openings, they accumulate more than 3,000 sq m. A new large Action store, a new JD flagship, Normal, Rituals, and Jack & Jones . Saint-Sever, several openings, the same, more than 3,500 sq m. All of them opened in 2024. Bershka, Starbucks, Normal, Foot Locker, opening a new concept and Chaussea. Moving to projects.
The largest part of our CapEx is concentrated in three large projects. This is the refurbishment of H2O, with a project cost of EUR 10 million. This cost was already included in the acquisition. The yield is 7.5%, which is the acquisition yield, including the cost of the refurbishment. We already started with the replacement of the floor.
We will continue with the improvements in the look and feel and quite a major project involving the lake and the exterior area. We will create a new park, which I think it will be a big attraction for the catchment area. Forum Coimbra project cost EUR 12 million. We are extending Primark and Zara. Both lease agreements are signed.
All the permits have been received, so the project is fully approved now. We are currently tendering, and the completion is expected in the second part of 2026. Extension of Rivetoile, a cost of EUR 5.8 million. The works are ongoing, and we expect the project to be finalized by the end of the year.
We are creating 12 new additional units, and we are improving the traffic flow on the ground floor. Part of these new units are already secured, and part are in advanced negotiations. With this, I finish my part, and back to you, Justin.
Thank you, Razvan. I think before we open up to questions, I'll take you through the outlook. We have guided 5% growth in our distributable earnings per share. This gets you to around about that EUR 0.027 per share of earnings for distribution. I think it's worth noting this growth has been impacted by the refinancing of Forum Coimbra.
It's quite a common theme, refinancing this legacy, very cheap debt, with a lot higher cost of debt. I mean, in the case of Forum Coimbra, it went from around 2.4% to over 5% interest cost, impacting our earnings by about EUR 2 million and dropping our guidance, our growth at least from about what would have been 9% to 5%.
The good news is that this is the last of our legacy cheap debt. Everything is now more or less at market levels. The impact of this will be minimal or immaterial going forward. It could potentially be upside. We do not have any more maturities until 2027. We quite, it's quite certain at least for the 25 and 26 what our interest costs are going to be.
We financed, well, we finalized our last recent acquisition, sorry, Alcalá Magna, which I've spoken about earlier. We anticipate to close on another acquisition before the second half of the year. We do have sufficient liquidity to acquire this asset, and that will come from raising a loan, secured by Espacio, which we acquired fully cash.
We do have sufficient liquidity to acquire this asset. All these acquisitions we do, without having these refinancing impacts, we expect a very strong growth into 2026 as well. Lastly, Iberia will remain a key target focus of ours.
Like I said earlier, we're looking to get that portfolio to about 87% by year-end. With that, I'll open up to questions. Cobus will read them out loud or whatever you've written during the course of the presentation. Either myself or Razvan or Cobus will respond to the questions.
Please discuss the like-for-like net property income growth in Spain of 1.3%, especially since it looks lower than indexation.
Thank you. Thank you, Anton, for that question. I'm glad you asked it because I think to understand the like-for-like, you're literally looking at Torrecárdenas in 2023 versus Torrecárdenas in 2024. It's one center. There are always these slight variations and distortions within those numbers. In this specific situation, 2023 was overstated.
There was a catch-up on some of the service charges which actually artificially inflated 2023's NPI, which has put a bit of a lid on the growth of that asset. Still performing extremely well. I think into the next year, that impact won't be there, so the growth will be more regular. If you look at Coimbra, this is the other way around. It's over 6%.
In that situation, we've got what we call key money. Key money is when you literally get a bidding war on space and the demand is so high that they will give you an incentive, a financial incentive to pick one tenant over the other. In that sense, we've got over EUR 300,000 of key money that pushed the earnings on that one center.
It looks like Portugal is growing at over 6%. It's only one center, but that's one-off key money has pushed it. Next year we'll have the same issue maybe. If we don't get more key money, that base will be lower and Coimbra's growth will be also a little bit on the low side.
What are the terms of the debt being acquired with the latest Spanish acquisition?
Yeah. Like I mentioned earlier, we subrogated an existing loan. The margin there was 195. That stayed. The base rate is approximately, I would work on about 2.3%. That will get you to all-in rates of about 4.2%. The reason for the subrogation was to avoid having to pay the raising fee. We don't pay a raising fee, so that will be our all-in cost of debt. There's about 3 years left on that loan.
What is the indicative indexation for 2025? Please confirm the indexation achieved in 2024.
Yeah. I'll hand over to Razvan to answer.
Thank you. I will answer that question. For 2025, indexation in Spain, 2.8%. In Portugal, we expect somewhere between 2% and 2.5%. In France, 2.5%. In 2024, France, the last applied indexation was 3.03%. Spain, 3.10%, and Portugal 1.9%.
Please discuss what a normalized effective tax rate would be for the company going forward when it happens?
Let Cobus come on to the tax question.
All right. A normalized rate over the medium term would be approximately 8% of profit before tax, but it will probably take us a year or two to get to get there fully. We're not quite there yet. Does the sales growth performance in the centers where Primark opened include the Primark sales?
No. The answer is, the answer is no because Primark doesn't communicate the sales. It's one of the few tenants that don't communicate sales, so we don't include it.
How are the CapEx projects going to be funded?
CapEx projects will be funded. We do. As we sit here, we've got around about EUR 35 million of listed investments in the EPRA. That will be funded by a rotation out of that into the CapEx projects. Of course, you will also see there is a scrip option up to 50%, and that will also go towards funding the CapEx that we have planned.
Could you give us an idea of your strategic intentions around the French assets?
With France, it's, as you saw, pronounced growth of NPI just over 14%. There's been a lot of work done to that French portfolio. It's looking a lot better than when we acquired it. The tenant profiles, far better than when we acquired it. The growth is starting to come through.
For now, the strategy would be to hold the assets and at least wait for the initiatives to deliver what they've intended to do. For now, I think French, the French assets will remain a hold. Okay. I think that there are no further questions.
With that, thank you all again for attending and wish you a pleasant day. If there are any questions further, feel free to reach out to either myself, Cobus or Razvan, and we can address you then. Thank you very much. Goodbye.