1H 2026 Financial Results Briefing

[00:00:04] Opening & Introductions

Johanna (Moderator, Investor Relations)

The moderator welcomes attendees to the first-half 2026 results briefing, held at Capital Tower and remotely via Zoom, and notes the session is recorded. She introduces the panel: William Tay as CEO, Khoo Li Sun as CFO, James Goh for Singapore portfolio management, and Serene Ong for international portfolio management. She asks attendees to keep to two questions each and hands over to Andrea Ong for the results presentation.

[00:00:04] Johanna (Moderator, Investor Relations):

“Thank you for joining us today in person at Capital Tower and remotely via Zoom.”

[00:01:36] 1H 2026 Financial Results Presentation (Andrea Ong)

Andrea Ong (Director, Investor Relations - Presenter)

Andrea Ong presents first-half 2026 results. Distributable income rises 8.6% year on year to 359.4 million with DPU stable at 7.482 cents, occupancy at 89.1%, and rental reversion of 8.5%, driven by acquisitions and better existing-property performance offsetting prior divestments. She covers gearing, cost of debt, an equity fund raising, over 1.1 billion of acquisitions, the Kim Chuan divestment, 27 IBP progress, and revised reversion guidance.

[00:01:36] Andrea Ong (Director, Investor Relations - Presenter):

“Distributable income was higher by 8.6% year on year at 359.4 million, while the DPU remained stable at 7.482 cents.”

[00:16:21] Strategic & Operational Update (William Tay, CEO)

William Tay (Executive Director & CEO)

William Tay describes a new organisational split, with Serene Ong covering international portfolio management end to end. He reviews progress on 1.1 billion of first-half acquisitions toward a 1.8 billion target, lease-up at 27 IBP and Geneo, marketing at Summerville Logistics Centre, and the Kim Chuan Singtel exit being divested at a good premium. He flags the Shopee lease as an upcoming renewal supporting raised reversion guidance.

[00:20:56] William Tay (Executive Director & CEO):

“I think all of us expecting the Shopee building.”

[00:21:43] Q&A - Question 1: 2H Outlook, Reversions & Singtel Kim Chuan Exit (Bhavik, J.P. Morgan)

Bhavik (Analyst, J.P. Morgan), William Tay (Executive Director & CEO)

Bhavik asks how the second half is shaping up given the Singtel exit, perpetual securities and placement units, and whether occupancy can return to the low 90s by year end. William Tay says two pending acquisitions worth over 600 million will more than offset the lost Kim Chuan rental, and that occupancy should stay stable as new large buildings like 27 IBP, priced above pre-redevelopment rents, gradually lease up.

[00:21:49] Bhavik (Analyst, J.P. Morgan):

“Very resilient considering the headwinds from Singtel exit, perpetual securities (perps), and the placement units.”

[00:22:53] William Tay (Executive Director & CEO):

“Mainly it's the two acquisitions. I think that's huge, given the fact that it's about 600 over million.”

[00:27:51] Q&A - Question 2: NPI Margins by Segment & 27 IBP Lease-Up (Yew Kiam, CLSA)

Yew Kiam (Analyst, CLSA), William Tay (Executive Director & CEO), Clarence (Portfolio Management Team)

Yew Kiam asks for NPI margin guidance by segment and how quickly 27 IBP can lease up. William Tay says portfolio margin runs about 70% and electricity costs are contracted through the second quarter of next year at rates roughly 9 to 10% lower than last year. Clarence adds that 27 IBP, aided by MRT connectivity, could reach close to 50% leased by year end, with Acer next.

[00:28:00] Yew Kiam (Analyst, CLSA):

“Can you give some guidance on NPI margins by different segments?”

[00:29:04] William Tay (Executive Director & CEO):

“I think you know that we are contracted right up to end second quarter next year.”

[00:34:34] Q&A - Question 3: Geneo Leasing Momentum & Deleveraging Strategy (Dale, DBS Bank)

Dale (Analyst, DBS Bank), William Tay (Executive Director & CEO)

Dale asks why Geneo leasing has stalled and what asking rents look like against tenants in advanced negotiation, and whether the second half favours acquisitions or divestments. William Tay says fit-out for the anchor government tenant is underway, with occupancy on track for the high 90s by year end, and the near-term focus is two pending acquisitions plus 300 to 500 million of divestments to lower leverage from about 40-ish.

[00:34:41] Dale (Analyst, DBS Bank):

“Just wondering what's happening there. And you're saying that you have advanced negotiations with further tenants.”

[00:37:31] William Tay (Executive Director & CEO):

“we still look at investments, but this is probably not the key for us right now for second half.”

[00:39:31] Q&A - Question 4: US Summerville Logistics, Fundraising Pipeline & ECL Provisions (Vijay, Analyst)

Vijay (Analyst), William Tay (Executive Director & CEO), Khoo Li Sun (Chief Financial Officer)

Vijay asks about demand at the speculative Summerville Logistics Centre, a second fundraising-linked acquisition, and a rise in credit loss provisions. William Tay says leasing will probably be multi-tenanted given smaller local demand, and one planned acquisition was dropped after due diligence while Tuas Logistics proceeds. Khoo Li Sun says provisions are taken prudently against arrears exceeding deposits, concentrated in UK and Europe logistics, with collection otherwise healthy.

[00:39:38] Vijay (Analyst):

“How is the demand like? When can we see this building reaching full occupancy for it?”

[00:43:43] Khoo Li Sun (Chief Financial Officer):

“we only provide if arrears is more than our raise above security deposit.”

[00:46:03] Q&A - Question 5: 5 Toh Guan Road East & Debt Cost Hedging (Rachel Tan, Macquarie)

Rachel Tan (Analyst, Macquarie), William Tay (Executive Director & CEO)

Rachel Tan asks for an update on 5 Toh Guan Road East, whether 27 IBP rents exceed underwriting, and whether interest cost guidance is changing. William Tay says 5 Toh Guan is close to full occupancy and 27 IBP rents are above underwriting, with income flowing from around the second half. He says interest cost guidance stays around 3.5% and this year's refinancing of about 160 million dollars is done.

[00:46:07] Rachel Tan (Analyst, Macquarie):

“27 IBP, you said $5, is it above your underwriting?”

[00:48:08] William Tay (Executive Director & CEO):

“27 IBP, we believe income will start to come in towards, perhaps towards second half.”

[00:50:01] Q&A - Question 6: Divestment Premium, Capital Recycling & Cap Rates (Shen, Analyst)

Shen (Analyst), William Tay (Executive Director & CEO)

Shen asks which assets are being divested, their NPI yield, and whether lost income is offset by new acquisitions. William Tay says divestments are worked across all countries, naming Singapore and Europe as the markets he is hopeful about, and the Kim Chuan value implies about a 5% yield fully leased. He adds that redevelopment assets like 27 IBP carry a lower NPI share before rents rise with leasing.

[00:50:06] Shen (Analyst):

“Where are these assets, and what is the current NPI yield on the asset?”

[00:50:42] William Tay (Executive Director & CEO):

“we think we are hopeful in perhaps more in Singapore than Europe.”

[00:53:52] Q&A - Question 7: Japan DC Cap Rates & UK Power Infrastructure (Derek Tan, DBS Bank)

Derek Tan (Analyst, DBS Bank - Follow-up), William Tay (Executive Director & CEO)

Derek Tan asks about valuation movement for the Japan data centre amid shifts in cost of funds, and for an update on UK power infrastructure. William Tay says cap rate expansion applies to the market generally, but the Japan asset's 15-year lease limits the impact, with recent acquisitions priced around 4.3%. He says the UK project has 25 megawatts secured and is exploring a two-phase approach awaiting power confirmation.

[00:53:58] Derek Tan (Analyst, DBS Bank - Follow-up):

“Is there any recent valuation for that particular asset?”

[00:57:52] William Tay (Executive Director & CEO):

“60 megawatt is there. We are uncertain when the 35 will come, right?”

[00:59:11] Q&A - Question 8: 5 Science Park Drive (Shopee) Renewal Rents (Murray, Analyst)

Murray (Analyst), William Tay (Executive Director & CEO)

Murray asks whether renewal rents at 5 Science Park Drive will close the gap to the roughly 15% below-market in-place rents shown at acquisition, and when the new rents take effect. William Tay says the results are already better than management's earlier assessment once the renewal is signed, and new income begins next year following a November lease renewal, describing it as a welcome year-end contribution.

[00:59:16] Murray (Analyst):

“the in-place rents at that point in time was, let's say, 15% below market rents.”

[00:59:55] William Tay (Executive Director & CEO):

“I think we are doing better than what we have expected.”

[01:00:32] Closing Remarks

Johanna (Moderator, Investor Relations)

Johanna closes the briefing at the top of the hour, thanking everyone who joined online as well as those who attended the session in person at Capital Tower, and wishes attendees a good evening as the results briefing concludes for the first half of the 2026 financial year.