CapitaLand Ascendas Full Year 2025 CapitaLand Ascendas REIT Earnings Call | AllMind AI Earnings | AllMind AI
Full Year 2025 CapitaLand Ascendas REIT Earnings Call
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Speaker #2: Good evening. Welcome to CapitaLand Ascendas Q4 2025 results briefing. I'm Johanna from the investor relations team. Thank you for joining us here today in person at CapitaLand Tower.
Johanna: Good evening. Welcome to CapitaLand Ascendas REIT full year 2025 results briefing. I'm Johanna from the Investor Relations team. Thank you for joining us here today in person at CapitaLand Tower. For those joining us remotely, please note that this briefing is recorded and will be made available on our website. The session will start shortly with a presentation by Andrea from the Investor Relations team, followed by Q&A with the management. First and foremost, I would like to introduce the panel this evening. We have Mr. William Tay, our Chief Executive Officer. On his right, we have Ms. Li Si Khoo, our Chief Financial Officer. And last but not least, we have Mr. James Goh, Head of Portfolio Management. Before we start, we would like to lay down some housekeeping rules.
Operator: Good evening. Welcome to CapitaLand Ascendas REIT full year 2025 results briefing. I'm Johanna from the Investor Relations team. Thank you for joining us here today in person at CapitaLand Tower. For those joining us remotely, please note that this briefing is recorded and will be made available on our website. The session will start shortly with a presentation by Andrea from the Investor Relations team, followed by Q&A with the management. First and foremost, I would like to introduce the panel this evening. We have Mr. William Tay, our Chief Executive Officer. On his right, we have Ms. Li Si Khoo, our Chief Financial Officer. And last but not least, we have Mr. James Goh, Head of Portfolio Management. Before we start, we would like to lay down some housekeeping rules.
Speaker #2: And for those joining us remotely, please note that this briefing is recorded and will be made available on our website. The session will start shortly with a presentation by Andrea from the investor relations team, followed by Q&A with the management.
Speaker #2: First and foremost, I would like to introduce the panel. This evening, we have Mr. William Tay, our Chief Executive Officer. On his right, we have Ms. Ku Li Si, our Chief Financial Officer. And last but not least, we have Mr. James Goh, Head of Portfolio Management.
Speaker #2: Before we start, we would like to lay down some housekeeping rules. During the Q&A, if you have any questions, please raise your hands, and my colleagues at the back will hand you a microphone.
Johanna: During the Q&A, if you have any questions, please raise your hands and my colleagues at the back will hand you a microphone. Please try to keep to two questions each time, and if there's more, we will come back to you. For those joining online, you may post your questions remotely via the chat box. And with that, I'll hand over the time now to Andrea, who will bring us the highlights of the results. Andrea, please.
Full Year 2025 CapitaLand Ascendas REIT Earnings Call
Operator: During the Q&A, if you have any questions, please raise your hands and my colleagues at the back will hand you a microphone. Please try to keep to two questions each time, and if there's more, we will come back to you. For those joining online, you may post your questions remotely via the chat box. And with that, I'll hand over the time now to Andrea, who will bring us the highlights of the results. Andrea, please.
Speaker #2: Please try to keep to two questions each time. And if they're small, we will come back to online, you may post your questions remotely via the chat box.
Speaker #2: And with that, I'll hand over the time now to Andrea who will bring us the highlights of the results. Andrea, please.
Andrea: Thank you, Johanna. Welcome, and thank you, everyone, for joining this briefing, physically as well as online. I will give a brief overview of the financial and operational performance of CapitaLand Ascendas REIT, as well as some highlights of our investment. First, some key numbers. CLAR continued to deliver growth in distributable income against a backdrop of economic uncertainty. For FY 2025, the distributable income was SGD 678.3 million. This is 1.4% higher than the previous year. The better performance was driven by accretive acquisitions of quality assets in 2025 and supported by the prudent management of operating and interest expenses. The higher distributable income translated to a distribution per unit of 15.005 cents.
Andrea Ng: Thank you, Johanna. Welcome, and thank you, everyone, for joining this briefing, physically as well as online. I will give a brief overview of the financial and operational performance of CapitaLand Ascendas REIT, as well as some highlights of our investment. First, some key numbers. CLAR continued to deliver growth in distributable income against a backdrop of economic uncertainty. For FY 2025, the distributable income was SGD 678.3 million. This is 1.4% higher than the previous year. The better performance was driven by accretive acquisitions of quality assets in 2025 and supported by the prudent management of operating and interest expenses. The higher distributable income translated to a distribution per unit of 15.005 cents.
Speaker #3: Johanna. Welcome, and thank you, Thank you, everyone, for joining this briefing physically as well as online. So I will give a brief overview of the financial and operational performance of CapitaLand Ascendas Q4, as well as some highlights of our investment.
Speaker #3: First, some key numbers. So clear continued to deliver growth in distributable income against a backdrop of economic uncertainty. For FY 2025, the distributable income was 678.3 million.
Speaker #3: This is 1.4% higher than the previous year. The better performance was driven by accretive acquisitions of quality assets in 2025 and supported by the prudent management of operating and interest expenses.
Speaker #3: For the higher distributable income, translated to a distribution per unit of 15.005 cents. The value of investment properties rose, with an increase of 8.6% year on year, from $16.8 billion a year ago.
Andrea: The value of investment properties rose to SGD 18.2 billion, which is an increase of 8.6% year-on-year from SGD 16.8 billion a year ago. Onto asset management. As at the end of December 2025, the portfolio occupancy was 90.9%, and we achieved a high rental reversion of 12% for leases renewed during the full year. This is CLAR's third consecutive year of double-digit reversions. As at end December, gearing was healthy at 39%, and the average cost of debt for 2025 was 20 basis points lower year-on-year at 3.5%. Our active portfolio rejuvenation strategy seeks to ensure that CLAR's portfolio remains relevant, so we were disciplined and focused on executing our multi-pronged strategy for growth in 2025. We completed approximately SGD 1.5 billion of acquisitions, largely in Singapore.
Andrea Ng: The value of investment properties rose to SGD 18.2 billion, which is an increase of 8.6% year-on-year from SGD 16.8 billion a year ago. Onto asset management. As at the end of December 2025, the portfolio occupancy was 90.9%, and we achieved a high rental reversion of 12% for leases renewed during the full year. This is CLAR's third consecutive year of double-digit reversions. As at end December, gearing was healthy at 39%, and the average cost of debt for 2025 was 20 basis points lower year-on-year at 3.5%. Our active portfolio rejuvenation strategy seeks to ensure that CLAR's portfolio remains relevant, so we were disciplined and focused on executing our multi-pronged strategy for growth in 2025. We completed approximately SGD 1.5 billion of acquisitions, largely in Singapore.
Speaker #3: And on to asset management. As at the end of December 2025, the portfolio occupancy was 90.9%. We achieved a high rental reversion of 12% for leases renewed during the full year.
Speaker #3: This is clear—third consecutive year of double-digit reversions. As at end December, gearing was healthy; at 2025, it was 20 basis points lower year-on-year at 3.5%.
Speaker #3: Our active portfolio rejuvenation strategy seeks to ensure that Clear's portfolio remains relevant, so we will discipline and focus on executing our multi-pronged strategy for growth, completed approximately in Singapore.
Speaker #3: This is one of the highest levels of acquisition activity since 2021. So to recap, the acquisitions were six properties in Singapore as well as the US, and their initial MPR yields ranged from about 6% to 7-plus percent.
Andrea: This is one of the highest levels of acquisition activity since 2021. So to recap, the acquisitions were six properties in Singapore as well as the US, and their initial NPI yields range from about 6% to 7+% . So besides acquiring income-producing properties, we also invested about SGD 350 million to develop new green certified logistics assets in the UK. So there are two projects in the UK, in Manton Wood and Towcester, and the expected yields of these properties are about 7%. And we also completed two redevelopments in Singapore. They are 1 Science Park Drive, a business space and life sciences property, and 5 Toh Guan Road East, a modern ramp up logistics property. These two new properties have achieved healthy leasing levels of about 81% and 65%, respectively.
Andrea Ng: This is one of the highest levels of acquisition activity since 2021. So to recap, the acquisitions were six properties in Singapore as well as the US, and their initial NPI yields range from about 6% to 7+% . So besides acquiring income-producing properties, we also invested about SGD 350 million to develop new green certified logistics assets in the UK. So there are two projects in the UK, in Manton Wood and Towcester, and the expected yields of these properties are about 7%. And we also completed two redevelopments in Singapore. They are 1 Science Park Drive, a business space and life sciences property, and 5 Toh Guan Road East, a modern ramp up logistics property. These two new properties have achieved healthy leasing levels of about 81% and 65%, respectively.
Speaker #3: So besides acquiring income-producing properties, we also invested about 350 million to develop new green-certified logistics assets in the two projects in the UK in Manton UK.
Speaker #3: So there are Wood and Talster, and the expected yields of these properties are about 7%. And we also completed two redevelopments in Singapore. They are One Science Park property, and Five Toguan Drive, a business space, and Life Sciences Road East, a modern ramp-up logistics property.
Speaker #3: These two new properties have achieved healthy leasing levels of about 81% and 65%, respectively. So, the good market reception reflects confidence in our rejuvenation strategy to future-proof our properties, and we will look to do more.
Andrea: So the good market reception reflects confidence in our rejuvenation strategy to future-proof our properties, and we will look to do more. We accelerated the pace of divestments in 2025, reaching about SGD 506.5 million in total. So this divestment amount is a 9% premium to their total market valuation, as well as a 14% premium to their total original purchase price. These divestments are in line with our capital recycling strategy to maintain financial flexibility and liquidity for accretive investment opportunities. We'll go into the financial performance. So comparing the full year of 2025 against 2024, our gross revenue increased by 1% to approximately SGD 1.54 billion. So the properties acquired in 2025 contributed to the increase.
Andrea Ng: So the good market reception reflects confidence in our rejuvenation strategy to future-proof our properties, and we will look to do more. We accelerated the pace of divestments in 2025, reaching about SGD 506.5 million in total. So this divestment amount is a 9% premium to their total market valuation, as well as a 14% premium to their total original purchase price. These divestments are in line with our capital recycling strategy to maintain financial flexibility and liquidity for accretive investment opportunities. We'll go into the financial performance. So comparing the full year of 2025 against 2024, our gross revenue increased by 1% to approximately SGD 1.54 billion. So the properties acquired in 2025 contributed to the increase.
Speaker #3: We accelerated the pace of divestments, reaching about $506.5 million in total. So this divestment amount is, in 2025, a 9% premium to their total market valuation as well as a 14% premium to their total original purchase price.
Speaker #3: These divestments are in line with our capital recycling strategy to maintain financial flexibility and liquidity for accretive investment opportunities. We'll go into the financial performance.
Speaker #3: So, comparing the full year of 2025 against 2024, gross revenue increased by 1% to approximately $1.54 billion. So, the properties acquired in 2025 contributed to the increase.
Speaker #3: They are DHL Indianapolis Logistics Center, a logistics property in the US, as well as two properties in Singapore, namely 5 Science Park Drive and 9 Taising Drive.
Andrea: They are DHL Indianapolis Logistics Center, a logistics property in the US, as well as two properties in Singapore, namely 5 Science Park Drive and 9 Tai Seng Drive. So their higher revenue contribution was partly offset by divestment of properties in 2024 and 2025. Partly supported by lower property operating expenses, NPI was up by a better 1.7%. So as mentioned earlier, the DI for 2025 increased by 1.4% year-on-year to SGD 678.3 million. DPU for the full year declined slightly to 15.005 cents on a slightly larger unit base. CLAR had conducted an equity fundraising in the first half of 2025 to fund investments. It was a private placement of about SGD 500 million to fund acquisitions.
Andrea Ng: They are DHL Indianapolis Logistics Center, a logistics property in the US, as well as two properties in Singapore, namely 5 Science Park Drive and 9 Tai Seng Drive. So their higher revenue contribution was partly offset by divestment of properties in 2024 and 2025. Partly supported by lower property operating expenses, NPI was up by a better 1.7%. So as mentioned earlier, the DI for 2025 increased by 1.4% year-on-year to SGD 678.3 million. DPU for the full year declined slightly to 15.005 cents on a slightly larger unit base. CLAR had conducted an equity fundraising in the first half of 2025 to fund investments. It was a private placement of about SGD 500 million to fund acquisitions.
Speaker #3: So, their higher revenue contribution was partly offset by divestment of properties in 2024 and 2025, partly supported by lower property operating expenses, and PI was up by a better 1.7%.
Speaker #3: So, as mentioned earlier, the DI for 2025 increased by 1.4% year on year to $678.3 million. EPU for the full year declined slightly to 15.005 cents on a slightly larger unit base.
Speaker #3: Clare had conducted an equity fundraising in the first half of 2025 to fund investments. That was a private placement of about $500 million to fund acquisitions.
Andrea: When we compare the second half of 2025 against the first half, both gross revenue and NPI increased by about 4%. Contributing to the higher income were the 2 properties acquired in August, namely the data center, 9 Tai Seng Drive, and the business space property, 5 Science Park Drive. The increase was partially offset by some divestments completed in 2025. DI increased by 4.9% to SGD 347.2 million, partly supported by lower interest expenses. As a result, DPU in the second half increased by 0.7% to SGD 0.07528. CLAR distributes income on a semi-annual basis, so we have declared a DPU of SGD 0.07528 for the second half, and unitholders can expect to receive the distribution on Friday, 13 March.
Andrea Ng: When we compare the second half of 2025 against the first half, both gross revenue and NPI increased by about 4%. Contributing to the higher income were the 2 properties acquired in August, namely the data center, 9 Tai Seng Drive, and the business space property, 5 Science Park Drive. The increase was partially offset by some divestments completed in 2025. DI increased by 4.9% to SGD 347.2 million, partly supported by lower interest expenses. As a result, DPU in the second half increased by 0.7% to SGD 0.07528. CLAR distributes income on a semi-annual basis, so we have declared a DPU of SGD 0.07528 for the second half, and unitholders can expect to receive the distribution on Friday, 13 March.
Speaker #3: When we compare the second half of 2025 against the first half, both gross revenue and MPR increased by about 4%. So, contributing to the higher income were the two properties acquired in August, namely the data center at 9 Taising Drive and the business space property at 5 Science Park Drive.
Speaker #3: The increase was partially offset by some divestments completed in 2025. DI increased by 4.9% to $347.2 million, partly supported by lower interest expenses. So, as a result, DPU in the second half increased by 0.7% to 7.528 Singapore cents.
Speaker #3: Clare distributes income on a semi-annual basis. So we have declared a DPU of 7.528 cents for the second half, and unitholders can expect to receive the distribution on Friday, the 13th of March.
Speaker #3: This section covers the investments, which was summarized earlier. We'd just like to highlight a couple of latest developments. So besides redevelopments, we also carry out AEIs, which are asset enhancement initiatives.
Andrea: This section covers the details of all of CLAR's investments, which were summarized earlier. I would just like to highlight a couple of latest developments. Besides redevelopments, we also carry out AEIs, which are asset enhancement initiatives. These AEIs are projects to upgrade our properties and modernize the facilities, thereby increasing long-term value. In 2025, we completed about SGD 29 million of AEIs, the largest of which was at Aperia in Singapore for SGD 22.7 million. At Aperia, besides upgrading the drop-off point, the office and retail entrances, we also reconfigured some of the retail space on level one for better flow, and there are new F&B offerings to provide more offerings and choices for tenants and visitors. The new retail units are mostly leased, and the expected ROI is approximately 9%.
Andrea Ng: This section covers the details of all of CLAR's investments, which were summarized earlier. I would just like to highlight a couple of latest developments. Besides redevelopments, we also carry out AEIs, which are asset enhancement initiatives. These AEIs are projects to upgrade our properties and modernize the facilities, thereby increasing long-term value. In 2025, we completed about SGD 29 million of AEIs, the largest of which was at Aperia in Singapore for SGD 22.7 million. At Aperia, besides upgrading the drop-off point, the office and retail entrances, we also reconfigured some of the retail space on level one for better flow, and there are new F&B offerings to provide more offerings and choices for tenants and visitors. The new retail units are mostly leased, and the expected ROI is approximately 9%.
Speaker #3: So, these AEIs are projects to upgrade our properties and modernize the facilities, thereby increasing long-term value. So in 2025, we completed about $29 million, which was at a period in Singapore for $22.7 million.
Speaker #3: Of AEIs, the largest of So, at a period besides upgrading the drop-off point, the office and retail entrances, we also reconfigured some of the retail space on level one for better flow, and there are new F&B offerings to provide more offerings and choices for tenants and visitors.
Speaker #3: So the new retail units are mostly leased, and the expected ROI is approximately 9%. At the end of the year, we have seven projects that will rejuvenate the portfolio and enhance returns.
Andrea: At the end of the year, we have 7 projects that will rejuvenate the portfolio and enhance returns. So currently, there are 3 developments, 2 redevelopments, and 2 AEIs worth about SGD 730 million. These projects are scheduled for completion in the next 3 years, meaning from 2026 to 2028. Continuing our acquisition momentum into 2026, just last week, we completed the acquisition of DHL Canal Winchester. The purchase price is about SGD 95 million, and the initial NPIU is about 7.4%. This property was completed just 2 years ago, and it's fully occupied by DHL, an international logistics company. The WALE is about 5 years, and the lease term includes built-in annual rental escalation of 3.5%.
Andrea Ng: At the end of the year, we have 7 projects that will rejuvenate the portfolio and enhance returns. So currently, there are 3 developments, 2 redevelopments, and 2 AEIs worth about SGD 730 million. These projects are scheduled for completion in the next 3 years, meaning from 2026 to 2028. Continuing our acquisition momentum into 2026, just last week, we completed the acquisition of DHL Canal Winchester. The purchase price is about SGD 95 million, and the initial NPIU is about 7.4%. This property was completed just 2 years ago, and it's fully occupied by DHL, an international logistics company. The WALE is about 5 years, and the lease term includes built-in annual rental escalation of 3.5%.
Speaker #3: So currently, there are three developments: two redevelopments and two AEIs, worth about $730 million. These projects are scheduled for completion in the next three years, meaning from 2026 to 2028.
Speaker #3: And continuing our acquisition momentum into 2026, just last week we completed the acquisition of DHL Canal Winchester. The purchase price is about $95 million, and the initial MPR yield is about 7.4%.
Speaker #3: This property was completed just two years ago, and now it's fully occupied by DHL, an international logistics company. The lease is about five years, and the lease term includes a built-in annual rental escalation of 3.5%.
Speaker #3: The property is well located along a highway, with access to three interstate expressways, and is close to a cargo-dedicated international airport. The property is in Columbus, Ohio, one of the main logistics markets in the Midwest in the US, so it complements Clare's logistics portfolio in the US, which comprises assets in three other Midwest cities, namely Kansas City, Chicago, and Indianapolis.
Andrea: The property is well located along a highway with access to three interstate expressways and is close to a cargo dedicated international airport. The property is in Columbus, Ohio, one of the main logistics markets in the Midwest in the US. So it complements CLAR's logistics portfolio in the US, which comprises assets in three other Midwest cities, which are namely Kansas City, Chicago, and Indianapolis. We'll move on to the balance sheet. The gearing remains healthy at 39%. It increased slightly from a year ago, mainly due to higher borrowings to fund investments. Total assets have also increased to more than SGD 19 billion. The adjusted net asset value per unit was stable year-on-year at 2.21 cents. Okay, so CLAR's financial metrics remain strong, and we exceed bank loan covenants by a healthy margin.
Andrea Ng: The property is well located along a highway with access to three interstate expressways and is close to a cargo dedicated international airport. The property is in Columbus, Ohio, one of the main logistics markets in the Midwest in the US. So it complements CLAR's logistics portfolio in the US, which comprises assets in three other Midwest cities, which are namely Kansas City, Chicago, and Indianapolis. We'll move on to the balance sheet. The gearing remains healthy at 39%. It increased slightly from a year ago, mainly due to higher borrowings to fund investments. Total assets have also increased to more than SGD 19 billion. The adjusted net asset value per unit was stable year-on-year at 2.21 cents. Okay, so CLAR's financial metrics remain strong, and we exceed bank loan covenants by a healthy margin.
Speaker #3: We'll move on to the balance sheet. So the gearing remains healthy at 39%. It increased slightly from a year ago, mainly due to higher borrowings to fund investments. Total assets have also increased to more than $19 billion.
Speaker #3: The adjusted net asset value per unit was stable year on year at 221 cents. So, Clare's financial metrics remain strong, and we exceed bank loan covenants by a healthy margin.
Speaker #3: So, just going through some key financial metrics, the ICR remains at 3.6 times, and cost of debt has come down slightly to 3.5%. The percentage of our fixed rate debt is also high at about 75%.
Andrea: So just going through some key financial metrics, the ICR remains at 3.6 times, and cost of debt has come down slightly to 3.5%. The percentage of our fixed rate debt is also high at about 75%. So our total debt is about SGD 7.6 billion, and it comprises various currencies such as Singapore dollar, US dollar, Australian dollar, British pound, and euro. So the debt expiries are well spread over the next 8 years until 2034. Over these 2 years, meaning 2026 and 2027 specifically, only about 12% of the total debt is due. On natural hedge, we continue to have a high level, about 76% for our overseas investments, which make up about 30+ percent of the portfolio. So we also conducted the annual evaluation of our portfolio of investment properties.
Andrea Ng: So just going through some key financial metrics, the ICR remains at 3.6 times, and cost of debt has come down slightly to 3.5%. The percentage of our fixed rate debt is also high at about 75%. So our total debt is about SGD 7.6 billion, and it comprises various currencies such as Singapore dollar, US dollar, Australian dollar, British pound, and euro. So the debt expiries are well spread over the next 8 years until 2034. Over these 2 years, meaning 2026 and 2027 specifically, only about 12% of the total debt is due. On natural hedge, we continue to have a high level, about 76% for our overseas investments, which make up about 30+ percent of the portfolio. So we also conducted the annual evaluation of our portfolio of investment properties.
Speaker #3: So our total debt is about $7.6 billion, and it comprises various currencies such as Singapore Dollar, US Dollar, Australian Dollar, Great Britain Pound, and Euro.
Speaker #3: So the debt expiries are well spread over the next eight—2034. Over these two years, meaning 2026 and 2027 specifically, only about 12% of the total debt is due.
Speaker #3: On natural hedge, we continue to have a high level—about 76%—for our overseas investments, which make up about 30-plus percent of the portfolio.
Speaker #3: So, we also conducted the annual revaluation of our portfolio of investment properties. The total valuation of our 222 investment properties was $18.2 billion as at the end of the year. This is a year-on-year increase of about 8.6%.
Andrea: So the total valuation of our 2022 investment properties was SGD 18.2 billion as at the end of the year. This is a year-on-year increase of about 8.6% or about SGD 1.4 billion. This was mainly due to new properties acquired, as well as the completion of the redevelopment of 5 Toh Guan Road East. On a same store basis, the portfolio valuation increased by 2% or about SGD 300+ million to SGD 16.6 billion. This was mainly due to cap rate compression. By segment, all three segments, meaning business space and life sciences, industrial and data centers, as well as logistics, all recorded year-on-year increases. If we move on to portfolio occupancy. So as shared earlier, the portfolio occupancy was 90.9% as at the end of December.
Andrea Ng: So the total valuation of our 2022 investment properties was SGD 18.2 billion as at the end of the year. This is a year-on-year increase of about 8.6% or about SGD 1.4 billion. This was mainly due to new properties acquired, as well as the completion of the redevelopment of 5 Toh Guan Road East. On a same store basis, the portfolio valuation increased by 2% or about SGD 300+ million to SGD 16.6 billion. This was mainly due to cap rate compression. By segment, all three segments, meaning business space and life sciences, industrial and data centers, as well as logistics, all recorded year-on-year increases. If we move on to portfolio occupancy. So as shared earlier, the portfolio occupancy was 90.9% as at the end of December.
Speaker #3: Or about $1.4 billion. This was mainly due to new properties acquired as well as the completion of the redevelopment of 5 Tai Seng Avenue.
Speaker #3: On the same-store basis, the portfolio valuation increased by 2%, or about $300 million plus, to $16.6 billion. This was mainly due to cap rate compression.
Speaker #3: By segment, all three segments meaning business space and life sciences industrial and data centers as well as logistics all recorded year on year increases.
Speaker #3: Here, we move on to portfolio occupancy. So, as shared earlier, the portfolio occupancy was 90.9% as at the end of December. We will go into each geography specifically, so starting from the left, which is Singapore.
Andrea: We will go into each geography specifically, so starting from the left, which is Singapore. So the occupancy rate of the Singapore portfolio was 91.2%. This is an increase of 80 basis points quarter-on-quarter. Excluding 5 Toh Guan Road East, which just completed its redevelopment in Q3 2025, the occupancy rate of the Singapore portfolio would have been higher at 91.7%. For the US, it was a slight increase of 20 basis points from the previous quarter to 85.5%. For Australia, the occupancy rate was 94.4%, slightly lower by 40 basis points. The occupancy of the UK Europe portfolio was 92%. The decline was due to a lease expiry at a logistics property in the UK, which is actually slated for redevelopment.
Andrea Ng: We will go into each geography specifically, so starting from the left, which is Singapore. So the occupancy rate of the Singapore portfolio was 91.2%. This is an increase of 80 basis points quarter-on-quarter. Excluding 5 Toh Guan Road East, which just completed its redevelopment in Q3 2025, the occupancy rate of the Singapore portfolio would have been higher at 91.7%. For the US, it was a slight increase of 20 basis points from the previous quarter to 85.5%. For Australia, the occupancy rate was 94.4%, slightly lower by 40 basis points. The occupancy of the UK Europe portfolio was 92%. The decline was due to a lease expiry at a logistics property in the UK, which is actually slated for redevelopment.
Speaker #3: So the occupancy rate of the Singapore portfolio was 91.2%. This is an increase of 80 basis points quarter-on-quarter. Excluding 5 Toh Guan Road East, which just completed its redevelopment in the third quarter of 2025, the occupancy rate of the Singapore portfolio would have been higher at 91.7%.
Speaker #3: For the US, it was a slight increase of 20 basis points from the previous quarter to 85.5%. For Australia, the occupancy rate was 94.4%, slightly lower by 40 basis points.
Speaker #3: The occupancy of the UK Europe portfolio was 92%. The decline was due to a lease expiry at a logistics property in the UK, which is actually slated for redevelopment.
Speaker #3: So, if you exclude this property which is slated for redevelopment, the UK/Europe portfolio occupancy rate would remain high at 98.7%. So, excluding Five Tuo Guan Road East, which just completed redevelopment in the third quarter, as well as this UK logistics property which is slated for redevelopment, the portfolio occupancy would actually be higher at 91.9% instead of 90.9%.
Andrea: So if you exclude this property, which is slated for redevelopment, the UK Europe portfolio occupancy rate will remain high at 98.7%. So excluding 5 Toh Guan Road East, which just completed redevelopment in Q3, as well as this UK logistics property, which is slated for redevelopment, the portfolio occupancy will actually be higher at 91.9% instead of 90.9%. We will go on to talk about the rental reversions. So rental reversions for the portfolio on the whole was 12%, can refer to the last, bottom row of the table. In Q4, the reversion was 19.6%, which is higher than Q3 and the earlier two quarters of 2025.
Andrea Ng: So if you exclude this property, which is slated for redevelopment, the UK Europe portfolio occupancy rate will remain high at 98.7%. So excluding 5 Toh Guan Road East, which just completed redevelopment in Q3, as well as this UK logistics property, which is slated for redevelopment, the portfolio occupancy will actually be higher at 91.9% instead of 90.9%. We will go on to talk about the rental reversions. So rental reversions for the portfolio on the whole was 12%, can refer to the last, bottom row of the table. In Q4, the reversion was 19.6%, which is higher than Q3 and the earlier two quarters of 2025.
Speaker #3: We will go on to talk about the rental reversions. So, rental reversions for the portfolio as a whole was 12%. You can refer to the last brown row of the table.
Speaker #3: In Q4, the reversion was 19.6%, which is higher than in Q3 and the earlier two quarters of 2025. The high reversion achieved in Q4 was boosted by Singapore's business space and life sciences segment, which had a reversion of 26.7%.
Andrea: The high reversion achieved in Q4 was boosted by Singapore's business space and life sciences segment, which had a reversion of 26.7%. So our strong reversion performance reflects the quality and relevance of our portfolio. For the coming year, 2026, our guidance is in the mid-single digit range. The WALE of the portfolio remains stable at 3.7 years, and in 2026, for the whole portfolio, meaning all four geographies, only about 20% of our gross rental income is due for expiry. Okay, I will end with the market outlook slide. So global economies are expected to remain resilient, although uncertainties to the outlook remain.
Andrea Ng: The high reversion achieved in Q4 was boosted by Singapore's business space and life sciences segment, which had a reversion of 26.7%. So our strong reversion performance reflects the quality and relevance of our portfolio. For the coming year, 2026, our guidance is in the mid-single digit range. The WALE of the portfolio remains stable at 3.7 years, and in 2026, for the whole portfolio, meaning all four geographies, only about 20% of our gross rental income is due for expiry. Okay, I will end with the market outlook slide. So global economies are expected to remain resilient, although uncertainties to the outlook remain.
Speaker #3: So, our strong reversion performance reflects the quality and relevance of our portfolio, and for the coming year 2026, our guidance is in the mid-single-digit range.
Speaker #3: The will of the portfolio remains stable at and in 2026, for the whole 3.7 years. Portfolio meaning all four geographies, only about 20% of our gross rental income is due for expiry.
Speaker #3: I will end with the market outlook slide. So, global economies are expected to remain resilient, although uncertainties to the outlook remain. So in this current economic environment, we are confident of navigating through challenges given our well-diversified portfolio in developed markets, our large tenant base, good operational management, as well as prudent financial management.
Andrea: So in this current economic environment, we are confident of navigating through challenges, giving our, given our well-diversified portfolio in, developed markets, our large tenant base, our good operational management, as well as prudent financial management. So the investments in 2025 have strengthened CLAR's earnings, earnings resilience, and, strengthened our portfolio quality. So we will continue to pursue our portfolio rejuvenation strategy, and, this is so as to enhance the long-term income sustainability and create additional value for unit holders. So I've come to the end of the, my presentation, and thank you for your attention. We will move on to the Q&A segment. So, those who are joining us physically, you can raise your hand and I will call your name. Okay, we will have the first question from Rachel, from Macquarie.
Andrea Ng: So in this current economic environment, we are confident of navigating through challenges, giving our, given our well-diversified portfolio in, developed markets, our large tenant base, our good operational management, as well as prudent financial management. So the investments in 2025 have strengthened CLAR's earnings, earnings resilience, and, strengthened our portfolio quality. So we will continue to pursue our portfolio rejuvenation strategy, and, this is so as to enhance the long-term income sustainability and create additional value for unit holders. So I've come to the end of the, my presentation, and thank you for your attention.
Speaker #3: So, the investments in 2025 have strengthened CLAR’s earnings resilience and strengthened our portfolio quality. So, we will continue to pursue our portfolio strategy, and this is so as to enhance the long-term income sustainability and create additional value for unitholders.
Speaker #3: So, I've come to the end of my presentation, and thank you for your attention. We will move on to the Q&A segment. For those who are joining, I will call out your names physically; you can raise your hand and state your name.
Operator: We will move on to the Q&A segment. So, those who are joining us physically, you can raise your hand and I will call your name. Okay, we will have the first question from Rachel, from Macquarie.
Speaker #3: We will have the first Format
Speaker #3: Hi, good evening, William, and
Rachel: Hi, good evening, William and team. Thanks for the opportunity to ask the first questions or pursue questions. I think firstly, maybe just on the positive side, your rental reversions have been very strong, as what Andrea has alluded to your Singapore assets. So, maybe guidance for this year, can you maintain this kind of reversions? And where likely, which market may have, which market will be strong and which market will be a little bit weak? Yeah. Do you want me to ask my second question, too?
Rachel Tan: Hi, good evening, William and team. Thanks for the opportunity to ask the first questions or pursue questions. I think firstly, maybe just on the positive side, your rental reversions have been very strong, as what Andrea has alluded to your Singapore assets. So, maybe guidance for this year, can you maintain this kind of reversions? And where likely, which market may have, which market will be strong and which market will be a little bit weak?
Speaker #2: Team, thanks for the opportunity to ask the first question—oh, first two questions. I think firstly, maybe just on the positive side, your rental reversions have been very strong.
Speaker #2: As what Andrea has alluded to—your Singapore assets—so maybe guidance for this year: can you maintain this kind of reversions, and where, likely, which market may have— which market would be strong and which market would be a little bit weak?
Speaker #2: Yeah. Do you want me to ask my second question too?
Operator: Yeah. Do you want me to ask my second question, too?
Speaker #3: Yeah, go ahead.
Andrea: Yeah, go ahead. Yeah.
Rachel Tan: Yeah, go ahead. Yeah.
William Tay: I think thanks for your compliment with the rental reversion. It's our third year getting double digit, and right up to Q3, we were still looking at, or right, right up to half year last year, we were still looking at single digit. Until Q3, we realized that we were gonna have a very high rental reversion from a lease in Singapore business park. It gave us more than 40% rental reversion from that lease. It's a huge lease, which is why we actually adjusted in Q3. Last minute, we're gonna adjust it up to low double digit. And you heard me mention that we do want to continue to push rental. Occupancy has been very stable and very strong, actually.
Speaker #4: I think thanks Yeah. for your compliment about the rental reversion. It's our third year getting double digit. And right up to 3Q, we were still looking at right up to half year last year, we were still looking at single digit.
William Tay: I think thanks for your compliment with the rental reversion. It's our third year getting double digit, and right up to Q3, we were still looking at, or right, right up to half year last year, we were still looking at single digit. Until Q3, we realized that we were gonna have a very high rental reversion from a lease in Singapore business park. It gave us more than 40% rental reversion from that lease. It's a huge lease, which is why we actually adjusted in Q3. Last minute, we're gonna adjust it up to low double digit. And you heard me mention that we do want to continue to push rental. Occupancy has been very stable and very strong, actually.
Speaker #4: Until Q3, we realized that we were going to have a very high rental reversion from a lease in Singapore Business Park. It gave us more than 40% rental reversion from that lease.
Speaker #4: It's a huge lease. Which is why we actually adjusted in 3Q. Last minute, we couldn't adjust it up to low double digit. And you heard me mention that we do want to continue to push rental occupancy has been very stable and very strong actually.
Speaker #4: If you look across all our asset classes, in terms of industrial, logistics, UK, Australia, they are all above 90, 95, 98%.
William Tay: If you look at all across all our asset classes, the, in terms of like industrial, logistics, UK, Australia, they are all above 90, 95, 90%. The main gap is actually in Business Park in Singapore, as well as, US office, which is about 85%. So rental reversion is important for us, even though we are, we continue with some leasing challenges in these two segments. Which is why we have been trying to upgrade and do AEI to our properties, in order to make sure that our tenants remain sticky with us, and, our assets are actually be meaningful for their occupation. Given that, I think we continue to look at mid-single digit in the entire portfolio. Markets that we think they'll be strong continue in Singapore, in fact, Australia as well.
William Tay: If you look at all across all our asset classes, the, in terms of like industrial, logistics, UK, Australia, they are all above 90, 95, 90%. The main gap is actually in Business Park in Singapore, as well as, US office, which is about 85%. So rental reversion is important for us, even though we are, we continue with some leasing challenges in these two segments. Which is why we have been trying to upgrade and do AEI to our properties, in order to make sure that our tenants remain sticky with us, and, our assets are actually be meaningful for their occupation. Given that, I think we continue to look at mid-single digit in the entire portfolio. Markets that we think they'll be strong continue in Singapore, in fact, Australia as well.
Speaker #4: The main gap is actually in Business Park in Singapore, as well as the US office, which is about important for us even as we continue in some leasing challenges in these two segments.
Speaker #4: Which is why we have been trying to 85%. So rental reversion is upgrade and do AEI to our properties in order to make sure that our tenants remain sticky with us.
Speaker #4: And our assets are actually meaningful for their occupation. Given that, I think we continue to look at mid-single digit in the entire portfolio. Markets that we think they'll be strong continue in Singapore.
Speaker #4: In fact, Australia as well. Australia will probably be the one that will be giving us a quite good rental reversion. We will continue to push for United States to give us a positive rental reversion.
William Tay: Australia, probably the one that will be giving us quite good rental reversion. We will continue to push for United States to give us positive rental reversion, and mostly will still come from Singapore market. Want to?
William Tay: Australia, probably the one that will be giving us quite good rental reversion. We will continue to push for United States to give us positive rental reversion, and mostly will still come from Singapore market. Want to?
Speaker #4: And mostly we'll still come from Singapore market.
Speaker #2: Yeah. And if you were to break down in terms of asset classes between BP and logistics, typically our logistics assets are still below market.
James Goh: Yeah. And if you were to break down in terms of asset classes between BP and logistics, typically our logistics assets are still below market across almost all the geographies. So as you can see from the rental reversion data, a lot of it is really supported by the lock improvement in rents.
James Goh: Yeah. And if you were to break down in terms of asset classes between BP and logistics, typically our logistics assets are still below market across almost all the geographies. So as you can see from the rental reversion data, a lot of it is really supported by the lock improvement in rents.
Speaker #2: Across almost all the geographies, as you can see from the rental reversion data, a lot of it is really supported by the locked improvement in rents.
Speaker #3: Maybe just to follow up, do you have a number of how under-rented your portfolio is by geographies?
Rachel: Maybe just to follow up, do you have a number of how under-rented is your portfolio by geographies?
Rachel Tan: Maybe just to follow up, do you have a number of how under-rented is your portfolio by geographies?
Speaker #2: Typically between 5 to
James Goh: Typically between 5 to 10%.
James Goh: Typically between 5 to 10%.
Speaker #2: 10%. Across all, on average, yeah.
Rachel: Across all geographies?
Rachel Tan: Across all geographies?
Speaker #3: geographies? Thank you. Maybe moving to my next question, in terms of redevelopment, could you give us any update? I think you have one in UK, any update on your data center redevelopment and your SingTel data center as well?
James Goh: On average, yeah.
James Goh: On average, yeah.
Rachel: Thank you. Maybe moving to my next question, in terms of redevelopment, could you give us any update? I think you have one in UK. Any update on your data center redevelopment and your Singtel data center as well?
Rachel Tan: Thank you. Maybe moving to my next question, in terms of redevelopment, could you give us any update? I think you have one in UK. Any update on your data center redevelopment and your Singtel data center as well?
Speaker #4: UK data center, not much change. We're still waiting for the confirmation of the power which we expect in the first half of this year.
William Tay: UK data center, not much change. We are still waiting for the confirmation of the power, which I expect in the first half of this year. So we hope that we can start development probably in the next, after that, probably about next 12, 18 months, to start development. Singtel, as you are referring to Tampines, that's one, which has actually expired, since last year. There is also another one, I think you probably know about the Kim Chuan. It will expire this year, in fact, next quarter. So these two, we continue to look at our opportunities for development. We are still working out the development plans. For the one in Tampines, we are looking at trying to get higher plot ratio.
William Tay: UK data center, not much change. We are still waiting for the confirmation of the power, which I expect in the first half of this year. So we hope that we can start development probably in the next, after that, probably about next 12, 18 months, to start development. Singtel, as you are referring to Tampines, that's one, which has actually expired, since last year. There is also another one, I think you probably know about the Kim Chuan. It will expire this year, in fact, next quarter. So these two, we continue to look at our opportunities for development. We are still working out the development plans. For the one in Tampines, we are looking at trying to get higher plot ratio.
Speaker #4: So we hope that we can start development probably in the next after that, probably about next 12, 18 months to start development. SingTel, as you were referring to Tampines, that's one.
Speaker #4: Which has already expired since last year. There is also another one—I think you probably know about the Kim Chuan—which is likely to expire this year.
Speaker #4: In fact, next quarter. So these two will continue to look at our opportunities for development. We are still working out the development plans for the one in Tampines; we are looking at trying to get higher plot ratio.
Speaker #4: So, that's the considerations that we have before we decide whether to—what's our next step for that.
William Tay: So that's, that's considerations that we have before we decide whether to, what's our next step for that project.
William Tay: So that's, that's considerations that we have before we decide whether to, what's our next step for that project.
Speaker #4: project. Just follow up, Kim
Rachel: Just follow up. Kim Chuan, are you maintaining, getting more power, or what's your plans for that data center?
Rachel Tan: Just follow up. Kim Chuan, are you maintaining, getting more power, or what's your plans for that data center?
Speaker #3: Chuan, are you maintaining getting more power, or what’s your plan for that data center?
William Tay: Today, context in Singapore, we are not able to increase power if there is no existing data center operator on site. So unless we work with another operator who will apply for a CFA 2, then that's potentially that they can come in to any other site. So we definitely have to work with an operator. Yeah.
Speaker #4: Do they contact in Singapore? We are not able to increase power if there is no existing data center operator on site. So unless we work with another operator who will apply for the CFA too, then there's potentially that they can come into any of the sites.
William Tay: Today, context in Singapore, we are not able to increase power if there is no existing data center operator on site. So unless we work with another operator who will apply for a CFA 2, then that's potentially that they can come in to any other site. So we definitely have to work with an operator. Yeah.
Speaker #4: So we definitely have to work with an operator. Yeah.
Speaker #3: Okay. Thank you so much. Thank you. I think just now, Derek, do you raise your hand? No? Yeah. Okay.
Rachel: Okay. Thank you so much. Okay, thank you. I think, just now, Derek, did you raise your hand? No? Yeah. Okay.
Rachel Tan: Okay. Thank you so much.
Operator: Okay, thank you. I think, just now, Derek, did you raise your hand? No? Yeah. Okay.
Speaker #5: Hey, good evening. William, Derek from DBS. Just two questions. First one is looking at your portfolio, right? And just curious about you talk about US being a little bit weak, especially for offices.
Derek: Hey, good evening, William. Derek from DBS. Just two questions. First one is, looking at your portfolio, right? I'm just curious about, you talk about US being a little bit weak, especially for offices. Could you give us a bit more color in? Is there any leases that we should be watching out for, for the upcoming year that could be coming up, and that you see some form of downside risk from that perspective? And going into, say, this year, given where interest rates are, where are you hunting for acquisitions? Just curious on that. Yeah, thanks.
Derek Tan: Hey, good evening, William. Derek from DBS. Just two questions. First one is, looking at your portfolio, right? I'm just curious about, you talk about US being a little bit weak, especially for offices. Could you give us a bit more color in? Is there any leases that we should be watching out for, for the upcoming year that could be coming up, and that you see some form of downside risk from that perspective? And going into, say, this year, given where interest rates are, where are you hunting for acquisitions? Just curious on that. Yeah, thanks.
Speaker #5: Could you give us a bit more color in is there any leases that we should be watching out for for the upcoming year that could be coming up and that you see some form of downside risk from that perspective?
Speaker #5: And going into say this year, given where interest rates are, where are you hunting for acquisitions? Just curious on that. Yeah, thanks.
Speaker #2: Okay. Hi, Derek. So on US, if you look at our lease expiry profile, you'll realize that only about 2-plus percent of our income is up for expiry next year.
James Goh: Okay. Hi, Derek. So on US, if you look at our lease expiry profile, you'll realize that only about 2%+ of our income is up for expiry next year. So in terms of the potential downside, or the financial income that's at risk, is minuscule, next to nothing. But what is gonna happen is we actually have got a few large leases in the logistics space that's coming up for expiry next year. You know, typically, they are large sheds, but the per square foot rents are much lower than your BP space, so the income contribution is much lower. As we have all witnessed, post-COVID, where there was this frenzy from 3PLs and end users to lease up all of the spaces where we were reporting 100%, occupancy rate.
James Goh: Okay. Hi, Derek. So on US, if you look at our lease expiry profile, you'll realize that only about 2%+ of our income is up for expiry next year. So in terms of the potential downside, or the financial income that's at risk, is minuscule, next to nothing. But what is gonna happen is we actually have got a few large leases in the logistics space that's coming up for expiry next year. You know, typically, they are large sheds, but the per square foot rents are much lower than your BP space, so the income contribution is much lower. As we have all witnessed, post-COVID, where there was this frenzy from 3PLs and end users to lease up all of the spaces where we were reporting 100%, occupancy rate.
Speaker #2: So, in terms of the potential downside or the financial income that's at risk, it is minuscule—next to nothing. But what is going to happen is we actually have got a few large leases in the logistics space that are coming up for expiry next year.
Speaker #2: Typically, they are large shares. But the per square foot rents Then your BP space. So the income contribution is much lower. As we have all witnessed post-COVID where there was this frenzy from 3PLs and end are much lower.
Speaker #2: Users to lease up all of the spaces where we were reporting, like, 100% occupancy rate—we have now reverted back to the norm, where the market remains healthy, but the lease-up period would last anywhere between 6 to 12 months.
James Goh: We've now reverted back to the norm, where the market remains healthy, but the lease-up period would last anywhere between 6 to 12 months. So while the market remains healthy, we think that the occupancy is gonna be a bit bumpy. So the headline occupancy that we're gonna report over the next couple of quarters, you might see there might be a dip, but in terms of financial impact, that would be pretty minimal.
James Goh: We've now reverted back to the norm, where the market remains healthy, but the lease-up period would last anywhere between 6 to 12 months. So while the market remains healthy, we think that the occupancy is gonna be a bit bumpy. So the headline occupancy that we're gonna report over the next couple of quarters, you might see there might be a dip, but in terms of financial impact, that would be pretty minimal.
Speaker #2: So while the market remains healthy, we think that the occupancy is going to be a bit bumpy. So the headline occupancy that we're going to report over the next couple of quarters, you might see there might be a dip, but in terms of financial impact, that would be pretty
Speaker #2: minimal. On
William Tay: On your second question about where the market, because of interest rates, we have maintained that Australia is one market that we can't acquire accretive. If it's new market, Korea continue to be non-accretive. We mentioned that, we have always been observing Japan, Korea, but Korea is the same as, Australia, given where interest rate is. We are actually very keen to continue on our current markets, Singapore, Europe, US, and, we'll continue to hunt in these, locations. And if it's Europe, obviously it's, greater Europe, not just in UK. So mention whether is it data center... We look at data center and logistics in, Europe, so it's not in the existing, just in the existing market, but new markets like Madrid, Frankfurt, Dublin, the other European, cities, that also include logistics.
William Tay: On your second question about where the market, because of interest rates, we have maintained that Australia is one market that we can't acquire accretive. If it's new market, Korea continue to be non-accretive. We mentioned that, we have always been observing Japan, Korea, but Korea is the same as, Australia, given where interest rate is. We are actually very keen to continue on our current markets, Singapore, Europe, US, and, we'll continue to hunt in these, locations. And if it's Europe, obviously it's, greater Europe, not just in UK. So mention whether is it data center... We look at data center and logistics in, Europe, so it's not in the existing, just in the existing market, but new markets like Madrid, Frankfurt, Dublin, the other European, cities, that also include logistics.
Speaker #5: Your second question about where the market is because of interest rates: we have maintained that Australia is one market where we can't acquire accretively. If it's a new market, Korea continues to be non-accretive.
Speaker #5: We mentioned that we have always been observing Japan and Korea, but Korea is the same as Australia. Given where interest rate is, we are actually very keen to continue on our current markets.
Speaker #5: Singapore, Europe, US, and we'll continue to hunt in this locations. And if it's Europe, obviously it's a greater Europe. Not just in the UK, I also mentioned whether is it data center.
Speaker #5: Singapore, Europe, US, and we'll continue to hunt in these locations. And if it's Europe, obviously it's a greater Europe—not just in the UK. I also mentioned whether it's data center and logistics in Europe. We'll look at data center and logistics in Europe.
Speaker #5: Existing just in the existing market, but so it's not in the new markets like Madrid, Frankfurt, Dublin, the other European cities. That will also include logistics.
William Tay: I think we have also been. I also mentioned that we've been looking at, observing Japan market, given where interest rates are in the past 1 year, and then we've a rental, positive rental growth. That has been a market that we're looking at. So we'll continue to monitor, but yes, if you're looking, looking at from an interest rate point, Japan interest rate also has right reason, right? So we'll be looking at this market and see whether cap rate has expanded, because if you were to acquire at what has been transacted in the market in the last 1 year, 3.5 to 4%, I think there is still accretion, but it's fairly tight. So we will see whether we can get better deals out of, some of these, in, in Japan market.
Speaker #5: I think we have also been I also mentioned that we've been looking at the observing Japan market. Given where interest rates are in the past one year and then we've rented positive rental growth, that's been a market that we've been looking at.
William Tay: I think we have also been. I also mentioned that we've been looking at, observing Japan market, given where interest rates are in the past 1 year, and then we've a rental, positive rental growth. That has been a market that we're looking at. So we'll continue to monitor, but yes, if you're looking, looking at from an interest rate point, Japan interest rate also has right reason, right? So we'll be looking at this market and see whether cap rate has expanded, because if you were to acquire at what has been transacted in the market in the last 1 year, 3.5 to 4%, I think there is still accretion, but it's fairly tight. So we will see whether we can get better deals out of, some of these, in, in Japan market.
Speaker #5: So we'll continue to monitor. But yes, if you're looking at it from an interest rate point, Japan interest rate also has right reason, right? So we'll be looking at this market and see whether the cap rate has expanded.
Speaker #5: Because if you were to acquire at what has been transacted in the market in the last one year, 3.5 to 4%, I think there is still accretion, but it's fairly tight.
Speaker #5: So, we will see whether we can get better deals out of these in the Japan market. Other than that, I think Singapore continues to be attractive.
William Tay: Other than that, I think Singapore continue to be attractive, definitely because of where the title is, as in leasehold. And we have been trying to refresh our properties, if you look at what we've been trying to do. Acquisitions that we have done, they're all mainly younger properties. Even in Singapore, there are brand-new properties, while lease could be between 2 and 23 years left, they are all newer properties, better specs. And if you look our acquisition in US, we have done one DHL Indianapolis last year, and two weeks ago, DHL Columbus. With these two acquisition, our modern specs warehouse in US is already more than 50 percent.
William Tay: Other than that, I think Singapore continue to be attractive, definitely because of where the title is, as in leasehold. And we have been trying to refresh our properties, if you look at what we've been trying to do. Acquisitions that we have done, they're all mainly younger properties. Even in Singapore, there are brand-new properties, while lease could be between 2 and 23 years left, they are all newer properties, better specs. And if you look our acquisition in US, we have done one DHL Indianapolis last year, and two weeks ago, DHL Columbus. With these two acquisition, our modern specs warehouse in US is already more than 50 percent.
Speaker #5: Definitely, because of where the title is, as in leasehold. And we have been trying to refresh our properties if you look at what we've been trying to do.
Speaker #5: Acquisitions that we have done, they're all mainly younger properties. Even in Singapore, they are brand-new properties, while the lease could be 22, 23 years left.
Speaker #5: They are all newer properties, with better specs. And if you look at our acquisition in the US, we've done one—DHL Indiana, please—last year.
Speaker #5: And two weeks ago, DHL Columbus. With these two acquisitions, our modern specs warehouse in the US is already more than 50%. So that's how we want to refresh our property.
William Tay: So that's how we want to refresh our property, which is why I also mentioned development is one key strategy that we wanna do, as well as AEI and redevelopment. Hope I answered your question.
William Tay: So that's how we want to refresh our property, which is why I also mentioned development is one key strategy that we wanna do, as well as AEI and redevelopment. Hope I answered your question.
Speaker #5: Which is why I also mentioned development is one key strategy that we want to do, as well as AEI and redevelopment. Oh, I answered your—
Speaker #5: question. Okay.
Andrea: Okay, can we move on to the next question? May I have the question from this lady, please? Yeah. Jessie from The Business Times.
Operator: Okay, can we move on to the next question? May I have the question from this lady, please? Yeah. Jessie from The Business Times.
Speaker #3: Can we move on to the next question? May I have the question from this lady, please? Yeah. Jessie from—
Speaker #3: Business Times.
Speaker #6: Hello. Hi, William. Hi, everyone.
Jessie: Hello. Hi, William. Hi, everyone. Good evening. Is it on? Okay. Maybe two questions from me. So I'm kind of curious about the Telepark, data center. My understanding is that it's being redeveloped. Do we have, like, a timeline of when redevelopment works will probably start? And in the meantime, I'm guessing the tenant has moved out completely. And secondly, I mean, occupancies are quite strong across the board, but I do note that for some of the Singapore properties, some of the older and, business parks occupancies could be a bit better. Could you maybe share some ideas of what, Ascendas is doing to increase occupancy or... Yeah. Thank you.
Jessie Lim: Hello. Hi, William. Hi, everyone. Good evening. Is it on? Okay. Maybe two questions from me. So I'm kind of curious about the Telepark, data center. My understanding is that it's being redeveloped. Do we have, like, a timeline of when redevelopment works will probably start? And in the meantime, I'm guessing the tenant has moved out completely. And secondly, I mean, occupancies are quite strong across the board, but I do note that for some of the Singapore properties, some of the older and, business parks occupancies could be a bit better. Could you maybe share some ideas of what, Ascendas is doing to increase occupancy or... Yeah. Thank you.
Speaker #6: Good evening. Is it on? Okay. Maybe two questions from me. So I'm kind of curious about the Telepark data center. My understanding is that it's being redeveloped?
Speaker #6: Do we have a timeline of when redevelopment works will probably I'm guessing the tenant has moved out completely. And occupancies are quite strong across the board.
Speaker #6: But I do note that for some of the Singapore properties, some of the older business parks—occupancy could be a bit better. Could you maybe share some ideas of what Ascendas is doing to increase occupancy, or—yeah, thank you.
Speaker #5: Okay, thanks, Jessie. I'll take your first question, and James can take on your second question. For the property in Telepark, we are looking at development plans to increase the floor ratio.
William Tay: Okay. Thanks, Jessie. I'll take your first question, and James can take on your second questions. The property in Telepark, we are looking at development plans to increase plot ratio. If you're looking at timeline, now, we are looking at where the government's consideration in terms of height limit. I think the government has mentioned that with the airbase being moved, and as well as flight technology today, they can look at freeing up a lot of airspace, which means that buildings can go higher. So this is the reason why we've been asking the government to consider some plans for higher plot ratio. I also shared before, when it's not part of the permitted master plan parameters, it does takes a bit longer, easily a year, to get any of these plans being approved.
William Tay: Okay. Thanks, Jessie. I'll take your first question, and James can take on your second questions. The property in Telepark, we are looking at development plans to increase plot ratio. If you're looking at timeline, now, we are looking at where the government's consideration in terms of height limit. I think the government has mentioned that with the airbase being moved, and as well as flight technology today, they can look at freeing up a lot of airspace, which means that buildings can go higher. So this is the reason why we've been asking the government to consider some plans for higher plot ratio. I also shared before, when it's not part of the permitted master plan parameters, it does takes a bit longer, easily a year, to get any of these plans being approved.
Speaker #5: If you're looking at a timeline, now we are looking at where the government's consideration is in terms of height limit. I think the government has mentioned that with the airbase being moved, and as well as flight technology today, they can look at freeing up a lot of airspace, which means that buildings can go higher.
Speaker #5: So this is the reason why we've been asking the government to consider some plans for a higher floor ratio. I also shared before, when it's not part of the permitted master plan parameters, it does take a bit longer.
Speaker #5: Easily a year to get any of these plans being approved. So, I will say that we probably take this year to do all this planning—possibly, if there's a development or any other options that we are looking at, we will look at it after we get the confirmation of what and what we can build on that site.
William Tay: So I will say that we probably take this year to do all this, planning. Possibly, if there's a development or any other options that we are looking at, we will look at it after we get the confirmation of what and what we can build in on the site, so maybe next year.
William Tay: So I will say that we probably take this year to do all this, planning. Possibly, if there's a development or any other options that we are looking at, we will look at it after we get the confirmation of what and what we can build in on the site, so maybe next year.
Speaker #5: So maybe next year.
Speaker #6: Sorry. So currently, I mean, am I going to should we assume that occupancy is what is reflected in the supplementary
Jessie: Sorry. So, currently, I mean, am I gonna... Like, should we assume that occupancy is what is reflected in the supplementary information?
Jessie Lim: Sorry. So, currently, I mean, am I gonna... Like, should we assume that occupancy is what is reflected in the supplementary information?
Speaker #5: Yes. Yes. Yeah. So for those who are under planned for redevelopment, we also shared that there is no reason for tenants to come into the site and we will not actually be actively marketing it.
William Tay: Yes. Yes. Yeah. So for those who are under plan for redevelopment, we also shared that there is no reason for tenants to come into the site, and we will not actually be actively marketing it, because if it's later for development or redevelopment, tenants comes in, and then subsequently will relocate, there's a lot of disruption to their occupation. So we have, if, for example, UK, where we decided to develop one of, redevelop one of the site that is that just vacated, it's part of our plan that we know that occupancy will fall away, so that we can then prepare the site for development.
William Tay: Yes. Yes. Yeah. So for those who are under plan for redevelopment, we also shared that there is no reason for tenants to come into the site, and we will not actually be actively marketing it, because if it's later for development or redevelopment, tenants comes in, and then subsequently will relocate, there's a lot of disruption to their occupation. So we have, if, for example, UK, where we decided to develop one of, redevelop one of the site that is that just vacated, it's part of our plan that we know that occupancy will fall away, so that we can then prepare the site for development.
Speaker #5: Because if it's later for development or redevelopment, tenants come in and then subsequently will relocate. There's a lot of disruption to their occupation. So we have, I think, for example, UK: when we decided to develop or redevelop one of the sites that is just vacated, it's part of our plan that we know that occupancy will fall away.
Speaker #5: So that we can then prepare the site for development.
Speaker #6: Okay. Thank you.
Jessie: Okay, thank you.
Jessie Lim: Okay, thank you.
Speaker #3: Okay. We all have.
Andrea: Okay. We all have-
Operator: Okay. We all have-
Speaker #5: Yeah. On your question about Singapore legacy BP spaces, I suppose if you look at the different subclusters that we have, and where perhaps the occupancy is a bit lower, it would be one at the IBP cluster, which is in Jurong.
James Goh: Yeah. On your question about Singapore legacy BP spaces, I suppose, if you look at the different subclusters that we have and where perhaps the occupancy is a bit lower, would be one at the IBP cluster, which is in Jurong. We are currently at about, on average, about 50% occupancy, and the reason for that is severalfold. We are progressively redeveloping the assets there to take advantage of the new MRT station that's gonna come up. We have got 27 IBP that is currently under construction, very close to TOP, and that would have direct linkage via pedestrian walkway or bridge to the new station when it opens. So what we are also planning to do is, progressively, we will be redeveloping the other buildings that's within a walking distance of the MRT.
James Goh: Yeah. On your question about Singapore legacy BP spaces, I suppose, if you look at the different subclusters that we have and where perhaps the occupancy is a bit lower, would be one at the IBP cluster, which is in Jurong. We are currently at about, on average, about 50% occupancy, and the reason for that is severalfold. We are progressively redeveloping the assets there to take advantage of the new MRT station that's gonna come up. We have got 27 IBP that is currently under construction, very close to TOP, and that would have direct linkage via pedestrian walkway or bridge to the new station when it opens. So what we are also planning to do is, progressively, we will be redeveloping the other buildings that's within a walking distance of the MRT.
Speaker #5: We are currently at about an average of 50% occupancy, and the reason for that is severalfold. We are progressively redeveloping the assets there.
Speaker #5: To take advantage of the new MRT station that's going to come up, we have got 27 IBP that is currently under construction, very close to TOP, and that would have direct linkage via pedestrian walkway or bridge to the new station when it opens.
Speaker #5: So what we are also planning to do is progressively we will be redeveloping the other buildings that's within walking distance of the MRT and in a way you can think of it as a warehousing those assets and you'll expect that the occupancy would continue to come down as a result.
James Goh: And in a way, you can think of it as warehousing those assets, and you expect that the occupancy would continue to come down as a result. But again, given the diversity of our portfolio, we feel that this is a worthwhile trade-off because the future payoff is gonna be much higher than if you were to try and just lease these on as is where is basis. Next, I move on to the other cluster, which is in Changi, CBP. That was in the news about a year and a half back, when there was a lot of concern, there was a lot of negative news flow about that place. If you look at how we have performed year-on-year, last year, on average, we were doing about 81%.
James Goh: And in a way, you can think of it as warehousing those assets, and you expect that the occupancy would continue to come down as a result. But again, given the diversity of our portfolio, we feel that this is a worthwhile trade-off because the future payoff is gonna be much higher than if you were to try and just lease these on as is where is basis. Next, I move on to the other cluster, which is in Changi, CBP. That was in the news about a year and a half back, when there was a lot of concern, there was a lot of negative news flow about that place. If you look at how we have performed year-on-year, last year, on average, we were doing about 81%.
Speaker #5: But again, given the diversity of our portfolio, we feel that this is worthwhile trade-off because the future payoff is going to be much higher than if you were to try and just lease this on as it's where it's based.
Speaker #5: Next, I move on to the other cluster, which is in Changi, CBP. That was in the news about a year and a half back, when there was a lot of concern.
Speaker #5: There was a lot of negative look at how we have performed year on year, last year on average, we were doing about year in December, we are at about 83%.
James Goh: This year in December, we did, we are at about 83%, so there's a slight 200 basis point improvement. Might not seem like a large number, but in a difficult and challenging market, we continue to outperform, and there are a lot of things that we are doing or have done, including applying to the authorities for change of use from BP space to FSS, which is education. We have got one of our buildings, 3 CBP, where we've actually done that. Progressively, we also have pockets of spaces within CBP that's been converted into such educational usage. So our game plan is really to continue to engage the authorities to get them to accept different or adjacent users, such that then they can, we can really revitalize the entire vicinity.
James Goh: This year in December, we did, we are at about 83%, so there's a slight 200 basis point improvement. Might not seem like a large number, but in a difficult and challenging market, we continue to outperform, and there are a lot of things that we are doing or have done, including applying to the authorities for change of use from BP space to FSS, which is education. We have got one of our buildings, 3 CBP, where we've actually done that. Progressively, we also have pockets of spaces within CBP that's been converted into such educational usage. So our game plan is really to continue to engage the authorities to get them to accept different or adjacent users, such that then they can, we can really revitalize the entire vicinity.
Speaker #5: So there's a slight 200 basis point improvement. Might not seem like a large number, but in a continue to outperform. And there are a lot of things that we are doing or have done.
Speaker #5: Including applying to the authorities for change of use, from BP space to FSS, which is education. We have got one of our buildings, 3CBP, where we have actually done that.
Speaker #5: Progressively, we also have pockets of spaces within CBP that's been converted into such educational usage. So our game plan is really to continue to engage the authorities to get them to accept different or adjacent users such that then they can we can really revitalize the entire vicinity.
Speaker #5: And I'm very happy to say that the regulators are now a lot more open and receptive towards a change of use. Because they have also come to the realization that the legacy demand or users of BP spaces have largely reduced their requirements, and that we really need to find new sources of demand to backfill those spaces.
James Goh: I'm very happy to say that the regulators are now a lot more open and receptive towards change of use, because they have also come to the realization that the-
James Goh: I'm very happy to say that the regulators are now a lot more open and receptive towards change of use, because they have also come to the realization that the-
Li Si Khoo: ... the legacy demand or users of BP spaces have largely reduced their requirements, and that we really need to find new sources of demand to, to backfill those spaces. And they are really on board and helping us with that as well. So I hope I've answered your question.
James Goh: ... the legacy demand or users of BP spaces have largely reduced their requirements, and that we really need to find new sources of demand to, to backfill those spaces. And they are really on board and helping us with that as well. So I hope I've answered your question.
Speaker #5: And they are really on board and helping us with that as well. So I hope I've answered your
Speaker #5: question. Thank you, Jessie
Andrea: Thank you, Jessie, James, and William. May I have the next question? Joy from HSBC.
James Goh: Thank you, Jessie, James, and William. May I have the next question? Joy from HSBC.
Speaker #3: And James, that's William. May I have the next question? Joy from HSBC.
Speaker #6: Okay, thanks. First question on cost of debt. Can we get some guidance in terms of the currency of debt that is expiring for '26, and if possible, '27?
Joy: Hey, thanks. First question on cost of debt. Can we get some guidance and in terms of currency of debt that is expiring for 2026, and if possible, 2027? Second question on divestment. Can we look at the same pace or even more divestment in 2026? And in terms of sort of expectation on CapEx as well for 2026. Thank you.
Joy Wang: Hey, thanks. First question on cost of debt. Can we get some guidance and in terms of currency of debt that is expiring for 2026, and if possible, 2027? Second question on divestment. Can we look at the same pace or even more divestment in 2026? And in terms of sort of expectation on CapEx as well for 2026. Thank you.
Speaker #6: Second question on divestment. Can we look at the same pace or even more divestment in 2026? And in terms of sort of expectation on CapEx as well for '26?
Speaker #6: Thank you.
Speaker #5: I would think the second question, and this is going to take your first. So divestment, we have done 500 million last year. This year, we believe that we will work around 300 to 500 million.
William Tay: I'll take the second question, and Lisa can take your first. So divestment, we have done SGD 500 million last year. This year, we believe that we will work around SGD 300 to 500 million in order to recycle and fund any acquisitions that we may come across. In terms of pace, we have some interest in some of the assets as well as some of our assets that we think that it will be good for us to divest. So we are definitely working on this. I think you look at our track record, whether is it unsolicited interest or if it's an asset that we have pushed out to the market, we're always very keen to look at premium.
William Tay: I'll take the second question, and Lisa can take your first. So divestment, we have done SGD 500 million last year. This year, we believe that we will work around SGD 300 to 500 million in order to recycle and fund any acquisitions that we may come across. In terms of pace, we have some interest in some of the assets as well as some of our assets that we think that it will be good for us to divest. So we are definitely working on this. I think you look at our track record, whether is it unsolicited interest or if it's an asset that we have pushed out to the market, we're always very keen to look at premium.
Speaker #5: In order to recycle and fund any acquisitions that we may come across. In terms of pace, we will—we have some interest in some of the assets, as well as some of our assets that we think that it will be good for us to divest.
Speaker #5: So we are definitely working on this. I think you have looked at our track record. Whether is it unsolicited interest or if it's an asset that we have pushed out to the market, we are always very keen to look at we definitely want to be able to recycle well in order to acquire better direct hope you agree with answered your that.
William Tay: So we definitely want to be able to recycle well in order to acquire better. Derek, I hope you agree with that. Have I answered your question?
William Tay: So we definitely want to be able to recycle well in order to acquire better. Derek, I hope you agree with that. Have I answered your question?
Speaker #5: question? Have I
Speaker #6: And the CapEx for
Joy: The CapEx for 2026.
Joy Wang: The CapEx for 2026.
William Tay: CapEx now, okay, in terms of our development and redevelopment, about SGD 700 million ongoing. We will have about 200, 220, 230 of value to be turned on this year, primarily from Singapore, 27 IBP, as well as the US logistics. So that has freed up another SGD 200 million for redeployment. I also mentioned that, you know, on a rolling basis, every three years, we hope to be able to hit about SGD 1.5 billion. So with that, with the UK asset that we have slated for redevelopment, and then the question about Telepark and all this adding on, we will still look at possibly the same traction.
Speaker #5: CapEx now, okay, '26? in terms of our development and redevelopment, about 700 million ongoing. We will have about 200, 220, 230 value to be turned on this year, primarily from Singapore 27 IBP as well as the US logistics.
William Tay: CapEx now, okay, in terms of our development and redevelopment, about SGD 700 million ongoing. We will have about 200, 220, 230 of value to be turned on this year, primarily from Singapore, 27 IBP, as well as the US logistics. So that has freed up another SGD 200 million for redeployment. I also mentioned that, you know, on a rolling basis, every three years, we hope to be able to hit about SGD 1.5 billion. So with that, with the UK asset that we have slated for redevelopment, and then the question about Telepark and all this adding on, we will still look at possibly the same traction.
Speaker #5: So that has freed up another $200 million for redeployment. I also mentioned that, on a rolling basis, every three years, we hope to be able to hit about $1.5 billion.
Speaker #5: So with that, we've the UK asset that we have slated for redevelopment, and then the question about Telepark and all this, adding on, we will still look at possibly the same traction.
Speaker #5: So now about $500 million will add on more because of $200 million will be freed up. So we'll add on more for until the end of the—
William Tay: So now about SGD 500 million, we add on more because SGD 200 million will be freed up, so we add on more, for until the end of the year.
William Tay: So now about SGD 500 million, we add on more because SGD 200 million will be freed up, so we add on more, for until the end of the year.
Speaker #5: year. Probably means if you're
Joy: That probably means if you're looking at acquisition, you will have to tap the market for equities.
Joy Wang: That probably means if you're looking at acquisition, you will have to tap the market for equities.
Speaker #6: Looking at acquisition, you will have to tap the market for
William Tay: Acquisitions, if you look at where we are in terms of leverage, even for our last acquisition with Columbus, in terms of leverage, hardly any impact, I mean, 0.1 or less. So if you come across big acquisition, because we are looking at between SGD 300 to 500 million, that's actually quite sizable already. Well, I recognize that, like, for example, Derek mentioned, which is a fair point. Our track record for past five years, we've done about SGD 1 billion each year, right? So if we do on the same trajectory, we may have to look at tapping the market, yes, but nothing, nothing of obviously, I'm trying to say right now, with the divestment, hopefully, we can actually be able to recycle this capital. And then-
Speaker #5: Acquisitions, if you look at where we are in terms of leverage—even for our last acquisition with Columbus—in terms of leverage, hardly any impact.
William Tay: Acquisitions, if you look at where we are in terms of leverage, even for our last acquisition with Columbus, in terms of leverage, hardly any impact, I mean, 0.1 or less. So if you come across big acquisition, because we are looking at between SGD 300 to 500 million, that's actually quite sizable already. Well, I recognize that, like, for example, Derek mentioned, which is a fair point. Our track record for past five years, we've done about SGD 1 billion each year, right? So if we do on the same trajectory, we may have to look at tapping the market, yes, but nothing, nothing of obviously, I'm trying to say right now, with the divestment, hopefully, we can actually be able to recycle this capital. And then-
Speaker #5: I mean, $0.1 billion or less. So if you come across big acquisitions, because we are looking at between $300 million and $500 million, that's actually quite sizable already.
Speaker #5: Well, I recognize that, for example, Derek mentioned—which is a fair point—years, we've done about a billion each. Our track record has been, for the past five years, about $1 billion per year.
Speaker #5: Right? So if we do on the same trajectory, we may have to look at tapping the market, yes. But nothing, obviously, I'm trying to say right now. With the divestment, hopefully we can actually be able to recycle this capital.
Speaker #5: On that.
Speaker #3: Okay. Thank you. So the interest rate for this year is a reduction from 3.7, 3.5 this year. So based on what we see, we expect it to be broadly around this range.
Joy: Okay, thank you.
Joy Wang: Okay, thank you.
Li Si Khoo: So the interest rate for this year is a reduction from 3.7 to 3.5 this year. So based on what we see, we expect it to be broadly around this range for 2026.
Koo Lee Sze: So the interest rate for this year is a reduction from 3.7 to 3.5 this year. So based on what we see, we expect it to be broadly around this range for 2026.
Speaker #3: For 2026. Mm-hmm.
Speaker #6: 3.5?
Joy: 3.5?
Joy Wang: 3.5?
Li Si Khoo: Mm-hmm.
Koo Lee Sze: Mm-hmm.
Joy: Okay.
Joy Wang: Okay.
Li Si Khoo: Yeah. Then for expiry, for 2026 and 2027, portion of SGD and the rest are AUD and USD.
Koo Lee Sze: Yeah. Then for expiry, for 2026 and 2027, portion of SGD and the rest are AUD and USD.
Speaker #3: And for expiry for
Speaker #3: '26 and Okay. '27, portion of SGD and the rest are AUD and
Speaker #3: USD.
Joy: So your SGD debt will come down, and then your USD and Aussie debt will still go up?
Joy Wang: So your SGD debt will come down, and then your USD and Aussie debt will still go up?
Speaker #6: Down, and then your USD and Aussie debt will still go...
Speaker #6: Down, and then your USD and Aussie debt will still go up? Is that fair? No,
Li Si Khoo: Um-
Koo Lee Sze: Um-
Joy: Is that fair?
Joy Wang: Is that fair?
Li Si Khoo: No, it will not. It's refinancing, right? So you're asking which currency. So it's AUD and USD, mainly for the 2026 and 2027, and a small portion of SGD debt that's due for refinancing.
Koo Lee Sze: No, it will not. It's refinancing, right? So you're asking which currency. So it's AUD and USD, mainly for the 2026 and 2027, and a small portion of SGD debt that's due for refinancing.
Speaker #3: It will not. It's refinancing, right? So you're asking which currency? It's AUD and USD, mainly for the '26 and '27, and a small portion of SGD debt that's due for refinancing.
Speaker #5: So Joy, if you look at the tower, if you're asking for currency, I think Lizzie has mentioned, part of it actually is foreign currency.
William Tay: So Joy, if you look at the tower, if you're asking for currency, I think Lisa has mentioned, part of it actually is foreign and, foreign currency. Foreign currency, against what we have contracted 5 years ago, easily 200, 250 basis point higher. So with the Singapore dollar, Singapore dollar, I think, is fairly stable, from what we have done 5, 10 years ago. So that tower will still be higher cost than what we are contracted, which is a norm, because every of these tower were contracted 5, 7, 10 years ago. So we will still be looking at refinancing on higher cost. But because with, with divestment, with new acquisition, new debt will come in, they were lower cost.
William Tay: So Joy, if you look at the tower, if you're asking for currency, I think Lisa has mentioned, part of it actually is foreign and, foreign currency. Foreign currency, against what we have contracted 5 years ago, easily 200, 250 basis point higher. So with the Singapore dollar, Singapore dollar, I think, is fairly stable, from what we have done 5, 10 years ago. So that tower will still be higher cost than what we are contracted, which is a norm, because every of these tower were contracted 5, 7, 10 years ago. So we will still be looking at refinancing on higher cost. But because with, with divestment, with new acquisition, new debt will come in, they were lower cost.
Speaker #5: Foreign currency, against what we have contracted five years ago, is easily 200, 250 basis points higher. So with the same dollar—same dollar—I think it's fairly stable from what we have done five, ten years ago.
Speaker #5: So that tower will still be higher cost than what we have contracted. Which is a norm because every of these towers were contracted 5, 7, 10 years ago.
Speaker #5: So we will still be looking at refinancing on higher we've divestment, we've new acquisition, new debt will come in as there are lower costs.
Speaker #5: Hopefully, we are able to maintain and we are looking at maintaining about 3.5%. Hope that addresses your question. Thanks.
William Tay: Hopefully, we are able to maintain, and we are all looking at maintaining about 3.5%. Hope that addresses your question. Thanks.
William Tay: Hopefully, we are able to maintain, and we are all looking at maintaining about 3.5%. Hope that addresses your question. Thanks.
Speaker #3: Thank you, Joy. We will move to Mervin. You may ask your question from
James Goh: Thank you, Joy. We will move to Mervin. You may ask your question from JPM.
Operator: Thank you, Joy. We will move to Mervin. You may ask your question from JPM.
Speaker #3: JPM.
Speaker #7: Hi,
Mervin: Hi, William. Maybe we can go to slide 39. Those are US expiries. Just want to double-check the, for the 27 expiry, is that all logistics? And maybe you can update us in terms of what's happening with the upcoming San Francisco office leases.
Mervin Song: Hi, William. Maybe we can go to slide 39. Those are US expiries. Just want to double-check the, for the 27 expiry, is that all logistics? And maybe you can update us in terms of what's happening with the upcoming San Francisco office leases.
Speaker #7: William. Maybe we can go to slide 39. Does the US the for the '27 expiry, is that all logistics and maybe you can update us in terms of what's happening with the upcoming San Francisco office
William Tay: 26 are mostly, mostly logistics.
Speaker #5: '26, I'm
William Tay: 26 are mostly, mostly logistics.
Speaker #5: mostly logistics. leases? '27? '27 is office, majority is office. One SF building will be in the
Mervin: Twenty-seven?
Mervin Song: Twenty-seven?
William Tay: 27 is office. A majority is office. 1 SF building will be in the 27 bucket.
William Tay: 27 is office. A majority is office. 1 SF building will be in the 27 bucket.
Speaker #5: '27 bucket. And are
Mervin: Are they staying or?
Mervin Song: Are they staying or?
Speaker #7: they staying or? Okay.
William Tay: They are staying right now.
William Tay: They are staying right now.
Speaker #5: now. They are staying right
Mervin: Okay. Okay, can we touch on one-north precinct? There's potential movement within A*STAR. Heard that Canon's moving Galaxis to ATP. Can we talk about the competitive pressures there once A*STAR moves out, whether other people want to poach some of your tenants? Thanks.
Speaker #7: Okay. Can we touch on one North Precinct? There's ASTAR. Heard that Canon's moving GALLAXY to ATP. Can we talk about the competitive pressures there once ASTAR moves out, and whether other people want to poach some of your tenants?
Mervin Song: Okay. Okay, can we touch on one-north precinct? There's potential movement within A*STAR. Heard that Canon's moving Galaxis to ATP. Can we talk about the competitive pressures there once A*STAR moves out, whether other people want to poach some of your tenants? Thanks.
William Tay: You can add on. Canon is still with us. If you look at occupancy numbers, Galaxis, there's a dip. I think we all know that Shopee has downsized. They renew every, the floors that they need. They have moved the Shopee money to SeaMoney, to Rochester. That happens. While we have talked about it for many quarters, it only happened in the last quarter of last year. We are marketing those sites. Just the two floors that we have right now, we have pipelined, and I think we are on track to be able to lease them up. Right? If you are asking whether there's any relocation musical chair, I think we face all the pressure all the time, including us poaching from other landlords.
Speaker #5: You can
William Tay: You can add on. Canon is still with us. If you look at occupancy numbers, Galaxis, there's a dip. I think we all know that Shopee has downsized. They renew every, the floors that they need. They have moved the Shopee money to SeaMoney, to Rochester. That happens. While we have talked about it for many quarters, it only happened in the last quarter of last year. We are marketing those sites. Just the two floors that we have right now, we have pipelined, and I think we are on track to be able to lease them up. Right? If you are asking whether there's any relocation musical chair, I think we face all the pressure all the time, including us poaching from other landlords.
Speaker #5: Thanks. The cannon is still with us. So if you look at the occupancy numbers, for Galaxis there's a dip. I think we all know that Shopee has downsized.
Speaker #5: They have renewed every floor that they need. They have moved the Shopee money to Sea Money to Rochester. So that happens, while we have talked about it for many quarters.
Speaker #5: It only happened in the last quarter of last year. We are marketing those sites, the two floors that we have right now. We have pipeline able to lease them, and I think we are on track to be up.
Speaker #5: Right? If you are asking whether there's any relocation musical chairs, I think we face all the pressure all the time—including us poaching from other landlords.
Speaker #5: Even for Genue, I think there are other we also have mentioned that there are new tenants as well as relocation tenants that we have worked on.
William Tay: Even for Geneo, I think there are other... We also have mentioned that there are new tenants as well as relocation tenants that we have worked on.
William Tay: Even for Geneo, I think there are other... We also have mentioned that there are new tenants as well as relocation tenants that we have worked on.
Speaker #7: Sure. Yeah. Just to add on to what William has said, personally, I'm not too concerned, particularly for Galaxis. It has got direct connection to the MRT, it has got fantastic retail offerings.
Mervin: Sure.
Mervin Song: Sure.
James Goh: Yeah. Just to add on to what William has said, personally, I'm not too concerned, particularly for Galaxis. It has got direct connection to the MRT, it's got fantastic retail offerings, so and it's just on the fringe of the CBD area. So personally, like I say, I think that we'll lease it. It's just a matter of timing and the right tenant coming along.
James Goh: Yeah. Just to add on to what William has said, personally, I'm not too concerned, particularly for Galaxis. It has got direct connection to the MRT, it's got fantastic retail offerings, so and it's just on the fringe of the CBD area. So personally, like I say, I think that we'll lease it. It's just a matter of timing and the right tenant coming along.
Speaker #7: So, and it's just on the fringe of the CBD area. So personally, like I say, I think that we'll lease it; it's just a matter of timing.
Speaker #7: And the right tenant coming along. Final question for me, quite excited in '27, '28 with some of your developments, come on stream. So this should be a big boost to earnings.
Mervin: Final question for me. Quite excited in 2027, 2028 with some of your developments, you know, come on stream, so this should be a big boost to, to earnings. But you're doing more developments, it seems, which are high, much higher yielding than acquisitions. But can you talk about which markets look a bit attractive in terms of development or greenfield development? Is that US more so or still Singapore? Thanks.
Mervin Song: Final question for me. Quite excited in 2027, 2028 with some of your developments, you know, come on stream, so this should be a big boost to, to earnings. But you're doing more developments, it seems, which are high, much higher yielding than acquisitions. But can you talk about which markets look a bit attractive in terms of development or greenfield development? Is that US more so or still Singapore? Thanks.
Speaker #7: But you're doing more developments, it seems, which are much higher yielding than acquisitions. But can you talk about which markets look a bit attractive in terms of development or greenfield development?
Speaker #7: Is that US, Mossel, or still Singapore?
Speaker #7: Thanks. If it's redevelopment,
William Tay: If it's redevelopment, more Singapore. Where there's overseas opportunities, depending on the expiry, just like UK data center, is because of the tenant expire. And before they expire, we already put in application for higher power. The logistics that we are coming across, that we come across in UK, because of potential expiry, about a year ago, we started looking at that, and we planned that for redevelopment. Singapore continue attractive, given the fact that, if you look at all current existing projects that we have, the key consideration is higher plot ratio. And with higher plot ratio, and we can build better quality, higher plot ratio, we can introduce... For example, at Geneo, we have introduced complementary users. The amenities are doing very well.
William Tay: If it's redevelopment, more Singapore. Where there's overseas opportunities, depending on the expiry, just like UK data center, is because of the tenant expire. And before they expire, we already put in application for higher power. The logistics that we are coming across, that we come across in UK, because of potential expiry, about a year ago, we started looking at that, and we planned that for redevelopment. Singapore continue attractive, given the fact that, if you look at all current existing projects that we have, the key consideration is higher plot ratio. And with higher plot ratio, and we can build better quality, higher plot ratio, we can introduce... For example, at Geneo, we have introduced complementary users. The amenities are doing very well.
Speaker #5: More Singapore. Where there's overseas opportunities, depending on the expiry—just like the UK data center is because of the tenant expiry—and before they expire, we already put in an application for higher power.
Speaker #5: The logistics that we are coming across that we have come across in UK because of potential expiry about a year ago, we started looking at that and we planned that for a redevelopment.
Speaker #5: Singapore continually attractive given the fact that if you look at all current existing projects that we have, the key consideration is higher plot ratio.
Speaker #5: And with higher plot ratio, we can build better quality. With higher plot ratio, we can introduce, for example—at Genue, we have introduced complementary users.
Speaker #5: The amenities are doing very well. That actually is a good selling point. Given for tenants—I mean, employees of the tenants—the other point also is because as we refresh, our one key consideration the tenants have.
William Tay: That actually is a good selling point, given for tenants, I mean, employees of the tenants. The other point also is because as we refresh our property, right to quality is actually one key consideration the tenants have. While it's not easy for them to relocate, because if you were to come into a new building, they sign on a 5 years, 10, 10 years lease, that's actually attractive for them because they can refresh their own office space, their own, users, usage. And we've coupled with all these, new work habits of work from home, flex office. For example, Juno, I think we also have introduced a tenant who are able to do co-lab, so, like co-working. So these are actually new solutions, that we have bring about in our development.
William Tay: That actually is a good selling point, given for tenants, I mean, employees of the tenants. The other point also is because as we refresh our property, right to quality is actually one key consideration the tenants have. While it's not easy for them to relocate, because if you were to come into a new building, they sign on a 5 years, 10, 10 years lease, that's actually attractive for them because they can refresh their own office space, their own, users, usage. And we've coupled with all these, new work habits of work from home, flex office. For example, Juno, I think we also have introduced a tenant who are able to do co-lab, so, like co-working. So these are actually new solutions, that we have bring about in our development.
Speaker #5: While it's not easy for them to relocate, because if we were to property, flight to quality is actually come into a new building, they sign on a five-year ten-year lease.
Speaker #5: That's actually attractive for them because they can refresh their own office space, their own users, usage. And we've coupled with all these new work habits of work from home, flex office—for example, Genue. I think we also have introduced a tenant who is able to do colab.
Speaker #5: So, like co-working. So, these are actually new solutions that we have brought about in our development. So, these are areas that we want to be able to continue.
William Tay: So these are areas that we want to be able to continue. So Singapore will continue to be a place for us to look at development and redevelopment.
William Tay: So these are areas that we want to be able to continue. So Singapore will continue to be a place for us to look at development and redevelopment.
Speaker #5: So Singapore will continue to be a place for us to look at development, and
Speaker #5: redevelopment. So just to
Mervin: So just to clarify also, you said on a rolling basis, you have about SGD 1.5 billion worth of development-
Mervin Song: So just to clarify also, you said on a rolling basis, you have about SGD 1.5 billion worth of development-
Speaker #7: Clarify also, you said on a rolling basis, you have about $1.5 billion worth.
Speaker #7: of development. We've achieved about 1.5
William Tay: We hope to achieve about SGD 1.5 billion. So like-
William Tay: We hope to achieve about SGD 1.5 billion. So like-
Speaker #5: Billion. So yeah. So you look at the projects that have been turned on—each year we probably can turn on two, three hundred million.
Mervin: Yeah.
Mervin Song: Yeah.
William Tay: Yeah. So you look at the projects that have been turned on. Each year, we probably can turn on SGD 200-300 million. This was the pace that we have built up in the past 2-3 years. We hope to accelerate that. We can then do more development, and hopefully, as the time comes and these new developments as they are in commission again, we will have that SGD 500 million, kind of a rolling basis.
William Tay: Yeah. So you look at the projects that have been turned on. Each year, we probably can turn on SGD 200-300 million. This was the pace that we have built up in the past 2-3 years. We hope to accelerate that. We can then do more development, and hopefully, as the time comes and these new developments as they are in commission again, we will have that SGD 500 million, kind of a rolling basis.
Speaker #5: This was the pace the last two, three years. We hope to accelerate that. We can then do more development, and hopefully, as the time comes and these new developments are, as you have been commissioned again, we will have that $500 million kind of a rolling.
Speaker #7: Okay.
Mervin: Okay, excellent.
Mervin Song: Okay, excellent.
Speaker #7: Excellent. Thank you, Marvin.
Andrea: ... Thank you, Mervin. We'll have the next question from Dale from DBS.
Operator: ... Thank you, Mervin. We'll have the next question from Dale from DBS.
Speaker #1: We'll have the next question from Dale from DBS.
Speaker #4: Yeah, thank you. Hi, William and team. Just wanted to follow up on what you just mentioned—when you do a redevelopment, you want to hopefully get more plot ratio, better use.
Dale: Yeah. Thank you. Hi, hi, William and team. Just wanted to follow up on what you just mentioned. When you do a redevelopment, you want to hopefully get, you know, more plot ratio, better use. So going back to the IBP example, you know, what should we be expecting when you want to rejuvenate the assets there? What kind of ROI are we expecting? And then, you know, what's gonna be changing there in terms of the kind of tenants you can attract?
Dale Lai: Yeah. Thank you. Hi, hi, William and team. Just wanted to follow up on what you just mentioned. When you do a redevelopment, you want to hopefully get, you know, more plot ratio, better use. So going back to the IBP example, you know, what should we be expecting when you want to rejuvenate the assets there? What kind of ROI are we expecting? And then, you know, what's gonna be changing there in terms of the kind of tenants you can attract?
Speaker #4: So going back to the IBP basis. example, what should we be expecting when you want to rejuvenate the assets there? What kind of ROI are we expecting?
Speaker #4: And then what's going to be changing there in terms of the kind of tenants you can attract?
William Tay: So, IBP, most of the business park in Singapore assets, in terms of development, we still be looking at, say, about 7%. For example, Jurong was because of the size of the project and the quality that we have built in, where we first announced about 6.3%. But where we have landed in terms of the occupancy as well as the rental, it has improved. It's much better than 6.3%. If you take a development in, a redevelopment of 521, we announced that time was between 6.5 to... Sorry, 7.5 to about 8.5. We have achieved today about 8%.
William Tay: So, IBP, most of the business park in Singapore assets, in terms of development, we still be looking at, say, about 7%. For example, Jurong was because of the size of the project and the quality that we have built in, where we first announced about 6.3%. But where we have landed in terms of the occupancy as well as the rental, it has improved. It's much better than 6.3%. If you take a development in, a redevelopment of 521, we announced that time was between 6.5 to... Sorry, 7.5 to about 8.5. We have achieved today about 8%.
Speaker #7: IBP, most of the business plot in development, we still be looking at, say, about 7%. For example, Genue was Singapore assets in terms of because of the size of the project and the quality that we have built in, when we first announced about 6.3%.
Speaker #7: But where we have landed in terms of the occupancy as well as the renter, it has improved. It's much better than 6.3%. If you take a development in redevelopment of five to one, we announced that time was between six and a half to, I'm sorry, seven and a half to about eight and a half.
Speaker #7: We have achieved today about 8%. So I think this is where the yield on cost is attractive for us to develop, especially, for example, IBP, as James mentioned, is near the MRT station.
William Tay: So I think this is where the yield on cost is attractive for us to develop, especially, for example, IBP, as James mentioned, is near MRT station, and that's actually be a game changer for us.
William Tay: So I think this is where the yield on cost is attractive for us to develop, especially, for example, IBP, as James mentioned, is near MRT station, and that's actually be a game changer for us.
Speaker #7: And that's actually be a game changer for us.
Speaker #4: In terms of the tenants that you can attract, do you expect it to be different from the kind of tenants that are typically there now?
Dale: In terms of the tenants that you can attract, do you expect it to be different from the kind of tenants that are typically there now?
Derek Tan: In terms of the tenants that you can attract, do you expect it to be different from the kind of tenants that are typically there now?
William Tay: Variety of tenants... Okay, if traditional BP tenants will be attracted to new buildings, just like Jurong we have demonstrated, there are relocation. We can, it's 1 million sq ft, it's huge, and we can get tenants, both new and relocation tenants. So I think that's where it's attractive for existing traditional BP tenants. And what James has mentioned, we, we are not just looking at traditional BP tenants. Given the, some of these good location, take for example, IBP near MRT station, we definitely will try to see whether we can incorporate other usage. So potentially, part of the, higher plot ratio, we may ask for wide use to, to bring in other tenants to be able to have a better ecosystem.
Speaker #7: Variety of tenants. Tenants, we'll be okay. If a traditional BP is attracted to new buildings. Just at Genue, we have demonstrated there are relocations. We can—it's a million square feet.
William Tay: Variety of tenants... Okay, if traditional BP tenants will be attracted to new buildings, just like Jurong we have demonstrated, there are relocation. We can, it's 1 million sq ft, it's huge, and we can get tenants, both new and relocation tenants. So I think that's where it's attractive for existing traditional BP tenants. And what James has mentioned, we, we are not just looking at traditional BP tenants. Given the, some of these good location, take for example, IBP near MRT station, we definitely will try to see whether we can incorporate other usage. So potentially, part of the, higher plot ratio, we may ask for wide use to, to bring in other tenants to be able to have a better ecosystem.
Speaker #7: It's huge. And we can get tenants, both new and relocation tenants. So I think that's where it's attractive for existing traditional BP tenants. And, as James has mentioned, we are not just looking at traditional BP tenants.
Speaker #7: Given some of these good locations, take for example, IBP near the MRT station. We definitely will try to see whether we can incorporate other usage, so potentially part of the higher plot ratio when we ask for white use to bring in other tenants, to be able to have a better...
Speaker #7: Given some of these good locations, take for example, IBP near the MRT station, we definitely will try to see whether we can incorporate other usage. So potentially, part of the higher plot ratio when we ask for white use is to bring in other tenants, to be able to have a better ecosystem.
Speaker #4: So, potential to double plot ratio? Okay. Okay.
Dale: So potential to double plot ratio?
Derek Tan: So potential to double plot ratio?
William Tay: Don't know yet.
William Tay: Don't know yet.
Speaker #7: yet.
Dale: Okay. Okay, then, my second question is on the Kim Chuan data center. Yeah, so like you're saying, they'll be expiring soon, right? So what are the plans? Like, you mentioned also, you know, that the CFA 2, that will probably affect whether you are able to redevelop or, you know, use it for data center again. So what should we be expecting for that site? And as well as, I think there's another one coming up next year, right?
Derek Tan: Okay. Okay, then, my second question is on the Kim Chuan data center. Yeah, so like you're saying, they'll be expiring soon, right? So what are the plans? Like, you mentioned also, you know, that the CFA 2, that will probably affect whether you are able to redevelop or, you know, use it for data center again. So what should we be expecting for that site? And as well as, I think there's another one coming up next year, right?
Speaker #4: Then my second question is on the Kim Chuan data center. Yeah. So like you're saying, they'll be expiring soon, right? So what are the plans?
Speaker #4: Like you mentioned also, you know that CFA2, that will probably affect whether you are able to redevelop or use it for data center again.
Speaker #4: So what should we be expecting for that side? And as well as, I think there's another one coming up next year,
Speaker #4: right? Think No more.
William Tay: No more.
William Tay: No more.
Dale: Think, think... This is the last one, yeah?
Derek Tan: Think, think... This is the last one, yeah?
Speaker #4: That. This is the last one there. Okay.
Speaker #7: Yeah.
William Tay: Yeah.
William Tay: Yeah.
Dale: Okay.
Derek Tan: Okay.
William Tay: So, for, I think I mentioned for existing data center, there is no way we can push ahead to redevelop a data center. We definitely need a CFA license. It's either we partner with somebody, or obviously, obviously we try to apply on our own, right? Our current position is we prefer to work with operator for these two sites, but it's actually challenging, given the fact where the government has announced about where they want the new data center hub to be. So even a new data center operator were to be able to be awarded a license, I think the government also will encourage them to go to Jurong Island, right? And, for Telepark and Tampines, the underlying land use is commercial.
Speaker #7: So, I think I mentioned, for existing data centers, there is no way we can push ahead to redevelop a data center. We definitely need a CFA license.
William Tay: So, for, I think I mentioned for existing data center, there is no way we can push ahead to redevelop a data center. We definitely need a CFA license. It's either we partner with somebody, or obviously, obviously we try to apply on our own, right? Our current position is we prefer to work with operator for these two sites, but it's actually challenging, given the fact where the government has announced about where they want the new data center hub to be. So even a new data center operator were to be able to be awarded a license, I think the government also will encourage them to go to Jurong Island, right? And, for Telepark and Tampines, the underlying land use is commercial.
Speaker #7: It's either we partner with somebody, or obviously, obviously, we try to apply on our own, right? Our current position is we prefer to work with operator for these two sites.
Speaker #7: But it's actually challenging. Given the fact where the government has announced about where they want the new data center hub to be, so even the new data center operator will be able to be awarded a license I think the government also will encourage them to go to Drong Island, right?
Speaker #7: And for Cherry Park in Tampines, the underlying land use is commercial. So to be honest, I think it makes sense for us to redevelop or for us to look at commercial development, not a data center.
William Tay: So, to be honest, I think it makes sense for us to redevelop or to look, or else look at commercial development, not a data center. Kim Chuan is existing data center, but because of the restriction of getting new power, the alternative will be industrial. And if you look at high-tech industrial buildings, they are probably similar in terms of core and shell, in terms of rent, to a data center. So there is hardly any trade-off, because a core and shell lease out to Kim Chuan is almost like a high-tech development.
William Tay: So, to be honest, I think it makes sense for us to redevelop or to look, or else look at commercial development, not a data center. Kim Chuan is existing data center, but because of the restriction of getting new power, the alternative will be industrial. And if you look at high-tech industrial buildings, they are probably similar in terms of core and shell, in terms of rent, to a data center. So there is hardly any trade-off, because a core and shell lease out to Kim Chuan is almost like a high-tech development.
Speaker #7: Kim Chuan, it's existing data center. But because of the restriction of getting new power, the alternative will be industrial. And if you look at high-tech building industrial, they are probably similar in terms of core and shell in terms of renter to a data center.
Speaker #7: So, there is hardly any trade-off because a core and shell will release out to Kim Chuan—it's almost like a high-tech development.
Speaker #4: Okay, okay, got it. But just to recap, I think the last acquisition sponsor now also has some data center operating capabilities, right? So they could also be someone you partner with in terms—
Dale: Okay, okay, got it. But just to recap, I think with the last acquisition, sponsor now also has some data center operating capabilities, right? So they could also be someone you partner with in terms of data center?
Derek Tan: Okay, okay, got it. But just to recap, I think with the last acquisition, sponsor now also has some data center operating capabilities, right? So they could also be someone you partner with in terms of data center?
Speaker #4: of data center? Yes.
William Tay: Yes, yes.
William Tay: Yes, yes.
Speaker #7: Yes.
Dale: Okay. Okay-
Derek Tan: Okay. Okay-
Speaker #4: Okay.
William Tay: That's one other option, one option. There is also mention we can apply on our own. Yeah.
William Tay: That's one other option, one option. There is also mention we can apply on our own. Yeah.
Speaker #7: That's one other option. One, okay.
Speaker #4: That was just mentioned we can apply on our option. own. Okay.
Dale: Okay, yeah. Thank you.
Derek Tan: Okay, yeah. Thank you.
Speaker #4: Yeah. Thank Yeah.
Speaker #4: you. Thank you,
Andrea: Thank you, Dale. We'll just ask one question online. There's a question about: What is management's plan to increase distributable income and DPU?
Operator: Thank you, Dale. We'll just ask one question online. There's a question about: What is management's plan to increase distributable income and DPU?
Speaker #1: Dale. We'll just ask one question online. There's a question about what is management's plan to increase distributable income and DPU?
Li Si Khoo: Maybe I'll try, I'll answer that. I think the question was about the expansion of the enlarged unit base. Probably just to clarify, we did the EFR last year at mid, beginning of June, and but we managed to complete the acquisition only in August. So I think there's a small time gap, and that's why it resulted in the slight dip, a 1% drop in DPU. So if, I mean, of course we can't, but if we had been able to do it, DPU would have been stable, same as last year. Mm-hmm. But because we do the EFIs to actually to fund DPU accretive acquisitions, right? Yeah. So it will be accretive. Mm-hmm. So that answer the question.
Koo Lee Sze: Maybe I'll try, I'll answer that. I think the question was about the expansion of the enlarged unit base. Probably just to clarify, we did the EFR last year at mid, beginning of June, and but we managed to complete the acquisition only in August. So I think there's a small time gap, and that's why it resulted in the slight dip, a 1% drop in DPU. So if, I mean, of course we can't, but if we had been able to do it, DPU would have been stable, same as last year. Mm-hmm. But because we do the EFIs to actually to fund DPU accretive acquisitions, right? Yeah. So it will be accretive. Mm-hmm. So that answer the question.
Speaker #8: the question was about the expansion of the enlarged unit base. Probably just to And maybe I'll try I'll answer that. clarify, we did the EFR I think last year at the beginning of June, but we managed to complete the acquisition only in August.
Speaker #8: So I think that's a small time gap, and that's why it resulted in the slight dip of a 1% drop in DPU. So if—I mean, of course, we can't—but if we had been able to do it, DPU would have been stable, same as last year.
Speaker #8: Slightly. Because we do the EFR is to actually to fund DPU accretive acquisitions, right? Yeah. So it will be accretive. So that answer the question.
Speaker #1: Okay, thank you for Lisa. We'll move on to the next question, which is Jesse from Business Times.
Andrea: ... Okay, thank you for Lisa. We'll move on to the next question, which is, Jessie from The Business Times.
Operator: ... Okay, thank you for Lisa. We'll move on to the next question, which is, Jessie from The Business Times.
Speaker #9: Hello. So I wanted to clarify this earlier also. The part on Shopee, right? Just to understand, so currently they only have space in 5 Science Park and Rochester, right?
Jessie: Hello. So I wanted to clarify this earlier also. The part on Shopee, right? Just to understand, so currently they, they only have space in Science Park and Rochester, right? And the two floors... Oh, and Galaxis. So the two floors you mentioned, which they, we are marketing those sites, the two floors that we have right now, we have pipeline. I think we're on track to be able to list them properly. These two floors are at Galaxis.
Jessie Lim: Hello. So I wanted to clarify this earlier also. The part on Shopee, right? Just to understand, so currently they, they only have space in Science Park and Rochester, right? And the two floors... Oh, and Galaxis. So the two floors you mentioned, which they, we are marketing those sites, the two floors that we have right now, we have pipeline. I think we're on track to be able to list them properly. These two floors are at Galaxis.
Speaker #9: And the two floors and Galaxies. So, the two floors you mentioned, which we are marketing those sites, the two floors that we have right now, we have pipeline.
Speaker #9: I think we're on track to be able to list them properly. These two floors are at Galaxies. Okay. Okay. But this is
Speaker #7: Galaxies.
William Tay: Galaxis.
William Tay: Galaxis.
Jessie: Okay. Okay. But this is not a downsizing, right? This is just, moving people around, or?
Jessie Lim: Okay. Okay. But this is not a downsizing, right? This is just, moving people around, or?
Speaker #9: Not a downsizing, right? This is just moving people around, or?
William Tay: It's a downsize in Galaxis. SeaMoney is not considered business park.
Speaker #7: It's a downsize in Galaxies. Sea Money is not considered business park. So when they're given the license to be able to go into financial institutions, they have to go into a commercial building.
William Tay: It's a downsize in Galaxis. SeaMoney is not considered business park.
Jessie: Mm-hmm.
Jessie Lim: Mm-hmm.
William Tay: When they're given the license to be able to go into financial institution, they have to go into a commercial building.
William Tay: When they're given the license to be able to go into financial institution, they have to go into a commercial building.
Jessie: Okay.
Jessie Lim: Okay.
Speaker #7: So they have relocate that part
William Tay: So they have relocate that part of their business to Rochester Commons, which is a commercial building.
William Tay: So they have relocate that part of their business to Rochester Commons, which is a commercial building.
Speaker #7: of their business to Rochester Commons, which is a commercial building. Okay.
Speaker #9: Right. And then the two floors are being
Jessie: Right, and then the two floors are being backfilled.
Jessie Lim: Right, and then the two floors are being backfilled.
Speaker #9: backfilled. So we can Will be backfilled. say offenders is confident that they will be backfilled. Okay.
William Tay: Will be backfilled.
William Tay: Will be backfilled.
Jessie: So we can say, Ascendas is confident that they will be backfilled now?
Jessie Lim: So we can say, Ascendas is confident that they will be backfilled now?
Speaker #7: Yes. Yes.
William Tay: Yes.
William Tay: Yes.
Jessie: Okay, thank you.
Jessie Lim: Okay, thank you.
Speaker #9: Thank
Speaker #1: Thank you. We're almost at the hour. So if there are any final questions from the audience, you may raise your hand so that I can call out your name and you may ask the next question.
Andrea: Thank you. We're almost at the hour, so if there are any final questions from the audience, you may raise your hand so that I can call out your name, and you may ask the next question. Okay, if there are no further questions, then we will end this results briefing. Thank you everyone for joining online as well as physically. We wish you a good evening ahead.
Operator: Thank you. We're almost at the hour, so if there are any final questions from the audience, you may raise your hand so that I can call out your name, and you may ask the next question. Okay, if there are no further questions, then we will end this results briefing. Thank you everyone for joining online as well as physically. We wish you a good evening ahead.
Speaker #1: Okay. If there are no further questions, then we will end this results briefing. Thank you, everyone, for joining online as well as physically. We wish you a good evening ahead.
Speaker #7: So I bring this to a close. I just wanted to thank the investment team, ASA, our 2025—it's a very busy year for us.
William Tay: So I bring this to a close. I just wanted to thank the investment team, asset management team. If you look at our 2025, it's a very busy year for us. And the staff here in CapitaLand Ascendas REIT, as well as our asset managers, property managers, has been working very hard. Thank you so much. Thank you. Goodbye!
William Tay: So I bring this to a close. I just wanted to thank the investment team, asset management team. If you look at our 2025, it's a very busy year for us. And the staff here in CapitaLand Ascendas REIT, as well as our asset managers, property managers, has been working very hard. Thank you so much. Thank you.
Speaker #7: And the staff here in Capital and Sanders Reed as well as our asset managers, property managers has been working very hard. Thank you so much.
