Release Date: October 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more color on the investment market, particularly in terms of liquidity and opportunities? Also, do you see any changes in leasing activity with corporates wanting employees back in the office? A: The investment market remains quiet, but there are still decent deals in central Paris. Corporates are reassessing office space needs, with some reevaluating the extent of space reduction. Leasing activity was impacted by the Olympics and political uncertainties, but demand remains for quality office assets in central locations. Benat Ortega, CEO
Q: Are you actively scanning the market for acquisitions, and how is your development pipeline progressing? A: We are monitoring the market for acquisitions but remain cautious about capital allocation. Our development projects are progressing, with permits being worked on, and we hope for good news by year-end. Pre-letting rates have not seen significant changes. Benat Ortega, CEO
Q: With Eurozone inflation decreasing, where do you see indexation and like-for-like growth heading in the next few quarters? A: Inflation's contribution will likely be highest in 2024, with a decrease expected in subsequent quarters due to the lag effect. We still anticipate reversion contributing to future cash flow. Benat Ortega, CEO
Q: What are your current credit spreads for five to seven-year financing, and is the bond market more favorable than the bank market? A: Credit spreads are improving, with seven-year bonds around 3% to 3.2%. The bond market remains more attractive than the bank market, and we have flexibility with commercial paper activity. Benat Ortega, CEO
Q: Are there any significant leasing topics or changes in tenant behavior you are monitoring? A: We have expiries in the outskirts of Paris, which may lead to negative reversion and potential vacancy. Demand remains strong in central Paris, but the outskirts face challenges. We are not seeing significant distress among asset owners yet. Benat Ortega, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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