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 in person at Capital Tower and remotely via Zoom.

[Company Representative] (CapitaLand Ascendas REIT): Good evening. Welcome to CapitaLand Ascendas REIT H1 2026 Results Briefing. I am 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 will start shortly with a presentation by Director of Investor Relations, followed by questions and answers with our management team. I am pleased to introduce the panel this evening. Mr. William Tay, our Chief Executive Officer. On his right, Ms. Koo Lee Sze. 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.

Johanna Tong: Good evening. Welcome to CapitaLand Ascendas REIT H1 2026 Results Briefing. I am 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 will start shortly with a presentation by Director of Investor Relations, followed by questions and answers with our management team. I am pleased to introduce the panel this evening. Mr. William Tay, our Chief Executive Officer. On his right, Ms. Koo Lee Sze. 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 recorded and will be made available on our website. We'll start shortly with a presentation by the Director of Investor Relations, followed by questions and answers 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. Koo Lee Su, Officer, and Mr. James Go, Head of Portfolio Management for Singapore.

Speaker #2: Finally, Ms. Serene Ong, Head of Investment and Portfolio Management International. If you have any questions, please raise your hand and a 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 will hand over the time now through the highlights of the briefing.

Johanna Tong: 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 will 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 the CLAS Mid-Year Results Briefing. So, Claire delivered a resilient set of results for the first half of 2026.

Andrew Lim: Thank you, Johanna. Thank you and welcome to everyone joining us online and physically for CLAR's mid-year 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.

Andrea NG: Thank you, Johanna. Thank you and welcome to everyone joining us online and physically for CLAR's mid-year 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 acquisitions completed in 2025 and 2026, as well as better performance from existing properties.

Speaker #3: So these two factors more than offset the impact of about $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 second quarter.

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

Andrew Lim: If we are to exclude the completed properties, the portfolio occupancy will 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 10%. 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%.

Andrea NG: If we are to exclude the completed properties, the portfolio occupancy will 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 10%. 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, so for the first half of the year, the average portfolio rental reversion is. 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, gearing declined to 39.7% from 42% the previous quarter. This followed the equity fund raising in the first half.

Speaker #3: To recap, the equity fund raising 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.

Andrew Lim: 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. The year to date, we have executed on all three. In the H1 of the year, we completed more than SGD 1.1 billion, and these are nine 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, we are divesting Kim Chuan Telecommunications Complex for about SGD 200 million, which is two times the original purchase price, as well as a 32% premium to the independent market valuation.

Andrea NG: 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. The year to date, we have executed on all three. In the H1 of the year, we completed more than SGD 1.1 billion, and these are nine 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, we are divesting Kim Chuan Telecommunications Complex for about SGD 200 million, which is two times the original purchase price, as well as a 32% premium to the independent market valuation.

Speaker #3: ...and 20 basis points lower than the first half of last year. Our portfolio rejuvenation strategy remains to grow and enhance the value of CLAR's portfolio.

Speaker #3: So, it's anchored on equity of acquisitions, selective redevelopments and developments, as well as disciplined divestments. So, year to date, we have executed on all three.

Speaker #3: In the first half of the year, we completed more than $1.1 billion. And these are nine quality properties in Singapore, the US, Europe, as well as Japan.

Speaker #3: So, as mentioned, we completed the redevelopment of 27 IBP, as well as the development of Somerville Logistics Center. And lastly, in July, we are divesting Kim Chuan Telecommunications Complex for about $200 million, which is two times the original purchase price.

Speaker #3: As well as a 32% premium to the independent market valuation. So this sale price is meaningfully above the book value, demonstrating the ability to unlock value from the portfolio.

Andrew Lim: This sale price is meaningfully above the book value. 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 Fund Raising 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.

Andrea NG: This sale price is meaningfully above the book value. 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 Fund Raising 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: In terms of 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.

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, this has offset the impact of the divestments completed in 2025.

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

Speaker #3: Comparing the first half of this year versus the second half of last year, 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 up by 0.6%.

Andrew Lim: 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 8th. 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 two 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.

Andrea NG: 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 8th. 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 two 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: Unit holders can expect to receive this distribution around the end of the period. 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.

Andrew Lim: 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 CLAR wants to continue to. About half of the value of the acquisition value are properties in Singapore. Singapore is a key market for CLAR, 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, currently 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. Going into a bit of details about the asset, 27 IBP.

Andrea NG: 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 CLAR wants to continue to. About half of the value of the acquisition value are properties in Singapore. Singapore is a key market for CLAR, 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, currently 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. Going into a bit of details about the asset, 27 IBP.

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

Speaker #3: So, because Singapore is a key market for CLAR, 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.

Andrew Lim: We doubled the GFA as well as the NLA, and 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 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.

Andrea NG: We doubled the GFA as well as the NLA, and 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 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 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: Marketing is ongoing, and similarly, viewings and lease discussions with prospects are also in progress. The current list of ongoing projects, as at the end of June, is five, with a total estimated cost of $507.2 million.

Andrew Lim: Marketing is in, and similarly, viewings and lease discussions with prospects are ongoing. Okay. 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.

Andrea NG: Marketing is in, and similarly, viewings and lease discussions with prospects are ongoing. Okay. 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, once the details have been finalized.

Speaker #3: Okay, just to highlight what we are doing in Australia: This EEI is at 1–5 Thomas Holt Drive. This property has three buildings.

Speaker #3: 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%.

Andrew Lim: 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 2.24 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. With our latest investment into the Japan data center, we want to refresh everyone's memory. The CLAR's portfolio now is diversified across markets.

Andrea NG: 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 2.24 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. With our latest investment into the Japan data center, we want to refresh everyone's memory. The CLAR's portfolio now is diversified across markets.

Speaker #3: Slightly higher than six 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 to 224 cents as of the end of June. Our financial metrics remain strong, so 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 across markets. Singapore remains the majority at 65%.

Andrew Lim: 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 will move into occupancy. We will 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. 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.

Andrea NG: 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 will move into occupancy. We will 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. 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.

Speaker #3: Australia, the US, and UK/Europe each contribute about 9% to 12%. Japan currently is 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 currently in the leasing-up phase. If you 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.

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

Andrew Lim: This was mainly due to some new take-ups in property. 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, and actually we have already found a commitment for 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. It has been decommissioned this quarter, meaning Q3, and I will be sharing details in the future coming quarters. Exclude this property, the occupancy actually remain at about 98% to 99%.

Andrea NG: This was mainly due to some new take-ups in property. 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, and actually we have already found a commitment for 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. It has been decommissioned this quarter, meaning Q3, and I will be sharing details in the future coming quarters. Exclude this property, the occupancy actually remain at about 98% to 99%.

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.

Speaker #3: While we continue to market 40%. Otherwise, the logistics portfolio in Australia remains stable and healthy at about 92.9% occupancy. Lastly, for UK/Europe, the 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 Q3.

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

Andrew Lim: 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 will 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 is 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 and with our clear growth strategy, we believe that CLAR is well-positioned for stable and sustainable returns. That brings me to the end of my presentation. 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.

Andrea NG: 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 will 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 is 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 and with our clear growth strategy, we believe that CLAR is well-positioned for stable and sustainable returns. That brings me to the end of my presentation. 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: And 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 the global environment, according to the IMF, growth in 2026 is expected to be slower than in 2025.

Speaker #3: But for us, Claire, that's why our strategy remains relevant. Our portfolio remains diversified across five developed markets, and these markets have healthy fundamentals.

Speaker #3: 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 the time over to William for him to share a few words.

Speaker #3: Thank you.

Speaker #2: All right. Thanks for coming. We actually introduced Serene just now, so she's taking over the portfolio management. We have also split the investment.

William Tay: Thanks for coming. We actually introduced Serene just now. She is 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 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 H1, on track to do SGD 1.8 billion. If you recall, we still have SGD 0.611 million, two properties in Singapore to be completed. We expect them to be completed within this month. I think in terms of growth, we are on track and it will be income-generating.

Speaker #2: So, International will handle investment as well as portfolio management to see end-to-end from investment to portfolio management. Singapore investment is now with Deccaned.

Speaker #2: So he will take care of investment as well as business in Singapore. So 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 heard Andrew mention we have completed $1.1 billion of acquisitions in the first half. We are on track to do $1.8 billion.

Speaker #2: If you recall, we still have two properties in Singapore, totaling $0.6 million, to be completed. We expect them 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: 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. J'NEO will slowly give us more income over time. It should start coming in H2. Number two, 27 IBP, we are 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. This being a new project, it does give us confidence.

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 center.

Speaker #2: And in the two that are completing—two assets that will be completing—we also will be seeing contributions from the new developments that will come on stream.

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

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

Speaker #2: Typically, two to three years to fill up 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 Claire.

William Tay: The leases that we have signed so far, they are 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 is under negotiation. If I go back to J'NEO, 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 expansions. 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 may have heard me mention as well that we have about 81% occupancy.

Speaker #2: Today 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.

Speaker #2: So again, that is actually new income to be generated. Summerview Logistics, which is in the US, we have completed 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, and that will be income generating as well. The newer developments and the redevelopments, you can see that as we talk about a cycle of decommissioning, and then you have a cycle that comes online with new income. 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 contribution 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 we have a cycle that comes online with new income.

Speaker #2: Try to do. We continue to look that redevelopments. Andrew mentioned in the UK, we do have one warehouse that was vacated, vacant since first Q.

Speaker #2: We have actually decommissioned, and we will start work in the next three months. That will be shared. 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 contributions from those acquisitions are flowing in. And we've got two more that's coming in this month.

Speaker #2: 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 will be flushed out, and we start to see that this perhaps in Q3, Q4 this year. Okay. The key looking at is the renewing 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 that. As I mentioned, lease has been in negotiation. We are finalizing the lease. You can say that it is signed. There is 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 again, that will be fleshed out, and we start to see that perhaps in Q3 or Q4 this year. So the key thing to look at is there's new income coming in.

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

Speaker #2: We are finalizing the lease, so you can 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 them—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. Thank you.

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

Andrew Lim: We will start with Mervin from JPMorgan.

Andrea NG: We will start with Mervin from JPM.

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

[Analyst] (JPM): Hi. Mervin 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 full guidance till the H2. Maybe you can 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 an overall 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 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?

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

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

Speaker #3: Thanks.

Speaker #2: Thanks, Marvin. Just now, of those I mentioned, I actually gave you some of the snapshots of the drivers behind future earnings, right? Mainly, it's the two I think that are huge, given the fact that it's about $600 million.

William Tay: Thanks, Mervyn. Just some of those I mentioned, I actually give you some of the snapshot of the drivers behind future earnings, right? Mainly it's the two ac-- 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 4 months of income, 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. 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.

Speaker #2: And if we can close this month, we have at least four months of income, and that's quite huge compared to the rental that we have lost in Kim Chuan.

Speaker #2: You know the numbers in our annual report. 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 the new assets that have been recommissioned. These are big assets, and as we add the GFA back into our base,

Speaker #2: Take, for example, 27 IBP. 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: We have almost doubled the entire GFA, 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 renter was about SGD 3, SGD 2.80, SGD 3 for that area in IBP. Were you at a point low occupancy is about probably about 2.5% to 3%. Now with a new completed building, we have new specs. Today, perhaps the market renter is about SGD 3.50 in the area. We are hitting mid-single digit. That should give you a sense of why we want to do redevelopment, because it's a newer specs, newer location. It give us the ability. If we don't do any redevelopment, 27 IBP it is where it is, say, 3 years ago and we're competing with.

Speaker #2: Number two, maybe just a little bit more detail on that. Before we tear it down, the rental was about $3.28–$3.83 for that area in IBP.

Speaker #2: We are at a point where low occupancy is probably about 2.5% to 3%. But now, with a new completed building and new specs, today perhaps the rental market rate 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, 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, 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: It does give us some ability to get a better rates. 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. We have companies from engineering, health, they're all new to us. Occupancy-wise, because again, it's because a large building, as I mentioned, even 27, we hope to be able close up 50% to 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. Right. Changi Business 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.

Speaker #2: We have companies from engineering and health; they're all new to us. So, occupancy-wise—because again, it's a large building, as I mentioned—even for 27, we hope to be able to close about 50–60% by the end of the year.

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

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

William Tay: They did say it's Q3, we're hopeful that it will come within this quarter. 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 if 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, yes. Yes, we have started marketing, is good interest around in SF. We understand that the vacancy is still high, 40% vacancy around 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: 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 a higher plot ratio with a higher height limit.

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.

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.

Speaker #2: So there is actually demand. 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 for that building.

Speaker #3: Okay, excellent. I look forward to a stronger result from it.

[Analyst] (JPM): Okay, excellent.

William Tay: Thanks, Mervin.

[Analyst] (JPM): Look forward to shrunk the size of it.

Speaker #1: Okay. Can I have the next question? Yu Kim from CLSA.

Andrew Lim: Okay. Can I have the next question? Yu Kiam from CLSA.

Andrea NG: 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 hard to get a sense of where you will stabilize at between the various logistics, business parks, and the other segments.

[Analyst] (CLSA): Hi, William. Can you give some guidance on NPI margins by different segments? Get a sense of where you will stabilize at between the various logistics, business parks, and the other segment.

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 talk about?

[Analyst] (CLSA): On 27 IBP, how fast can we expect the lease up? 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?

William Tay: Yeah.

Speaker #2: Yeah, that's it.

[Analyst] (CLSA): 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 Kian, 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 stabilized. For example, electricity. 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 more or less, stabilize. 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 the rates that we have signed, in terms of comparing to last year, are really about 9–10% lower. Next year, rates—we expect them to be about 30% lower.

Speaker #3: So for tenants, while we've asked, do enjoy better rates than they would before. The primary reason is because of the bulk purchase 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 embarks on together with other asset classes, and the size of us here in Singapore 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, 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 J'NEO. 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. It'll be 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 proceed 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 where they're well connected, it does attract—just like what we've done with Junio—even in Chinese Business Park, where its OCC is near the MRT station, it always has 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 about 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 ESA building. Some of the vacancies that we see in our numbers is also because we start to move tenants out. ESA, 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 have actually filled up the old building—the size of the old building. We will start to see, 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. The one I have shared before is the Acer building.

Speaker #3: Some of the vacancies that we see in our numbers is 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, and we hope to be able to bring in, just like J'NEO, bring in more retail F&B offering to give a good attractiveness to that node there, which is 27 IBP and ESA 29 IBP. That's probably the building. You can say that we have opportunities around in Science Park, the buildings are still fairly new. I think the key is that if we want to be able to get higher plot ratio and 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 as much changes, tearing it down, giving it new specs is tough to say increase of SGD 3 to 5. There must be some ingredients in there.

Speaker #3: And we hope to be able to bring in, just like Junio, 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, but the buildings are still fairly new.

Speaker #3: Right. I think the key is that if we want to be able to get a higher plot ratio, and with the new infrastructure that's invested by the government in relation to connectivity, then we can actually ask for a higher rent.

Speaker #3: If, for any building where not much has changed, tearing it down and giving it new specs, it's tough to say, increase by $3 to $5.

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

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

Koo Lee Sze: Hi, Yu Kian. 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 tends to be typically above 90%, sometimes as high as like 97%, 98%. If we talk about a multi-tenanted building, on average it's in the 70s, can be low 70s, mid-70s, thereabout. If we talk about data centers, data centers margins tend to be lower on the headline because of the high elect, right? 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 colo and shell. Really our number by country or at the group is really a blend of these three separate components.

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, 98%.

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

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.

[Analyst] (CLSA): 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 elect revenues being recorded and at the same time higher elect expenses. We are more or less past that.

Koo Lee Sze: 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 elect revenues being recorded and at the same time higher elect expenses. We are more or less past that.

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

William Tay: Hope that answers the question.

Koo Lee Sze: Hope that answers the question.

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

Andrew Lim: We will move on to the next question. Maybe we will have Dale first from DBS.

Andrea NG: We will move on to the next question. Maybe we will have Dale first from DBS.

Speaker #3: Thank you. Yeah. Hi. 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, and you're saying that you have advanced negotiations with further tenants.

[Analyst] (DBS): Thank you. Hi, William and team. Just two quick questions from me. I think firstly, like you mentioned, J'NEO, since the very positive start, it has kind of stalled. Just wondering what's happening there, and you are 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? That's all.

Speaker #3: How how are asking rents now versus what you signed at at the at the onset. This is my first question. My second question is you know with regards to your portfolio you know now that you have done about 1.8 acquisition 1.8 billion dollars in acquisitions what should we be expecting for the rest of the year should we be looking at more selective divestments or or are you still pursuing acquisitions in a in a in a big way.

Speaker #3: Yeah. That's all.

Speaker #2: Thanks, Dale. 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 six to nine months after we first announced the completion of the project, 6% committed is very real.

William Tay: Thanks, Dale. Thank you for that good question on J'NEO. 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, and 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 fits out and handing over of the sites, we still continue marketing. I suppose your expectation is that renters 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 #2: You probably have seen our opening and who is the tenant—our anchor tenants are mostly in life sciences and pharmaceuticals. And our anchor tenant is the government.

Speaker #2: So they have taken the most of the space. They are they will start to move in next year. During this time while we are handling all these fits out and handing over of the sites are we still continue marketing but I suppose your expectation is that renter should go up which is what we have asked for because now that we have hit about 81% typically as you looked at the entire pricing strategy we may give more rent free as the first come in subsequently when they hit stabilize obviously we ask for what the market is asking.

William Tay: Subsequently, when it hits stabilize, obviously, we ask for what the market is asking. Honestly, J'NEO and our newer buildings to market in terms of renter. 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 90s, 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 case, it's actually J 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 #2: And honestly, Junio and our newer buildings to market in terms of renter. So we like to be able to close higher than where it is, and out of the 19% vacancy, we have 13% right now in the advanced negotiation.

Speaker #2: So we are hopeful that you will stabilize as in like high 90s 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 acquired and announced and acquired.

Speaker #2: As you know, in Singapore we need to go through regulatory approval. In these two cases, we are hopeful that this consent will be given to us very soon.

Speaker #2: Even for our Kim Chuan divestments, because it's not a JDC site, we still need SLA to approve. So there will still be regulations that we need to go through.

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 mention, we have about SGD three hundred to 500 million divestment. Kim Chuan, this asset divestment came very fast. When we got a good in, but 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 three hundred to 500 million right now, which we will work on.

Speaker #2: So in terms of investments I think we still looked at investments but this is for us right now for second half. What I would say that I will focus is more divestment.

Speaker #2: As you have heard me mentioned we have about three to five hundred million divestment. Kim Chuan this asset divestment came very fast. When we got a good look in but we are still working on the five hundred million divestments.

Speaker #2: 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 three to five hundred million right now which we will work on.

Speaker #2: 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 in terms of leverage, in terms of our debt to EBITDA, and in terms of our 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. 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 opportunity for development, redevelopment, we will 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 the divestment.

Speaker #2: With all even, with the two assets to be acquired plus the divestments, I think our leverage will stay about 40-ish. Right. Able to bring it down, which is key for us.

Speaker #2: 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 #2: 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 the divestment.

Speaker #2: As you have seen in our Kim Chuan we can actually divest in a very good premium. Which is is which is good for the trust.

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.

Andrew Lim: We will move on to Vijay.

Andrea NG: We will move on to Vijay.

Speaker #2: Thank you.

Speaker #1: Okay, we'll move on to Vijay.

Speaker #4: 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] (RHB Research): Yeah. Hi. Good evening, William and team. Couple of questions from me. Maybe I can take it one by one. Firstly, in terms of US Summerville Logistics, 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 pending? 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 SGD 1 million to SGD 3 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 #4: How is the demand like when can we see this building reaching occupancy full occupancy for it. My second question is in terms of your earlier fundraising I recall you mentioned two acquisitions.

Speaker #4: 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?

[Analyst] (RHB Research): 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 SGD 1 million to SGD 3 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 #4: My third question is, I noticed on your financial statements that 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?

Speaker #4: So, which market, and for what reasons? Thank you.

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

Serene Ong: I will 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, is underway and market demand is still strong. Boeing has announced a $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 so strong we have seen so Boeing has announced that they have done they have announced a US one billion manufacturing plan and then Mercedes is also setting up their their van plan which will generate additional supply demand.

Speaker #1: So we are hopeful that in the coming coming quarters we can announce something. Yeah. So so you'll be multi-tenanted. Yeah. Because the market demand currently in the market is probably in the the smaller units.

[Analyst] (RHB Research): Will it be fully fixed fee? I mean, 100% occupancy, a single tenant or it will be multi-tenant?

Serene Ong: It will be multi-tenanted. Yeah. Because the market demand currently in the market is probably in the smaller units. We probably have to the warehouse.

Speaker #1: So, we probably have to be the warehouse.

Speaker #2: So Charleston is a—no, it's not a big market. We went in with the idea that, actually, there are manufacturing and industrial activities there. And you have heard us mention, when we went, 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 that 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. 1 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 #2: It was a very bullish logistics market. But having said that, we have actually put in—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 #2: Million square feet half a million in the market is not huge but each of the tenant that comes in could be hundred two hundred thousand.

Speaker #2: So it's a multi it's likely to be a multi-tenanted facility. Not a single tenant. But the key that for us is that as we look logistics especially US and even in Europe you have heard me mention that we want to be able to build modern warehouses.

Speaker #2: As we acquire new modern warehouses, we also want to be able to develop modern new houses. So 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 houses. 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 that we have actually reallocated, we are not proceeding with that. Primary reason is because, during due diligence, we are not comfortable, so we have actually decided to drop that. The two, the bigger million is this in Tuas, which hoping to complete this month. Okay.

Speaker #2: Right. So we are hopeful to be able to to to lease up the space. On your second questioned yes we did say that our during our EFR is two two new acquisitions.

Speaker #2: 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 #2: 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 #2: So the two, the bigger million is this in Tuas, which we're hoping to complete this month. Okay.

Speaker #4: Thanks.

[Analyst] (RHB Research): Thanks.

Speaker #2: On the.

William Tay: On

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 prudence basis, as in all accountant, we are very prudent, and we only provide if arrears is more than or when it's above security deposit. This number is a combination of a few countries, mainly in the UK and Europe. It's just a provision. The team will still continuously engage the tenant and if we need to restructure some of the payment schedules. Otherwise, it will still be in control.

Speaker #1: Okay. I'll take the question on the ECL provision. Generally for provision we look at also look at our security deposits that we hold. And we only provide on the prudence basis I mean as in all accountant we are very prudent and we only provide if the earliest is more than when it's above security deposit.

Speaker #1: So this number is a combination of a few countries, mainly in the UK and Europe. But it's just a provision—the team will still continue to engage the tenant, and if we need to, we can restructure some of the payment schedules. Otherwise, it will still be under control.

Speaker #4: Can you give some color in terms of which sector and tenant?

[Analyst] (RHB Research): Can you give some color in terms of which sector and tenant?

Speaker #1: It's mainly in the logistic.

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

Speaker #4: Okay. Thank you.

[Analyst] (RHB Research): Okay. Thank you.

Speaker #2: But Vijay, having said that, there is no clear indication in terms of either rental default or arrears. Our cash collection is still very healthy.

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, 1, 2 months, is quite common. Right. 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 #2: But as typical big number of leases that we have we obviously have leases that may have late payment. So as a process wise once the late payment letter of demand one two months it's quite common.

Speaker #2: Right. So nothing that has flagged out in relations to whether if you ask actor 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.

Speaker #2: Maybe just to add on to that, as we hear about the new tariff being reintroduced, we did our rounds. Is there anything of key concern to any industry?

Speaker #2: As I will mentioned previously majority of tenants here in Singapore take for example our lease renewal to the rest of second half of the year is about less than ten percent 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 #2: Out of ten percent is about five hundred 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.

Speaker #2: But payment-wise, I don't think there are any key concerns. Thanks, Vijay.

Speaker #1: Thank you and we'll have the next question from Rachel.

Andrew Lim: Thank you, we'll have the next question from Rachel.

Andrea NG: Thank you, we'll have the next question from Rachel.

Speaker #5: Hello, thanks for the presentation. Maybe just a housekeeping question on the remaining properties—like five to Guan—could you give us some update? Twenty-seven IBP, you said five dollars.

[Analyst] (Macquarie): Hello. Thanks for the presentation, Vivian. Maybe just a housekeeping questions on the remaining properties, like 5 Toh Guan, 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?

[Analyst] (Macquarie): Hello. Thanks for the presentation. Maybe just a housekeeping questions on the remaining properties, like 5 Toh Guan, 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?

Speaker #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?

Speaker #5: And for the remaining, I think you have done some refinancing, right? So, the remaining debt you currently have—are they in...?

Speaker #2: Okay, first of all, thanks, Rachel, for bringing up 5 Toa Payoh. I forgot—we're going to hit full occupancy quite soon. Yeah, so I think it's good for us.

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

James Goh: Full?

James Goh: 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 the 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 Toh Guan. 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.

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 the 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 Toh Guan. 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 #2: So as you heard, this is another project where we are past the one dollar renter. This has gone up to above two, so we are hopeful to be able to close, I think, by the end of the full occupancy.

Speaker #2: Perhaps not full occupancy. I think there's still one canteen; we're still trying to find a canteen operator. Okay, so yes, I think we are on track.

Speaker #2: We are happy with our investment in Five To Go On, similarly to what's at Clementine Loop Logis Hub that we have on the new construction.

Speaker #2: Interest is there, so 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.

Speaker #2: But again, if you know, our commit to any occupancy—so even if any statistics that you see, it will still be zero until we get DOP.

William Tay: Even if any statistics that you see, it will still be zero until we 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 rental being in Jurong East or in Clementi. 27 IBP, we believe income will start to come in perhaps towards H2. Just like J'NEO, it takes about a year. We believe that slowly as companies start to move in, rental, perhaps six to 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 J'NEO, you know, were asking me, is it SGD 5?

Speaker #2: 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 we can command the kind of renter.

Speaker #2: Being in Jurong East or in Clementi. Right. Twenty-seven IBP—we believe income will start to come in perhaps towards the second half. Just to be clear, we talked about a year.

Speaker #2: We believe that, slowly, as the company starts to move in renters—perhaps three to six, six to twelve months down the road—the underwriting, I think, is above our underwriting.

Speaker #2: Frankly speaking even when we did our redevelopment I don't think we were expect that we can hit five dollars. To junior we were asking me is it five dollars even junior last time we asked me is it five dollars or six dollars.

William Tay: Even junior last time, you asked me, "Is it SGD 5 or SGD 6?" I've mentioned that yes, cross beyond that SGD 5, SGD 6, even for junior. It's above our underwriting. Interest cost guidance.

Speaker #2: Again I have mentioned that yes cross beyond that five six dollars even for junior. So it's above our above our underwriting. Interest cost guidance.

Speaker #1: Debt cost will still be expect around the three point five that we have year 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's merely the SGD.

Speaker #2: Refi is done. I think you saw about one hundred sixty million.

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

Speaker #1: Okay. Thank you. Well sounds good. Five to go is going to hit a hundred percent. Same question like close.

[Analyst] (Macquarie): Okay, thank you. Sounds good. Five Toh Guan is going to hit 100%.

William Tay: Close.

[Analyst] (Macquarie): Close

Speaker #2: Closer. Need to find a canteen operator.

William Tay: Need to find a canteen operator.

Speaker #1: Okay, okay. Just same question—like income—when is it coming through? You know, when should we expect?

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

Speaker #2: Yeah. I think it's a very in. Those that are leases because this was completed last year. Yeah. We start to come in.

William Tay: Yeah. I think it is already in, those that are leased. This was completed last year, will start to come in.

Speaker #1: Okay, thank you. Thank you, Rachel. And then we'll move to Shen from Goldman. Hi, I just wanted to ask about the divestment that you're planning. Where are these assets?

Andrew Lim: Okay. Thank you. Thank you, Rachel. Then we will move to Shen from Government. 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? Yeah.

Andrea NG: Okay. Thank you. Thank you, Rachel. Then we will move to Shen from Government.

[Analyst] (Government): 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? Yeah.

Speaker #1: And what is the current NPI yield on the asset? And I'm asking because typical NPI yield of industrial five to seven percent is above the cost of debt.

Speaker #1: So the loss of income that we can expect investment will they actually end up offsetting the additional income from the newly completed acquisitions and divestments.

Speaker #1: Sorry developments. Yeah.

Speaker #2: Thanks. Shen good question. The divestments we work actually in all countries. But we think we are hopeful in perhaps more in Singapore and Europe.

William Tay: Thanks, Shen. Good question. The divestments, we work actually in all countries. We think we are hopeful in perhaps more in Singapore than Europe. Last year, we have divested in all countries, US, Australia. We do work in all countries. What we think there's some interest, as Sebastian mentioned, about capital flow. Mainly, we would think that Singapore will be the ones that we can close some. In terms of you, good question. Yes, I think even for Kim Chuan, based on our divestment value, it's about SGD 5, and it has to be fully leased. Assets typically have a mix of occupancy, and if we do any of these transactions, like what we had done last year, you'll 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 #2: 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 those will be the ones that we can close some.

Speaker #2: In response to your good question, yes, I think even for Kim Chuan, based on our divestment value, it's about five, and it has to be fully leased.

Speaker #2: Assets typically have a mix of occupancy, and if we do any of these transfers like what we have done last year, you will see that there may be one or two assets with good occupancy, but the rest of the assets may be at 30, 40, or 50 percent occupancy. So, in terms of actual impact or NPI loss, it will still be there, but it corresponds to a redevelopment that we have to ramp up, right?

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

Speaker #2: So that will probably give you a sense that for redevelopment, if you ramp up, even for our 27 IBP right now, if a lease is at even, for 50 percent, about say, three to four percent.

Speaker #2: But as you leased up with higher renter I think you is one. But in terms of NPI contribution it's very different from where it is before it was redeveloped.

Speaker #2: So that's actually the kicker. And also, when we are able to get a higher plot ratio, that's another new factor that will contribute. So, I hope that answers that question.

Speaker #2: So even for this, it's about five percent, right? Yeah. And that's assuming that I can lease out one hundred percent to a single tenant.

Speaker #1: Okay. When you do your budgeting for second half when you account for this two impact is second half DPU likely to be better than first half.

[Analyst] (Government): 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 #1: I guess that's that's what I'm trying to understand.

Speaker #2: Okay. From divestments if you look at even we work and announce it takes times before it completed. So whatever NPI will still stay for example even Kim Chuan we're expecting to close complete in four Q.

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 #2: Right. Having said that, it's vacant. Right. If it's income-contributing, it will be income-contributing in the second half.

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

Speaker #1: Then one last question. Any major redevelopments or assets that you try? Other than what has been announced.

[Analyst] (Government): One last question. Any major redevelopments or assets other than what has been announced?

Speaker #2: Whole lease Lain, which is in the UK. So that was vacated or vacant since one quarter. So that's the only one, right? Yeah.

William Tay: Hollis Lane, which is in UK.

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

Speaker #1: Are there any more questions from the audience online? Sorry, audience in—basically, you had to be here.

Andrew Lim: Are there any more questions from the audience online? Oh, sorry. Audience basically here.

Andrea NG: Are there any more questions from the audience online? Oh, sorry. Audience basically here.

Speaker #3: 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?

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

Speaker #3: And also, what's your thought on the market going forward?

Speaker #2: I mean, interest does affect cap rates. So, we believe that there will be some expansion in cap rates, yes, in general. But this is a new asset.

William Tay: 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-year 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 3, 4 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. Interest has gone up to about 3% compared to where it was.

Speaker #2: It's a fifteen-year 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.

Speaker #2: That's one. Generally, in terms of the market, as I mentioned, it's almost three to four years ago when we were looking at investments; when interest rates go up, our price expectation is based on the expanded cap rate.

Speaker #2: If you ask us today, while we haven't seen real transactions that have shown 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 #2: Right. Interest has gone up to about three percent compared to where it was. These acquisitions we have done earlier—we have locked in our rates.

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, it right. For next acquisitions, we did this about 4.3%, if you remember. We do expect that any buyer will take guidance from this. 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, because there is rental escalation, which we don't see in the last 2 decades. I think companies 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. In terms of data center, I think it has normalized to above four.

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, it right. For next acquisitions, we did this about 4.3%, if you remember. We do expect that any buyer will take guidance from this. 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, because there is rental escalation, which we don't see in the last two decades. I think companies 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. In terms of data center, I think it has normalized to above four.

Speaker #2: So everything has been locked in. In terms of NPI contribution and in terms of accretion, it's in. Right. For the next acquisition, we did this at about 4.3% if you remember.

Speaker #2: So we do expect that you know any buyer will will will take guidance from this. Right. And this is a huge transaction in the mar in the Japan market.

Speaker #2: Having said that one other asset class we think that is getting more challenging is logistics. While we say that the rental I mean 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.

Speaker #2: Right. I think companies and investors are still prepared to buy logistics at the kind of cap rate it was, so perhaps even below 4%, some are still prepared to do.

Speaker #2: But in terms of data center, I think that's normalized to about four. So I think that's actually where the market will be asking. Answer your question.

William Tay: I think that's actually where the market will be asking. Does that answer your question?

Speaker #3: Yeah. And would you be holding back on Japan, or will you continue to...?

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

Speaker #2: 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, but I think it's getting further away from where we can close.

Speaker #3: Okay. And then, do you have any update on the UK data center?

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

Speaker #2: Okay, I'll let her speak, but there's nothing to say. Okay.

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

Speaker #3: 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, probably in the next quarter or next 6 months, we should have something to announce.

Speaker #3: 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 #1: But you're still confident that you're going to get some indication, right? Or, you know, or rather—

[Company Representative] (HSBC): You're still confident that you're going to get some indication? Or rather how much.

Speaker #3: Because we already have 25 megawatts, and we're asking—the question is when the power will be coming in. And because there's an upstream implication on upgrading our infrastructure, which is very much dependent on the grid.

Serene Ong: We already have 25 MW. 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 side so that we to accommodate the incoming power.

Speaker #3: So that being said, because we already have the 25 megawatt, we can do something cleverly on the site so that we prepare to accommodate the incoming power.

Speaker #1: I see. So you're comfortable doing that even without an upgrade of the power.

[Company Representative] (HSBC): I see. You're comfortable doing even without an upgrade of the power?

Speaker #2: So, I also actually mentioned this previously. Sixty megawatts 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. Waiting and waiting, which is a decision that we have to take at 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 already for a single big site. Now the change is that we are looking into 2 phase. The 2 phase means that 1st phase, 25 Whatever the Government can give today, we will take.

Speaker #2: Right. We have to make a decision whether we want to go ahead and redevelop whatever existing assets we have. Twenty-five today is still very attractive, to be honest.

Speaker #2: Even so, 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 #2: Right. Now the change is that we are looking into two phases. Right. And the two phases mean that, you know, first phase—twenty-five, whatever the government can give today, we will take.

Speaker #2: The other remaining will take some time. We know that it will take some time. But instead of waiting for that time to confirm, in terms of our marketing, we have actually started to look at that in two phases.

William Tay: The other remaining, 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 #2: Yeah.

Speaker #1: We are almost at the hour, so we just have time for one last question from Melvin. Thank you.

Andrew Lim: We are almost on the hour, we just have time for one last question from Mervin. Thank you.

Andrea NG: We are almost on the hour, we just have time for one last question from Mervin. Thank you.

[Analyst] (JPM): I'm just looking at the 1 Science Park Drive acquisition slides. The in-place rents at that point in time was percent below market rents. On renewal, are we within that ballpark? That's question one.

Speaker #4: I'm just looking at the Five Science Drive acquisition slides. The in-place rents at a point in time were percent below market rents. On renewal, are we within that ballpark?

Speaker #4: Last question one.

Speaker #5: Question one.

William Tay: Question one.

Speaker #4: Yes. Second question, when would these new rents kick in? Would it be end of this year or more next year? Thank you.

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

Speaker #2: Why did we increase our guidance to high single digit? We think that when it's close, it's a good sign. Yeah. You'll be pleased. I think we are doing better than what we had expected.

William Tay: Why did we increase our guidance to high single digit? We think that when it's closed, it's signed, you'll be pleasantly surprised. 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 #2: That's one. Its renewal is in November. Right, November. So new income will start to come next year.

Speaker #4: Okay, looks like James will give us a nice Christmas present.

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

Speaker #1: 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.

Andrew Lim: Okay, we're at 7:00PM. Thank you everyone online, as well as those who came down physically. Thank you everyone once again. Have a good evening.

Andrea NG: Okay, we're at 7:00PM. Thank you everyone online, as well as those who came down physically. Thank you everyone once again. Have a good evening.

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