Good afternoon and welcome to the Stoneweg European REIT's first quarter 2025 update call. We'll begin with a presentation by the Stoneweg European REIT management team, followed by Q&A. During Q&A, please click the Raise Hand button to be placed in the virtual queue. Alternatively, you can submit text questions via the Q&A feature. Now, I will hand across to the CEO of the Manager of the Stoneweg European REIT, Simon Garing. Simon, over to you.
Thanks, Chiara. Good afternoon, and thank you to everyone for joining us today for the business update. The photo montage of our assets on page three highlights a selection of the portfolio, typically Grade A office buildings, as well as large, well-located logistic and light industrial properties. These range from core to value-added profile, demonstrating our resilient barbell approach to portfolio construction with over 100 assets. We continue to execute on our stated investment strategy of pivoting towards the logistics, light industrial, and data center sectors, now making up 56% of the portfolio, up from just 32% four years ago. We are focused on core Western European markets and the Nordics, which now together represent 86% and a growing part of our current portfolio. As a reminder, almost 95% of SERT's portfolio is held under freehold title, with nearly all leases featuring inflation-linked rent escalations, supporting steady annual income.
We are pleased to report a successful first quarter, strengthening SERT's operational and capital position despite the challenging global backdrop. We recently concluded three major office lease renewals of almost 60,000 sq m at overall higher rents, with only around 10% space returned, which is almost all leased already. Eight of our top 10 tenants are now secured beyond 2030, delivering the longest WALE in our history. Over the past few months, the retasury and finance team has also been busy handling over EUR 900 million in debt transactions. A key highlight was the EUR 500 million green bond issued in January this year. Integration with our new sponsor, Stoneweg Icona, is largely complete. The Stoneweg Icona Group has been well received, with meetings of over 150 investors and press on a recent roadshow to Singapore and Hong Kong.
This support has been thanks to their strong European track record and deep capital access. The included press releases attached here on this slide provide some good insights for you if you did not get a chance to meet with Jaume or Max. We are actively taking strategic steps within SERT's portfolio to unlock value, generate alpha, and catalyze positive unit price performance to continue to close the gap to NAV. The new 20-year NN lease, an agreement to redevelop Haagse Poort announced yesterday, is another example of that. We are also rigorously assessing the sponsor's logistics and data centers pipeline for meaningful and value-accretive opportunities. The proposed stapling of a new business trust to the REIT at today's EGM will enhance tax efficiency and provide future strategic flexibility.
Finally, the unit buyback program has been well received, with over 1.5 million units already repurchased over the last month, demonstrating the board's confidence in SERT's investment proposition during the current market volatility. Page five presents the high-level scorecard for the quarter. I'm pleased to highlight the indicative DPU this quarter is slightly higher compared to the last quarter. It is also only 3.7% lower than PCP, as we have now largely absorbed the refinancing of all our old legacy debt when rates were negative all those years ago. Confirming our office value-add strategy, the accretive returns from our Nervesa 21 Milan project are now driving higher NPI growth. We have just reported a strong 7.4% like-for-like NPI growth across the whole portfolio as a result. Our leasing pipeline is very encouraging in both key parts of the portfolio as we look to bring the occupancy back up.
I'll now hand over to Shane to run through the update in more detail. Thank you, Shane.
Thanks, Simon. I'm pleased to report this quarter that net property income was 2.4% higher than the prior period, mainly due to higher income from certain assets such as Nervesa 21 that Simon mentioned following the completion of its development. There was also a benefit from a write-back in bad debt provisions where two tenants in France ended up paying rent after it was earlier considered doubtful. This compared to a provision for doubtful debts that was made in the first quarter last year. As Simon just mentioned, NPI on a like-for-like basis was 7.4% higher than the prior period, with the logistics light industrial sector outperforming by 9.6%, office up by 4.2%, and SERT's other sector was actually 19% higher due to a higher turnover rent received in the Starh otels Grand Milan.
Net interest cost was up 18% due to a higher all-in interest rate following the green bond issuance in January. This was partially offset by lower interest expense on the floating rate borrowings due to lower short-term interest rates at the three-month Euribor and the Euro STR. Overall, the average all-in interest rate for the first quarter was 3.66% compared to 3.13% in the first quarter last year. As Simon mentioned, the indicative DPU was 3.7% below the first quarter last year, and that's mainly due to those higher interest costs, partially offset by the higher NPI. Moving now on to the balance sheet, which remains in a very sound position following the bond issuance in January. Current liabilities dropped significantly following the bond issuance.
The balance sheet now reflects stabilization with total assets of EUR 2.3 billion following the largely completed asset sales program over the past two years. A unit buyback program commenced in March, and by the end of the month, nearly 340,000 units had been acquired. In April, further buybacks occurred, bringing the total number of units bought back to 1.5 million. The net asset value was EUR 1.98 per unit, which was slightly lower due to the six-month distribution paid at the end of March. NAV on an EPRA basis, which excludes deferred tax provisions, was EUR 2.12 per unit. SERT's debt profile is stronger than ever. SERT's weighted average debt expiry is now over four years, and the nearest maturity is only in late 2026. The new six-year green bond was nearly five times oversubscribed, attracting over 100 institutional investors.
This overwhelming response, just weeks under the new Stoneweg brand, reinforces investor confidence and affirms the sponsor's positive impact on SERT. Recently, we have reset some hedges, resulting in the level of fixed cover extending to 73% in 2027, while still allowing us to take advantage of reducing interest rates. I will explain more about this on the next slide. Additionally, with over EUR 240 million in undrawn RCF and cash available, we are well- positioned to pursue the next phase of organic and inorganic growth, leveraging opportunities at the bottom of the European commercial real estate cycle. As I just mentioned, we have reset our interest rate hedges with new collar transactions featuring a cap and a floor. This allows us to only pay a maximum interest rate at the cap level while benefiting from interest rates falling towards the floor.
As you can see in the chart, SERT's cap rates on EUR 310 million of notional debt are lower than today's three-month Euribor, capped at an average of 1.6%. One hedge is capped at 1.75% on EUR 150 million of notional debt, and on another, EUR 160 million notional debt is capped at only 1.45%. SERT's interest expense will benefit if ECB cuts rates further towards 1%, where the lowest floor is set. Alternatively, inflation comes back into the system and ECB rates rise, then SERT is 89% protected. Credit metrics have remained comfortably within the bond and loan facility covenants and within credit rating agencies' metrics for investment-grade rating. Although net gearing is a little higher at 41.7%, we will continue to focus on bringing it back down within the long-term policy range of 35%-40%.
We have some small non-strategic asset sales in progress, while valuations may improve on the back of our value-adding asset management initiatives and falling interest rates. Interest coverage ratio on a trailing 12-month basis is 3.3 times, calculated using the definition from our EMTN program. Using the MAS definition, which includes coupons on perpetuals and amortized debt establishment costs, the ICR is lower at 2.9 times, but still considerably higher than the MAS limit of 1.5 times. With the hedging and bond transactions completed, SERT's all-in interest rate at 31st of March is 4.16%. Now moving on to asset management. The quality of SERT's portfolio and the strength of Stoneweg on-the-ground team delivered almost 37,000 sq m of leasing in the first quarter this year, which provides SERT with a long WALE that enhances cash flow visibility. The logistics WALE is now 5.2 years and the office at 5.1 years.
As expected, total portfolio occupancy temporarily dipped to 92% in the first quarter of 2025 from 93.5% at the end of last year due to a few key factors. The primary reason was SERT's largest tenant, NN Group, vacating 6,000 sq m in Haagse Poort as part of their office space optimization. Importantly, this move is linked to a much larger commitment that we are excited to announce: a cooperation agreement with NN Group for a 20-year lease renewal over 28,500 sq m, which I will talk about more later. Polish office occupancy fell slightly to 78% due to UBS vacating 5,000 sq m in the Green Office in Kraków, plus a few smaller non-renewals. Turning now to the logistics and light industrial sector, where portfolio occupancy remains steady at 94%. Occupancy in the Danish portfolio improved.
This was driven by an 8.1% occupancy gain in Sognevej and new leases across other Danish assets. Occupancy in the French portfolio declined slightly following 8,000 sq m of terminations that Parc des Docks. Space at this asset is highly sought after, and we are confident of reletting these areas at higher rents. Occupancy across the other countries remained unchanged, with the Dutch portfolio near full occupancy at 99.6%, and both the U.K. and Italian portfolios fully occupied. We maintain good visibility on our leasing pipeline and remain confident in further improving occupancy over the remainder of the year. We achieved positive rent reversion of 4.9% across the logistics and light industrial portfolio, reflecting sustained low vacancies despite the softer economic growth. As shown in the top chart, rent growth remains within normal bands over the past five years.
The portfolio continues to be under-rented, with the valuer estimating passing rents to be 7.2% below market levels. The logistics and light industrial sub-portfolios have continued to track closely over the past four years in terms of rent reversion and occupancy, with performance influenced by the timing of developments and acquisitions of value-add assets. Encouragingly, we are starting to see manufacturers take on proportionately more space than logistics companies. In the first quarter of 2025, we signed 24,000 sq m of new or renewed leases in this sector. Overall, we're on target to lift occupancy in this sector to 95% during this year. The key leases signed in the quarter in the logistics and light industrial sector were a 3.5-year lease renewal over 5,000 sq m in Fabriksparken in Denmark at a 1.4% positive rent reversion.
There were multiple leases signed and renewals in Veemarkt in Amsterdam, in the Netherlands. We also signed a 10-year new lease over 3,400 sq m with an 8.4% rent reversion in Parc du Landy in France. Turning now to the office sector, overall portfolio occupancy declined to 85.7%, mainly due to the Nationale-Nederlanden in space optimization to 92%. We are in the final stages of securing a new 10-year lease at higher rents for all of this space. Occupancy declined marginally in Italy, France, and Poland due to lease expiries such as UBS mentioned earlier. A positive highlight is Motorola's seven-year lease renewal at their data center and AI facility in Green Office in Kraków, which will be included in the second quarter statistics. Pleasingly, in Finland, occupancy rose for the first time since 2023, up to 71%.
Despite vacancies, the yields remain strong at over 8%, so we are not pressured to sell. Office leasing activity in Q1 totaled 13,000 sq m, with a slightly negative reversion of -0.6%. The biggest lease renewal signed was with tenant Coolblue in Central Plaza, Rotterdam, at a positive 1.4% rent reversion for five and a half years, though the weaker Finnish office lease renewals were signed at negative rent reversions in order to mitigate the higher vacancy risk. The office portfolio also remains 7% under-rented, and we continue to lease vacant space on longer terms and at higher rents to strengthen the portfolio. SERT's office portfolio is larger future-proofed, benefiting from structural trends like the tenant flight to quality and energy efficiency.
We discussed earlier Haagse Poort in The Hague, where we reached a major milestone by signing a cooperation agreement with NN Group for a 20-year lease renewal over 28,500 sq m at significantly higher rents. The agreement also includes an EUR 60 million upgrade plan for the premises, subject to final approvals. The rendering on this page shows the new atrium and foyer with warm collaborative spaces, a key design element for NN Group. European office markets remain significantly undersupplied in Grade A ESG-certified assets with high EPC ratings or BREEAM certification. CBRE estimates that only 20% of the European office stock meets tenant demand, compared to 84% of SERT's office assets being rated BREEAM or LEED, very good, gold, or better. Nervesa 21 in Milan was recently awarded 91 LEED points by the Italy Green Building Council, making it the second- highest-rated green building in Italy.
We are pleased to report a 6.6% yield on cost for Nervesa 21, including the value of the old building, delivering a modest uplift to NAV. Looking ahead, we have over EUR 200 million of short to medium-term development and AEI opportunities across the portfolio. Three key projects to highlight are in Slovakia at Nove Mesto ONE. We are adding 5,300 sq m for an existing light industrial tenant, with delivery expected by June this year. At Spennymoor in the U.K., a new 15-year lease over almost 47,000 sq m of space with Thorn Lighting includes the development of a 5,000 sq m adjacent warehouse and installation of rooftop solar panels with a two megawatt capacity. In Amsterdam, we're making good progress at De Ruyterkade, securing an agreement with the municipality to move into the public consultation phase ahead of building approvals.
This project could potentially commence in the second half of this year of 2026. Apologies. I will now hand back to Simon for economic and market commentary and outlook.
Thanks, Shane. Looking at the macro picture, while Europe remains vulnerable to short-term U.S. tariff and trade tensions, the longer-term impact may have some positive repercussions within Europe. U.S. policies are encouraging Europe to pursue its own structural reforms, boosting long-term economic resilience and growth in onshoring, both particularly positive for industrial and logistic assets. Oxford Economics recently downgraded Eurozone growth forecasts to 0.8% for this year and 1% for next year, following these new tariffs that were announced. However, from 2027 onwards, they have significantly upgraded their growth forecasts, especially in Germany, where a EUR 1 trillion infrastructure and defense investment package is expected to take effect. Longer term, this is positive for asset pricing.
European stock markets and the strength of the euro recently underpinned our confidence. We hear a lot about European companies onshoring the supply chains post-COVID. U.S. tariff announcements are just accelerating this trend, and the data is starting to reflect this. As shown on page 25, new Green Street research highlights that manufacturing and light industrial sectors now account for 25% of all warehouse and industrial space take-up, up from around 15% in 2020. As an example, as European aerospace and defense manufacturers ramp up production, Green Street data shows this sector has already increased its leasing volumes, a clear sign of how heightened geopolitical uncertainty is now feeding through into this demand. SERT is well positioned to benefit, with around half of the portfolio suited to light industrial use.
Turning to logistic fundamentals on page 26, we can see that CBRE expects that occupational outlook will improve from here on, subject to levels of consumption activity and impact from tariffs. Rental growth is expected to moderate slightly, but still outpace inflation as vacancies reduce after the recent supply response to the 2021 and 2022 abnormally high uptake that space is being absorbed now. Looking at the office sector on page 27, we know job creation is closely correlated with occupied demand and GDP growth. CBRE also forecasts job growth across key European cities will average around 1% per annum over the next five years, as shown on the left-hand chart. The right-hand chart here shows this is expected to drive a 3% decline in vacancies across Europe, given limited new supply.
The small dashes on this chart represent the current vacancy rates in each city, while the columns show the expected overall reduction in the vacancies over that timeline. Amsterdam is one of the markets forecast to see the largest vacancy decline over this period, which supports the outlook for our major project, which is in the heart of Amsterdam. Turning to page 28, CBRE expects prime office rents to keep up and outpace inflation in many of the Western European key city markets, our focus. In aggregate, Central European office markets are expected to trend on par with inflation, with higher vacancies and potential for supply. Turning to page 30, I will leave you with some key strategic takeaways. SERT is trading on a yield of approximately 9%, underpinned by strengthening euro currency and a 25% discount to NAV.
We continue to view SERT's investment proposition as compelling, reflected in the board's decision to commence a unit buyback during the current heightened market volatility. Our confidence is reinforced by the good support that we receive from our investors. They recognize the upside potential within the portfolio, underpinned by declining EUR interest rates and an excellent track record in active asset management, development and AI enhancements, and disciplined capital management. The manager is now largely integrated with our new sponsor, Stoneweg Icona Group platform, and benefiting from their successful European experience and access to deep capital pools. We are actively taking strategic steps within the portfolio to unlock value, generate alpha, and catalyze positive unit price performance to close the gap to NAV. The new 20-year NN lease and agreement to redevelop Haagse Poort announced yesterday is another example of this.
We are also rigorously assessing the sponsor's logistics and data centers pipeline for meaningful and value-accretive opportunities. We are preparing to adopt the proposed staple REIT business trust structure for greater flexibility and tax efficiency, while maintaining our existing policies on gearing and distribution payout ratios. Maintaining our investment-grade credit ratings is very important in this context for us. We continue to closely monitor global trade dynamics and assess the potential impact on real estate fundamentals. Our focus remains on delivering sustainable, risk-adjusted returns across market cycles. Thank you for your attention today and ongoing support and investment. I'll now hand back to Chiara, the moderator, and open up for questions. Thank you.
Thank you, Simon. We will now begin the Q&A session. As a reminder, to ask a question, please select the raise hand button to be placed in the virtual queue. For those dialed in, please select star nine to raise your hand and star six to mute or unmute. Alternatively, you can submit text questions via the Q&A feature. Both of these options can be found at the bottom of your Zoom interface. Our first question comes from Brian, who asks, "Leveraging ratio has been increasing, and fair value of investment properties has been declining over the years. One, will this affect AEI plans for the portfolio? Two, what's the outlook for Finland and Poland? Are you carrying amount of Finland and Poland portfolio expected to recover?"
Thank you, Brian, for the questions. Firstly, we are not alone. We are not immune to the interest rate cycle. From 2022, when we saw a substantial reversal from the negative interest rates to ECB and others lifting rates 400 basis points over that very short period of time, that was clearly going to have an impact on valuations and therefore on leverage. We were very proactive at the beginning of that down cycle to commence selling. We have sold now about EUR 280 million worth of assets at around a 12% premium to the values at the time to help mitigate that down cycle. While our leverage has increased slightly, it is still within the board policy range of 35%-40% with a ceiling at 45%. As we mentioned last year, with the ECB starting to cut rates, and again, only last month, they further cut rates. We are now down to around 2.25% at the ECB level.
We're starting to see valuations increase, which will have the reverse effect on LTVs. That's the LTV side of the debt covenant equation. The second, which the rating agents and the bond investors also look at, is interest cover. Even with the mark-to-market or the transition to more normal interest rates that we've taken that medicine over the last six months, our ICR cover is still a very healthy 3.3 times. We're generating a lot of cash off our assets, well in excess of the interest costs that we now have transitioned to. That leads to, I guess, the next question around some of our weaker performing assets, where perhaps we've not been able to offset with alpha generation, particularly in Finland. Yes, the Finnish portfolio has taken a proportionately larger hit.
As Shane mentioned in his pre-prepared remarks, even down at the 74%-75% occupancy level, at the current valuation, that portfolio is still yielding 8%, even with 25% vacancy. We are thinking that we are now pretty close to very trough valuations for those weaker assets. They are now generating quite high levels of cash flow as a result of that.
Thank you, Simon. Our next question comes from Christie, who asks, "What should we expect for your finance costs ongoing?" Sorry, going forward, can you please share the proportion of one, your tenants that are exporters vulnerable to the ongoing geopolitical trade tensions, and two, tenants that will benefit from the onshore and defense or infrastructure investments trend in Europe, please?
Okay, I will take the first one. Thanks for the question, Christie. Yeah, the outlook for interest rates, I mean, the main exposure to us is the short end. We recently did the six-year bond that gives us a fixed interest rate all the way through to 2031. We have another debt facility that has a fixed rate for five years. We have the hedges in place for about EUR 310 million that I spoke about earlier. This really sort of underpins the average rate. I think Simon mentioned before about the fact that the bond issuance has sort of reset the overall debt structure and interest costs, so that at 4.16%, it's probably fair to say there's more downside possibility than upside possibility from here because the three-month Euribor is 2.2% at the moment. We benefit with the hedges that we have over EUR 300 million of debt down to 1.75%.
At 1.75%, we are capped at that level on one hedge for EUR 150 million and at 1.45% on another hedge. We will benefit once or if the three-month Euribor goes below those cap levels. We have just the remaining part, currently 11%, which is floating, which will also benefit from the reduction in the three-month Euribor. Yeah, it's more likely the 4.16% comes down a little bit and goes up from here. It's really been rebased.
The conclusion there is in the last two years, we've gone from our legacy debt when interest rates were negative. We had an average cost of debt of around 1.7% to now at 4%. That transition that some REITs have undertaken, we're part of that camp. We've reset all of our debt effectively at today's more normal rate environment.
The risk profile of the REIT has dramatically reduced with this new debt reset and with the longer duration of debt. In terms of the answer to your second question, our top 10 tenants, which account for 23% of the income, none of them are exporters. We have about a 4.5% exposure to the automotive industry, to tenants such as Stellantis or suppliers in the supply chain of car manufacturing in Germany, Slovakia, and Czech. Just under 5% would be exposed to the automotive industry. One of the benefits of this portfolio is it is made up of 1,000 leases, 105 assets. It is very resilient. The largest building is only 7% of value. We have just secured that with this new Nationale-Nederlanden lease, along with all of the other leases in that building that were completed last year.
We are in very good shape, as Shane showed, the write-back of doubtful debts as tenants continue to be very up to speed with their rental payments. We are in good shape within the existing portfolio. I guess that's why the board has sent the signal through the unit buyback program that we are very confident both on the income side and on the debt side. 95% of our tenants are either government tenants, semi-government tenants, or MNCs with very good credit ratings.
Thank you. Our next question comes from [Wei San], who asks, "The tenant retention rate for Q1 2025 for logistics assets is 32.8%. This seems low. Can you shed more light on this?" The estimated DPU, apologies, Simon, the estimated DPU for Q1 2025 is about EUR 3.374. With all the AEI, when does management expect the DPU to grow again?
Okay. Some really good questions in there. Over the last few years, our tenant retention in logistics has actually been around that 30%-40% level. Why is that? Because there has been such strong rental growth in the markets that some tenants who have been there for 10 years, when their lease expires, their business model may not be up to being able to afford the higher market rents. The confidence we have in our properties is we ask the sitting tenant, first and foremost, to pay the new market rent. Often they say, "That is too high for us." We move new tenants in Parc des Docks , which is our largest logistics asset, obviously in Paris, is a great example. When we bought that building, the market rent at the time was EUR 90 a sq m. Tenants at that point, with their nine-year leases, have been growing at inflation.
Maybe today they've got to $120-$125 a sq m. The market rent now is EUR 160-EUR 180 a sq m. We've been prepared to give up one or two months of rent while we switch that older tenant into a newer tenant that's prepared and able to pay much higher rent levels. With regards to the question on DPU, I think the inference in the question is the decline in our DPU over the last three years has been driven by the AEI program. I just want to say that that's not the material reason for the DPU decline over the last few years. The main reasons to the earlier questions was around the asset sales to ensure that our LTV and our credit rating remained within market expectations with the rise in interest rates.
Obviously, the rise in interest rates has also impacted our interest expense as we've transitioned from 1.7% debt two years ago to now 4% this year. We've taken that transition in the last couple of years. When you look at the six brokers that now cover us, the average DPU forecast is roughly around EUR 0.13. That is taking into account that transition in debt and the fact that largely the asset sale program is behind us as we're now a lot more confident about the stabilization in the overall real estate valuation cycle. In terms of being able to provide any sort of growth forecasts, again, I can only refer you to the brokers that cover us. One of the great aspects of the current AEI that we just announced yesterday with Nationale-Nederlanden is we will do the development while they're still in the building.
Secondly, they have agreed to pay the new higher rent from yesterday. We do not have to wait over the two-year program for the building to be completed before we benefit from the higher rent. I am talking quite materially higher rent. That is going to kick in now already. De Ruyterkade Amsterdam program is slightly different. It is 8,000 sq m, and we are looking to build 21,000 sq m. There will be a period in 2027 and 2028 where we will lose a little bit of income on that small building today. We will get 4x-5x on completion once it is leased in three or so years' time, subject to, obviously, the final planning permitting process. The current result also has no income coming out of our Rome project.
It's been stripped down and we were in negotiations with a number of parties to commence that work. That is in our books for EUR 25 million of land value. It is currently costing about EUR 500,000 in operating expenses while we are searching and negotiating for new occupancy. When that project completes in a couple of years' time, clearly there will be the income generated at that point. The AEI is designed to do a number of things. One, yes, we know in some instances there is a bit of a small gap in income. As we have shown with Nervesa, when that project is completed, we then get the benefit coming through. We also get the benefit on an NAV basis. The old building declines in value.
With the refurbishment and the releasing program, we get the big kick-up in value as we book the development profit from a realized or unrealized gain perspective. That obviously helps reduce the LTV. If we can raise the value of each asset through AEI, that will reduce gearing. That is one of our key planks of managing our debt. In part, it is through disciplined recycling of assets. It is also in part adding value to the existing office stock and logistic space to drive that asset value up more than the cost of the debt. Typically, we are making 20%+ development profits. That is something that we will continue to strive for. The proposal to put a business trust into the REIT enables us also to gain extra potential tax benefits. An example is in Amsterdam De Ruyterkade project.
The Dutch government has an incentive program that is worth around EUR 15 million for us if we develop and sell the building within six months. Now, under the current Singapore REIT rules, we can only develop to own at least for three years. If that asset then is transferred into the business trust, it is still 100% owned by you as the investor, but we can then benefit from that quite substantial tax incentive. The proposed resolutions at the EGM in a few hours here in Singapore, subject to investors approving that structure, will allow us greater flexibility and tax efficiency.
Thanks, Simon. Just as a reminder to our audience, if you would like to ask a question, you can either use the raised hand function to ask a verbal question, or you can submit questions via the Q&A box. Both features can be found at the bottom of your Zoom screen. Our next question comes from Wei San again, who asks, "Does the SERT intend to finance the EUR 60 million of CapEx with respect to the Haagse Poort?"
Yeah, good question. We are working on a facility at the moment, but obviously, it's not announced yet. So work in progress, but we have a facility to provide funding for that CapEx.
Thank you. Our next question comes from [Piyush], who asks, "What is the price range and quantum that the board has approved for share buybacks?"
You'll have to appreciate, for obvious reasons, we're not going to disclose that. Suffice to say, at these current levels, the board sees good value, but also wants to send a signal to the market that it's confident in both the income side and the interest expense or debt side. From a P&L perspective, the board is very confident and wants to send that signal to the market through the buyback process. Thanks .
I'll just remind the attendees one more final time. If you did have a question, you can either raise your hand to ask a verbal question or submit questions via the Q&A feature. I'll just briefly pause to see if we have any additional questions from our attendees. It doesn't look like we have any additional questions. Simon, I'll hand back to you for closing remarks.
Thank you, everyone, for dialing in and for your attention today. Obviously, for your ongoing investment, again, we're very focused in taking strategic steps within the current portfolio to unlock value, to generate alpha, and catalyze positive unit price performance to close that gap to NAV. That the AEI program is a large part of that. We are also rigorously assessing the sponsors, logistics, and data centers pipeline for meaningful and value-accretive opportunities. Watch this space. Thank you very much. If you have other questions, please obviously reach out to Elena and the investor relations team. Hopefully, we get to see some of you this afternoon at the AGM/ EGM. Thank you.
Thank you.