Half Year 2026 CapitaLand Ascendas REIT Earnings Call

August 5, 2026

Speaker #2: Good evening. Welcome to the CapitaLand Ascendas Q1 2026 briefing. I'm Johanna from the Investor Relations team. Thank you for joining us today, both in person at Capitol Tower and remotely via Zoom.

[Company Representative] (CapitaLand Ascendas REIT): Good evening. Welcome to CapitaLand Ascendas REIT H1 2026 results briefing. I'm Johanna from the investor relations team. Thank you for joining us today in person at Capital Tower and remotely via Zoom. Please note that this briefing is recorded and will be made available on our website. We'll start shortly with a presentation by Director of Investor Relations, followed by questions and answers with our management team. I'm pleased to introduce the panel this evening. Mr. William Tay, our Chief Executive Officer. On his right, Ms. Koo Lee Sze, Chief Investment Officer. Mr. James Goh, Head of Portfolio Management for Singapore. Finally, Ms. Serene Ong, Head of Investment and Portfolio Management International. If you have any questions, please raise your hands and the microphone will be passed to you.

Speaker #2: Please note that this briefing is being recorded and will be made available on our website. We'll start shortly with a presentation by our Director of Investor Relations, followed by a question-and-answer session with our management team.

Speaker #2: I'm pleased to introduce the panel this evening: Mr. William Tay, our Chief Executive Officer; on his right, Ms. Ku Li Si, Officer; and Mr. James Goh, Head of Portfolio Management for Singapore.

[Company Representative] (CapitaLand Ascendas REIT): I'm pleased to introduce the panel this evening. Mr. William Tay, our Chief Executive Officer. On his right, Ms. Koo Lee Sze, Chief Investment Officer. Mr. James Goh, Head of Portfolio Management for Singapore. Finally, Ms. Serene Ong, Head of Investment and Portfolio Management International. If you have any questions, please raise your hands and the microphone will be passed to you.

Speaker #2: Finally, Ms. Serene Ong, Head of Investment and Portfolio Management International. If you have any questions, please raise your hand and the microphone will be passed to you.

Speaker #2: Please try to keep to two questions each time, and if you would like to supplement with more, we will circle back to you. For those online, you may post your questions in the chat box.

[Company Representative] (CapitaLand Ascendas REIT): Please try to keep to two questions each time. If you would like to supplement with more, we will circle back to you. For those online, you may post your questions on the chat box. With that, I'll hand over the time now through the highlights of the briefing.

Speaker #2: With that, I'll hand over the time now, to go through the highlights of the briefing.

Speaker #3: Thank you, Johanna, and thank you and welcome to everyone joining us online and physically for CLAS Mid-Year Results Briefing. So, CLAS delivered a resilient set of results for the first half of 2026.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Thank you, Johanna. Thank you and welcome to everyone joining us online and physically for CLAR's midyear results briefing. CLAR delivered a resilient set of results for the H1 2026. Distributable income was higher by 8.6% year-on-year at SGD 359.4 million, while the DPU remained stable at SGD 0.07482. The higher distribution was due to the acquisitions completed in 2025 and 2026, as well as the better performance from existing properties. These two factors more than offset the impact of about SGD 500 million of divestments completed in 2025. On the portfolio occupancy is 89.1%. This figure includes two new properties that were completed in the Q2. They are Summerville Logistics Center in the US as well as 27 IBP in Singapore.

Speaker #3: Distributable income was higher by 8.6% year-on-year, at $359.4 million, while the DPU remained stable at 7.482 cents. The higher distributable income was due to the acquisitions completed in 2025 and 2026, as well as the better performance from existing properties.

[Director of Investor Relations] (CapitaLand Ascendas REIT): The higher distribution was due to the acquisitions completed in 2025 and 2026, as well as the better performance from existing properties. These two factors more than offset the impact of about SGD 500 million of divestments completed in 2025. On the portfolio occupancy is 89.1%. This figure includes two new properties that were completed in the Q2. They are Summerville Logistics Center in the US as well as 27 IBP in Singapore.

Speaker #3: So, these two factors more than offset the impact of about $500 million of divestments completed in 2025. The portfolio occupancy is 89.1%. This figure includes two new properties that were completed in the second quarter.

Speaker #3: So, they are Somerville Logistics Center in the U.S., as well as 27 IBP in Singapore. So if we are to exclude completed properties, the portfolio occupancy would be 90.3%, which is a similar level to the previous quarter of 90.5%.

[Director of Investor Relations] (CapitaLand Ascendas REIT): If we are to exclude completed properties, the portfolio occupancy would be 90.3%, which is a similar level to the previous quarter of 90.5%. Rental reversions remain positive. For the H1 of the year, the average portfolio rental reversion is 5.2%. This reflects continued demand for our quality properties. For the Q2 specifically, the rental reversion is 5.2%. On capital management, the gearing declined to 39.7% from 42% the previous quarter. This followed the equity fundraising in the H1. To recap, the equity fundraising was to fund acquisitions, and we repaid some debt. It was a SGD 600 million private placement, as well as a SGD 300 million preferential offering, both of which were well oversubscribed. For the H1 2026, the cost of debt is 3.5%.

Speaker #3: Rental reversions remain positive. For the first half of the year, the average portfolio rental reversion is positive. This reflects continued demand for our quality properties.

Speaker #3: And for the second quarter specifically, the rental reversion is 5.2%. On capital management, the gearing declined to 39.7% from 42% in the previous quarter. This followed the equity fundraising in the first half.

Speaker #3: To recap, the equity fundraising was to fund acquisitions, and we repaid some debt. So it was a $600 million private placement, as well as a $300 million preferential offering.

Speaker #3: Both of which were well oversubscribed. For the first half of 2026, the cost of debt is 3.5%. This is a similar level to the first quarter, and 20 basis points lower than the first half of last year.

[Director of Investor Relations] (CapitaLand Ascendas REIT): This is a similar level to the Q1 and 20 basis points lower than the H1 of last year. Our portfolio rejuvenation strategy remains to grow and enhance the value of CLAR's portfolio. It's anchored on accretive acquisitions, selective redevelopments and developments, as well as disciplined divestments. For the year to date, we have executed on all three. In the H1 of the year, we completed more than SGD 1.1 billion. These are 9 quality properties in Singapore, the US, Europe as well as Japan. As mentioned, we completed the redevelopment of 27 IBP as well as the development of Summerville Logistics Center. Lastly, in July, that we are divesting Kim Chuan Telecommunications Complex for about SGD 200 million, which is 2 times the original purchase price, as well as a 32% premium to the independent market valuation.

Speaker #3: Our portfolio rejuvenation strategy remains. We grow and enhance the value of CLAR's portfolio. So, it's anchored on the equity of acquisitions, selective redevelopments and developments, as well as disciplined divestments.

Speaker #3: So year to date, we have executed on all three. In the first half of the year, we completed more than $1.1 billion, and these are nine quality properties in Singapore.

Speaker #3: The U.S., Europe, as well as Japan. So, as mentioned, we completed the redevelopment of 27 IBP, as well as the development of Somerville Logistics Center.

Speaker #3: And lastly, in July, we are divesting the Kim Chuan Telecommunications Complex for about $200 million, which is two times the original purchase price, as well as a 32% premium to the independent market valuation.

Speaker #3: So this sale price is meaningfully above the book value, indicating our ability to unlock value from the portfolio. On the financial performance, comparing the first half of this year against the first half of last year, gross revenue and NPI increased by 6.7% and 6.2%, respectively.

[Director of Investor Relations] (CapitaLand Ascendas REIT): This sale price is meaningfully above the book value. Our ability to unlock value from the portfolio. On the financial performance, comparing the H1 of this year against the H1 of last year, gross revenue and NPI increased by 6.7% and 6.2% respectively. This is due to acquisitions completed last year as well as this year, and the better performance from the Australia portfolio. As mentioned, it has offset the impact of the divestments completed in 2025. Distributable incomes are higher and DPU remains stable at SGD 0.07482 after accounting for the larger unit base, mainly due to the equity fundraising in the H1 of this year as well as the H1 of last year. Comparing this H1 of this year versus the H2 of last year, similarly, gross revenue and NPI increased by 2.8% and 2.2% respectively.

Speaker #3: This is due to acquisitions completed last year, as well as this year, and the better performance from the Australia portfolio. So, as mentioned, it has offset the impact of the divestments completed in 2025.

Speaker #3: Distributable income was higher, and DPU remained stable at 7.482 cents. This was after accounting for the larger unit base, mainly due to the equity fundraising in the first half of this year, as well as the first half of last year.

Speaker #3: Okay. Comparing the first half of this year versus the second half of last year, similarly, gross revenue and NPI increased by 2.8% and 2.2%, respectively.

Speaker #3: Similarly, acquisitions as well as the better performance of the Australia portfolio drove the increase, and it offset investments. Distributable income increased 3.5%, but DPU was slightly lower by 0.6%.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Similarly, acquisitions as well as the better performance of the Australia portfolio drove the increase and it offset divestments. Distributable income increased 3.5%, but DPU was slightly lower by 0.6%. It's mainly due to the larger unit base. CLAR had actually declared an advanced distribution of SGD 0.0375 on 30 April. For the period from 2 April to 30 June, we have declared a DPU of SGD 0.03732. Unitholders can expect to receive this distribution around the 18th. In addition to the properties that we have acquired in the H1 of this year, we are in the process of completing the acquisitions of 2 logistics properties in Singapore for about a total purchase consideration of SGD 600 million. This brings the total year-to-date acquisition value to about SGD 1.8 billion.

Speaker #3: It's mainly due to the larger unit base. So, CLAR had actually advanced a distribution of 3.75 Singapore cents on the 30th of April. So, for the period from the 2nd of April to the 30th of June, we have declared a DPU of 3.732 cents.

Speaker #3: Unitholders can expect to receive this distribution around $8. In addition to the properties that we have acquired in the first half of this year, we are in the process of completing the acquisitions of two logistics properties in Singapore.

Speaker #3: For a total purchase of about $600 million, this brings the total year-to-date acquisition value to about $1.8 billion. Going through the list of these properties, you will notice that 10 of the 11 acquisitions are actually logistics and data center assets.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Going through the list of these properties, you will notice that 10 of the 11 acquisitions are actually logistics and data center assets. These are asset classes that CapitaLand Ascendas REIT wants to continue to. About half of the value of the acquisition value are properties in Singapore. Singapore is a key market for CapitaLand Ascendas REIT, and even as we build a globally diversified portfolio, Singapore is a geography that we continue to invest in. Just to look back to December 2022, the Singapore portfolio value was about SGD 10.1 billion. As of today, 30 June, it has increased by about 30% to SGD 13.1 billion. We have continued to invest strategically in Singapore. 2023 is about SGD 2.7 billion of acquisitions, and just in 2026 alone, we will be completing about SGD 883 million. All right. Going into a bit of details about the asset 27 IBP.

Speaker #3: So these are asset classes that CLAR wants to continue to invest in. About half of the acquisition value is from properties in Singapore.

Speaker #3: So, Singapore is a key market for Claire, and even as we build a globally diversified portfolio, Singapore is a geography that we continue to invest in.

Speaker #3: So just to look back to December 2022, the Singapore portfolio value was about $10.1 billion. As of today, currently 30th of June, it has increased by about 30% to $13.1 billion.

Speaker #3: So we have continued to invest strategically in Singapore. In 2023, it's about $2.7 billion of acquisitions. And just in 2026 alone, we will be completing about $883 million.

Speaker #3: Right. Going into a bit of detail about the asset 27 IBP. We doubled the GFA as well as the NLA. At the same time, we have also transformed the property into a modern, business-based asset.

[Director of Investor Relations] (CapitaLand Ascendas REIT): We doubled the GFA as well as the NLA. At the same time, we have also transformed the property into a modern business space asset. It features your efficient column-free floor plates. We have also added amenities such as a sky trip facilities. The property is BCA Green Mark Platinum certified, and it is going to be directly connected to the future Jurong Town Hall MRT station. It is very close to the Jurong Lake District, which is envisioned to be the largest district outside of Singapore's Central Area. The current committed occupancy is about 19%. We are in discussions with our prospects, and viewings are ongoing. Approximately 20% of NLA is in discussions. Summerville Logistics Center is a modern logistics asset in Charleston, South Carolina. This asset widens and diversifies our US logistics portfolio, which is mainly currently in Midwest markets.

Speaker #3: So it features your efficient column-free floor plates. We have also added amenities such as sky trip facilities. The property is BCA Green Mark Platinum certified.

Speaker #3: And it's going to be directly connected to the future Jurong Town Hall MRT station, so it's very close to the Jurong Lake District, which is envisioned to be the largest.

Speaker #3: Site of Singapore's central area. The current committed occupancy is about 19%. We are in discussions with our prospects, and viewings are ongoing. So, approximately 20% of NLA is in discussions.

Speaker #3: Somerville Logistics Center is a modern logistics asset in Charleston, South Carolina. This asset widens and diversifies our U.S. logistics portfolio, which is currently mainly in Midwest markets.

Speaker #3: So marketing is ongoing. Similarly, viewings and lease discussions with prospects are ongoing. The current list of ongoing projects as at the end of June is five, with a total estimated cost of $507.2 million.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Marketing is in, and similarly, viewings and lease discussions with prospects are ongoing. The current list of ongoing projects as at the end of June is five, with a total estimated cost of SGD 507.2 million. We are working on a couple of other redevelopments in Singapore as well as overseas, and we will be sharing more details in future quarters when the details have been finalized. Okay. Just to highlight a new asset enhancement initiative that we are doing in Australia. This AEI is at 125 Thomas Holt Drive. This property has three buildings, and we are currently doing some asset enhancement works at one of the buildings. Besides refreshing the lobby, adding new amenities, we are also making the property more suited for multi-tenanted occupancy.

Speaker #3: We are working on a couple of other redevelopments in Singapore, as well as overseas. We will be sharing more details in future quarters when the details have been finalized.

Speaker #3: Okay, just to highlight a new asset enhancement initiative that we're undertaking in Australia. This AEI is at 1–5 Thomas Holt Drive.

Speaker #3: This property has three buildings, and we are currently doing some asset enhancement works at one of the buildings. Besides refreshing the lobby and adding new amenities, we're also making the property more suited for multi-tenanted occupancy.

Speaker #3: The AEI is going to cost about $10 million, and it will be completed in the first half of next year. Moving on to capital management, as shared earlier, the gearing has come down to 39.7%.

[Director of Investor Relations] (CapitaLand Ascendas REIT): The AEI is going to cost about SGD 10 million, and it will be completed in H1 of next year. Moving on to capital management. As shared earlier, the gearing has come down to 39.7%, slightly higher than six months and 12 months ago. It is mainly because of higher borrowings to fund investments, while our total assets have also increased to about SGD 20.9 billion. The adjusted NAV per unit has also increased to SGD 0.02 to 0.04 as of end of June. Our financial metrics remain strong. The ICR is 3.5 times. Our percentage of fixed rate debt is 70.1%, and our debt maturity profile is 2.5 years. On natural hedge, we maintain a high level of about 73% for overseas investments. Okay.

Speaker #3: Slightly higher than 6 months and 12 months ago, it's mainly because of higher borrowings to fund investments, while our total assets have also increased to about $20.9 billion.

Speaker #3: The adjusted NAV per unit has also increased by 2 to 4 cents as of the end of June. Our financial metrics remain strong. The ICR is 3.5 times.

Speaker #3: Our percentage of fixed-rate debt is 70.1%, and our debt maturity profile is 2.5 years. On natural hedge, we will maintain a high level of about 73% for overseas investments.

Speaker #3: Okay. With our latest investment into the Japan data center, we want to refresh everyone's memory that CLAR's portfolio is now diversified. Singapore remains the majority at 65%.

[Director of Investor Relations] (CapitaLand Ascendas REIT): With our latest investment into the Japan Data Center, we want to refresh everyone's memory that CLAR's portfolio now is diversified across. Singapore remains the majority at 65%. Australia, the US, and UK, Europe each contributes about 9% to 12%. Japan currently is at 3%. In terms of asset class, it remains well diversified across the three main sectors business space and life sciences, logistics, and industrial and data centers. I'll move into occupancy. We'll explain a bit about the individual geography's occupancy, starting with Singapore. The overall Singapore portfolio occupancy is 90.1%. This includes 27 IBP, which is in the leasing up phase. If you are to exclude 27 IBP, the overall portfolio occupancy actually remains stable quarter on quarter at 90.6%. For the US, similarly, the decline quarter on quarter was due to the addition of Summerville Logistics Center.

Speaker #3: Australia, the US, and the UK/Europe each contribute about 9 to 12%. Japan is currently at 3%. In terms of asset class, it remains well-diversified across the three main sectors.

Speaker #3: It's business space and life sciences, logistics and industrial, and data centers. But I'll move into occupancy, so we'll explain a bit about the individual geographies' occupancy, starting with Singapore.

Speaker #3: So, the overall Singapore portfolio occupancy is 90.1%. This includes 27 IBP, which is in the leasing-up phase. If you were to exclude 27 IBP, the overall portfolio occupancy actually remains stable quarter-on-quarter at 90.6%.

Speaker #3: For the US, similarly, the decline quarter-on-quarter was due to the addition of Somerville Logistics Center. If you remove this newly completed property, the portfolio occupancy actually remains stable at 85.9%, which is 20 basis points higher than the previous quarter.

[Director of Investor Relations] (CapitaLand Ascendas REIT): If you are to remove this newly completed property, the portfolio occupancy actually remains stable at 85.9%, which is 20 basis points higher than the previous quarter. This was mainly due to some new take-ups in. Okay, in Australia, the decline was due to a lease expiry at 125 Thomas Holt Drive. This is the business space property in Macquarie Park in Sydney, where we are doing the AEI. Conversion works are underway. Actually, we have already found a commitment for the 60% of the vacant space while we continue to market 40%. Otherwise, the logistics portfolio in Australia, the occupancy remains stable and healthy at about 92.9%. Lastly, for UK Europe, the occupancy remains stable at 93.1%. There is a property that we shared last quarter that we are going to be redeveloping.

Speaker #3: This was mainly due to some new take-ups. Okay. And in Australia, the decline was due to a lease expiry at 1–5 Thomas Holt Drive.

Speaker #3: So this is the business space property in Macquarie Park in Sydney where we are doing the AEI. Conversion works are underway, and actually, we have already found a commitment for 60% of the vacant space, while we continue to market the remaining 40%.

Speaker #3: Otherwise, the logistics portfolio in Australia—occupancy remains stable and healthy at about 92.9%. Lastly, for the UK and Europe, occupancy remains stable at 93.1%.

Speaker #3: There is a property that we shared last quarter that we are going to be redeveloping. So, it has been decommissioned this quarter, meaning the third quarter (Q3).

[Director of Investor Relations] (CapitaLand Ascendas REIT): It has been decommissioned this quarter, meaning Q3, I will be sharing details in the future coming quarters. Exclude this property, the occupancy actually remain at about 98% to 99%. Okay. On rental reversions, it remains positive across all asset classes and geographies. More importantly, we have revised the guidance to the single-digit range. Previously, it was mid-single-digit. I'll move on to closing. In terms of outlook for global environment, according to the IMF, growth in 2026 is expected to be slower than 2025. For us, CLAR, that's why our strategy remains relevant. Our portfolio remains diversified across five developed markets, and these markets have healthy fundamentals. More importantly, with our strong balance sheet, we have flexibility. The portfolio remains resilient. With our CLAR growth strategy, we believe that CLAR is well-positioned for stable and sustainable returns.

Speaker #3: And I will be sharing details in future coming quarters. Excluding this property, the occupancy actually remained at about 98.99%. Okay. On rental reversions, it remains positive across all asset classes and geographies.

Speaker #3: And more importantly, we have revised the guidance to a single-digit range. Previously, it was mid-single digit. I'll move on to a closing. So, in terms of outlook for the global environment, according to the IMF...

Speaker #3: Growth in 2026 is expected to be slower than in 2025. But for us, Claire, that's why our strategy remains relevant. Our portfolio remains diversified across five developed markets.

Speaker #3: And these markets have healthy fundamentals. More importantly, with our strong balance sheet, we have flexibility. The portfolio remains resilient, and with our clear growth strategy, we believe that CLAR is well-positioned for stable and sustainable returns.

Speaker #3: That brings me to the end of my presentation. Before we move to the Q&A segment, I would just like to hand over the time to William for him to share a few words.

[Director of Investor Relations] (CapitaLand Ascendas REIT): That brings me to the end of my presentation and introduction. Before we move to the Q&A segment, I would just like to pass the time over to William for him to share a few words. Thank you.

Speaker #3: Thank you.

Speaker #2: Hi. Thanks for coming. We actually introduced Serene just now, so she's taking over the portfolio management. We have also split the investment, so International will handle investment as well as portfolio management, to see end-to-end from investment to portfolio management.

William Tay: Thanks for coming. We actually introduced Serene just now. She's taking over the portfolio management. We also have split the investment. International will handle investment as well as portfolio management to see end-to-end from investment to portfolio management. Singapore investment now is with Dacon, he will take care of investment as well as business in Singapore. This is just some of the new structure that we are embarking for the rest of the year and forward. Just a few comments. You have heard Andrew mention we have done SGD 1.1 billion of acquisition in the H1. On track to do SGD 1.8 billion. If you recall, we still have SGD 600 million, two properties in Singapore to be completed. We expect them to be completed within this month.

Speaker #2: The Singapore investment is now with Deccaned, so he will take care of investment as well as business in Singapore. This is just some of the new structure that we are embarking on for the rest of the year.

Speaker #2: And forward. Just a few comments. You probably you have heard Andrew mentioned we have done 1.1 billion of acquisition the first half. Track to do 1.8 billion.

Speaker #2: If you recall, we still have $0.6 million in two properties in Singapore to be completed, which we expect to be completed within this month.

Speaker #2: So, I think in terms of growth, we are on track, and it will be income generating. So, we have actually done about half in logistics.

William Tay: I think in terms of growth, we are on track, and it will be income-generating. We have actually done about half in logistics from this, as well as half here in Singapore. It does show you that we are focused on Singapore as well as two asset classes, logistics and data center. Other than the two assets that will be completing, we also be seeing contributions from the new developments that will come on stream. Geneo will slowly give us more income over time. It should start coming in the H2. Number 2, 27 IBP. We're about 19% leased up, 20% in advanced negotiation. I think year-end, we probably can hit about 50% to 60%. Bearing in mind it does take time to fill up space in a business park space, typically two to three years to fill up space.

Speaker #2: From this, as well as half here in Singapore, it does show you that we are focused on Singapore, as well as two asset classes: logistics and data centers.

Speaker #2: And in, then the two that is completing—two assets that will be completing. We also will be seeing contributions from the newer developments that will come on stream.

Speaker #2: So, Junio will slowly begin to give us more income over time. It should start coming in during the second half. Number two, 27 IBP—we're about 19% leased up.

Speaker #2: 20% in advanced negotiation. I think year end, we probably can hit about 50, 60%. But bearing in mind, it does take time to filled up space in the business park space.

Speaker #2: Typically, it takes three years to fill up the space. But this being a new project, it does give us confidence. The leases that we have signed so far—they're all new to CLAR.

William Tay: This being a new project, it does give us confidence. The leases that we have signed so far, they're all new to CLAR. A mix of relocation as well as expansion. This is actually good. We actually introduce new specs in IBP. We can actually capture new demand. We are confident to be able to close those that's under negotiation. If I go back to Geneo, I think you have heard me mention as well that we have about 81% occupancy. The day we actually announced our TOP, about 76%, we went up to 81%. We now have another 13% of space under advanced negotiation, and we hope to be able to close them in the next six months. Again, that is actually new income to be generated. Summerville Logistics, which is in the US, we have a complete on track.

Speaker #2: A mix of relocation as well as expansion. So this is actually good. We actually introduced new specs in IBP. We can actually capture new demand.

Speaker #2: We are confident that we will be able to close those that are under negotiation. If I go back to June, I think you have heard me mention as well that we have about 81% occupancy.

Speaker #2: Today, we actually announced our TOP at about 76. We went up to 81. We now have another 13% of space under advanced negotiation, and we hope to be able to close them in the next six months.

Speaker #2: So again, that is actually new income to be generated. Summerview Logistics, which is in the US, we have on track. We hope to be able to start to sign new leases, and that will be income-generating as well.

William Tay: We hope to be able to start to sign new leases. That will be income-generating as well. The newer developments and the redevelopments, as you can see, as we talk about a cycle of decommissioning and have a cycle that comes online with new income, try to do. We continue to look at redevelopments. Andrew mentioned in UK, we do have one warehouse that was vacant since Q1. We have actually decommissioned. We will start work in the next three months. Okay, that will be that. The other point is that the H1, I think the key is actually the enlarged units, which the numbers have shown. Despite enlarged units, the DPU has been stable, which means that the contributions for those acquisitions are flowing in, and we got two more that is coming up this month.

Speaker #2: So, the newer developments and the redevelopments—you can see that as we talk about a cycle of decommissioning, and then a cycle that comes online with new income.

Speaker #2: We continue to look at redevelopments. Andrew mentioned, in the UK, we do have one warehouse that has been vacant since the first quarter.

Speaker #2: We have actually decommissioned. We will start work in the next three months. Okay, that will be—the other point is that for the first half, I think the key is actually the enlarged units, which your numbers have shown.

Speaker #2: Despite enlarged units, the DPU has been stable, which means that the contribution from those acquisitions is flowing in. And we've got two more that's coming up.

Speaker #2: This month. The other point is also the concerns over any lease non-renewal, which is Singtel in Kim Chuan. We have actually been able to divest them at a very good premium.

William Tay: The other point is also the concerns over any lease non-renewal, which is Singtel in Kim Chuan. We are actually able to divest them at a very good premium. That, again, that'll be flushed out, and we start to see that this perhaps in Q4 this year. Okay. The key looking at is the new income coming in. The other one, big one, I suppose, before you ask, some lease renewal that will be up. I think all of us expecting. As I mentioned, lease has been in negotiation. We are finalizing the lease, so you can say that it's signed. There's also one key renewal that we will do with a large rental reversion. Some of these we know we are confident of doing them, which is why we have raised our guidance for rental reversion to be high single digit.

Speaker #2: So that's, again, there'll be flush out, and we start to see that this, perhaps in Q3, Q4 this year. Okay, so the key is looking at there's new income coming in.

Speaker #2: The other one, the big one, I suppose. Before you ask, yeah, some lease renewal will be up. I think all of us are expecting it. As I mentioned, the lease has been in negotiation.

Speaker #2: We are finalizing the lease, so you could say that it's signed. That's also one key renewal that we will do, which comes with a large rental reversion.

Speaker #2: So, some of these we know we are confident of doing, which is why we have raised our guidance for rental reversion to be high single digit.

Speaker #2: So these are the few key things that I will raise. We will now take questions. Thank you.

William Tay: These are the few key things that I will raise, and we take questions.

Speaker #1: We will start with Marvin from GPM.

[Director of Investor Relations] (CapitaLand Ascendas REIT): We will start with Mervyn from JPMorgan.

Speaker #3: Hi, Marvin from JP Morgan here. Thanks for the briefing, William and team. I thought the results were quite good—very resilient, considering the headwinds from the Singtel exit.

[Analyst] (J.P. Morgan Securities): Hi, Mervyn from JPMorgan. Thanks for the briefing, William, team. I thought the results were quite good, very resilient considering the headwinds from Singtel exit, FX, and the placement units. I know you cannot talk about forward guidance till H2. Maybe you could help process for H2. I'm thinking maybe H2 will be stronger. The two acquisitions you mentioned to yet be completed, the strong reversions and the like. Obviously, some of the slippage in occupancy is due to the fact that you have new buildings coming in. How are you thinking about that year-end on a raw portfolio basis? Do you think we can get back up to the low 90s level? Maybe some guidance on that. In terms of Singtel, obviously Tampines, any updates on development there?

[Analyst] (JPMorgan): Hi, Mervyn from JPMorgan. Thanks for the briefing, William, team. I thought the results were quite good, very resilient considering the headwinds from Singtel exit, FX, and the placement units. I know you cannot talk about forward guidance till H2. Maybe you could help process for H2. I'm thinking maybe H2 will be stronger. The two acquisitions you mentioned to yet be completed, the strong reversions and the like. Obviously, some of the slippage in occupancy is due to the fact that you have new buildings coming in. How are you thinking about that year-end on a raw portfolio basis? Do you think we can get back up to the low 90s level? Maybe some guidance on that. In terms of Singtel, obviously Tampines, any updates on development there?

Speaker #3: FX. And the placement units. I know you cannot talk about for guidance in terms of second half. Maybe you can help. Process for second half.

Speaker #3: I'm thinking maybe the second half will be stronger. The two acquisitions you mentioned are yet to be completed. The strong reversions, and the light. But obviously, some of the slippage in occupancy is due to the fact that you have new buildings coming in.

Speaker #3: But, like, how are you thinking about that year-end? On an overall portfolio basis, do you think we can get back up to the low-90s level?

Speaker #3: Maybe some guidance on that. In terms of Singtel, obviously Tampines—any updates on development there? And then, obviously, next year, some of your Frisco and San Francisco buildings—any updates in terms of renewal?

[Analyst] (J.P. Morgan Securities): Obviously next year, some of your San Francisco buildings, any updates in terms of renewal and tenants? Thanks.

[Analyst] (JPMorgan): Obviously next year, some of your San Francisco buildings, any updates in terms of renewal and tenants? Thanks.

Speaker #3: Tenants. Thanks.

Speaker #2: Thanks, Marvin. Just now, those that I mentioned actually give you some of the snapshot of the drivers behind future earnings, right? Mainly, it's the two.

William Tay: Thanks, Mervyn. Just some of those I mentioned, I actually give you some of the snapshot of the drivers behind future earnings. Mainly I think that's huge given the fact that it's about SGD 600 over million. If we can close this month, we have at least four months of income. That's quite huge. Compared to the rental that we have lost in Kim Chuan. You know the numbers, it's in our annual report, than a year, the next two acquisitions that will be completed is more than enough to offset any dips in terms of rental loss. Occupancy, I think we will stay stable. Main reason is because of the new assets that recommissioned. These are big assets. As we add the GFA back into our base, take for example, 27 IBP, we have almost doubled the entire GFA.

Speaker #2: I think that's huge, given the fact that it's about $600 million. And if we can close this this month, we have at least four months of income.

Speaker #2: And that's quite huge compared to the rental that we have lost in Kim Chuan. You know the numbers; it's in our annual report. In a year, the next two acquisitions that will be completed are more than enough to offset any dips in terms of rental loss.

Speaker #2: Occupancy, I think, will stay stable. The main reason is because of the new assets—recommissioned. These are big assets. As we add the GFA back into our base...

Speaker #2: Take, for example, 27 IBP. You know, we have almost doubled the entire GFA, so a 20% occupancy is high for the older building, because it's a large building.

William Tay: A 20% occupancy is high the older building because it's a large building. Number two, maybe just a little bit more details on that. Before we tear it down, the rental was about SGD 3, SGD 2.80, SGD 3 for that area in IBP. Were you at a point low occupancy is probably about 2.5% to 3%. Now with a new completed building, we have new specs. Today, perhaps the market rental is about SGD 350 in the area. We are hitting mid-single digit. Those are there to give you a sense of why we want to do redevelopment, because it's a newer specs, newer location, it give us ability. If we don't do any redevelopment, 27 IBP it is where it is, say, three years ago and be competing with. It does give us some ability to get a better rates.

Speaker #2: Number two, maybe just a little bit more detail on that. Before we tore it down, the rental was about $3.28, $3 for that area in IBP.

Speaker #2: We were at a point where low occupancy was probably about 2.5% to 3%. But now, with a newly completed building and new specs, today perhaps the market rental is about $350 in the area.

Speaker #2: We are hitting mid-single digits. So, that's to give you a sense of why we want to do redevelopment—because it's a newer spec, in a newer location.

Speaker #2: It gives us the ability—if not, we'll be just... if we don't do any redevelopment, 27 IBP will be as it is, where it is.

Speaker #2: Say, three years ago, and be competing with. So it does give us some ability to get better rates. And we believe that, being a new building, it can attract new demand. As I mentioned, all the leases that we assigned—they're all new demand.

William Tay: We believe that being a new building, it can attract new demand. As I mentioned, all the leases, they will find their own new demand. We have companies from engineering, health, they're all new to us. Occupancy-wise, again, is because a large building, as I mentioned, even 27, we hope to be able to close up 50, 60% by the end of the year. There will still be vacancy about 50%, which will then drag down the overall portfolio occupancy. Portfolio occupancy will still be stable as we start to renew other leases. Chali Park, which is in Tampines, no news yet. We were hoping that the government can give us an indication with regards to the height limit. Because they did say it's Q3, we're hopeful that it will come within this quarter.

Speaker #2: We have companies from engineering health. They're all new to us. So, occupancy wise—because again, it's a large building, as I mentioned—even in 2027, we hope to be able to close about 50% to 60% by the end of the year.

Speaker #2: But there will still be vacancy of about 50%, which will then drag down the overall portfolio occupancy. Occupancy will still be stable as we start to renew other leases.

Speaker #2: Right. Cherry Park, which is in Tampa, needs no news yet. We were hoping that the government can give us an indication with regards to the height limit.

Speaker #2: We hope that, because they did say it's Q3, so we're hopeful that it will come within this quarter. And our plan there, as you know, is obviously to have a higher plot ratio with a higher height limit.

William Tay: Our plan there, as you know, is obviously with a higher height limit, we will ask for higher plot ratio and hopefully a redevelopment, what else can we do with the asset will be considered. SF, we have started marketing, I think your key concern is the one that is leased by the colorful company. I still can't say the name, but yes, we have started marketing, is good interest around in SF. We understand that the vacancy is still high, 40% vacancy around in that area, in the Bay Area in SF. Because it's a new building in terms of is probably vacancy of about 13% to 15%. This is a fairly good building, and our tenant or subtenant has actually invested substantial amount of fit-out.

Speaker #2: We will ask for a higher plot ratio, and hopefully a redevelopment. What else we can do with the asset will be considered. For SF, we have started marketing.

Speaker #2: So, I think your key concern is the one that is leased by the colorful company. I still can't say the name, but yes—yes, we have started marketing.

Speaker #2: There is good interest around in SF. We understand that the vacancy is still high—around 40% vacancy in that area, in the Bay Area and SF.

Speaker #2: But because it's a new building, in terms of its probably vacancy, it's about 13 to 15%. And this is a fairly good building.

Speaker #2: And our tenant or subtenant has actually invested a substantial amount of fit-out. So we've been seeing— we've been hosting site visits, these visits. So there is actually demand.

William Tay: We've been hosting site visits, there are actually demand, not just one site visit, but various site visits, including some prospects have seen the space multiple times. We believe there are some good interest for that building. Okay, excellent. Look forward to a stronger H2 of it.

Speaker #2: Not just one site visit, but various site visits, including some prospects who have seen that space multiple times. So we believe there is good interest in that building.

Speaker #3: Okay, excellent. I look forward to a stronger performance.

Speaker #1: Okay, can I have the next question? You, Kim from CLSA.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Okay. Can I have the next question? Yu Kiam from CLSA.

Speaker #2: Hi William, can you give some guidance on MPI margins by different segments? Because it's been a little bit difficult to get a sense of where you will stabilize at, between the various logistics business parks and the other segments.

Yu Kiam: Hi, William. Can you give some guidance on NPI margins by different segments? Get a sense of where you will stabilize it between the various logistics, business parks, and the other segment. On 27 International Business Park, how fast can we expect the lease up? And within your portfolio in Singapore, how many of your assets can be redeveloped with SGD 2, SGD 3 to, say, SGD 5 like you talk about? Yeah, that's it.

Speaker #2: Then, on 27 IBP, how fast can we expect the lease-up? And, within your portfolio in Singapore, how many of your assets can be redeveloped from $2, $3 to, say, $5 like you talked about?

Speaker #2: Yeah. That's it.

Speaker #3: Thank you, Kim, for coming in. Okay. Maybe I'll let the portfolio managers talk about the margin. But by and large, I think in terms of the overall portfolio, our margin is about 70%.

William Tay: Thanks, Yu Kiam, for coming in. Okay. Maybe I'll let the portfolio managers talk about the margin. By and large, I think in terms of overall portfolio, our margin is about 70%. You are right, it does go up and down depending on occupancy and as well as cost. In terms of cost, it's still going up regardless of occupancy, but it more or less stabilize. For example, electricity cost, what we have signed, I think you know that we are contracted right up to end Q2 next year. The rates that we have signed in terms of comparing to last year is really about 9% to 10% lower. Next year's rates, we expect it to be about 30%. For tenants who are with us do enjoy better rates than they were before.

Speaker #3: You are right. It does go up and down depending on occupancy, as well as cost. But in terms of cost, it's still going up regardless of occupancy.

Speaker #3: But it more or less stabilized. For example, electricity. What we have signed, I think you know that we've been contracted right up to the end of the second quarter next year.

Speaker #3: And our rates that we have signed, in terms of comparing to last year, is a rate about 9 to 10% lower. Next year, rates we expect to be about 30% lower.

Speaker #3: So for tenants, while we've asked, they do enjoy better rates. And the primary reason is because of the bulk purchases that the group embarks on together with other asset classes, and the size of us here in Singapore gives us an edge to be able to negotiate.

William Tay: Primary reason is because of the bulk purchase that the group embarked on together with other asset classes. The size of us here in Singapore did give us an edge to be able to negotiate. The contract was signed before the war, which is why the hedging formula is actually very favorable for us and be good for our tenants. Before I hand over to them, perhaps on your second question, IBP still quite challenging, to be honest. Why we proceed to redevelop 27 IBP is the primary reason is because it's going to be directly connected to the MRT station. That actually give us an edge, because where there's a good connectivity, it does attract, just like what we've done with Geneo. Even in Changi Business Park, where it's OCC, it's near MRT station, it always has a better leasing and is more attractive.

Speaker #3: The contract was signed before the war, which is why the hedging formula is actually very favorable for us and good for our tenants.

Speaker #3: Right. Perhaps on your side, before I hand over to them—perhaps on your second question—IBP is still quite challenging, to be honest. But why we proceeded to redevelop 27 IBP, the primary reason is because it's going to be directly connected to the MRT station.

Speaker #3: Right. And that actually gives us an edge, because when they're well connected, it does attract, just like what we've done with Junio. Even in Chinese business parks where its occupancy is near MRT stations, it's always had better leasing and is more attractive.

Speaker #3: So typically, FS-wise, in terms of how we foresee or predict US occupancy, it is about three years to be able to stabilize. But based on our pipeline today, we think that we could hit close to 50% towards the end of this year.

William Tay: Typically, FS-wise, in terms of how we foresee or predict our occupancy is about 3 years to be able to stabilize. Based on our pipeline today, we think that we could hit about close to 50% towards the end of this year. 50% means that we actually filled up the whole building, the size of the whole building. We will start to see as tenants start to move in. That will be helpful. On your question about any other redevelopment opportunity, I think the most likely one will be across the road. I've shared before, is the Acer building. Some of the vacancies that we see in our numbers is also because we start to move tenants out. Acer, we have brought down the tenants to about 20%. We will be embarking on the redevelopment once we start to fill up 27 IBP.

Speaker #3: Fifty percent will mean that we actually fill up the old building—the size of the old building. We will start to see this as tenants start to move in.

Speaker #3: Right, that will be helpful. On your question about any other redevelopment opportunity, I think the most likely one will be across the road. I've shared before, it's the Acer building.

Speaker #3: Some of the vacancies that we see in our numbers are also because we start to move tenants out. So, Acer—we have brought down the tenants to about 20%.

Speaker #3: So we will be embarking on the redevelopment once we, I mean, start to fill up 27 IBP. Again, that building will connect to the MRT station.

William Tay: Again, that building to the MRT station. We hope to be able to bring in, just like Geneo, bring in more retail F&B offering to give a good attractiveness to that node there, which is 27 IBP and Acer 29 IBP. That's probably the building. You can say that we have opportunities around in Science Park, but the buildings are still fairly new. I think the key is that we want to be able to get higher plot ratio. With a new infrastructure that's invested by the government in relations connectivity, then we can actually ask for higher rental. If for any building that nothing has much changes, tearing it down, giving it new specs is tough to say increase a SGD 3 to SGD 5. There must be some ingredients in there. Okay.

Speaker #3: And we hope to be able to bring in, just like Juno, more retail F&B offerings to give good attractiveness to that node there.

Speaker #3: Which is 27 IBP and Acer 29 IBP. So that is probably the building you can say that we have opportunities around in Science Park.

Speaker #3: But the buildings are still fairly new. Right. I think the key is that if we want to be able to get higher plot ratio, and with the new infrastructure that's invested by the government in relation to connectivity—

Speaker #3: Then we can actually ask for higher rent. If, for any building where nothing much has changed, tearing it down and giving it new specs, it's tough to say, increase from $3 to $5.

Speaker #3: Right. So there must be some ingredients in that. Okay.

Speaker #2: Hi, Kim. So, on your margins question, I'll answer more generically rather than specifically by geography because it really depends on the lease structure.

James Goh: Hi, Yu Kiam. On your margins question, I'll answer more generically rather than specifically by geography, because it really depends on the lease structure. If it's like a triple net lease and it's single-tenanted, those margins tend to be typically above 90%, sometimes as high as like 97% or 98%. If we talk about a multi-tenanted building, on average it's in the 70s, can be low 70s, mid-70s, thereabouts. If we talk about data centers. Data centers margins tend to be lower on the headline because of the high elec. We record both the electricity revenues as well as the OpEx. If you strip that out, again, it normalizes, again, depending on whether it's a colo or if it's a core and shell.

Speaker #2: If it's like a triple net lease and it's single tenanted, those margins tend to be typically above 90%, sometimes as high as 97 or 98%.

Speaker #2: If we talk about a multi-tenanted building, on average it is in the 70s—it can be low 70s, mid 70s, thereabouts. And if we talk about data centers, data center margins tend to be lower on the headline because of the high elect—.

Speaker #2: Right. We record both the electricity revenues as well as the OPEX. But if you strip that out again, it normalizes again depending on whether it’s a colo or if it’s a core and shell.

Speaker #2: So really, our number by country or at the group is really a blend of these three separate components. I would say, by and large, margins—particularly for multi-tenanted buildings—have more or less stabilized, because in previous years post-COVID, with that hike in electricity, I think across the industries, everyone saw their margins compressed, largely again because of that higher electricity revenues being recorded.

William Tay: By country or at the group, it's really a blend of these three separate components. I would say by and large, margins, particularly for multi-tenanted buildings, have more or less stabilized because previous years post-COVID, with that hike in electricity, I think across the industries, everyone saw their margins compress. Largely, again, because of that higher electricity revenues being recorded, and at the same time, higher electricity expenses. We are more or less past it. Hope that answers the question.

James Goh: By country or at the group, it's really a blend of these three separate components. I would say by and large, margins, particularly for multi-tenanted buildings, have more or less stabilized because previous years post-COVID, with that hike in electricity, I think across the industries, everyone saw their margins compress. Largely, again, because of that higher electricity revenues being recorded, and at the same time, higher electricity expenses. We are more or less past it. Hope that answers the question.

Speaker #2: And at the same time, higher electricity expenses. So we are more or less past that. So, yeah. Hope that answers the question.

Speaker #1: Okay, we will move on to the next question. Maybe we'll have Dale first from DBS.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Okay. We will move on to the next question. Maybe we'll have Dale first from DBS.

Speaker #3: Thank you. Yeah. Hi, William and team. Just two quick questions from me. I think firstly, like you mentioned, Junio, right? Since the very positive start, it has kind of stalled—just wondering what's happening there.

[Analyst] (DBS): Thank you. Yeah. Hi, William and team. Just two quick questions from me. I think firstly, like you mentioned Geneo, since the very positive start it has kind of stalled. Just wondering what's happening there. You're saying that you have advanced negotiations with further tenants. How are asking rents now versus what you signed at the onset? This is my first question. My second question is with regards to your portfolio reallocation. Now that you have done about SGD 1.8 billion in acquisitions, what should we be expecting for the rest of the year? Should we be looking at more selective divestments or are you still pursuing acquisitions in a big way? Yeah, that's all.

Speaker #3: And you're saying that you have advanced negotiations with further tenants. How are asking rents now versus what you signed at the onset? This is my first question.

Speaker #3: My second question is you know with regards to your portfolio you know now that you have done about 1.8 acquisite 1.8 billion dollars in acquisitions what should we be expecting for the rest of the year?

Speaker #3: Should we be looking at more selective divestments, or are you still pursuing acquisitions in a big way? Yeah, that's all.

Speaker #2: Thanks Dale.

William Tay: Thanks, Dale. Thank you for that good question on Geneo. As mentioned just now, we haven't really improved the occupancy for about six months to nine months. When we first announced the completion of project, 6% committed is very real. You probably have seen our opening and who is the tenant, our anchor tenant. They are mostly life science and pharmaceutical. Our anchor tenant is government. They have taken the most of the space. They'll start to move in next year. During this time, while we are handling all these fit-outs and handing over of the sites, we still continue marketing. I suppose your expectation is that rents should go up, which is what we have asked for because now that we are hit about 81%, typically, as you looked at the entire pricing strategy, we may give more rent-free as they first come in.

Speaker #3: Good question on that, thank you for that. Good question on Junio. As mentioned just now, we haven't really improved the occupancy. For about 6 to 9 months after we first announced the completion of the project, 6% committed is very real.

Speaker #3: You probably have seen our opening, and who is the tenant—our anchor tenant. They are mostly life sciences and pharmaceutical. And our anchor tenant is government.

Speaker #3: So they have taken most of the space. They will start to move in next year. During this time, while we are handling all these fit-outs and handovers of the sites, we still continue marketing.

Speaker #3: But I suppose your expectation is that rent should go up, which is what we have asked for. Because now that we have hit about 81%, typically, as you look at the entire pricing strategy, we may give more rent-free as they first come in. Subsequently, when it hits stabilization,

William Tay: Subsequently, when it hits stabilization, obviously we ask for what the market is asking. Honestly, Geneo and our newer buildings today market in terms of rents. We like to be able to close higher than where it is. Out of the 19% vacancy, we have 13% right now in advanced negotiation. We are hopeful that it will stabilize as in like high nineties, towards the end of the year. On your question about investment and divestment, we are still focused to close the two assets that we have announced and acquired. As you know, in Singapore, we need to go through regulatory approval. In these two cases, it's actually JTC. We are hopeful that this consent will be given to us very soon. Even for our Kim Chuan divestments because it's not JTC site, but we still need SLA to approve.

Speaker #3: Obviously, we'll ask for what the market is asking. And honestly, junior and our newer buildings to market in terms of renter. So we like to be able to close higher than where it is.

Speaker #3: And out of the 19% vacancy, we have 13% right now in the advanced negotiation. So, we are hopeful that it will stabilize, as in the high 90s, towards the end of the year.

Speaker #3: On your question about investment and divestment we are still focused to close the two assets that we have acquired and announced and acquired. As you know in Singapore we need to go through regulatory approval.

Speaker #3: In these two cases, actually, we are hopeful that this consent will be given to us very soon. Even for our Kim Chuan divestments, because it's not a JDC site, but we still need SLA to approve.

Speaker #3: So there will still be regulations that we need to go through. In terms of investments, I think we are still looking at investments. But for us, right now, it's for the second half.

William Tay: There will still be regulations that we need to go through. In terms of investments, I think we still looked at investments, but this is for us right now, for H2. What I would say that our focus is more divestment. As you have heard me mentioned, we have about SGD 300 to 500 million divestment. Kim Chuan, this asset divestment came very fast. We are still working on the SGD 500 million divestments. If there is good interest, we believe that we can push the divestment up higher. If not, at least I think we have good interest for at least about SGD 300 to 500 million right now, which we will work on.

Speaker #3: What I would say that I will focus is more divestment. As you have heard me mentioned we have about 3 to 500 million divestment.

Speaker #3: Kim Chuan, this asset divestment came very fast when we got a good look in. But we are still working on the $500 million divestments.

Speaker #3: So if there is good interest we believe that we can push the divestment up higher. If not at least I think we have good interest for at least about 3 to 500 million right now which we will work on.

Speaker #3: That will be helpful for number one, in terms of leverage, in terms of that to beta, and in terms of ratio, to be able to bring it down.

William Tay: That will be helpful for number one is to, in terms of leverage, in terms of our debt to EBITDA, and in terms of ratio, to be able to bring it down. Even with the two assets to be acquired plus the divestments, I think our leverage will stay about 40-ish. Right? Be able to bring it down, which is key for us. We still want to be able to focus. What we're going to do there is we're going to focus on reconstitutions. When there's an opportunity for development, redevelopment, we'll push ahead. If there's interest for divestment, especially in this market, and overseas. Europe and Singapore continue to see capital flow, which we hope to be able to capture some of this capital with some of these divestments.

Speaker #3: With all—even with the two assets to be acquired plus the divestments—I think our leverage will stay at about 40-ish, right? We'll be able to bring it down.

Speaker #3: Which is key for us. And we still want to be able to focus—what we want to do is focus on reconstitutions. When there's opportunity for development or redevelopment, we will push ahead.

Speaker #3: If there's interest for divestment especially in this market Singapore and overseas Europe and Singapore continue to see capital flow. Which we hope to be able to capture some of this capital with some of divestment.

Speaker #3: As we have seen with our Kim Chuan asset, we can actually divest at a very good premium, which is good for the trust. Thank you.

William Tay: As we have seen in our Kim Chuan, we can actually divest in a very good premium, which is good for the trust.

Speaker #1: We'll move on to Vijay.

[Director of Investor Relations] (CapitaLand Ascendas REIT): We'll move on to Vijay.

Speaker #2: Yeah. Hi, good evening, William and team. I have a couple of questions. Maybe I can take them one by one. Firstly, in terms of you as Summervale Logistics—I mean, this was a spec on your end.

[Analyst]: Yeah. Hi. Good evening, William and team. Couple of questions from me. Maybe I can take it one by one. Firstly, in terms of your Summerville Logistics, I mean, this was a spec on your end. How is the demand like? When can we see this building reaching full occupancy for it? My second question is in terms of your earlier fundraising, I recall you mentioned two acquisitions. I think one you have done is the logistics asset, if I remember. Is there one more acquisition pending or is it not going on at this point of time? My third question is, if I notice on your financial statements, the credit loss for this year has gone up from one million to three million. Not a big number, but are you seeing some increased tenant defaults or late payments? If so, which market and what reasons? Thank you.

Speaker #2: How is the demand? When can we expect this building to reach full occupancy? My second question is, in terms of your earlier fundraising, I recall you mentioned two acquisitions.

Speaker #2: I think one you have done is the logistics asset. If I remember, there is one more acquisition pending, or is it not pending? Is it not going on at this point of time?

Speaker #2: My third question is: I notice on your financial statements the credit loss for this year has gone up from $1 million to $3 million—not a big number, but are you seeing some increased tenant defaults or late payments? Which market, and what are the reasons?

Speaker #2: Thank you.

Speaker #1: I'll take on the Summervale Logistics question. So, essentially, I think typically when we stabilize the asset, we look at 9 to 12 months.

Koo Lee Sze: I'll take on the Summerville logistics question. Essentially, I think typically when we stabilize the asset, we look at nine to 12 months. Given that the asset has been completed in April, it's underway and market demand is still strong. Boeing has announced that they have announced a US $1 billion manufacturing plant, and then Mercedes-Benz is also setting up their van plant, which will generate additional supply demand. We are hopeful that in the coming quarters we can announce something. Yeah.

Speaker #1: So given that the asset has been completed in April so is underway and market demand is still strong. We have seen so Boeing has announced that they have done they have announced a US 1 billion manufacturing plan and then Mercedes is also setting up their van plan which will generate additional supply demand.

Speaker #1: So we are hopeful that in the coming quarters we can announce something. Yeah.

[Analyst]: Will it be fully fixed to, I mean, 100% occupied single tenant or it will be multi-tenant?

Koo Lee Sze: You'll be multi-tenanted. Yeah. The market demand currently in the market is probably in the smaller units. We probably have to the warehouse.

Speaker #2: So you'll be multi-tenanted. Yeah. Because the market demand currently is probably in the smaller units, so we probably have to the warehouse.

Koo Lee Sze: You'll be multi-tenanted. Yeah. The market demand currently in the market is probably in the smaller units. We probably have to the warehouse.

Speaker #3: So, Charleston is a—no, it's not a big market. We went in with the idea that there actually are manufacturing and industrial activities. And you have heard us mention we went in during a time when typical leasing up is very short.

William Tay: Charleston is not a big market. We went in with the idea that is actually there are manufacturing industrial activities. You've heard us mention when we went during a time, typical leasing up is very short, because very bullish logistics market. Having said that, we have actually expected that because it's a smaller market, we will need time after completion to be able to fill up the space. A million square feet, half a million in the market is not huge, but each of the tenant that comes in could be 100,000, 200,000. It's likely to be a multi-tenanted facility, not a single tenant. The key there for us is that as we look at logistics, especially US and even in Europe, you have heard me mention that we want to be able to build modern warehouses.

Speaker #3: It was a very bullish logistics market. But having said that, we have actually put in—well, we have actually expected that because it's a smaller market, we will need time after completion to be able to fill up the space.

Speaker #3: Millions of square feet—half a million in the market—it's not huge, but each of the tenants that comes in could be 100,000 to 200,000. So, it's likely to be a multi-tenanted facility.

Speaker #3: Not a single tenant. But the key for us is that, as we look at logistics, especially in the US and even in Europe, you have heard me mention that we want to be able to build modern warehouses.

Speaker #3: As we acquire new modern warehouses, we also want to be able to develop new, modern houses. For this, it's speculative, but we have picked a location, or rather a city, that is well connected, both by the shipping route as well as the road network.

William Tay: As we acquire new modern warehouses, we also want to be able to develop modern new warehouses. For this is speculative, but we have picked a location or rather a city that is well-connected both by the shipping route as well as road network. We are hopeful to be able to lease out the space. On your second question, yes, we did say that during our EFR is two new acquisitions. We have one, which is the Tuas Logistics, which is the bigger one. The other one, actually, in our use of proceeds, we have actually reallocated. We are not proceeding with that. Primary reason is because, during due diligence, we are not comfortable, we have actually decided to drop that. The two, the bigger SGD 3 million is this in Tuas, which hoping to complete this month. Okay.

Speaker #3: Right. So we are hopeful to be able to lease up the space. On your second question, yes, we did say that during our EFR, it is two new acquisitions.

Speaker #3: We have one which is the Tuas Logistics which is the bigger bigger one. The other one actually in our use of proceeds that we have we have actually reallocated.

Speaker #3: We are not proceeding with that. The primary reason is because, during due diligence, we were not comfortable. So, we have actually decided to drop that.

Speaker #3: So the two—the bigger million—is this in Tuas, which we hope to complete this month. Okay.

Speaker #2: Thanks.

Koo Lee Sze: Thanks.

Speaker #3: On the.

William Tay: On the-

Koo Lee Sze: Okay. I'll take the question on the ECL provision. Generally, for provision, we also look at our security deposits that we hold, and we only provide on a prudent basis, as in all accountant, we are very prudent, and we only provide if the arrears is more than our ways above security deposit. This number is a combination of a few countries, mainly in the UK and Europe. It's just a provision, but the team will still continuously engage the tenant, and if we need to restructure some of the payment schedules, but otherwise, it will still be in control.

Speaker #2: Okay. I'll take the question on the ECL provision. Generally, for provision, we also look at our security deposits that we hold. And we only provide on a prudence basis—I mean, as accountants, we are very prudent and we only provide if the arrears are more than, when it's above, the security deposit.

Speaker #2: So this number is a combination of a few countries, mainly in the UK and Europe. But it's just a provision, and the team will still continue to engage the tenant and, if we need to, restructure some of the payment schedules, but otherwise, it will still be under control.

Speaker #3: Can you give some color in terms of which sector and tenant?

[Analyst]: Can you give some color in terms of which sector and tenant-

Speaker #2: It's mainly in the logistic.

Koo Lee Sze: It's mainly in the logistics.

Speaker #3: Okay, thank you. But, Vijay, having said that, there is no clear indication in terms of whether it's rental default or arrears. Our cash collection is still very healthy.

[Analyst]: Okay. Thank you.

William Tay: Vijay, having said that, there is no clear indication in terms of whether renter default or arrears. Our cash collection is still very healthy. As typical big number of leases that we have, we obviously have leases that may have late payment. As a process-wise, once a late payment, letter of demand, one, two months, is quite common. Nothing that has flagged up in relations to whether, if you ask sector or which industry is facing a stress, I don't think there's clear indication for us that any of the tenants are in any way difficult in terms of their business. Maybe just to add on to that, as we hear about the new tariff being reintroduced, we did our round is anything of key concern to any industry.

Speaker #3: But as a typical, with the big number of leases that we have, we obviously have leases that may have late payments. So, process-wise, once the late payment letter of demand is sent—one to two months—that's quite common.

Speaker #3: Right. So nothing that has flagged out in relations to whether if you ask sector or which industry is facing a stress I don't think that's clear indication for us that any of the tenants are in any way difficult in terms of their business.

Speaker #3: Maybe just to add on to that, as we hear about the new tariff being reintroduced, we did our rounds. Is anything of key concern to any industry? As I mentioned previously, the majority of tenants here in Singapore — take for example our lease renewals for the rest of the second half of the year — is about less than 10% to be done.

William Tay: As we mentioned previously, majority of tenants here in Singapore, take for example, our lease renewal to the rest of H2 of the year is about less than 10% to be done. Our 10% is about 500 over leases. Main one, I think I mentioned to you, Shopee is one key one. The rest, I think we will be able to see the leases being renewed. Payment-wise, I don't think there's any key concerns. Thanks, Vijay.

Speaker #3: Out of the 10%, it's about 500-over leases. The main one, which I think I mentioned to you, is Shopee—it's a key one. For the rest, I think we will be able to see the leases being renewed.

Speaker #3: But payment-wise, I don't think there's any key concerns.

Speaker #2: Yeah. Okay.

Speaker #3: Thanks Vijay.

Speaker #2: Thank you, and we'll have the next question from Rachel.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Thank you, we'll have the next question from Rachel.

Speaker #1: Hello, thanks for the presentation. Maybe just some housekeeping questions on the remaining properties, like five to one. Could you give us some update—27 IBP, you said $5. Is it above your underwriting? When is income coming through, and all those details? And then my second question is on guidance—are you changing your interest cost guidance? And the remaining, I think you have done some refinancing, right? So, for the remaining, what currency are they in?

[Analyst]: Hello. Thanks for the presentation, William. Maybe just a housekeeping question on the remaining properties, like 5 Tuas Avenue 5, could you give us some update? 27 IBP, you said SGD 5. Is it above your underwriting? When is income coming through and all those details. My second question is on interest guidance. Are you changing your interest cost guidance? The remaining, I think you have done some refinancing, right? The remaining debt, what currency are they in? Yeah.

Speaker #3: Okay. First of all, thanks Rachel for bringing up 5 to 1. I forgot we’re going to hit full occupancy quite soon.

William Tay: Okay. Thanks, Rachel, for bringing up 5 Tuas Avenue 5. I forgot. We're going to hit full occupancy quite soon.

Speaker #1: Four.

[Analyst]: Full?

Speaker #3: Yeah. So I think it's good for us. So as you heard that it's another project that we you know we will pass the $1 renter this has gone up to above 2.

William Tay: Yeah. I think it's good for us. As you heard, that it's another project that we are past the SGD 1 renter. This has gone up to above two, we are hopeful to be able to close, I think, by end of full occupancy. Perhaps not full occupancy. I think there's still one canteen. Still trying to find a canteen operator. Okay. Yes, I think we are on track. We are happy with our investment in 5 Tuas Avenue 5. Similarly, towards LogisHub @ Clementi, that we have taken on a new construction. Interest is there, we are talking to some interested prospects. We are hopeful that if all turns out well, we may be able to get some pre-commitment. Again, if you know our commitment to any occupancy.

Speaker #3: So we are hopeful to be able to close I think by the end of the full occupancy. Perhaps not full occupancy like I think there's still one canteen.

Speaker #3: Still trying to find a canteen operator. Okay, so yes, I think we are on track. We are happy with our investment in 5-to-1.

Speaker #3: Similarly to Woods, Clementi Loop, Lodges Hub that we have on the new construction, interest is there. So we are talking to some interested prospects.

Speaker #3: We are hopeful that if all turns out well, we may be able to get some pre-commitment. But again, if you know, our commitment to any occupancy—even if you see any statistics, it will still be zero until we get DOP.

William Tay: Even if any statistics that you see, you will still be zero until you get TOP. I think for logistics, it's quite clear. While we think that it has stabilized here in Singapore, it's no longer that bullish. Good assets, I think we can command the kind of renter being in Jurong East or in Clementi. Right? 27 IBP, we believe income will start to come in perhaps towards H2. Just like Junyou, it took about a year. We believe that slowly as company starts to move in, renter, perhaps six and 12 months down the road. Underwriting, I think it's above our underwriting. Frankly speaking, even when we did our redevelopment, I don't think we would expect that we can hit SGD 5. Lead to Junyou, you all were asking me, is it SGD 5?

Speaker #3: So, I think for logistics, it's quite clear. While we think that it has stabilized here in Singapore, it's no longer that bullish. But good assets, I think, can command the kind of rent.

Speaker #3: Being in Jurong East or in Clementy. Right. 27 IBP we believe income will start to come in towards perhaps towards second half just a junior it talks about a year we believe that slowly as company starts to moved in renter perhaps three to six three six six to 12 months down the road.

Speaker #3: Underwriting, I think it's above for underwriting. Frankly speaking, even when we did our redevelopment, I don't think we would expect that we could hit $5.

Speaker #3: To junior, you were asking me, is it $5? Even junior, last time, you asked me, is it $5 or $6? Again, I mentioned that yes, it crossed beyond that $5, $6, even for junior.

William Tay: Even Junyou last time you asked me, Is it SGD 5 or SGD 6? Again, I have mentioned that yes, cross beyond that SGD 5, SGD 6 even for Junyou. It is above our underwriting. Interest cost guidance.

Speaker #3: So it's above our above our underwriting. Interest cost guidance.

Speaker #2: That cost will still be expect around the 3.5 that we have here to date. As for the refi for this year it's mainly the sing dollars.

Koo Lee Sze: That cost will still be expected around the 3.5 that we have year to date. As for the refi for this year, it is mainly the Singapore dollars.

William Tay: Refi is done. I think you saw about SGD 160 million.

Speaker #3: Refi is done. I think you saw about $160 million.

Speaker #2: Okay. Thank you. Sounds good. Five to one is going to hit 100%. Same question like close.

[Analyst]: Okay. Thank you. Sounds good. 5 Tuas Avenue 5 is going to hit 100%. Same question like

William Tay: Close.

Speaker #3: Closer. To find a canteen operator.

[Analyst]: Close.

[Analyst]: Close. Need to find a canteen operator.

William Tay: Close. Need to find a canteen operator.

Speaker #2: Okay, just the same question as before—regarding income, when is it coming through? When should we expect it?

[Analyst]: Okay. Just same question, like income, when is it coming through? When should we expect?

Speaker #3: Yeah, I think it's very in. Those are leases, because this was completed last year. Yeah, we've started to come in.

William Tay: Yeah. I think it's already in. Those that are leases, because this was completed last year, yeah, will start to come in.

Speaker #2: Okay, thank you. Thank you, Rachel. And then we'll move to Shen from Goldman. Hi, I just want to ask about the divestment that you're planning. Where are these assets, and what is the current MPI yield on the asset?

[Analyst]: Okay. Thank you.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Thank you, Rachel. We will move to Shen from Goldman.

[Analyst] (Goldman Sachs): Hi. I just want the divestment that you are planning. Where are these assets? What is the current NPI yield on the asset? I am asking because typical NPI yield of industrial, 5% to 7%, is above the cost of debt. The loss of income that we can expect from divestment, will they actually end up offsetting the additional income from the newly completed acquisitions and developments?

Speaker #2: And I'm asking because the typical MPI yield of industrial, 5 to 7%, is above the cost of debt. So, the loss of income that we can expect—

Speaker #2: Will the investment actually end up offsetting the additional income from the newly completed acquisitions and developments? Yeah.

Speaker #3: Thanks. Shen, good question. The divestments we work on are actually in all countries, but we think we are hopeful perhaps more in Singapore and Europe.

William Tay: Thanks, Shen. Good question. The divestments, we work in actually all countries. We think we are hopeful in perhaps more in Singapore and Europe. Last year we have divested in all countries, US, Australia. We do work in all countries. What we think there is some interest, as Sebastian mentioned, about capital flow. Mainly, we would think the will be the ones that we can close some. In terms of yield, good question. Yes. I think even for Kim Chuan, based on our divestment value, it is about 5%, and it has to be fully leased. Assets typically have a mix of occupancy. If we do any of these transactions like what we have done last year, you will see that there may be one or two that is with good occupancy, but the rest of the assets may be 30%, 40%, 50% occupancy.

Speaker #3: Last year, we have almost—we have divested in all countries: US, Australia. So we do work in all countries. But what we think is, there's some interest, as Sebastian mentioned, about capital flow. Mainly, we would think that will be the ones that we can close some.

Speaker #3: In terms of your good question, yes, I think even for Kim Chuan, based on our divestment value, it is about five, and it has to be fully leased.

Speaker #3: Assets typically has a mix of occupancy and we do any of this transfers are like what we have done last year you see that you know there may be one or two that is with good occupancy but the rest of the assets may be 30 40 50% occupancy so in terms of actual impact or MPI loss it will still be there but if correspond to a redevelopment that we have to ramp up right so that will probably give you a sense that for redevelopment if you ramp up even for our 27 IBP right now if for leases that even for 50% about say 3 4% but as you list up with higher renter I think you is one but in terms of MPI contribution is very different from where it is before it was redeveloped.

William Tay: In terms of actual impact for NPI loss, it will still be there, but it corresponds to a redevelopment that we have to ramp up, right? That will probably give you a sense that for redevelopment, if we ramp up even for our 27 IBP right now, for leases that even for 50% will be about, say, 3% to 4%. As you lease up with higher renter, I think yield is one, but in terms of NPI contribution, it is very different from where it is before it was redeveloped. That is actually the kicker. Also when we are able to get higher plot ratio, that is another new income that will contribute. I hope we answered that question. Even for this, it is about 5%, right? Let us assume that I can lease out 100% to a single tenant.

Speaker #3: So that's actually the kicker. And also when we are able to get a higher plot ratio, that's another nuance that will contribute. So I hope that answered that question.

Speaker #3: So even for this, it's about 5%, right? Yeah. And that's assuming that I can lease out 100% to a single tenant.

Speaker #2: Okay. When you do your budgeting for the second half, when you account for these two impacts, is the second half DPU likely to be better than the first half? I guess that's what I'm trying to understand.

[Analyst] (Goldman Sachs): I guess when you do your budgeting for H2, when you account for these two impact, is H2 DPU likely to be better than H1? I guess that's what I'm trying to understand.

Speaker #3: Okay. From divestments if you look at even we work and announce it takes times before it completed. So whatever MPI will still stay for example even Kim Chuan we're expecting to close complete in 4Q.

William Tay: Okay. From divestments, even we work and announce, it takes time before it completed. Whatever NPI will still stay. For example, even Kim Chuan we are expecting to close complete in Q4.

Speaker #3: Right. Having said that, it's vacant, right? If it's income contributing, it'll be income contributing in the second half.

William Tay: Right. Having said that it's vacant, right? If it's income contributing, it'll be income contributing in H2.

Speaker #2: Then, one last question—are there any major redevelopments or assets, other than what has already been announced?

[Analyst] (Goldman Sachs): One last question. Any major redevelopments or assets that you're looking at right now? Other than what has been announced.

Speaker #3: Holly's Lane, which is in the UK. So, that was vacated or vacant since Q1. So that's the only one, right? Yeah.

William Tay: Hollies Lane, which is in UK.

William Tay: That was vacated or vacant since Q1. That's the only one, right? Yeah.

Speaker #2: Are there any more questions from the audience online sorry audience basically had to be Joy HSVC. William just on Japan we've seen quite a bit of movement in the cost of funds right.

[Company Representative] (CapitaLand Ascendas REIT): Are there any more questions from the audience online? Oh, sorry. Audience.

[Company Representative] (CapitaLand Ascendas REIT): Hi.

[Company Representative] (CapitaLand Ascendas REIT): Basically here. Yeah.

[Analyst] (HSBC): Joy, HSBC. William, just on Japan, we've seen quite a bit of movement in the cost of funds, right? Is there any risk on valuation for CapitaLand Ascendas, and also what are your thought on the market going forward?

Speaker #2: Is there any risk on valuation and also what's your thought on the market going forward?

Speaker #3: I mean, interest does affect cap rates, so we believe that there will be some expansion in cap rate, yes, in general. But this is a new asset; it's a 15-year lease.

William Tay: I mean, interest does affect cap rates, we believe that there will be some expansion in cap rate, yes, on a general. This is a new asset. It's a 15 years lease. I think in terms of valuation, it goes back down to what is the certainty of income. I think the impact will be very immaterial. That's one. Generally, in terms of the market, as I mentioned, it's almost three, four years ago when we're looking at investments, when interest rate goes up, our price expectation is based on the expanded cap rate. If you ask us today, while we haven't seen real transactions that has shown that the cap rate Even for us, if there's any opportunities that come across our desk, we will be asking for higher cap rate. Right. Interest has gone up to about 3% compared to where it was.

Speaker #3: I think, in terms of valuation, it goes back down to what is the certainty of income. I think the impact will be very immaterial.

Speaker #3: That's one. Generally, in terms of the market, as I mentioned, it's almost three or four years ago when we were looking at investments. When the interest rate goes up, our price expectation is based on the expanded cap rate.

Speaker #3: If you ask us today, while we haven't seen real transactions that have shown that, the cap rate—even for us, if there are any opportunities that come across our desk, we will be asking for a higher cap rate.

Speaker #3: Right. Interest has gone up to about 3% compared to where it was. These acquisitions we have done earlier—we have locked in our rates, so everything has been locked in, in terms of MPI contribution and in terms of accretion.

William Tay: These acquisitions we have done earlier, we have locked in our rates, everything has been locked in terms of NPI contribution and in terms of accretion is in. Right. For next acquisitions, we did this about 4.3%, if you remember. We do expect that any buyer will take guidance from this, right? This is a huge transaction in the Japan market. Having said that, one other asset class we think that is getting more challenging is logistics. While we say that the cap rate has expanded, but because there is rental escalation, which we don't see in the last two decades, right? I think companies or investors are still prepared to buy logistics at where the kind of cap rate it was. Perhaps even below 4%, some are still prepared to do.

Speaker #3: Right. For the next acquisition, we did this at about 4.3%, if you remember. So we do expect that any buyer will take guidance from this.

Speaker #3: Right. And this is a huge transaction in the Japan market. Having said that, one other asset class we think is getting more challenging is logistics.

Speaker #3: While we say that the renter I mean while we say that the cap rate has expanded but because that is renter escalation which we don't see in the last two decades right I think companies investors are still prepared to buy logistics.

Speaker #3: At where the kind of cap rate it was. So perhaps even below 4%, some are still prepared to do. But in terms of data center, I think that's normalized to above 4%.

William Tay: In terms of data center, I think it has normalized to above four, I think that's actually where the market will be asking. Does that answer your question?

Speaker #3: So, I think that's actually where the market will be asking. To answer your question...

Speaker #2: Yeah. And would you be holding back on Japan, or will you continue to?

[Analyst] (HSBC): Yeah. Would you be holding back on Japan or you'll continue to?

Speaker #3: We're still looking at investment opportunities, but I think it's getting further away from where we can close.

William Tay: We are still looking at investments, opportunities, I think it's getting further away from where we can close.

Speaker #2: Okay. And then, do you have any update on the UK data center?

[Analyst] (HSBC): Do you have any update on the UK data center?

Speaker #3: Okay, I'll let her speak. But there's nothing to say about the UK.

William Tay: Okay. I let her say. There's nothing to say about it.

Speaker #2: Yeah, so for the UK data center, I think the challenge is still in the planning because it's taking a long time for the UK Power Network to give us confirmation.

Serene Ong: Yeah. For the UK data center, I think the challenge is still on the planning, because it's taking a long time for the UK power network to give us confirmation. That being said, I think to be made, it probably in the next quarter or next six months, we should have something to announce.

Speaker #2: But that being said, I think to be made so it probably in the next quarter or next six months we should have something to announce.

Speaker #2: But you're still confident that you're going to get some indication right or you know or rather because we already have 25 megawatt and we're asking for question is when the power will be coming in and because there's upstream implication on the on the upgrading or infrastructure which is very much dependent on the grid.

[Analyst] (HSBC): You're still confident that you're going to get some indication, right? Or rather how-

Serene Ong: We already have 25 MW and we're asking for more. Question is when the power will be coming in, and because there's upstream implication on the upgrading our infrastructure, which is very much dependent on the grid. That being said, because we already have the 25 MW, we can do something cleverly on the site so that we improve to accommodate the incoming power.

Speaker #2: So that being said, because we already have the 25 megawatt, we can do something clever on the site so that we are able to accommodate the incoming power.

Speaker #2: I see. So you're comfortable doing it even without an upgrade to the power.

Serene Ong: I see.

Serene Ong: Yeah.

Serene Ong: You're comfortable doing even without an upgrade of the power?

Speaker #3: So, I also actually mentioned this previously. Sixty megawatt is there. We are uncertain when the thirty-five will come, right? Waiting and waiting, which is a decision that we have to take at a certain point in time.

William Tay: I also actually mentioned this previously. 60 MW is there. We are uncertain when the 35 will come, right? Waiting and waiting. A decision that we have to take at a certain point in time. We have to take a decision whether we want to go ahead to redevelop whatever existings we have. 25 today is still very attractive, to be honest. Even is still very attractive. If you remember, the main thing is we have our plans all ready for a single big site. Now the change is that we are looking into 2 phase. The 2 phase will mean that first phase 25, whatever the government can give today, we will take. The other remaining, we will take some time.

Speaker #3: Right. We have to take a decision whether we want to go ahead to redevelop whatever existing assets we have. Twenty-five today is still very attractive, to be honest, even.

Speaker #3: It's still very attractive. So we have, if you remember, the main thing is we have our plans all ready for a single big site.

Speaker #3: Right. Now the change is that we are looking into two phases. Right. And the two phases will mean that, you know, in the first phase, whatever the government can give today we will take—25.

Speaker #3: The other remaining will take some time. We know that you'll take some time, but instead of waiting for that time to be able to confirm in terms of our marketing, we have actually started to look at that in two phases.

William Tay: We know that it will take some time, instead of waiting for that some time to be able to confirm in terms of our marketing, we have already started to look at the 2 phase. Yeah.

Speaker #3: Yeah.

Speaker #2: We are almost at the hour, so we just have time for one last question, from Marvin. Thank you.

[Director of Investor Relations] (CapitaLand Ascendas REIT): We are almost on the hour, we just have time for one last question from Mervin. Thank you.

Speaker #3: I'm just looking at the Five Science Drive acquisition slides. The in-place rents at that point in time were percent below market rents. On renewal, are we within that ballpark?

[Analyst] (J.P. Morgan Securities): I'm just looking at the 5 Science Park Drive acquisition slides. The in-place rents at that point in time was below market rents. On renewal, are we within that ballpark? That's question one.

[Analyst] (JPMorgan): I'm just looking at the 5 Science Park Drive acquisition slides. The in-place rents at that point in time was below market rents. On renewal, are we within that ballpark? That's question one.

Speaker #3: That's question one.

Speaker #4: Question one.

William Tay: Question one.

Speaker #3: Yes. Second question: when would these new rents kick in? Would it be the end of this year or more likely next year? Thank you. Also, why did we increase our guidance to high single digits?

[Analyst] (J.P. Morgan Securities): Yes. Second question, when would these new rents kick in? Would it be end of this year or more next year? Thanks.

[Analyst] (JPMorgan): Yes. Second question, when would these new rents kick in? Would it be end of this year or more next year? Thanks.

William Tay: Why did we increase our guidance to high single digit? We think that when it's closed, it's signed, I think we are doing better than what we have expected. That's one. Its renewal is in November. New income will start to come next year.

Speaker #3: We think that when it’s close, it’s a good sign—you’ll be pleased. I think we are doing better than what we had expected.

Speaker #3: That's one. Its renewal is in November. Right, November. So, new income will start to come next year. Okay, looks like James will give us a nice Christmas.

[Analyst] (J.P. Morgan Securities): Okay. Looks like James will give us a nice Christmas present.

[Analyst] (JPMorgan): Okay. Looks like James will give us a nice Christmas present.

Speaker #2: Okay, we're at seven. So, thank you everyone online as well as those who came down physically. Thank you everyone once again, and have a good evening.

[Director of Investor Relations] (CapitaLand Ascendas REIT): Okay. We're at 7:00PM. Thank you everyone online, as well as those who came down physically. Thank you everyone once again, and have a good evening.

Speaker #4: Thank you.

William Tay: Thank you.

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