1H 2022 Financial Results Briefing

operationally portfolio occupancy improve to 94% leases that were due for Renewal during the first half achieve 9.4% positive rental revision.

Total amount available for distribution increase in tandem with the increase in NPI. Or in with the higher number of applicable units dpu increased 2.8% to 7.87 cents. When we compare first half training 22 versus the second half of 2021 gross revenue. Increase 4.1% to 666.5 million dollars and this is mainly driven by the two Logistics portfolio in Kansas and Chicago in the US which were quiet in November 2021 and June 2022, respectively.

NPI is flat at 476.9 million dollars due to higher net utilities expense from the properties in Singapore. Di increased 3.7% mainly due to the absence of performance fee. Dpu, increase in tandem with di at 3.6% to 7.873 cents. for the period of Bus January 2022 to the day of June a dpu of 7.873 cents will be made you will be receiving the dividends on the 5th of September.

Okay, moving on to investments in the first half of 2022. We completed several Acquisitions Redevelopment and aeis worth a total of 272.9 million dollars. Under Acquisitions all the three Acquisitions we made in Australia and in the US our Logistics properties and all three a 100% occupied. npiu postcards for the three Acquisitions range 5.1% to 5.8% It is our strategy to steal our portfolio towards the growth sectors and the logistics of segment now accounts for a sizable 25% of our AUM.

Under Redevelopment. This is one of our Redevelopment success. ux after repositioning into a high specifications industrial property UBIX is highly sought after by a wide range of companies given its high quality space and close proximity to the UB MRT station within six months from completion occupancy Rose to 51% So after the repositioning we have also signed Penance in at higher ranks of above three dollars and fifty cents per square foot per month and the least 10 years are long, you know three years five years.

So you have since this slide so I skipped the slides. So moving on to Capital Management. Gearing is healthy at 36.7% And on the least expiry profile we have a total deck of 6.4 billion dollars. And that maturity days are very well spread out as you can see in this chart. In the first half we extended the majority to 3.9 years one quarter go it was 3.5 years and this is after the insurance of a seven year Sing dollar Bond and also coming out with some five year six years AUD loans.

During the period okay, and today green financing totals 1.5 billion dollars accounting for about 23% of our total borrowings. the financial metrics Are at very healthy levels? Five exceeding the required minimum level set by Bank Covenants. first half waited average interest costs remain low at about 2.1% A3 Moody's rating is maintained. So this provides us with strong financial flexibility and also strong access to Capital so we have here the sensitivity table on dpu.

For the variable dead portion that we have So currently 80% of our borrowings is fixed for average term of 3.7 years. So based on that 20% proportion of variable that then you can see from this table if the rates move up by a hundred basis points, for example, then the impact on dpu would be a minus 2% So if the rate is move up by 150 basis points than the impact will be a minus 3% Okay.

So to minimize any adverse impact right from exchange rate fluctuations, we maintain this high level of natural hatch. So the portfolio level. It is 75% So moving on to our operations. Occupancy rates for all our markets are high and above 90% Singapore is 91.9% occupied and this is a 190 basis points increase queue on Q. Australia is stable at 96.6% us is 95.3% 130 basis points higher.

UK Europe is 97.7% And that's 100% a hundred basis points higher for all together at the portfolio level. It is a 94% occupancy. So an improvement of 140 basis points. So let's look at the countries individually. Singapore so occupancy rate here Rose to 91.9% and this is some due to the full occupancy that we achieve at one Chinese South Lane, which is a logistics property after three tenants moved in and they have signed long leases of five to ten years.

Australia highly occupied at 96.6% very stable and high. us the it is boosted by the seven fully occupied Logistics properties in Chicago, which we are quiet in June 2022. Okay. Now even if you were to strip that out, the the US portfolio occupancy was also an improvement at 94.2% Okay. UK and Europe the higher occupancy is due mainly to the leasing up of a logistics property in UK, and the tenant has signed up for a 10 year period Case also some new demand in the first half.

We saw tenants from a white variety of Industry particularly in the engineering Logistics and electronics in the streets. rental reversions So in took you the average rental reversion achieved was 13.2% So as you can see in the First Column that is boxed up in Singapore. We were able to achieve higher ranks for all the classes Australia 15.2% for Logistics properties in us a positive 15.3% for Portland business part and in UK 11.7% positive rental reversion for a data center in UK Well, we'll stay by at three point seven years.

At a portfolio level we have. Another 10.2% to work on for the rest of the year. in Singapore about 9.5% or you know of the ground grass Revenue will be due for Renewal and this works out to be about 68 million dollars. Okay, Australia 5.7% or about seven million dollars worth many of them are actually renewing and given the record low vacancy rate. The team is reasonably confident to feel them up. Even if they are not renew.

This Is Us 18.9% Due for renewal for the remaining of 2022. There are 20 leases there. In the UK 7.2% of rental income or about eight million dollars will be due for renewal. and there are three leases here and Generally, the renewal rate is looking good. So on ongoing projects We are working on about 566 million dollars worth of projects.

Yeah, undergoing development or Redevelopment for asset positioning or enhancements. To improve the returns of the existing portfolio. So this comprises of 161 million in development in Australia 300 million of Redevelopment in Singapore. So this quarter we have a new addition. This is the alpha located in Singapore Science Park to so we'll be spending. About 15.5 million dollars to refurbish the main lobby the live lobbies common carried us to enhance the overall tenant experience.

There will be new meeting rooms working parts and a nice and big food Hall with service counters to meet the needs of the tenants. So on Market Outlook as you can see in the first half we have achieved strong results across our markets. While we have delivered dpu growth consecutively for the past three periods since first half 2021 and prospects for our business remain healthy. We are closely monitoring the ongoing uncertainty in the global economy.

So with that I end my presentation. Thank you. Thank you paying for the presentation now. Let's start with the Q&A session. Before we begin let me introduce the panelists today. First. We have Mr. William Tay. I'll see you. To his right? We have this school CFO. And to her right Mr. James go head of portfolio management. And last but not least Michelle keeping head of capital markets and investor relations.

For the participants here joining us today, please raise your hands and one of my colleagues will pass your microphone to ask you a question. Please do state your name and your organization before asking the question for those of us for those participants showing us virtually, please use the Q&A function to submit your questions. So I see

Marvin in terms of occupancy. You probably have seen the numbers. They're all stable or positive. You've noted about the nine in industria and data center. We actually the first time we crossed the night. So it's 90.9% right now and overall in Singapore. As you mentioned heating 90 is above is not easy. We have experience that I mean since two quarters ago we hit.

Passing the night. And we are sustaining this. given the fact as you mentioned There are challenges in certain industries whether the tech are hiring freeze hiring or any changes in their business plan, but the tech are not driving the demand here. The new demands are mainly from bio R&D engineering electronics, and of course Logistics the bio continued to give us very good rental version and demand for space. I think that's driving the occupancy for Singapore.

Rent a reversion we have about guidance to meet single given a fact that this quarter came in the double digit but moving forward. You probably also will ask why then single low I mean meet single digit. I think this is one exceptional quarter. We have capitalized very much on this and push rental up as high as possible to watch acceptable and but given the fact that actually entire Market has moved up. So they're so helpful for us from the point of inquiries.

You probably realize in terms of execution when we give a rental to our tenants. They look at numbers you look at it this increase. And all our competitors are all issuing the same rental proposal to the tenants. So naturally there will be a lot more inquiries in the market. Which means that? Any of our property can be a potential for the relocation. So I think generally the market has moved up inquiries has strengthened and we also seen that these companies when there's a good business in their in their underlying business. They do expand they can accept this rental higher renters.

in fact, this is probably one of the first quarter that only Logistics only Logistics. We had 2% our leases came in as negative. All other asset classes in Singapore and overseas are all positive rental reversion. so overseas as well as you have seen previously is all double digit, but our guidance towards meat is because I think a moving forward other than these quarter moving forward. We still be expecting the three to five percent rental reversion in Singapore, which is quite typical and given the fact that economy is still growing. I think we should be able to hit account numbers.

Maybe I'll just ask James is anything to add before I talk to answer your question or acquisition? Thanks with them. Just just to add if you look at Photon quarter how we improve from March to June. There are two main factors, which were already highlighted in. The slides. One is one Chinese South Lane. That's a warehouse that's almost close to a quarter of a million square feet.

So that moved our numbers quite significantly almost like 80 bits. I would say to our portfolio our Singapore occupancy. I think second is ubiques. So we are seeing very good traction as keeping and mentioned earlier is a Redevelopment and we have since move our occupancy to just about half just like the over half and we're still seeing very good traction and pipeline for the remaining space that we have. So we expect that to help to post our occupancy going forward the last part I'll just like to add is like if you look at our wheel we have got another about 10% of leases up for renewal in the second half in Singapore alone and those listeners who are trying as far as we can to renew them to try and support the occupancy that we currently have right now.

Yeah, just to add I mean ubiques when it when we turn online. We hear about 18% the first quarter and we actually updated that we have about 45% pre-committed waiting to be signed. In fact now we have hit about 51, which is actually exceeded our expectation rental wise also exceed our expectation under underwriting. So the point about acquisition. Yes, I don't think the cab rate has expanded substantially in the market right now deals are still being done in a very small proportion done.

We've perhaps very minor changes to the cap rates. The investment climate now will probably be holding up. But beaders will probably have thinned out probably take longer to close. So these are what we are experiencing in the market right now. but for Ascenters read we are still very mindful of what we are acquiring. We want to focus on Tech and lock which essentially the thematics around the growth industries and you have heard me mention about these are the specific countries has different drivers and these are asset classes that we like for each of these countries that we identified and invested.

We are we are prepared to do deals as I previously mentioned. We continue to be very active on investment front but given the climate we are not in a hurry to do deals. Probably small chunks small bikes as well. We have seen in our Chicago due this will probably be what will be doing. Primary reason is that when it's a portfolio deal a huge sale billion dollars deal.

It takes very long time to do due diligence. That's one and then we've dead kind of timeline required to do due diligence interest rate will never be able to lock in at a point of pricing. and Expectation for portfolio premium will still be there by sellers. So you will see that a lot more deals actually broken up right now in the market in the past maybe a big portfolio, but they may come out in a small town in order to move the access they want to divest.

So we are still in the market looking for, you know organic growth, but likely to be more smaller chance. Nicholas yeah, just just a couple of questions from me want to ask on the utilities side for Singapore any details in terms of how much it increased with the timing of when it was renewed and and some sense, you know for the Singapore portfolio. What portion of the expenses is the utilities?

Titus yeah, sorry, go ahead. Yeah, and then the second one is just cap rates have stayed quite stable. So any thoughts on more so on the divestment side how Keen would you be to divest any sort of targets or countries in that sense? share How edging higher to utility costs across your markets and also, can you give the dollar amount of utility increase in first half and are you planning to raise service charges?

Utilities cost. So you have some questions about when you was contracted. It was contracted renewed for this year in October to December last year. The last time I mentioned to you that we have locked in this the rates for this year. So we have locking rates until December this this year. And we are in the process of getting the gender up for the next two years.

For utilities is within the range that we have guided 2022 versus 21. It was to be between 50 to 70% higher. And first half is still within that range. In regards to percentage based on 2021 numbers Opex is about 20 plus utilities for 20% or packs. But 8% is related to landlords consumption tenants consumption is actually passed through And in this half we've seen that.

Possibly because of reopening consumption also has gone up so overall total utilities about 23% of Opex 6% relating to land knots cost. So in terms of utilities, I think we are managing very well. In terms of increase even the fact that we only experience in 50 or 70% increase for year to year. in maybe in relation to that service charge actually we have Uh informal tenants that we reach service charge effective October this year.

So that will help to offset the increase on the landlord side. On Cadbury X is mistable in terms of dive investment. We are not in a hurry to divest given the fact that we experiencing very strong rank growth in all our classes whether in Singapore or Australia. UK Even our data center that came for Renewal has actually caught up with a double digit rental reversion.

We view that the overall portfolio is still good. They are very good location. So every year we we do wholesale analysis to determine what we want to do in terms of the asset plan for the asset individual asset. There may be some opportunities for the investment, but you won't be a big way. In fact, we have reverse inquiry people giving us some interest for Stuff properties. So we'll be evaluating those investment opportunities.

Yeah, Jonathan. Yeah. Yeah. Jonathan from ubk here two question.

And when we looked at Logistics, we examine the countries that will benefit from the I mean the growth of this Logistics sector. So these are Australia UK Western Europe, of course with us that we have gone in recently. There are a few things that we looked at for Logistics. First of all, we are not in the market to look at big boxes. If you look at our asset classes they are they are small to meet boxes Last Mile location. Where is Insignia Melbourne?

UK that Midlands you look at our us we focus on Last Mile like cancer City and Chicago. They are near the main population base. Supplies limited which means that tenants will be sticky. So this is our thesis around Logistics, so we are not Worried when for example e-commerce over expanded because energy even e-commerce required Last Mile footprint to bring their Cargoes and their goods to the destination. They want to go to if you talk about hit wind, I think what it has caused currently.

Is just in case mentality instead of just in time. During covid. I think you have seen that in terms of warehouse space. They're all short-term requirements. But a lot has turned long-term. And a lot more demand has come in because of just in case mentality. This is what we see across all the countries that we are in fact for Logistics. We are pushing towards almost fully occupied.

In Singapore, we only left with I mean the occupancy numbers mean. Advocacy numbers are mainly ancillary office within a warehouse block. It is Warehouse is almost pushing for occupancy for all our countries. I think we we still like this given the fact that it actually the second reason is to build resilience diversification in our portfolio. If you lower construct we are still about 50% exposed to Business Park, which is a growth sector by itself for Life Science and Technology, but we still like the other half which is logistics industrial and data center. So this will actually build resilience to entire portfolio.

So you mentioned about which country? We will stay focused to the countries that we have invested right now. Okay. Alpha I think let James mentioned explained Thanks, Jonathan. Um on Alpha is purely AEI. It's not a Redevelopment. There is a additional Untitled ratio where aware of that and potentially there is sufficient space within the existing land plot for us to build like an Annex Building. That's not something that we're gonna activate it will Probably be more of a built to suit if we do find a single tenant that has certain space requirements that would meet the building parameters there. Then that's something that we would activate.

So the building plans are there. We have some plans to regards to how we can leverage on the higher power ratio to view and next block. In fact in terms of business development side. We have engaging customers. We have a pool of our assets where we can redevelop. Or construct to their specs, which if you have seen that we have done that for Schneider Electric where we actually construct according to their specs but based on a brown field location.

So we have a pool of assets that we believe is beneficial for the new new economy new requirements whether is it higher specs. High specs building or even for this part space so we are we are approaching tenants with a variety of options. Okay. Thanks John, David. Hi, I'm William. I have two questions. The first one is.

With regard to costs I didn't take a look at your results because I don't have didn't have time. But I assume that the Singapore NPI margin. May have come down in the first half because of the rising expenses. For the second half of the year. Do you think the margin will be similar or do you think it could improve or if you think it might worsen? I'm not going to hold it to it. But if you have a strong view it would be useful.

for the second half the margin for this half. Yeah, that's mainly due to Utilities. In fact, the margins has stable stay stable for the rest of our countries. They were in and asset classes. You compare? next half to two half Chances, are you impacted by utilities? Right. The challenge will be how can we offset that with better occupancy and renter and we still continue to work on our Top Line front as you have seen in this water or this half years result while utilities has gone up. We are pushing towards better occupancy better reversioned.

And we are trying to get in higher Topline so that this can be offset. Not to mention as well that we are increasing our service charge in the third quarter fourth quarter of this year, so that will help you. Okay. Got it. Okay. The second question is with regard to the yeah, I guess the Singapore operations if you ignore the news flow and what's happening reported in the media and the markets and just look at your underlying portfolio.

Is there any evidence that we're entering a recession? I mean does the outlook look like? It's It's still positive. But but below average average or above average. I just want to feel just forget about like, you know, the news and everything, but just Is there any more right in the reported? Haha. Yeah. Maybe James. Can I will I will I will give While we are seeing right now overall.

I think they're always be challenges uncertainty. I mean, there's always I mean you see can ignore but the fact remains that for example, you wrote in the midst of for Ukraine war there will always be worry and concerns. But in terms of logistics take up. Data center renewal you continues as per normal. it possibly because of the asset class there we are in so it may not be very acute for us to see whether there is entering into a recession.

I suppose we are still in early stages. We are just came from pandemic this year. We just really open up businesses are back on track. I would say possibly from The number six for itself, right? It doesn't seem to be recession. But what is Beyond this numbers on inquiry front every one inquiry that we have for Logistics and high Business Park.

We have three or more inquiries for high specs. right Where are they coming from chances are? new demand additional expansion I'll retention is continued the same Trend like 50 60% to the high of certain sector at 90% So if you ask at this current results plus the inquiries for our follow-up next quarter or next half there seems to be a growth and there seems to be a strong interest to expand.

But we do want to note that it's not across all sectors. Right, we still see sectors. For example. I was asking James. For example, we lost an oil. company But they Consolidated it's not as low the downsized and disappear. I was worried that they because all business is so good now they went to CBD office, but they were still very prudent. They Consolidated right? So even though it's expansion of certain industries, but I think businesses are still very prudent.

If there's a fundamental growth, I think they will take up more space and you have seen in our numbers in terms of occupancy occupancies are real numbers to see whether they I mean there will be companies with downsize. They were companies were expand. I don't know whether that helps. I'm not economy. Yeah, James anything today? Yeah, David.

I think that two points to add is if you just look at the occupancy Trend particularly for Singapore as well as the rental reversion. I think those Trends are really positive and it doesn't give us any indication right now that there's gonna be like any slowdown in the economy. At least not then we are seeing it right now.

I think they'll have a question here. Hi. Hi William. I'm thankful for presentation. They'll hear from DBS. Just two quick questions from me firstly for your remaining expiries in the US for this year. I noted that about half is a single LED buildings. So in terms of the kind of buildings the kind of renewals are we expecting any major paybacks or even incentives second question is you mentioned that deals going forward with the smallish in size. You should not expect, you know, the kind of billion dollar portfolio kind of acquisition.

So does that mean that you are comfortable letting your gearing creep up towards the 40% kind of level or how would this smallish Acquisitions be funded? Yeah, thank you. Maybe I deal with your second question like gem sticker. your us questioned I think leverage wise. We are comfortable. But when it comes down to certain deals that requires us to the uefr we will not shy away from from it.

And all day we still want to have many other metrics that we are watching. Where is it affecting our A3 rating to movie five? My Moody's I think these are many other factors that we were looked at. so you will still be contextual if I would say depending on the deal and depending on the market at the point.

s Yeah, in terms of the US expiry if you look at that singer tendon expiries is a mix of business based as well as Logistics that we have. We're currently engaging all of our tenants, but I think that most of you would have been aware that overall because of the covid situation from home hybrid working Arrangements has become the norm and that many companies are actually reviewing whether or not they need as much space as they currently occupy. So this is not unique to us and it's something that we're still trying to work in terms of getting our tenants to renew so fair to say that there will be some challenges in terms of renewing 100% of those leases as they come up for expiring So we'll see the logistics for us continue to give us very strong confidence those that is single and Logistics. I think it probably likely to be giving us the high retention.

Or 70 80% type the typical multi-tenantor business park building. It is the same retention in Singapore 50 60% that probably will apply for our next. Things thank you. Next we have you can.

Thanks. attention Hi, this is tension from Coleman. Just one question on acquisition. If you look at the year 2D piece, right? How comfortable are you to achieve one balloon acquisition for this year? And where do you see more attractive opportunities at this point? Mention this very good question because I don't think we can hit a villain. It's already half a year.

We left with another half and with small bikes for a few deals that we are working on. Unlikely Frankly Speaking unlikely, but not to say they I won't be able to surprise you. So hopefully we still can get in some. deals in just I'll talk about cabbage moving I think for the first half of the year. The challenge is that there is no real expansion in the meaningful way to cap rate. It could be 10 beeps here 20 beeps there. But all this could be attributed to location to the size of portfolio that's transacted in the market.

First quarter of the Year, perhaps they are deals that was pretty negotiated discuss in 2021. So they were closed later part. Just dial Chicago deal, you know, we close in June, but we actually started much earlier. so there might be opportunities as the second half comes perhaps there may be some sellers of prepared to be more reasonable and expectations and then we can see a possibly a meeting or mice for larger portfolio.

There will be able to push for larger acquisition. But to be honest what we have right now are smaller chunks. Which is why your question or whether we would just leverage on our debt to acquire which makes sense. It is small bites. I think if we can hold up we will actually be doing that. But that could be divestable opportunity. There's a need to we can do efr so these are still depending on the deal size and the deal that we are looking at.

in terms of countries Honestly, we are not looking anything from Australia. They are deals coming out there but simply because the cabbage is still very very sharp. Even fund true that we have been acquiring in the past two years. Development because of the very we could actually go into Fun through to get a better you on course, but he has also been very very sharp in Australia.

So I'll see the rest of the three places Singapore you Europe and us where we are seeing a fortunately. Hey, hi William. Just a few questions. Just back to Acquisitions. Right. Can you comment on your sponsor pipeline particularly assets which are help on the crd or things like your due to suit? For shorty the nighthizing BC and also Ascent are they ready? I mean, I think back in those days. The reason why they were in CLD was because of not yet stabilized right?

But at this stage do you think they already thanks. We are always keen on those assets. I know that unfortunately, you can't ask CLD those questions now. She's not their private, right? Yeah. I think Ascent I mean generally looked at the entire market in terms of occupancy and Rental Trend. You apply the same to clds SS so Ascent.

The shopee building is fully led to shopee on long term basis. So that wouldn't be impacted or benefit from the current higher demand, but you would expect the same statistics or metrics to apply to ascent. So I believe that they are yeah, they are stabilized and ready but we will continue to have this conversation with them to try to unlock them.

Yeah, the second question is on the occupancy for a few of your buildings in CVP. Right? I'm getting comment on why they have fallen are killed on a half and half basis and where are this tenants from referring to buildings like your handsaw point three CVP this stuff as well as do you want a chunky? You change the other thing then yeah.

Okay. Thanks, Brandon. CBP I think faces similar issues structural headwinds as like the US Suburban office. I mean as you are aware CBP is where a lot of the financial institutions have their back offices. And because of the whole covid is a lot of the working from home Arrangements that are currently in place and many of this tenants as the exclusives come up for Renewal. They are reviewing their own business plans in terms of if they need as much space as they had before and what we have seen is progressively some of these financial institutions.

They started to downsize the might have Consolidated into other offices because for BCP purposes, they might have like additional offices in the past and which now they they felt that they do not need but nonetheless while we are seeing this train of declining area. Actively working to reimicry CBP by introducing new activities. There are rethinking how we can better pitch this to a wider Target segment and not just be focused on financial institutions as well.

So that's something that's currently in the works and we hope to come up with a really exciting product that would then be able to Leo and bring in a much more diverse set of tenants into that business part. But Brandon having said that cbp's occupancy overall a similar to the national average. I mean that's quite a similar trend.

and we probably won't see a I mean given the fact that hit wins and challenges that we see in terms of the work from home, but I don't think we'll be as bad as ibp I think ibp has other challenges CBP continued to have very good infrastructure and two MRT one really really the other one is coming up. It has retail. It has proper amenities.

So it's a it's definitely more attractive. I think ibp what we need to do right now. I think you have heard our plans. We are looking at Redevelopment tapping on to the new MRT station that we opening up. So it will bring new life to ibp. So CBP, I think we will go through the national the the usual process.

of some downsizing some expansion new demand coming in that could be changes in terms of Industry mix as we bring in you customers in the CVP. Just just one last one for me on your two offices in San Fran have they been have there been any approaches by the two tenants to sort of? You know put out their their space for for some Leasing and if there's any opportunity that comes along will be opening open to diverting them.

Given all these work from home Arrangements that you're you're seeing in the US. The two SF office has long wheel which is very comfortable for us. We will be able to write through this given the fact that you know, they are great a or phase new building in very good location. If you're asking yes, there is one building that has a sublease tendon right now.

It's a good company that came in. We are happy to support this as the tenant requested to sublease this space. So that is that's for that building. Unfortunately, this is under NDA. I can't tell you more, but I think you have read them in the Press. We continue to want to be able to engage our tenant to extend the list that they have right now.

So hopefully in time to come when they're ready to extend the leases, I think we will know whether we would do the advanced negotiation and Advance sounding out and we'll see whether there's a right time to reconsider. holding on to digest Thanks Brendan. Let's take two questions from the online participants. First question is are you seeing any cost savings from Green debt? And the second question is could you share how every achieved lower all in that cost?

Maybe I like keeping think this question. Yeah sure green dead. So we have issued some green bones loans Perpetual as well as IRS. So some of which help us save some money, but I think one key benefit would be the Outreach is much better. So the take-up is stronger, okay. How do we achieve lower costs of debt?

Okay, I think this year FY 2022 will benefit from some of these bonds that we issued in. middle of last year, which is I'm thinking of the Euro born this was a seven year born Euro 300 million at 0.75% and if today if I were to issue a seven year Euro born It would cost us about four point four percent. They're about okay. So we log in a very attractive rates some other issues. We did include two Hong Kong dollars denominated bonds.

So those were also executed earlier before this very strong run up in the interest rates so that that will help and of course the key really is to have that 80% of 6. Rate borrowings that that is important as well. So we benefited a benefited from refinancing some of the debts that we have early as we looked at the the interest Rising interest environment.

Joy go ahead.

When there's a there's a demand in the past we take on some risks towards constructing a facility for them. So as we price in a rental, it's for them. We do taking. Construction course risks but now it's come to a point that I don't think anyone would actually be prepared to take any cost risks, which is why we open for and say these are construction costs these other rental. It's because of this construction cost.

We will be in this together. Right. You have a you have a view of your of your Operation cost whether you can accept this higher rates because the overall cost has gone up. for them will be including utility costs and all this so it will be a very much open book experience for our tenants right now. So we still have some interest on the table where we continue to to work on them.

For some cases a little bit more advanced. We have rope in contractors onto the table to be able to advise us the cost in terms of construction. so there are some opportunities but to be honest while we are working on them. To be fair to them as well decision is not easy. Course has gone up utilities and all this so but at least they're still at the table to discuss.

has construction cost stabilize so escalating stabilize as in cause increase is still fluctuating. If you are comparing to pre-covid quite clearly it's not that those level at all is far away from pre-covid. We have actually gone very much much higher. But these depending on the specs. And the type of building they were constructing. Perhaps certain asset classes a little bit more stable right now.

But if it's higher and because of materials and all these you will still require a little bit more. Out of contractors of cure those materials that will affect so different contractors has different strength. So we hope to be able to iron this as we work with the design and then we try to do value engineering to bring this custom.

Thank you. Maybe we take two questions last two questions online from Derek. Yes. His first question is factoring in the increase in service charge. What would be the net increase in electricity costs from October 2022 onwards? Second question is any views on where all-in interest rates will hit to by end 2022? The service charge in to offset any increase it's not going to be huge given the fact that we landlord's course is 8% but there will be there are other costs that actually escalated. Where is it cleaning cleaning security and all the cost, but to to look at just specific to electricity costs. I think the big butt will be what Rates that we lock in for next year because this is only October to December for this year for interest service charge.

So I still looked at that 50 to 70% overall increase in terms of utility costs. Um, so on interest rate currently as a journalist that the 2.1% you saw possibly it can approach around maybe that 2.5% level. There are about this year. Yeah. That that could be a possibility. Any final questions from the floor here? moving Yeah, sorry just an interest costs. I think it is close what the new rates are for seven year Euro Bond, but maybe touch on what the rates would be for three to five year fixed for Sing dollar.

Aussie dollar British pound it's all highs jumps from early this year. Yeah. Okay. So so this race will be very company to company, right? Yeah, but the observation is that Generally, it would have gone up. 150 basis points from say beginning of the year Generally, yeah. in terms of absolute amount saying approaching 4% already or what's the Ballpark in order the three four percent. It's Yeah, it's about there. Yeah. Thanks very much.

Okay, then we're close to our so. Thank you everyone for joining joining us here today as well as our online participants. Goodbye Take Care. Thank you. Thank you. Thanks for coming. it it you are you it you are here it it it