Full Year 2026 Region RE Ltd Earnings Call

August 18, 2026

Speaker #3: Thank you for standing by, and welcome to the Region Group FY26 results call. All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator 2: Thank you for standing by, and welcome to the Region Group FY26 results call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Greg Chubb, Chief Executive Officer. Please go ahead.

Operator: Thank you for standing by, and welcome to the Region Group FY 2026 results call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Greg Chubb, Chief Executive Officer. Please go ahead.

Speaker #3: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Greg Chubb, Chief Executive Officer.

Speaker #3: Please go ahead.

Speaker #4: Thank you, and good morning. Thanks for joining us for the Region Group FY26 full-year results. My name is Greg Chubb, and it's a privilege to welcome you to my first results presentation as Chief Executive Officer.

Greg Chubb: Thank you, and good morning, and thanks for joining us for the Region Group FY26 full-year results. My name is Greg Chubb, and it's a privilege to welcome you to my first results presentation as Chief Executive Officer. David Salmon, our Chief Financial Officer, is presenting these results with me today. Erica Rees, our Chief Operating Officer, is also in the room with us. This morning, I'll start with an overview of our strategy before looking at the operating performance of the portfolio and the opportunities we see to drive both organic and inorganic growth. David will then take you through the financial results before I return to discuss the guidance and outlook for FY27. We'll start with our strategy on slide 4.

Greg Chubb: Thank you, and good morning, and thanks for joining us for the Region Group FY 2026 full-year results. My name is Greg Chubb, and it's a privilege to welcome you to my first results presentation as Chief Executive Officer. David Salmon, our Chief Financial Officer, is presenting these results with me today. Erica Rees, our Chief Operating Officer, is also in the room with us. This morning, I'll start with an overview of our strategy before looking at the operating performance of the portfolio and the opportunities we see to drive both organic and inorganic growth. David will then take you through the financial results before I return to discuss the guidance and outlook for FY 2027. We'll start with our strategy on slide four.

Speaker #4: David Salmon, our Chief Financial Officer, is presenting these results with me today. Erica Rees, our Chief Operating Officer, is also in the room with us.

Speaker #4: This morning, I'll start with an overview of our strategy before looking at the operating performance of the portfolio and the opportunities we see to drive both organic and inorganic growth.

Speaker #4: David will then take you through the financial results before I return to discuss the guidance and outlook for FY27. We'll start with our strategy on slide 4.

Speaker #4: And since joining Region earlier this year, I've met with our major retail tenant partners, a number of our investors, and visited many of our centres around Australia, where I've spent time reviewing priorities with our people.

Greg Chubb: Since joining Region early this year, I've met with our major retail tenant partners, a number of our investors, and visited many of our centers around Australia, where I've spent time reviewing priorities with our people. This has reinforced two things for me. Firstly, we have a resilient scale supermarket-led portfolio of essential retail centers, strong tenant partnerships, talented people, and an internally managed operating model that provides a solid foundation for growth. Secondly, we have a significant opportunity to unlock more growth and value from the portfolio we already own. The results we're announcing today demonstrate the strength and resilience of our portfolio. The opportunity now is to build on that performance by accelerating the next phase of growth. Our fundamental strategy is to maximize the performance from Australia's leading internally managed essential retail portfolio. A key enabler is our integrated operating platform.

Speaker #4: This has reinforced two things for me. Firstly, we have a resilient, scale-supermarket-led portfolio of essential retail centers; strong tenant partnerships; talented people; and an internally managed operating model that provides a solid foundation for growth.

Speaker #4: Secondly, we have a significant opportunity to unlock more growth and value from the portfolio we already own. The results we're announcing today demonstrate the strength and resilience of our portfolio.

Speaker #4: The opportunity now is to build on that performance by accelerating the next phase of growth. Our fundamental strategy is to maximize the performance from Australia’s leading, internally managed essential retail portfolio.

Speaker #4: A key enabler is our integrated operating platform. By bringing our people, capabilities, and decision-making together around each asset, we can execute consistently across the portfolio.

Greg Chubb: By bringing our people, capabilities, and decision-making together around each asset, we can execute consistently across the portfolio. Better execution improves the experience for our retail tenant partners and shoppers. It helps facilitate growth in retailer sales and ultimately supports stronger rental growth and improved operating margins. What has and will evolve is how we unlock that growth. We're accelerating our focus on proactive organic growth through active asset management, including majors and specialty leasing optimization, operating consistency, and targeted investment that improves the productivity of our centers. While unlocking organic growth is our primary focus, we will continue to pursue selective inorganic growth opportunities through portfolio optimization and growing the existing Metro Fund partnership with a global institutional investor, which strengthens our portfolio and creates value for security holders. Across both growth pathways, our approach to capital management and allocation remains disciplined and enables maximizing long-term returns.

Speaker #4: Better execution improves the experience for our retail tenant partners and shoppers. It helps facilitate growth in retailer sales and ultimately supports stronger rental growth and improved operating margins.

Speaker #4: What has—and will—evolve is how we unlock that growth. We're accelerating our focus on proactive organic growth through active asset management, including majors and specialty leasing optimization, operating consistency, and targeted investment that improves the productivity of our centers.

Speaker #4: While unlocking organic growth is our primary focus, we will continue to pursue selective inorganic growth opportunities through portfolio optimization and growing the existing Metro Fund partnership with a global institutional investor, where it strengthens our portfolio and creates value for security holders.

Speaker #4: Across both growth pathways, our approach to capital management and allocation remains disciplined and enables maximizing long-term returns. Now, I'll move to slide 5. The quality and purpose of our essential retail portfolio remains the foundation of everything we do.

Greg Chubb: Now I'll move to slide 5. The quality and purpose of our essential retail portfolio remains the foundation of everything we do. We're strongly positioned as Australia's leading internally managed essential retail REIT, with a high-quality, scaled portfolio underpinned by supermarkets and a non-discretionary specialty retail and services. Across the portfolio, our supermarket operators generate over AUD 5 billion in annual sales, and we have relationships with more than 2,200 specialty tenant partners. Our scale gives us broad and defensive income base, while our exposure to essential retail supports resilience through economic cycles. Importantly, our portfolio comprises local centers that sit at the heart of more than 100 communities, providing convenient access to groceries, services, and other essential retail categories. Let's move to Slide 6 and FY26 highlights. FY26 was a strong year for Region with continued momentum across the portfolio.

Greg Chubb: Now I'll move to slide five. The quality and purpose of our essential retail portfolio remains the foundation of everything we do. We're strongly positioned as Australia's leading internally managed essential retail REIT, with a high-quality, scaled portfolio underpinned by supermarkets and a non-discretionary specialty retail and services. Across the portfolio, our supermarket operators generate over AUD 5 billion in annual sales, and we have relationships with more than 2,200 specialty tenant partners. Our scale gives us broad and defensive income base, while our exposure to essential retail supports resilience through economic cycles. Importantly, our portfolio comprises local centers that sit at the heart of more than 100 communities, providing convenient access to groceries, services, and other essential retail categories. Let's move to slide six and FY 2026 highlights. FY 2026 was a strong year for Region with continued momentum across the portfolio.

Speaker #4: We're strongly positioned as Australia's leading internally managed essential retail REIT, with a high-quality, scaled portfolio underpinned by supermarkets and non-discretionary specialty retail and services.

Speaker #4: Across the portfolio, our supermarket operators generate over $5 billion in annual sales. And we have relationships with more than 2,200 specialty tenant partners. Our scale gives us a broad and defensive income base, while our exposure to essential retail supports resilience through economic cycles.

Speaker #4: Importantly, our portfolio comprises local centers that sit at the heart of more than 100 communities, providing convenient access to groceries, services, and other essential retail categories.

Speaker #4: Let's move to slide 6, and FY26 highlights. FY26 was a strong year for Region, with continued momentum across the portfolio. Comparable supermarket MAT growth of 4.1%, increased portfolio occupancy to 98.1%, and positive average specialty leasing spreads of 4% together contributed to comparable NOI growth of 3.3%.

Greg Chubb: Comparable supermarket MAT growth of 4.1%, increased portfolio occupancy to 98.1%, and positive average specialty leasing spreads of 4% together contributed to comparable NOI growth of 3.3%. We recorded statutory net profit of AUD 268.8 million, and NTA increased by 4% to AUD 2.57 per security. We also delivered growth in FFO and AFFO to AUD 0.16 per security and AUD 0.141 per security, respectively. Our approach to capital management remained disciplined, with 100% of debt hedged at below-market rates. We have refinanced more than AUD 1 billion of debt at improved margins, which has helped maintain our 4.5% weighted average cost of debt. We also continued our on-market security buyback, purchasing 12.7 million securities for AUD 29.2 million at a discount to NTA at an average price of AUD 2.29 per security.

Speaker #4: We recorded statutory net profit of $268.8 million, and NTA increased by 4% to $2.57 per security. We also delivered growth in FFO and AFFO to 16.0 cents per security and 14.1 cents per security, respectively.

Speaker #4: Our approach to capital management remained disciplined, with 100% of debt hedged at below-market rates. We have refinanced more than $1 billion of debt at improved margins, which has helped maintain our 4.5% weighted average cost of debt.

Speaker #4: We also continued our on-market security buyback, purchasing 12.7 million securities for $29.2 million at a discount to NTA, at an average price of $2.29 per security.

Speaker #4: Overall, this positive momentum translated to a 9.8% total security holder return over the period, which outperformed both the ASX 200 and the ASX 200 A-REIT indexes.

Greg Chubb: Overall, this positive momentum translated to a 9.8% total security holder return over the period, which outperformed both the ASX 200 and S&P/ASX 200 A-REIT Index. Now let's look at retail sales on Slide 8. With an ever-changing consumer environment, spending on everyday essentials has remained resilient over the past year. Total comparable portfolio MAT growth was 3.3% for the year. Supermarkets that generate 70% of our total portfolio sales have delivered 4.1% growth, and that's up from 3.3% last year. We saw sales growth across each of our essential retail categories, and specialty sales productivity has increased by more than 3% over the period to now being AUD 10,345 per square meter. Specialty comparable sales growth was 2.5%, and that's largely driven by our key non-discretionary categories such as food retail, services, medical, and other retail.

Speaker #4: Now let's look at retail sales on slide 8. And with an ever-changing consumer environment, spending on everyday essentials has remained resilient. Over the past year, total comparable portfolio MAT growth was 3.3% for the year.

Speaker #4: Supermarkets that generate 70% of our total portfolio sales have delivered 4.1% growth, and that's up from 3.3% last year. We saw sales growth across each of our essential retail categories, and specialty sales productivity has increased by more than 3% over the period to now being $10,345 per square meter.

Speaker #4: Specialty comparable sales growth was 2.5%, largely driven by our key non-discretionary categories, such as food retail, services, medical, and other retail. These results reflect the strength of trading across our centers and provide a strong foundation for sustainable rental growth over time.

Greg Chubb: These results reflect the strength of trading across our centers and provide a strong foundation for sustainable rental growth over time. Slide 9. Our major retailers include Woolworths, Coles, Aldi, and Wesfarmers-related businesses. They're fundamental to the portfolio and generate 45% of total gross rent. We continue to strengthen our partnership with our major retailers, including the prioritization of center enhancement projects, alongside their investment in store refurbishments, expansions, and the rollout of e-commerce facilities. We completed a further 6 e-commerce facilities, and we now have 77 of these increasingly important facilities in total, with an additional 2 currently underway. This represents over 90% coverage across the portfolio of supermarkets. Aligning our capital programs alongside Coles, Woolworths, and Aldi facilitates both retailer sales growth and rental growth. Online sales are included in turnover rent for over 97% of our supermarkets.

Greg Chubb: These results reflect the strength of trading across our centers and provide a strong foundation for sustainable rental growth over time. Slide nine. Our major retailers include Woolworths, Coles, Aldi, and Wesfarmers-related businesses. They're fundamental to the portfolio and generate 45% of total gross rent. We continue to strengthen our partnership with our major retailers, including the prioritization of center enhancement projects, alongside their investment in store refurbishments, expansions, and the rollout of e-commerce facilities. We completed a further six e-commerce facilities, and we now have 77 of these increasingly important facilities in total, with an additional two currently underway. This represents over 90% coverage across the portfolio of supermarkets. Aligning our capital programs alongside Coles, Woolworths, and Aldi facilitates both retailer sales growth and rental growth. Online sales are included in turnover rent for over 97% of our supermarkets.

Speaker #4: Slide 9. Our major retailers include Woolworths, Coles, Aldi, and Wesfarmers' related businesses. They're fundamental to the portfolio and generate 45% of total gross rent.

Speaker #4: We continue to strengthen our partnership with our major retailers, including the prioritization of center enhancement projects. Alongside their investment in store refurbishments, expansions, and the rollout of e-commerce facilities, we completed a further six e-commerce facilities.

Speaker #4: And we now have 77 of these increasingly important facilities in total, with an additional two currently underway. This represents over 90% coverage across the portfolio of supermarkets.

Speaker #4: Aligning our capital programs alongside Coles, Woolworths, and ALDI facilitates both retailer sales growth and rental growth. Online sales are included in turnover rent for over 97% of our supermarkets.

Speaker #4: In FY26, 58% of our supermarkets were generating turnover rent, and a further 15% are within 10% of their respective turnover rent thresholds. Moving to slide 10.

Greg Chubb: In FY26, 58% of our supermarkets were generating turnover rent, and a further 15% are within 10% of their respective turnover rent thresholds. Moving to Slide 10. We remain committed to refining the retail mix in our centers. We do this by favoring essential retail and service categories, including food and allied health, which were both particularly active trade categories for us over the year. We achieved 4% average specialty leasing spreads and average annual rent increases of 4.4% across the 380 leasing deals transacted. Average specialty rent per square meter has increased to AUD 940 per meter, which represents compound annualized growth of 4.3% since FY22. A deliberate focus has been on the introduction of new tenants with a record number of 172 new deals over the period. Demand for our essential retail space is evident through increased occupancy and strong leasing spreads of 5.2% on these new deals.

Greg Chubb: In FY 2026, 58% of our supermarkets were generating turnover rent, and a further 15% are within 10% of their respective turnover rent thresholds. Moving to Slide 10. We remain committed to refining the retail mix in our centers. We do this by favoring essential retail and service categories, including food and allied health, which were both particularly active trade categories for us over the year. We achieved 4% average specialty leasing spreads and average annual rent increases of 4.4% across the 380 leasing deals transacted. Average specialty rent per square meter has increased to AUD 940 per meter, which represents compound annualized growth of 4.3% since FY 2022. A deliberate focus has been on the introduction of new tenants with a record number of 172 new deals over the period. Demand for our essential retail space is evident through increased occupancy and strong leasing spreads of 5.2% on these new deals.

Speaker #4: We remain committed to refining the retail mix in our centers. We do this by favoring essential retail and service categories, including food and allied health, which were both particularly active trade categories for us over the year.

Speaker #4: We achieved 4% average specialty leasing spreads and average annual rent increases of 4.4% across the 380 leasing deals transacted. Average specialty rent per square meter has increased to $940 per meter, which represents compound annualized growth of 4.3% since FY22.

Speaker #4: A deliberate focus has been on the introduction of new tenants, with a record number of 172 new deals over the period. Demand for our essential retail space is evident through increased occupancy and strong leasing spreads of 5.2% on these new deals.

Speaker #4: Average tenure on these new deals is extended to 6.3 years, while incentives have decreased to 10.5 months. Tenant retention sits at 77%, and specialty vacancy improved to 4.3%.

Greg Chubb: Average tenure on these new deals is extended to 6.3 years, while incentives have decreased to 10.5 months. Tenant retention sits at 77%, and specialty vacancy improved to 4.3%. We have a clear focus on improving portfolio occupancy by introducing more productive retailers. Sustainable specialty occupancy costs of 9.7% and favorable market conditions, including very limited new retail supply and continued retailer sales growth, indicates positive leasing momentum to continue. Now moving to Slide 11. An important component of our organic growth strategy is disciplined reinvestment into our existing portfolio. An early priority in my tenure has been to review a number of potential projects with the team, and we see significant opportunity to drive further growth through active asset management and investment.

Speaker #4: We have a clear focus on improving portfolio occupancy by introducing more productive retailers. Sustainable specialty occupancy costs of 9.7% and favorable market conditions, including very limited new retail supply and continued retailer sales growth, indicate positive leasing momentum will continue.

Speaker #4: Now, moving to slide 11. An important component of our organic growth strategy is disciplined reinvestment into our existing portfolio. An early priority in my tenure has been to review a number of potential projects with the team.

Speaker #4: And we see significant opportunity to drive further growth through active asset management and investment. We're targeting incremental returns of greater than 7%, with a focus on projects that improve productivity and long-term income growth, while responding to the needs of our retail partners and the local communities that we serve.

Greg Chubb: We're targeting incremental returns of greater than 7%, with a focus on projects that improve productivity and long-term income growth while responding to the needs of our retail partners and the local communities that we serve. North Orange Shopping Center in Central Western New South Wales is a current example, where during the year, we completed the first phase of the project, including a Woolworths store refurbishment and extension, adding approximately 720 square meters. The project also delivered direct-to-boot e-commerce offering of 6 bays and 3 dedicated home delivery hub docks. The expanded store has recently opened for trade. We intend to soon commence phase 2 of this project with the inclusion of an Aldi supermarket. The project has recently secured development approvals and has a project cost of approximately AUD 9 million and a targeted completion date of Q4 of this financial year.

Greg Chubb: We're targeting incremental returns of greater than 7%, with a focus on projects that improve productivity and long-term income growth while responding to the needs of our retail partners and the local communities that we serve. North Orange Shopping Center in Central Western New South Wales is a current example, where during the year, we completed the first phase of the project, including a Woolworths store refurbishment and extension, adding approximately 720 square meters. The project also delivered direct-to-boot e-commerce offering of six bays and three dedicated home delivery hub docks. The expanded store has recently opened for trade. We intend to soon commence phase 2 of this project with the inclusion of an Aldi supermarket. The project has recently secured development approvals and has a project cost of approximately AUD 9 million and a targeted completion date of Q4 of this financial year.

Speaker #4: North Orient Shopping Centre in Central Western New South Wales is a current example, where during the year we completed the first phase of the project, including a Woolworths store refurbishment and extension, adding approximately 720 square metres.

Speaker #4: The project also delivered direct-to-boot e-commerce offering of six bays and three dedicated home delivery hub docks. The expanded store has recently opened for trade.

Speaker #4: We intend to soon commence phase two of this project, with the inclusion of an Aldi supermarket. The project has recently secured development approvals and has a project cost of approximately $9 million, with a targeted completion date of Q4 of this financial year.

Speaker #4: At Pakenham, in Victoria, we've also recently completed a $10 million specialty leasing-led center enhancement. This asset is now fully leased, strengthening the center's retail offer and supporting its ongoing performance.

Greg Chubb: At Pakenham in Victoria, we've also recently completed an AUD 10 million specialty leasing led center enhancement. This asset is now fully leased, strengthening the center's retail offer and supporting its ongoing performance. Slide 12. Beyond the projects I've just discussed, we've identified a broader pipeline of potential opportunities to unlock further value from our existing portfolio. A few of these near-term opportunities include projects at Kwinana Marketplace in Western Australia, the Greenbank Shopping Center, which is located in the southwest Brisbane growth corridor in Queensland, and Currambine Central in Western Australia. While every project is different, they all reflect the same disciplined approach. Remixing existing space, activating surplus or underutilized land, and introducing complementary uses that enhance the everyday customer experience and deliver attractive returns. We'll continue to assess these and other opportunities, and we'll certainly keep you updated. Moving on to slide 13 for sustainability.

Speaker #4: Slide 12. And, beyond the projects I've just discussed, we've identified a broader pipeline of potential opportunities to unlock further value from our existing portfolio.

Speaker #4: A few of these new near-term opportunities include projects at Kwinana Marketplace in Western Australia, the Greenbank Shopping Centre, which is located in the southwest Brisbane growth corridor in Queensland, and Currambine Central in Western Australia.

Speaker #4: And while every project is different, they all reflect the same disciplined approach: remixing existing space, activating surplus or underutilized land, and introducing complementary uses that enhance the everyday customer experience and deliver attractive returns.

Speaker #4: We'll continue to assess these and other opportunities, and we'll certainly keep you updated. Moving on to slide 13 for sustainability. During the year, we continued to make progress across our sustainability objectives.

Greg Chubb: During the year, we continued to make progress across our sustainability objectives. On the environmental front, we now have 21.8 megawatts of solar PV installed and operational across 33 centers with a further 3.2 megawatts in design. This ongoing investment improves the efficiency and resilience of our portfolio while supporting our pathway to net zero Scope 1 and Scope 2 emissions by FY30. Our center teams contributed to more than 2,100 hours to local causes during the year, reinforcing the role our centers play as trusted community hubs. We remain on track to meet mandatory ASRS requirements during FY27, and throughout the year, we continue to strengthen our climate governance, data systems, and reporting capability to ensure we're well-positioned for the new reporting framework. Now looking at slide 14. Alongside our organic growth pathways, we are selectively optimizing the portfolio through 3 inorganic growth levers, namely divest, invest, and partner.

Speaker #4: On the environmental front, we now have 21.8 megawatts of solar PV installed and operational across 33 centers, with a further 3.2 megawatts in design.

Speaker #4: This ongoing investment improves the efficiency and resilience of our portfolio, while supporting our pathway to net zero Scope 1 and Scope 2 emissions by FY30.

Speaker #4: Our center teams contributed more than 2,100 hours to local causes during the year, reinforcing the role our centers play as trusted community hubs.

Speaker #4: We remain on track to meet mandatory ASRS requirements. During FY27 and throughout the year, we continue to strengthen our climate governance, data systems, and reporting capability to ensure we're well positioned for the new reporting framework.

Speaker #4: Now, looking at slide 14. Alongside our organic growth pathways, we are selectively optimizing the portfolio through three inorganic growth levers—namely, divest, invest, and partner.

Speaker #4: Having undertaken a comprehensive review of the portfolio, we've identified a number of assets that are typically smaller—assets in smaller markets that we're progressing for potential divestment.

Greg Chubb: Having undertaken a comprehensive review of the portfolio, we've identified a number of assets that are typically smaller assets in smaller markets that we're progressing for potential divestment. We've demonstrated this through the very recent divestments of both Woodford Shopping Centre and Mission Beach Marketplace in Queensland for a combined value of AUD 32.8 million. These assets have an average yield of 5.8%. These divestments allowed us to reinvest that capital into high growth opportunities, such as the acquisition at Treendale in Western Australia at a 6.4% yield. This acquisition is strategically located next to an existing Region asset, giving us the opportunity to capture operating and management efficiencies. The transaction market is competitive in our retail sector. We will continue to remain disciplined with our investments and look for opportunities where our scale, focus, and expertise create value and advantage.

Speaker #4: We've demonstrated this through the very recent divestments of both Woodford Shopping Centre and Mission Beach Marketplace in Queensland, for a combined value of $32.8 million.

Speaker #4: These assets had an average yield of 5.8%. These divestments allowed us to reinvest that capital into high-growth opportunities, such as the acquisition at Trendale in Western Australia, at a 6.4% yield.

Speaker #4: This acquisition is strategically located next to an existing regional asset, giving us the opportunity to capture operating and management efficiencies. The transaction market remains competitive in our retail sector.

Speaker #4: We will continue to remain disciplined with our investments and look for opportunities where our scale, focus, and expertise create value and advantage. It's also been a strong year of inorganic growth in our existing Metro Fund partnership alongside a global institutional investor.

Greg Chubb: It has also been a strong year of inorganic growth in our existing Metro Fund partnership alongside a global institutional investor. Together, we acquired Dalyellup Shopping Centre in Western Australia and three additional strata properties at West Village in Metro Brisbane for a total of AUD 124.8 million. These partnerships provide another avenue to grow the portfolio, and we are well-positioned to explore additional partnership opportunities over time. Our objective is to progressively strengthen the quality and growth trajectory of the portfolio while maintaining a prudent approach to capital management and allocation. On that note, I will now hand over to David to talk through our financial results.

Speaker #4: Together, we acquired Dalley Ellipse Shopping Center in Western Australia and three additional strata properties at West Village in metro Brisbane for a total of $124.8 million.

Speaker #4: These partnerships provide another avenue to grow the portfolio, and we are well positioned to explore additional partnership opportunities over time. Our objective is to progressively strengthen the quality and growth trajectory of the portfolio, while maintaining a prudent approach to capital management and allocation.

Speaker #4: And on that note, I'll now hand over to David to talk through our financial results.

Speaker #2: Thank you, Greg, and good morning, everyone. From FY25 to FY26, FFO for Security increased by 3.2%, predominantly due to the inorganic growth initiatives. Importantly, we recorded strong comparable net operating income growth of 3.3%, driven by improved occupancy, positive leasing spreads, contracted annual rent increases, and controlled operating expense growth.

David Salmon: Thank you, Greg, and good morning, everyone. From FY25 to FY26, FFO per security increased by 3.2%, predominantly due to the inorganic growth initiatives. Importantly, we recorded strong comparable net operating income growth of 3.3%, driven by improved occupancy, positive leasing spreads, contracted annual rent increases, and controlled operating expense growth. Comparable revenue growth was higher than expense growth during the period, which has helped improve our NOI margin. We are also seeing the benefits from the capital invested into our asset enhancement and projects coming through earnings. The portfolio optimization and partnership activity previously referred to helped contribute to our upgrade in earnings, which we announced back in February. At the start of this financial year, we flagged an expected increase in the weighted average cost of debt due to the maturity of some favorable hedges.

David Salmon: Thank you, Greg, and good morning, everyone. From FY 2025 to FY 2026, FFO per security increased by 3.2%, predominantly due to the inorganic growth initiatives. Importantly, we recorded strong comparable net operating income growth of 3.3%, driven by improved occupancy, positive leasing spreads, contracted annual rent increases, and controlled operating expense growth. Comparable revenue growth was higher than expense growth during the period, which has helped improve our NOI margin. We are also seeing the benefits from the capital invested into our asset enhancement and projects coming through earnings. The portfolio optimization and partnership activity previously referred to helped contribute to our upgrade in earnings, which we announced back in February. At the start of this financial year, we flagged an expected increase in the weighted average cost of debt due to the maturity of some favorable hedges.

Speaker #2: Comparable revenue growth was higher than expense growth during the period, which has helped improve our NOI margin. We have also seen the benefits from the capital invested into our asset enhancement and projects coming through earnings.

Speaker #2: The portfolio optimization and partnership activity previously referred to helped contribute to our upgraded earnings, which we announced back in February. At the start of this financial year, we flagged an expected increase in the weighted average cost of debt due to the maturity of some favorable hedges.

Speaker #2: For the impact of this WACD increase, FFO per security growth for FY26 was more than 5%. Moving to slide 17. Our FY26 distribution is 14.1 cents per security, which is in line with guidance and provides growth of 2.9% on FY25.

David Salmon: For the impact of this WACD increase, FFO per security growth for FY26 was more than 5%. Let us move into slide 17. Our FY26 distribution is AUD 0.141 per security, which is in line with guidance and provides growth of 2.9% on FY25. Net operating income growth of 3.3% was driven by the comparable NOI growth of 3.3% and the impact of transactional activity. Other operating income grew by close to AUD 1 million or 15% due to the growth in our Metro Fund partnership. Interest expense growth during the year reflects the increase in WACD, which we flagged at the start of FY26, as well as the funding of our asset enhancements and projects, and also the on-market security buyback.

David Salmon: For the impact of this WACD increase, FFO per security growth for FY 2026 was more than 5%. Let us move into slide 17. Our FY26 distribution is AUD 0.141 per security, which is in line with guidance and provides growth of 2.9% on FY25. Net operating income growth of 3.3% was driven by the comparable NOI growth of 3.3% and the impact of transactional activity. Other operating income grew by close to AUD 1 million or 15% due to the growth in our Metro Fund partnership. Interest expense growth during the year reflects the increase in WACD, which we flagged at the start of FY26, as well as the funding of our asset enhancements and projects, and also the on-market security buyback.

Speaker #2: Net operating income growth of 3.3% was driven by comparable NOI growth of 3.3% and the impact of transactional activity. Other operating income grew by close to $1 million, or 15%, due to the growth in our Metro Fund partnership.

Speaker #2: Interest expense growth during the year reflects the increase in WACD, which I flagged, which we flagged at the start of FY26, as well as the funding of our asset enhancements and projects, and also the on-market security buyback.

Speaker #2: Maintenance and leasing capital spend was higher due to the increased number of new leasing deals this year, noting the average lease incentive per deal has reduced.

David Salmon: Maintenance and leasing capital spend was higher due to the increased number of new leasing deals this year, noting the average lease incentive per deal have reduced, also with longer average lease terms achieved. Following positive investment property revaluations, the statutory profit after tax was AUD 268.8 million. Slide 18 shows our balance sheet. As at 30 June 2026, our total assets under management were AUD 5.5 billion, which represents a 5.5% increase from the prior year. Our balance sheet remains healthy, with pro forma gearing of 34.1%, below the midpoint of our target 30% to 40% range, and this includes the divestment of Mission Beach Marketplace, which settled in July 2026. This gives us the capacity to deploy capital when strategic opportunities arise. Our NTA has grown by 4% to AUD 2.57 per security, primarily off the back of investment property revaluation growth during the year.

Speaker #2: Also, with longer average lease terms achieved. Following positive investment property revaluations, the statutory profit after tax was $268.8 million. Slide 18 shows our balance sheet.

Speaker #2: As of 30 June 2026, our total assets under management were $5.5 billion, which represents a 5.5% increase from the prior year. Our balance sheet remains healthy, with pro forma gearing of 34.1%, below the midpoint of our target 30% to 40% range, and this includes the divestment of Mission Beach Marketplace, which settled in July 2026.

Speaker #2: This gives us the capacity to deploy capital when strategic opportunities arise. Our NTA has grown by 4% to $2.57 per security, primarily off the back of investment property revaluation growth during the year.

Speaker #2: Slide 19 shows additional information on the movement in the valuation of our portfolio, which increased by $224 million, or 5.1%. The movement was driven by a 4.4% fair value increase, including capital expenditure plus net acquisitions completed as part of our portfolio optimization. An additional 11 basis points to 5.86% over the year, with income growth the key driver of valuation uplift.

David Salmon: Slide 19 shows additional information on the movement in the valuation of our portfolio, which increased by AUD 224 million or 5.1%. The movement was driven by a 4.4% fair value increase, including capital expenditure plus net acquisitions completed as part of our portfolio optimization strategy. Capitalization rates firmed by an additional 11 basis points to 5.86% over the year, with income growth the key driver of valuation uplift. We continue to see potential upside in our portfolio valuations with both strong income growth and demand for assets in our sector. Let's move into slide 20. We continued to execute on our disciplined capital management strategy during FY26. We have refinanced over AUD 1 billion of debt facilities at improved borrowing margins.

David Salmon: Slide 19 shows additional information on the movement in the valuation of our portfolio, which increased by AUD 224 million or 5.1%. The movement was driven by a 4.4% fair value increase, including capital expenditure plus net acquisitions completed as part of our portfolio optimization strategy. Capitalization rates firmed by an additional 11 basis points to 5.86% over the year, with income growth the key driver of valuation uplift. We continue to see potential upside in our portfolio valuations with both strong income growth and demand for assets in our sector. Let's move into slide 20. We continued to execute on our disciplined capital management strategy during FY 2026. We have refinanced over AUD 1 billion of debt facilities at improved borrowing margins.

Speaker #2: We continue to see potential upside in our portfolio valuations, with both strong income growth and demand for assets in our sector. Moving to slide 20.

Speaker #2: We continued to execute on our disciplined capital management strategy during FY26. We have refinanced over $1 billion of debt facilities at improved borrowing margins.

Speaker #2: This included the issuance of a $300 million, six-year Australian medium-term note at a borrowing margin of 1.22%, and the repayment of $407 million of US private placement notes, which had a weighted average borrowing margin of 1.83%.

David Salmon: This included the issuance of a AUD 300 million six-year Australian medium-term note at a borrowing margin of 1.22%, and the repayment of AUD 407 million of US private placement notes, which had a weighted average borrowing margin of 1.83%. These initiatives contributed to a reduction in our weighted average borrowing margin from 1.6% in FY25 to 1.5% in FY26. As I mentioned before, our weighted average cost of debt increased by 20 basis points to 4.5% this year, and 100% of our debt was hedged or fixed. Looking ahead, with gearing below the midpoint of our target 30% to 40% range, over AUD 200 million of undrawn debt capacity, and high levels of hedging in place at attractive rates, we are well-positioned. I'll now hand back to Greg, who will talk through our outlook.

Speaker #2: These initiatives contributed to a reduction in our weighted average borrowing margin from 1.6% in FY25 to 1.5% in FY26. As I mentioned before, our weighted average cost of debt increased by 20 basis points to 4.5% this year, and 100% of our debt was hedged or fixed.

Speaker #2: Looking ahead, with gearing below the midpoint of our target 30% to 40% range, over $200 million of undrawn debt capacity, and high levels of hedging in place at attractive rates, we are well positioned.

Speaker #2: I'll now hand back to Greg, who will talk through our outlook.

Speaker #3: Greg, thank you. David, our strategy is targeting 3–4% plus sustainable AFFO growth per security, and we're confident that starts with the portfolio we already own and manage.

Greg Chubb: Great. Thank you, David. Our strategy is targeting 3% to 4% plus sustainable AFFO growth per security, and we're confident that that starts with the portfolio we already own and manage. Our focus is on proactively unlocking organic growth within our existing essential retail centers through active asset management, majors and specialty leasing optimization, and targeted projects and asset enhancements. We complement that with selective inorganic growth opportunities through portfolio optimization, disciplined acquisitions, and partnerships where they strengthen the portfolio quality and create additional long-term value. Our internally managed integrated operating platform enables us to execute consistently across the portfolio, supported by our disciplined approach to capital management and allocation. Our strategy and growth model is designed to generate defensive and resilient cash flows that support growing distributions and deliver sustainable security holder returns. Now finally moving to slide 23 and FY27 guidance.

Speaker #3: Our focus is on proactively unlocking organic growth within our existing essential retail centers through active asset management, majors and specialty leasing optimization, and targeted projects and asset enhancements.

Speaker #3: We complement that with selective inorganic growth opportunities through portfolio optimization, disciplined acquisitions, and partnerships where they strengthen the portfolio quality and create additional long-term value.

Speaker #3: Our internally managed, integrated operating platform enables us to execute consistently across the portfolio, supported by our disciplined approach to capital management and allocation. Our strategy and growth model are designed to generate defensive and resilient cash flows that support growing distributions and deliver sustainable security holder returns.

Speaker #3: Now, finally, moving to slide 23 and FY27 guidance. Looking ahead, our priorities remain clear, and our focus is on executing the growth strategy that we have outlined today.

Greg Chubb: Looking ahead, our priorities remain clear and our focus is on executing the growth strategy that we have outlined today. Against that backdrop, and assuming no material change in market conditions, we're providing FY27 earnings guidance of 3% growth in FFO to AUD 0.165 per security and 3% growth in AFFO to AUD 0.145 per security, with a targeted distribution payout ratio of 100% of AFFO. This guidance does not include any transactional activity beyond what we have already disclosed. With a high-quality, essential retail portfolio, a strong balance sheet, and continued momentum across the business, I'm very confident that the team at Region is well-positioned for the year ahead. That concludes the formal presentation. I would like now to hand over to the moderator and open it up to any questions. Thank you.

Greg Chubb: Looking ahead, our priorities remain clear and our focus is on executing the growth strategy that we have outlined today. Against that backdrop, and assuming no material change in market conditions, we're providing FY 2027 earnings guidance of 3% growth in FFO to AUD 0.165 per security and 3% growth in AFFO to AUD 0.145 per security, with a targeted distribution payout ratio of 100% of AFFO. This guidance does not include any transactional activity beyond what we have already disclosed. With a high-quality, essential retail portfolio, a strong balance sheet, and continued momentum across the business, I'm very confident that the team at Region is well-positioned for the year ahead. That concludes the formal presentation. I would like now to hand over to the moderator and open it up to any questions. Thank you.

Speaker #3: Against that backdrop, and assuming no material change in market conditions, we're providing FY27 earnings guidance of 3% growth in FFO to 16.5 cents per security, and 3% growth in AFFO to 14.5 cents per security, with a targeted distribution payout ratio of 100% of AFFO.

Speaker #3: This guidance does not include any transactional activity beyond what we have already disclosed. With a high-quality, essential retail portfolio, a strong balance sheet, and continued momentum across the business, I'm very confident that the team at Region is well positioned for the year ahead.

Speaker #3: Now, that concludes the formal presentation. I would like to now hand over to the moderator and open it up to any questions. Thank you.

Speaker #1: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Adam Calvetti with Bank of America. Please go ahead.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Adam Calvetti with Bank of America. Please go ahead.

Speaker #1: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Adam Calveti with Bank of America.

Speaker #1: Please go ahead.

Speaker #4: Oh, hi Greg and David, and congrats on your first result. Hey, what needs to happen to reach the top end of your 3% to 4% AFFO guidance?

Adam Calvetti: Hi, Greg and David, and congrats on your first result. What needs to happen to reach the top end of your 3% to 4% AFFO guidance?

Speaker #2: Hi Adam, yes, David. Yeah, look, what I'd highlight in our guidance of 3% growth is we haven't assumed any inorganic activity, and by that I mean any asset sales or acquisitions, or funds management, or Metro Fund expansion activities.

David Salmon: Hi, Adam. Yes, it is David. Look, what I would highlight in our guidance of 3% growth is we have not assumed any inorganic activity, and by that I mean any asset sales or acquisitions or funds management or Metro Fund expansion activities. Just to put it in context, if we had a similar level of funds management activity in 2026 as we did in, I am sorry, into 2027 as we did in 2026, we would be guiding closer to that 4%.

David Salmon: Hi, Adam. Yes, it is David. Look, what I would highlight in our guidance of 3% growth is we have not assumed any inorganic activity, and by that, I mean any asset sales or acquisitions or funds management or Metro Fund expansion activities. Just to put it in context, if we had a similar level of funds management activity in 2026 as we did in, I am sorry, into 2027 as we did in 2026, we would be guiding closer to that 4%.

Speaker #2: Just to put it in context, if we had a similar level of funds management activity in '26 as we did in sorry, in '27 as we did in '26, we'd be guiding close to that 4%.

Speaker #4: That's great, that's clear. Hey, and then just on FY26, I think you spent about $65 million in CapEx—some of that was for a range of different reasons.

Adam Calvetti: Okay, great. That is clear. Then just on FY26, I think you spent about AUD 65 million in CapEx. Some of that was, there is a range of different reasons. But, I think there is AUD 1.4 million of development income that has come through. It is a pretty low yield on cost. Is there more expected to come through in 2027 from that AUD 65 million that was spent? How do we think about the CapEx that you are spending in the future and that flowing through to top-line income?

Adam Calvetti: Okay, great. That is clear. Then just on FY 2026, I think you spent about AUD 65 million in CapEx. Some of that was, there is a range of different reasons. But, I think there is AUD 1.4 million of development income that has come through. It is a pretty low yield on cost. Is there more expected to come through in 2027 from that AUD 65 million that was spent? How do we think about the CapEx that you are spending in the future and that flowing through to top-line income?

Speaker #4: But I mean, I think there’s $1.4 million of development income that’s come through. It’s a pretty low yield on cost. Is there more expected to come through in ’27 from that $65 million that was spent?

Speaker #4: And how should we think about the CapEx you're spending in the future and how that will flow through to top-line income?

Speaker #3: Yeah, that meant, Adam, that $1.4 million return is only on a partial allocation of that $60 million. So there's about $30 million associated with projects that were delivered in the part year at Miami, Lavington, and Pakenham.

David Salmon: Yeah, that meant, Adam Calvetti, that, AUD 1.4 million return is only on a partial allocation of that AUD 60 million. There's about AUD 30 million associated with projects that were delivered in the past year at Miami, Lavington, and Pakenham. All those projects were delivering or will deliver full-year benefit, of closer to AUD 7 million on a full-year basis, which we'll start to see the benefit of in this financial year.

Greg Chubb: Yeah, that meant, Adam, that, AUD 1.4 million return is only on a partial allocation of that AUD 60 million. There's about AUD 30 million associated with projects that were delivered in the past year at Miami, Lavington, and Pakenham. All those projects were delivering or will deliver full-year benefit, of closer to AUD 7 million on a full-year basis, which we'll start to see the benefit of in this financial year.

Speaker #3: So all those projects were delivering, or will deliver, a full-year benefit of closer to seven on a full-year basis, which we will start to see the benefit of in this financial year.

Speaker #4: Okay, amazing. One more, if I may—just on the Metro fund. There's less of a focus on that fund; I don't think you actually provided the total AUM in this presentation as you did in the last presentations.

Adam Calvetti: Okay, amazing. One more, if I may. Just on the Metro Fund, there's less of a focus on that fund. I don't think you provided actually the total AUM in this presentation than you did in the last presentations. How are the discussions going with capital partners and how are the funds progressing? Is it looking likely, I know guidance doesn't assume growth, but is it looking likely there'll be some more transactions?

Speaker #4: How are the discussions going with capital partners and how are the funds progressing? Is it looking likely—while the guidance doesn't assume any growth, is it looking likely there'll be some more transactions?

Speaker #2: Yeah, as David mentioned,

Greg Chubb: Yeah, as David Salmon mentioned, there's no inorganic growth in our guidance. So the existing Metro Fund that we have has now got just in excess of AUD 800 million of assets. We have one partner in that space, so it is a partnership. Ideally, we'd like to be growing it alongside our existing partner. We're assessing a number of opportunities, but there's nothing baked into our guidance. In short, we would be looking to grow that partnership.

Greg Chubb: Yeah, as David mentioned, there's no inorganic growth in our guidance. So the existing Metro Fund that we have has now got just in excess of AUD 800 million of assets. We have one partner in that space, so it is a partnership. Ideally, we'd like to be growing it alongside our existing partner. We're assessing a number of opportunities, but there's nothing baked into our guidance. In short, we would be looking to grow that partnership.

Speaker #3: There's no inorganic growth in our guidance, so the existing Metro Fund that we have now has just in excess of $800 million of assets.

Speaker #3: And we have one partner in that space, so it is a partnership. Ideally, we'd like to be growing it alongside our existing partner, and we're assessing a number of opportunities, but there's nothing baked into our guidance.

Speaker #3: But in short, we would be looking to grow that partnership.

Speaker #4: Okay, and they've got capacity to continue to deploy.

Adam Calvetti: Okay. They've got capacity to continue to deploy?

Speaker #3: Yes, it does. Yes, it does.

David Salmon: Yes, it does.

Greg Chubb: Yes, it does.

Speaker #4: Okay, perfect. Amazing. Thanks.

Adam Calvetti: Okay, perfect. Amazing. Thanks.

Speaker #3: Thank you.

David Salmon: Thank you.

Greg Chubb: Thank you.

Speaker #1: Thank you. Your next question comes from Carl Braganza with Jordan. Please go ahead.

Operator 2: Thank you. Your next question comes from Carl Braganza with Jarden. Please go ahead.

Operator: Thank you. Your next question comes from Carl Braganza with Jarden. Please go ahead.

Speaker #2: Good morning, Greg, David. Thanks for your time. I have a few questions. The first one is about how you think about your best uses of capital.

Carl Braganza: Morning, Greg, David. Thanks for your time. A few questions from me. The first one was just about how you are thinking about your best uses of capital. Could you rank your preferences between, firstly, development, second, the continuation of the buyback, and then lastly, acquisitions?

Speaker #2: Could you rank your preferences between, firstly, development; secondly, the continuation of the buyback; and then, lastly, acquisitions?

Speaker #3: I think you've probably put it in that order. And, largely, the capital works that we're doing, I wouldn't necessarily term as developments. They're more asset enhancement projects.

Greg Chubb: I think you have probably put it in that order. Largely the capital works that we are doing, I would not term necessarily as developments in more asset enhancement projects. In essence, our strategy there is to line our capital programs alongside our major tenants. We have got a reasonably good opportunity there to try and bridge the gap in economic rent. For our supermarket operators to get new space on the ground, which is proving to be increasingly difficult, the economic rent is in excess of AUD 600 a meter. There is a real focus on enhancing existing estates. We are aligning our capital programs alongside our existing major tenant partners. That is a real priority. We have looked at a number of divestments. I have been in the business now for 5 and a half months. We have looked at a number of divestments.

Speaker #3: And, in essence, our strategy there is to align our capital programs alongside our major tenants. So we've got a reasonably good opportunity there to try and bridge the gap in economic rents.

Speaker #3: So, for our supermarket operators to get new space on the ground, which is proving to be increasingly difficult—the economic rents are in excess of $600 a meter—so there's a real focus on enhancing existing estates.

Speaker #3: So, we're aligning our capital programs alongside our existing major tenant partners, so that's a real priority. We've looked at a number of divestments. I've been in the business now for five and a half months.

Speaker #3: We've looked at a number of divestments. The pricing on the sort of assets that we've been looking at has been very tight, and we haven't been able to complete anything. And then overall, the third option for us is buying back stock.

Greg Chubb: The pricing on the sort of assets that we have been looking at has been very tight, and we have not been able to complete anything. Overall, the third option for us is buying back stock. That is the order of priority for us.

Speaker #3: So that's the order of priority for us.

Speaker #2: And thanks for that, Carla. Just the next one was on the divestments piece—you talked about looking to divest small, lower-growth assets in remote regions.

Carl Braganza: Thanks for that color. The next one was on the divestments piece. You talked about looking to divest small, lower growth assets in remote regions. Can you quantify the assets in that bucket and the cap rate you would expect to sell those assets for?

Speaker #2: Can you quantify the assets in that bucket, and the cap rate you would expect to sell those assets for?

Speaker #3: Sure. So, in simple terms, the way that I'd look at that is we've got 16 assets that are below $30 million in value.

Greg Chubb: Sure. In simple terms, the way that I'd look at that is we've got 16 assets that are below AUD 30 million in value. A good proportion of those are in remote or smaller markets, and they have passing yields in the mid 5% range broadly. That's the opportunity for us to recycle some of those assets and to redeploy those proceeds into the capital works programs that I articulated before alongside our major tenant partners.

Speaker #3: And a good proportion of those are in remote or smaller markets, and they have passing yields in the mid-5% range broadly. So that's the opportunity for us to recycle.

Speaker #3: Some of those assets, and to redeploy those proceeds into the capital works programs that I articulated before, alongside our major tenant partners.

Speaker #2: Thanks for that. And then, final question from me: How will you think about cost growth going into next year?

Carl Braganza: Thanks for that. Final question from me, how are you thinking about cost growth going into next year?

Speaker #3: Yeah, I mean, there's been a lot of work done on cost growth or managing our expenses over the last 18 months or so in the business.

Greg Chubb: Yeah, there's been a lot of work done on cost growth, or managing our expenses over the last 18 months or so in the business. You'll see that we've managed our expense growth into the mid 2% range, for FY26. We anticipate with the hedging that we've undertaken on a number of major cost lines, that we should be at a similar level in FY27. We're starting to see the benefit of the investment in solar that the business has undertaken progressively over the last few years in controlling our electricity costs. I would suggest a very similar outlook to what we've delivered in FY26.

Speaker #3: You'll see that we've managed our expense growth into the mid-2% range for FY26, and we anticipate, with the hedging that we've undertaken on a number of major cost lines, that we should be at a similar level in FY27.

Speaker #3: And we're starting to see the benefit of the investment in solar that the business has undertaken progressively over the last few years in controlling our electricity costs.

Speaker #3: So, I would suggest a very similar outlook to what we've delivered in FY26.

Speaker #2: Thanks for that, guys. That's all from me.

Carl Braganza: Thanks for that, guys. That's all from me.

Speaker #3: Thank you.

David Salmon: Thank you.

Greg Chubb: Thank you.

Speaker #1: Thank you. Your next question comes from Simon Chen with Morgan Stanley. Please go ahead.

Operator 2: Thank you. Your next question comes from Simon Chan with Morgan Stanley. Please go ahead.

Operator: Thank you. Your next question comes from Simon Chan with Morgan Stanley. Please go ahead.

Speaker #5: Great, great. Good, everyone. Hey Greg, I just want to clarify—getting the clarified response to the previous question. Is it a similar outlook as to FY26 on cost?

Simon Chan: Good day, Greg. Good day, everyone. Hey, Greg, I just wanted to clarify, give you the clarified response to the previous question. Similar outlook as to FY26 on cost. Are you suggesting that property-level expense in FY27 should grow at a similar rate?

Simon Chan: Good day, Greg. Good day, everyone. Hey, Greg, I just wanted to clarify, give you the clarified response to the previous question. Similar outlook as to FY 2026 on cost. Are you suggesting that property-level expense in FY 2027 should grow at a similar rate?

Speaker #5: So, are you suggesting that property-level expense in FY27 should grow at a similar rate? Because I think 2.5%.

Greg Chubb: Yes.

Simon Chan: Which was, I think, 2.5%?

Speaker #3: Yeah, they're about, Simon, yes.

Greg Chubb: Yeah. Thereabout, Simon. Yes.

Speaker #5: Yeah, okay, cool. Hey, in one of your slides, and also in your prepared remarks, you talked about divest, invest, and partner—I think on slide 14. If we were to reconvene in 12 months' time, right, which of those buckets do you reckon you would have made the most progress or done the most stuff in?

Simon Chan: Yeah. Okay, cool. Hey, in one of your slides, and also in your prepared remarks, you talked about divest, invest, and partner. I think on slide 14. If we were to reconvene in 12 months' time, right? Which of those buckets do you reckon you would have had, made the most progress or done the most stuff in?

Speaker #3: Yeah. I mean, it's not a race. I think we're focused on divesting assets in order to be able to fund where we invest and what we invest in.

Greg Chubb: Yeah. It's not a race. I think, it's probably, we're focused on divesting assets in order to be able to fund where we invest and what we invest in. We've got a very strong partnership with the Metro vehicle that's been in existence now for quite a few years. We very much hope to expand on that. I would think it's progress on all three, would be my desire over the next 12 months.

Speaker #3: We've got a very strong partnership with the Metro Vehicle that has been in existence now for quite a few years. We very much hope to expand on that.

Speaker #3: So I would think it's progress on all three; that would be my desire over the next 12 months.

Speaker #5: Is there one bucket that is easier to execute than the others?

Simon Chan: Is there one bucket which is easier to execute than others?

Speaker #3: I think probably the hardest one at the moment, which is part of the invest bucket, is new acquisitions—just pricing is very challenging. We do have a very strong balance sheet that gives us flexibility, but I would think probably the most near-term activation for us is the divestment and reinvestment back into the top end of our fleet.

Greg Chubb: I think probably the hardest one at the moment, which is part of the invest bucket is new acquisitions. Pricing is very challenging. We do have a very strong balance sheet that gives us flexibility, but I would think probably the most near-term activation for us is the divestment and reinvestment back into the top end of our fleet, aligning our capital programs alongside our major tenants that I articulated earlier.

Speaker #3: And aligning our capital programs alongside our major tenants that I articulated earlier.

Speaker #5: Great. And just one more, probably more for David or Simon. Hey, cost of debt into FY27, what have you factored into your guidance there?

Simon Chan: Great. Just one more, probably more for David Salmon. Hey, cost of debt into FY27. What have you factored into your guidance there?

Simon Chan: Great. Just one more, probably more for David Salmon. Hey, cost of debt into FY 2027. What have you factored into your guidance there?

Speaker #3: Yeah, hi, Simon. Yeah, obviously, we're at 4.5% for FY26, but for FY27, I'd say it'll be circa 4.6% or thereabouts. And I think there's sort of—there's two, I guess, drivers of that.

David Salmon: Yeah. Hi, Simon. Yeah, obviously we are at 4.5% for FY26. But for FY27, I would say it will be circa 4.6% or thereabout. I think there are two, I guess, drivers of that. We are seeing, whilst we are highly hedged, there will be a little bit of base rate increase, through to the. There is an unhedged component there, reverting to market or floating rates. But offsetting that, or partially offsetting that will be some lower borrowing margins coming through. So yeah, on a blended basis, I think it will be around that 4.6% thereabout.

David Salmon: Yeah. Hi, Simon. Yeah, obviously we are at 4.5% for FY 2026. But for FY 2027, I would say it will be circa 4.6% or thereabout. I think there are two, I guess, drivers of that. We are seeing, whilst we are highly hedged, there will be a little bit of base rate increase, through to the. There is an unhedged component there, reverting to market or floating rates. But offsetting that, or partially offsetting that will be some lower borrowing margins coming through. So yeah, on a blended basis, I think it will be around that 4.6% thereabout.

Speaker #3: We're seeing, whilst we're highly hedged, there will be a little bit of base rate increase through to — there's an unhedged component there, reverting to market or floating rates.

Speaker #3: But offsetting that, or partially offsetting that, will be some lower borrowing margins coming through. So yeah, on a blended basis, I think we'll be around that sort of 4.6% thereabouts.

Speaker #5: Okay, very clear. Thanks, guys. Cheers.

Simon Chan: Okay. Very clear. Thanks, guys. Cheers.

Speaker #1: Thank you. Your next question comes from Solomon Zhang with UBS. Please go ahead.

Operator 2: Thank you. Your next question comes from Solomon Zhang with UBS. Please go ahead.

Operator: Thank you. Your next question comes from Solomon Zhang with UBS. Please go ahead.

Speaker #5: Morning, Greg and David. Thanks for the time. Just taking a look at slides 11 and 12, just on the center enhancement and repositioning works.

Solomon Zhang: Morning, Greg and David. Thanks for the time. Just taking a look at slides 11 and 12, just on the center enhancement and repositioning works. Just wanted to pick up on, Greg, your earlier comments around accelerating organic growth. I guess historically, you've done probably around 20 million per annum, give or take, in these works. Do you have a sense of how much you could lift this to per annum, knowing you do have a constraint around opportunity set, I guess human resourcing and capital as well, but any thoughts that would be great.

Speaker #5: And just wanted to pick up on, Greg, your earlier comments around accelerating organic growth. I guess historically, you've done probably around $20 million per annum, give or take, in these works.

Speaker #5: Do you have a sense of how much you could lift this to per annum, knowing you do have a constraint around opportunity set? I guess human resourcing and capital as well, but any thoughts there would be great.

Speaker #3: Yeah, I guess it'll be a progressive evolution for us. So we're reallocating priorities and resourcing into this space, so it will take a little bit of time to move along.

Greg Chubb: Well, I guess it will be a progressive evolution for us. We are reallocating priorities and resourcing into this space. So it will take a little bit of time to move along. But what we will probably focus on more so than projects that the business might have focused on historically is smaller, higher impact projects. Again, without being repetitive, aligning our capital programs alongside our major tenants. So those returns of 7% plus, I think are very achievable on these smaller projects that are high impact. Again, will be driving better outcomes from our major tenants, which make up circa 45% of our total income.

Speaker #3: But what we will probably focus on, more so than projects that the business might have focused on historically, is smaller, higher-impact projects. And again, without being repetitive, aligning our capital programs alongside our major tenants.

Speaker #3: So, those returns of 7% plus, I think, are very achievable on these smaller projects that are high impact and, again, will be driving better outcomes from our major tenants, which make up approximately 45% of our total income.

Speaker #5: Great. And maybe just a definitional question. When you're calling out 7% incremental returns, is that a yield on cost, purely looking at the direct impact of, I guess, the cost versus the income, or just perhaps some of the...

Solomon Zhang: Great. Maybe just a definitional question. When you are calling out 7% incremental returns, is that a yield on costs purely looking at the direct impact of-

Greg Chubb: Yep

Solomon Zhang: I guess the cost versus the income.

Greg Chubb: Exactly

Solomon Zhang: Or does it factor some of the.

Solomon Zhang: Or does it factor some of the—

Speaker #3: Exactly. It's the incremental return on the incremental benefits coming through—the incremental return on the incremental capital.

Greg Chubb: It's the incremental return on the incremental capital.

Solomon Zhang: Benefits coming through?

Greg Chubb: The incremental return on the incremental capital.

Speaker #5: Right. Great. And maybe just a final one on this topic. So, is there much of a P&L impact from, I guess, the center being disrupted, or is that a broad wash with the increased capitalized interest?

Solomon Zhang: Right. Great. Maybe just a final one on this topic. Is there much of a P&L impact from, I guess, the center being disrupted, or is-

Greg Chubb: No

Solomon Zhang: is that a broad wash-

Solomon Zhang: is that a broad wash with the increased capitalized interest?

Greg Chubb: No. No, no.

Solomon Zhang: with the increased capitalized interest?

Speaker #3: No, this is all done in existing trading environments. Look, there might be some slight impacts. We're doing quite a lot of tenancy remixing. You'll note that we've called out 172 new deals.

Greg Chubb: No. This is all done in existing trading environments. Look, there might be some slight impacts. We are doing quite a lot of tenancy remixing. You will note that we have called out 172 new deals during the period, but no lost rent, in essence. Again, the projects are not overly disruptive.

Greg Chubb: No, no. This is all done in existing trading environments. Look, there might be some slight impacts. We are doing quite a lot of tenancy remixing. You will note that we have called out 172 new deals during the period, but no lost rent, in essence. Again, the projects are not overly disruptive.

Speaker #3: During the period, but no lost rent, in essence. And again, the projects are not overly disruptive. Thank you.

Solomon Zhang: Appreciate it. Thanks.

Greg Chubb: Thank you.

Speaker #1: Thank you. Your next question comes from Michael Armstrong with Bell Potter. Please go ahead.

Operator 2: Thank you. Your next question comes from Michael Armstrong with Bell Potter. Please go ahead.

Operator: Thank you. Your next question comes from Michael Armstrong with Bell Potter. Please go ahead.

Speaker #5: Hi Greg and David. Just on '27 guidance, what are you assuming in terms of the 7.8% lease expiry?

Michael Armstrong: Hi, Greg and David. Just on 2027 guidance. What are you assuming in terms of the 7.8% lease expiries?

Speaker #3: Sorry, just couldn't get you there, Michael. Can you repeat that question, please?

Greg Chubb: Sorry, couldn't get you there, Michael. Can you repeat that question, please?

Speaker #5: Sorry, just in terms of guidance for '27, what are you assuming in terms of the 7.8% lease expiry?

Michael Armstrong: Sorry. Just in terms of guidance for 2027, what are you assuming in terms of the 7.8% lease expiries?

Speaker #3: Yeah, I mean, it's a pretty—it's not a large expiry profile. We've already broken through about 40% of the use activity, and we're printing positive reversions.

Greg Chubb: Yeah. It's not a large expiry profile. We've already broken through about 40% of the year's activity, and we're printing positive reversions. Hopefully, we'll be getting close to the reversions that we printed in FY26, which was 4%. But a real focus and priority for our business is the average annual contracted rent reviews. In FY26, we delivered 4.4%, which is giving us an average fixed bump of 4.3% over our specialty leases. The other thing that we're noting is that the average lease terms are expanding. I think on new deals it was +6 years. And we're doing a lot of conversion of retail space to food-related trades. So it's a continuation of that. And we're seeing better reversions on new deals than we are on renewals, and I'd anticipate that that will continue.

Greg Chubb: Yeah. It's not a large expiry profile. We've already broken through about 40% of the year's activity, and we're printing positive reversions. Hopefully, we'll be getting close to the reversions that we printed in FY 2026, which was 4%. But a real focus and priority for our business is the average annual contracted rent reviews. In FY 2026, we delivered 4.4%, which is giving us an average fixed bump of 4.3% over our specialty leases. The other thing that we're noting is that the average lease terms are expanding. I think on new deals it was +6 years. And we're doing a lot of conversion of retail space to food-related trades. So it's a continuation of that. And we're seeing better reversions on new deals than we are on renewals, and I'd anticipate that that will continue.

Speaker #3: So hopefully, we'll be getting close to the reversions that we printed in FY26, which was 4%. But a real focus and priority for our business is the average annual contracted rent reviews.

Speaker #3: So, in FY26, we delivered 4.4%, which is giving us an average fixed bump of 4.3% over our specialty leases. And the other thing that we're noting is that the average lease terms are expanding.

Speaker #3: So I think on new deals it was plus six years, and we're doing a lot of conversion of retail space to food-related trades, so it's a continuation of that.

Speaker #3: And we're seeing better reversions on new deals than we are on renewals. And I'd anticipate that that will continue.

Speaker #5: Okay, thank you. And then you've been fully hedged through FY26. Now that's starting to gradually roll off. Could you just remind me of your hedging policy, and where you'd like to sit in terms of being at the upper or lower end of possible hedging ranges?

Michael Armstrong: Okay. Thank you. You've been fully hedged through FY26. Now that's starting to gradually roll off. Could you just remind me of your hedging policy and where you'd like to sit in terms of being at the upper or lower end of possible hedging ranges?

Michael Armstrong: Okay. Thank you. You've been fully hedged through FY 2026. Now that's starting to gradually roll off. Could you just remind me of your hedging policy and where you'd like to sit in terms of being at the upper or lower end of possible hedging ranges?

Speaker #3: Yeah, hi, it's David. Yeah, look, obviously our hedging policy is quite broad. We just like to have more than 50% hedged for the year ahead.

David Salmon: Yeah. Hi, it's David. Look, obviously our hedging policy is quite broad. We just like to have more than 50% hedged for the year ahead. Having said that, obviously, we like to hedge as much as makes sense. We like to have a smooth earnings profile and that's the philosophy we've taken in, and that's what you see reflected in our current hedging book. And we'll continue to look for opportunities at the right time in the market to increase that level of hedging.

Speaker #3: But having said that, obviously we like to hedge as much as makes sense. We like to have a smooth earnings profile, and that's the philosophy we've taken in.

Speaker #3: And that's what you see reflected in our current hedging book, and we'll continue to look for opportunities at the right time in the market to increase that level of hedging.

Speaker #5: Okay, so you can see yourself going up to 100% again, potentially.

Michael Armstrong: Okay. So you could see yourself going up to 100% again, potentially?

Speaker #3: Yeah, we have the ability. It really comes down to the market and the economics of the hedge. We're trying to, obviously, keep a stable interest line as much as we can.

David Salmon: Yeah, we have the ability. It really comes down to the market and the economics of the hedge. We are trying to obviously keep a stable interest line as much as we can. That is what is reflected. Obviously, we are fully hedged in FY26. We are very highly hedged in FY27. We have got reasonable hedging levels in the years after that as well. We have got an eye on the future. We will put on as much hedging as we think makes sense in the context of the broader interest rate environment and trying to protect the earnings line from that volatility.

David Salmon: Yeah, we have the ability. It really comes down to the market and the economics of the hedge. We are trying to obviously keep a stable interest line as much as we can. That is what is reflected. Obviously, we are fully hedged in FY 2026. We are very highly hedged in FY 2027. We have got reasonable hedging levels in the years after that as well. We have got an eye on the future. We will put on as much hedging as we think makes sense in the context of the broader interest rate environment and trying to protect the earnings line from that volatility.

Speaker #3: And that's why, obviously, we're fully hedged in FY26. We're very highly hedged in FY27, and we've got reasonable hedging levels in the years after that as well.

Speaker #3: But we've got an eye on the future. We will put on as much hedging as we think makes sense in the context of the broader interest rate environment and in trying to protect the earnings line from that volatility.

Speaker #5: Okay, thank you. That's all from me.

Michael Armstrong: Okay. Thank you. That is all from me.

Speaker #1: Thank you. Your next question comes from Ben Brayshaw with Barrenjoey. Please go ahead.

Operator 2: Thank you. Your next question comes from Ben Brayshaw with Barrenjoey. Please go ahead.

Operator: Thank you. Your next question comes from Ben Brayshaw with Barrenjoey. Please go ahead.

Speaker #6: Oh, hi Greg. Thanks for the presentation. I was just wondering if you could comment on the capital deployment indicative spend that you're budgeting for FY27.

Ben Brayshaw: Oh, hi, Greg. Thanks for the presentation. I was just wondering if you could comment on the capital deployment indicative spend that you are budgeting for FY27.

Speaker #3: Yeah, hey Ben. So, in terms of non-AFFO capital and projects, we spent around $60 million in ’26, and I’d anticipate as we build up our program, it’ll be a similar amount at F27.

Greg Chubb: Yeah. Hey, Ben. So in terms of non-AFFO capital and projects, we spent around AUD 60 million in 2026, and I'd anticipate as we build up our program, it'll be a similar amount at FY27, and likely to get a little larger as we move into FY28. We've got a significant number of our supermarkets with averaging base rent reviews in FY28, so aligning our capital into that is a real focus.

Greg Chubb: Yeah. Hey, Ben. So in terms of non-AFFO capital and projects, we spent around AUD 60 million in 2026, and I'd anticipate as we build up our program, it'll be a similar amount at FY27, and likely to get a little larger as we move into FY 2028. We've got a significant number of our supermarkets with averaging base rent reviews in FY 2028, so aligning our capital into that is a real focus.

Speaker #3: And likely to get a little larger as we move into FY28. We've got a significant number of our supermarkets with average base rent reviews in FY28.

Speaker #3: So aligning our capital into that is a real focus.

Speaker #6: And just on specialty store sales growth in the second half, it does appear to have slowed. Could you just comment on current trading conditions and what you're seeing in the months of July and August, if that's available?

Ben Brayshaw: And just on specialty store sales growth in the H2,

Ben Brayshaw: And just on specialty store sales growth in the H2, it does appear to have slowed.

Ben Brayshaw: it does appear to have slowed.

Greg Chubb: Yeah.

Ben Brayshaw: Could you just comment on current trading conditions and what you're seeing in the months of July and August, if that's available?

Speaker #3: Yeah, so we've only got access to our majors' sales for July. Supermarkets ticked up stronger again in July, which I think says a lot about the market more broadly.

Greg Chubb: Yeah. We've only got access to our majors sales for July. Supermarkets ticked up and are stronger again in July, which I think says a lot about the market more broadly. DDS sales are slightly positive against the prior period for discount department stores. Specs we don't have visibility to, but it's evident in the numbers that we've presented today that sales have gone backwards from the H1 to the H2, and particularly in Q4 for specs and discount department stores. I think that's got a lot to do with obviously the global gyrations and macro conditions of what was going on around the world in the Q4 of the last financial year. We'll keep a close eye on sales. Just to put it into perspective, 70% of our sales come from supermarkets. About 15% of our sales come from specs.

Speaker #3: DDS sales are slightly positive against the prior period for discount department stores. And specs, we don't have visibility to, but it's evident in the numbers that we've presented today that sales have gone backwards from the first half to the second half.

Speaker #3: And particularly in Q4 for specs and discount department stores. I think that's got a lot to do with, obviously, the global durations and macro conditions of what was going on around the world in the fourth quarter of the last financial year.

Speaker #3: So we'll keep a close eye on sales. But just to put it into perspective, 70% of our sales come from supermarkets. About 15% of our sales come from SPARs.

Speaker #3: So, that is something we'll keep a very close eye on.

Greg Chubb: That is something we'll keep a very close eye on.

Speaker #6: And just on the decline, presumably you're referencing specialty sales in the second half.

Ben Brayshaw: And just on the decline in the, presumably you're referencing specialty sales in the H2.

Speaker #3: Yes.

Speaker #6: Are you able to just unpack which categories you're seeing the most change in?

Greg Chubb: Yes.

Ben Brayshaw: You able to just unpack which categories you're seeing most change?

Speaker #3: Yes, mostly in the discretionary categories, which we've got fairly limited exposure to, so that's probably the most impacted. And food, which is about 60% of our specialty sales, is fairly flat.

Greg Chubb: Yes, mostly in the discretionary categories, which we have a fairly limited exposure to. So that is probably the most impacted. Food, which is about 60% of our specialty sales, is fairly flat. So it resembles pretty much the growth rate that we have put forward for the whole of the spec portfolio at about 2.5%.

Speaker #3: So it resembles pretty much the growth rate that we've put forward for the whole of the spec portfolio at about 2.5%.

Speaker #6: Yeah, great. Thanks, Greg.

Ben Brayshaw: Yeah. Great. Thanks, Greg.

Speaker #3: Thanks, Ben.

Greg Chubb: Thanks, Ben.

Speaker #1: Thank you. Your next question comes from Callum Brahma with Macquarie. Please go ahead.

Operator 2: Thank you. Your next question comes from Callum Bramah with Macquarie. Please go ahead.

Operator: Thank you. Your next question comes from Callum Bramah with Macquarie. Please go ahead.

Speaker #5: Morning. Thanks for the presentation. A lot of the questions were covered, but maybe just to clarify a couple. One, just around funding and how you're thinking about it.

Callum Bramah: Morning. Thanks for the presentation. A lot of the questions covered, but maybe just to clarify a couple. One just around maybe funding and how you are thinking about it. Sorry, Greg. So on development spend, if it is increasing at the sort of 60, is the idea that you are selling those assets, the divested, to sort of fund that over time? My second question just be around margins. So I think, David, you referred to the weighted average cost of debt ticking up only a little bit. Your margin, I think in this year was down at 1.5. That did not include, I guess, the impact of the AUD 600 million at 1.22. Can you just clarify maybe the margin you are assuming into 2027? Thank you.

Speaker #5: Sorry, Greg. So on development spend, if it's increasing at the sort of 60s, is the idea that you're selling those assets—divesting—to sort of fund that over time?

Speaker #5: And my second question is just around margins. So, I think, David, you referred to the weighted average cost of debt ticking up only a little bit. Your margin, I think, in this year was down at 1.5.

Speaker #5: Does that not include, I guess, the impact of the $600 million at 1.22? Can you just clarify, maybe, the margin you're assuming into '27?

Speaker #5: Thank you.

Speaker #6: David, do you want to respond to the second question first?

Greg Chubb: David, do you want to talk to the second question, please?

Speaker #3: Yeah, just to answer your margin question, Callum. Yeah, yeah, look, obviously the 1.5% margin that I talked about for FY26, that was a weighted average for the whole year.

David Salmon: Yeah. Just to answer your margin question, Callum. Yeah, look, obviously the 1.5% margin that I talked about for FY26, that was a weighted average for the whole year. There were refinancing initiatives that we have done more recently that will flow through into the FY27 position. We have also got a bit more refinancing to do. We had a bridge facility in place for our USPP repurchase, which will term that out into some longer debt. I think on a weighted average basis, you will be looking at that sort of 1.4% or slightly better, coming through on the FY27 guidance. Callum, just on the funding of the projects. Yes, our aim is to be funding those projects through divestments of the assets that I have mentioned, and they are predominantly those smaller sub-AUD 30 million assets in those smaller markets.

David Salmon: Yeah. Just to answer your margin question, Callum. Yeah, look, obviously the 1.5% margin that I talked about for FY 2026, that was a weighted average for the whole year. There were refinancing initiatives that we have done more recently that will flow through into the FY 2027 position. We have also got a bit more refinancing to do. We had a bridge facility in place for our USPP repurchase, which will term that out into some longer debt. I think on a weighted average basis, you will be looking at that sort of 1.4% or slightly better, coming through on the FY 2027 guidance. Callum, just on the funding of the projects. Yes, our aim is to be funding those projects through divestments of the assets that I have mentioned, and they are predominantly those smaller sub-AUD 30 million assets in those smaller markets.

Speaker #3: And there were refinancing initiatives that we'd done—have we done, we've done more recently—that will flow through into the FY27 position. We've also got a bit more refinancing to do.

Speaker #3: We had a bridge facility in place for our USPP repurchase, which will term that out into some longer debt. I think, on a weighted average basis, you'll be looking at that sort of 1.4%, or slightly better, coming through on the FY27 guidance.

Speaker #4: And Callum, just on the funding of the projects—yes, our aim is to be funding those projects through divestments of the assets that I've mentioned, and they're predominantly those smaller, sub-$30 million assets in those smaller markets.

Speaker #5: Thanks. And just maybe, just to clarify—so, expectations we should have around the buyback?

Callum Bramah: And just maybe just to clarify, so expectations we should have around the buyback?

Speaker #3: At the moment, we're prioritizing spend on reinvesting into our portfolio. So we haven't bought back units for a good number of months. We did buy stock at the start of the Middle Eastern conflict in early March, when we had a dip in our unit price.

David Salmon: At the moment, we are prioritizing the spend on reinvesting into our portfolio. We haven't bought back units for a good number of months. We did buy stock at the start of the Middle Eastern conflict in early March when we had a dip in our unit price. But our priority is to get on with these capital projects across the portfolio, and we see good returns and good value in those investments.

Speaker #3: But our priority is to get on with these capital projects across the portfolio, and we see good returns and good value in those investments.

Callum Bramah: All right. Thanks so much.

Speaker #3: Thank you.

David Salmon: Thank you.

Speaker #1: Thank you. Your next question comes from Thomas Ryan with Green Street. Please go ahead.

Operator 2: Thank you. Your next question comes from Thomas Ryan with Green Street. Please go ahead.

Operator: Thank you. Your next question comes from Thomas Ryan with Green Street. Please go ahead.

Speaker #7: Morning, team. Thanks for your time and the presentation. Just a question on capital allocation. Greg, your comments around recycling capital—just on the numbers you've provided.

Thomas Ryan: Morning, team. Thanks for your time and the presentation. Just a question on capital allocation. Greg, your comments around recycling capital. Just on the numbers you've provided, I just wanted to get your thoughts on the spread between those assets you've acquired versus those you've divested, that 50 BP sort of spread and how that sort of compares to the cost of capital.

Speaker #7: I just wanted to get your thoughts on the spread between those assets you've acquired versus those you've divested. That 60 basis point sort of spread, and how that compares to the cost of capital.

Speaker #3: Yeah, I mean, that's our focus—to be divesting of assets that are tight yielders. But it's not just the yield; it's the growth attributes.

Greg Chubb: Yeah, I mean, that's our focus is to be divesting of assets that are tight yielders, but not just the yield, it's the growth attributes. So looking at the total return attributes of the assets that we're looking to trade and the investments that we're looking to make. So there's a positive spread both at the yield and more importantly, the total return attributes of those assets. So some of the assets that we're selling have got a total return very similar to the yield, whereas the projects that we're investing in have got good growth prospects and that's the whole intent of that work stream.

Speaker #3: So, looking at the total return attributes of the assets that we're looking to trade and the investments that we're looking to make, there's a positive spread both at the yield and, more importantly, the total return attributes of those assets.

Speaker #3: So, some of the assets that we're selling have got a total return very similar to the yield, whereas the projects that we're investing in have good growth prospects, and that's the whole intent of that workstream.

Speaker #7: Appreciate that. Just to clarify, if you stripped out the development, the income you generate off the $66.5 million at 6.4%—I'm just trying to work out what the net income gain of that is, taking out the assets you've sold.

Greg Chubb: Appreciate that. If you stripped out the development, just so it's clear, the income you would generate off the AUD 66.5 million at 6.4, I'm just trying to work out with the net income gain of that, taking out the assets you've sold. If you then apply your leverage, or call it four and a half all-in equity costs and transaction costs, can you just confirm for us that that is actually accretive?

Speaker #7: If you then apply your leverage—call it 4.5, all-in equity costs and transaction costs—can you just confirm for us that that is actually accretive?

Speaker #3: Yeah. It is, yes.

Speaker #7: Excluding developments.

Greg Chubb: Yeah.

Greg Chubb: Excluding developments.

Thomas Ryan: Excluding developments.

Greg Chubb: It is, yes.

Speaker #7: Okay, thank you. And just one last question on turnover rent. If you could provide some color on that as well, and any in terms of MAT growth geographically across the country—if there are any pockets that are underperforming or outperforming.

Thomas Ryan: Okay, thank you. Just one last question on turnover rent, if you could provide some color on that as well, in terms of MAT growth geographically across the country, if there's any pockets that are underperforming and outperforming?

Speaker #3: Yeah, I mean, from a supermarket point of view, it's fairly generic across the country. I will say that Queensland looks a bit stronger than other states.

Greg Chubb: Yeah, I mean, from a supermarket point of view, it's fairly generic across the country. I will say that Queensland looks a bit stronger than other states, and Western Australia's also pretty strong. Beyond that, our ability to continue to grow turnover rent when we've got our supermarkets growing at 4.1% for FY26 and nearly 60% of them in turnover rent, gives us good visibility to growth. As I touched on earlier in a previous question, we've got about half of our supermarkets that are in turnover rent currently coming up for their average base rent reviews over the next two years, with most of them in FY28. So a real focus for us to drive sales with our major tenant partners over that period so we can capture it into the averaging base rent reviews over the next two years.

Greg Chubb: Yeah, I mean, from a supermarket point of view, it's fairly generic across the country. I will say that Queensland looks a bit stronger than other states, and Western Australia's also pretty strong. Beyond that, our ability to continue to grow turnover rent when we've got our supermarkets growing at 4.1% for FY26 and nearly 60% of them in turnover rent, gives us good visibility to growth. As I touched on earlier in a previous question, we've got about half of our supermarkets that are in turnover rent currently coming up for their average base rent reviews over the next two years, with most of them in FY 2028. So, a real focus for us to drive sales with our major tenant partners over that period so we can capture it into the averaging base rent reviews over the next two years.

Speaker #3: And Western Australia is also pretty strong. But beyond that, our ability to continue to grow turnover rent, when we've got our supermarkets growing at 4.1% for FY26 and nearly 60% of them in turnover rent, gives us good visibility to growth.

Speaker #3: As I touched on earlier in a previous question, we have about half of our supermarkets that are on turnover rent currently coming up for their average base rent reviews over the next two years, with most of them in FY28.

Speaker #3: So a real focus for us is to drive sales with our major tenant partners over that period so we can capture it into the averaging base rent reviews over the next two years.

Speaker #7: And Greg, just on turnover rent, can you quantify what that was as a proportion of either FFO or AFFO?

Thomas Ryan: Greg, just on turnover rent, can you just quantify what that was as a proportion of either FFO or AFFO?

Speaker #3: Yeah, it's not a big number, but it's an important number. It's about 7 million, there or thereabouts.

Greg Chubb: Yeah, it's not a big number, but it's an important number. It's about AUD 7 million, there or thereabouts.

Speaker #7: Okay. Okay, thank you.

Thomas Ryan: Yeah. Okay. Thank you.

Speaker #1: Thank you. There are no further questions at this time. I'll now hand back to Mr. Chubb for closing remarks.

Operator 2: Thank you. There are no further questions at this time. I will now hand back to Mr. Chubb for closing remarks.

Operator: Thank you. There are no further questions at this time. I will now hand back to Mr. Chubb for closing remarks.

Speaker #3: Great. Thank you, everybody, for joining us this morning. We appreciate your attendance and look forward to catching up with you over the next week or so as we have our one-on-ones. Wishing you all the best for today.

Greg Chubb: Great. Thank you everybody for joining us this morning. We appreciate your attendance and look forward to catching up with you over the next week or so as we have our one-on-ones. Wishing you all the best for today. Thank you.

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