Operator

Hello, and welcome to Gecina Q1 2026 Activity Conference Call. [Operator Instructions]

Today, we have Benat Ortega, CEO; and Nicolas Dutreuil, Deputy CEO in charge of Finance as our presenters. I will now hand you over to your host, Benat Ortega, to begin today's conference. Thank you.

Benat Ortega
Director General, CEO & Director

Good morning, everyone. It's a pleasure to share an update of the execution of our strategy today. One word to begin with on rental income. Our rental income increased in Q1 on a like-for-like basis, up 2.3% to EUR 176 million. This again shows our ability to outperform indexation, supported by rental uplift and a consistently high level of occupancy.

As expected, indexation is decelerating, reflecting the slowdown in inflation and construction costs in France last year with the usual lag effect embedded in our leases. On a current basis, rental income reflects the impact of the significant disposals executed last year as we recycled mature capital from residential assets into higher-yielding opportunities in the office segment.

Occupancy remains high and broadly stable year-on-year with more than solid activity in Paris and an acceleration of our residential occupancy. The temporary increase in vacancy in Boulogne reflects the time required to release surfaces vacated following lease maturities last year. But we have signed several leases in Boulogne during Q1 and public transport will improve significantly with the