Financial Data and Key Metrics Changes - The company reported a 3% increase in valuation to GBP 5,200,000,000, driven by a 2.9% increase in estimated rental value (ERV) with stable valuation yields [5][6][14] - Net tangible assets (NTA) increased by 3.3%, resulting in a total accounting return of 4.2% for the period, aligning with medium-term targets [6][13] - Rental income rose by 8%, with underlying earnings up 16% for the half year [6][12] Business Line Data and Key Metrics Changes - Gross rents increased to GBP 98,700,000, reflecting an 8.2% like-for-like growth due to successful leasing and asset management [10] - The company achieved commercial lettings and renewals 10% ahead of ERV and 24% ahead of previous passing rents [10] - The portfolio vacancy rate is low at 2.5%, indicating strong demand across all sectors [19] Market Data and Key Metrics Changes - The West End remains a premier destination, attracting approximately 200 million visitors annually, contributing to high occupancy and reliable cash flows [5] - Customer sales are estimated to be 30% higher in nominal terms compared to 2019 levels, significantly outpacing ERVs [14] Company Strategy and Development Direction - The company aims for 5% to 7% rental growth in the medium term, with stable yields expected to deliver accounting returns of 8% to 10% [27] - The strategy includes enhancing liquidity to pursue accretive investment opportunities and maintaining a strong balance sheet [15][27] - The partnership with the Norwegian Sovereign Wealth Fund highlights the attractiveness of the Covent Garden portfolio and future growth potential [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the West End's performance despite macroeconomic challenges, citing high footfall and low vacancy rates [26] - The company anticipates continued strong demand for its properties, supported by a robust leasing pipeline and active management strategies [26][27] Other Important Information - The company completed GBP 55,000,000 in acquisitions during the period and disposed of approximately GBP 12,000,000 worth of assets [25] - The market value of the portfolio under management increased by 3.1% like-for-like, with net debt reduced from GBP 1,400,000,000 to GBP 800,000,000 [13][14] Q&A Session Summary Question: Importance of Charlotte Tilbury's addition to Carnaby - Management highlighted the positive response from tenants and the potential for Charlotte Tilbury to enhance the re-tenanting momentum in Carnaby, contributing to future rental growth [30][31] Question: Like-for-like rental growth and retail market performance - Management noted that the retail market is strong, and the marginally negative performance in like-for-like rental growth should not overshadow the overall positive demand in the West End [34][36] Question: Plans for refinancing and interest rates - Management indicated plans to repay the exchangeable bond next year and mentioned that the private placements are accessible, with expectations of favorable financing conditions [37][39] Question: Reversionary potential and tenant profitability - Management explained that the embedded reversionary potential is the difference between passing rent and ERV, and they are confident in capturing this reversion as leases come due [42][46] Question: Balance sheet leverage and reinvestment opportunities - Management stated that they aim to maintain net debt to EBITDA well below 10%, with current levels at 6%, allowing for flexibility in reinvestment opportunities [44][55]

Core Insights - One Congress, a new trophy office asset in Boston, has achieved 100% pre-leasing 12 months prior to its completion, indicating strong demand for premium office space in the area [1][3] Financing Details - JLL's Capital Markets group arranged a $650 million refinancing for One Congress, a single-asset, single-borrower loan led by Wells Fargo and Bank of America [1][2] Property Features - One Congress is a 43-story building with a total area of 1,008,000 square feet, designed by Pelli Clarke & Partners, featuring sustainable and energy-efficient office space with column-free floor plans and views of the Charles River and downtown Boston [3][4] - The building includes a full-floor amenity center, 15,000 square feet of rooftop terrace space, a 7,000-square-foot fitness center, and a triple-height lobby with a coffee bar [3] Location and Accessibility - Situated within the Bulfinch Crossing redevelopment, One Congress connects Boston's Financial District, West End, North End, and Beacon Hill neighborhoods, with direct access to public transportation and major highways [4] Company Background - Carr Properties is a privately held real estate investment trust with a portfolio of 11 commercial office properties totaling approximately 4 million square feet, along with future multi-family development sites [8] - National Real Estate Advisors focuses on developing and managing commercial real estate projects across the U.S., with a diverse investment portfolio [9][10] JLL Overview - JLL is a leading global commercial real estate and investment management company with annual revenue of $23.4 billion, operating in over 80 countries and employing more than 112,000 people [11]