Simon Stippig

Asked about the sustainability of Polish rental growth, sales price increases versus cost expectations in the development business, the investment strategy for the company's cash holdings, and the reason for the increased vacancy in the German commercial portfolio.

Answer

The executive confirmed the current Polish rental growth is in line with guidance and expects a 3-5% medium-term growth rate. He stated that development margins remain healthy at over 30% as sales prices have outpaced construction costs. The company's cash is held in flexible short-term deposits. The increase in German commercial vacancy was attributed to the small size of the portfolio and is not seen as a negative trend.

Asked a series of detailed questions about the 2025 FFO bridge, portfolio yield expectations, the rationale for retaining cash given the Polish business is self-funding, capital allocation priorities including share buybacks, and specifics on the Polish build-to-hold business, including unit growth and rental trends in Lódz.

Answer

The executive clarified that the FFO bridge reflects past disposals, not new ones. While the trend for valuations is positive, no concrete guidance was given. The conservative dividend payout is for sustainability and future opportunities, not due to rising costs. The capital allocation priority is Poland, then opportunistic German deals, with share buybacks not currently on the agenda. The 2025 Polish rental growth is driven by ~400 new units (phased through the year) and organic growth, and the negative rent in Lódz was an isolated, short-term event.