Q4 2025 Link Real Estate Investment Trust Earnings Call

Oh, George Holm try.

Christy Ng: Director of Investor Relations. Let me introduce what we have on the stage today. We have our Group CEO, George Hongchoy, our CFO, Ko Sheng Ng, our COO, Craig Trout, and our CCDO, Ronald Tam. Here are our agendas today. If you want to download our presentation or our announcement, you can scan the QR code here. I'll give you a few seconds if you want to. When you're ready, let's start. Let me hand the floor to George. Thank you.

Our CFO Shang, our CLO credit trucks, and our C E D O Ronald Perm.

So here is our agenda today.

So if you want to download our presentation or on our announcement you can scanned the Cal cochlea sort of gives you a feel so again, if you want to.

Okay. When you all got wide eat less starts so let me hand, the far too you are George Thank you alright. Thank you Christy.

Can we start with a slide which gives you a highlight of the presentation that we'll be giving today.

Amidst a very challenging macro economic environment and serious business challenges in Hong Kong and mainland China.

George Hongchoy: Thank you, Christy. Let me start with this slide, which gives you a highlight of the presentation that we'll be giving today. Amidst a very challenging macroeconomic environment and serious business challenges in Hong Kong and mainland China, I'm happy to report that Link managed to deliver a very solid set of results, which are credit to the whole Link team. We have seen valuations come under pressure, and we expect the environment to continue to be very challenging in the year ahead. Given this, we have initiated a number of efforts aimed at reinforcing our resilience and to protect our DPU. Central to this is a long-term diversification strategy, which has helped us to protect our earnings in recent years and will continue to move forward with this.

I'm happy to report that link managed to deliver over you saw those sets of results, which are credit to the whole link team.

We have seen valuations come under pressure and we expect the environment to continue to be very challenging in the year ahead.

Given this we have initiated a number of efforts aimed at reinforcing our resilience and to protect our GPU.

Central to this is a long term diversification strategy, which has helped us to protect go earnings in recent years and will continue to more move forward with this.

As mentioned that this thought linked rates result for the financial year solid.

And that reinforce our resilience.

And in face of this uncertain macro condition and diverse intensify what's the challenges for all of our business.

George Hongchoy: As mentioned at the start, Link REIT's results for the financial year are solid, and that reinforces our resilience in the face of this uncertain macro condition and intensifies the challenges for our business. While we are pleased to be able to deliver another year of growth in distributable income to our unitholder, with an increase of 4.6% year-on-year, which would stress that some of the positive contributions are one-off items. We achieved the DPU growth of 3.7% year-on-year. However, the NAV per unit declined 9.6% year-on-year, largely on decreasing asset valuation from cap rate expansion in most markets. We retain a strong financial position, with net gearing at a healthy 21.2%. This, in addition to robust credit ratings and competitive financing costs, provides a solid foundation to navigate the challenges ahead and enables us to capitalize on potential opportunities. We move into business and strategy.

While we are pleased to be able to deliver another year.

Year of growth in distributable income to our unit holder with increase of four 6% year on year, which would stress that some of the positive contributions are one off items.

We achieved the GPU growth of 3.7% year on year.

However, they earn a fee per unit declined nine 6% year on year, largely on decreasing asset valuation from cap rate expansion in most markets.

We retain a strong financial position with net gearing at a healthy 21, 2% and this in addition to robust credit ratings and competitive financing cost provides a solid foundation to navigate the challenges ahead and isn't able us to capitalize on potential opportunities.

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Remove into business and strategy.

Link has evolved over the past 20 years with active management and asset recycling to drive growth.

Since 2015, we expanded into mainland, China, Australia, and Singapore, reinforcing all of Australia, It's our diversification strategy and solidified our position as one of Asia's leading property investors and manager.

George Hongchoy: Link has evolved over the past 20 years with active management and asset recycling to drive growth. Since 2015, we expanded into mainland China, Australia, and Singapore, reinforcing our diversification strategy and solidifying our position as one of Asia's leading property investors and managers. A lot has been achieved in these 20 years, but it's only the beginning. We are at an important and exciting pivotal point in Link's development under Link 3.0. You can see from here how the Link REIT portfolio has undergone significant transformation over the years. From the IPO time, our portfolio consisted of 81% retail and 19% car parks, only in Hong Kong. Throughout all these years, we have now transformed into a more diversified portfolio across different geographies and property types.

A lot has been achieved in these 20 years, but there is only the beginning and.

And we are that important and exciting pivotal point in links development underlying 3.0.

You can see from here, how the linked REIT portfolio has undergone significant transformation over the years from.

From the IPO time, our portfolio consisted of 81% retail and 19% car parks only in Hong Kong.

And for all these years, we have now transform into a more diversified portfolio across different geographies and property types.

We have consistently shown that we are able to unlock value for our unit holders even during challenging periods such as the global financial crisis, the COVID-19, pandemic and social unrest in Hong Kong.

George Hongchoy: We have consistently shown that we are able to unlock value for our unitholders, even during challenging periods such as the global financial crisis, the COVID-19 pandemic, and social unrest in Hong Kong. Since 2005, we have delivered annualized total returns of 10.9%, which outperform the Hang Seng Index and the Hang Seng Property Index. Our portfolio value has also grown more than fivefold since IPO. The chart shows how the diversification we initiated 10 years ago has enabled us to continue to grow these past few years and become an increasingly sizable portion of our NPI. Looking forward, we'll continue to pursue further portfolio optimization through Link 3.0 strategy, and we will be updating on this in the presentation. Our commitment to value creation is reflected across all aspects of our business, including our asset management capabilities, supported by operational efficiency, community engagement, and innovation.

Since 2005, we have deliver annualized total return of 10, 9% and up which outperform the hang Seng index and the hang Seng property index.

Our portfolio value has also grown more than fivefold since IPO.

The chart shows how the diversification we initiate a 10 years ago has enable us to continue to grow these past few years and become an increasingly sizable portion of our N P. I.

Looking forward, we'll continue to pursue further portfolio optimization fooling frequency or strategy and we will be updating on this in the presentation.

Our commitment to value creation is reflected across all aspect of our business, including our asset management capabilities supported by operational efficiency.

Community engagement and innovation.

Proven extra track record and diversify and diverse.

Link REIT portfolio are key drivers for our success and for further detail will refer to the annual report, where we will disclose further.

George Hongchoy: Our proven exit track record and diversified and diverse Link REIT portfolio are key drivers for our success. For further detail, we'll refer to the annual report where we'll disclose further. During the year, we undertook several key strategic initiatives to enhance our resilience, and let me highlight a few of these. It was another busy year of portfolio optimization, and we continue to improve operational efficiency. Craig will provide more details in his section. As for the investment management business, we put in place a pan-regional team and infrastructure. The foundations are now fully set for the business. Lastly, through the nomination committee, our appointments to the board were made, including the chair and INEDs. Let me first pass to KS to share with us the financial updates.

During the year, we undertook several key strategic initiatives to enhance our resilience and let me highlight a few of these.

It was another busy year of portfolio optimization, and we continue to improve operational efficiency, Greg will provide more details in his section as for the investment management business, we put in place a pan regional team and infrastructure. The foundations are now fully set for the business.

And lastly, food the nomination committee our appointment to the board were made including the chair and I N E DS.

I mean first pass through at chaos to share with us a financial update.

Thank you Josh good afternoon to everyone. Thank you for coming.

We have seen steady growth across our portfolio during the last financial year.

In Hong Kong, we achieved total growth in revenue and MPI.

Ko Sheng Ng: Thank you, George. Good afternoon to everyone. Thank you for coming. We have seen steady growth across our portfolio during the last financial year. In Hong Kong, we achieved total growth in revenue and NPI. This was driven by relatively better retail sales and savings in utility expenses. In mainland China, both total revenue and NPI are also up. This was mainly boosted by the full-year contribution of Link Plaza Qibao. On the overseas front, our retail assets in Singapore and Australia recorded nearly full occupancies and positive rental reversions. Our low gearing helped us to keep borrowing costs competitive and weather the storm of valuation declines. I'll come back with more details on capital management and valuation in a while. In this slide, we are showing a simplified version of our P&L.

This was driven by relatively better retail sales and savings and utility expenses.

In mainland China, both total revenue and MPI are also up.

This was mainly boosted by the full year contribution of Lincoln Plaza to keep up.

On the overseas front our.

Our retail assets in Singapore and Australia.

Nearly four occupancies and positive rental revisions.

Our low gearing helped us to keep borrowing cost competitive.

And weather the storm of valuation declines.

I'll come back with more details on capital management and valuation in a while.

In this slide we are showing a simplified version of our P&L.

Despite algae, enabling up 19, 5% year on year.

A large part was due to LTI scheme adjustment.

Legal and consulting fees and uncapped the life expenses from exploring M&A abuse.

Ko Sheng Ng: Despite our G&A going up 19.5% year-on-year, a large part was due to LTI scheme adjustment, legal and consultant fees, and uncapitalized expenses from exploring M&A deals. Excluding these items, G&A would have been up 6.9%. Another item to take note would be the net finance cost. The increase was due to the acquisition of Link Plaza Qibao. Excluding such costs, net finance costs decreased by 1.4% due to effective interest rate hedging. Back to valuation, total portfolio value as of March 31, 2025 declined by 4.7%, half on half, mainly due to, firstly, cap rate expansion in Hong Kong and mainland China, and FX depreciation against Hong Kong dollar for the overseas. Our robust FX hedging strategy effectively mitigated the extent of the decline in the total value of investment properties in Hong Kong dollar terms. Lastly, capital management.

Excluding these items G&A would have been up six 9%.

Another item to take note will be the net finance cost.

The increase was due to the acquisition of Lincoln Plaza Cheapo.

Excluding such costs net finance cost decreased by 1.4% due to effective interest rate hedging.

Back to valuation.

Total portfolio value as of 31st March two zero to five declined by four 7% half on half mainly due to.

Firstly Cameron compressor expenditure extension in Hong Kong, and mainland, China, and FX depreciation against Hong Kong dollar for the overseas.

Our robust FX hedging strategy effectively mitigated the extent of the decline in the total value of investment properties in Hong Kong dollar terms.

Lastly capital management.

Our financial position is well supported by a healthy balance sheet.

Sean by the key metrics here.

As of 31st March two zero to five net.

Ko Sheng Ng: Our robust financial position is well supported by a healthy balance sheet, as shown by the key metrics here. As of March 31, 2025, net gearing remained low, while the average borrowing cost remained competitive. Fixed debt ratio is in the upper range of 50% to 70%, and we'll continue to closely monitor the movement of interest rates. Our financial stability is reinforced through FX risk management, which includes extensive hedging of non-Hong Kong dollar distributable income and overseas assets. Over the financial year, we have been repaying our debt. Debt balance as of March 31, 2025 is reduced to $54 billion Hong Kong dollars from $60 billion a year ago. Our A ratings from all three credit agencies enable us to secure favorable terms for future funding needs. We have achieved a lower overall margin in refinancing this year.

Net gearing remains law, while the average borrowing cost will remain competitive.

Fix that ratio is in the upper range of 50% to 70%.

And we will continue to closely monitor the movement of interest rates.

Our financial stability is reinforced through FX risk management, which includes extensive hedging of non Hong Kong dollar distributable income and overseas assets.

Over the financial year, we have been repaying our debt.

That balance as of 31st much two zero to five is reduced to 54 billion Hong Kong dollars from 60 billion a year ago.

Our a ratings from all three credit agencies enable us to secure favorable films for future funding needs and we have achieved a lower overall margin in refinancing this year.

Furthermore, we remain well below the key covenant thresholds set by the rating agencies.

This gives us headroom to catch you at acquisitions and other opportunities when needed.

Ko Sheng Ng: Furthermore, we remain well below the key governance thresholds set by the rating agencies. This gives us headroom to capture acquisitions and other opportunities when needed. Let me pass over to Greg for operational highlights. Thank you.

Let me pass over to Greg for operational highlights. Thank you. Thanks.

Thanks, Chris and good afternoon, everyone.

And I'll start with our Hong Kong retail segment performance first.

We have retail businesses in Hong Kong continued to face market wide challenges amid intensifying competition rising costs and cross border travel.

Craig Trout: Thanks, KS, and good afternoon, everyone. I'll start with our Hong Kong retail segment performance first. Retail businesses in Hong Kong continue to face market-wide challenges amid intensifying competition, rising costs, and cross-border travel. This has seen total Hong Kong retail sales decline 7% over the period. Portfolio sales for us at Link have declined at a lower rate over the same period at -3%. This is given our focus on food and non-discretionary trades. Leasing reversions over the period have turned slightly negative for the full year at -2.2%, with ongoing pressures in particular in supermarket and Chinese restaurant categories. Occupancy across our portfolio has remained stable and has been preserved at a very solid 97.8%, which ensures a stable and predictable income stream.

This is seen total Hong Kong retail sales declined 7% over the period.

Portfolio sales for us at link have declined at a lower rate over the same period at negative 3%.

And this is given our focus on food and non discretionary trades.

Leasing revisions over the period of turned slightly negative for the full year at negative two 2% with ongoing pressures in particular in supermarket and Chinese restaurant categories.

Occupancy across our portfolio has remained stable and is being preserved at a very solid 97, 8% and this ensures a stable and predictable income stream.

Hello. This is St revenue growth of one 5% year on year and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs.

Craig Trout: All of this has seen revenue growth of 1.5% year-on-year, and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs. In response to the evolving market and landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix. For the financial year, we successfully signed over 600 new leases, including the introduction of over 200 new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period. Additionally, we continue to focus on emerging trends, particularly across fast food and food and beverage categories, as well as family entertainment and traditional Chinese medicine clinics to enrich our offerings and continue to drive improved footfall.

In response to the evolving market landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix.

For the financial year, we successfully signed over 600, new leases, including the introduction of over 200, new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period.

Additionally, we continue to focus on emerging trends.

Particularly across fast food and food and beverage categories as well as family Entertainment and traditional Chinese medicine clinics to enrich our offerings and continue to drive improved footfall.

By strategically managing our deep tenant customer relationships with brands across Hong Kong mainland, China, and Irish National portfolios, we aimed to enhance the attractiveness of our retail assets and stay relevant with consumer preferences.

Craig Trout: By strategically managing our deep tenant-customer relationships with brands across Hong Kong, mainland China, and our international portfolios, we aim to enhance the attractiveness of our retail assets and stay relevant with consumer preferences. Now turning to our Hong Kong car park and related businesses, we achieved 1.7% year-on-year revenue increases, mainly due to higher tariffs. During the year, we introduced a new car park management system designed to enhance our operational efficiencies and also maximize utilization. This AI-powered system enables us to pilot systems such as dynamic pricing schemes, as well as the introduction of new products and services. One of those new products is the One Link Pass, which offers a flat monthly rate and allows passholders to park at hourly bays in designated car parks across Hong Kong. This product has proven to be very popular amongst customers since its recent launch.

Now turning to our Hong Kong Cop Hakan related businesses, where we achieved 1.7% year on year revenue increases mainly due to higher tariffs.

During the year, we introduced a new cap lack management system designed to enhance our operational efficiencies and also maximize utilization.

This AI powered system enables us to pilot system, such as dynamic pricing schemes as well as the introduction of new products and services.

One of those new products is the one linked Pos which offers a flat monthly rice and allows pass holders to park at Alibaba as in designated Cowpox across Hong Kong.

This product has proven to be very popular amongst customers since its recent launch.

We will continue to develop innovative products to enhance revenue utilization and increased co packing traffic.

Now, we'll move to mainland China retail.

Craig Trout: We'll continue to develop innovative products to enhance revenue, utilization, and increase car parking traffic. Now we'll move to mainland China retail. Over the year, we've seen that Chinese consumer spending has remained relatively subdued, with portfolio performance differing between North and South. Our Southern assets continue to deliver strong results, while assets in the North faced headwinds amid a softer market environment. Occupancy, however, remains solid at just under 96%, and rental reversion improved from -3.2% at the half to 0.7% for the full year. If we excluded Link Plaza Songquan Chan in Beijing, where we're undertaking significant refurbishment and asset enhancement works, rental reversion across the balance of our shopping centres in mainland China is strong at 7.6%. In February last year, as you all know, we acquired the remaining 50% interest in Link Plaza Qibao in Shanghai.

And over the year, we've seen the Chinese consumer spending has remained relatively subdued.

With portfolio performance differing between north and south.

Our southern assets continued to deliver strong results while assets in the north face headwinds amid softer market environment.

Occupancy however remained solid at just under 96% and rental reversion improved from negative three 2% at the half two.

2.7 of 1% for the full year.

If we excluded linked clauses on Sunshine in Beijing, where were undertaking significant refurbishment in asset enhancement works rental reversion across the balance of our shopping centers in mainland China was strong at seven 6%.

In February last year as you all know we acquired the remaining 50% interest in linked Plaza trade balance Shanghai.

And I'm pleased to confirm that we have successfully integrated the assets and a very experienced and incentivize the team to link.

We continue to enhance our mainland portfolio performance through active asset management and significant strategic enhancements across our portfolio.

Craig Trout: I'm pleased to confirm that we've successfully integrated the assets and the very experienced center-based team to Link. We continue to enhance our mainland portfolio's performance through active asset management and significant strategic enhancements across our portfolio. Now we'll move on to our international retail portfolio. We're in Singapore. The 99.6% high occupancy rate shows that there is robust leasing demand from tenants, including new to market overseas retailers, in particular F&B operators. Overall, sustained demand for suburban Singapore retail, in addition to the dominant strategic location of our malls, has delivered strong 17.8% reversion over the period. In Australia, our retail centers there have also sustained near full occupancy at 99%. Productivity was driven by the ongoing introduction of new brands to optimize our trade mix, as well as higher overall footfall and general positive activity in the Sydney CBD, where our three properties are located.

Now, we'll move on to our international reach our portfolio or in Singapore, the 99.6% high occupancy right shows that there is robust leasing demand from tenants, including new to market overseas retailers, and particularly F&B operators.

Overall sustained demand for suburban Singapore right child in.

In addition to the dominant strategic location of our models has delivered strong 17.8% reversion over the period.

In Australia, our retail centers their vocera sustained need full occupancy at 99%.

And productivity was driven by the ongoing introduction of new brands to optimize outright mix as well as higher overall footfall in general positive activity in the Sydney CBD, where our three properties are located.

As a result tenant sales grew at seven 7% year on year, whilst we achieved solid reversion rate on expiring leases at four 3%.

Craig Trout: As a result, tenant sales grew at 7.7% year-on-year, whilst we achieved a solid reversion rate on expiring leases at 4.3%. I'll point out, in addition to these positive trends in Australia, it's important to note the income growth is underpinned by the annual increases contracted in our leases there. This sees us at a weighted average of 4.7% per annum on those leases. Now we'll move on to our international office portfolio, where we have a relatively long WALE of 4.4 years, which underpins the resilience of that portfolio. Speculative fit-outs continue to be well received by small to mid-sized office tenants in the Australian office market to help speed up the leasing process and reduce friction, which supports leasing outcomes and portfolio occupancy.

I'll point out in addition to these positive trends in Australia. It is important to note. The income growth is underpinned by the annual increase is contracted in our leases there and he sees us at a weighted average four 7% per annum on those leases.

And we'll move on to our international office portfolio, where we have a relatively long wale of four four years, which underpins the resilience of that portfolio.

Speculator fit outs continue to be well received by small to mid sized office tenants in the Australian office market to help speed up the leasing process and reduce friction which supports leasing outcomes and portfolio occupancy.

Favorable supply and demand dynamics in the Sydney office market. In particular are also expected to be supportive of leasing activities and further positive net absorption there.

Craig Trout: Favorable supply and demand dynamics in the Sydney office market in particular are also expected to be supportive of leasing activities and further positive net absorption there. This is given limited new supply of floor space in the short to medium term. As for mainland China logistics, thanks to the efforts of our leasing team, the portfolio continued to maintain a high occupancy of 97.4%, with three of our five assets there nearly fully let. I will point out, however, that demand for new space remains relatively mixed. Our project pipelines sit in Hong Kong at HK$2.3 billion for retail projects and RMB 180 million in mainland China for retail projects there. We're always looking to proactively unlock asset value through these programs. Currently, our asset enhancement projects are predominantly tenant-led and are well supported by tenants and are smaller in scale.

This has given limited new supply of floor space in the short to medium term.

As for mainland China logistics, thanks to the efforts of our leasing team the portfolio continued to maintain a high occupancy of 97, 4%.

With three of our five assets they nearly fully less I will point out however that demand for new space remains relatively mixed.

Our project pipelines.

Sitting Hong Kong at $2 3 billion, Hong Kong dollars for retail projects and 180 million renminbi in mainland China for retail projects there.

We're always looking to proactively unlock asset values for these programs and currently our asset enhancement projects are predominantly tenant lids and are well supported by tenants and a smaller in scale.

This year, we also hit a major milestone now with over 3000 public EV charging points across Hong Kong and now 58 solar power systems across Hong Kong.

Craig Trout: This year, we also hit a major milestone, now with over 3,000 public EV charging points across Hong Kong and now 58 solar power systems across Hong Kong. This makes Link the city's largest private provider of public EV charging points and the leading private solar power operator. We're planning to continue to expand our reach and network with further EV locations and solar PV arrays across Hong Kong in the near term. Our active approach to sustainability ensures all initiatives align closely with our business priorities and deliver operational efficiencies. On decarbonization, our ongoing investment in energy saving initiatives has reduced carbon intensity by 21% compared to our 2018-2019 baseline. This has also delivered some HK$8.8 million in energy savings this year alone. On climate resilience, we went beyond protecting our assets to create financial value.

This makes linked the city's largest private provider of public Avi charging points and the leading private solar power off writer.

We're planning to continue to expand our reach and networks with further ewe locations and sell a P V arise across Hong Kong in the near term.

Our active approach to sustainability insurers all initiatives align closely with our business priorities and deliver operational efficiencies.

On decarbonization, our ongoing investment in energy saving initiatives has reduced carbon intensity by 21% compared to our 2018 19 baseline and this is also delivered some $8 8 million Hong Kong dollars in energy savings this year alone.

On climate resilience, we went beyond protecting our assets to create financial value.

Proactively communicating a flood protection efforts efforts to insurers resulted in an 11, 7% reduction in Hong Kong property all risk premiums.

Craig Trout: Proactively communicating our flood protection efforts to insurers resulted in an 11.7% reduction in Hong Kong's property fall risk premiums. With this renewal, we also became the first real estate company in APAC to have sustainability-linked insurance. Next, I'll pass on to George for outlook. Thanks, George.

With this renewal we also became the first real estate company in APAC to have sustainability linked insurance.

Next I'll pass on to George for outlook. Thanks, George.

Thank you Greg.

And here are some of the macro factors from.

Both global and local contexts that impact our business.

George Hongchoy: Thank you, Greg. Here are some of the macro factors from both global and local contexts that impact our business. We expect conditions in Hong Kong and mainland China, where reversions turn negative this year, to be challenging. Nonetheless, I would like to emphasize that there are still some positive developments in our key markets. For instance, the automatic land lease extension in Hong Kong removes uncertainty for landowners, while the mega events in Hong Kong and Singapore are expected to boost tourism and foot traffic. In mainland China, the central government has introduced a series of measures to stabilize financial markets and stimulate consumption, aiming to support economic outlooks. These favorable developments provide some cause for optimism amidst the complex macro outlook. In response to these challenges, we are focused on what is within our control.

We expect conditions in Hong Kong, and mainland, China, where reversion to a negative this year.

To be challenging.

And nonetheless, I would like to emphasize that there are still some positive developments in our key markets.

For instance, the automatic lend lease extension in Hong Kong removes uncertainty for landowners.

While the Mega events in Hong Kong, Singapore expected to boost tourism and foot traffic.

In mainland China, the Central government has introduced a series of measures to stabilize financial markets and stimulate consumption aiming to support economic outlooks. These favorable developments provide some cause for optimism.

Its the complex macro outlook.

In response to these challenges we all focus on what is within our control.

In order to protect unit holders return management has implemented several countermeasures, including operating operational efficiency and cost reduction efforts.

George Hongchoy: In order to protect unitholders' return, management has implemented several countermeasures, including operational efficiency and cost reduction efforts. At the same time, we are keeping a broad vision to identify opportunities for diversification into new assets and geographies. In the longer term, we are cautiously executing our strategy to set the foundation for longer-term growth, and we'll continue to invest with caution into future growth drivers, in particular portfolio optimization and the real estate investment business. Let's revisit our Link 3.0 strategy with a brief update. We previously mentioned that through Link 3.0, we aim to offer a REIT plus investment case to be achieved through portfolio optimization and real estate investment management business growth. These two key drivers under Link 3.0, firstly, to actively manage and diversify our portfolio. We've been proactively looking at recycling and acquisition opportunities in our focus markets of Australia, Singapore, and Japan.

At the same time, we are keeping a broad vision to identify opportunities for diversification into new assets and geographies.

In the longer term we are cautious.

We are cautiously executing our strategy to set the foundation for longer term growth.

And we will continue to invest with caution into future growth drivers in particular portfolio optimization and the real estate investment business.

Let's revisit all linked frequency with strategy with a brief update.

We previously mentioned that prove infrequent zero, we aim to offer a REIT plus investment case.

To be achieved through portfolio optimization, and real estate investment management business growth.

These two key drivers underlying free zero.

Firstly to actively manage and diversify our portfolio.

We've been proactively looking at recycling and acquisition opportunities in our focus markets of Australia, Singapore and Japan at the same time, we'll continue to exercise prudence.

Secondly, we continue to expand the real estate investment.

George Hongchoy: At the same time, we continue to exercise prudence. Secondly, we continue to expand the real estate investment management capability under Link Asset Management Limited to work with and provide services to different capital sources. We are delighted to have officially launched our fund business, Link Real Estate Partners. We will continue to explore a variety of other ways to diversify our source of income and to collaborate with different capital partners, including reviewing opportunities to accelerate the expansion of the real estate investment management business through both organic and inorganic initiatives. I want to touch on remuneration. During the year led by the Remuneration Committee, we've engaged an independent consultant to review our remuneration strategy, and the central emphasis has been to support Link's strategy and further increase the alignment between executive compensation and unitholder interests.

Management capability on the link asset management limited too.

To work with and provide surfaces to different capital sources.

We are delighted to have officially launch our fund business linked real estate partners.

We will continue to explore a variety of other ways to diversify our source of income and to collaborate with different capital partners, including reviewing opportunities to accelerate the expansion of the real estate investment management business.

Both organic and inorganic initiatives.

I want to touch on renew moderation during the year led by the renew Mauritian Committee, we've engaged an independent consultant to review, our renew motion strategy and the central emphasis has been to support.

Link strategy and further increase the alignment between executive compensation and unitholder interests.

Through these process the chair and the committee consulted several long term unit holders. Some in this room with US we are grateful for the constructive feedback and we're committed to enhance the transparency of our new motion scheme.

George Hongchoy: Through this process, the chair and the committee consulted several long-term unitholders, some in this room with us. We are grateful for the constructive feedback, and we are committed to enhance the transparency of our remuneration scheme. You will see further disclosure taking effect of this new plan from 2025, 2026 in our annual report. Let me pass to Ronald for the distribution calendar.

You can see further disclosure I'm taking effect.

These are this new plan from 25 26 in our annual report maybe.

Maybe fossil Ronald for.

The distribution talent.

Thanks, George moving onto our distribution calendar.

Last day off become final dividend is 17th June record days 25th June.

Craig Trout: Thanks, George. Moving on to our distribution calendar. Last day of the cum final dividend is 17th June. Record day is 25th of June. The final date for scrip election is 18th July, and the distribution date is 4th of August. As a reminder, we will be moving to providing quarterly operational updates, which will be uploaded to the stock exchange website. The next update is expected to be in August. Now, we'll open the floor for Q&A. For those attending in person, please raise your hand if you would like to ask a question. For those attending via webcast, you may submit your question using the Q&A function. Please state the name and the company you represent, and may I have the first question? I can see the first one here, Carl. Yeah.

And the final date for scrip election is 18th of July and the distribution date is fourth of August.

As a reminder, we will be moving to providing quarterly operational updates, which will be uploaded to the stock exchange website.

And the next update is expected to be in August.

Now we will now open the floor for Q&A.

For those attending in person. Please raise your hand, if you would like to ask a question.

And for those attending via webcast you may submit your question using the Q&A function.

Please state the name and the company you represent and May I have the first question. So I can see the first one here Carl.

Hi management. Thank you very much 40 are joining opportunity I am Kerr Chen from J P. Morgan.

Two questions. The first question is more on Hong Kong retail. So just curious in terms of tenant sales I think last year. It was down by around 3% for the full year right. If we just compare the fourth quarter and the third quarter. How was the trend is set up better or is it a weakening or similar so.

[Analyst 1]: Hi, management. Thank you very much for the Q&A opportunity. I am Carl Chen from JP Morgan. I have two questions. The first question is more on Hong Kong retail. In terms of tenant sales, I think last year it was down by around 3% for the full year, right? If we just compare the fourth quarter and the third quarter, how was the trend? Is it better or is it weakening or similar? That is on the quarterly tenant sales trend. In terms of rental reversion for the full year, last year it was down by around 2.2%. We recall that in the first half it was up a bit, so it implies that in the second half it might be down by around 4% to 5%. For the next financial year, what is our expectation on the rental reversion?

So that's on the quarterly attendance sales trend and then in terms of rental reversion offer a four year last year. It was down by around two upon to a percentage.

We recall that in the first half it was up a bit so it implies that in the second half it might be down by around like 4% to 5%. So just curious for the next financial year, what's our expectation on a wrench Ob version. If it's negative are what the magnitude will be slightly better than four or 5% or would be this similar so that's my first question.

On Hong Kong retail sales and then the second question is more for him Mr. Joshua <unk> Choi. So you have been with the company for around 15 years right and obviously under your leadership. The company has grown a lot I'm just curious what's your plan in the next few years will have within the company how do you foresee your role in the company. Thank you.

[Analyst 1]: If it is negative, would the magnitude be slightly better than 4% or 5% or would it be dissimilar? That is my first question on Hong Kong retail sales. The second question is more for Mr. George Hongchoy. You have been with the company for around 15 years, right? Obviously, under your leadership, the company has grown a lot. What is your plan in the next few years within the company? How do you foresee your role in the company? Thank you.

Right.

Oh, we will get Greg to answer. The first question gives me time to think about how it wants.

Yeah.

Thanks for being the first off the Mark on publishing the.

George Hongchoy: Right. We'll get Craig to answer the first question. Give me time to think about how to answer your question. Yeah, thanks for being the first off the mark on publishing the report on our results early today.

A report on our results.

Earlier today.

Al just on on tenant sales first we have seen an improvement from the third quarter and the fourth quarter. So that the worst was last year and it's progressively improved over the year.

Craig Trout: Greg, Carl, just on tenant sales first. We have seen an improvement from the third quarter and the fourth quarter. The worst was last year, and it's progressively improved over the year. I will say that there is a lag in terms of what then happens with leasing outcomes. The leasing for us has got progressively worse over the year with regards to the reversion. I think in the current environment with Hong Kong retail sales declining by 7%, for us to deliver negative 2% or thereabouts on reversions is a pretty credible outcome. If you dig a bit deeper, for our shops, the negative reversion was about 1%. For our markets, it was negative 9.5% or thereabouts. Quite a bit of pressure in the fresh markets.

I will say that there is a lag in terms of what then happens with leasing outcomes. So the leasing for US has got progressively worse over the year with regards to the revision I think in the current environment with Hong Kong retail sales declining by 7%.

For us to deliver negative 2% or thereabouts on revisions as it is a pretty critical outcome. If you dig a bit deeper if for our shops. The negative provision was about 1% for a market that was negative nine 5%, there or thereabouts, so quite a bit of pressure in the fresh market.

But probably the most pleasing thing and all of that and the strategy that Gary and Emmanuel who run our leasing and asset management teams here in the room today is preserving occupancy so we've been able to preserve our occupancy at around 98%, which is which is very very good and the absolute sharp focus for us as a management team.

Craig Trout: Probably the most pleasing thing in all of that and the strategy that Gary and Emmanuel, who run our leasing and asset management teams who are in the room today, is preserving occupancy. We have been able to preserve our occupancy at around 98%, which is very, very good and an absolute sharp focus for us as a management team. It feels like retail sales are starting to improve, albeit we're comping very poor timing last year. We have got to put it into perspective. In terms of retail reversion, I don't have my crystal ball with me, but I think it just comes back to the purpose of our portfolio, and that remains unchanged here in Hong Kong.

And it feels like the retail sales are starting to improve it won't be at we're comping very poor.

Timing last year, so we've got to put it into perspective.

In terms of retail reversion I don't have my Crystal ball with me, but.

I think it just comes back to the purpose of our portfolio and that remains unchanged here in Hong Kong, So focusing on food and beverage service and trades that Hong Kong is rely for their daily needs puts us in a pretty enviable position in the strategic locations of our assets is the same thing so I'm not avoiding your question but.

Craig Trout: Focusing on food and beverage, service, and trades that Hong Kong has relied for their daily needs puts us in a pretty enviable position, and the strategic locations of our assets is the same thing. I'm not avoiding your question, but I would suggest that reversions won't turn positive this year. They will be negative this year, and I would suggest they would be low to mid-single digits negative. That would be my best assessment at this point in time. We have started off the year reasonably well, albeit it's still very early days, and the focus for us is retaining tenants. That retention rate that we delivered last year of 80% is a focus. Preserving portfolio occupancy is a focus, and if that comes with some negative reversion, we're prepared for that.

I would suggest that.

Revisions one turn positive this year now that will be negative this year and I would suggest they would be.

Low to mid single digits negative that would be my best assessment at this point in time.

We've started off the year reasonably well.

Albeit it's still very early days and the focus for us is retaining tenants that retention rate that we delivered last year of 80% is a focus preserving portfolio occupancies of focus and if that comes with some negative reversion we're prepared for that.

I Hope Christie have prepare my answer already so.

Ah well time flies when you're having fun. So I think that's the quickest answer I can give to you.

George Hongchoy: I hope Christy has prepared my answers already. Time flies when you're having fun, so I think that's the quickest answer that I can give to you. In terms of good corporate governance, any CEO and the board should be planning succession from the day that the CEO has been appointed. We've been talking about succession every year. The board has a practice of annually doing a CEO mapping. We just completed one recently. That's something that we want to make sure that we understand who are the candidates available externally whenever something happens. We used to say, since we're in Hong Kong, rather than saying the bus, you know, what if the tram ran over me and I couldn't come to work? That's something that we do on a regular basis.

As any oh in terms of good corporate governance, any CEO and the board should be pending secession from the data. The CEO has been appointed and so we've been talking about recession every year.

The board has he it's the practice of our newly doing a C. Youll mapping that we just completed one recently so that's something that we want to make sure that we understand who are the candidates available externally whenever something happens and.

We used to say since we are in Hong Kong violence in the bus Oh, what does the portfolio tram run over me and I Couldnt come to work. It's also that's something that we do on a regular basis having.

Having said that I think the other part which is actually room Houghton for part of this discussion.

Regardless of whether it's just me or not at the end of days. It's teamwork. So what you have seen is a upgrade in the management team that we have done over the last few years I used to be and what we talk about this when when we met you all used to be see your OCI oce Ole and see.

George Hongchoy: Having said that, I think the other part, which is actually very important for part of this discussion, regardless of whether it is me or not, at the end of the day, it's teamwork. What you have seen is an upgrade in the management team that we have done over the last few years. I used to be, and we talked about this when we met, you know, I used to be CEO, CIO, COO, and CXO. Now you have a COO sitting here. You have a CIO sitting on the floor. Not literally on the floor, but we have an expanded team. I think that alone provides a lot of options for the board. When the time comes, it's not a decision by any one party. It's a board, myself, my family, all of that. They might come.

X all and now you have as you're sitting here you see I O sitting on the floor.

And not literally on the floor, but [laughter].

Hmm.

Well, we have an expanded team.

So I think that alone will provide a lot of options with the board and when the time comes you know it's not a position by any one party has a board and myself and my family lives on all of that so that it might come but the key issue is in terms of governance. This is a business as usual.

That you know that we do every year, we just completed that recently reported to the nomination committee will do that.

George Hongchoy: The key issue is in terms of governance, this is a business as usual event and that we do every year. We just completed it recently and reported to the nomination committee. We'll do that as a matter of course anyway. So far, having a lot of fun. Yeah, thanks.

As a matter of course anyway. So so.

So far having a lot of fun. So thanks. Thank.

Thank you. Your next question to be fair, what I'll take one from the right Cindy.

Okay.

I think you said helps me T. This is Cindy from C. T. A straight questions from me if I may the first question yourself future distribution sustainability. So I think at the presentation. You mentioned train Oh, my choice to protect future distribution that'd be challenges and negative emotion, just trying to get more color on it.

Craig Trout: Thank you. Next question. To be fair, why not take one from the right, Cindy.

[Analyst 2]: Thank you for the opportunity. This is Cindy from Citi. Three questions from me, if I may. The first question is on future distribution sustainability. At the presentation, you mentioned trying all measures to protect future distribution given the challenges and negative reversion. I'm just trying to get more color on exactly what measures we are taking for, say, full year 2026 and 2027, the next two years, given all the challenges you have mentioned. Will you be more actively looking for organic measures? I remember last time you mentioned looking for non-rental income. Will you be more actively looking for, say, inorganic growth? This is the first question. The second question is on tenant remixing. I'm just trying to wonder if there's further room to optimize tenant mix in order to cushion the reversion pressure. I think last year, education was actually posting a positive reversion.

Exactly what measures we are taking so say four years did you sakes entities have in next two years given the challenges you have mentioned well you'll be more actively looking for alternative managers I remember last time, you mentioned looking film mountain of intelligent call Oh, we will be more actively looking fairly say organic wellness.

So that's the first question.

Question is down 10, Remixing. So just trying to wonder if there's further room to optimize tenant mix in order to cushion separate version pressure.

I think last year education was actually posting a positive that moshe.

So is there any consideration to maybe Bo side, some underperforming trees and improve some are outperforming why does that introduce more say overseas brands into the portfolio. This is the second question and the second question is only a 20 years anniversary. So just trying to think about if theres more.

[Analyst 2]: Is there any consideration to maybe downsize some underperforming trades and improve some outperforming ones and introduce more, say, overseas brands into the portfolio? This is the second question. The third question is on your 20-year anniversary. I'm just trying to think about if there's more of a long-term new strategic thinking after 20 years of operations. As you say, will you consider any celebration to share the joy with your unitholders? Thank you.

More of a long term new strategic thinking after 20 years of operations and I say well you can see there any celebration of shares that Troy with your unit holders.

[laughter].

Yeah.

Grandfathered at the first two yeah I can talk to just some of the operational efficiency measures with talking to so.

George Hongchoy: Greg, for it.

Pleasingly for the period that we've just spoken to today in Hong Kong, we sent our NPI margin improved from $75 three to $76. Three so that's come with a culmination of a combination I should say of effectors to try and enhance our operational efficiency. We're very fortunate to have a business with significant.

Craig Trout: The first two. Yeah, I can talk to just some of the operational efficiency measures that we're talking to. Pleasingly, for the period that we've just spoken to today in Hong Kong, we've seen our NPI margin improve from 75.3% to 76.3%. That has come with a combination, I should say, of factors to try and enhance our operational efficiency. We're very fortunate to have a business with significant scale here in Hong Kong, and we're continuing with a number of things that I won't talk about today to try and enhance that operating margin. That's a real focus for us. In terms of tenant remixing, what we're finding is that we're retaining about 80% of the tenants that have expiring leases. That gives us an opportunity to introduce new retailers to our portfolio.

Scale here in Hong Kong, and we're continuing with a number of things that I want to talk about today to try and enhance that operating margin. So that's that's a real focus for us in terms of tenant remixing, what we're finding is dash.

One we're retaining about 80% of the tenants that have expiring leases that gives us an opportunity to introduce new retailers to our portfolio. So we've spoken about the 600, new leases that we've written over the period 200 of them are tenants that haven't had shops with us before I think that's a pretty good ratio.

Craig Trout: We've spoken about the 600 new leases that we've written over the period, and 200 of them are tenants that haven't had shops with us before. I think that's a pretty good ratio. I will say, however, that leasing to new tenants comes at a bigger negative reversion than it does from us retaining tenants. What we're seeing is that quite clearly in Hong Kong, when we retain tenants, we get a better outcome on balance than when we're having to lease to new tenants. That doesn't mean that we won't take steps to continue to evolve our tenancy mix and offering. I think with the 200-odd new leases that we've been able to bring in, it allows us to do that. Your other question around overseas retailers, we are seeing a reasonable introduction of new overseas businesses to our portfolio, and most of them are from mainland China.

I will say, however that leasing to new tenants comes at a more a bigger negative reversion than it does for us retaining tenants. So what we're saying is that quite clearly in Hong Kong when we retain tenants, we get a better outcome on balance than when we're having to lease to new 10.

That doesn't mean that we won't take steps to continue to evolve our tenancy mix and offering and I think with the 200 odd new leases that we've been able to bring in.

It allows us to do that.

And your other question around overseas retailers, we are seeing a reasonable introduction of new.

Overseas businesses to our portfolio and most of them are from mainland China I will say in other markets like Singapore. For example, we're seeing a significant number of mainland right Tyler's entering Singapore them with benefiting from that.

Craig Trout: I will say in other markets like Singapore, for example, we're seeing a significant number of mainland retailers entering Singapore, and we're benefiting from that. I don't know if there's anything else you want to add on the distribution piece, George, but probably the most important thing that we're really focused on are those operational efficiencies. I think a big step for us over the last 12 months is enhancing the operating margin here in Hong Kong.

I don't know if there's anything else you want to add on the distribution pace, George but probably the most important thing that we're really focused on are those operational efficiencies and I think a big step for us over the last 12 months is enhancing your operating margin here in Hong Kong.

Yeah.

On slide seven.

A lot of history, a lot of things that we've done over 20 years from 1.0 to zero two what we talk about frequency on.

George Hongchoy: On slide seven, a lot of history, a lot of things that we've done over 20 years, from 1.0, 2.0 to what we talk about, 3.0. This particular description is not really the matter that I think one should focus on, but we've dealt with a lot of cycles. I think we've built a business where the corporate culture, the resilience of the business, the team have been able to deal with a lot of these cycles. Every time when we go through each of these, in the middle of it, we are faced with immense uncertainty. We didn't know when we got out of the protest. We don't know when we got out of GFC or COVID. Again, now we're facing a time where people are saying that there's a lot of uncertainty because of politics and other reasons.

These are particular description is not really the matter.

I think once we focus on but we've dealt with a lot of cycles.

I think we've built a business where the corporate culture.

The resilience of the business the team have been able to deal with a lot of these cycles every time when we go through each of these in the middle of it.

We pay at move we are faced with immense uncertainty we didn't know when we got out of the protest. We don't know when we got all of G. F C or Colbert again now we are facing a time, where people are saying that there was a lot of uncertainty because with politics and other reasons. So I think one of the things that link have done Oh.

Over the years has built a very resilient and set of assets.

George Hongchoy: I think one of the good things that Link has done over the years is build a very resilient set of assets, a very strong balance sheet that can withstand some degree of financial stress. Obviously, if there's a significant market crash, we also need to handle that. We've done a lot of stress tests and scenario planning. Looking ahead on slide 30, we talk about as part of Link 3.0, how we optimize the current portfolio further. Recycling in Hong Kong may be a little bit challenging, but in mainland China and elsewhere, we'll continue to do that. Actively managing it to try and improve the productivity of the balance sheet. At the same time, growing the real estate investment business, and that's something that we can talk about in a bit more detail later on. We will celebrate.

Very strong balance sheet that can withstand.

So.

Some degree of financial stress, Oh, I'll see if there's a significant market crash, we also need to handle that but we've done a lot of stress testing and scenario planning.

Planning and then looking ahead on page on Slide 30, we've talked about as part of linked 3.0, how we optimize the current portfolio further recycling in Hong Kong, maybe a little bit challenging, but you know in mainland China and elsewhere will continue to do that so actively managing it to.

Try and improve the productivity off the balance sheet at the same time growing the real estate investment our business and that's something that we can talk about in more detail later on.

And yeah. We will celebrate is on November 25th when we when we were listed 20 years ago. So.

We managed to find a fair value that is free Luckily so in the mode of cost cutting that's quite important so mark your calendar afternoon of the 24th of November come and have a drink and is this free for you to come and then through to drink will pay for the drink, but the value of Luckily is free.

George Hongchoy: It is on November 25th when we were listed 20 years ago. We managed to find a venue that is free, luckily. In the mode of cost cutting, that's quite important. Mark your calendar afternoon of 25th of November, come and have a drink. It's free for you to come in and to drink. We'll pay for the drink. The venue, luckily, is free. We'll hope to really celebrate the past success. The past is not less important except as a reference for us to really think about how we're going to manage the next cycle. In the midst of that, there's a lot of things that we already talked about. Operating efficiency, cost control, and all those are extremely important for us to deal with this. We are in a high-margin business. When revenue comes down, there's only so much we can do.

And we'll we'll hope to really celebrate the past assess.

The Pos is not less important except as a reference for us to really think about how we go to manage the next cycle.

And in women in the midst of that there's a lot of things that we've already talked about an operating efficiency cost control in all of those are extremely important for us to deal with this we are in a high margin business. So when revenue comes down there's only so much we can.

Do but need to be disciplined in terms of controlling costs.

So that when we rebound we are a strong business, we need to make sure that the team is in place for us to handle yellow when did the new opportunity.

George Hongchoy: There needs to be a discipline in terms of controlling costs so that when we rebound, we are a strong business. We need to make sure that the team is in place for us to handle when the new opportunity comes. How can we at the same time do that, build a team that takes care of new opportunities and at the same time be efficient and be resilient through this cycle? The team's focus is on quite a lot of those ideas. We're happy to discuss more later.

Oh come so how can we at the same time do that built a team that took care of new opportunities and at the same time be fishing and N b be resilient through through the cycle. So the team's focus on quite a lot of those those ideas.

Peter will discuss more later.

Okay Mark.

John John Sorry.

And my mom Mark.

Yeah.

Craig Trout: Okay. John, sorry. Yeah, Mark. Yeah.

Thank you management. This is mark Lange from UBS Ah I called about a I think for your questions. I think the first one who will be more like a housekeeping one I think management you mentioned in this year, we got certain one off items and you're just not sure if you could elaborate.

[Analyst 1]: Thank you, management. This is Mark Leung from UBS. I got about, I think, three questions. The first one will be more like a housekeeping one. I think management, you mentioned in this year we got certain one-off items. Just not sure if you could elaborate what kind of key one-off items and the amounts we should be aware. I think that's the first question. The second question is regarding on the recent logo changes. Could you walk us through what was the rationale for the company logo changes? We recently launched the Link Real Estate Partners. In the long run, how should we think about the corporate structure? There is some news reporting that we may do some spin-off maybe in Singapore. We'd like to hear your thoughts. Last but not least, I think George also mentioned about the cost control.

What kind of key one of items and our models, we should be aware I think desktop first questions and then the second question is just regarding on the resins and logo changes and so could you walk us through.

What was the rationale for the local company local changes and that is D. V residency launched at the language as a partner in the long run how should we think about on the corporate structure. Because I think there are some adding news are reporting that we may do some spinoff maybe in Singapore, we'd like to hear you.

Fourth and last but not least I think Josh you also mentioned that bolster our cost control and from which areas are you.

Wood pulp, obviously pay attention to in terms of cost cutting thank you.

Okay.

[Analyst 1]: From which areas will you mostly pay attention to in terms of cost cutting? Thank you.

So I think if you think about it in our business across the main geography in deed.

George Hongchoy: One-off items. I think if you think about it in our business, across domain geography, and I guess the complexity that we are in now, we do have quite a fair bit of one-off items year to year. Specifically to last year, what we have mentioned publicly is that we have been going through some, I guess, tax clarification in mainland. We ended up in a, I guess, a favorable tax resolution this year. On top of those, one-off items included will be things like deal expenses as we look at deals throughout the year. As an accounting practice, if you consummate the deal, it gets capitalized into the balance sheet. If not, the deal gets aborted, then the expenses need to be expensed off into the P&L.

I guess the complexity that we are in now we do have quite a fair bit of one off items year to year.

Specifically to last year I think what we have mentioned publicly said that we have been going through some I guess takes clarification in mainland and we ended up in a I guess a favorable tax resolution this year.

On top of those one off items included will be things I do expenses as we look at views throughout the year.

In accounting practice if you.

Consumers are due.

It gets kept their license or a balance sheet if not.

Did you get a barter expenses needs to be.

Expand self into the P&L. So it put together I mean, if you wanted to highlight that this year if anything when you put all the numbers together plus and minuses.

A significant number that we wanted to mention to you guys and it's probably in the range of about 100 million.

George Hongchoy: Put together, we wanted to highlight that this year, if anything, when you put all the numbers together, plus and minuses, it's a significant number that we want to mention to you guys. It's probably in the range of about $100 million this year. Perhaps there's just a little bit more, elaborating a little bit more on that. The G&A costs, which include some of the staff costs, each year, if we do well in unit price, then staff cost goes up because the LTI accrual actually goes up. It's a good thing. While that goes up, our investors are actually making more money. There is that alignment. This year, our unit price has gone up 20-odd % year to date. That is reflected in the staff cost increase as well. Let's hope that we'll keep going up, partly because we do want unit price to go up.

Perhaps just a little bit more elaborating a little bit more that E. G.

G&A costs, which include some of the staff costs.

Each year, if we do well in unit price then staff cost goes up because the LTI accrual actually goes up.

So it's a good thing L Y while that goes out.

Our investment to be making more money.

But there is an alignment.

So this year our unit price.

Price has gone up 20 odd percent year to date. So that is reflected in the staff cost increase as well and let's hope that well.

We will keep going up well, partly because we do want you that whole unit price would go up.

We have looked at a number of our inorganic transactions.

And we haven't done any otherwise, we would have announced them and by not doing them. We have to write off the cost and that's what okay. As was mentioned the consultancy and legal costs.

George Hongchoy: We have looked at a number of inorganic transactions, and we haven't done any. Otherwise, we would have announced them. By not doing them, we have to write off the costs. That's what KS was mentioning, the consultancy and the legal costs relating to certain M&A transactions that have not materialized. I want to just expand on that because some of you have asked about the G&A cost going up again on staff costs and the staff costs relating to the number of people that we apply under Link Real Estate Partners.

Relating to certain M&A transaction that has not materialized.

And I want to just expand on that because some of you have asked about the G&A costs going up again on staff costs and the soft costs relating to the number of people that we have high underlying real estate partners.

And there is this choice of building organically, where the staff costs will go up as you built the team in order to come up with the revenue from the fund business.

George Hongchoy: There is this choice of building organically where the staff costs will go up as you build the team in order to come up with the revenue from the fund business, or we do an inorganic transaction where the staff costs will not be seen so much because it will actually be capitalized as goodwill when we buy a platform, right? Obviously, afterwards, we will have the staff costs, but we will have a much higher income. By growing it from scratch, we'll probably have a bigger J-curve for a period of time in order to deliver that business. There is always this strategic discussion whether we do it organically where there's a higher hit on the P&L and deliver that business or do it inorganic where you have a goodwill hit but not a P&L hit to deliver that.

All we do inorganic transaction, where the staff costs will not be seen.

So much because it will actually be capitalized as goodwill when we buy our platform.

Alright, so opposite afterwards, we will have the soft cost, but we will have a much higher income and now by rolling it from scratch.

I'll, probably have a victor J curve for a period of time in order to deliver that.

That business. So there's always a strategic discussion, whether we do it organically, where theres a higher hit on the P&L and deliver that business or do inorganic where you'll have a goodwill hit but not in a P&L hit to.

To deliver that a reason why I want to mention that in order to.

Our unit holder to protect our bottom line, while we have this hit to our P&L with the increased staff cost for the link real estate partner staff. We will also want to look at the efficiency that we can gain by being.

George Hongchoy: A reason why I want to mention that is in order for our unitholder to protect our bottom line, while we have this hit to our P&L with the increased staff costs for the Link Real Estate Partners staff, we also want to look at the efficiency that we can gain by rationalizing the team, improving processes and delaying, etc., and those things to save staff costs from the organic business so that we can actually fund partly, if not as wholly, the building up of the fund management team. Those are some of the trade-offs that we're looking at. I think so far, that's something that we will continue to need to do as we build this business in the coming years. The local change, actually, firstly, I think it's worth saying that it almost costs us nothing.

Rationalizing the team re improving profitably all our processes and de layering et cetera.

Those things to save soft staff costs from the organic business. So that we can actually fun, partly if not as a wholly the building up of the fund management team. So those ourselves the tradeoff that we're looking at and I think so far that that's something that.

We will continue to need to do as we built the specifics in the coming years.

The local change actually firstly, I think it's worth saying that it's almost costs us nothing.

We've done a lot most of it in house, so we didn't pay a <unk> five.

$5 million to change the name back to the same alphabet. So that's important but the key is we actually really haven't changed for 20 years. We are employees of link asset management limited.

George Hongchoy: We've done most of it in-house, so we didn't pay $5 million to change the name back to the same alphabet. That's important. The key is we actually really haven't changed. For 20 years, we are employees of Link Asset Management Limited. We put a logo Link REIT, which is the REIT that we manage. We're actually employees of Link Asset Management Limited. What we would like to do is actually to tell people that we are employees of Link Asset Management Limited. This is the part of the business, part of the functions that we perform. We managed Link REIT for 20 years. We will in the future, through Link Real Estate Partners, which is a 100% subsidiary of Link Asset Management Limited, manage other funds.

But we put a logo link REIT, which is the REIT that we manage.

But we actually employee of Lin asset management limited. So what we would like to do is actually to tell people that we are employee of Lin asset management limited. This is the best that this is the part of the business about part of the functions that we perform well.

We manage link REIT for 20 years, we will go we will in the future.

True Ling real estate partners, which is a 100% subsidiary offering asset management Ltd manage other funds and so we will have multiple vehicles to attract different capital sources to manage and to deliver a fee income deliver a different investment opportunities.

George Hongchoy: We will have multiple vehicles to attract different capital sources to manage and to deliver fee income, deliver different investment opportunities to our unitholders. It is a slight shift of focus. At the end of the day, hopefully, that shift allows people to, when they read our report, when they try to understand us, realize that we are as much a fund manager as much as a REIT since we are stable together, unlike some of our peers in this part of the world. You mentioned spin-offs and all that. We study all sorts of options, C-REITs, S-REITs, A-REITs, buying some platforms, selling assets in portfolio, individual. As we responded in the past, until the deal was done, there's really not much we can talk about because there's so many variations of timing and opportunity. Not much to share.

One of these to our unit holders and so there's a slight niche sites shift of focus but at the end of the.

Hopefully that that shift allow.

People too when you read the I'll report when they untried to understand us realize that we are as much a fund manager as much as a REIT since we are stapled together. Unlike some of our peers in this part of the world.

You mentioned spin offs and in all that we study all sorts of options you know see reeds S. REIT a rights buying some platforms.

Selling assets and portfolio individually as.

As we responded in the Pos until we the deal was done the Sri and not much we can talk about because there's so many variations of our timing and opportunity. So I'm not sure I know you've read an article in Singapore, but that's why it's one of the Hum.

Coming up with one idea.

So the.

George Hongchoy: I know you've read an article in Singapore, but there's one author coming up with one idea. The rationalization that we're doing hopefully will help us to mitigate some of the challenges in terms of cost increase as well and make us a little bit more efficient as we move into the next phase. The focus continues for the portfolio to invest in Asia-Pacific and hopefully the market return for some of the locations for us to do more diversification and recycling.

Rationalization that we are doing hopefully will help us to mitigate some of the challenges in terms of your cost increase as well and make us a little bit more efficient as we move into the next phase do you focus continue for the portfolio to invest in in Asia.

Pacific and hopefully the.

The market returned for some of the location for us to do more diversification in recycling.

Okay.

Okay.

Yeah.

Thank you management. This is Raymond from HSBC I have also three questions. The first question is regarding to the link free Paul Hoelscher Allergies can management provide us the latest update and save for example, what shall we expect the AUN scale of your fund manager.

Craig Trout: Thank you, management. This is Raymond from HSBC. I got also three questions. The first question is regarding to the Link 3.0 strategies. Can management provide us the latest update and say, for example, what should we expect the AUM scale of your fund management business in the next 12 months or sometimes say by 2030 so we can have more sense about the scale going forward? The second question is about financing costs. The company did a very good job in managing financing costs. Should we expect further optimization and improvement in financing costs in the next 12 months' time given the easing or global environment here? The third question is about the asset value. We did see some changes in the asset value recently. Can management comment about the changes or trend of the capitalization rate, or will there be any further compression in value of your asset?

Our business in the next 12 months or sometimes say by 2030. So all we can have more sense about the scale going forward and the second question is about financing costs. So life company did a very good job in managing the financing cost should we expect further optimization improvement in financing costs in the next 12 months.

Given the easing or globally in pharma here.

And the third quadrant is about the asset valued we did see some changes in the asset value reasonably can management comment about our changes or trend other capitalization rate or would there be any theater compression and valued of your asset. Thank you.

Okay.

Okay.

I'll talk about the.

The financing costs.

Craig Trout: Thank you.

I think we have done well the last financial year, I think its part process part the market driving the.

George Hongchoy: I'll talk about the financing costs. I think we have done well the last financial year. I think it's part process, part the market driving the CNH cross-currency swap that gave us a premium. The fact that we were not fully hedged on RMB was a lever that we could play with. As of today, we are broadly and largely hedged across all our overseas assets. That said, the last two or three weeks was a surprise for all of us, considering most of you are working in the banks, how fast the HIBOR has plunged. It all started from, I guess, the U.S. tariff liberation day. Everybody started focusing on U.S. fiscal positions, trade deficits, and suddenly capital started flowing into Hong Kong.

CN hitch cross currency swap they gave us a premium.

And the fact that we were not fully hedge on RMB evils.

Lever that we could play with a subsidiary of broadly and.

Lastly.

Across all our overseas assets.

That's it.

The last two or three weeks was a surprise all of US considering most of you are walking into banks on how fast the high ball has plunged.

And they all started from I guess, the U S tariff Liberation day, everybody stuff focusing on U S visco positions trade deficits and suddenly.

Capital start flowing into Hong Kong and also because of the CR C. A T. L. I feel that everybody is watching and the floor suddenly has picked up very quickly and high boy steep 2.5, and bouncing back up to 641 months.

George Hongchoy: Also, because there was a CATL IPO that everybody was watching, the flow suddenly has picked up very quickly and HIBOR has dipped to 0.5 and bouncing back up to 0.6 for one month. That said, clearly in the short term, and I echo HKMA's warning that it's going to be temporary, that HIBOR be so low and swap offer rate is still hanging at about 2.8, 2.9 for three years. We will benefit because one-third of our $55 billion debt is actually floating, and largely the floating is pegged to one-month HIBOR. I think we have an opportunity, as far as I can see now, that given the structural geopolitics that potentially HIBOR will continue to stay low, but not as low as today. I think that gives Hong Kong itself a great chance.

That said clearly in the short term.

And I Echo hitch Kim is a warning that it's going to be temporary that hi, Bobby So Logan software. It is still hanging in at about 2.8 to nine for three years, and we will benefit because one third of our 55 billion debt is actually floating and lots of philosophy. The floating is pegged to one month.

Hi.

So I think we have the opportunity as far as I can see you know that.

Given the structural geopolitics that potentially.

Hi, ball will continue to stay low, but not as Louis today.

And I think that gets Hong Kong itself.

Good chance and if you look at some of the peers.

Hi, lead yet cause distress level, it's not so high.

And they also has given a boost to the capital markets equity markets and equity options that will be opening up again. So I think overall, it's going to be a year that as of now hopefully we can consume minutes Ruth.

George Hongchoy: If you look at some of the peers who are highly geared, clearly the stress level is not so high. That also has given a boost to the capital markets, equity markets, and equity options start to be opening up again. I think overall it's going to be a year that, as of now, hopefully we can continue to manage risk on the financing. As for the credit margin, I think what we do clearly is run a tight process as usual. We have continuously seen credit margin tightening between a good credit and an average credit and a not-so-good credit borrower. We are probably on the, I guess, a good to better credit borrower. We have seen credit margins continue to be very competitive for us. That said, there's only so much it can compress. We are probably at the marginal end of that credit margin compression.

The financing for the credit margin I think what we do it clearly is a run off type process as usual and we are continuing to see credit margin tightening between a good credit and average credit in the not so good credit.

Borrower and got Bobby on the I guess the.

Better credit or or so we have seen credit margins continued to be very competitive for us.

There's only so much you can compress.

We are probably at the margin and also the credit margin compression.

On devaluation and kept rates.

Greg can you can supplement, but I think what we are seeing as well.

Across the office and logistics portfolio.

George Hongchoy: On the valuation and cap rates, Craig, you can supplement, but I think what we are seeing is across the office and logistics portfolio, rentals are not expected to be going up. If anything, we are still managing a negative rental reversion. On an NPI rental basis determining valuation, I think we will continue to see stress or cap rate expansion for office and logistics. For retail, for Singapore and Australia, we expect things to be flattish. I think things are doing okay. Singapore rental reversion, as we've seen, it's almost 18%. Australia is coming to mid-single digits. I think that's okay. Hong Kong, a bit of stress, I think, from the cash flow basis again. Craig has articulated that rents continue to be slightly on the negative side.

Rentals are not expected to be.

Growing up if anything goes through managing a negative rental reversion. So on a M. P I rental.

Basis determining value.

Evaluation I think you will continue to see stress.

Cap rate expansion for office and logistics.

For retail, forcing up Australia, we expect things to be flattish I think things are doing okay.

Oriental reversion as I've seen them, it's almost 18% Australia is coming to mid single digits. So I think that it's okay.

Hong Kong a bit of stress, adding from the cash flow basis is getting a great.

Greg has articulated that rents continue to be a slightly on the negative side.

We look at cap rates, I think Hong Kong, Singapore, Australia, possibly you are not expecting interest rates to be jumping that faas.

George Hongchoy: If you look at cap rates, I think Hong Kong, Singapore, Australia, possibly we are not expecting interest rates to be jumping that fast. That then supports the cap rate from not expanding and hopefully if there is a chance of compression. The fund management business, Link Real Estate Partners, is up and running. I think that's one point that we can say. There are a lot of legal restrictions for us to say a lot more. Let us under-promise and over-deliver. What I can say is compared to past meetings that we have, we have completed totally all the infrastructure set up, from documents to fund accounting systems to reporting, setting up the FM board, having the investment committee constituted. Everything's done. We're ready, and it is in progress. I don't think we can say a lot more than that.

Same supports it kept route.

Not expanding and hopefully if there is a chance a compression.

The fund management business.

We will say partners are up and running I think that's one point that we can say.

There's a lot of legal restrictions for us to say a lot more let us under promise and over deliver.

But what I can say is compared to pass our meetings that we have.

We have completed totally or the infrastructure set up the from documents, who fun accounting systems, who you know reporting setting up the all of the.

Or having the investment community constituted.

Everything's done.

And so we were ready.

And.

It is in progress.

But I don't think we can say a lot more well more than that.

I think we you know continue.

Continue on that theme of fun on the manage our expectation and under promise over deliver we won't give you a U M.

George Hongchoy: I think we continue on that theme of manage your expectation and under-promise over-deliver. We won't give you an AUM target yet. Sorry, you can't model it yet. I think, you know, once we get to a point where, you know, if we are successful in launching the first fund and you see the momentum, the type of investor who will come with us and the confidence that we will then be able to display to you rather than just talk about it without the concrete result, I think you'll be a lot more confident in the path that we are going. For today, I would rather reserve sharing with you too much detail.

Targets yet.

Sorry, you had more of the woods, yet, but I think you know once we get to a point, where you know if we are susceptible.

First of all in in launching the first fund and you see the momentum the type of Investor will come with us and the confidence that we will then be able to do displays to you.

Rather than just talk about it without a.

Concrete resolved I think it will be a lot more confidence in the path that we are going but I mean for today Oh, rather reserve.

I'm sharing with you too much detail.

Okay any more questions Betsy.

Hi management. This is piracy from DBS. Thank you for taking my question I have three questions. If I may 1st one is mainly on our operational in China I understand that the China Rancho fashion is still under pressure mainly trip I am language.

Craig Trout: Okay. Any more questions? Percy?

[Analyst 2]: Hi, management. This is Percy from DBS. Thank you for taking my question. I have three questions, if I may. First one is mainly on operational in mainland China. I understand that the mainland China rental reversion is still under a bit of pressure, mainly driven by Link Zhongguan Chen. Just wondering, when are we expecting the end of the drag for this property in particular and in general for the rental reversion for other properties in terms of the outlook? Secondly, it's on Reconnect. We saw that the CSRC, they recently reiterated Reconnect again. Just wondering if management can share any colors or insights regarding the timeline or implementation details for us. Thirdly, it's regarding the share buyback. We've seen that Link has done some share buyback, and those shares have been put in as treasury shares.

Glanton just wondering when are we expecting at the end of the track fight. This property in particular and in general If I then ran through innovation for other properties are in terms of the outlook.

And secondly is on <unk> connect how we saw that the a C. S assay. They are recently reiterated a reconnect again.

Just wondering if management can share any colors, our insights regarding the timeline are implementation details for S and sadly al it's regarding the.

The share buyback, we seen that Lange has done some share buyback and dose Harish has been put N S Treasury shares.

I just wanted to know what's management's view regarding how what Hugh.

I men H D shares and the longer time, or if you would even consider to sell these shares. Thank you.

[Analyst 2]: Just want to know what management view regarding how would you manage these shares in the longer term or if you would even consider to sell these shares. Thank you.

I'll talk to the mainland question first person so zone crunch on where the fairway through the repositioning of that asset and it's predominantly these leasing activity.

Craig Trout: I'll talk to the mainland question first, Percy. At Zhongguan Chen, we're a fair way through the repositioning of that asset, and it's predominantly leasing activity. We've seen a new competitor right next door open up its first stage in the last few weeks. Pleasingly, it's very early days, but the impact that we're anticipating from that has been less than we first thought, given the first stage of this project is predominantly food and beverage. We've perversely seen an increase in our footfall since the property opened next door, and the team there is making good progress. I'm hopeful over the course of this year, we will have been able to work through all of the strategies that we've anticipated there at Zhongguan Chen. I will also say that Beijing as a market is very challenging.

We've seen a new competitor right next door open up its first stage in the last few weeks.

Pleasingly.

Sure he early days, but the impact that we're anticipating from Nash.

In less than we first the worse given the first stage of this project is predominantly food and beverage. So we've perversely seen an increase in our footfall since the property opened next door.

And the team there is making good progress some hopefully over the course of this year, we will have been able to.

Work through all of the strategies that we've anticipated there at some crunch on but I will also say that phasing as a market is very challenging of all the markets that we operate in it is very very challenging at a at a consumer level.

For Shanghai is pretty stable and certainly in Shenzhen.

Craig Trout: Of all the markets that we operate in, it is very, very challenging at a consumer level. Shanghai is pretty stable, and certainly in Shenzhen and Guangzhou, we're seeing a much better outlook. Probably the most pleasing thing for me more broadly is ongoing tenant demand in mainland China remains strong from local brands, particularly for leisure sports brands are growing like crazy in mainland China, and we're getting our fair share of that, which is pleasing. I will just close off by saying, as we said during the prepared remarks, if we exclude Zhongguan Chen, we printed positive reversions through the shopping centre portfolio for this year. The same strategy that we're embarking on here in Hong Kong about preserving occupancy remains consistent for us in mainland China as well.

Shenzhen.

In Guangzhou, we're seeing much better outlook.

Probably the most pleasing thing for me more broadly is ongoing tenant demand in mainland China remained strong from local brands.

Kelly for leisure sports brands are growing like crazy in mainland, China, and we're getting our fair share of that which is pleasing and I will just close off by saying if again as we said during the prepared remarks, if we exclude some fund Sean we printed positive revisions through the shopping center portfolio for this year.

Yeah.

And again the same strategy that we're embarking on here in Hong Kong about preserving occupancy remains consistent for us in mainland China as well.

I'm going to contour and when we first invested in it.

Wassa extremely attractive you know it didn't disagree with footfall that doesn't grow old.

George Hongchoy: I think Zhongguan Chen, when we first invested in it, was extremely attractive. It's a district with footfall that doesn't grow old, right? It's very unlike any other shopping mall that we have, partly because it's all universities, students, young people, tech companies all around that area. Since then, you have tech companies laid off. You have New Orient being attacked by the government. They shrunk the business, and they are very close to our mall. We have a competitor next door that didn't perform at all and is now renovating and upgrading. The good thing is there is no new supply. The government is not allowing new supply within the five-ring road, and this is within that area. There is really no new supply except that the mall next door, which was poorly run, is now being upgraded. That gives the competition that Greg mentioned.

Hum.

Unlike any other shopping more that we have.

Partly because it's all university students young people tap companies or around that area.

And then since then you have tech company lay off you have new Oriental being attacked by the Gulf of burden. So these days from their business and they are very close to our more we have a competitor next door that that didn't perform at all and now renovating and upgrading.

The good thing is there is no new supply the government is not allowing the use of five women five ring role in visits within that area. So there is really no new supply except that the more next door, which was poorly run. That's now been upgraded so that that gives the competition that Greg mentioned, but I think there is some stabilized.

Asia and in the Tech sector people are hiring will come back.

And that's where a lot of the software companies are and the University continue to you know.

George Hongchoy: I think there is some stabilization in the tech sector. People who are hiring will come back, and that's where a lot of the software companies are. The university continues to, you know, the attendance hasn't really dropped. Maybe helped by politics that maybe there will be more students at Chinese universities. I think the market has changed since we invested, and hopefully we can manage through this cycle and see it rebound. Reconnect-wise, it has been talked about for a long time. We have no insight when the timing is. I think what we are encouraged by is the comment by CSRC that they started to talk about it. For the longest time, it's SFC Stock Exchange, Hong Kong Stock Exchange talking about it. China has still remained silent. Recently, even the head of CSRC is talking about it. I think the timing is sooner.

You know I don't think the attendance hasn't really dropped and maybe help by politics that maybe there will be more students at the Chinese universities and so I think.

The market have changed since we invested in and hopefully we can manage through this cycle and see it rebound.

<unk> reconnect wise.

It hasn't been talked about for a long time, we have no insight when the timing is but I think what we are encouraged by the comment by C. S. O C is that they started to talk about it for the long assignments SFC stock exchange, the Hong Kong stock exchange talking about.

China have remained silent and then recently <unk>.

Even ahead of C. S. Obviously, you're talking about so I think the timing is sooner.

I think that will increase our liquidity to our stock because I think we traded relatively better than a lot of the sea rates I think we are a attractive proposition as a result, the IR team had actually have done a lot of road show in China, We will actually after this round of resolving the Allison goes.

George Hongchoy: I think that will increase liquidity to our stock because I think we trade relatively better than a lot of the C-REITs. I think we are an attractive proposition. As a result, the IR team has actually done a lot of roadshow in China. We will actually, after this round of result announcement, be going to China as well. We hope that when it eventually comes, we will be benefiting from it. Share buyback?

Into China as well.

So we hope that you all when when it eventually comes it will come.

It will be benefiting from it.

Share buyback.

On the share buyback I think that's a background I'm the last financial year, we bought back about 17 million shares.

Craig Trout: Yep. On the share buyback, I think as a background, the last financial year, we bought back about 17 million shares at about $33 per unit. That amounts to about $550-$570 million. According to the new stock exchange rules, you have the ability to either leave it in treasury or you can cancel it, which was what was the past. Clearly, leaving it in treasury by accounting is eliminated anyway. That gives us the opportunity to hold that in the future if we want. For example, today, there's an acquisition and we want to have a mix of equity option, and that clearly can be taken out because there's actually a gain. I think it's a good thing. It's not new. I think many exchanges have this toolkit for issuers, and Hong Kong was probably a bit late into this. Having this does give us the flexibility.

At about $33 per unit.

And that amounts to about $555 million to $70 million and according to the new stock exchange rules, you have the ability to either leave it in treasury.

Or you can cancel it which was what was the Pos.

Clearly living in Treasury by accounting is eliminated anyway.

It gives us the opportunity to hold that in future.

We wont say for example today is the acquisition to have a mix of equity option and that clearly this can be taken up because it's actually again I'm. So I think it's a good thing it's not new I mean, many exchanges have this this toolkit for issuers in Hong Kong was probably a bit.

Entities by having this does give us that flexibility.

So clearly we will leave it there for now it's not a big number considering the overall scheme of things, but it does give some flexibility for us.

Craig Trout: We'll leave it there for now. It's not a big number considering the overall scheme of things, but it does give a bit of flexibility for us.

Okay. Thanks sure we take just last two questions call here in front of me.

Okay.

Hi.

George Hongchoy: Okay, thanks. Shall we take just last two questions? Carl here in front here. Yeah.

Karl Choi from Bank of America, two questions first Ken can you give a little bit more color on the new Executive management plan, you mentioned, there's going to be a new plan to be implemented any major changes compared to the old plant and then second going back to the cost optimization program. Just wanted to ask if there was any quantitative target that you want.

[Analyst 1]: Hi, Carl Choi from Bank of America. Two questions. First, can you give a little bit more color on the new executive management plan? You mentioned there's going to be a new plan to be implemented. Any major changes compared to the old plan? Second, going back to the cost optimization program, just want to ask if there's any quantitative target that you want to share, whether it's the cost savings sort of amount or whether it's in terms of holding the cost increase to a certain %. Thanks.

To share whether it's the cost savings are sort of amount or whether as to in terms of the holding the cost increase to a certain percentage.

Okay.

As I mentioned the review that's done which we've done on a regular basis I think the last major review was done almost 10 years ago with some minor changes.

George Hongchoy: As I mentioned, the review that's done, which we've done on a regular basis, I think the last major review was done almost 10 years ago with some minor changes during the last 10 years. We just completed a more comprehensive review recently led by the Remuneration Committee with external consultants, a number of meetings with unitholders. I think I want to report probably not fair to just highlight a few key points and miss out others at this forum. You can see a lot more detail in the annual report. I urge you to just wait and look at that in more detail. Suffice to say, there are a few key points and the key principle listed here. One is that we want to ensure that there is a clear alignment of interests between the executive team and our unitholder.

The last 10 years. So we just completed a more comprehensive review recently led by the Remuneration Committee.

With external consulting a number of meetings with our unit holders. So oh, what a what a report probably not not fair to just highlight a few key points and this all others.

This forum, but you can see a lot more detail in the annual reports or urge you to just wait and look at that in more detail suffice to say there are a few key points and the key principle listed here. One is that we want to ensure that there is a clear alignment of interest between the executive team and.

Our unit holder and Ah, we want to increase the.

Disclosure, so that that alignment is clear.

I don't think that it was not aligned properly in the past, but I think disclosure have distorted the picture and I think the disclosure that you will see this year will help you to understand your alignment a lot better so that hopefully is an improvement of some.

George Hongchoy: We want to increase the disclosure so that that alignment is clear. I don't think that it was not aligned properly in the past, but I think disclosure has distorted the picture. I think the disclosure that you will see this year will help you to understand the alignment a lot better. That hopefully is an improvement. Some of the targets have changed. Some of the KPIs have changed. The change really is to make sure that they are indeed more aligned. The long-term incentive plan, we will actually disclose the exact KPIs. They are absolute total unit return and relative total unit return and carbon intensity reduction. Adding a sustainability target is important for us as a business because obviously we have always been a leader in this area. We have a carbon reduction target that we announced many years ago, and we continue to be on that path.

Some of the targets have changed some of the Kpis have changed and the change really to make sure that they are indeed more align the long term incentive plan, we will actually disclose the exact kpis and D. A.

Absolute total unit return and relative total shareholder return and carbon intensity reduction and so adding a sustainability targets is important for us as a business. Because obviously, we will have always been a leader in this area and we have a carbon reduction.

Target that we announced when years ago, and we continue to be on that path.

And then on the short term incentive again, various measurable targets from both our financial results in the Nonfinancial result, based on say a reversion occupancies in and all of that and obviously we have a.

George Hongchoy: On the short-term incentive, again, various measurable targets from both financial results and the non-financial result based on, say, reversion, occupancies, and all that. Obviously, we have a target to launch a fund despite not talking too much about it. That's also one of the targets that we need to achieve. You'll see more details in there and a lot more disclosure. The disclosure that we also have added includes both the numbers relating to grant and numbers relating to the final award at vesting. The confusion in the past is we focus a lot more on the grant, and it's a little bit difficult for you to find the number in the final vesting, although it is somewhere in the report. We just want to make it easier for you by putting it all in two pages rather than all over the report.

<unk> target to launch a fun despite not talking about too much about it. So that's also one of the targets that we need to achieve but you'll see more talk more in more details in there and a lot more disclosure and the disclosure that we also have added.

In crews of the numbers relating to grant.

And numbers related to the final or award.

Testing and the confusion that passes we focus a lot more at the grant and there's a little bit difficult for you to find the number the final vesting. Although it is somewhere in the report and we just wanted to make it easier for you by putting it all into pages rather than all the other report so hopefully that will create a little.

Bit more transparency.

Which we thought we had but it's a little bit difficult to fine and we want to make it easier for our reader. So that's something that you would see so local report first and if there's any question and feedback to come back to us but.

George Hongchoy: Hopefully, that will create a little bit more transparency, which we thought we had, but it's a little bit difficult to find, and we want to make it easier for our reader. That's something that you'll see. Look at the report first, and if there's any question and feedback, do come back to us. It's something that the Remuneration Committee, and you'll see in the report that they've met over 10 times over the last year, a lot of work in order to achieve this result. Hopefully, also with the consultation of some of our unitholders, allow us to have a scheme that will be acceptable to the market. We'll talk more after you've read it.

But it's something that the remuneration committee and you'll see it in the report that they've met over 10 times over the last year a lot of work in order to achieve this result, our hope the auto with the consultation of the universe or some of our unit holders.

Allow us to have a scheme that.

They'll will be acceptable to the market.

Hum.

We'll talk more after you read it.

Okay. I think we have run out of time and this is really burning question.

Otherwise thank you for all your questions and thank you for coming and thank you very much.

Craig Trout: Okay, I think we have run out of time, unless there's a really burning question. Otherwise, thank you for all your questions, and thank you for coming.

[noise] Hello, good afternoon.

George Hongchoy: Thank you very much.

Everyone. So welcome to you all lengths annual report anyway soldier presentation, and Christie director of Investor relationships. So let me introduce a while they have on the stage today. So we'll have our group CEO George Holmes Hi.

[Analyst 2]: Good afternoon, everyone. Welcome to our Link's annual results presentation. I'm Christy, Director of Investor Relations. Let me introduce what we have on the stage today. We have our Group CEO, George Hongchoy, our CFO, Ko Sheng Ng, and our COO, Craig Trout.

Oh, I see I saw Kashi Ooh Ausiello petrol.

N O S T E P L Route Tam.

Now here is our agenda today.

So if you wanted that no our presentation, all our and our announcements you can scan the council yeah, sorry, I guess here for a second if you want to.

Christy Ng: our CCDO, Ronald Tam. Here is our agenda today. If you want to download our presentation or our announcement, you can scan the QR code here. I'll give you a few seconds if you want to. Okay, when you're ready, let's start. Let me hand the floor to George. Thank you.

Yeah.

Okay.

Okay. When you all got why are the less that so let me hand, the thought here our judge Thank you well thank you Christy.

Let me start with this slide which gives you a highlight of the presentation that we'll be giving today.

Amidst a very challenging macro economic environment and serious business challenges in Hong Kong and mainland China.

George Hongchoy: Thank you, Christy. Let me start with this slide, which gives you a highlight of the presentation that we'll be giving today. Amidst a very challenging macroeconomic environment and serious business challenges in Hong Kong and mainland China, I'm happy to report that Link managed to deliver a very solid set of results, which are credit to the whole Link team. We have seen valuations come under pressure, and we expect the environment to continue to be very challenging in the year ahead. Given this, we have initiated a number of efforts aimed at reinforcing our resilience and to protect our DPU. Central to this is a long-term diversification strategy, which has helped us to protect our earnings in recent years and will continue to move forward with this.

I'm happy to report that link managed to deliver a very solid set of results, which are credit to the whole link team.

We have seen valuations come under pressure and we expect the environment to continue to be very challenging in the year ahead.

Given this we have initiated a number of efforts aimed at reinforcing our resilience.

And to protect our D. P U C.

Central to this is a long term diversification strategy, which has helped us to protect our earnings in recent years and will continue to more move forward with this.

As mentioned at the start linked rates result for the financial year solid.

And that reinforce our resilience and in face of this uncertain macro condition and diverse intensified challenges for all of our business.

George Hongchoy: As mentioned at the start, Link REIT's results for the financial year are solid, and that reinforces our resilience in the face of this uncertain macro condition and intensifies the challenges for our business. While we are pleased to be able to deliver another year of growth in distributable income to our unit holder, we've increased 4.6% year-on-year, which would stress that some of the positive contributions are one-off items. We achieved the DPU growth of 3.7% year-on-year. However, the NAV per unit declined 9.6% year-on-year, largely on decreasing asset valuation from cap rate expansion in most markets. We retain a strong financial position, with net gearing at a healthy 21.2%. This, in addition to robust credit ratings and competitive financing costs, provides a solid foundation to navigate the challenges ahead and enables us to capitalize on potential opportunities. We move into business and strategy.

While we are pleased to be able to deliver another year.

Year of growth in distributable income to our unit holder with increase of four 6% year on year, which would stress that some of the positive contributions are one off items.

We achieved the TPU growth of three 7% year on year.

However, the N a b per unit declined nine 6% year on year, largely on decreasing asset valuation from cap rate expansion in most markets.

We retained a strong financial position with net gearing at a healthy 21, 2% and this in addition to robust credit ratings and competitive financing cost provides a solid foundation to navigate the challenges ahead and isn't able us to capitalize on potential opportunities.

<unk>.

Remove into business and strategy.

Lincoln has evolved over the past 20 years with active management and asset recycling to drive growth.

Since 2015, we expanded into mainland, China, Australia, and Singapore, reinforcing all of Australia, It's our diversification strategy and solidified our position as one of Asia's leading property investors and manager.

George Hongchoy: Link has evolved over the past 20 years with active management and asset recycling to drive growth. Since 2015, we expanded into mainland China, Australia, and Singapore, reinforcing our diversification strategy and solidifying our position as one of Asia's leading property investors and managers. A lot has been achieved in these 20 years, but it's only the beginning. We are at an important and exciting pivotal point in Link's development under Link 3.0. You can see from here how the Link REIT portfolio has undergone significant transformation over the years. From the IPO time, our portfolio consisted of 81% retail and 19% car parks, only in Hong Kong. Throughout all these years, we have now transformed into a more diversified portfolio across different geographies and property types.

A lot has been achieved in these 20 years, but there is only the beginning and.

And we are that important and exciting pivotal point in links development underlying 3.0.

You can see from here, how the linked REIT portfolio has undergone significant transformation over the years.

From the IPO time, our portfolio consisted of 81% retail and 19% car parks only in Hong Kong.

And for all these years, we have now transform into a more diversified portfolio across different geographies and property types.

We have consistently shown that we are able to unlock value for our unit holders even during challenging periods such as the global financial crisis, the COVID-19, pandemic and social unrest in Hong Kong.

George Hongchoy: We have consistently shown that we are able to unlock value for our unit holders, even during challenging periods such as the global financial crisis, the COVID-19 pandemic, and social unrest in Hong Kong. Since 2005, we have delivered annualized total return of 10.9%, which outperforms the Hang Seng Index and the Hang Seng Property Index. Our portfolio value has also grown more than fivefold since IPO. The chart shows how the diversification we initiated 10 years ago has enabled us to continue to grow these past few years and become an increasingly sizable portion of our NPI. Looking forward, we'll continue to pursue further portfolio optimization through Link 3.0 strategy, and we will be updating on this in the presentation. Our commitment to value creation is reflected across all aspects of our business, including our asset management capabilities, supported by operational efficiency, community engagement, and innovation.

Since 2005, we have deliver annualized total return of 10, 9% and up which outperform the hang Seng index and the hang Seng property index.

Our portfolio value has also grown more than fivefold since IPO.

The chart shows how the diversification we initiate a 10 years ago has enable us to continue to grow these past few years and become an increasingly sizable portion of our N P. I.

Looking forward, we will continue to pursue further portfolio optimization fooling frequency or strategy and we will be updating on this in the presentation.

Our commitment to value creation is reflected across all aspect of our business, including our asset management capabilities supported by operational efficiency.

Community engagement and innovation.

Proven extra track record and diversify and diverse.

Link REIT portfolio are key drivers for our success and for further detail will refer to the annual report, where we will disclose further.

George Hongchoy: Our proven exit track record and diverse Link REIT portfolio are key drivers for our success. For further detail, we'll refer to the annual report where we'll disclose further. During the year, we undertook several key strategic initiatives to enhance our resilience, and let me highlight a few of these. It was another busy year of portfolio optimization, and we continue to improve operational efficiency. Craig will provide more details in his section. As for the investment management business, we put in place a pan-regional team and infrastructure. The foundations are now fully set for the business. Lastly, through the nomination committee, our appointments to the board were made, including the Chair and INEDs. Let me first pass to Ko Sheng Ng to share with us the financial updates.

During the year, we undertook several key strategic initiatives to enhance our resilience and let me highlight a few of these.

It was another busy year of portfolio optimization, and we continue to improve operational efficiency, Greg will provide more details in his section as for the investment management business, we put in place a pan regional team and infrastructure. The foundations are now fully set for the business.

And lastly, food the nomination committee our appointment to the board, we're making including the chair and I N E DS.

I mean first pass through chaos to share with us the financial updates.

Thank you Josh good afternoon to everyone. Thank you for coming.

We have seen steady growth across our portfolio during the last financial year.

Ko Sheng Ng: Thank you, George. Good afternoon to everyone. Thank you for coming. We have seen steady growth across our portfolio during the last financial year. In Hong Kong, we achieved total growth in revenue and NPI. This was driven by relatively better retail sales and savings in utility expenses. In mainland China, both total revenue and NPI are also up. This was mainly boosted by the full-year contribution of Link Plaza Qibao. On the overseas front, our retail assets in Singapore and Australia recorded nearly full occupancies and positive rental reversions. Our low gearing helped us to keep borrowing costs competitive and weather the storm of valuation declines. I'll come back with more details on capital management and valuation in a while. In this slide, we are showing a simplified version of our P&L.

In Hong Kong, we achieved total growth in revenue and MPI.

This was driven by relatively better retail sales and savings and utility expenses.

In mainland China, both total revenue and MPI are also up.

This was mainly boosted by the full year contribution of Lincoln Plaza to keep up.

On the overseas front all.

Our retail assets in Singapore and Australia.

Nearly four occupancies and positive rental revisions.

A low gearing helped us to keep borrowing cost competitive.

And weather the storm of valuation declines.

I'll come back with more details on capital management and valuation in a while.

In this light we are showing a simplified version of our P&L.

Despite algae, enabling up 19, 5% year on year.

A large part was due to LTI scheme adjustment.

Legal and consulting fees and uncapped the life expenses from exploring M&A abuse.

Ko Sheng Ng: Despite our G&A going up 19.5% year-on-year, a large part was due to LTI scheme adjustment, legal and consultant fees, and uncapitalized expenses from exploring M&A deals. Excluding these items, G&A would have been up 6.9%. Another item to take note would be the net finance cost. The increase was due to the acquisition of Link Plaza Qibao. Excluding such costs, net finance costs decreased by 1.4% due to effective interest rate hedging. Back to valuation, total portfolio value as of March 31, 2025 declined by 4.7%, half on half, mainly due to, firstly, cap rate expansion in Hong Kong and mainland China and FX depreciation against Hong Kong dollar for the overseas. Our robust FX hedging strategy effectively mitigated the extent of the decline in the total value of investment properties in Hong Kong dollar terms. Lastly, capital management.

Excluding these items G&A would have been up six 9%.

Another item to take note will be the net finance cost.

The increase was due to the acquisition of Lincoln Plaza cheaper.

Excluding such costs net finance cost decreased by 1.4% due to effective interest rate hedging.

Back to valuation.

Total portfolio value as of 31st March two zero to five declined by four 7% half on half mainly due to.

Firstly kept very complex expensive expansion in Hong Kong, and mainland, China, and FX depreciation against Hong Kong dollar for the overseas.

Our robust FX hedging strategy effectively mitigate the extent of the decline in the total value of investment properties in Hong Kong dollar terms.

Lastly, capital management, our robust financial position is well supported by a healthy balance sheet.

As shown by the key metrics here.

As of 31st March two zero to five net gearing remains law, while the average borrowing cost will remain competitive.

Ko Sheng Ng: Our robust financial position is well supported by a healthy balance sheet, as shown by the key metrics here. As of March 31, 2025, net gearing remained low, while the average borrowing cost remained competitive. Fixed debt ratio is in the upper range of 50% to 70%, and we'll continue to closely monitor the movement of interest rates. Our financial stability is reinforced through FX risk management, which includes extensive hedging of non-Hong Kong dollar distributable income and overseas assets. Over the financial year, we have been repaying our debt. Debt balance as of March 31, 2025 is reduced to HK$54 billion from HK$60 billion a year ago. Our A ratings from all three credit agencies enable us to secure favorable terms for future funding needs, and we have achieved a lower overall margin in refinancing this year.

Fix that ratio is in the upper range of 50% to 70% and.

And we will continue to closely monitor the movement of interest rates.

All financial stability is reinforced through FX risk management, which includes extensive hedging of non Hong Kong dollar distributable income and overseas assets over.

Over the financial year, we have been repaying our debt.

That balance as of 31st much two zero to five is reduced to 54 billion Hong Kong dollars from 60 billion a year ago.

Our a ratings from all three credit agencies enable us to secure favorable films for future funding needs and we have achieved a lower overall margin in refinancing this year.

Furthermore, we remain well below the key covenant thresholds set by the rating agencies.

This gives us headroom to catch you at acquisitions and other opportunities when needed.

Ko Sheng Ng: Furthermore, we remain well below the key governance thresholds set by the rating agencies. This gives us headroom to capture acquisitions and other opportunities when needed. Let me pass over to Craig for operational highlights. Thank you.

Let me pass over to Greg for operational highlights. Thank you.

Thanks, Chris and good afternoon, everyone.

And I'll start with our Hong Kong retail segment performance first.

We have retail businesses in Hong Kong continued to face market wide challenges intensifying competition rising costs and cross border travel.

Craig Trout: Thanks, KS, and good afternoon, everyone. I'll start with our Hong Kong retail segment performance first. Retail businesses in Hong Kong continue to face market-wide challenges amid intensifying competition, rising costs, and cross-border travel. This has seen total Hong Kong retail sales decline 7% over the period. Portfolio sales for us at Link have declined at a lower rate over the same period at -3%, and this is given our focus on food and non-discretionary trades. Leasing reversions over the period have turned slightly negative for the full year at -2.2%, with ongoing pressures in particular in supermarket and Chinese restaurant categories. Occupancy across our portfolio has remained stable and has been preserved at a very solid 97.8%, which ensures a stable and predictable income stream.

This is seen total Hong Kong retail sales declined 7% over the period.

Portfolio sales for us at link have declined at a lower rate over the same period at negative 3%.

And this is given our focus on food and non discretionary trades.

Leasing revisions over the period of turned slightly negative for the full year at negative two 2% with ongoing pressures in particular in supermarket and Chinese restaurant categories.

Occupancy across our portfolio has remained stable and is being preserved at a very solid 97, 8% and this ensures a stable and predictable income stream.

Hello, This is saying revenue growth of one 5% year on year and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs.

Craig Trout: All of this has seen revenue growth of 1.5% year-on-year, and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs. In response to the evolving market and landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix. For the financial year, we successfully signed over 600 new leases, including the introduction of over 200 new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period. Additionally, we continue to focus on emerging trends, particularly across fast food and food and beverage categories, as well as family entertainment and traditional Chinese medicine clinics, to enrich our offerings and continue to drive improved footfall.

In response to the evolving market landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix.

For the financial year, we successfully signed over 600, new leases, including the introduction of over 200, new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period.

Additionally, we continue to focus on emerging trends.

Particularly across fast food and food and beverage categories as well as family Entertainment and traditional Chinese medicine clinics to enrich our offerings and continue to drive improved footfall.

By strategically managing our deep tenant customer relationships with brands across Hong Kong mainland, China, and Irish National portfolios, we aim to enhance the attractiveness of our retail assets and stay relevant with consumer preferences.

Craig Trout: By strategically managing our deep tenant-customer relationships with brands across Hong Kong, mainland China, and our international portfolios, we aim to enhance the attractiveness of our retail assets and stay relevant with consumer preferences. Now turning to our Hong Kong car park and related businesses, we achieved 1.7% year-on-year revenue increases, mainly due to higher tariffs. During the year, we introduced a new car park management system designed to enhance our operational efficiencies and also maximize utilization. This AI-powered system enables us to pilot systems such as dynamic pricing schemes, as well as the introduction of new products and services. One of those new products is the One Link Pass, which offers a flat monthly rate and allows pass holders to park at hourly bays in designated car parks across Hong Kong. This product has proven to be very popular amongst customers since its recent launch.

Now turning to our Hong Kong car parking related businesses, where we achieved one 7% year on year revenue increases mainly due to higher tariffs.

During the year, we introduced a new car Park management system designed to enhance our operational efficiencies and also maximize utilization.

This AI powered system enables us to pilot system, such as dynamic pricing schemes as well as the introduction of new products and services.

One of those new products is the one linked Pos which offers a flat monthly rice and allows pass holders to park at Ali buys in designated Cowpox across Hong Kong.

This product has proven to be very popular amongst customers since its recent launch.

We will continue to develop innovative products to enhance revenue utilization and increased co packing traffic.

Now I'll move to mainland China retail.

Craig Trout: We'll continue to develop innovative products to enhance revenue, utilization, and increase car parking traffic. Now we'll move to mainland China retail. Over the year, we've seen that Chinese consumer spending has remained relatively subdued, with portfolio performance differing between North and South. Our Southern assets continue to deliver strong results, while assets in the North faced headwinds amid a softer market environment. Occupancy, however, remains solid at just under 96%, and rental reversion improved from negative 3.2% at the half to 0.7% for the full year. If we excluded Link Plaza Zongguan Chan in Beijing, where we're undertaking significant refurbishment and asset enhancement works, rental reversion across the balance of our shopping centres in mainland China is strong at 7.6%. In February last year, as you all know, we acquired the remaining 50% interest in Link Plaza Qibao in Shanghai.

And over the year, we've seen the Chinese consumer spending has remained relatively subdued.

With portfolio performance differing between north and south.

Our southern assets continued to deliver strong results while assets in the north face headwinds amid softer market environment.

Occupancy however remained solid at just under 96% and rental reversion improved from negative three 2% at the half two.

2.7 of 1% for the full year.

If we excluded linked clauses on Sunshine in Beijing, we were undertaking significant refurbishment asset enhancement works rental reversion across the balance of our shopping centers in mainland China is strong at seven 6%.

In February last year as you all know we acquired the remaining 50% interest in link Plaza trade balance Shanghai.

I'm pleased to confirm that we've successfully integrated the assets and the very experienced and incentivize the team to link.

We continue to enhance our mainland portfolio performance through active asset management and significant strategic enhancements across our portfolio.

Craig Trout: I'm pleased to confirm that we've successfully integrated the assets and a very experienced center-based team to Link. We continue to enhance our mainland portfolio's performance through active asset management and significant strategic enhancements across our portfolio. Now we'll move on to our international retail portfolio, where in Singapore, the 99.6% high occupancy rate shows that there is robust leasing demand from tenants, including new to market overseas retailers, in particular F&B operators. Overall, sustained demand for suburban Singapore retail, in addition to the dominant strategic location of our malls, has delivered strong 17.8% reversion over the period. In Australia, our retail centers there have also sustained near full occupancy at 99%. Productivity was driven by the ongoing introduction of new brands to optimize our trade mix, as well as higher overall footfall and general positive activity in the Sydney CBD, where our three properties are located.

Now, we'll move on to our international rates how portfolio, we're in Singapore, the 99.6% high occupancy right shows that there is robust leasing demand from tenants, including new to market overseas retailers in particularly F&B operators.

Overall sustained demand for suburban Singapore right child.

In addition to the dominant strategic location about models as delivered strong 17.8% reversion over the period.

In Australia, our retail centers their votes sustained need full occupancy at 99%.

And productivity was driven by the ongoing introduction of your brands to optimize our trade mix as well as higher overall footfall in general positive activity in the Sydney CBD, where our three properties are located.

As a result tenant sales grew at seven 7% year on year, whilst we achieved solid reversion rate on expiring leases at four 3%.

Craig Trout: As a result, tenant sales grew at 7.7% year-on-year, whilst we achieved a solid reversion rate on expiring leases at 4.3%. I'll point out, in addition to these positive trends in Australia, it's important to note the income growth is underpinned by the annual increases contracted in our leases there. This sees us at a weighted average 4.7% per annum on those leases. Now we'll move on to our international office portfolio, where we have a relatively long WALE of 4.4 years, which underpins the resilience of that portfolio. Speculative fit-outs continue to be well received by small to mid-sized office tenants in the Australian office market to help speed up the leasing process and reduce friction, which supports leasing outcomes and portfolio occupancy.

I'll point out in addition to these positive trends in Australia. It is important to note. The income growth is underpinned by the annual increase is contracted in our leases there.

And this saves us at an weighted average four 7% per annum on those leases.

Now, we'll move onto our international office portfolio, where we have a relatively long wale of four four years, which underpins the resilience of that portfolio.

Speculate fit outs continue to be well received by small to mid size office tenants in the Australia and office market to help speed up the leasing process and reduce friction which supports leasing outcomes and portfolio occupancy.

Favorable supply and demand dynamics in the Sydney office market. In particular are also expected to be supported by leasing activities and further positive net absorption there.

Craig Trout: Favorable supply and demand dynamics in the Sydney office market in particular are also expected to be supportive of leasing activities and further positive net absorption there. This is given limited new supply of floor space in the short to medium term. As for mainland China logistics, thanks to the efforts of our leasing team, the portfolio continued to maintain a high occupancy of 97.4%, with three of our five assets there nearly fully leased. I will point out, however, that demand for new space remains relatively mixed. Our project pipelines sit in Hong Kong at HK$2.3 billion for retail projects and RMB 180 million in mainland China for retail projects there. We're always looking to proactively unlock asset value through these programs. Currently, our asset enhancement projects are predominantly tenant-led and are well supported by tenants and are smaller in scale.

This is given limited new supply of floor space in the short to medium term.

As for mainland China logistics, thanks to the efforts of our leasing team the portfolio continued to maintain a high occupancy of 97, 4%.

With three of our five assets. They are nearly fully less I will point out however, the demand for new space remains relatively mixed.

Our project pipelines.

Sitting Hong Kong at $2 3 billion, Hong Kong dollars for retail projects and 180 million renminbi in mainland China for retail projects there.

We're always looking to proactively unlock asset values for these programs and currently our asset enhancement projects that predominantly tenant lids and are well supported by tenants and a smaller in scale.

This year, we also hit a major milestone now with over 3000 public EV charging points across Hong Kong and now 58 solar power systems across Hong Kong.

Craig Trout: This year, we also hit a major milestone, now with over 3,000 public EV charging points across Hong Kong and now 58 solar power systems across Hong Kong. This makes Link the city's largest private provider of public EV charging points and the leading private solar power operator. We're planning to continue to expand our reach and network with further EV locations and solar PV arrays across Hong Kong in the near term. Our active approach to sustainability ensures all initiatives align closely with our business priorities and deliver operational efficiencies. On decarbonization, our ongoing investment in energy-saving initiatives has reduced carbon intensity by 21% compared to our 2018-2019 baseline. This has also delivered some HK$8.8 million in energy savings this year alone. On climate resilience, we went beyond protecting our assets to create financial value.

This makes linked the city's largest private provider of public Avi charging points and the leading private solar power operator.

We're planning to continue to expand our reach and networks with further ewe locations in solar PV arise across Hong Kong in the near term.

Our active approach to sustainability insurers all initiatives align closely with our business priorities and deliver operational efficiencies.

On decarbonization, our ongoing investment in energy saving initiatives has reduced carbon intensity by 21% compared to our 2018 19 baseline and this is also delivered some $8 8 million Hong Kong dollars in energy savings this year alone.

On climate resilience, we went beyond protecting our assets to create financial value.

Proactively communicating a flood protection efforts efforts to insurers resulted in an 11.7% reduction in Hong Kong property for risk premiums.

Craig Trout: Proactively communicating our flood protection efforts to insurers resulted in an 11.7% reduction in Hong Kong's property fall risk premiums. With this renewal, we also became the first real estate company in APAC to have sustainability-linked insurance. Next, I'll pass on to George for outlook. Thanks, George.

With this renewal we also became the first real estate company in APAC to have sustainability linked insurance.

Next I'll pass on to George for outlook. Thanks, George.

Thank you Greg.

And here are some of the macro factors from both.

Both global and local contexts that impact our business.

George Hongchoy: Thank you, Greg. Here are some of the macro factors from both global and local contexts that impact our business. We expect conditions in Hong Kong and mainland China, where reversions turn negative this year, to be challenging. Nonetheless, I would like to emphasize that there are still some positive developments in our key markets. For instance, the automatic land lease extension in Hong Kong removes uncertainty for landowners, while the mega events in Hong Kong and Singapore are expected to boost tourism and foot traffic. In mainland China, the central government has introduced a series of measures to stabilize financial markets and stimulate consumption, aiming to support economic outlooks. These favorable developments provide some cause for optimism amidst the complex macro outlook. In response to these challenges, we are focused on what is within our control.

We expect conditions in Hong Kong mainland, China, where reversion to a negative this year.

To be challenging.

And nonetheless, I would like to emphasize that there are still some positive developments in our key markets.

And since the automatic lend lease extension in Hong Kong removes uncertainty for landowners.

While the Mega events in Hong Kong, Singapore expected to boost tourism and foot traffic.

In mainland China, the Central government has introduced a series of measures to stabilize financial markets and stimulate consumption aiming to support economic outlooks. These favorable developments provide some cause for optimism.

Its the complex macro outlook.

In response to these challenges we all focus on what is within our control.

In order to protect unit holders return management has implemented several countermeasures, including operating operational efficiency and cost reduction efforts.

George Hongchoy: In order to protect unit holders' return, management has implemented several countermeasures, including operational efficiency and cost reduction efforts. At the same time, we are keeping a broad vision to identify opportunities for diversification into new assets and geographies. In the longer term, we are cautiously executing our strategy to set the foundation for longer-term growth, and we will continue to invest with caution into future growth drivers, in particular portfolio optimization and the real estate investment business. Let's revisit our Link 3.0 strategy with a brief update. We previously mentioned that through Link 3.0, we aim to offer a REIT plus investment case to be achieved through portfolio optimization and real estate investment management business growth. These two key drivers under Link 3.0, firstly, to actively manage and diversify our portfolio. We've been proactively looking at recycling and acquisition opportunities in our focus markets of Australia, Singapore, and Japan.

At the same time, we are keeping a broad vision to identify opportunities for diversification into new assets and geographies.

In the longer term, we are cautious we are cautiously executing our strategy to set the foundation for longer term growth.

And we will continue to invest with caution into future growth drivers in particular portfolio optimization and the real estate investment business.

Let's revisit all linked frequency with strategy with a brief update.

We previously mentioned that prove infrequent zero, we aim to offer a REIT plus investment case.

To be achieved through portfolio optimization, and real estate investment management business growth.

These two key drivers underlying free one zero.

Firstly to actively manage and diversify our portfolio.

We've been proactively looking at recycling and acquisition opportunities in our focus markets of Australia, Singapore and Japan at the same time, we'll continue to exercise prudence.

Secondly, we continue to expand the real estate investment.

George Hongchoy: At the same time, we continue to exercise prudence. Secondly, we continue to expand the real estate investment management capability under Link Asset Management Limited to work with and provide services to different capital sources. We are delighted to have officially launched our fund business, Link Real Estate Partners. We will continue to explore a variety of other ways to diversify our source of income and to collaborate with different capital partners, including reviewing opportunities to accelerate the expansion of the real estate investment management business through both organic and inorganic initiatives. I want to touch on remuneration. During the year, led by the Remuneration Committee, we've engaged an independent consultant to review our remuneration strategy, and the central emphasis has been to support Link's strategy and further increase the alignment between executive compensation and unit holder interests.

Management capability on the link asset management limited too.

To work with and provide surfaces to different capital sources.

We are delighted to have officially launch our fund business linked real estate partners.

We will continue to explore a variety of other ways to diversify our source of income and to collaborate with different capital partners, including reviewing opportunities to accelerate the expansion of the real estate investment management business through both organic and inorganic initiatives.

I want to touch on renew moderation during the year led by the renew Mauritian Committee, we've engaged an independent consultant to review our innovation strategy and the central emphasis has been to support.

<unk> strategy and further increase the alignment between executive compensation and unitholder interests.

Through these process the chair and the committee consulted several long term unit holders. Some are in this room with US we are grateful for the constructive feedback and we're committed to enhance the transparency of our new motion scheme.

George Hongchoy: Through this process, the Chair and the Committee consulted several long-term unit holders, some in this room with us. We are grateful for the constructive feedback, and we are committed to enhance the transparency of our remuneration scheme. You will see further disclosure taking effect of this new plan from 2025, 2026 in our annual report. Let me pass to Ronald for the distribution calendar.

You can see further disclosure I'm taking effect of.

Of these this new plan from 25 26 in our annual report.

And then Fosterville Ronald for.

The distribution talent.

Thanks, George moving onto our distribution calendar.

Last day off become final dividend is 17th June record days 25th June.

Craig Trout: Thanks, George. Moving on to our distribution calendar. Last day of cum final dividend is 17th June. Record day is 25th of June. The final date for scrip election is 18th July, and the distribution date is 4th of August. As a reminder, we will be moving to providing quarterly operational updates, which will be uploaded to the stock exchange website. The next update is expected to be in August. Now, we'll open the floor for Q&A. For those attending in person, please raise your hand if you would like to ask a question. For those attending via webcast, you may submit your question using the Q&A function. Please state the name and the company you represent, and may I have the first question? I think I can see the first one here, Carl. Yeah.

And the final date for scrip election is 18th of July and the distribution date is fourth of August.

As a reminder, we will be moving to providing quarterly operational updates, which will be uploaded to the stock exchange website.

And the next update is expected to be in August.

Now we will now open the floor for Q&A.

Those attending in person. Please raise your hand, maybe you would like to ask a question.

And for those attending via webcast you may submit your question using the Q&A function.

Please state the name and the company you represent and May I have the first question I think that I can see the first one here.

Hi management. Thank you very much 40, a trainee opportunity I am Kerr Chen from J P. Morgan. So I have two questions. The first question is more on Hong Kong retail. So just curious in terms of tenant sales I think last year. It was down by around 3% for the full year right. If we just compare the false.

[Analyst 1]: Hi, management. Thank you very much for the Q&A opportunity. I am Carl Chen from JP Morgan. I have two questions. The first question is more on Hong Kong retail. Just curious, in terms of tenant sales, I think last year it was down by around 3% for the full year, right? If we just compare the fourth quarter and the third quarter, how was the trend? Is it better or is it weakening or similar? That's on the quarterly tenant sales trend. In terms of rental reversion for the full year, last year it was down by around 2.2%. We recall that in the first half it was up a bit, so it implies that in the second half it might be down by around 4% to 5%. Just curious, for the next financial year, what's our expectation on the rental reversion?

Quarter, and a third quarter, how was the trend is set up better or is it a weakening or similar so that's on the quarterly attendance sales trend and then in terms of rental reversion offer a four year last year it was down by around 2%.

Because we have recall that in the first half it was up a bit so it implies that in the second half it might be down by around like 45%. So I was just curious for the next financial year, what's our expectation on the wrench Ob version. If it's negative are what the magnitude will be slightly better than four or 5% or would be this similar so that's my first.

On Hong Kong retail sales and then the second question is more for him Mr. Joshua <unk> Choi. So you have been with the company for around 15 years right and obviously under your leadership. The company has grown a lot I'm just curious what's your plan in the next few years, but within the company how do you foresee your role in the company. Thank you.

[Analyst 1]: If it's negative, would the magnitude be slightly better than 4% or 5% or would it be dissimilar? That's my first question on Hong Kong retail sales. The second question is more for Mr. George Hongchoy. You have been with the company for around 15 years, right? Obviously, under your leadership, the company has grown a lot. Just curious, what's your plan in the next few years within the company? How do you foresee your role in the company? Thank you.

Right.

We will get Greg to answer. The first question gives me time to think about how to answer that.

Thanks for being the first off the Mark on publishing the report on our results earlier.

George Hongchoy: Right. We'll get Craig to answer the first question, give me time to think about how to answer your question. Thanks for being the first off the mark on publishing the report on our results early today.

Earlier today.

I'll just Don on tenant sales first we have seen an improvement from the third quarter and the fourth quarter. So that the worst was last year and it's progressive really improved over the year.

Craig Trout: Carl, just on tenant sales first, we have seen an improvement from the third quarter and the fourth quarter. The worst was last year, and it's progressively improved over the year. I will say that there is a lag in terms of what then happens with leasing outcomes. The leasing for us has got progressively worse over the year with regards to the reversion. I think in the current environment with Hong Kong retail sales declining by 7%, for us to deliver negative 2% or thereabouts on reversions is a pretty credible outcome. If you dig a bit deeper, for our shops, the negative reversion was about 1%. For our markets, it was negative 9.5% or thereabouts. Quite a bit of pressure in the fresh markets.

I will say that there is a lag in terms of what then happens with leasing outcomes. So the leasing for US has got progressively worse over the year with regards to the revision.

I think in the current environment with Hong Kong retail sales declining by 7% for us to deliver negative 2% or thereabouts on revisions Egypt is a pretty credible outcome.

If you dig a bit deeper if our shops the negative revision was about 1% for a market that was negative nine 5% there or thereabouts so quite.

Quite a bit of pressure on the fresh market.

Probably the most pleasing thing and all of that and the strategy that Gary and Emmanuel who run our leasing and asset management teams here in the room today is preserving occupancy so we'd been able to preserve our occupancy at around 98%, which is which is very very good and the absolute sharp focus for us as a management team.

Craig Trout: Probably the most pleasing thing in all of that and the strategy that Gary and Emmanuel, who run our leasing and asset management teams who are in the room today, is preserving occupancy. We have been able to preserve our occupancy at around 98%, which is very, very good and an absolute sharp focus for us as a management team. It feels like retail sales are starting to improve, albeit we're comping very poor timing last year. We have to put it into perspective. In terms of retail reversion, I don't have my crystal ball with me, but I think it just comes back to the purpose of our portfolio, and that remains unchanged here in Hong Kong.

And at what feels like the retail sales are starting to improve it won't be at we're comping very poor timing.

Timing last year, so we've got to put it into perspective.

In terms of retail reversion I don't have my Crystal ball with me, but I.

I think it just comes back to the purpose of our portfolio and that remains unchanged here in Hong Kong, So focusing on food and beverage service and trades that Hong Kong is rely for their daily needs puts us in a pretty enviable position in the strategic locations of our assets is the same thing so I'm not avoiding your question but.

Craig Trout: Focusing on food and beverage, service, and trades that Hong Kong has relied for their daily needs puts us in a pretty enviable position, and the strategic locations of our assets is the same thing. I'm not avoiding your question, but I would suggest that reversions won't turn positive this year. They will be negative this year, and I would suggest they would be low to mid-single digits negative. That would be my best assessment at this point in time. We have started off the year reasonably well, albeit it's still very early days, and the focus for us is retaining tenants. That retention rate that we delivered last year of 80% is a focus. Preserving portfolio occupancy is a focus, and if that comes with some negative reversion, we're prepared for that.

I would suggest that.

Revisions one turn positive this year now that will be.

<unk> this year and I would suggest they would be.

Low to mid single digits negative that would be my best assessment at this point in time.

We've started off the year reasonably well, albeit it's still very early days and the focus for us is retaining tenants that retention rate that we delivered last year of 80% is a focus preserving portfolio occupancies of focus and if that comes with some negative revision we're prepared for that.

I Hope Christie have prepare my answer already so.

Ah well time flies when you're having fun. So I think that's the quickest answer I can give to you.

George Hongchoy: I hope Christy has prepared my answers already. Time flies when you're having fun, so I think that's the quickest answer that I can give to you. In terms of good corporate governance, any CEO and the board should be planning succession from the day the CEO has been appointed. We've been talking about succession every year. The board has a practice of annually doing a CEO mapping, and we just completed one recently. That's something that we want to make sure that we understand who are the candidates available externally whenever something happens. We used to say, since we're in Hong Kong, rather than saying the bus, you know, what if the tram ran over me and I couldn't come to work? That's something that we do on a regular basis.

Hum.

As any oh in terms of good corporate governance, any CEO and the board should be pending secession from the data that the CEO has been appointed and so we've been talking about recession every year. The board has a it's the practice of our newly doing a CEO mapping that we just completed one recently.

So that's something that's who we want to make sure that we understand who are the candidates available externally whenever something happens and we used to say since we are in Hong Kong violence in the bus or what is the preferred route tram run over me and I Couldnt come to work. So so that's something that we do on a regular basis.

Having said that I think the other part which is actually room Houghton for part of this discussion.

Regardless of whether it's just me or not at the end of days. It's teamwork. So what you have seen is a upgrade in the management team that we have done over the last few years.

George Hongchoy: Having said that, I think the other part, which is actually very important for part of this discussion, regardless of whether it is me or not, at the end of the day, it's teamwork. What you have seen is an upgrade in the management team that we have done over the last few years. I used to be, and we talked about this when we met, you know, I used to be CEO, CIO, COO, and CXO. Now you have a COO sitting here, you have a CIO sitting on the floor, and not literally on the floor, but you know, we have an expanded team. I think that alone provides a lot of options for the board. When the time comes, it's not a decision by any one party. It's a board, myself, my family, all of that. They might come.

I used to be.

We joke about this win when we met you all used to be see OCI oce, Ole and see X O and now you have as you're sitting here you see I O sitting on the floor and not literally on the floor, but [laughter], but yeah.

We have an expanded team. So I think that alone will provide a lot of options with the board and when the time comes you know it's not a position by any one party has a board and myself and my family all of that so they might come but the key issue is in terms of governance.

This is a business as usual event and that you know that we do every year. We just completed it recently and reported to the nomination committee will do that as a matter of course anyway. So so.

George Hongchoy: The key issue is in terms of governance, this is a business as usual event and that we do every year. We just completed it recently and reported to the nomination committee. We'll do that as a matter of course anyway. So far, having a lot of fun. Yeah, thanks.

So far having a lot of fun yeah. Thanks. Thank.

Thank you. Your next question to be fair, what I'll take one from the right Cindy.

Okay.

I think you said that's my T. This is Cindy from Citi three questions from me if I may the first question yourself future distribution sustainability. So I think at the presentation, you mentioned train them Oh, my choice to protect future distribution that'd be challenges and negative emotion, just trying to get more color on it.

Craig Trout: Thank you. Next question. To be fair, why don't I take one from the right, Cindy.

[Analyst 2]: Thank you for the opportunity. This is Cindy from Citi. Three questions from me, if I may. The first question is on future distribution sustainability. I think at the presentation, you mentioned trying all measures to protect future distribution of challenges and negative reversion. Just trying to get more color on exactly what measures we are taking for, say, full year 2026 and 2027, next two years, given all the challenges you have mentioned. Will you be more actively looking for organic measures? I remember last time you mentioned looking for non-rental income, or will you be more actively looking for, say, inorganic growth? This is the first question. The second question is on tenant remixing. Just trying to wonder if there's further room to optimize tenant mix in order to cushion the reversion pressure. I think last year, education was actually posting a positive reversion.

Exactly what measures we are taking so say four year tied you sakes entities or the next two years given all the challenges you have mentioned well you'll be more actively looking for organic matter as I remember last time, you mentioned looking so now rental income, although there'll be more actively looking fairly say in organic wellness.

So that's the first question.

Question is down 10, Remixing. So just trying to wonder if there's further room to optimize tenant mix in order to cushion cellular ocean pressure.

I think last year education was actually posting a positive there moshe.

So is there any consideration to maybe bounce like some underperforming trays and improve some are outperforming why does that introduce more say overseas brands into the portfolio. This is the second question and the second question is on your 20 years anniversary. So just trying to think about if theres more.

[Analyst 2]: Is there any consideration to maybe downsize some underperforming trades and improve some outperforming ones and introduce more, say, overseas brands into the portfolio? This is the second question. The third question is on your 20-year anniversary. Just trying to think about if there's more of a long-term new strategic thinking after 20 years of operations. Also, will you consider any celebration that shares the joy with your unitholders? Thank you.

More of a long term new strategic thinking after 20 years of operations and I say well you can see there any celebration of shares that Troy with your unit holders.

[laughter].

Yeah.

Grandfather, Arthur first to Yeah, I can talk to some of the operational efficiency measures with talking to so.

George Hongchoy: Great.

Pleasingly for the period that we've just spoken to today in Hong Kong, we sent our NPI margin improved from $75 three to 76.3. So that's come with a culmination of a combination I should say of effectors to try and enhance our operational efficiency. We're very fortunate to have a business with significant.

Craig Trout: For it?

[Analyst 1]: The first two. Yeah, I can talk to just some of the operational efficiency measures that we're talking to. Pleasingly, for the period that we've just spoken to today in Hong Kong, we've seen our NPI margin improve from 75.3% to 76.3%. That's come with a combination of, I should say, of factors to try and enhance our operational efficiency. We're very fortunate to have a business with significant scale here in Hong Kong, and we're continuing with a number of things that I won't talk about today to try and enhance that operating margin. That's a real focus for us. In terms of tenant remixing, what we're finding is that, one, we're retaining about 80% of the tenants that have expiring leases. That gives us an opportunity to introduce new retailers to our portfolio.

Scale here in Hong Kong, and we're continuing with a number of things that I want to talk about today to try and enhance that operating margin. So that's that's a real focus for us in terms of tenant remixing. What we're finding is dash one we're retaining about 80% of the tenants that have expiring leases that can.

Gives us an opportunity to introduce new retailers to our portfolio.

So we've spoken about the 600, new leases that we've written over the period 200 of them are tenants that haven't had shops with us before I think that's a pretty good ratio.

[Analyst 1]: We've spoken about the 600 new leases that we've written over the period, and 200 of them are tenants that haven't had shops with us before. I think that's a pretty good ratio. I will say, however, that leasing to new tenants comes at a more, a bigger negative reversion than it does from us retaining tenants. What we're seeing is that quite clearly in Hong Kong, when we retain tenants, we get a better outcome on balance than when we're having to lease to new tenants. That doesn't mean that we won't take steps to continue to evolve our tenancy mix and offering. I think with the 200 odd new leases that we've been able to bring in, it allows us to do that.

I will say, however that leasing to new tenants comes at a more a bigger negative reversion than it does for us retaining tenants.

So what we're saying is that quite clearly in Hong Kong when we retain tenants, we get a better outcome on balance than when we're having two leased to new tenants that doesn't mean that we won't take steps to continue to evolve our tenancy mix and offering and I think with the 200 odd new leases that we've been able to bring in.

It allows us to do that.

And your other question around overseas retailers, we are seeing a reasonable introduction of new.

Overseas businesses to our portfolio and most of them are from mainland China.

[Analyst 1]: Your other question around overseas retailers, we are seeing a reasonable introduction of new overseas businesses to our portfolio, and most of them are from mainland China. I will say in other markets like Singapore, for example, we're seeing a significant number of mainland retailers entering Singapore, and we're benefiting from that. I don't know if there's anything else you want to add on the distribution piece, George, but probably the most important thing that we're really focused on are those operational efficiencies. I think a big step for us over the last 12 months is enhancing the operating margin here in Hong Kong.

I'll say in other markets like Singapore for example, we're seeing a significant number of mainland right Tyler's entering Singapore them with benefiting from that I don't know if there's anything else you want to add on the distribution pace, George but probably the most important thing that we're really focused on are those operational efficiencies and I think a big step for us over the last 12 months is enhancing.

The operating margin here in Hong Kong.

Okay.

On slide seven.

A lot of history and a lot of things that we've done over 20 years from 1.0 to zero two what we talk about frequency on.

George Hongchoy: On slide seven, a lot of history, a lot of things that we've done over 20 years, from 1.0, 2.0 to what we talk about, 3.0. These particular descriptions are not really the matter that I think one should focus on, but we've dealt with a lot of cycles. I think we've built a business where the corporate culture, the resilience of the business, the team have been able to deal with a lot of these cycles. Every time when we go through each of these, in the middle of it, we are faced with immense uncertainty. We didn't know when we got out of the protest. We don't know when we got out of GFC or COVID. Again, now we're facing a time where people are saying that there's a lot of uncertainty because of politics and other reasons.

These are particular description is not really the matter.

I think once we focus on but we've dealt with a lot of cycles.

I think we've we've built a business where the corporate culture.

The resilience of the business the team have been able to deal with a lot of these cycles every time when we go through each of these in the middle of it.

We pay at move we are faced with immense uncertainty we didn't know when we got out of the protest. We don't know when we got all of G. F C or Colbert again now we're facing the time, where people are saying that there was a lot of uncertainty because with politics and other reasons. So I think one of the things that link have done Oh.

Over the years has built a very resilient and set of assets a very strong balance sheet that can withstand films.

George Hongchoy: I think one of the good things that Link has done over the years is build a very resilient set of assets, very strong balance sheet that can withstand some degree of financial stress. I will see if there's a significant market crash, we also need to handle that. We've done a lot of stress tests and scenario planning. Looking ahead on slide 30, we talk about as part of Link 3.0, how we optimize the current portfolio further. Recycling in Hong Kong may be a little bit challenging, but in mainland China and elsewhere, we'll continue to do that. Actively managing it to try and improve the productivity of the balance sheet. At the same time, growing the real estate investment business, and that's something that we can talk about in a bit more detail later on. We will celebrate.

Some degree of financial stress or see if there's a significant market crash. We also need to handle that but we've done a lot of stress tests and scenario.

Planning and then looking ahead on page on Slide 30, we will talk about as part of linked 3.0, how we optimize the current portfolio further recycling in Hong Kong, maybe a little bit challenging, but you know in mainland China and elsewhere will continue to do that so actively managing it to.

Try and improve the productivity off the balance sheet at the same time growing the real estate investment our business and that's something that we can talk about in more detail later on.

And yeah, we will celebrate.

Is this on November 25th when we when we were listed 20 years ago. So we managed to find a fair value that is free Luckily.

George Hongchoy: It is on November 25th when we were listed 20 years ago. We managed to find a venue that is free, luckily. In the mode of cost cutting, that's quite important. Mark your calendar afternoon of the 25th of November, come and have a drink. It's free for you to come and drink. We'll pay for the drink. The venue, luckily, is free. We'll hope to really celebrate the past success. The past is not less important except as a reference for us to really think about how we're going to manage the next cycle. In the midst of that, there's a lot of things that we already talked about. Operating efficiency, cost control, and all those are extremely important for us to deal with this. We are in a high margin business. When revenue comes down, there's only so much we can do.

So in the mode of cost cutting that's quite important so mark your calendar afternoon of the 24th of November come and have a drink and is this free for you to come and then through to drink will pay for the drink, but the value of Luckily is free and we'll we'll hope to really celebrate the past assess.

The Pos is not less importantly, except as a reference for us to really think about how we go to manage the next cycle.

And in women in the midst of that there's a lot of things that we've already talked about and operating efficiency cost control in all of those are extremely important for us to deal with this we are in a high margin business. So when revenue comes down there's only so much we can do.

But you know there is need to be disciplined in terms of controlling costs.

So that you know when we rebound we are a strong business, we need to make sure that the team is in place for us to handle yellow when did the new opportunity that Oh come. So how can we at the same time do that built a team that took care of new opportunities and at the same time be for.

George Hongchoy: There needs to be a discipline in terms of controlling costs so that when we rebound, we are a strong business. We need to make sure that the team is in place for us to handle when the new opportunity comes. How can we at the same time do that, build a team that takes care of new opportunities and at the same time be efficient and be resilient through this cycle? The team's focusing on quite a lot of those ideas. We're happy to discuss more later.

<unk>.

And N b be resilient through through the cycle. So the team's focus on quite a lot of those those ideas.

Peter will discuss more later.

Okay Mark.

John John Sorry.

And my mom Mark.

Yeah.

Craig Trout: Okay. John, sorry. Mark, yeah.

Thank you management. This is mark Leung from UBS I've got about a I think for your questions. I think the first one who will be more like a housekeeping one I think management you mentioned in this year, we got certain one off items and you're just not sure if you could elaborate.

[Analyst 3]: Thank you, management. This is Mark Leung from UBS. I got about, I think, three questions. The first one will be more like a housekeeping one. Management, you mentioned in this year we got certain one-off items. Just not sure if you could elaborate what kind of key one-off items and the amounts we should be aware. That's the first question. The second question is regarding the recent logo changes. Could you walk us through what was the rationale for the company logo changes? We recently launched the Link Real Estate Partners. In the long run, how should we think about the corporate structure? There is some news reporting that we may do some spin-off maybe in Singapore. We'd like to hear your thoughts. Last but not least, I think George also mentioned about the cost control.

What kind of key one of items and our models, we should be aware I think that's the first questions and then the second question is just regarding on the resins and logo changes and so could you walk us through.

What was the rationale for the local company local changes and that's S. D V residency launched at the languished a partner in the long run how should we think about on the corporate structure. Because I think there are some adding news are reporting that we may do some spinoff maybe in Singapore, we'd like to hear you.

Fourth and last but not least I think Josh also mentioned that bolster our cost control and from which area are you would hope obviously pay attention to in terms of cost cutting thank you.

One off items.

[Analyst 3]: From which areas will you mostly pay attention to in terms of cost cutting? Thank you.

So I think if you think about it in our business across the main geography indeed.

George Hongchoy: Okay. One-off items. If you think about it, in our business across domain geography and the complexity that we are in now, we do have quite a fair bit of one-off items year to year. Specifically to last year, what we have mentioned publicly is that we have been going through some tax clarification in mainland. We ended up in a favorable tax resolution this year. On top of those, one-off items included will be things like deal expenses as we look at deals throughout the year. As an accounting practice, if you consummate the deal, it gets capitalized into the balance sheet. If not, the deal gets aborted, then the expenses need to be expensed out into the P&L.

Yes, the complexity that we are in now we do have quite a fair bit of one off items year to year.

Specifically to last year I think what we have mentioned publicly is that we have been going through some.

Yes, it takes clarification in mainland and we ended up in a I guess a favorable tax resolution this year.

On top of those one off items included will be things I do expenses as we look at deals throughout the year.

In accounting practice if you.

Consumers are due.

It gets kept their license or a balance sheet if not.

Did you get a barter expenses needs to be expand self into the P&L. So it put together I mean, if you wanted to highlight that this year if anything when you put all the numbers together plus and minuses.

It's a significant number that we want to mention to you guys and it's probably in the range of about 100 million disease.

George Hongchoy: Put together, we wanted to highlight that this year, if anything, when you put all the numbers together, plus and minuses, it's a significant number that we want to mention to you guys. It's probably in the range of about $100 million this year. Perhaps just elaborating a little bit more on that, the G&A costs, which include some of the staff costs, each year, if we do well in unit price, then staff cost goes up because the LTI accrual actually goes up. It's a good thing. While that goes up, our investors are actually making more money. There is that alignment. This year, our unit price has gone up 20% year to date. That is reflected in the staff cost increase as well. Let's hope that will keep going up, partly because we do want unit price to go up.

Perhaps just a little bit more elaborating a little bit more that E. G.

G&A costs, which include some of the staff costs.

Each year, if we do well in unit price then staff cost goes up because the LTI accrual actually goes up.

So it's a good thing L Y while that goes up.

Our investment to be making more money.

But there is an alignment.

So this year our unit price.

Price has gone up 20 odd percent year to date so.

So that is reflected in the staff cost increase as well and let's hope that.

We'll keep going up but partly because we do want you that whole unit price would go up.

We have looked at a number of our inorganic.

Nick transactions and we haven't done any otherwise, we would have announced them and by not doing them. We have to write off the cost and that's what okay. As was mentioned the consultancy and legal costs.

George Hongchoy: We have looked at a number of inorganic transactions, and we haven't done any. Otherwise, we would have announced them. By not doing them, we have to write off the costs. That's what KS was mentioning, the consultancy and the legal costs relating to certain M&A transactions that have not materialized. I want to just expand on that because some of you have asked about the G&A costs going up again on staff costs and the staff costs relating to the number of people that we have hired under Link Real Estate Partners.

Relating to certain M&A transaction that has not materialized and I want to just expand on that because some of you have asked about the G&A costs going up again on staff costs and the soft costs relating to the number of people that we have high underlying real estate partners.

And there is this choice of building organically, where the staff cost will go up as you built the team in order to come up with the revenue from the fund business or.

George Hongchoy: There is this choice of building organically where the staff costs will go up as you build the team in order to come up with the revenue from the fund business, or we do an inorganic transaction where the staff costs will not be seen so much because it will actually be capitalized as goodwill when we buy a platform, right? Obviously, afterwards, we will have the staff costs, but we will have a much higher income. Now, by growing it from scratch, we'll probably have a bigger J-curve for a period of time in order to deliver that business. There's always this strategic discussion whether we do it organically, where there's a higher hit on the P&L and deliver that business, or do it inorganic where you have a goodwill hit but not a P&L hit to deliver that.

All we do our inorganic transaction, where the staff costs will not be seen.

So much because it will actually be capitalized as goodwill when we buy our platform.

So obviously afterwards, we will have the soft cost, but we will have a much higher income and now by rolling It from scratch now, we'll probably have a bigger J curve.

For a period of time in order to deliver that.

That business. So there's always a strategic discussion, whether we do it organically, where theres a higher hit on the P&L and deliver that business or do inorganic where you'll have a goodwill hit but not in a P&L hit to.

To deliver that a reason why I want to mention that in order to.

Our unit holder to protect our bottom line, while we have this hit to our P&L with the increased staff cost for the link real estate partner staff. We will also want to look at the efficiency that we can gain by being.

George Hongchoy: A reason why I want to mention that is in order for our unit holder to protect our bottom line, while we have this hit to our P&L with the increased staff costs for the Link Real Estate Partners staff, we also want to look at the efficiency that we can gain by rationalizing the team, improving processes, and delaying, etc., and those things to save staff costs from the organic business so that we can actually fund partly, if not as wholly, the building up of the fund management team. Those are some of the trade-offs that we're looking at. I think so far, that's something that we will continue to need to do as we build this business in the coming years. The local change actually, firstly, I think it's worth saying that it almost costs us nothing.

Rationalizing the team re improving profitably all our processes and de layering et cetera.

Those things to save soft staff costs from the organic business. So that we can actually fun, partly if not as a wholly the building up of the fund management team. So those ourselves the tradeoff that we're looking at and I think so far that that's something that.

We will continue to need to do as we built the specifics in the coming years.

The local change actually firstly, I think it's worth saying that it's almost costs us nothing.

We've done a lot most of it in house, so we didn't pay a <unk> five.

$5 million to change the name back to the same alphabet. So that's important but the key is we actually really haven't changed for 20 years. We are employees of link asset management limited.

George Hongchoy: We've done most of it in-house, so we didn't pay $5 million to change the name back to the same alphabet. That's important. The key is we actually really haven't changed. For 20 years, we are employees of Link Asset Management Limited. We put a logo Link REIT, which is the REIT that we manage. We're actually employees of Link Asset Management Limited. What we would like to do is actually to tell people that we are employees of Link Asset Management Limited. This is the part of the business, part of the functions that we perform. We managed Link REIT for 20 years. We will in the future, through Link Real Estate Partners, which is a 100% subsidiary of Link Asset Management Limited, manage other funds.

But we put a logo link REIT, which is the REIT that we manage but we actually employee of Lin asset management limited. So what we would like to do is actually to tell people that we are employee of Lin asset management limited. This is the best that this is the part of the business about part of the functions that we put.

Form.

We manage link right for 20 years, we will go we will in the future.

True Ling real estate partners, which is a 100% subsidiary offering asset management Ltd manage other funds and so we will have multiple vehicles to attract different capital sources to a manager to deliver a fee income deliver a different investment opportunities.

George Hongchoy: We will have multiple vehicles to attract different capital sources to manage and to deliver fee income, deliver different investment opportunities to our unit holders. It's a slight shift of focus. At the end of the day, hopefully, that shift allows people to, when they read our report, when they try to understand us, realize that we are as much a fund manager as much as a REIT since we are stable together, unlike some of our peers in this part of the world. You mentioned spin-offs and all that. We study all sorts of options, C-REITs, S-REITs, A-REITs, buying some platforms, selling assets in portfolio, individual. As we responded in the past, until the deal was done, there's really not much we can talk about because there's so many variations of timing and opportunity. Not much to share.

One of these to our unit holders and so there's a slight niche sites shift of focus but at the end of innovate hopefully that that shift allow.

People to when they read the I'll report when they untried to understand us realize that we are as much a fund manager as much as a REIT since we are stapled together. Unlike some of our peers in this part of the world.

You mentioned spin offs and in all that we study all sorts of options L. A C reads S. REIT a rights buying some platforms selling assets and portfolio individually as are.

As we responded in the POS until we the deal was done this re launch we can talk about because there's so many variations of our timing and opportunity. So I'm not much for sure I know you've read an article in Singapore, but that's one that's one of the Hum.

Coming up with one idea.

So the.

George Hongchoy: I know you've read an article in Singapore, but there's one author coming up with one idea. The rationalization that we're doing hopefully will help us to mitigate some of the challenges in terms of costs increase as well and make us a little bit more efficient as we move into the next phase. The focus continues for the portfolio to invest in Asia-Pacific and hopefully the market return for some of the location for us to do more diversification and recycling.

Rationalization that we are doing hopefully will help us to mitigate some of the challenges in terms of cost.

Costs increased as well.

And make us a little bit more efficient as we move into the next phase do you focus continue for the portfolio to invest in in Asia Pacific and hopefully a.

The market returned for some of the location for us to do more diversification in recycling.

Okay.

One of them.

Okay.

Thank you management. This is Raymond from HSBC I have also three questions. The first question is regarding to the link Threep on Oyster allergies can management provide us the latest update and save for example, what should we expect a U M scalp off your fund manager business.

Craig Trout: Thank you, management. This is Raymond from HSBC. I got also three questions. The first question is regarding to the Link 3.0 strategies. Can management provide us the latest update and say, for example, what should we expect the AUM scale of your fund management business in the next 12 months or sometimes say by 2030 so we can have more sense about the scale going forward? The second question is about financing cost. The company did a very good job in managing financing costs. Should we expect further optimization and improvement in financing costs in the next 12 months' time given the easing or global environment here? The third question is about the asset value. We did see some changes in the asset value recently. Can management comment about the changes or trend of the cap rate, or will there be any further compression in value of your asset?

In the next 12 months or sometimes say by 2030. So all we can have more sense about our scale going forward and the second question is about financing cost. So like the company did a very good job in managing the financing cost should we expect further optimization improvement in financing costs in the next 12 months line given the ease.

Zing or globally in pharma here and a third Washington is about the asset valued we did see some changes in the asset value renal fleet can management comment about our changes our trend at a capitalization rate or would there be any theater compression and valued of your asset. Thank you.

Yes.

Okay.

I'll talk about the financing costs.

Craig Trout: Thank you.

I think we have done well the last financial year I think its part process.

George Hongchoy: I'll talk about the financing costs. I think we have done well the last financial year. I think it's part process, part the market driving the CNH cross-currency swap that gave us a premium. The fact that we were not fully hedged on RMB was a lever that we could play with. As of today, we are broadly and largely hedged across all our overseas assets. That said, I guess the last two or three weeks was a surprise for all of us considering most of you are working in the banks, how fast the HIBOR has plunged. It all started from, I guess, the U.S. tariff liberation day. Everybody started focusing on U.S. fiscal positions, trade deficits, and suddenly the capital started flowing into Hong Kong.

The market driving the.

C N hitch cross currency swap they gave us a premium and the fact that we were not fully hedge on RMB was a lever that we can play with a subsidiary of abruptly in la.

Lastly.

Across all our overseas assets.

That's it.

The last two or three weeks was a surprise all of US considering most of you are working in a balance on how fast the high ball has plunged and they all started from I guess the U S tariff Liberation day, everybody stuff focusing on U S visco positions trade deficits and suddenly.

The capital start flowing into Hong Kong and also because of the CR C. A T. L. I feel that everybody is watching and the floor suddenly has picked up very quickly and high boy steep 2.5, and bouncing back up to 641 months.

George Hongchoy: Also because there's a CATL IPO that everybody is watching, the flow suddenly has picked up very quickly and HIBOR has dipped to 0.5 and bouncing back up to 0.6 for one month. That said, clearly in the short term, and I echo HKMA's warning that it's going to be temporary that HIBOR be so low and stop offer rate is still hanging at about 2.8, 2.9 for three years. We will benefit because one-third of our $55 billion debt is actually floating, and largely the floating is pegged to one-month HIBOR. I think we have an opportunity as far as I can see now that given the structural geopolitics that potentially HIBOR will continue to stay low, but not as low as today. I think that gives Hong Kong itself a great chance.

That said clearly in the short term.

And I Echo hitch Kim is a warning days are going to be temporary that hi, Bobby so lube in sort of a residual hanging at about 2.8 to nine for three years, and we will benefit because one third of our 55 billion debt is actually floating and lots of lush lead a floating is pegged to one month.

Highboy.

We have the opportunity as far as I can see you know that.

Given the structural geopolitics, they potentially high ball will continue to stay low, but not as low as today.

And I think that gets Hong Kong itself, a great chance and if you look at some of the peers.

Sure Hi, lead yet cause distress level, it's not so high.

And it also has given a boost to that.

George Hongchoy: If you look at some of the peers who are highly geared, clearly the stress level is not so high. That also has given a boost to the capital markets, equity markets, and equity options start to be opening up again. I think overall it's going to be a year that as of now, hopefully we can continue to manage risk on the financing. For the credit margin, I think what we do clearly is run a tight process as usual, and we have continuously credit margin tightening between a good credit and an average credit and a not-so-good credit borrower. We are probably on the, I guess, a good to better credit borrower. We have seen credit margins continue to be very competitive for us. That said, there's only so much it can compress. We are probably at the marginal end of that credit margin compression.

Capital markets equity markets and equity options that will be opening up again.

So I think overall, it's going to be a year that as of now hopefully we can consume minutes on.

Financing for the credit margin I think what we'd do it clearly is a run off type process as usual and we are continuing to see credit margin tightening between a good credit and average credit and not so good credit.

Borrower and got Bobby on the I guess the.

Better credit or or so we have seen credit margins continue to be very competitive for us, but lets say theres only so much you can compress them are probably at the margin and the credit margin compression.

On devaluation and kept rates.

Greg can you can supplement, but I think what we are seeing is.

Across the office and logistics portfolio rentals are not expected to be.

George Hongchoy: On the valuation and cap rates, Greg, you can supplement, but I think what we are seeing is across the office and logistics portfolio, rentals are not expected to be going up. If anything, we are still managing a negative rental reversion. On an NPI rental basis determining valuation, I think we will continue to see stress or cap rate expansion for office and logistics. For retail, for Singapore and Australia, we expect things to be flattish. I think things are doing okay. Singapore rental reversion, as I've seen, it's almost 18%. Australia is coming to mid-single digits. I think that's okay. Hong Kong, a bit of stress, I think from the cash flow basis again. Craig has articulated that rents continue to be slightly on the negative side.

Going up is there anything just through managing a negative rental reversion. So on a M. P I rental.

Basis determining value.

Evaluation I think you will continue to see stress.

Cap rate expansion for office and logistics.

For retail, forcing up Australia, we expect things to be flattish I think things are doing okay, Singapore rental reversion is a sin, it's almost 18% Australia is coming to mid single digits. So I think that's okay.

Hong Kong a bit of stress, adding from a cash flow basis. This gain great first articulated that rents continue to be a slightly on the negative side, but if you look at cap rates I think Hong Kong, Singapore, Australia, possibly you are not expecting interest rates to be jumping that faas and that same supports it kept route.

George Hongchoy: If you look at cap rates, I think Hong Kong, Singapore, and Australia, possibly we are not expecting interest rates to be jumping that fast. That then supports that cap rate from not expanding and hopefully if there is a chance of compression. The fund management business, Link Real Estate Partners up and running, I think that's one point that we can say. There's a lot of legal restrictions for us to say a lot more. Let us under-promise and over-deliver. What I can say is compared to past meetings that we have, we have completed totally all the infrastructure setup, from documents to fund accounting systems to reporting, setting up the FM board, having the investment committee constituted. Everything's done. We're ready, and it is in progress. I don't think we can say a lot more than that.

Not expanding and hopefully there is a chance of compression.

The fund management business.

We will state partners are up and running I think that's one point that we can say.

There's a lot of legal restrictions for us to say a lot more let us under promise and over deliver.

But what I can say is compared to a Pos meetings that we have.

We have completed totally or the infrastructure set up the from documents to one accounting systems, who you know reporting setting up the all of the or having the investment committee constituted.

Everything's done.

And so we were ready.

And so you know.

It is in progress.

But I don't think we can say a lot more well more than that.

I think we you know continue.

Continue on that theme of fun on the manage our expectation and under promise over deliver we won't give you a U M.

George Hongchoy: I think we continue on that theme of manage your expectation and under-promise, over-deliver. We won't give you an AUM target yet. Sorry, you can't model it yet. I think, you know, once we get to a point where, you know, if we are successful in launching the first fund and you see the momentum, the type of investor who will come with us and the confidence that we will then be able to display to you rather than just talk about it without a concrete result, I think you'll be a lot more confident in the path that we are going. For today, I would rather reserve sharing with you too much detail.

Targets yet.

Sorry, you had modeled it yet, but I think you know once we get to a point, where you know if we are successful in launching the first fund and you see the momentum the type of Investor will come with us and the confidence that we will then be able to do displays to you rather than just talk about.

Oh without a a.

Concrete resolved I think it will be a lot more confidence in the path that we are going but I mean for today Oh, rather reserve.

Sharing with you too much detail.

Okay any more questions Betsy.

Hi management. This is piracy from DBS. Thank you for taking my question I have three questions. If I may 1st one is mainly on our operational in China I understand that the China Rancho fashion is still under pressure, mainly trap I am Lang junk.

Craig Trout: Okay. Any more questions? Percy?

[Analyst 4]: Hi, management. This is Percy from DBS. Thank you for taking my question. I have three questions, if I may. First one is mainly on operational in China. I understand that the China rental reversion is still under a bit of pressure, mainly driven by Link Zhongguan Chen. Just wondering, when are we expecting the end of the drag for this property in particular and in general for the rental reversion for other properties in terms of the outlook? Secondly, it's on Reconnect. We saw that the CSRC, they recently reiterated Reconnect again. Just wondering if management can share any colors or insights regarding the timeline or implementation details for us. Thirdly, it's regarding the share buyback. We've seen that Link has done some share buyback, and those shares have been put in as treasury shares.

Clinton just I'm wondering when are we expecting at the end of the track fight. This property in particular and in general if I then a renter in fashion for other properties are in terms of the outlook and secondly is on <unk> connect how we saw that the C. S. ICD.

Suddenly you reiterated at reconnect again.

Just wondering if management can share any colors, our insights regarding the timeline are implementation details for S and sadly al it's regarding.

The share buyback I always seen that Lange has done some share buyback and dose harish has been put N S Treasury shares.

Just wanted to know what are management feel refining how what Hugh.

Oh man H D shares in the longer term or if you would even consider to sell all these years. Thank you.

[Analyst 4]: Just want to know what management view regarding how would you manage these shares in the longer term or if you would even consider to sell these shares. Thank you.

I'll talk to the mainland question first Percy so it.

It jumped crunch on where the fairway through the repositioning of that asset and that's predominantly the leasing activity.

Craig Trout: I'll talk to the mainland question first, Percy. It's Zhongguan Chen. We're a fair way through the repositioning of that asset, and it's predominantly leasing activity. We've seen a new competitor right next door open up its first stage in the last few weeks. Pleasingly, it's very early days, but the impact that we're anticipating from that has been less than we first thought, given the first stage of this project is predominantly food and beverage. We've perversely seen an increase in our footfall since the property opened next door, and the team there is making good progress. I'm hopeful over the course of this year, we will have been able to work through all of the strategies that we've anticipated there at Zhongguan Chen. I will also say that Beijing as a market is very challenging.

We've seen a new competitor right next door.

Open up its first stage in the last few weeks.

Pleasingly and I can assure early days, but the impact that we're anticipating from Nash has been less than we first the wash them given the first stage of this project is predominantly food and beverage. So we've perversely seen an increase in our football since the property opened next door.

And the team there is making good progress some hopefully over the course of this year, we will have been able to work.

Worked through all of the strategies that we've anticipated there at some crunch on but I will also say that phasing as a market is very challenging of all the markets that we operate in it is very very challenging at a at a consumer level.

For Shanghai is is pretty stable and certainly in Shenzhen and Guangzhou, we're seeing much better outlook I'm.

Craig Trout: Of all the markets that we operate in, it is very, very challenging at a consumer level, whereas Shanghai is pretty stable. Certainly in Shenzhen and Guangzhou, we're seeing a much better outlook. Probably the most pleasing thing for me more broadly is ongoing tenant demand in mainland China remains strong from local brands, particularly for leisure sports brands are growing like crazy in mainland China, and we're getting our fair share of that, which is pleasing. I will just close off by saying, as we said during the prepared remarks, if we exclude Zhongguan Chen, we printed positive reversions through the shopping centre portfolio for this year. The same strategy that we're embarking on here in Hong Kong about preserving occupancy remains consistent for us in mainland China as well.

Probably the most pleasing thing for me more broadly is ongoing tenant demand in mainland China remained strong from local brands.

<unk> third leisure sports brands are growing like crazy in mainland, China, and we're getting our fair share of that which is pleasing and I will close off by saying if again as we said during the prepared remarks, if we exclude some fund Sean we printed positive revisions through the shopping center portfolio for this year.

Yeah.

And again the same strategy that we're embarking on here in Hong Kong about preserving occupancy remains consistent for us in mainland China as well.

Turning to control when we first invested in it.

Wassa extremely attractive you know its a district, where footfall that doesn't grow.

George Hongchoy: I think Zhongguan Chen, when we first invested in it, was extremely attractive. You know, it's a district with footfall that doesn't grow old, right? Very unlike any other shopping mall that we have, partly because it's all university students, young people, tech companies, all around that area. Since then, you have tech companies laid off. You have New Orient being attacked by the government. They shrunk the business, and they are very close to our mall. We have a competitor next door that didn't perform at all and is now renovating and upgrading. The good thing is there is no new supply. The government is not allowing new supply within the five-ring road, and this is within that area. There is really no new supply except that the mall next door, which was poorly run, is now being upgraded. That gives the competition that Greg mentioned.

Unlike any other shopping more that we have.

Partly because it's all university students young people tech companies or around that area and then since then you have tech company lay off you have new Oriental being attacked by the government. So these days some of their business and they are very close to our more we have a competitor next door.

Or that that didn't perform at all and now renovating and upgrading.

The good thing is there is no new supply the government is not allowing news of five women five ring role in visits within that area. So there is really no new supply except that the more next door, which was poorly run. That's now been upgraded so that that gives the competition that Greg mentioned, but I think there is some stabilized.

Asia and in the Tech sector people are hiring will come back and that's where a lot of the software companies are.

George Hongchoy: I think there is some stabilization in the tech sector. People who are hiring will come back, and that's where a lot of the software companies are. The university continues to, you know, the attendance hasn't really dropped. Maybe helped by politics that maybe there will be more students at Chinese universities. I think the market has changed since we invested, and hopefully we can manage through this cycle and see it rebound. Reconnect-wise, it has been talked about for a long time. We have no insight when the timing is. I think what we are encouraged by, the comment by CSRC, is that they started to talk about it. You know, for the longest time, it's SFC Stock Exchange, Hong Kong Stock Exchange talking about it. China has remained silent. Recently, even the head of CSRC is talking about it. I think the timing is sooner.

And the University continue to you know.

The attendance hasn't really dropped and maybe help by politics that maybe there will be more students.

Chinese universities, and so I think.

The market has changed since we invested in and hopefully we can manage through the cycle and see it rebound.

<unk> reconnect wise.

The it hasn't been talked about for a long time, we have no insight when the timing is.

But I think what we are encouraged by the comment by C. S. O. C is that you know that they started to talk about it for the longest time is SFC stock exchange stock Hong Kong stock exchange talking about China have remained silent and then recently even ahead of CSR sheets.

Talking about so I think the timing is sooner.

I think that will increase liquidity to our stock because I think we we traded relatively better than a lot of the sea rights I think we are a attractive proposition as a result, the IR team had actually have done a lot of road show in China, We will actually after this round of resolving the honest when going into China as well.

George Hongchoy: I think that will increase liquidity to our stock because I think we trade relatively better than a lot of the C-REITs. I think we are an attractive proposition. As a result, the IR team has actually done a lot of roadshow in China. We will actually, after this round of result announcement, be going to China as well. We hope that when it eventually comes, we will be benefiting from it. Share buyback? Yeah. On the share buyback, I think as a background, the last financial year, we bought back about 17 million shares at about $33 per unit. That amounts to about $550-$570 million. According to the new stock exchange rules, you have the ability to either leave it in treasury or you can cancel it, which was what was the past. Clearly, leaving in treasury by accounting is eliminated anyway.

<unk>. So we hope that you all when it eventually comes it will cover a will be benefiting from it.

Share buyback.

On the share buyback I think that's a background I'm the last financial year, we bought back about 17 million shares.

At about $33 per unit.

And that amounts to about $555 million to $70 million and according to the new stock exchange rules, you have the ability to either leave it in treasury.

Or you can cancel rate, which was Watson was a Pos and clearly leaving in treasury by accounting is eliminate that anyway, but that gives us the opportunity to hold that in future.

We wont say for example, today is the acquisition of <unk>.

Equity option that clearly this can be taken up because it's actually again I'm.

George Hongchoy: That gives us the opportunity to hold that in the future if we want. For example, today, there's an acquisition and we want to have a mix of equity option, and that clearly can be taken out because there's actually a gain. I think it's a good thing. It's not new. I think many exchanges have this toolkit for issuers, and Hong Kong was probably a bit late into this. Having this does give us the flexibility. We'll leave it there for now. It's not a big number considering the overall scheme of things, but it does give a bit of flexibility for us.

So I think it's a good thing it's not new I mean, many exchanges have this this toolkit for issuers in Hong Kong was probably a bit.

Late into this by having this does give us that flexibility.

So clearly we will leave it there for now it's not a big number considering the overall scheme of things, but it does gives us flexibility for us.

Okay. Thanks, Joey take just last two questions call here in front of me.

Hi.

Craig Trout: Okay, thanks. Shall we take just the last two questions? Carl here in front here. Yeah.

Karl Choi from Bank of America, two questions first Ken can you give a little bit more color on the new Executive management plan, you mentioned, there's going to be a new plan to be implemented any major changes compared to the old plant and then second going back to the cost optimization program. Just wanted to ask if there is any quantitative target that you have.

[Analyst 1]: Hi. Carl Choi from Bank of America. Two questions. First, can you give a little bit more color on the new executive management plan? You mentioned there's going to be a new plan to be implemented. Any major changes compared to the old plan? Second, going back to the cost optimization program, just want to ask if there's any quantitative target that you're willing to share, whether it's the cost savings sort of amount or whether it's in terms of holding the cost increase to a certain %. Thanks.

Wanted to share with a S E cost savings sort of amount or whether it's too in terms of the holding the cost increase to a set of percentage. Thanks.

As I mentioned the review that's done which we've done on a regular basis I think the last major review was done almost 10 years ago with some minor changes during the last 10 years. So are we just completed a more comprehensive review recently led by there.

George Hongchoy: As I mentioned, the review that's done, which we've done on a regular basis, I think the last major review was done almost 10 years ago with some minor changes during the last 10 years. We just completed a more comprehensive review recently led by the remuneration committee with external consultants, a number of meetings with unit holders. I think I want to report probably not fair to just highlight a few key points and miss out others at this forum. You can see a lot more detail in the annual report. I urge you to just wait and look at that in more detail. Suffice to say, there are a few key points and the key principle listed here. One is we want to ensure that there is a clear alignment of interests between the executive team and our unit holder.

Numeration Committee.

With external consulting a number of meetings with our unit holders.

So oh, what a what I'll report, probably not not fair to just highlight a few key points and miss out others.

This forum, but you can see a lot more detail in the annual reports or urge you to just wait and look at that in more detail suffice to say there are a few key points and the key principle listed here. One is that we want to ensure that there is a clear alignment of interests.

I mean, the executive team and our unit holder and Ah, we want to increase the disclosure so that that alignment is clear.

I don't think that it was not aligned properly in the past, but I think disclosure have distorted the picture and I think the disclosure that you will see this year will help you to understand the alignment a lot better so that hopefully is an improvement.

George Hongchoy: We want to increase the disclosure so that that alignment is clear. I don't think that it was not aligned properly in the past, but I think disclosure has distorted the picture. I think the disclosure that you will see this year will help you to understand the alignment a lot better. That hopefully is an improvement. Some of the targets have changed. Some of the KPIs have changed. The change really is to make sure that they are indeed more aligned. The long-term incentive plan, we will actually disclose the exact KPIs. They are absolute total unit return and relative total unit return and carbon intensity reduction. Adding a sustainability target is important for us as a business because obviously we have always been a leader in this area. We have a carbon reduction target that we announced many years ago, and we continue to be on that path.

Some of the targets have changed some of the P. P. I have change and the change really to make sure that they are indeed more align the long term incentive plan, we will actually disclose the exact P. P is and D. A.

Absolute total unit return and relative total unit return and carbon intensity reduction and so adding sustainability target is important for us as a business because there were obviously, we will have always been a leader in this area and we have a carbon reduction.

Target that we announced many years ago, and we continue to be on that path.

And then on the short term incentive again, various measurable targets from both our financial results in the Nonfinancial result, based on say a reversion occupancies in and all of that and oversee we we have a.

George Hongchoy: On the short-term incentive, again, various measurable targets from both financial results and the non-financial result based on, say, reversion, occupancies, and all that. Obviously, we have a target to launch a fund, despite not talking too much about it. That's also one of the targets that we need to achieve. You'll see more details in there and a lot more disclosure. The disclosure that we also have added includes both the numbers relating to grant and numbers relating to the final award at vesting. The confusion in the past is we focus a lot more on the grant, and it's a little bit difficult for you to find the number in the final vesting, although it is somewhere in the report. We just want to make it easier for you by putting it all in two pages rather than all over the report.

<unk> target to launch a fun despite not talking about too much about it. So that's also one of the targets that we need to achieve but you'll see more talk more in more details in there and a lot more disclosure and the disclosure that we also have added.

Inclusive of the numbers relating to grant.

And numbers relating to the final award adversity and the confusion that passes we focus a lot more at the grant and there's a little bit difficult for you to find that number the final vesting. Although it is somewhere in the report and we just wanted to make it easier for you by putting it all in two pages.

Other than all the other report so hopefully that it will create a little bit more transparency.

Which we thought we had but it's a little bit difficult to fine and we want to make it easier for our reader. So that's something that you'll see so local report first and if there's any question and feedback to come back to us.

George Hongchoy: Hopefully, that will create a little bit more transparency, which we thought we had, but it's a little bit difficult to find, and we want to make it easier for our reader. That's something that you'll see. Look at the report first, and if there's any question and feedback, do come back to us. It's something that the remuneration committee, and you'll see in the report that they've met over 10 times over the last year, a lot of work in order to achieve this result. Hopefully, also with the consultation of some of our unit holders, allow us to have a scheme that will be acceptable to the market. We'll talk more after you've read it.

But it's something that the remuneration committee and you'll see it in the report that they've met over 10 times over the last year a lot of work in order to achieve this result, hopefully also with the consultation of the universe or some of our unit holders.

Allow us to have a scheme that.

You all will be acceptable to the market and.

Let's talk more after you read it.

Okay. I think we have run out of time and this is really burning question.

Otherwise thank you for all your questions and thank you for coming and thank you very much.

Craig Trout: Okay, I think we have run out of time, unless there's a really burning question. Otherwise, thank you for all your questions, and thank you for coming.

[noise] Hello, good afternoon.

George Hongchoy: Thank you very much.

One so weapons here a length and you report it plays out.

Anyway, sorry to your presentation and Christie director of Investor relationships. So let me introduce a while they have on the stage today. So we'll have our group CEO George Holmes Hi.

[Analyst 4]: Hello, good afternoon, everyone. Welcome to our Link annual results presentation. I'm Christy, Director of Investor Relations. Let me introduce what we have on the stage today. We have our Group CEO, George Hongchoy, our CFO, Ko Sheng Ng, our COO, Craig Trout, and our CCDO, Ronald Tam. Here is our agenda today. If you want to download our presentation or our announcement, you can scan the QR code here.

Our CFO Costa <unk>.

CLO petrol.

N O S T E P L Route Tam.

Here is our agenda today.

So if you want to download our presentation and our announcements you can scan the cow Coke yeah, sorry, Kathy answer again, if you want to.

Yeah.

Christy Ng: I can hear a few seconds if you want to. Okay, when you're ready, let's start. Let me hand the floor to George. Thank you.

Okay.

Okay. When you all got wide eat less that so let me hand, the thought here our judge Thank you well thank you Christy.

Let me start with this slide which gives you a highlight of the presentation that we will be giving today.

Amidst a very challenging macro economic environment and serious business challenges in Hong Kong and mainland China.

George Hongchoy: All right, thank you, Christy. Let me start with this slide, which gives you a highlight of the presentation that we'll be giving today. Amidst a very challenging macroeconomic environment and serious business challenges in Hong Kong and mainland China, I'm happy to report that Link managed to deliver a very solid set of results, which are credit to the whole Link team. We have seen valuations come under pressure, and we expect the environment to continue to be very challenging in the year ahead. Given this, we have initiated a number of efforts aimed at reinforcing our resilience and to protect our DPU. Central to this is a long-term diversification strategy, which has helped us to protect our earnings in recent years and will continue to move forward with this.

I'm happy to report that link managed to deliver a very solid set of results, which are credit to the whole link team.

We have seen valuations come under pressure and we expect the environment to continue to be very challenging in the year ahead.

Given this we have initiated a number of efforts aimed at reinforcing our resilience to and to protect our GPU.

Central to this is a long term diversification strategy, which has helped us to protect our earnings in recent years and will continue to more move forward with this.

As mentioned at the start linked rates result for the financial year solid.

And that reinforce our resilience and in face of this uncertain macro condition and diverse intensify what's the challenges for all of our business.

George Hongchoy: As mentioned at the start, Link REIT's results for the financial year are solid, and that reinforces our resilience in face of this uncertain macro condition and intensifies the challenges for our business. While we are pleased to be able to deliver another year of growth in distributable income to our unitholder with an increase of 4.6% year on year, we should stress that some of the positive contributions are one-off items. We achieved the DPU growth of 3.7% year on year. However, the NAV per unit declined 9.6% year on year, largely on decreasing asset valuation from cap rate expansion in most markets. We retain a strong financial position with net gearing at a healthy 21.2%, and this, in addition to robust credit ratings and competitive financing costs, provides a solid foundation to navigate the challenges ahead and enables us to capitalize on potential opportunities.

While we are pleased to be able to deliver another year.

Year of growth in distributable income to our unit holder with increase of four 6% year on year, which would stress that some of the positive contributions are one off items.

We achieved the TPU growth of three 7% year on year.

However, they earn a fee per unit declined nine 6% year on year, largely on decreasing asset valuation from cap rate expansion in most markets.

We retain a strong financial position with net gearing at a healthy 21, 2% and this in addition to robust credit ratings and competitive financing cost provides a solid foundation to navigate the challenges ahead and isn't able us to capitalize on potential opportunities.

<unk>.

Remove into business and strategy.

Linkous evolve over the past 20 years with active management and asset recycling to drive growth since 2015, we expanded into mainland, China, Australia, and Singapore, reinforcing all of Australia, It's our diversification strategy and solidified our position.

George Hongchoy: We move into business and strategy. Link has evolved over the past 20 years with active management and asset recycling to drive growth. Since 2015, we expanded into mainland China, Australia, and Singapore, reinforcing our diversification strategy and solidifying our position as one of Asia's leading property investors and managers. A lot has been achieved in these 20 years, but it's only the beginning, and we are at an important and exciting pivotal point in Link's development under Link 3.0. You can see from here how the Link REIT portfolio has undergone significant transformation over the years. From the IPO time, our portfolio consisted of 81% retail and 19% car parks, only in Hong Kong. Throughout all these years, we have now transformed into a more diversified portfolio across different geographies and property types.

<unk> S. One of Asia's leading property investors and manager.

A lot has been achieved in these 20 years, but there is only the beginning and.

And we are that important and exciting pivotal point in links development underlying 3.0.

You can see from here, how the linked REIT portfolio has undergone significant transformation over the years from.

From the IPO time, our portfolio consisted of 81% retail and 19% car parks only in Hong Kong.

And for all these years, we have now transform into a more diversified portfolio across different geographies and property types.

We have consistently shown that we are able to unlock value for our unit holders even during challenging periods such as the global financial crisis, the COVID-19, pandemic and social unrest in Hong Kong.

George Hongchoy: We have consistently shown that we are able to unlock value for our unitholders even during challenging periods such as the global financial crisis, the COVID-19 pandemic, and social unrest in Hong Kong. Since 2005, we have delivered annualized total return of 10.9%, which outperformed the Hang Seng Index and the Hang Seng Property Index. Our portfolio value has also grown more than fivefold since IPO. The chart shows how the diversification we initiated 10 years ago has enabled us to continue to grow these past few years and become an increasingly sizable portion of our NPI. Looking forward, we'll continue to pursue further portfolio optimization through Link 3.0 strategy, and we will be updating on this in the presentation. Our commitment to value creation is reflected across all aspects of our business, including our asset management capabilities supported by operational efficiency, community engagement, and innovation.

Since 2005, we have deliver annualized total return of 10, 9% and up which outperform the hang Seng index and the hang Seng property index.

Our portfolio value has also grown more than fivefold since IPO.

The chart shows how the diversification we initiate a 10 years ago has enable us to continue to grow these past few years and become an increasingly sizable portion of our N P. I.

Looking forward, we'll continue to pursue further portfolio optimization fooling frequency or strategy and we will be updating on this in the presentation.

Our commitment to value creation is reflected across all aspect of our business, including our asset management capabilities supported by operational efficiency.

Community engagement and innovation.

Proven exit track record and diversify and diverse.

Link REIT portfolio are key drivers for our success and for further detail will refer to the annual report, where we will disclose further.

George Hongchoy: Our proven exit track record and diverse Link REIT portfolio are key drivers for our success. For further detail, we'll refer to the annual report where we'll disclose further. During the year, we undertook several key strategic initiatives to enhance our resilience, and let me highlight a few of these. It was another busy year of portfolio optimization, and we continue to improve operational efficiency. Craig will provide more details in his section. As for the investment management business, we put in place a pan-regional team and infrastructure. The foundations are now fully set for the business. Lastly, through the nomination committee, our appointments to the board were made, including the Chair and INEDs. Let me first pass to KS to share with us the financial updates.

During the year, we undertook several.

He said he Egypt initiatives to enhance our resilience and let me highlight a few of these.

It was another busy year on portfolio optimization, and we continue to improve operational efficiency.

Greg will provide more details in his section as for the investment management business, we put in place a pan regional team and infrastructure.

Foundations are now fully set for the business.

And lastly, food the nomination committee our appointment to the board were made including the chair and I N E DS.

I mean first pass through chaos to share with us a financial update.

Thank you Josh good afternoon to everyone. Thank you for coming.

We have seen steady growth across our portfolio during the last financial year.

Ko Sheng Ng: Thank you, George. Good afternoon to everyone. Thank you for coming. We have seen steady growth across our portfolio during the last financial year. In Hong Kong, we achieved total growth in revenue and NPI. This was driven by relatively better retail sales and savings in utility expenses. In mainland China, both total revenue and NPI are also up. This was mainly boosted by the full-year contribution of Link Plaza Qibao. On the overseas front, our retail assets in Singapore and Australia recorded nearly full occupancies and positive rental reversions. Our low gearing helped us to keep borrowing costs competitive and weather the storm of valuation declines. I'll come back with more details on capital management and valuation in a while. In this slide, we are showing a simplified version of our P&L.

In Hong Kong, we achieved total growth in revenue and NPI.

This was driven by relatively better retail sales and savings and utility expenses.

In mainland China, both total revenue and MPI are also up.

This was mainly boosted by the full year contribution of Lincoln Plaza to keep up.

On the overseas front our.

Our retail assets in Singapore and Australia.

Nearly four occupancies and positive rental revisions.

A low gearing helped us to keep borrowing cost competitive.

And weather the storm of valuation declines.

I'll come back with more details on capital management and valuation in a while.

In this light we are showing a simplified version of our P&L.

Despite algae, enabling up 19, 5% year on year.

A large part was due to LTI scheme adjustment.

Legal and consulting fees and uncapped the life expenses from exploring M&A abuse.

Ko Sheng Ng: Despite our G&A going up 19.5% year on year, a large part was due to LPI scheme adjustment, legal and consultant fees, and uncapitalized expenses from exploring M&A deals. Excluding these items, G&A would have been up 6.9%. Another item to take note would be the net finance cost. The increase was due to the acquisition of Link Plaza Qibao. Excluding such costs, net finance costs decreased by 1.4% due to effective interest rate hedging. Back to valuation, total portfolio value as of 31 March 2025 declined by 4.7%, half on half, mainly due to, firstly, cap rate expansion in Hong Kong and mainland China and FX depreciation against Hong Kong dollar for the overseas. Our robust FX hedging strategy effectively mitigated the extent of the decline in the total value of investment properties in Hong Kong dollar terms. Lastly, capital management.

Excluding these items G&A would have been up six 9%.

Another item to take note will be the net finance cost.

The increase was due to the acquisition of Lincoln Plaza Cheapo.

Excluding such costs net finance cost decreased by 1.4% due to effective interest rate hedging.

Back to valuation.

Total portfolio value as of 31st March two zero to five declined by four 7% half on half mainly due to.

Especially kept very complex expensive expansion in Hong Kong, and mainland, China, and FX depreciation against Hong Kong dollar for the overseas.

Our robust FX hedging strategy effectively mitigate the extent of the decline in the total value of investment properties in Hong Kong dollar terms.

Lastly, capital management, our robust financial position is well supported by a healthy balance sheet.

As shown by the key metrics here.

As of 31st March two zero to five net gearing remains law, while the average borrowing cost will remain competitive.

Ko Sheng Ng: Our robust financial position is well supported by a healthy balance sheet, as shown by the key metrics here. As of 31 March 2025, net gearing remained low, while the average borrowing costs remained competitive. Fixed debt ratio is in the upper range of 50 to 70%, and we'll continue to closely monitor the movement of interest rates. Our financial stability is reinforced through FX risk management, which includes extensive hedging of non-Hong Kong dollar distributable income and overseas assets. Over the financial year, we have been repaying our debt. Debt balance as of 31 March 2025 is reduced to HK$54 billion from HK$60 billion a year ago. Our A ratings from all three credit agencies enable us to secure favorable terms for future funding needs, and we have achieved a lower overall margin in refinancing this year.

Fix that ratio is in the upper range of 50% to 70% and.

And we will continue to closely monitor the movement of interest rates.

All financial stability is reinforced through FX risk management, which includes extensive hedging of non Hong Kong dollar distributable income and overseas assets over.

Over the financial year, we have been repaying our debt.

That balance as of 31st much two zero to five is reduced to 54 billion Hong Kong dollars from 60 billion a year ago.

Our a ratings from all three credit agencies enable us to secure favorable films for future funding needs and we have achieved a lower overall margin in refinancing this year.

Furthermore, we remain well below the key covenant thresholds set by the rating agencies.

This gives us headroom to catch you at acquisitions and other opportunities may need it.

Ko Sheng Ng: Furthermore, we remain well below the key governance thresholds set by the rating agencies. This gives us headroom to capture acquisitions and other opportunities when needed. Let me pass over to Greg for operational highlights. Thank you.

Let me pass over to Greg for operational highlights. Thank you.

Thanks, Chris and good afternoon, everyone.

And I'll start with our Hong Kong retail segment performance first.

We have retail businesses in Hong Kong continued to face market wide challenges intensifying competition rising costs and cross border travel.

Craig Trout: Thanks, KS, and good afternoon, everyone. I'll start with our Hong Kong retail segment performance first. Retail businesses in Hong Kong continue to face market-wide challenges amid intensifying competition, rising costs, and cross-border travel. This has seen total Hong Kong retail sales decline 7% over the period. Portfolio sales for us at Link have declined at a lower rate over the same period at -3%, and this is given our focus on food and non-discretionary trades. Leasing reversions over the period have turned slightly negative for the full year at -2.2%, with ongoing pressures in particular in supermarket and Chinese restaurant categories. Occupancy across our portfolio has remained stable and has been preserved at a very solid 97.8%, and this ensures a stable and predictable income stream.

This is seen total Hong Kong retail sales declined 7% over the period.

Portfolio sales for us at link have declined at a lower rate over the same period at negative 3%.

And this has given out focus on food and non discretionary trades.

Leasing revisions over the period of turned slightly negative for the full year at negative two 2% with ongoing pressures in particular in supermarket and Chinese restaurant categories.

Occupancy across our portfolio has remained stable and is being preserved at a very solid 97.8% and this ensures a stable and predictable income stream.

Hello, This is saying revenue growth of one 5% year on year and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs.

Craig Trout: All of this has seen revenue growth of 1.5% year on year, and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs. In response to the evolving market and landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix. For the financial year, we successfully signed over 600 new leases, including the introduction of over 200 new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period. Additionally, we continue to focus on emerging trends, particularly across fast food and food and beverage categories, as well as family entertainment and traditional Chinese medicine clinics to enrich our offerings and continue to drive improved food for all.

In response to the evolving market landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix.

For the financial year, we successfully signed over 600, new leases, including the introduction of over 200, new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period.

Additionally, we continue to focus on emerging trends.

Particularly across fast food and food and beverage categories as well as family Entertainment and traditional Chinese medicine clinics to enrich our offerings and continue to drive improved footfall.

By strategically managing our deep tenant customer relationships with brands across Hong Kong mainland, China, and Irish National portfolios, we aim to enhance the attractiveness of our retail assets and stay relevant with consumer preferences.

Craig Trout: By strategically managing our deep tenant-customer relationships with brands across Hong Kong, mainland China, and our international portfolios, we aim to enhance the attractiveness of our retail assets and stay relevant with consumer preferences. Now turning to our Hong Kong car park and related businesses, we achieved 1.7% year-on-year revenue increases, mainly due to higher tariffs. During the year, we introduced a new car park management system designed to enhance our operational efficiencies and also maximize utilization. This AI-powered system enables us to pilot systems such as dynamic pricing schemes, as well as the introduction of new products and services. One of those new products is the OneLink Pass, which offers a flat monthly rate and allows passholders to park at hourly bays in designated car parks across Hong Kong. This product has proven to be very popular amongst customers since its recent launch.

Now turning to our Hong Kong car parking related businesses, where we achieved one 7% year on year revenue increases mainly due to higher tariffs.

During the year, we introduced a new car Park management system designed to enhance our operational efficiencies and also maximize utilization.

This AI powered system enables us to pilot system, such as dynamic pricing schemes as well as the introduction of new products and services.

One of those new products is the one linked Pos which offers a flat monthly rice and allows pass holders to park at Alibaba as in designated Cowpox across Hong Kong.

This product has proven to be very popular amongst customers since its recent launch.

We will continue to develop innovative products to enhance revenue utilization and increased traffic.

Now I'll move to mainland China retail.

Craig Trout: We'll continue to develop innovative products to enhance revenue, utilization, and increase car parking traffic. Now we'll move to mainland China retail. Over the year, we've seen that Chinese consumer spending has remained relatively subdued, with portfolio performance differing between North and South. Our Southern assets continue to deliver strong results, while assets in the North faced headwinds amid a softer market environment. Occupancy, however, remains solid at just under 96%, and rental reversion improved from -3.2% at the half to 0.7% for the full year. If we excluded Link Plaza Zhongguanchang in Beijing, where we're undertaking significant refurbishment and asset enhancement works, rental reversion across the balance of our shopping centres in mainland China is strong at 7.6%.

And over the year, we've seen the Chinese consumer spending has remained relatively subdued with portfolio performance differing between north and south.

Our southern assets continued to deliver strong results while assets in the north face headwinds amid softer market environment.

Occupancy however remained solid at just under 96% and rental reversion improved from negative three 2% at the half two.

2.7 of 1% for the full year.

If we excluded linked clauses on Sunshine in Beijing, we were undertaking significant refurbishment asset enhancement works rental reversion across the balance of our shopping centers in mainland China is strong at seven 6%.

In February last year as you all know we acquired the remaining 50% interest in linked Plaza trade balance Shanghai.

I'm pleased to confirm that we have successfully integrated the assets and the very experienced and incentivize the team to link.

Craig Trout: In February last year, as you all know, we acquired the remaining 50% interest in Link Plaza Qibao in Shanghai, and I'm pleased to confirm that we've successfully integrated the assets and a very experienced center-based team to Link. We continue to enhance our mainland portfolio's performance through active asset management and significant strategic enhancements across our portfolio. Now we'll move on to our international retail portfolio, where in Singapore, the 99.6% high occupancy rate shows that there is robust leasing demand from tenants, including new to market overseas retailers, in particularly F&B operators. Overall, sustained demand for suburban Singapore retail, in addition to the dominant strategic location of our malls, has delivered strong 17.8% reversion over the period.

We continue to enhance our mainland portfolio performance through active asset management and significant strategic enhancements across our portfolio.

Now, we'll move on to our international rates our portfolio, we're in Singapore, the 99.6% high occupancy right shows that there is robust leasing demand from tenants, including new to market overseas retailers in particularly F&B operators.

Overall sustained demand for suburban Singapore right child.

In addition to the dominant strategic location of our models has delivered strong 17.8% reversion over the period.

In Australia, our retail centers their vocera sustained need full occupancy at 99%.

And productivity was driven by the ongoing introduction of new brands to optimize outright mix as well as higher overall footfall in general positive activity in the Sydney CBD, where our three properties are located.

Craig Trout: In Australia, our retail centers there have also sustained near full occupancy at 99%, and productivity was driven by the ongoing introduction of new brands to optimize our trade mix, as well as higher overall footfall and general positive activity in the Sydney CBD, where our three properties are located. As a result, tenant sales grew at 7.7% year on year, whilst we achieved a solid reversion rate on expiring leases at 4.3%. I'll point out, in addition to these positive trends in Australia, it's important to note the income growth is underpinned by the annual increases contracted in our leases there, and this sees us at a weighted average 4.7% per annum on those leases. Now we'll move on to our international office portfolio, where we have a relatively long WALE of 4.4 years, which underpins the resilience of that portfolio.

As a result tenant sales grew at seven 7% year on year, whilst we achieved solid reversion rate on expiring leases at four 3%.

I'll point out in addition to these positive trends in Australia. It's important to note. The income growth is underpinned by the annual increase is contracted in our leases there.

And this saves us at a weighted average four 7% per annum on those leases.

And we'll move on to our international office portfolio, where we have a relatively long wale of 4.4 years, which underpins the resilience of that portfolio.

Speculative fit outs continue to be well received by small to mid sized office tenants in Australia in office market to help speed up the leasing process and reduce friction which supports leasing outcomes and portfolio occupancy.

Craig Trout: Speculative fit-outs continue to be well received by small to mid-sized office tenants in the Australian office market to help speed up the leasing process and reduce friction, which supports leasing outcomes and portfolio occupancy. Favorable supply and demand dynamics in the Sydney office market in particular are also expected to be supportive of leasing activities and further positive net absorption there. This is given limited new supply of floor space in the short to medium term. As for mainland China logistics, thanks to the efforts of our leasing team, the portfolio continued to maintain a high occupancy of 97.4%, with three of our five assets there nearly fully leased. I will point out, however, that demand for new space remains relatively mixed. Our project pipelines sit in Hong Kong at HK$2.3 billion for retail projects and RMB 180 million in mainland China for retail projects there.

Favorable supply and demand dynamics in the Sydney office market. In particular are also expected to be supported but leasing activities and further positive net absorption there.

This is given limited new supply of floor space in the short to medium term.

As for mainland China logistics, thanks to the efforts of our leasing team the portfolio continued to maintain a high occupancy of 97, 4%.

With three of our five assets they nearly fully less I will point out however, the demand for new space remains relatively mixed.

Our project pipelines.

Sitting Hong Kong at 2.3 billion, Hong Kong dollars for retail projects and 180 million renminbi in mainland China for retail projects there.

We're always looking to proactively unlock asset values for these programs and currently our asset enhancement projects are predominantly tenant lids and are well supported by tenants and a smaller in scale.

Craig Trout: We're always looking to proactively unlock asset value through these programs, and currently, our asset enhancement projects are predominantly tenant-led and are well supported by tenants and are smaller in scale. This year, we also hit a major milestone, now with over 3,000 public EV charging points across Hong Kong and now 58 solar power systems across Hong Kong. This makes Link the city's largest private provider of public EV charging points and the leading private solar power operator. We're planning to continue to expand our reach and network with further EV locations and solar PV arrays across Hong Kong in the near term. Our active approach to sustainability ensures all initiatives align closely with our business priorities and deliver operational efficiencies.

This year, we also hit a major milestone now with over 3000 public EV charging points across Hong Kong and now 58 solar power systems across Hong Kong.

This makes linked the city's largest private provider of public EV charging points and the leading private solar power off writer.

We're planning to continue to expand our reach and networks with further ewe locations and sell a P V arise across Hong Kong in the near term.

Our active approach to sustainability insurers all initiatives align closely with our business priorities and deliver operational efficiencies.

On decarbonization, our ongoing investment in energy saving initiatives has reduced carbon intensity by 21% compared to our 2018 19 baseline and this is also delivered some $8 8 million Hong Kong dollars in energy savings this year alone.

Craig Trout: On decarbonization, our ongoing investment in energy saving initiatives has reduced carbon intensity by 21% compared to our 2018-2019 baseline, and this has also delivered some HK$8.8 million in energy savings this year alone. On climate resilience, we went beyond protecting our assets to create financial value. Proactively communicating our flood protection efforts to insurers resulted in an 11.7% reduction in Hong Kong's property fall risk premiums. With this renewal, we also became the first real estate company in APAC to have sustainability-linked insurance. Next, I'll pass on to George for outlook. Thanks, George.

On climate resilience, we went beyond protecting our assets to create financial value.

Proactively communicating our flood protection efforts efforts to insurers resulted in an 11, 7% reduction in Hong Kong property all risk premiums.

With this renewal we also became the first real estate company in APAC to have sustainability linked insurance.

Next I'll pass on to George for outlook. Thanks, George.

Thank you Greg.

And here are some of the macro factors from both.

Both global and local contacts that impact our business.

George Hongchoy: Thank you, Greg. Here are some of the macro factors from both global and local contexts that impact our business. We expect conditions in Hong Kong and mainland China, where reversions turn negative this year, to be challenging. Nonetheless, I would like to emphasize that there are still some positive developments in our key markets. For instance, the automatic land lease extension in Hong Kong removes uncertainty for landowners, while the mega events in Hong Kong and Singapore are expected to boost tourism and foot traffic. In mainland China, the central government has introduced a series of measures to stabilize financial markets and stimulate consumption, aiming to support economic outlooks. These favorable developments provide some cause for optimism amidst the complex macro outlook. In response to these challenges, we are focused on what is within our control.

We expect conditions in Hong Kong mainland, China, where reversion turn negative this year.

To be challenging.

And nonetheless, I would like to emphasize that there are still some positive developments in our key markets.

For instance, the automatic lend lease extension in Hong Kong removes uncertainty for landowners.

While the macro events in Hong Kong, Singapore expected to boost tourism and foot traffic.

In mainland China, the Central government has introduced a series of measures to stabilize financial markets and stimulate consumption aiming to support economic outlooks. These favorable developments provide some cause for optimism.

That's the complex macro outlook.

In response to these challenges we all focus on what is within our control.

In order to protect unit holders return management has implemented several countermeasures, including operating operational efficiency and cost reduction efforts.

George Hongchoy: In order to protect unitholders' return, management has implemented several countermeasures, including operational efficiency and cost reduction efforts. At the same time, we are keeping a broad vision to identify opportunities for diversification into new assets and geographies. In the longer term, we are cautiously executing our strategy to set the foundation for longer-term growth, and we'll continue to invest with caution into future growth drivers, in particular portfolio optimization and the real estate investment business. Let's revisit our Link 3.0 strategy with a brief update. We previously mentioned that through Link 3.0, we aim to offer a REIT plus investment case to be achieved through portfolio optimization and real estate investment management business growth. These two key drivers under Link 3.0, firstly, to actively manage and diversify our portfolio. We've been proactively looking at recycling and acquisition opportunities in our focus markets of Australia, Singapore, and Japan.

At the same time, we are keeping a broad vision to identify opportunities for diversification into new assets and geographies.

In the longer term, we are cautious we are cautiously executing our strategy to set the foundation for longer term growth.

And we will continue to invest with caution into future growth drivers in particular portfolio optimization and the real estate investment business.

Let's revisit all linked frequency with strategy with a brief update we previously mentioned that prove infrequent zero, we aim to offer a REIT plus investment case.

To be achieved through portfolio optimization, and real estate investment management business growth.

These two key drivers underlying free one zero.

Firstly to actively manage.

And diversify our portfolio.

We've been proactively looking at recycling and acquisition opportunities in our focus markets of Australia, Singapore and Japan.

At the same time, we'll continue to exercise prudence.

Secondly, we continue to expand the real estate investment.

George Hongchoy: At the same time, we continue to exercise prudence. Secondly, we continue to expand the real estate investment management capability under Link Asset Management Limited to work with and provide services to different capital sources. We are delighted to have officially launched our fund business, Link Real Estate Partners. We will continue to explore a variety of other ways to diversify our source of income and to collaborate with different capital partners, including reviewing opportunities to accelerate the expansion of the real estate investment management business through both organic and inorganic initiatives. I want to touch on remuneration. During the year led by the Remuneration Committee, we've engaged an independent consultant to review our remuneration strategy, and the central emphasis has been to support Link's strategy and further increase the alignment between executive compensation and unitholder interests.

Management capability on the link asset management limited too.

To work with and provide surfaces to different capital sources.

We are delighted to have officially launched our fund business link real estate partners.

We will continue to explore a variety of other ways to diversify our source of income and to collaborate with different capital partners, including reviewing opportunities to accelerate the expansion of the real estate investment management business through both organic and inorganic initiatives.

I want to touch on renew moderation during the year led by the renewed relation committee, we've engaged an independent consultant to review, our renew motion strategy and the central emphasis has been to support.

Link strategy and further increase the alignment between executive compensation and unitholder interests.

Through these process the chair and the committee consulted several long term unit holders. Some are in this room with US we are grateful for the constructive feedback and we're committed to enhance the transparency of our new motion scheme.

George Hongchoy: Through this process, the Chair and the Committee consulted several long-term unitholders, some in this room with us. We are grateful for the constructive feedback, and we are committed to enhance the transparency of our remuneration scheme. You will see further disclosure taking effect of this new plan from 2025, 2026 in our annual report. Let me pass to Ronald for the distribution calendar.

You will see further disclosure I'm taking effect of these this new plan from 25 26 in our annual report.

Maybe fossil Ronald for.

The distribution talent.

Thanks, George moving onto our distribution calendar.

Last day off to come final dividend is 17th June record days 25th June.

Craig Trout: Thanks, George. Moving on to our distribution calendar, last day of the cum final dividend is 17th June. Record day is 25th of June. The final date for scrip election is 18th July, and the distribution date is 4th of August. As a reminder, we will be moving to providing quarterly operational updates, which will be uploaded to the stock exchange website. The next update is expected to be in August. Now, we'll open the floor for Q&A. For those attending in person, please raise your hand if you would like to ask a question. For those attending via webcast, you may submit your question using the Q&A function. Please state the name and the company you represent, and may I have the first question? I think I can see the first one here, Carl. Yeah.

And the final date for scrip election is 18th of July and the distribution date is fourth of August.

As a reminder, we will be moving to providing quarterly operational updates, which will be uploaded to the stock exchange website.

And the next update is expected to be in August.

Now we will now open the floor for Q&A.

Those attending in person. Please raise your hand, maybe you would like to ask a question.

And for those attending via webcast you may submit your question using the Q&A function.

Please state the name and the company you represent and May I have the first question I think that I can see the first one here Carl.

Hi management. Thank you very much 40, a trainee opportunity I am Kerr Chen from J P. Morgan. So I have two questions. The first question is more on Hong Kong retail. So just curious in terms of tenant sales I think last year. It was down by around 3% for the full year right. If we just compare the fourth.

[Analyst 1]: Hi, management. Thank you very much for the Q&A opportunity. I am Carl Chen from JP Morgan. I have two questions. The first question is more on Hong Kong retail. Just curious, in terms of tenant sales, I think last year it was down by around 3% for the full year, right? If we just compare the fourth quarter and the third quarter, how was the trend? Is it better or is it weakening or similar? That's on the quarterly tenant sales trend. In terms of rental reversion for the full year, last year it was down by around 2.2%. We recall that in the first half it was up a bit, so it implies that in the second half it might be down by around 4% to 5%. Just curious, for the next financial year, what's our expectation on the rental reversion?

Water and a third quarter, how was the trend is set up better or is it a weakening or similar so that's on the quarterly a tenant sales trend and then in terms of rental reversion offer a four year last year. It was down by around two upon to a percentage.

We recall that in the first half it was up a bit so it implies that in the second half it might be down by around like 45%. So I was just curious for the next financial year, what's our expectation on the ranch Ob version.

If it's negative are what the magnitude will be slightly better than four or 5% or what BT is similar. So that's my first question on Hong Kong retail sales and then the second question is more for him Mr. Joshua <unk> Choi. So you have been with the company for around 15 years right and obviously under your leadership. The company has grown a lot I'm just curious what's your plan in the next few.

[Analyst 1]: If it's negative, would the magnitude be slightly better than 4% or 5%, or would it be dissimilar? That's my first question on Hong Kong retail sales. The second question is more for Mr. George Hongchoy. You have been with the company for around 15 years, right? Obviously, under your leadership, the company has grown a lot. Just curious, what's your plan in the next few years within the company? How do you foresee your role in the company? Thank you.

Yes, well within the company how do you foresee your role in the company. Thank you.

Right.

Hum.

We will get Greg to answer. The first question gives me time to think about how it.

Yeah.

But thanks for being the first off the Mark on publishing the report on our results.

George Hongchoy: Right. We'll get Craig to answer the first question, give me time to think about how to answer your second question. Yeah, thanks for being the first off the mark on publishing the report on our results early today.

Earlier today.

Al just on on tenant sales first we have seen an improvement from the third quarter and the fourth quarter. So that the worst was last year and it's progressively improved over the year.

Craig Trout: Greg, Carl, just on tenant sales first. We have seen an improvement from the third quarter and the fourth quarter. The worst was last year, and it's progressively improved over the year. I will say that there is a lag in terms of what then happens with leasing outcomes. The leasing for us has got progressively worse over the year with regards to the reversion. I think in the current environment with Hong Kong retail sales declining by 7%, for us to deliver negative 2% or thereabouts on reversions is a pretty credible outcome. If you dig a bit deeper, for our shops, the negative reversion was about 1%. For our markets, it was negative 9.5% or thereabouts. Quite a bit of pressure in the fresh markets.

I will say that there is a lag in terms of what then happens with leasing outcomes. So the leasing for US has got progressively worse over the year with regards to the revision.

I think in the current environment with Hong Kong retail sales declining by 7% for us to deliver negative 2% or thereabouts on revisions as it is a pretty credible outcome.

If you dig a bit deeper it for our shops the negative provision was about 1% for a market that was negative nine 5% there or thereabouts.

Quite a bit of pressure on the fresh market.

But probably the most pleasing thing and all of that and the strategy that Gary and Emmanuel who run our leasing and asset management teams are in the room today is preserving occupancy.

Craig Trout: Probably the most pleasing thing in all of that and the strategy that Gary and Emmanuel, who run our leasing and asset management teams who are in the room today, is preserving occupancy. We have been able to preserve our occupancy at around 98%, which is very, very good and an absolute sharp focus for us as a management team. It feels like retail sales are starting to improve, albeit we're comping very poor timing last year. We have got to put it into perspective. In terms of retail reversion, I don't have my crystal ball with me, but I think it just comes back to the purpose of our portfolio, and that remains unchanged here in Hong Kong.

So we've been able to preserve our occupancy at around 98%, which is which is very very good and the absolute sharp focus for us as a management team.

And it won't feels like retail sales are starting to improve it won't be at we're comping very poor timing.

Timing last year, so we've got to put it into perspective.

In terms of retail reversion I don't have my Crystal ball with me, but I.

I think it just comes back to the purpose of our portfolio and that remains unchanged here in Hong Kong, So focusing on food and beverage service and trades that Hong Kong is rely for their daily needs puts us in a pretty enviable position in the strategic locations of our assets is the same thing so I'm not avoiding your question but.

Craig Trout: Focusing on food and beverage, service, and trades that Hong Kong has relied for their daily needs puts us in a pretty enviable position, and the strategic locations of our assets is the same thing. I'm not avoiding your question, but I would suggest that reversions won't turn positive this year. They will be negative this year, and I would suggest they would be low to mid-single digits negative. That would be my best assessment at this point in time. We have started off the year reasonably well, albeit it's still very early days, and the focus for us is retaining tenants. That retention rate that we delivered last year of 80% is a focus. Preserving portfolio occupancy is a focus, and if that comes with some negative reversion, we're prepared for that.

I would suggest that.

Revisions one turn positive this year now that will be negative this year and I would suggest they would be.

Low to mid single digits negative that would be my best assessment at this point in time.

We've started off the year reasonably well.

Obiit, it's still very early days and the focus for us is retaining tenants that retention rate that we delivered last year of 80% is a focus preserving portfolio occupancies of focus and if that comes with some negative reversion wafer paid for that.

I Hope Christie have prepare my answer already so.

Ah well time flies when you're having fun. So I think that's the quickest answer I can give to you.

George Hongchoy: I hope Christy has prepared my answers already. Time flies when you're having fun, so I think that's the quickest answer that I can give to you. In terms of good corporate governance, any CEO and the board should be pending succession from the day that the CEO has been appointed. We've been talking about succession every year. The board has a practice of annually doing a CEO mapping, and we just completed one recently. That's something that we want to make sure that we understand who are the candidates available externally whenever something happens. We used to say, since we're in Hong Kong, rather than saying the bus, you know, what if the tram ran over me and I couldn't come to work? That's something that we do on a regular basis.

M S.

As any oh in terms of good corporate governance, any CEO and the board should be pending secession from the data that the CEO has been appointed and so we've been talking about recession every year. The board has a it's the practice of our newly doing a CEO mapping that we just completed one recently.

So that's something that we wanted to make sure that we understand who are the candidates available externally whenever something happens and Oh, we used to say since we are in Hong Kong violence in the past you know what is the profile of your tram run over me and I Couldnt come to work. So so that's something that we do on a regular basis.

Having said that I think the other part which is actually room Houghton for part of this discussion.

Regardless of whether it's just me or not at the end of days. It's teamwork. So what you have seen is a upgrade in the management team that we have done over the last few years I used to be.

George Hongchoy: Having said that, I think the other part, which is actually very important for part of this discussion, regardless of whether it is me or not, at the end of the day, it's teamwork. What you have seen is an upgrade in the management team that we have done over the last few years. I used to be, and we talked about this when we met, you know, I used to be CEO, CIO, COO, and CXO. Now you have a COO sitting here, you have a CIO sitting on the floor, and not literally on the floor, but you know, we have an expanded team. I think that alone provides a lot of options for the board. When the time comes, it's not a decision by any one party. It's a board, myself, my family, all of that. They might come.

We joke about this win when we met you all used to be see OCI oce, Ole and see X O and now you have as you're sitting here you see I O sitting on the floor and not literally on the floor, but [laughter], but you know us well.

We have an expanded team. So I think that alone will provide a lot of options with the board.

And when the time comes you know is not a position by any one party has a board and myself and my family lives on all of that so that it might come but the key issue is in terms of governance. This is a business as usual event and that you know that we do every year. We just completed recently reported to the nomination committee.

George Hongchoy: The key issue is, in terms of governance, this is a business as usual event and that we do every year. We just completed it recently and reported to the nomination committee. We'll do that as a matter of course anyway. So far, having a lot of fun. Yeah, thanks.

T will do that as a matter of course anyway. So so.

So far having a lot of fun. So thanks. Thank.

Thank you. Your next question to be fair, what I'll take one from the right Cindy.

Okay.

I think you said you have to repeat this is Cindy from city three questions from me if I may the first question yourself future distribution sustainability. So I think at the presentation, you mentioned train our managers to protect future distribution that'd be challenges and negative emotion just try.

Craig Trout: Thank you. Next question. To be fair, why not take one from the right, Cindy.

[Analyst 2]: Thank you for the opportunity. This is Cindy from Citi. Three questions from me, if I may. The first question is on future distribution sustainability. At the presentation, you mentioned trying all measures to protect future distribution of the challenges and negative reversion. Just trying to get more color on exactly what measures we are taking for, say, full year 2026 and 2027, next two years, given all the challenges you have mentioned. Will you be more actively looking for organic measures? I remember last time you mentioned looking for non-rental income, or will you be more actively looking for, say, inorganic growth? This is the first question. The second question is on tenant remixing. Just trying to wonder if there's further room to optimize tenant mix in order to cushion the reversion pressure. I think last year, education was actually posting a positive reversion.

Thank you get more color around exactly what measures. We are taking so say four years 36 and 37 next two years given all the challenges you have mentioned well you'll be more actively looking for alternative managers I remember last time, you mentioned looking film rental income, although there'll be more actively looking sad to say.

Organic warehouse so that's the first question.

No question he saw tenant remixing. So just trying to wonder if there's further room to optimize tenant mix in order to cushion some dealership pressure.

I think last year education was actually posting a positive that moshe.

So is there any consideration to maybe downsize some underperforming trays and improve some are outperforming why does that introduce more say overseas brands into the portfolio. This is the second question and the second question is on your 20 years anniversary. So just trying to think about if theirs.

[Analyst 2]: Is there any consideration to maybe downsize some underperforming trades and improve some outperforming ones and introduce more, say, overseas brands into the portfolio? This is the second question. The third question is on your 20-year anniversary. Just trying to think about if there's more of a long-term new strategic thinking after 20 years of operations. Also, will you consider any celebration to share the joy with your unitholders? Thank you.

More of a long term new strategic thinking after 20 years of operations and I say well you can see there any celebration of shares of Troy with your unit holders.

[laughter].

Yeah.

Great.

The first two yeah I can talk to just some of the operational efficiency measures with wood with talking to so.

Craig Trout: For the first two, I can talk to just some of the operational efficiency measures that we're talking to. Pleasingly, for the period that we've just spoken to today in Hong Kong, we've seen our NPI margin improve from 75.3% to 76.3%. That has come with a combination of factors to try and enhance our operational efficiency. We're very fortunate to have a business with significant scale here in Hong Kong, and we're continuing with a number of things that I won't talk about today to try and enhance that operating margin. That's a real focus for us. In terms of tenant remixing, what we're finding is that we're retaining about 80% of the tenants that have expiring leases. That gives us an opportunity to introduce new retailers to our portfolio.

Pleasingly for the period that we've just spoken to today in Hong Kong, we sent our NPI margin improved from 75.3 to 76.3. So that's come with a culmination of a combination I should say of effectors to try and enhance our operational efficiency. We're very fortunate to have a business with significant.

Scale here in Hong Kong, and we're continuing with a number of things that I won't talk about today to try and enhance that operating margin. So that's that's a real focus for us in terms of tenant Remixing. What were finding is dash one way retaining about 80% of the tenants that have expiring leases that.

Gives us an opportunity to introduce new retailers to our portfolio.

So we've spoken about the 600, new leases that we've written over the period 200 of them are tenants that haven't had shopped with us before I think that's a pretty good ratio.

Craig Trout: We've spoken about the 600 new leases that we've written over the period, and 200 of them are tenants that haven't had shops with us before. I think that's a pretty good ratio. I will say, however, that leasing to new tenants comes at a bigger negative reversion than it does from us retaining tenants. What we're seeing is that quite clearly in Hong Kong, when we retain tenants, we get a better outcome on balance than when we're having to lease to new tenants. That doesn't mean that we won't take steps to continue to evolve our tenancy mix and offering. I think with the 200-odd new leases that we've been able to bring in, it allows us to do that. Your other question around overseas retailers, we are seeing a reasonable introduction of new overseas businesses to our portfolio, and most of them are from mainland China.

I will say, however that leasing to new tenants comes at a more a bigger negative reversion than it does from us retaining tenants.

So what we're saying is that quite clearly in Hong Kong when we retain tenants, we get a better outcome on balance than when we're having two leased to new tenants that doesn't mean that we won't take steps to continue to evolve our tenancy mix and offering and I think with the 200 odd new leases that we've been able to bring in.

It allows us to do that.

And your other question around overseas retailers, we are seeing a reasonable introduction of new.

Overseas businesses to our portfolio and most of them are from mainland China I will say in other markets like Singapore. For example, we're seeing a significant number of mainland retailers entering Singapore them with benefiting from Nash I don't know if there's anything else you want to add on the distribution pace, George but probably the most important thing that we're really focused on are those off.

Craig Trout: I will say in other markets like Singapore, for example, we're seeing a significant number of mainland retailers entering Singapore, and we're benefiting from that. I don't know if there's anything else you want to add on the distribution piece, George, but probably the most important thing that we're really focused on are those operational efficiencies. I think a big step for us over the last 12 months is enhancing the operating margin here in Hong Kong.

Rational efficiencies and I think a big step for us over the last 12 months is enhancing your operating margin here in Hong Kong.

Okay.

On slide seven there are a lot of history, a lot of things that we've done over 20 years from 1.0 to one zero to what we talk about frequency of.

George Hongchoy: On slide seven, a lot of history, a lot of things that we've done over 20 years from 1.0, 2.0 to what we talk about 3.0. This particular description is not really the matter that I think one should focus on, but we've dealt with a lot of cycles. I think we've built a business where the corporate culture, the resilience of the business, the team have been able to deal with a lot of these cycles. Every time when we go through each of these, in the middle of it, we are faced with immense uncertainty. We didn't know when we got out of the protest. We don't know when we got out of GFC or COVID. Again, now we're facing a time where people are saying that there's a lot of uncertainty because of politics and other reasons.

These are particular description is not really the matter.

I think once we focus on but we've dealt with a lot of cycles.

I think we've we've built our business with our corporate culture.

The resilience of the business the team have been able to deal with a lot of these cycles every time when we go through each of these in the middle of it.

We pay at move we are faced with immense uncertainty we don't know when we got out of the protest. We don't know when we got out of Dfc ore or coal, but again now we're facing a time where people are saying that there was a lot of uncertainty because of politics and other reasons. So I think one of the things that that link have done Oh.

Over the years has built a very resilient and set of assets very strong balance sheet that can withstand films.

George Hongchoy: I think one of the good things that Link has done over the years is build a very resilient set of assets, very strong balance sheet that can withstand some degree of financial stress. I will see if there's a significant market crash, we also need to handle that. We've done a lot of stress tests and scenario planning. Looking ahead on slide 30, we talk about as part of Link 3.0, how we optimize the current portfolio further. Recycling in Hong Kong may be a little bit challenging, but in mainland China and elsewhere, we'll continue to do that. Actively managing it to try and improve the productivity of the balance sheet, at the same time growing the real estate investment business. That's something that we can talk about in a bit more detail later on. We will celebrate.

Some degree of financial stress, Oh, I'll see if there's a significant market crash, we also need to handle that but we've done a lot of stress tests and scenario.

Planning and then looking ahead on page on Slide 30, we will talk about as part of linked free zero, how we optimize the current portfolio further recycling in Hong Kong, maybe a little bit challenging, but you know in mainland China and elsewhere will continue to do that so we're actively managing it to.

Try and improve the productivity off the balance sheet at the same time growing the real estate investment business and that's something that we can talk about in more detail later on.

And yeah, we will celebrate it.

It is this on November 25th when we when we were listed 20 years ago. So we managed to find a fair value that is free luxury. So we are in a mode of cost cutting that's quite important so mark your calendar afternoon of the 24th of November come and have a drink and then is this free for you too.

George Hongchoy: It is on November 25th when we were listed 20 years ago. We managed to find a venue that is free, luckily. In the mode of cost cutting, that's quite important. Mark your calendar afternoon of 25th of November, come and have a drink. It's free for you to come and drink. We'll pay for the drink. The venue, luckily, is free. We'll hope to really celebrate the past success. The past is not less important except as a reference for us to really think about how we're going to manage the next cycle. In the midst of that, there's a lot of things that we already talked about. Operating efficiency, cost control, and all those are extremely important for us to deal with this. We are in a high margin business. When revenue comes down, there's only so much we can do.

And then through to drink will pay for the drink, but the venue or Luckily is free and we'll we'll hope to really celebrate them.

Success of.

The Pos is not less importantly, except as a reference for us to really think about how we're going to manage the next cycle.

And then when in the midst of that there's a lot of things that we've already talked about ill and operating efficiency cost control in all of those are extremely important for us to deal with this we are in a high margin business. So when revenue comes down there's only so much we can do.

But you know there is need to be disciplined in terms of controlling costs. So that you know when we rebound we are a strong business.

We need to make sure that the team is in place for us to handle yellow when did the new opportunity idea Oh come. So how can we at the same time do that built a team that to pay off new opportunities and at the same time be fishing and.

George Hongchoy: There needs to be a discipline in terms of controlling costs so that when we rebound, we are a strong business. We need to make sure that the team is in place for us to handle when the new opportunity comes. How can we, at the same time, do that? Build a team that takes care of new opportunities and at the same time be efficient and be resilient through this cycle. The team's focus on quite a lot of those ideas. We're happy to discuss more later.

And N b be resilient through the cycle. So the team's focus on quite a lot of those those ideas, we're happy to discuss more later.

Okay.

Mark.

John John Sorry.

My mom Mark.

Uh huh.

Craig Trout: Okay. John, sorry. Yeah, Mark. Yeah.

Thank you management. This is mark Lange from UBS I've got about I think for your questions. I think the first one who will be more like a housekeeping one I think management you mentioned in this year, we got certain one off items and it's just not sure if you could elaborate.

[Analyst 1]: Thank you, management. This is Mark Leung from UBS. I got about, I think, three questions. The first one will be more like a housekeeping one. I think management, you mentioned in this year we got certain one-off items. Just not sure if you could elaborate what kind of key one-off items and the amounts we should be aware. That's the first question. The second question is regarding the resident logo changes. Could you walk us through what was the rationale for the company logo changes? We recently launched the Link Real Estate Partners. In the long run, how should we think about the corporate structure? I think there's some news reporting that we may do some spin-off maybe in Singapore. We'd like to hear your thoughts.

What kind of key one of items and our minds, we should be aware I think desktop first questions and then the second question is just regarding on the resins and local changes and so could you walk us through.

What was the rationale for the local company local changes and that's S. D V residency launched at the lingua de partner in a long run how should we think about on the corporate structure because I think there's some having news are reporting that we may do some spinoff maybe in Singapore, we'd like to hear you.

Fourth and last but not least I think Josh also mentioned about the cost control from which areas are you wood pulp mostly pay attention to in terms of cost cutting thank you.

[Analyst 1]: Last but not least, I think George also mentioned about the cost control, from which areas you will mostly pay attention to in terms of cost cutting. Thank you.

One off items.

So I think if you think about it in our business across the main geography and I.

Craig Trout: One-off items.

I guess the complexity that we are in now we do have quite a fair bit of one off items year to year.

George Hongchoy: I think if you think about it in our business across domain geography and the, I guess, the complexity that we are in now, we do have quite a fair bit of one-off items year to year. Specifically to last year, what we have mentioned publicly is that we have been going through some, I guess, tax clarification in mainland, and we ended up in a, I guess, a favorable tax resolution this year. On top of those, one-off items included will be things like deal expenses as we look at deals throughout the year. As an accounting practice, if you consummate the deal, it gets capitalized into the balance sheet. If not, the deal gets aborted, then the expenses need to be expensed out into the P&L.

Specifically to last year I think what we have mentioned publicly that they would be have been going through some I guess takes clarification in mainland and we ended up in a I guess a favorable tax resolution this year on.

On top of those one off items include it will be things like do expenses as we look at deals throughout the year.

In accounting practice if you.

Consumers are due.

It gets capitalized into the balance sheet if not.

Did you get a barter expenses needs to be expand self into the P&L. So put together I mean, if you wanted to highlight this this year if anything when you put all the numbers together plus and minuses.

It's a significant number that we want to mention to you guys and it's probably in the range of about 100 million disease.

George Hongchoy: Put together, we wanted to highlight that this year, if anything, when you put all the numbers together, plus and minuses, it's a significant number that we want to mention to you guys. It's probably in the range of about $100 million this year. Perhaps there's just a little bit more, elaborating a little bit more on that. The G&A costs, which include some of the staff costs, each year, if we do well in unit price, then staff cost goes up because the LTI accrual actually goes up. It's a good thing. While that goes up, our investor is actually making more money. There is that alignment. This year, our unit price has gone up 20-odd % year to date. That is reflected in the staff cost increase as well. Let's hope that we'll keep going up partly because we do want unit price to go up.

Perhaps just a little bit more elaborating a little bit more that E. G.

G&A costs, which include some of the staff costs.

Each year, if we do well in unit price then staff cost goes up because the LTI accrual actually goes up.

So it's a good thing L. While while that goes out.

Our investor to be making more money, but there is an alignment and so this year our unit price.

Price has gone up 20 odd percent year to date. So that is reflected in the staff cost increase as well and let's hope that well.

We will keep going up but partly because we do want you that whole unit price would go up.

We have looked at a number of our inorganic transactions.

And we haven't done any otherwise, we would have announced them and by not doing them. We have to write off the cost and that's what okay. As was mentioned the consultancy and legal costs.

George Hongchoy: We have looked at a number of inorganic transactions, and we haven't done any. Otherwise, we would have announced them. By not doing them, we have to write off the costs. That's what KS was mentioning, the consultancy and the legal costs relating to certain M&A transactions that have not materialized. I want to just expand on that because some of you have asked about the G&A costs going up again on staff costs and the staff costs relating to the number of people that we apply under Link Real Estate Partners.

Relating to certain M&A transaction that has not materialized.

And I want to just expand on that because some of you have asked about the G&A costs going up again on staff costs and the soft costs relating to the number of people that we have high underlying real estate partners.

And there is this choice of building organically, where the staff cost will go up as you build the team in order to come up with the revenue from the fund business.

George Hongchoy: There is this choice of building organically where the staff costs will go up as you build the team in order to come up with the revenue from the fund business, or we do an inorganic transaction where the staff costs will not be seen so much because it will actually be capitalized as goodwill when we buy a platform, right? Obviously, afterwards, we will have the staff costs, but we will have a much higher income. By growing it from scratch, we'll probably have a bigger J-curve for a period of time in order to deliver that business. There is always this strategic discussion whether we do it organically, where there's a higher hit on the P&L and deliver that business, or do it inorganic where you have a goodwill hit, but not a P&L hit to deliver that.

All we do our inorganic transaction, where the staff costs will not be seen.

So much because it will actually be capitalized as goodwill when we buy a platform right. So obviously afterwards, we will have the soft cost, but we will have a much higher income and now by rolling it from scratch.

Probably have a victor J curve for a period of time in order to deliver that.

That business. So there's always this strategic discussion, whether we do it organically, where theres a higher hit on the P&L and deliver that business or do inorganic where you'll have a goodwill hit but not in a P&L hit to deliver that a reason why I want to mention that if in order to.

For all unit holder to protect our bottom line.

George Hongchoy: A reason why I want to mention that is in order for our unitholder to protect our bottom line, while we have this hit to our P&L with the increased staff costs for the Link Real Estate Partners staff, we also want to look at the efficiency that we can gain by rationalizing the team, improving processes, delaying, etc., and those things to save staff costs from the organic business so that we can actually fund partly, if not as wholly, the building up of the fund management team. Those are some of the trade-offs that we're looking at. I think so far, that's something that we will continue to need to do as we build this business in the coming years. The local change actually, firstly, I think it's worth saying that it almost costs us nothing.

While we have this hit to our P&L with the increased staff cost for the link real estate partner staff. We will also want to look at the efficiency that we can gain by being you know a rationalizing the team re improving profitably all our processes and de layering et cetera.

Those things to save soft staff costs from the organic business. So that we can actually fun, partly if not as a wholly the building up of the fund management team. So those ourselves no trade off that were looking at and I think so far that that's something that.

We will continue to need to do as we built the specifics in the coming years.

The local change actually firstly, I think it's worth saying that it's almost costs us nothing.

We've done a lot most of it in house, so we didn't pay a <unk> five.

$5 million to change the name back to the same alphabet. So that's important but the key is we actually really haven't changed for 20 years. We are employees of link asset management limited.

George Hongchoy: We've done most of it in-house, so we didn't pay $5 million to change the name back to the same alphabet. That's important. The key is we actually really haven't changed for 20 years. We are employees of Link Asset Management Limited, but we put a logo Link REIT, which is the REIT that we manage. We're actually employees of Link Asset Management Limited. What we would like to do is actually to tell people that we are employees of Link Asset Management Limited. This is the part of the business, part of the functions that we perform. We managed Link REIT for 20 years. We will, in the future, through Link Real Estate Partners, which is a 100% subsidiary of Link Asset Management Limited, manage other funds.

But we put a logo link REIT, which is the REIT that we manage but we actually employee of link asset management limited. So what we would like to do is actually to tell people that we are employee of Lin asset management limited. This is the best that this is the part of the business about part of the functions that we perform.

<unk>.

We manage link REIT for 20 years, we will go we will in the future.

Through leading real estate partners, which is a 100% subsidiary offering asset management Ltd manage other funds and so we will have multiple vehicles to attract different capital sources to a manager to deliver a fee income deliver a different investment opportunities.

George Hongchoy: We will have multiple vehicles to attract different capital sources to manage and to deliver fee income, deliver different investment opportunities to our unitholders. It is a slight shift of focus, but at the end of the day, hopefully, that shift allows people to, when they read our report, when they try to understand us, realize that we are as much a fund manager as much as a REIT since we are stable together, unlike some of our peers in this part of the world. You mentioned spin-offs and all that. We study all sorts of options, C-REITs, S-REITs, A-REITs, buying some platforms, selling assets in portfolio, individual. As we responded in the past, until the deal was done, there's really not much we can talk about because there's so many variations of timing and opportunity. Not much to share.

Entities to our unit holders and so there's a slight niche sites shift of focus but at the end of innovate hopefully that that shift allow people.

People to when they read the I'll report when they untried to understand us realize that we are as much a fund manager as much as a REIT since we are stapled together. Unlike some of our peers in this part of the world.

You mentioned spin offs and in all that we study all sorts of options L. A C reads S. REIT a rights buying some platforms.

Selling assets and portfolio individually as.

As we responded in the Pos until we the deal was done the Sri and not much we can talk about because there's so many variations of our timing and opportunity. So I'm not much for sure I know you've read an article in Singapore, but that's what this one also.

Coming up with one idea so b.

George Hongchoy: I know you read an article in Singapore, but there's one author coming up with one idea. The rationalization that we're doing hopefully will help us to mitigate some of the challenges in terms of cost increase as well and make us a little bit more efficient as we move into the next phase. The focus continues for the portfolio to invest in Asia-Pacific and hopefully the market return for some of the locations for us to do more diversification and recycling.

Rationalization that we are doing hopefully will help us to mitigate some of the challenges in terms of your cost increase as well and make us a little bit more efficient as we move into the next phase do you focus continue for the portfolio to invest in in Asia.

Pacific and hopefully the.

The market returned for some of the location for us to do more diversification in recycling.

Okay.

Yeah.

Yeah.

Thank you management this is raymond from HSBC.

Also three questions. The first question is regarding to the link free Paul Hoelscher Allergies can management provide us the latest update and save for example, what shall we expect a U M scale of your fund manager business in the next 12 months or sometimes say by 2030. So all we can add more centers.

Craig Trout: Thank you, management. This is Raymond from HSBC. I got also three questions. The first question is regarding to the Link 3.0 strategies. Can management provide us the latest update and say, for example, what should we expect the AUM scale of your fund management business in the next 12 months or sometimes say by 2030 so we can have more sense about the scale going forward? The second question is about financing cost. The company did a very good job in managing financing costs. Should we expect further optimization and improvement in financing costs in the next 12 months' time given the easing or global environment here? The third question is about the asset value. We did see some changes in the asset value recently. Can management comment about the changes or trend of the cap rate, or will there be any further compression in value of your asset?

It does scale going forward and the second question is about financing cost. So like the company did a very good job in managing the financing cost should we expect further optimization improvement in financing costs in the next 12 months fine given the easing or Gogo in pharma here and a tech Washington is about the asset values, we do.

Did see some changes in the asset value reasonably can management comment about our changes our trend at a capitalization rate or would there be any theater compression and valued of your asset. Thank you.

Yeah.

Okay.

I'll talk about the.

Financing costs.

Craig Trout: Thank you.

I think we have done well the last financial year, I think its part process part the market driving the.

George Hongchoy: I'll talk about the financing costs. I think we have done well the last financial year. I think it's part process, part the market driving the CNH cross-currency swap that gave us a premium. The fact that we were not fully hedged on RMB was a lever that we could play with. As of today, we are broadly and largely hedged across all our overseas assets. That said, the last two or three weeks was a surprise for all of us considering most of you are working in the banks, how fast the HIBOR has plunged. It all started from, I guess, the U.S. tariff liberation day. Everybody started focusing on U.S. fiscal positions, trade deficits, and suddenly the capital started flowing into Hong Kong.

C N hitch cross currency swap they gave us a premium.

And the fact that we were not fully hedge on RMB evils.

Lever that we could play with our subsidiary are broadly in la.

Lastly.

Across all our overseas assets.

That's it.

The last two or three weeks was a surprise all of US considering most of you are walking into banks on how fast the high ball has plunged.

And they all started from I guess, the U S tariff Liberation day, everybody stuff focusing on U S visco positions trade deficits and suddenly.

Capital start flowing into Hong Kong and also because of the CR C. A T. L. IPO that everybody is watching and the floor suddenly has picked up very quickly and high boy steep 2.5, and bouncing back up to 641 months.

George Hongchoy: Also because of the CATL IPO that everybody is watching, the flow suddenly has picked up very quickly and HIBOR has dipped to 0.5% and bouncing back up to 0.6% for one month. That said, clearly in the short term, and I echo HKMA's warning that it's going to be temporary that HIBOR be so low and swap offer rate is still hanging at about 2.8%, 2.9% for three years. We will benefit because one-third of our $55 billion debt is actually floating, and largely the floating is pegged to one-month HIBOR. I think we have an opportunity as far as I can see now that given the structural geopolitics that potentially HIBOR will continue to stay low, but not as low as today. I think that gives Hong Kong itself a great chance.

That said clearly in the short term.

And I Echo hitch Kim is a warning that it's going to be temporary that hi, Bobby So Logan software. It is still hanging in at about 2.8 to nine for three years, and we will benefit because one third of our 55 billion debt is actually floating and lots of philosophy. The floating is pegged to one month.

Highboy until I think we have the opportunity as far as I can see now that.

Given the structural geopolitics, they potentially high ball, who will continue to stay low, but not as low as today and I think that gets Hong Kong itself, a great chance and if you look at some of the peers.

Sure Hi, lead yet cause distress level, it's not so high.

And they also has given a boost to the cap.

George Hongchoy: If you look at some of the peers who are highly geared, clearly the stress level is not so high. That also has given a boost to the capital markets, equity markets, and equity options start to be opening up again. I think overall it's going to be a year that as of now, hopefully we can continue to manage risk on the financing. As for the credit margin, what we do clearly is run a tight process as usual. We have continued to see credit margin tightening between a good credit and an average credit and a not-so-good credit borrower. We are probably on the, I guess, a good-to-better credit borrower. We have seen credit margins continue to be very competitive for us. That said, there's only so much it can compress. We are probably at the marginal end of that credit margin compression.

After market equity market and equity options that will be opening up again so.

So I think overall, it's going to be a year that as of now hopefully we can consume minutes Ruth.

Financing for the credit margin I think what we do it clearly is a run of types of assays as usual and we are continuing to see credit margin tightening between a good credit and average credit and not so good credit.

Borrower and got Robbie on the I guess the.

To better credit or or so we have seen credit margins continued to be very competitive for us, but let's say there's only so much you can compress them all probably at a margin of animals.

Credit margin compression.

On devaluation and kept rates, Greg can you can supplement, but I think what we are seeing is.

Across the office and logistics portfolio rentals are not expected to be.

George Hongchoy: On the valuation and cap rates, Greg, you can supplement, but I think what we are seeing is across the office and logistics portfolio, rentals are not expected to be going up. Is there anything that's still managing a negative rental reversion? On an NPI rental basis determining valuation, I think we will continue to see stress or cap rate expansion for office and logistics. For retail, for Singapore and Australia, we expect things to be flattish. I think things are doing okay. Singapore rental reversion, as we've seen, it's almost 18%. Australia is coming to mid-single digits. I think that's okay. Hong Kong, a bit of stress, I think, from the cash flow basis again. Craig has articulated that rents continue to be slightly on the negative side.

Going up if anything is through managing a negative rental reversion. So on a M. P I rental.

Basis determining.

Valuation I think we will continue to see stress, okay expansion for office and logistics for retail for Singapore, Australia, We expect things to be flattish I think things are doing okay.

Oriental reversion as I've seen them, it's almost 18% Australia is coming to mid single digits. So I think that it's okay.

Hong Kong a bit of stress, adding from the cash flow basis at scale.

Greg has articulated that rents continue to be a slightly on the negative side, but if you look at cap rates I think Hong Kong, Singapore, Australia, possibly you are not expecting interest rates to be jumping that faas and that same supports it kept route.

George Hongchoy: If you look at cap rates, I think Hong Kong, Singapore, Australia, possibly we are not expecting interest rates to be jumping that fast. That then supports that cap rate from not expanding and hopefully, if there is a chance, a compression. The fund management business, I think we will say partners up and running. I think that's one point that we can say. There's a lot of legal restrictions for us to say a lot more. Let us under-promise and over-deliver. What I can say is compared to past meetings that we have, we have completed totally all the infrastructure set up, from documents to fund accounting systems to reporting, setting up the FM board, having the investment committee constituted. Everything's done. We're ready, and it is in progress. I don't think we can say a lot more than that.

From not expanding and hopefully if there is a chance of compression.

If a fund management business then.

We will save partners are up and running I think that's one point that we can say.

There's a lot of legal restrictions for us to say a lot more.

Let us under promise and over deliver but what I can say is compared to a Pos meetings that we have.

We have completed totally or the infrastructure set up the from documents to fun accounting systems, who you know reporting setting up there already have been or.

Or having the investment committee constituted.

Everything's done.

And so we were ready.

And.

It is in progress.

But I don't think we can say a lot more for more than that.

I think we you know continue on that theme of on the manage your expectation.

And under promise over deliver we won't give you a U M targets yet.

George Hongchoy: I think we continue on that theme of manage your expectation and under-promise over-deliver. We won't give you an AUM target yet. Sorry, you can't model it yet. Once we get to a point where, if we are successful in launching the first fund and you see the momentum, the type of investor who will come with us and the confidence that we will then be able to display to you rather than just talk about it without a concrete result, I think you'll be a lot more confident in the path that we are going. For today, I would rather reserve sharing with you too much detail.

Sorry, you had modeled it yet, but I think you know once we get to a point, where you know if we are successful in launching the first fund and you see the momentum the type of Investor will come with us and the confidence that we will then be able to do displays to you rather than just talk.

About it without a.

Concrete resolved I think it will be a lot more confidence in the path that we are going but I mean for today, Oh, rather reserve I'm sharing with you too much detail.

Okay any more questions Betsy.

Hi management. This is passing from DBS. Thank you for taking my question I have three questions. If I may 1st one is mainly on our operational in China I understand that the China reentry fashion is still under pressure mainly trap I a M.

Craig Trout: Okay. Any more questions? Percy?

[Analyst 2]: Hi, management. This is Percy from DBS. Thank you for taking my question. I have three questions, if I may. First one is mainly on operational in China. I understand that the China rental reversion is still under a bit of pressure, mainly dragged by Link Zhongguanchen. Just wondering, when are we expecting the end of the drag for this property in particular and in general for the rental reversion for other properties in terms of the outlook? Secondly, is on Reconnect. We saw that the CSRC, they recently reiterated Reconnect again. Just wondering if management can share any colors or insights regarding the timeline or implementation details for us. Thirdly, it's regarding the share buyback. We've seen that Link has done some share buyback, and those shares have been put in as treasury shares.

Junk Lantern just wondering when are we expecting at the end of the track fight. This property in particular and in general if I then our rental intervention for other properties are in terms of the outlook and secondly is on <unk> connect how we saw that the a C. S ICD.

Recently reiterated at reconnect again.

Just wondering if management can share any colors, our insights regarding the timeline I implementation details for S and sadly al it's regarding.

The share buyback I always seen that Lange has done some share buyback and dose harish has been put N S Treasury shares.

Just wanted to know what a management view regarding how what Hugh.

Oh man H D shares in the longer term or if you would even consider isn't a seller. These years. Thank you.

[Analyst 2]: Just want to know what management view regarding how would you manage these shares in the longer term or if you would even consider to sell out these shares. Thank you.

I'll talk to the mainland question first Percy So a zone crunch on where the fairway through the repositioning of that asset and it's predominantly the leasing activity.

Craig Trout: I'll talk to the mainland question first, Percy. At Zhongguanchen, we're a fair way through the repositioning of that asset, and it's predominantly leasing activity. We've seen a new competitor right next door open up its first stage in the last few weeks. Pleasingly, it's very early days, but the impact that we're anticipating from that has been less than we first thought, given the first stage of this project is predominantly food and beverage. We've perversely seen an increase in our footfall since the property opened next door, and the team there is making good progress. I'm hopeful over the course of this year, we will have been able to work through all of the strategies that we've anticipated there at Zhongguanchen. I will also say that Beijing as a market is very challenging.

We've seen a new competitor right next door open up its first stage in the last few weeks.

Pleasingly and again at her here early days, but the impact that we're anticipating from Nash.

In less than we first the worse given the first stage of this project is predominantly food and beverage. So perversely seen an increase in our portfolio since the property opened next door.

And the team there is making good progress somehow fly over the course of this year, we will have been able to.

Work through all of the strategies that we've anticipated there at some punch on but I will also say that Beijing as a market is very challenging of all the markets that we operate in it is very very challenging at a at a consumer level.

For Shanghai is is pretty stable and certainly in Shenzhen.

Craig Trout: Of all the markets that we operate in, it is very, very challenging at a consumer level. Shanghai is pretty stable, and certainly in Shenzhen and Guangzhou, we're seeing a much better outlook. Probably the most pleasing thing for me more broadly is ongoing tenant demand in mainland China remains strong from local brands, particularly for leisure. Sports brands are growing like crazy in mainland China, and we're getting our fair share of that, which is pleasing. I will just close off by saying, as we said during the prepared remarks, if we exclude Zhongguanchen, we printed positive reversions through the shopping centre portfolio for this year. The same strategy that we're embarking on here in Hong Kong about preserving occupancy remains consistent for us in mainland China as well.

Shenzhen.

In Guangzhou, we're seeing much better outlook.

Probably the most pleasing thing for me more broadly is ongoing tenant demand in mainland China remained strong from local brands.

Kelly for leisure sports brands are growing like crazy in mainland, China, and we're getting our fair share of that which is pleasing and I will just close off by saying if again as we said during the prepared remarks, if we exclude some fund Sean we've printed positive revisions through the shopping center portfolio for this year.

Yeah.

And again the same strategy that we're embarking on here in Hong Kong about preserving occupancy.

Mine's consistent for us in mainland China as well.

Turning to control when we first invested in it.

Wassa extremely attractive you know its a district.

Would put forward that doesn't grow.

George Hongchoy: I think Zhongguanchen, when we first invested in it, was extremely attractive. It's a district with footfall that doesn't grow old, right? Very unlike any other shopping mall that we have, partly because it's all university students, young people, tech companies all around that area. Since then, you have tech companies laid off. You have New Orient being attacked by the government. They shrunk the business, and they are very close to our mall. We have a competitor next door that didn't perform at all and is now renovating and upgrading. The good thing is there is no new supply. The government is not allowing new supply within the five-ring road, and this is within that area. There is really no new supply except that the mall next door, which was poorly run, is now being upgraded. That gives the competition that Greg mentioned.

Right.

Unlike any other shopping more that we have a.

Probably because it's all university students young people tap companies or around that area and then since then you have tech company lay off you have new oriented being attacked by the government. So these days for all of their business and they are very close to our more we have a competitor next door.

Or does that didn't perform at all and now renovating and upgrading.

The good thing is there is no new supply the government, that's not allowing new supply within the five ring role in visits within that area. So there was really no new supply except that the more next door, which was poorly run. That's now been upgraded so that that gives the competition that Greg mentioned, but I think there is some stabilized.

Asia and in the Tech sector people are hiring will come back.

And that's where a lot of the software companies are.

George Hongchoy: I think there is some stabilization in the tech sector. People who are hiring will come back, and that's where a lot of the software companies are. The university continues to, you know, the attendance hasn't really dropped. Maybe helped by politics that maybe there will be more students at Chinese universities. I think the market has changed since we invested, and hopefully we can manage through this cycle and see it rebound. Reconnect-wise, it has been talked about for a long time. We have no insight when the timing is, but I think what we are encouraged by the comment by CSRC is that they started to talk about it. For the longest time, it's SFC Stock Exchange, Hong Kong Stock Exchange talking about it. China has remained silent. Recently, even the head of CSRC is talking about it. I think the timing is sooner.

And the University continue to you know.

The attendance hasn't really drop and maybe help by politics that maybe there will be more students.

Chinese universities, and so I think.

The market has changed since we invested in and hopefully we can manage through the cycle and see it rebound.

<unk> reconnect wise.

We it hasn't been talked about for a long time, we have no insight when the timing is.

But I think what we are encouraged by the comment by C. S. O. C is that you know that they started to talk about it you know for the longest time is SFC stock exchange stock Hong Kong stock exchange talking about China have remained silent.

And then recently even ahead of C. S. Obviously, you're talking about so I think the timing is sooner.

I think that will increase our liquidity to our stock because I think we we traded relatively better than a lot of the sea rights I think we are a attractive proposition as a result, the IR team has to you have done a lot of road show in China, We will actually after this round of resulting an honest when going into China as well.

George Hongchoy: I think that will increase liquidity to our stock because I think we trade relatively better than a lot of the C-REITs. I think we are an attractive proposition. As a result, the IR team has actually done a lot of roadshow in China. We will actually, after this round of result announcement, be going to China as well. We hope that when it eventually comes, we will be benefiting from it. Share buyback? Yep. On the share buyback, I think as a background, the last financial year, we bought back about 17 million shares at about $33 per unit. That amounts to about $550-$570 million. According to the new stock exchange rules, you have the ability to either leave it in treasury or you can cancel it, which was what was done in the past. Clearly, leaving in treasury by accounting is eliminated anyway.

<unk>. So we hope that you all when when it eventually comes it will cover a will be benefiting from it.

Share buyback.

On the share buyback I think that as a background the last financial year, we bought back about 17 million shares.

At about $33 per unit.

Amounts to about 550 517 million.

And according to the new stock exchange rules, you have the ability to either leave it in treasury or you can cancel it which was what was a Pos and.

And clearly, leaving treasury by accounting is eliminated anyway.

That gives us the opportunity to hold that in future. If we wont say for example today is the acquisition and we're going to have a mix of equity option and that clearly this can be taken up because there's actually a game.

George Hongchoy: That gives us the opportunity to hold that in the future if we want. For example, today, there's an acquisition and we want to have a mix of equity option, and that clearly can be taken out because there's actually a gain. I think it's a good thing. It's not new. I think many exchanges have this toolkit for issuers, and Hong Kong is probably a bit late into this, but having this does give us the flexibility. We'll leave it there for now. It's not a big number considering the overall scheme of things, but it does give a bit of flexibility for us.

So I think it's a good thing it's not new I mean, many exchanges have this.

This toolkit for issuers in Hong Kong was probably a bit.

Late into this by having this does give us that flexibility.

So clearly we will leave it there for now it's not a big number considering the overall scheme of things, but it does gives us flexibility for us.

Okay. Thanks, Joey take just last two questions call here in front of me.

Hi.

Craig Trout: Okay, thanks. Shall we take just last two questions? Carl here in front here.

Karl Choi from Bank of America, two questions first Ken can you give a little bit more color on the new executive management plan.

[Analyst 1]: Hi, Carl Choi from Bank of America. Two questions. First, can you give a little bit more color on the new executive management plan? You mentioned there's going to be a new plan to be implemented. Any major changes compared to the old plan? Second, going back to the cost optimization program, just want to ask if there's any quantitative target that you're willing to share, whether it's the cost savings sort of amount or whether it's in terms of holding the cost increase to a certain %. Thanks.

There's going to be a new plan to be implemented any major changes compared to the old plant and then second going back to the cost optimization program. Just wanted to ask if there is any quantitative target that you're willing to share whether it's the cost savings are sort of amount or whether it's too in terms of the holding the cost increase to assign a percentage. Thanks.

Yeah.

As I mentioned the review that's done which we've done on a regular basis I think the last major review was done almost 10 years ago with some minor changes.

George Hongchoy: As I mentioned, the review that's done, which we've done on a regular basis, I think the last major review was done almost 10 years ago with some minor changes during the last 10 years. We just completed a more comprehensive review recently led by the Remuneration Committee with external consultants, a number of meetings with unitholders. I think I want to report probably not fair to just highlight a few key points and miss out others at this forum. You can see a lot more detail in the annual report. I urge you to just wait and look at that in more detail. Suffice to say, there are a few key points and the key principle listed here. One is that we want to ensure that there is a clear alignment of interests between the executive team and our unitholder.

During the last 10 years. So are we just completed a more comprehensive review recently led by our Remuneration Committee.

With external consultants, a number of meetings with our unit holders. So oh, what a what I'll report probably not not fair to just highlight a few key points and miss out others.

This forum, but you can see a lot more detail in the annual reports or urge you to just wait and look at that in more detail suffice to say there are a few key points and the key principle listed here.

One is that we want to ensure that there is a clear alignment of interest between the executive team and our unit holder and we want to increase the disclosure so that that alignment is clear.

I don't think that it was not aligned properly in the past, but I think disclosure have distorted the picture and I think the disclosure that you will see this year will help you to understand the alignment a lot better so that hopefully is an improvement of.

George Hongchoy: We want to increase the disclosure so that that alignment is clear. I don't think that it was not aligned properly in the past, but I think disclosure has distorted the picture. I think the disclosure that you will see this year will help you to understand the alignment a lot better. That hopefully is an improvement. Some of the targets have changed. Some of the KPIs have changed. The change really is to make sure that they are indeed more aligned. The long-term incentive plan, we will actually disclose the exact KPIs. They are absolute total unit return and relative total unit return and carbon intensity reduction. Adding a sustainability target is important for us as a business because obviously we have always been a leader in this area. We have a carbon reduction target that we announced many years ago, and we continue to be on that path.

Some of the targets have changed some of the Kpis have changed and the change really to make sure that they are indeed more align the long term incentive plan, we will actually disclose the exact kpis and they are.

Absolute total unit return and relative total unit return in carbon intensity reduction and.

So, adding a sustainability target is important for us as a business because there were obviously, we will have always been a leader in this area and we have a carbon reduction.

Target that we announced many years ago, and we continue to be on that path.

And then on the short term incentive again, various measurable targets from both our financial results in the Nonfinancial result, based on say a reversion occupancies in and all of that and oversee we we have a.

George Hongchoy: On the short-term incentive, again, various measurable targets from both financial results and the non-financial result based on, say, reversion, occupancies, and all that. Obviously, we have a target to launch a fund, despite not talking too much about it. That's also one of the targets that we need to achieve. You'll see more details in there and a lot more disclosure. The disclosure that we also have added includes both the numbers relating to grant and numbers relating to the final award at vesting. The confusion in the past is we focus a lot more on the grant, and it's a little bit difficult for you to find the number at the final vesting, although it is somewhere in the report. We just want to make it easier for you by putting it all in two pages rather than all over the report.

Target to launch a fun despite not talking about too much about it. So that's also one of the targets that we need to achieve but you'll see more talk more in more details in there and a lot more disclosure and the disclosure that we also have added.

Inclusive of the numbers relating to grant.

And numbers relating to the final award adversity and the confusion that passes we focus a lot more at the grant and there's a little bit difficult for you to find the number the final vesting. Although it is somewhere in the report and we just wanted to make it easier for you by putting it all in two pages.

Other than all the other report so hopefully that it will create a little bit more transparency.

Which we thought we had but it's a little bit difficult to fine and we want to make it easier for our reader. So that's something that you would see so local report first and if theres any question and feedback to come back to us.

George Hongchoy: Hopefully, that will create a little bit more transparency, which we thought we had, but it's a little bit difficult to find, and we want to make it easier for our reader. That's something that you'll see. Look at the report first, and if there's any question and feedback, do come back to us. It's something that the remuneration committee, and you'll see in the report that they've met over 10 times over the last year, a lot of work in order to achieve this result. Hopefully, also with the consultation of some of our unitholders, allow us to have a scheme that will be acceptable to the market. We'll talk more after you've read it.

But it's something that the remuneration committee and you'll see it in the report that they've met over 10 times over the last year a lot of work in order to achieve this result, our hope the auto with the consultation of the universe or some of our unit holders a.

Allow us to have a scheme that.

Yeah, we will be acceptable to the market and.

We'll talk more after you read it.

Okay. I think we have run out of time on this is really burning question.

Otherwise thank you for all your questions and thank you for coming thank you very much.

Craig Trout: Okay, I think we have run out of time, unless there's a really burning question. Otherwise, thank you for all your questions, and thank you for coming.

[noise] Hello, good afternoon.

George Hongchoy: Thank you very much.

So welcome to you all lengths and you report it plays out.

Anyway, sorry to your presentation and Christie director of Investor relationships. So let me introduce a while they have on the stage today. So we'll have our Gretzky allo judge Hong Chi.

[Analyst 2]: Good afternoon, everyone. Welcome to our Link's annual results presentation. I'm Christy, Director of Investor Relations. Let me introduce what we have on the stage today. We have our Group CEO, George Hongchoy, our CFO, Ko Sheng Ng, our COO, Craig Trout, and our CCDO, Ronald Tam. Here are our agendas today. If you want to download our presentation or our announcement, you can scan the QR code here. I'll give you a few seconds if you want to. When you're ready, let's start. Let me hand the floor to

Oh, I see I saw Kashi <unk>, ausiello petrol and M. A C. C D. L. Route Tam so here is our agenda today.

So if you want to download our presentation and our announcements you can scan the cow Coke yeah, sorry, I guess you have the answer again, if you want here.

Yeah.

Okay.

Okay. When you all got why are they less that so let me hand, the thought here our judge Thank you well thank you Christy.

Let me start with this slide which gives you a highlight of the presentation that we will be giving today.

Christy Ng: George. Thank you.

Amidst a very challenging macro economic environment and serious business challenges in Hong Kong and mainland China.

George Hongchoy: Thank you, Christy. Let me start with a slide which gives you a highlight of the presentation that we'll be giving today. Amidst a very challenging macroeconomic environment and serious business challenges in Hong Kong and mainland China, I'm happy to report that Link managed to deliver a very solid set of results, which are credit to the whole Link team. We have seen valuations come under pressure, and we expect the environment to continue to be very challenging in the year ahead. Given this, we have initiated a number of efforts aimed at reinforcing our resilience and to protect our DPU. Central to this is a long-term diversification strategy, which has helped us to protect our earnings in recent years and will continue to move forward with this.

I'm happy to report that link managed to deliver a very solid set of results, which are credit to the whole link team.

We have seen valuations come under pressure and we expect the environment to continue to be very challenging in the year ahead.

Given this we have initiated a number of efforts aimed at reinforcing our resilience.

And to protect our DP U sand.

Central to this is a long term diversification strategy, which has helped us to protect our earnings in recent years and will continue to more move forward with this.

As mentioned at the start linked rates result for the financial year solid.

And that reinforce our resilience and in face of this uncertain macro condition and diverse intensify what's the challenges for all of our business.

George Hongchoy: As mentioned at the start, Link REIT's results for the financial year are solid, and that reinforces our resilience in the face of this uncertain macro condition and intensifies the challenges for our business. While we are pleased to be able to deliver another year of growth in distributable income to our unit holder with an increase of 4.6% year-on-year, which would stress that some of the positive contributions are one-off items. We achieved the DPU growth of 3.7% year-on-year. However, the NAV per unit declined 9.6% year-on-year, largely on decreasing asset valuation from cap rate expansion in most markets. We retain a strong financial position with net gearing at a healthy 21.2%, and this, in addition to robust credit ratings and competitive financing costs, provides a solid foundation to navigate the challenges ahead and enables us to capitalize on potential opportunities. We move into business and strategy.

While we are pleased to be able to deliver another year.

Year of growth in distributable income to our unit holder with increase of four 6% year on year, which would stress that some of the positive contributions are one off items.

We achieved a TPU growth of three 7% year on year.

However, they earn a fee per unit declined nine 6% year on year, largely on decreasing asset valuation from cap rate expansion in most markets.

We retain a strong financial position with net gearing at a healthy 21, 2% and this in addition to robust credit ratings and competitive financing cost provides a solid foundation to navigate the challenges ahead and isn't able us to capitalize on potential opportunities.

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Remove into business and strategy.

Linguists evolve over the past 20 years with active management and asset recycling to drive growth since 2015, we expanded into mainland, China, Australia, and Singapore, reinforcing all of Australia, It's our diversification strategy and solidified our position.

George Hongchoy: Link has evolved over the past 20 years with active management and asset recycling to drive growth. Since 2015, we expanded into mainland China, Australia, and Singapore, reinforcing our diversification strategy and solidifying our position as one of Asia's leading property investors and managers. A lot has been achieved in these 20 years, but it's only the beginning, and we are at an important and exciting pivotal point in Link's development under Link 3.0. You can see from here how the Link REIT portfolio has undergone significant transformation over the years. From the IPO time, our portfolio consisted of 81% retail and 19% car parks, only in Hong Kong. Throughout all these years, we have now transformed into a more diversified portfolio across different geographies and property types.

<unk> S. One of Asia's leading property investors and manager.

A lot has been achieved in these 20 years, but there is only the beginning and.

And we are that important and exciting pivotal point in links development underlying free zero.

You can see from here, how the linked REIT portfolio has undergone significant transformation over the years from.

From the IPO time, our portfolio consisted of 81% retail and 19% car parks only in Hong Kong.

And for all these years, we have now transform into a more diversified portfolio across different geographies and property types.

We have consistently shown that we are able to unlock value for our unit holders even during challenging periods such as the global financial crisis, the COVID-19, pandemic and social unrest in Hong Kong.

George Hongchoy: We have consistently shown that we are able to unlock value for our unit holders even during challenging periods such as the global financial crisis, the COVID-19 pandemic, and social unrest in Hong Kong. Since 2005, we have delivered annualized total returns of 10.9%, which outperform the Hang Seng Index and the Hang Seng Property Index. Our portfolio value has also grown more than five-fold since IPO. The chart shows how the diversification we initiated 10 years ago has enabled us to continue to grow these past few years and become an increasingly sizable portion of our NPI. Looking forward, we'll continue to pursue further portfolio optimization through Link 3.0 strategy, and we will be updating on this in the presentation. Our commitment to value creation is reflected across all aspects of our business, including our asset management capabilities supported by operational efficiency, community engagement, and innovation.

Since 2005, we have deliver annualized total return of 10, 9% and up which outperform the handset index and the hang Seng property index.

Our portfolio value has also grown more than fivefold since IPO.

The chart shows how the diversification we initiate a 10 years ago has enable us to continue to grow these past few years and become an increasingly sizable portion of our N P. I.

Looking forward, we'll continue to pursue further portfolio optimization fooling frequency or strategy and we will be updating on this in the presentation.

Our commitment to value creation is reflected across all aspect of our business, including our asset management capabilities supported by operational efficiency.

Community engagement and innovation.

Proven exit track record and diversify and diverse.

Linked REIT portfolio are key drivers for our success and for further detail will refer to the annual report, where we will disclose further.

George Hongchoy: Our proven exit track record and diverse Link REIT portfolio are key drivers for our success. For further detail, we'll refer to the annual report where we'll disclose further. During the year, we undertook several key strategic initiatives to enhance our resilience, and let me highlight a few of these. It was another busy year of portfolio optimization, and we continue to improve operational efficiency. Greg will provide more details in his section. As for the investment management business, we put in place a pan-regional team and infrastructure. The foundations are now fully set for the business. Lastly, through the nomination committee, our appointments to the board were made, including the chair and INEDs. Let me first pass to FKS to share with us the financial updates.

During the year, we undertook several key strategic initiatives to enhance our resilience and let me highlight a few of these.

It was another busy year of portfolio optimization, and we continue to improve operational efficiency.

Greg will provide more details in his section as for the investment management business, we put in place a pan regional team and infrastructure. The foundations are now fully set for the business.

And lastly, food the nomination committee our appointment to the board were made including the chair and I N E DS.

I mean first pass through kiosks to share with us a financial update.

Thank you Josh good afternoon to everyone. Thank you for coming.

We have seen steady growth across our portfolio during the last financial year.

In Hong Kong, we achieved total growth in revenue and NPI.

Ko Sheng Ng: Thank you, George. Good afternoon to everyone. Thank you for coming. We have seen steady growth across our portfolio during the last financial year. In Hong Kong, we achieved total growth in revenue and NPI. This was driven by relatively better retail sales and savings in utility expenses. In mainland China, both total revenue and NPI are also up. This was mainly boosted by the full-year contribution of Link Plaza Qibao. On the overseas front, our retail assets in Singapore and Australia recorded nearly full occupancies and positive rental reversions. Our low gearing helped us to keep borrowing costs competitive and weather the storm of valuation declines. I'll come back with more details on capital management and valuation in a while. In this slide, we are showing a simplified version of our P&L.

This was driven by relatively better retail sales and savings and utility expenses.

In mainland China, both total revenue and M. P. I also up.

This was mainly boosted by the full year contribution of Lincoln Plaza cheaper.

On the overseas front, our retail assets in Singapore and Australia.

Product nearly four occupancies and positive rental revisions.

A low gearing helped us to keep borrowing cost competitive.

And weather the storm of valuation declines.

I'll come back with more details on capital management and valuation in a while.

In this slide we are showing a simplified version of our P&L.

Despite algae, enabling up 19, 5% year on year.

A large part was due to LTI scheme adjustment.

Legal and consulting fees and uncapped the life expenses from exploring M&A deals.

Ko Sheng Ng: Despite our G&A going up 19.5% year-on-year, a large part was due to LPI scheme adjustment, legal and consultant fees, and uncapitalized expenses from exploring M&A deals. Excluding these items, G&A would have been up 6.9%. Another item to take note would be the net finance cost. The increase was due to the acquisition of Link Plaza Qibao. Excluding such costs, net finance costs decreased by 1.4% due to effective interest rate hedging. Back to valuation, total portfolio value as of 31st March 2025 declined by 4.7%, half on half, mainly due to, firstly, cap rate expansion in Hong Kong and mainland China and FX depreciation against Hong Kong dollar for the overseas. Our robust FX hedging strategy effectively mitigated the extent of the decline in the total value of investment properties in Hong Kong dollar terms. Lastly, capital management.

Excluding these items G&A would have been up six 9%.

Another item to take note will be the net finance cost the.

The increase was due to the acquisition of Lincoln Plaza cheaper.

Excluding such costs net finance cost decreased by one 4% due to effective interest rate hedging.

Back to valuation.

Total portfolio value as of 31st March two zero to five declined by four 7% half on half mainly due to.

Firstly kept recompression expensive expansion in Hong Kong, and mainland, China, and FX depreciation against Hong Kong dollar for the overseas.

Our robust FX hedging strategy effectively mitigate the extent of the decline in the total value of investment properties in Hong Kong dollar terms.

Lastly, capital management, our robust financial position is well supported by a healthy balance sheet.

Shown by the key metrics here.

As of 31st March two zero to five next.

Ko Sheng Ng: Our robust financial position is well supported by a healthy balance sheet as shown by the key metrics here. As of 31st March 2025, net gearing remained low, while the average borrowing cost remained competitive. Six-deck ratio is in the upper range of 50 to 70%, and we'll continue to closely monitor the movement of interest rates. Our financial stability is reinforced through FX risk management, which includes extensive hedging of non-Hong Kong dollar distributable income and overseas assets. Over the financial year, we have been repaying our debt. Debt balance as of 31st March 2025 is reduced to $54 billion Hong Kong dollars from $60 billion a year ago. Our A ratings from all three credit agencies enable us to secure favorable terms for future funding needs, and we have achieved a lower overall margin in refinancing this year.

Gearing remains low while the average borrowing costs remain competitive.

Fix that ratio is in the upper range of 50% to 70%.

And we will continue to closely monitor the movement of interest rates.

All financial stability is reinforced through FX risk management, which includes extensive hedging of non Hong Kong dollar distributable income and overseas assets.

Over the financial year, we have been repaying our debt.

That balance as of 31st much two zero to five is reduced to 54 billion Hong Kong dollars from 60 billion a year ago.

Our a ratings from all three credit agencies enable us to secure favorable films for future funding needs and we have achieved a lower overall margin in refinancing this year.

Furthermore, we remain well below the key covenant thresholds set by the rating agencies.

This gives us headroom to catch you at acquisitions and other opportunities we need it.

Ko Sheng Ng: Furthermore, we remain well below the key covenant thresholds set by the rating agencies. This gives us headroom to capture acquisitions and other opportunities when needed. Let me pass over to Greg for operational highlights. Thank you.

Let me pass over to Greg for operational highlights. Thank you. Thanks.

Thanks, Chris and good afternoon, everyone.

And I'll start with our Hong Kong retail segment performance first.

The retail businesses in Hong Kong continued to face market wide challenges amid intensifying competition rising costs and cross border travel.

Craig Trout: Thanks, KS, and good afternoon, everyone. I'll start with our Hong Kong retail segment performance first. Retail businesses in Hong Kong continue to face market-wide challenges amid intensifying competition, rising costs, and cross-border travel. This has seen total Hong Kong retail sales decline 7% over the period. Portfolio sales for us at Link have declined at a lower rate over the same period at -3%, and this is given our focus on food and non-discretionary trades. Leasing reversions over the period have turned slightly negative for the full year at -2.2%, with ongoing pressures in particular in supermarket and Chinese restaurant categories. Occupancy across our portfolio has remained stable and has been preserved at a very solid 97.8%, and this ensures a stable and predictable income stream.

This is seen total Hong Kong retail sales declined 7% over the period.

Portfolio sales for us at link have declined at a lower rate over the same period at negative 3%.

And this is given our focus on food and non discretionary trades.

Leasing revisions over the period of turned slightly negative for the full year at negative 2.2% with ongoing pressures in particular in supermarket and Chinese restaurant categories.

Occupancy across our portfolio has remained stable and has been preserved at a very solid 97, 8% and this ensures a stable and predictable income stream.

Hello, This is saying revenue growth of one 5% year on year and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs.

Craig Trout: All of this has seen revenue growth of 1.5% year-on-year, and such results demonstrate the ongoing relevance and resilience of our portfolio with the primary purpose of servicing Hong Kong people for their essential daily needs. In response to the evolving market and landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix. For the financial year, we successfully signed over 600 new leases, including the introduction of over 200 new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period. Additionally, we continue to focus on emerging trends, particularly across fast food and food and beverage categories, as well as family entertainment and traditional Chinese medicine clinics to enrich our offerings and continue to drive improved food for all.

In response to the evolving market landscape, we continue our leasing efforts to service emerging demand and continue to optimize our tenancy mix.

For the financial year, we successfully signed over 600, new leases, including the introduction of over 200, new businesses to our portfolio, whilst maintaining a healthy 80% retention rate on leases that expired over the period.

Additionally, we continue to focus on emerging trends.

Particularly across fast food and food and beverage categories as well as family Entertainment and traditional Chinese medicine clinics to enrich our offerings and continue to drive improved footfall.

By strategically managing our deep tenant customer relationships with brands across Hong Kong mainland, China, and Irish National portfolios, we aim to enhance the attractiveness of our retail assets and stay relevant with consumer preferences.

Craig Trout: By strategically managing our deep tenant-customer relationships with brands across Hong Kong, mainland China, and our international portfolios, we aim to enhance the attractiveness of our retail assets and stay relevant with consumer preferences. Now turning to our Hong Kong car park and related businesses, we achieved 1.7% year-on-year revenue increases, mainly due to higher tariffs. During the year, we introduced a new car park management system designed to enhance our operational efficiencies and also maximize utilization. This AI-powered system enables us to pilot systems such as dynamic pricing schemes, as well as the introduction of new products and services. One of those new products is the One Link Pass, which offers a flat monthly rate and allows pass holders to park at hourly bays in designated car parks across Hong Kong. This product has proven to be very popular amongst customers since its recent launch.

Now turning to our Hong Kong car parking related businesses, where we achieved 1.7% year on year revenue increases mainly due to higher tariffs.

During the year, we introduced a new car Park management system designed to enhance our operational efficiencies and also maximize utilization.

This AI powered system enables us to pilot system, such as dynamic pricing schemes as well as the introduction of new products and services.

One of those new products is the one linked Pos which offers a flat monthly rice and allows pass holders to park at Alibaba as in designated Cowpox across Hong Kong.

This product has proven to be very popular amongst customers since its recent launch.

We will continue to develop innovative products to enhance revenue utilization and increased car parking traffic.

Now I'll move to mainland China retail.

Craig Trout: We'll continue to develop innovative products to enhance revenue, utilization, and increase car parking traffic. Now we'll move to mainland China retail. Over the year, we've seen that Chinese consumer spending has remained relatively subdued, with portfolio performance differing between North and South. Our Southern assets continue to deliver strong results, while assets in the North faced headwinds amid a softer market environment. Occupancy, however, remains solid at just under 96%, and rental reversion improved from negative 3.2% at the half to 0.7% for the full year. If we excluded Link Plaza Zhongguan Chan in Beijing, where we're undertaking significant refurbishment and asset enhancement works, rental reversion across the balance of our shopping centres in mainland China is strong at 7.6%.

And over the year, we've seen the Chinese consumer spending has remained relatively subdued.

With portfolio performance differing between north and south.

Our southern assets continued to deliver strong results while assets in the north face headwinds amid softer market environment.

Occupancy however remained solid at just under 96% and rental reversion improved from negative three 2% at the half two.

2.7 of 1% for the full year.

If we excluded linked clauses on Sunshine in Beijing, we were undertaking significant refurbishment in asset enhancement works rental reversion across the balance of our shopping centers in mainland China is strong at seven 6%.

In February last year as you all know we acquired the remaining 50% interest in linked Plaza trade balance Shanghai.

I'm pleased to confirm that we've successfully integrated the assets and a very experienced and incentivize the team to link.

Craig Trout: In February last year, as you all know, we acquired the remaining 50% interest in Link Plaza Qibao in Shanghai, and I'm pleased to confirm that we've successfully integrated the assets and a very experienced center-based team to Link. We continue to enhance our mainland portfolio's performance through active asset management and significant strategic enhancements across our portfolio. Now we'll move on to our international retail portfolio, where in Singapore, the 99.6% high occupancy rate shows that there is robust leasing demand from tenants, including new to market overseas retailers, in particularly F&B operators. Overall, sustained demand for suburban Singapore retail, in addition to the dominant strategic location of our malls, has delivered strong 17.8% reversion over the period.

We continue to enhance our mainland portfolios performance through active asset management and significant strategic enhancements across our portfolio.

Now, we'll move on to our international rates how portfolio, we're in Singapore, the 99.6% high occupancy right shows that there is robust leasing demand from tenants, including new to market overseas retailers, and particularly F&B operators.

Overall sustained demand for suburban Singapore reach aisle.

In addition to the dominant strategic location about models as delivered strong 17.8% reversion over the period.

In Australia, our retail centers their vocera sustained need full occupancy at 99%.

And productivity was driven by the ongoing introduction of your brands to optimize our trade mix as well as higher overall footfall in general positive activity in the Sydney CBD, where our three properties are located.

Craig Trout: In Australia, our retail centers there have also sustained near full occupancy at 99%, and productivity was driven by the ongoing introduction of new brands to optimize our trade mix, as well as higher overall footfall and general positive activity in the Sydney CBD, where our three properties are located. As a result, tenant sales grew at 7.7% year-on-year, whilst we achieved a solid reversion rate on expiring leases at 4.3%. I'll point out, in addition to these positive trends in Australia, it's important to note the income growth is underpinned by the annual increases contracted in our leases there, and this sees us at a weighted average 4.7% per annum on those leases. Now we'll move on to our international office portfolio, where we have a relatively long WALE of 4.4 years, which underpins the resilience of that portfolio.

As a result tenant sales grew at seven 7% year on year, whilst we achieved solid reversion rate on expiring leases at four 3%.

I'll point out in addition to these positive trends in Australia. It's important to note. The income growth is underpinned by the annual increase is contracted in our leases there.

And this saves us at a weighted average four 7% per annum on those leases.

Now, we'll move on to our international office portfolio, where we have a relatively long wale of 4.4 years, which underpins the resilience of that portfolio.

Speculated fit outs continue to be well received by small to mid size office tenants in the Australian office market to help speed up the leasing process and reduce friction which supports leasing outcomes and portfolio occupancy.

Craig Trout: Speculative fit-outs continue to be well received by small to mid-sized office tenants in the Australian office market to help speed up the leasing process and reduce friction, which supports leasing outcomes and portfolio occupancy. Favorable supply and demand dynamics in the Sydney office market in particular are also expected to be supportive of leasing activities and further positive net absorption there. This is given limited new supply of floor space in the short to medium term. As for mainland China logistics, thanks to the efforts of our leasing team, the portfolio continued to maintain a high occupancy of 97.4%, with three of our five assets there nearly fully let.

Favorable supply and demand dynamics in the Sydney office market. In particular are also expected to be supported but leasing activities and further positive net absorption there.

This is given limited new supply of floor space in the short to medium term.

As for mainland China logistics, thanks to the efforts of our leasing team the portfolio continued to maintain a high occupancy of 97, 4%.

With three of our five assets they are nearly fully.