# IREIT Global — 2026 Investor Briefing Webinar Presentation & Q&A

Event: SIAS Investor Briefing with IREIT Global — FY2025 Highlights & FY2026 Outlook
Date: 6 May 2026
Issuer: IREIT Global (SGX:8U7)
Provenance: automated speech recognition (asr) of the public webinar recording
Source recording: https://www.youtube.com/watch?v=OaT7oeOBGm0
Official record: https://www.ireitglobal.com/investor-relations/
Presenters: Mr. Peter Viens — Chief Executive Officer, IREIT Global Group Pte. Ltd., Mr. Kevin Tan (Tan Heng Chew) — Chief Financial Officer, IREIT Global Group Pte. Ltd.
Words: ~7,086

Unofficial machine transcript. Prepared by SMID Research from the public Briefing webinar recording by automated speech recognition, without a full manual check: expect mis-heard names and figures. There is no speaker attribution: the source recording carries no diarisation, so cues are shown as timestamp and text only; timestamps refer to the recording. Not a company publication. IREIT Global's own investor relations page (https://www.ireitglobal.com/investor-relations/) is the authoritative record. Copyright in the briefing rests with IREIT Global / SIAS; contact contact@smidresearch.com for corrections or removal.

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[00:00:00] Welcome to this corporate update session organized by Sias involving iREIT Global. iREIT Global is the first Singapore-listed real estate investment trust with the investment strategy of principally investing directly or indirectly in a portfolio of income-producing real estate in Europe, which is or will be primarily used for office, retail industrial hospitality, hospitality related and other accommodation, as well as real estate developed assets. iREIT's portfolio comprises five freehold office properties in Germany, four freehold office properties in Spain and 44 retail properties in France with a total lettable area of about 425,000 square meters.

[00:00:56] The portfolio has an occupancy rate of about 89.4% and an independent valuation of about 798 million euro as at 31st December 2025. We are pleased to have with us the CEO, Chief Executive Officer of iREIT Global, Mr Peter Vian and the Chief Financial Officer Kevin Tan. I'm sure our participants here are keen to hear more about the key highlights of the latest financial year and what they can anticipate in the coming financial year. So without further ado, I will now pass my time over to the management team to take us through the corporate presentation, after which we will have a Q&A session in which members of the public you can submit your questions for the management.

[00:01:50] Over to you, Peter and Kevin. Thank you. Hi, everyone. Let's start with this presentation. So first we start with this slide, giving an overview of iREIT Global. Important things to say that iREIT Global is investing in Europe and on several asset classes. It is supported by two joint sponsors, two reputable joint sponsors, the first one being CDL, CTE Development Limited, which is a famous developer and asset manager in Singapore and Asia, and TKO Capital, which is a worldwide asset manager based in Europe. I think we can move on to the next slide.

[00:02:47] So as already mentioned, iREIT portfolio comprises 53 properties in Europe, five of them being an office asset in Germany, four being office assets in Spain, and 44 of them of the asset being retail assets in France. Two portfolios, retail portfolios, led to Decathlon brand and to B&M brand. The major part still today of the value of the asset is in Germany, which is the historical portfolio which was in the I.P.O. in 2014, so nearly 12 years ago. And over time, this portfolio has been diversified to Spain, first in the office asset class,

[00:03:47] and then into France with the retail asset class, so opening a new geography and a new asset class. And this is the history, but also it will be probably the future of I.R.I.E. because we are keeping the diversifying the asset, the portfolio, the assets in the portfolio in the future. Now if we move, thank you, to the first quarter, 2026 key indicators, key highlights. First, and this is one of the main messages we want to convey, is that our portfolio-committed occupancy has significantly improved over the quarter because it has nearly increased

[00:04:42] by 3%. And this will be further discussed later, but this is mainly due to new lease contracts signed in our Darmstadt property in Germany. Regarding our weighted average lease expiry and aggregate coverage, they have been quite flat over the quarter and can still recall that there was an increase in the aggregate coverage, quite significant increase in the aggregate coverage at the end of 2025 for the full year results presentation. And this was mainly correlated to the change of value in the second half of 2025, which changed from savings to JLL.

[00:05:38] And this new value has a new view, I would say, on the risk profile of two of our assets, one being Berlin and the other one being Kunkorp Park in Munich, the south of Germany. But over the quarter, no change. And last, our weighted average interest rate is increasing over the quarter due to the new swap implemented on our German loan, which has been effective since end of January 26. There we'll say a word on that later, that one of our big successes of 2025 was the refinancing of our biggest loan on the portfolio, the German loan for more than 200 million euros. It was successfully refinanced, and that's good.

[00:06:35] But that came also with new interest rate environment. And this is why our weighted average interest rate is now increasing due to our refinancing. Next slide, please. So now we move to our big repositioning project in Berlin called Project Rio. Here I recall that the project has two phases. So first one is on the hotel part. There it's already ongoing. It is already signed because end of 2024, we secured 20 year lease contract with two hospitality operators, first one being Premier Inn and second one Stare Ray.

[00:07:31] Together, they represent 24% of the net suitable area of the asset, which is by the way twice in terms of value, the former rent paid by the previous tenant, meaning that 25% of the net suitable area led to these new two hospitality operators represent 50% of the previous rent, meaning that there was an upside, a rental upside expected in this asset with this project and the hotel example is a clear example that this upside has materialized and we will get it when the two hotels will start paying their income end of 2027.

[00:08:27] So this phase is already well engaged. It is secured, let, it is funded and mainly thanks to the bond issued last year. And the works are being delivered over time with delivery, food delivery being expected in August 2027. So that phase is monitored, but it is launched. And the second phase is on the office area. There we are in very advanced discussion with the AAA and content. So it's been now more than one year, maybe one year and a half nearly that we've been discussing with them. And this tenant would take up to 50% of the total area, total area of the asset, which

[00:09:22] represent 40,000 square meters, which is quite substantial. And they would sign a 25 year lease contract without break option, meaning that it would give us a very, very good and long visibility on the income on this asset. So where do we stand at this stage? The decision on our side, sorry, the decision on their side will be taken in July, 2026. When they had their board approval, their main board approval, and based on the result of this, on our side, we would also have to decide and to approve and our board members will be part of this decision if we want to go with this tenant.

[00:10:18] What I want to highlight is we would go, we would sign this lease contract if this is offered to us, only if we consider that it is of good deal for irate. This good deal is assessed on the holistic view, obviously. And this includes a real estate and the rate matrix, obviously, but also the liquidity of the asset, market figures, trends, et cetera. But we could discuss further on this during the Q&A session if you want. Next slide now. So there again, we have a view on our portfolio. It's more visual presentation of where our located assets. There's no need to spend much time on this one.

[00:11:16] We can move to the next one. Yes. Here it's interesting to note that our tenants are quite strong names like Decathlon, like Deutsche Telekom, B&M, which is a very, very strong brand in the UK. We also have the ST Microelectronics, which is the semiconductor manufacturer, or Allian. So strong names, which is important to ensure that our income is there, the rents are paid and on time. And this is the case. We have no rent collection issue at all. On the chart, on the top left side, the circular chart, we can see that our rents are spread

[00:12:16] over, I mean, are well diversified over different tenants. The 36.6% part is the bundle of all the remaining tenants. So there it's very, very diversified. And then we have on the right side of this chart, three big portions, which relate to one tenant, but actually what I want to highlight is that the 20.8% relate to the Decathlon portfolio. And actually, okay, we have one tenant, but actually we have 27 locations, different locations behind this 20.8%. So if you look at each location, each asset, it represents less than 1%.

[00:13:14] And it is the same for the 17.4% part, which relates to the B and M portfolio, where there are 17 retail assets behind too. So there each asset represents more or less 1% on average of the total. So except the 17.7% related to Deutsche Telekom on a single asset in Bonn, but where there we are confident that the risk is quite mitigated by the fact that we are just, I mean, our asset is just in front of their global headquarters in Germany. We are confident that Deutsche Telekom would probably keep its occupancy on this asset. And so knowing that, we have a portfolio which is quite well diversified, much more than a

[00:14:16] few years ago when we had Damshtat property, which was single-lead, when we had Berning property before starting the repositioning project, which was also single-lead, which represented a lot more than 23 or 24% of the total rent of the portfolio. In terms of lease break and expiry profile, you can see that most of the leases, and now after 2031 and beyond, the main now deadline in front of us is 2027, where we have only a break option of the lease expiry. And this break option relates to Decathlon portfolio mainly. We've been discussing with them now for a few months, and we do not foresee any, do not

[00:15:10] anticipate any major risk with them. They are doing good business in their different locations. They may need some support at some assets, but none of them will be closed in our understanding. And no break option will be used by Decathlon. But when we have more view on this, we will communicate. So on the short term, I would say that there is no major risk on our rental income. Next slide, please. Here we can dive a little bit more on our asset management activity, because things have improved

[00:16:07] quite significantly and interestingly during the last quarter, with the occupancy rate, which has significantly increased by 3% on the portfolio. And this is mainly related to our Damst Track property in Germany. This property was fully vacated in end of 2022, when the former single tenant left. And it's been now quite a few years before we are able to relit, to backfill this asset. And the good news is that now we have been able to secure three new tenants, and the occupancy rate has jumped from 43% in end of 2024, but it was the same in end 2025, to 71% at the

[00:17:14] end of first quarter of 26. And we have a pipeline there, which allows us to hope to think that we may keep improving this occupancy rate. So 71% is still not very satisfying, but knowing that this asset had been more than half vacant for years, it's a good achievement. On our Spanish portfolio, so we had a few new releases, but what is good to know is that we have also there a good pipeline, and we hope that we can announce good news on the letting side, on the other sets, especially the Barcelona ones in the coming months. So there as well, the structure is very good.

[00:18:08] The team is working hard with all our work partners locally to market all these assets, and now the work is paying. So that's good news. Remember that our assets are the engine of the rate, and having our asset let is of course our objective, our day to day objective. Next slide, please. Okay, now on the finance, financing wise, the main messages are first that we have repaid 10 million euros on our Spanish loan, which is one of the main CP condition president for the extension, to be effective extension of the loan in the second half of 2026.

[00:19:08] When it is done, the expiry date will be postponed to end of 2029, giving a lot of relief to agreed on the loan side. And regarding the weighted average interest rate, it has increased since end of 2025, mainly due to, as mentioned earlier, the new swap on the German loan, which has been effective since end of January this year. We are now, I mean the new swap on the German portfolio is 2.22% fixed rate, which is the trend in Europe. And so now the weighted average interest rate is at 4.1%.

[00:20:04] So again, on one side, it is good news for our capital structure management that we refinance our loan. But this comes with the new finance cost environment, which is obviously higher than when the previous loan was secured. For example, the German loan was secured in 2019. So it was nearly seven years ago. At this time, the interest rate was completely different. The profile of the portfolio, the real estate portfolio was also different because at this time Berlin and Damstatt, the two asset that were vacated during this period were fully occupied. And so this has impacted our total finance cost.

[00:21:03] Next slide, please. Looking ahead, so they're just a word to explain what we are doing and what will impact the future. It's kind of sum up of what we've said. So our next steps are really keeping working hard on Berlin, delivering the first phase related to the hotel and secure an office tenant if the deal is good for our rate. Second is to keep improving our occupancy rate in our Spanish and German portfolios. Third, the line ahead is to manage the Decathlon break option, which we have mentioned before. And third main objective of the year 26 is to secure our loan extension on the Spanish

[00:22:02] portfolio, which is well engaged because of the repayment of the 10 million euros, which was the major CP. Thank you for listening to me. I think we are at the end of the presentation. Thank you for that presentation, Peter. Okay, I think that's finished. We'll move on to the Q&A. Okay, perhaps I'm just wondering whether I should maybe have a look at the question that has been submitted by Chen Yucuok. The 13th February 2026 valuation announcement explicitly assumed the office anchor lease

[00:23:02] has been signed. As of today, it hasn't. Can you walk me through the gap analysis? If the lease is signed at the assumed terms, no impact. If signed at minus 10% headline rent, what's the valuation impact? If not signed at all by year end 2026, what's the impact? I think we have to ask this question. Yes. So this is a good point. I mean, the valuer has taken a special assumption in the valuation campaign done end of 2025. And given the advanced stage of talks we have with the office tenant, they have assumed

[00:23:59] that in their valuation that the lease contract was signed. Now you're right that if it happens that this lease contract is not signed at the end, this will have an impact on the valuation of Berlin asset. This is something we have started talking with the valuer, but we do not have the information, the full information yet. But we may expect a decrease in the value in case it is not signed. The value of Berlin, our, I mean, we have met some assumptions on our side. The value of the asset may lose up to 20, we think yes, between 15 to 20 million euros.

[00:25:00] If the lease contract is not signed, but this is purely, I mean, assumption on our side, we are not the valuer, so we can only work on our models, which are different, obviously. One of the mitigants is the money injected in the asset during the period. So over time we inject capex for the delivery of the two hotels. And this capex has an impact, and has an impact, those capex have an impact on the value of Berlin, because, I mean, if you use the model, valuation model, you can see that if you inject capex in the asset, it increases the value. So we have two opposite forces, the one maybe the tenant, which is not signed on the office

[00:25:52] area, which may push the value down. And on the other side, we have the capex injected in the area, office area, sorry, hotel area, which will increase the value. But for sure, we do not expect an increase, I mean, global increase of the value at the end of June, 2026. If we do not, or end of the year, 2026, if we do not sign the lease contract with the property of this tenant, if it is signed, then we will have the full impact of the capex injected in the property, which will over time improve the value. So that's it. I mean, one of the correlated question you may have is an impact on our regulatory ratios.

[00:26:44] So we are monitoring them very carefully. We do not anticipate any breach on the aggregated reg so far with our model again, if we were not to sign the lease contract with the office tenant. But our main scenario remains that we sign this lease contract, and this is why the value took this assumption in its valuation in the end of 2025. Okay, thank you for that, Peter. Next question from Mr. Alan Cole. For the 30.1% leases expiring in 2027, which part of the year are the leases expiring? And when is management expecting the new leases to be signed?

[00:27:39] In 2027, we have many break options. So the lease contracts do not end. And most of the gray bar we saw on the chart was the Decathlon portfolio having a break option in July 2027. And to use this break option, Decathlon has to provide a 12-month notice to us, meaning that in July 2026, so in three months time, even less than that two months time, they will have to provide us with their notice to use the break option and quit certain assets, all of them. What we can say is that first, they are doing good business in most of their assets.

[00:28:42] Second is that they have penalty fees on 14 of the 27 of their assets, meaning that they would have to pay to us 12 to 18 months of rent on the assets they devacate, which is quite punitive for them. So it is very, for us, a very good meeting in this. And third point, we have been discussing with them now for a few months. And we do not see any risk of having even a single asset being vacated. So we may have discussion on some assets on their rents because business is maybe not as high as they expected, as good as they expected on some assets.

[00:29:41] But on none of them, we anticipate any closure of business. So I think, yes, in two months time, we will have a good view on what's happening there. And we do not foresee any risk on this support for them. Okay, thank you. And just to add one last thing, we could even consider extending the lease contract, which is ending four years later in 2001. Sorry, we may have an early extension, and this is what we are trying to negotiate with them, meaning that the lease expiry would be even extended, meaning that things are going rather well with them. Okay, thank you, Peter.

[00:30:37] Another question from Mr. Alan Koh. For phase two of project REO, your redevelopment project, what is the rental rate that is going to be paid by the potential tenant compared to the previous rental? How many percentage of floor area will be taken by this potential tenant? The percentage of floor area would be 50% of the total area of the asset, 40,000 square meters out of 80,000 square meters, which is the total area of the asset. So the two hotels have taken nearly 20,000 square meters, which is nearly 25% of the asset. The potential of this tenant would take 50% of the asset. So altogether, they would occupy 75% of the total asset.

[00:31:32] And in terms of rent, so as I mentioned earlier, the two hotels, operators will pay twice the rent paid by the former tenant. On the office area, it would be more or less the same. So it would be slightly lower, but nearly twice also the former rent paid by the former tenant. One idea, the former tenant, DRV, used to pay 12 euro per square meter per month in this property. The two hotels will pay 26 euro per square meter per month. So it's more than twice. And the office tenant would be above 24 euro per square meter per month.

[00:32:28] So there as well, we are more than twice, even if it's a bit lower than the two hotels, but it also takes into account obviously the fact that it's a huge area taken. So we have a kind of a wholesale price in this case. Very good. Thank you, Peter. Another question from Jenny A. Regarding Project REO, what rent per square meter and what tenor is baked into the JLL valuation and at what cap rate? Why did you change valuers from Sevells to JLL? Was this a board decision, a manager decision or driven by the lenders refinancing the German portfolio? Was a Sevells shadow valuation produced for comparison?

[00:33:24] First, in Singapore REIT, it's a requirement to change valuer at least every two years. So we had Sevells for two years. Their mandate was ending just after the valuation of end of June 25. Then we had to select a new one. So we launched a tendering process, as we normally do. And JLL was the one selected at the end because they procure the best of global conditions to REIT, so to REIT shareholder or unit holders. And then they made their first valuation end of last year. And of course, valuation is supposed to be something quite theoretical, but there is a

[00:34:25] part of a sub-series subjectivity in this exercise. Notably because markets are not fully transparent. So you have some references, but not enough to make good averages. So you have part of subjectivity and their subjectivity is a bit different than Sevells. On two assets, mainly Berlin and Munich ones, which have increased both the discount rate and exit cap rate. With regards to the assumptions, the figures provided to them, it's exactly the one I mentioned to you. We provided to them exactly the cash flows we use in our model to prepare to follow our project.

[00:35:26] So it's really the rent roll, the tendency schedule, all our capex, cash flows, et cetera. I mean cash flows in ongoing including capex, I mean the total transparent view. They used that, but the main, I would say, levers on their side is really the discount rate and exit cap rate, which they decide, even if we argued a lot on that. And their view is that on Berlin, many, the discount rate, which used to be 5.75% on Berlin, by Sevells, was increased to 7%. And this increase was explained by the fact that today they consider that in the Berlin market, there is a lack of liquidity of investors willing to pay or to invest in assets which

[00:36:26] are having capex. So this is mainly their argument. And so they increased the exit cap, I mean the discount rate, but also consequently the exit cap rate, which most of the time quite close to the discount rate. And that's it. So what we want to do is to secure as soon as possible the tenant on the office area so that at least from a commercial standpoint, the asset is dearest. And then over time when we do the capex, I mean the value will be able to witness that there is no issue, that we are on budget, on time, et cetera, and that the execution risk

[00:37:14] is lower than expected. And we expect the discount rate to decrease, exit cap rate to decrease and the value to re-increase. Okay. Thank you for that, Peter. Any more questions from the audience? If not, we'll move to some of the pre-submitted questions. One of which is, what proportion of currently vacant space across the portfolio is under active negotiation versus what proportion is still in early stage marketing? I would say that except the 25 remaining percent of Berlin asset, all the areas are in active negotiation, meaning that we have a pipeline on all our assets, pipeline that

[00:38:10] could bring the occupancy to close to 100 percent. Of course, it's never 100 percent sure that we will secure all these tenants. But we have a good pipeline on all our assets, mainly Darshat, on our Spanish for assets, for office assets. The only remaining area is 25 percent of Berlin asset, which we will fully market. I mean, it is under marketing, but much more on market. When we have secured the office tenant, because there we would have a clear view on the remaining office area. It would be easier to market. But otherwise, we are progressing well on all the other assets. And this is why also the occupancy rate has jumped during the last quarter.

[00:39:05] It's because all of this active negotiation on all our vacant space is paying now. Right. Okay. Thank you, Peter. Another pre-submitted question is, perhaps could management elaborate on the terms of the shareholder loan provided by city developments, including key conditions and repayment expectations? I need that to Kevin. Yeah, certainly. I think we have also disclosed that in the December announcement. So I think the key terms really is for the city loan is floating rate 3.55 percent over Euroball, three months Euroball. So I think that's really the key terms.

[00:40:02] And we are able to use it for two year term. So upon the drawdown. So currently, we are given a nine months availability period, meaning to say that from December 2025, we are able to do the drawdown in one lump sum till the end of September. So I think something that we can still negotiate with CDL given that is our joint sponsor. But I think this is really what we are looking at. I think in terms of, as you can imagine, given that this loan from the joint sponsor, so there are not a lot of other fees that you would anticipate with external loan, such

[00:40:50] as the commitment fees and the like. So very supportive from CDL and that's really the key assumptions, key terms. Okay, maybe stay on with you, Kevin. There's a question on the green notes, right, which is that the REIT issued 85 million dollars of fixed rate green notes with a coupon of 6.17 percent and all in costs of about 6.8 percent. So why is the REIT using a relatively higher cost green load? Okay, sure. I think it's really on two points. One, I would like to mention that 100 percent of our borrowings are currently secured on the mortgage asset for the green loans. So our long-term objective is really to unencumber some of these assets, get this unsecured financing

[00:41:54] just to leverage or to give ourselves more flexibility in terms of the use of financing and to broaden our financing options. So we have established an EMTM program back in 2022, so we have not made any drawdown from that program. But the longer term is indeed our view to really unencumber. So hence, when we saw this development project, everything that is quite attractive to use the green notes, given that firstly, as you can imagine, for development projects, if you were to get it from banks, it's going to be quite high-speed as well. So in our view, 6.17 coupon rate is a kind of competitive risk in our view, even though

[00:42:54] it's higher than the market, we attribute it to really the first maiden issuers to ensure the success of these first issuers and also a kind of premium-embedded compared to the other bank loans that we may achieve. So that was quite successful. I mean, we have managed to place up 85 million C, equivalent to 60 million euros. And that has helped us to fully secure the funding for the Phase Fund project, which is very important because this is the committed phase of the project, together with the 20 million unique credit loan, as well as the CTL loan that we mentioned earlier, that has kind of fully secured the funding for this Phase Fund repositioning project for the hospitality

[00:43:54] segment. So that was really the key reason. Okay. Thank you, Kevin. Another question on financing and funding, which was pre-submitted. How does management plan to fund asset repositioning or enhancement initiatives while managing the impact on distributions? Okay. A very good question. I think so far we have mentioned about the financing for Phase Fund. We also want to highlight the fact that we would like to adopt a modular approach to this financing and the KPACs. Why so? Because we think that only after we secure the lease commitment, say for example, this big office tenant that we are hoping to secure by June, 20th, 2007, only then we will know

[00:44:52] the asset KPACs to be spent. And from there, we will then raise money to secure the funding for this KPACs. So it's kind of a back-to-back financing so that we do not raise capital upfront and incur that kind of FD cash drag on our balance sheet. We want to make sure that we secure the lease tenant before we incur the KPACs and raise the funding. So that is the first part. I mean, while we have not secured the financing for the office tenant, we have already secured the funding for Phase Fund. So that is the key part. Assuming if we were to secure the office tenant, then we will look at the KPACs up

[00:45:53] because currently it's still not fixed yet. And we would like to see what other options available, roll it together with the KPACs to be incurred so that again, just to mention, not to cost until cash drag on our end and the impact to unit holders. We do have quite a few funding options, but as mentioned, I think we have the EMTM program in place. We also do not rule out the possibility of EFR, equity fundraising, but I think these are all looked on a holistic manner and not to forget also, Peter may mention some supplements,

[00:46:52] some details later, but we are also looking at potential capital recycling, meaning that we may explore divestment of certain existing properties so as to use deployed receipts to fund the project. So I think currently still quite fluid, still looking at various options. Okay, that's great Kevin, thank you. Just to add, sorry to interrupt, just to add a word on that, the first asset which will be considered for sale is Berlin-Sev. And its liquidity on the market will depend on the fact that we have an office tenant. So signing an office tenant may be a way to fund the KPACs on the office tenant area,

[00:47:49] you see. So we do not specifically aim at selling 100% of Berlin-Sev, but at least divesting 50% of it is clearly on the table. We like to pursue this and this would be enough, normally or close to enough to fund the KPACs, remaining KPACs part on our side. All right, good. Thank you. Okay, I have a question on your portfolio's risk profile. Using vacancies at Darmstadt and Munster in 2022 and Berlin campus, loan margins have increased significantly from 0.73% to 2.5%. And the Spanish portfolio also breached its financial covenants. So to what extent might more proactive leasing or asset management have mitigated the widening

[00:48:50] of credit spreads? In other words, is it reasonable for unit holders to attribute the REIT's current challenges primarily to execution issues? I cannot say to this one staff and serene. So clearly the role of a REIT is to let its space. So in a way you're right, it's because we have vacant space in our portfolio that the loan, the risk margin have increased over time. But we need to have a better understanding of the context. Of course, it's not looking at excuses, but we have to remember that I read German and

[00:49:53] office portfolios were highly impacted by the COVID-19 crisis and the consequences post this crisis where, especially in Europe, work from home, now new habits have been implemented everywhere. We can see now a kind of reverse movement on this, which is becoming more and more significant. But I mean, up to now, a lot of office assets have suffered a lot from this, yes, this post COVID-19 situation. What has made REIT's good years, which were truly late secondary office assets in the past,

[00:50:51] has become after COVID-19 crisis kind of an issue. So what we have been doing, because of course our role is to manage the situation, is to convert those single-letter sets into multi-letter sets, to avoid facing new dumpster being fully vacated, et cetera, or Berlin. This takes time, because in real estate, it takes time, and creates temporary vacancy, which we are still facing in Berlin, mainly, even if we are working to reduce the vacancy. Berlin is clearly the last of all these assets. But clearly, yes, our plan is to relet our asset, to reduce consequently the loan margin, because once we have reduced our risk profile on our asset, we will knock at the door of

[00:51:51] our lenders and say, guys, the risk margin has changed, please review your margin. We will also try to get any opportunity on the interest rate market as well, to try to reduce and secure a lower interest rate whenever it's possible. And that's true. I mean, the loan conditions reflect probably the state of the portfolio. On our side, we have a big portion of office assets that suffered post-COVID-19. But the good news is that now, I mean, the situation has not been as good as now. In the past, it has never been as good as now. We have switched most of our assets from single-letter to multi-letter.

[00:52:48] And so we will not face any more situation where we have full vacancy in an asset. And then what we are in our midterm plans also, we have not mentioned that, but what we want to do is to grow again, diversify more of the portfolio so that we dilute the effect of our potentially risky assets. In any asset, we reduce exposure to single-tenant, single asset, et cetera, so that we do not undergo such a situation again. Thank you, Peter. We just- Silver, maybe I just add one or two points. I mean, we obviously are talking about the loan margins, but I thought I just quickly

[00:53:42] flack out there. And in the all-in cost of debt, it also includes the hedging costs that we have secured. I mean, to be very specific, right, for the German portfolio, we are also looking at widening of the cost for hedging. So I think we want- I thought I just quickly mentioned that hedging has also become quite expensive in the past few months, and hence that has also caused an impact to the overall in-cost of debt. And I think that is somewhat related to the market conditions. And given that if going forward, there will be some reversal, we will also kind of benefit from this lower interest rate swaps, for example.

[00:54:38] I thought just highlight to you and the community that the all-in cost of debt is obviously driven by the loan margin as well as the hedging costs associated with it. Thanks. All right. We are running short of time. There is a question here from Chen Yekwok. At the financial year 2024 results, you guided to two potential office tenants by first quarter 2026 in Berlin. Now it's a lease with a major prospective office tenant by Q3 2026. Can you confirm that the prospective tenants have narrowed to one? If it has narrowed, what happened to the other? Is the prospective tenant a private corporate or another federal public sector entity like

[00:55:30] DRV? Okay. Given your Darmstadt success with the federal agency and AOK, are you concentrating Berlin's anchor risk on government counterparties as well? There appears to be aggressive incentives in the Berlin sub-market and what are you offering? This is quite a complicated question, but it relates to your main tenant, I guess Berlin. I start answering. You're right. There are two potential office tenants on Berlin, two sizable ones. The second one is still living, leaving opportunity, but it is in standby. That's why we are focusing on the first one, which is by the way, the most advanced, which

[00:56:27] has always been the most advanced one. The second one is in standby. Both of them actually are not especially public, but backed by public equity. For the second one, the government has asked them to have a look at the public portfolio, the invested portfolio to assess if they cannot accommodate their needs in the existing public portfolio, so the portfolio owned or rent or reduced by the government or the governmental agencies. Then to go back to the market, if they have not found any suitable areas in the portfolio.

[00:57:23] It is in standby so that they do this work. This work takes a few months to be done, and then they will be back to the market. It's not dead, but it is a post-bund, which is not bad in our view because we do not have two processes exactly parallel. If the one we are currently working with at the end does not work, we may have the second one starting again. But on top of that, we have also two other potential tenants for this asset. The pipeline has currently, on top of the existing one, which we are highly negotiating with, consists of three other tenants, the second biggest one.

[00:58:21] Then you're right, on the Damskhat, we have signed a new federal agency. AOK is not really a state owned agency. It's more a private company, which distributes statutory health insurance, so it's more private, even if related to public welfare. On Berlin, it's a private company, but with government equity. But for me, there is no better tenant, I mean, German government in Germany, which is AAA, and this country is AAA-credits rated, and it's a very good one.

[00:59:21] Okay, we've reached the end, but I think we can take maybe a couple of more questions. One from Mr. Alan Cole, which is, basically, shouldn't management give priority to asset recycling, given that the share price is already trading at a 50% discount valuation? Have you considered asset recycling?

[00:59:48] Yes, we do. We do this on a permanent basis, to be honest.

[00:59:57] We test the market on a regular basis for our office assets, mainly. And we hope that having them more and more let, backfilled, will provide more liquidity on them, so that we can generate money, yes, without having to do an EFR or to use more depth insurance. But, yes, I must say that the context, I mean, liquidity on the office market is still quite dry, and it's not easy. I mean, one of our plans remain selling our 50% at least of our Berlin asset, when the office entity is secured, because we would have an asset with 20-year-old contract without

[01:00:55] break option on the hotel area, 25-year-old contract with an office tenant without break option as well. So it would be, I mean, this kind of length of this contract may bring some kind of liquidity to the asset, and we may be able to interest some core corporate investors with such contracts, especially if they are backed by very, very good tenants, which would be the case. So this is our plan A, Kian. Right. Thank you. Last question before we wrap it up. Where are you on your search for a replacement CFO given that Kevin's last day is 30th June? We are progressing well. We have met several candidates.

[01:01:52] I think we have reached kind of consensus on one profile with our members. And now the question is to discuss the terms and conditions with this potential candidate, but we may be able to announce soon the replacement for Kevin, which by the way, I think for his contribution to IREIT. Thank you. And for ensuring a proper handover. Thanks a lot. Okay. Thank you very much. You're welcome. I passed one, so we've overrun a little bit, but I think that's fine. So we've reached the end of today's session. A big thank you to Peter and Kevin for taking the time this afternoon and for the open and transparent responses to all the questions that were posed.

[01:02:47] I think we managed to answer quite a bit of ground, both live questions as well as the pre-submitted questions. So we also appreciate that IREIT has provided detailed replies to Siasas' questions ahead of their AGM and for all unit holders here, we encourage you to review the manager's responses if you haven't done so. So that's it for this afternoon. Once again, thank you everyone for taking the time. It's early morning in France, so Peter, thank you for taking the time. And we look forward to seeing you at other Sias' events soon. Good afternoon and have a great week ahead. Thank you.