# CapitaLand Ascendas REIT (CLAR) - FY 2025 Financial Results Briefing - **Event**: FY 2025 Financial Results Presentation & Analyst Briefing - **Date**: 5 February 2026 - **Webcast URL**: [https://investor.capitaland-ascendasreit.com/webcast_details.html?videoID=1162476140](https://investor.capitaland-ascendasreit.com/webcast_details.html?videoID=1162476140) - **Vimeo Video ID**: `1162476140` - **Duration**: 00:54:05 (1,029 cues, ~8,500 words) ### Panellists & Management: - Mr. William Tay - Executive Director & Chief Executive Officer - Ms. Khoo Li Sun - Chief Financial Officer - Mr. James Goh - Head of Portfolio Management, Singapore - Andrea Ong - Director, Investor Relations (Presenter) - Johanna - Investor Relations (Moderator) ### Participating Analysts & Journalists: - Rachel Tan (Analyst, Macquarie) - Derek Tan (Analyst, DBS Bank) - Jessie (Journalist, The Business Times) - Joy Wang (Analyst, HSBC) - Mervin (Analyst, J.P. Morgan) - Dale (Analyst, DBS Bank) - Online Investor Participant --- ## Table of Contents - **[00:00:00]** Opening & Introductions - **[00:01:43]** FY 2025 Financial & Operational Performance Presentation (Andrea Ong) - **[00:16:57]** Q&A - Question 1: Rental Reversion Guidance & 27 IBP Lease-Up (Rachel Tan, Macquarie) - **[00:22:44]** Q&A - Question 2: Overseas Portfolio Dynamics & Cap Rates (Derek Tan, DBS Bank) - **[00:27:54]** Q&A - Question 3: Telepark Data Centre Redevelopment & Older Business Park Occupancies (Jessie, The Business Times) - **[00:34:15]** Q&A - Question 4: Cost of Debt Outlook & Divestment Pipeline (Joy Wang, HSBC) - **[00:40:06]** Q&A - Question 5: US San Francisco Expiries & One-North Precinct (Mervin, J.P. Morgan) - **[00:46:04]** Q&A - Question 6: Valuations Across Markets & Capital Recycling (Dale, DBS Bank) - **[00:51:03]** Q&A - Question 7: Data Centre Portfolio Expansion Plans (Online Investor Question) - **[00:52:08]** Q&A - Question 8: Shopee Space at 5 Science Park Drive, Rochester & Galaxis (Jessie, The Business Times) - **[00:53:34]** Closing Remarks --- ## Verbatim Transcript (Audited & Verified) ### Opening & Introductions **[00:00:00] Johanna (Moderator, Investor Relations)**: Good evening. Welcome to CapitaLand Ascendas REIT, full year 2025 results briefing. I'm Johanna from the investor relations team. Thank you for joining us here today in person at Capital Tower. And for those joining us remotely, please note that this briefing is recorded and will be made available on our website. The session will start shortly with a presentation by Andrea from the investor relations team, followed by q and a with the management. **[00:00:30]** First and foremost, I would like to introduce the panel this evening. We have Mr. William Tay, our Chief Executive Officer. On his right we have Ms. Khoo Li Sun, our Chief Financial Officer. And last but not least, we have Mr. James go head of portfolio management. Before we start, we'll like to lay down some housekeeping rules during the q and a. **[00:01:03]** If you have any questions, please raise your hands and um, my colleagues at the back will hand you a microphone. Please try to keep to two questions, um, each time. And if there's more, we will come back to you. For those joining online. You may pose your questions, uh, remotely via the chat box. And with that, I'll hand over the time now to Andrea who will bring us the highlights of the results. **[00:01:34]** Andrea, please. Thank you, Johanna. ### FY 2025 Financial & Operational Performance Presentation (Andrea Ong) **[00:01:43] Andrea Ong (Director, Investor Relations - Presenter)**: Uh, welcome and thank you everyone for joining this briefing, uh, physically as well as online. So I will give a brief overview of the financial and operational performance of capital and Asanders Suite, as well as some highlights of, uh, investment. First, uh, some key numbers. So CLAR continued to deliver growth and DI (Distributable Income)stributable income against a backdrop of economic uncertainty for FY 2025. **[00:02:16]** The DI (Distributable Income)stributable income was 6 7 8 0.3 million. This is 1.4% higher than the previous year. The better performance was driven by accretive acquisitions of quality assets in 2025 and supported by the prudent management of operating and interest expenses. So the higher DI (Distributable Income)stributable income, uh, translated to a DI (Distributable Income)stribution per unit of 15 cents. **[00:02:44]** The value of investment properties rose to 18.2 billion, which is an increase of 8.6% year on year from 16.8 billion a year ago. And onto asset management as at the end of December, 2025. The portfolio occupancy was 90.9% and we achieved a high rental version of 12% for research renewed during the full year. Um, this is class third consecutive year of double DI (Distributable Income)git reversions asset end December gearing was healthy at 39% and the average cost of that for 2025 was 20 basis points lower year on year at 3.5%. **[00:03:32]** Our active portfolio rejuvenation strategy six, to ensure that CLAR's portfolio, uh, remains relevant. So we were DI (Distributable Income)sciplined and focused on executing our multi-pronged strategy for growth in 2025. We completed approximately 1.5 billion of acquisitions largely in Singapore. This is one of the highest levels of acquisition activity since 2021. So to recap, the acquisitions were, uh, six properties in Singapore as well as the us and their initial NPI yields ranged from about 6% to seven plus percent. **[00:04:13]** So besides acquiring income producing properties, we also invested about 350 million to develop new green certified logistics assets in the uk. So there are two projects in the UK in Magna Park Milton Keynes & Leicester, and the expected use of these properties are about 7%. And we also completed two redevelopments in Singapore. They are one science park drive, a business space and life sciences property, and five Togan Road East, a modern ramp park logistics property. **[00:04:47]** These two new properties have achieved healthy leasing levels of about 81% and 65% respectively. So the good market reception reflects confidence in our rejuvenation strategy to future proof our properties and we will look to do more. Okay, we accelerated the pace of DI (Distributable Income)vestments in 2025, uh, reaching about 506.5 million in total. So this DI (Distributable Income)vestment amount is a 9% premium to their total market valuation, as well as a 14% premium to their total original purchase price. **[00:05:24]** These DI (Distributable Income)vestments are in line with our capital recycling strategy to maintain financial flexibility and liquiDI (Distributable Income)ty for accretive investment opportunities. We'll go into the financial performance. So comparing the full year of 2025 against 2024, uh, gross revenue increased by 1% to approximately 1.54 billion. So the properties acquired in 2025 contributed to the increase they are DHL InDI (Distributable Income)anapolis Logistics Center, a logistics property in the us, as well as two properties in Singapore, namely five Science park drive, and 9 Tai Seng Drive. **[00:06:07]** So their higher revenue contribution was partly offset by DI (Distributable Income)vestment of properties in 2024 and 2025, Partly supported by lower property operating expenses. NPI was up by a better 1.7%. So as mentioned earlier, the DI (Distributable Income) for 2025 increased by 1.4% year on year to 6 7, 8 0.3 million. DPU for the full year declined slightly to 15 cents on a slightly larger unit base. **[00:06:41]** CLAR had conducted an equity fundraising in the first half of 2025 to fund investments. It was a private placement of about 500 million to fund, uh, acquisitions. When we compare the second half of 2025 against the first half, both gross revenue and NPI increased by about 4%. So contributing to the higher income were the two properties acquired, uh, in August, namely the data center 9 Tai Seng Drive and the business page property five science park drive. **[00:07:19]** The increase was partially offset by some DI (Distributable Income)vestments completed in 2025 DI (Distributable Income) increased by 4.9% to 3 4 7 0.2 million, partly supported by lower interest expenses. So as a result, DPU in the second half increased by 0.7% to 7.528 Singapore cents. CLAR DI (Distributable Income)stributes income on a semial basis, so we have declared a DPU of 7.53 cents for the second half, and unit holders can expect to receive the DI (Distributable Income)stribution on Friday, the 13th of March. **[00:07:54]** This section covers the details of all of class's investments, uh, which were summarized earlier. I would just like to highlight a couple of, uh, latest developments. So besides redevelopments, um, we also, uh, uh, carrier AEIs, uh, which are asset enhancement initiatives. So these AEIs are projects to upgrade our properties and modernize the facilities, uh, thereby increasing long-term value. **[00:08:29]** So in 2025, we completed about 29 million of AEIs, the largest of which was at a period in Singapore for 22.7 million. So at a period besides upgraDI (Distributable Income)ng the drop off point, the office and retail, uh, entrances, we also reconfigured some of the retail space on level one for better flow. And there are new, uh, f and b offerings to, to provide more offerings and, uh, choices for tenants and visitors. **[00:08:56]** So the new retail units are mostly leased, and the expected ROI is approximately 9% at the end of the year. Uh, we have seven projects that will rejuvenate the po uh, portfolio and enhanced returns. So currently there are three developments, two redevelopments and two AEIs worth about 730 million. These projects are scheduled for completion, uh, in the next three years, meaning from 2026 to 2028 and continuing our acquisition momentum into 2026. **[00:09:35]** Uh, just last week, we completed the acquisition of DHL Canal Winchester. The purchase price is about 95 million, and the initial NPIU is about 7.4%. This property was completed just two years ago, and, uh, it's fully occupied by DHL, uh, inter intern, an international logistics company. The wheel is about five years and the lease term includes built in and no rental escalation of 3.5%. **[00:10:07]** The property is well located along a highway with access to three interstate expressways and is close to a cargo deDI (Distributable Income)cated international airport. The property is in Columbus, Ohio, uh, one of the main logistics markets in the Midwest in the us So it complements CLAR's logistics property portfolio in the us which comprises assets in three other Midwest, uh, cities, which are namely Kansas City, Chicago, and InDI (Distributable Income)anapolis. **[00:10:37]** We'll move on to the balance sheet. So the gearing remains healthy at 39%. It increased slightly from a year ago, mainly due to higher borrowings to fund investments. Total assets have also increased to more than 19 billion. The adjusted net asset value per unit was stable year on year at two 21 cents. Okay, so class, uh, road financial metrics remain strong and, uh, we exceed bank loan covenants by a healthy margin. **[00:11:12]** So just going through some key financial metrics, the ICR remains at 3.6 times and cost of debt has come down slightly to 3.5%. The percentage of our fixed rate debt is also high at about 75%. So our total debt is about 7.6 billion and it comprises various currencies such as single dollar, US dollar or sea dollar grid, Britain power and Euro. **[00:11:40]** So the debt expires are well spread over the next eight years until 2034. Over these two years, meaning 2026 and 2027, specifically, only about 12% of the total debt is due. Okay, on natural hedge. We continue to have a high level about 76% for our overseas investments, which make up about, uh, 30 plus percent of the portfolio. **[00:12:10]** So we also conducted the annual revaluation of our portfolio of investment properties. So the total valuation of our 2 2 2 investment properties, uh, was 18.2 billion as at the end of the year. This is a year on year increase of about 8.6% or about 1.4 billion. This was mainly due to new properties acquired as well as the completion of the redevelopment of five Togan Road East on the same store basis. **[00:12:44]** The portfolio valuation increased by 2% or about 300 plus million to 16.6 billion. This was mainly due to cap rate compression by segment, all three segments, meaning business space and life sciences, industrial and data centers, as well as logistics. All recorded year on year increases. Here we move on to portfolio occupancy. So as shared earlier, the portfolio occupancy was 90.9% as at the end of December. **[00:13:20]** We'll go into each geography specifically. So starting from the left, which is Singapore. So the occupancy rate of the Singapore portfolio was 91.2%. This is an increase of 80 basis points, quarter on quarter, excluDI (Distributable Income)ng five togan row east, which just completed its redevelopment in the third quarter of 2025. The occupancy rate of the Singapore portfolio would have been higher at 91.7%. **[00:13:47]** For the US it was a slight increase of 20 basis points from the previous quarter to 85.5%. For Australia, the occupancy rate was 94.4%, slightly lower by 40 basis points. The occupancy of the UK Europe portfolio was 92%. Uh, the decline was due to a lease expiry at a logistics property in the uk, which is actually slated for redevelopment. **[00:14:19]** So if you exclude this property, which is slated for redevelopment, the UK Euro portfolio occupancy rate will remain high at 98.7%. So excluDI (Distributable Income)ng 5 Toh Guan Road East, which just completed redevelopment in third quarter, as well as this UK logistics property, which is slated for redevelopment, a portfolio occupancy will actually be higher at 91.9% in state of 90.9. **[00:14:43]** We will go on to talk about the rental reversions. So rental reversions for the portfolio on the whole was 12% can refer to the last uh, brown row of the table. Uh, in four q uh, the reversion was 19.6%, which is higher than three q. And the earlier two quarters of 2025, the high reversion achieved in four Q was boosted by Singapore's business space and life se life sciences segment, which had a reversion of 26.7%. **[00:15:23]** Okay, so our strong reversion performance reflects the quality and relevance of our portfolio. And for the coming year, 2026, our guidance is in the mid single DI (Distributable Income)git range. The will of the portfolio remains stable at 3.7 years. And in 2026 for the whole portfolio, meaning all four geographies, only about 20% of our gross rental income is due for expiry. **[00:15:50]** Okay, I will end with the market outlook slide. So global economies are expected tore, uh, to remain resilient, uh, although uncertainties to the outlook remain. So in this current economic environment, we are confident of navigating true challenges given our, given our well DI (Distributable Income)versified portfolio in, um, developed markets, our large tenant base, uh, good operational management, as well as prudent financial management. **[00:16:29]** So the investments in 2025 have strengthened class earnings, earnings resilience, and uh, strengthen our portfolio quality. So we will continue to pursue our portfolio rejuvenation strategy, uh, and uh, this is so as to enhance the long-term income sustainability and create adDI (Distributable Income)tional value for unit holders. So I've come to the end of the, my presentation and thank you for your attention. ### Q&A - Question 1: Rental Reversion Guidance & 27 IBP Lease-Up (Rachel Tan, Macquarie) **[00:16:57] Johanna (Moderator, Investor Relations)**: We will move on to the q and A segment. So, uh, those who are joining us physically, you can raise your hand and I'll call your name. Okay. We will have the first question from Rachel from Macquarie. **[00:17:13] Rachel Tan (Analyst, Macquarie)**: Hi, good evening, William. And team, thanks for the opportunity to ask the first questions. Office two questions. I think firstly, uh, maybe just on the positive side, your rental reversions have been very strong, uh, uh, as, uh, what Andrea has alluded to your Singapore as. So, uh, maybe guidance for this year. Can you maintain this kind of reversions, uh, and where likely which market, uh, may have, uh, which market would be strong and which market would be a little bit weak? **[00:17:40]** Yeah. Do you want me to ask my second question too? Yeah, go ahead. Yeah. Uh, I think thanks for your compliment with the rent version, it's our third year getting double DI (Distributable Income)git, uh, **[00:18:03] William Tay (Executive Director & CEO)**: and right up to three q. We were still looking at, uh, right up to half year last year we were still looking at single DI (Distributable Income)git, uh, until three q we realized that we were gonna have a very high renter reversion from a lease in Singapore, uh, business park. Uh, it gave us more than 40% rental reversion from that leases a huge, uh, lease, uh, which is why we actually adjusted in three Q last minute. **[00:18:30]** We gotta adjust it up to a low double DI (Distributable Income)git. Uh, and you heard me mention that we do want to continue to push rent. Uh, occupancy has been very stable and very strong actually. If you look at all across all asset classes, uh, the, in terms of like industrial logistics, um, UK, Australia, they're all above 1995, 90%. **[00:18:55]** Uh, the main gap is actually in business plan in Singapore as well as, uh, US office, which is about 85%. So rental reversion is important for us. Even I say we are, we continue as some, uh, leasing challenges in these two segments, uh, which is why we have been trying to upgrade and do a EI to our properties in order to make sure that our tenants remain sticky with us and, uh, our assets actually be meaningful **[00:19:30] James Goh (Head of Portfolio Management, Singapore)**: for their occupation. Uh, given that I think we continue to look at, uh, mid single DI (Distributable Income)git, uh, in entire portfolio, uh, markets that we think there'd be strong continuity in Singapore, uh, in fact Australia as well. Australia probably the one that will be giving us, uh, quite good rent reversion. Uh, we will continue to push for United States, uh, to give us, uh, positive rent reversion and, uh, mostly will still come from Singapore **[00:20:01] William Tay (Executive Director & CEO)**: market do. Yeah. Um, and if you are to break down in terms of asset classes between BP and logistics, typically our logistics are assets are still below market, um, across almost all the geographies. So as you can see from the renter reversion data, a lot of the is really supported by the log improvement in rents. Maybe just to follow up, do you have a number of how under rented is your portfolio by geographies? **[00:20:34]** Typically between five to 10% Across On average. Yeah. Okay, thank you. Uh, maybe moving to my next question, uh, in terms of redevelopment, could you give us any update? I think you have one in uk. Any update on your data center redevelopment and, uh, your tel data center as well? UK data Center, um, not much, uh, change. **[00:21:04]** Uh, we are still waiting for the confirmation of the power, uh, which we expect in the first half of this year. Uh, so we hope that we can start development probably in the next after that, probably about next 1218 months, uh, to start development, uh, tel as you were referring to pons, uh, that's one, uh, which has actually expired, uh, since last year. **[00:21:32]** Uh, there is also another one I think you probably know about the Kim Trant is likely you, you expire this year, uh, in fact next quarter. So this two, we continue to look at our opportunities for development. Uh, we are still working out the development plans, uh, for the one in tampons, uh, is we are looking at trying to get higher plot ratio. **[00:21:55]** So that's, that's considerations that we have, uh, before we decide whether to, what's our next step for that project. Uh, just follow up, uh, wan are you maintaining getting more power or what's your plans for that data center? Um, today contact in Singapore, we are not able to, to increase power if there is no existing data center operator on site. **[00:22:24]** So unless we work with another operator who will apply for a CFA tool, then that's potentially that they can come into any other the site. So we definitely have to work with an operator. Yeah. Okay. Thank you so much. Okay, Thank you. I think, uh, ### Q&A - Question 2: Overseas Portfolio Dynamics & Cap Rates (Derek Tan, DBS Bank) **[00:22:44] Johanna (Moderator, Investor Relations)**: just now, Derek, do you raise your hand? No. Yeah. Okay. **[00:22:50] Derek Tan (Analyst, DBS Bank)**: Hey, uh, good evening. Uh, William Derek from DBS. Just two questions. Uh, first one is, um, looking at, um, your portfolio, right, uh, I just curious about, you talk about us being a little bit weak, especially for offices. Uh, could you give us a bit more color in, is there any leases that we should be watching out for, for the upcoming year that could be coming up and that you see some form of, of downside risk from that perspective? **[00:23:12]** And, uh, and going into, say, this year, uh, given where interest rates are, where are you hunting for acquisitions? Just curious on that. Yeah, thanks. **[00:23:25] William Tay (Executive Director & CEO)**: Yeah, Okay. Hi Derek. Um, so on us, if you look at our lease expiry profile, you you'll realize that only about two plus percent of our income is up for expiring next year. So in terms of the potential downside, uh, or the financial, uh, income that's at risk is, uh, minuscule next to nothing. Um, but what is gonna happen is we actually have got a few large leases, uh, in the logistics space that's coming up for expiry next year. **[00:23:58]** You know, typically they are large shares, um, but the per square foot brands are, are much lower than your BP space. So the income contribution is much lower. Um, as, as we have all witnessed post COVID where, um, there was this frenzy from three Ps and end users to lease up all of the spaces where we were reporting like a hundred percent occupancy rate, we've now reverted back to the norm where the market remains healthy, but the lease up, uh, period would last anywhere between six to 12 months. **[00:24:32]** So while the market remains healthy, uh, we think that the occupancy is gonna be a bit bumpy. So the headline occupancy that we are gonna report over the next couple of quarters, you might see there might be a DI (Distributable Income)p. But, uh, in terms of financial impact, that would be pretty minimal. On your second question about where markets because of interest rates, uh, we have maintained that Australia is one market that we can't acquire creative, uh, if it's new market, uh, Korea continue to be non re uh, we mentioned that, uh, we have always been observing Japan, Korea, but Korea is the same as, uh, Australia given where interest rate is. **[00:25:22]** Uh, we are actually very keen to continue on our current markets, Singapore, Europe, us, and, uh, we continue hunting this, uh, locations. And if it is Europe, obviously it's a greater Europe, not just in uk. Uh, so mentioned whether is a data center, we look at data center and logistics in, uh, Europe. So it's not in existing just in the existing market, but new markets like Madrid, Frankfurt, uh, Dublin, the other European, uh, cities, uh, that will also include logistics. **[00:25:56]** Uh, I think we have also been, I also mentioned that we've been looking at, uh, observing Japan market given where interest rates are in the past one year. And then we've, uh, renter positive renter growth. Uh, that's have been a market that we looking at. Uh, so we are continue to monitor, but yes, uh, if you're looking, looking at from an interest rate point, Japan interest rate also has right reason, right? **[00:26:23]** So we'll be looking at this market and see whether cap rate has expanded, uh, because if you were to acquire at what has been transacted in the market in the last one year, 3.5 to 4%, I think there is still a tion, but it's fairly tight. So we will see whether we can get better deals out of, uh, some of these, uh, in, uh, in Japan market. **[00:26:44]** Other than that, I think Singapore continue to be attractive, uh, definitely because of where the, uh, title is, as in leasehold and, uh, we have been trying to refresh our properties. If you look at what we've been trying to do, uh, acquisitions that we have done, they're all mainly younger properties. Uh, even in Singapore, they are brand new properties while lease could be 22, 23 years left, they are all newer properties, better specs. **[00:27:14]** And if you look our acquisition in us, uh, we have done 1D HL, uh, InDI (Distributable Income)ana Police last year and two weeks ago, DHL Columbus, uh, with these two acquisition, our modern specs warehouse in US is already more than 50, uh, 50%. So that's how we want to refresh our property, uh, which is why I also mentioned development is one key strategy that we wanna do, uh, as well as a EI and redevelopment. **[00:27:48]** I hope I answered your question. ### Q&A - Question 3: Telepark Data Centre Redevelopment & Older Business Park Occupancies (Jessie, The Business Times) **[00:27:54] Johanna (Moderator, Investor Relations)**: Okay. Can we move on to the next question? Um, may I have the question from, uh, this lady piece? Yeah. Jessie from, uh, business Times. Hello? Um, hi William. Hi everyone. Good evening. **[00:28:06] Jessie (Journalist, The Business Times)**: Is it on? Okay. Um, maybe two questions from me. So I'm kind of curious about the Telepark, um, data center. My understanDI (Distributable Income)ng is that it's being redeveloped. Um, do we have like a timeline of when redevelopment works will probably start, and in the meantime I'm guessing the tenant has moved out completely. Uh, and secondly, I mean, occupancies are quite strong across the board. **[00:28:30]** Um, but I do note that for some of the Singapore properties, some of the older and um, business parks, occupancies could be a bit better. Um, could you maybe share some ideas of what, um, as senders is doing to increase occupancy or, um, yeah, thank you. Okay, thanks Jesse. **[00:28:51] William Tay (Executive Director & CEO)**: I'll take your first question and James can take on your second questions. Uh, the property in Telepark, uh, we are looking at development plans to increase plot ratio. Uh, if you're looking at timeline now, we are looking at where the, uh, government's consideration in terms of, uh, height limit. Uh, I think they have, government has mentioned that with the air base being moved, uh, and as well as, uh, flight technology today, uh, they can look at freeing up a lot of as air space, which means that builDI (Distributable Income)ngs can go higher. **[00:29:27]** Uh, so this is the reason why we've been asking the government to consider some plans for higher plot ratio. Uh, I also shared before, uh, when it's not part of the permitted master plan parameters, it does takes a bit longer, easily a year, uh, to get any of these plans being approved. So I will say that we probably take this year **[00:29:53] James Goh (Head of Portfolio Management, Singapore)**: to do all this, uh, planning, uh, possibly if there's a development or any other options that we are looking at, uh, we will look at it after we get the confirmation of what and what we can build in on the site. So maybe next year, Sorry. So, uh, currently, I mean, am I going to, like, should we assume that occupancy is what is reflected in the supplementary information? Yes, Yes. Yeah. So for those who are under plan for redevelopment, uh, we also shared that there is no reason for tenants to come into the site, and we will not actually be actively marketing it, because if it's slated for development or redevelopment tenants comes in and subsequent or relocate, that's a lot of, uh, DI (Distributable Income)sruption to their occupation. **[00:30:39]** So we have, uh, take for example, UK when we decided to develop one of, uh, redevelop one of the site that is, uh, that's just vacated is part our plan that we know that occupancy will, will fall away so that we can then prepare the site for development. Okay. Thank you. Hi, Jesse? **[00:31:00] William Tay (Executive Director & CEO)**: Yeah, um, on your question about Singapore legacy BP spaces, I suppose, uh, if you look at the, the DI (Distributable Income)fferent sub clusters that we have and where perhaps the occupancy is a bit lower will be one. Uh, at the IBP cluster, which is in Juong, we are currently at about an average about 50% occupancy. And the reason for that is, uh, several four, we are progressively redeveloping the assets there to take advantage of the new MRT station that's gonna come up. **[00:31:32]** Uh, we have got 27 IBP that is currently under construction, very close to TOP, and that would have, uh, DI (Distributable Income)rect linkage, uh, via a pedestrian, uh, walkway or breach to the new station when it opens. So what we are also planning to do is progressively we will be redeveloping the other builDI (Distributable Income)ngs that's within a walking DI (Distributable Income)stance of the MRT. **[00:31:58]** And in a, in a way, you can think of it as a warehousing those assets and you expect that the occupancy would continue to come down as a result. But again, given the DI (Distributable Income)versity of our portfolio, um, we feel that this is a worthwhile trade off because the future payoff is gonna be much higher than if you were to try and just list this on as is very basis. **[00:32:21]** Uh, next I move on to, um, the other cluster, which is in Changi CBP. That was in the news about a year and a year and a half back when there was a lot of concern, there was a lot of, uh, negative news flow about that place. If you look at how we've performed year on year, last year, on average, we were doing about 81%. **[00:32:42]** Uh, this year in December we DI (Distributable Income)d, we are at about 83%. So there's a slight 200 basis point improvement might not seem like a large number, but, uh, in a DI (Distributable Income)fficult and challenging market, we continue to outperform. And there are a lot of things that we are doing or have done, incluDI (Distributable Income)ng, uh, applying to the authorities for change of use from BP space to, uh, FSS, which is education. **[00:33:10]** We have got, uh, one of our builDI (Distributable Income)ngs, three CBP, where we've actually done that, uh, progressively. We also have pockets of spaces within, uh, CBP that's been converted into such educational usage. So our game plan is really to continue to engage the authorities, uh, to get them to accept, uh, DI (Distributable Income)fferent or adjacent users such that then they can, we can really revitalize the entire, uh, vicinity. **[00:33:35]** And I'm very happy to say that the regulators are now a lot more open and receptive towards, uh, change of use because they have also come to the realization that, um, the, the legacy demand or users of BP spaces have largely, uh, reduced their requirements and that we really need to find new sources of demand to, to backfill those spaces, and they are really on board and helping us with that as well. **[00:34:07]** So I hope I've answered your question. Thank you, Jesse and James. ### Q&A - Question 4: Cost of Debt Outlook & Divestment Pipeline (Joy Wang, HSBC) **[00:34:15] Johanna (Moderator, Investor Relations)**: Uh, may I have the next question? Uh, joy from HSBC? **[00:34:22] Joy Wang (Analyst, HSBC)**: Hey, uh, thanks. Uh, first question on cost of, uh, cost of debt, uh, can we get some guidance and in terms of, uh, currency of debt that is expiring for 26 and if possible, 27? Um, second question on DI (Distributable Income)vestment. Uh, can we look at the same pace or even more DI (Distributable Income)vestment in 2026? Um, and in terms of sort of expectation on CapEx as well for 26? **[00:34:48]** Thank you. **[00:34:54] Khoo Li Sun (Chief Financial Officer)**: I'll take the second question, and this can take your first. Uh, so DI (Distributable Income)vestment, we have done 500 million last year. Uh, this year we believe that we were worked around 300, 500 million, uh, in order to recycle and fund any acquisitions that we may come across. Uh, in terms of, uh, pace, we will, we have some interest in some of the assets, uh, as well as some of our assets that we think that it will be good **[00:35:27] William Tay (Executive Director & CEO)**: for us to, to, to DI (Distributable Income)vest. Uh, so we are definitely working on this. Uh, I think you have look at l track record, uh, whether is it unsolicited interest or if it's an, uh, asset that we have pushed out to the market. Uh, we are always very keen to look at premium. Uh, so we definitely want to be able to recycle well in order to, in order to acquire better. **[00:35:55]** Larry, hope you agree with that. Have I answered your question? And the CapEx for 26, Uh, CapEx now. Okay. In terms of our development redevelop about 700 million ongoing. Uh, we will have about 200, 220, 230, uh, uh, for value to be turned on this year, uh, primarily from, uh, Singapore 27 IBP, as well as the, uh, US logistics. **[00:36:27]** So that has frees up another 200 million, uh, for redeployment. I also mentioned that, you know, on a rolling basis, every three years we hope to be able to hit about 1.5 billion. **[00:36:40] James Goh (Head of Portfolio Management, Singapore)**: So with that, with, uh, the UK asset, uh, that we have, uh, slated for redevelopment, uh, and then the question about Telepark and all this adDI (Distributable Income)ng on, uh, we will still look at possibly the same traction. So now about 500 million, we'll add on more because of 12 million will be freed up. So we'll add on more, uh, for until the end of the year, That probably means if you are looking at acquisition, you will have to tap the market for equities. **[00:37:13] William Tay (Executive Director & CEO)**: Um, acquisitions, if you look at where we are in terms of, uh, leverage, even for our last acquisition with Columbus, uh, in terms of leverage, hardly any impact. I mean, 0.1 or less. Uh, so if you come across big acquisition, uh, because we are looking at between 300, 500 million, that's actually quite sizable already. Uh, well, I recognize that, uh, like for example, Derek mentioned, which is, which is, uh, a fair point. **[00:37:39]** Our track record has, we, for past five years, we've done about a billion each year, right? So if we do on the same trajectory, uh, we may have to look at tapping the market. Yes. Uh, but nothing, nothing, obviously, I'm trying to say right now, uh, with the DI (Distributable Income)vestment, hopefully we can actually be able to recycle this capital. **[00:38:01]** I, Okay, thank you. Yep. So the interest rate for this year is a reduction from three seven to triple five this year. So based on what we, um, see, we expect it to be broadly around this range for 2026, Uh, 3.5 mm-hmm. Okay. Then for expiry for 26 and 27, um, portion of SGD and the rest are a UD and USD. **[00:38:33]** So your SGD debt will come down and then your USD and Aussie debt will still go up. Um, Is that fair? No, it will not. It's refinancing, right? So you're asking which currency? So it's a UD and USD mainly for the 26 and 27, and a small portion of SGD debt that's due for refinancing. So joy, if you look at the tower, uh, if you're asking for currency, I think Lisa has mentioned, uh, power of it actually is foreign and, uh, foreign currency, uh, foreign currency against what we have contracted five years ago. **[00:39:16]** Uh, easily 200, 250 basis point higher. Uh, so with a single dollar, single dollar I think is fairly stable, uh, from what we have done five, 10 years ago. Uh, so that tower will still be higher costs than what we are contracted, uh, which is a norm because every of these tower were contracted 5, 7, 10 years ago. **[00:39:40]** So we will still be looking at refinancing on higher costs. Uh, but because we've, we've DI (Distributable Income)vestment with new acquisition, new debt will come in, uh, to a lower cost, hopefully we are able to maintain and we are all looking at maintaining about 3.5%. Oh, that addresses your question. Thanks. ### Q&A - Question 5: US San Francisco Expiries & One-North Precinct (Mervin, J.P. Morgan) **[00:40:06] Johanna (Moderator, Investor Relations)**: Thank you, joy. Uh, we will move to vin. Can I ask your question from JPM? **[00:40:13] Mervin (Analyst, J.P. Morgan)**: Hi, William. Um, maybe we can go to slide 39. There's the US expires. Um, just one double check. The, for the 27 expires, is that all logistics and maybe can update us in terms of what's happening with the upcoming San Francisco office leases? Uh, Uh, 26 are mostly, mostly logistics. 27. 27 Is uh, office. A majority is is office. **[00:40:39]** Uh, one SF builDI (Distributable Income)ng will be in the 27 bucket. And are they staying or, Uh, they are staying right now. Okay. Okay. Um, can we touch on one North precinct, uh, this potential movement within Astar, uh, heard that canDI (Distributable Income)dates moving gala access to a TP. Um, can we talk about the competitive pressures there once Astar moves out, whether other people want to poach some of your tenants? **[00:41:12]** Thanks. Um, you can add on, uh, Canada is still with us. Uh, so if you look at occupancy numbers, uh, there's a DI (Distributable Income)p. I think we all know that, uh, Shopee has downsized. Uh, they renew every, uh, the floors that they need. Uh, they have moved the shopping money, uh, to sea money, uh, to Rochester, so that that happens. **[00:41:40]** While we have talked about it for many quarters, it only happened in the last quarter of last year. Uh, we are marketing those sites. Uh, just the two flaws that we have right now. Uh, we have pipeline **[00:41:56] William Tay (Executive Director & CEO)**: and I think we are on track to be able to list them up. Right. Uh, if you are asking whether there's any relocation, musical chair, I think we face all the pressure all the time, uh, incluDI (Distributable Income)ng us approaching from, uh, other landlords. Uh, even for Junior. I think there are other, we also have mentioned that there are new tenants as well as relocation tenants that we have worked on. **[00:42:18]** Sure. Yeah. Um, just to add on to what, uh, William has said, uh, personally, I'm not too concerned, uh, particularly for Galaxiss. It has got DI (Distributable Income)rect connection to the MRT. It has got, uh, fantastic retail offerings. So, um, and it's just on the fringe of the CBD area. Um, so personally, like I say, um, I think that we'll lease it. **[00:42:44]** It's just a matter of timing and the right tenant coming along. Uh, final question for me, quite excited in 27, 28 when some of your developments, you know, come on stream, so there should be a big boost to, to earnings, but you're doing more developments it seems, which are high, much higher yielDI (Distributable Income)ng the acquisitions. But can you talk about which markets look a bit attractive in terms of development or greenfield development? **[00:43:08]** Is that us more so, or still Singapore? Thanks. Um, if it is redevelopment more Singapore, uh, where there's overseas opportunities, depenDI (Distributable Income)ng on the expiry, uh, just like UK data center is because of the tenant expire, uh, and before they expire, we already put in application for higher power. Uh, the logistics that we are coming across that we are come across in uk, uh, because of potential expired about a year ago, we started looking at that and we planned that for redevelopment, uh, Singapore, continually attractive given the fact that, uh, if you look at all current existing projects that we have, uh, the key consideration is higher plot ratio, uh, and with higher plot ratio, and we can build better quality higher plot ratio. **[00:44:06]** We can introduce, for example, a junior. We have introduced complimentary users. Uh, the amenities are doing very well. **[00:44:17] James Goh (Head of Portfolio Management, Singapore)**: Uh, that actually is a good selling point, uh, given for, for tenants, uh, I mean employees of tenants. Uh, the other point also is because as we refresh our property, uh, flight to quality is actually one key consideration The tenants has, uh, while they, while it's not easy for them to relocate, uh, because if you were to come into a new builDI (Distributable Income)ng, they sign on a five years, 10, 10 years lease, uh, that's actually attractive for them because they can refresh their own office space, their own, uh, users, uh, usage. **[00:44:51]** And, uh, we've coupled with all these, uh, new work habits of work from home flex office, uh, for example, junior, I think we also have introduced a attendant who are able to do call lab. So like coworking. So this actually new solutions, uh, that we have bring about in our development. So these are areas that we want to be able to continue. **[00:45:12]** So Singapore will co will continue to be a, a, a, a place for us to, to look at development and redevelopment. So just to clarify, so, uh, you said on the rolling base basis, you have about $1.5 billion worth of developers We hope to achieve about 1.5 billion. So like, yeah. Yeah. So you look at the projects has been turned on. **[00:45:34]** Each year we probably can turn on two 300 million. This was the pace that we have built up the past two, three years. Uh, we hope to accelerate that we can then do more development and hopefully as the time comes to this new, new developments as here in commission, again, we will have that 500 million, the kind of a rolling basis. **[00:45:56]** Okay. Excellent. Thank you Marvin. ### Q&A - Question 6: Valuations Across Markets & Capital Recycling (Dale, DBS Bank) **[00:46:04] Johanna (Moderator, Investor Relations)**: Uh, we'll have the next question from Dale, from DBS. **[00:46:07] Dale (Analyst, DBS Bank)**: Yeah. Uh, thank you. Hi. Hi William. And team, um, just wanted to follow up on what you just mentioned. When you do a redevelopment, you wanna hopefully get, you know, more plot ratio, better use. Um, so going back to the, the IBP example, um, you know, what should we be expecting when, when you wanna rejuvenate the assets there, what kind of ROI are we, are we expecting? **[00:46:24]** And then, you know, what, what's gonna be changing there in terms of the kind of tenants you, you can attract? **[00:46:32] Khoo Li Sun (Chief Financial Officer)**: Uh, so ib, most of the business plan in Singapore assets in terms of development, uh, we still be looking at say about 7%. Uh, for example, Genio was because of the size of the project and the quality that we have built in, uh, when we first announced about 6.3%. Uh, but where we have landed in terms of the occupancy as well as the renter, uh, has improved is much better than 6.3%. **[00:47:00]** Uh, if you take a development in, uh, uh, redevelopment of, uh, five, uh, to one, uh, we announced that time about between six and a half to, sorry, seven and a half to about eight and a half. Uh, we've achieved today about 8%. **[00:47:19] William Tay (Executive Director & CEO)**: So I think this is where the uon course is attractive for us to develop, uh, especially for example, IBP as James mentioned, uh, is near MRT stationed and that's actually be a game changer for us. In terms of the, the tenants that you can attract, do you expect it to be DI (Distributable Income)fferent from, from the kind of tenants that are typically there now? **[00:47:38]** Uh, variety of tenants. Okay. If a traDI (Distributable Income)tional BP tenants, uh, will be attracted to new builDI (Distributable Income)ngs just at junior, we have demonstrated there are relocation. Uh, we can, it's a million square feet is huge and we can get tenants both new and, uh, relocation tenants. So I think that's where it is attractive for existing traDI (Distributable Income)tional BP tenants. **[00:48:03]** Uh, and what James has mentioned, uh, we, we are not just looking at traDI (Distributable Income)tional BP tenants, uh, given the, um, uh, some of these good location, take for example, IBP near MRT stationed, uh, we definitely will try to see whether we can incorporate other usage. Uh, so potentially part of the, uh, higher plot ratio we may ask for white use to, to bring in other tenants to be able to have a better ecosystem. **[00:48:31]** So potential to double plot ratio, Don't know yet. Okay. Okay. Then, uh, my, my second question is, um, on, on the, the tran um, data center, um, yeah. So like you're saying, they, they'll be expiring soon, right? So what are the plans? Um, like, like you mentioned also, you know, that that CFA tool that that will probably affect whether you are able to redevelop or, or, you know, use it for, for data center again, so what should be expecting for that site and as well as, I think there's another one coming up next year, right? **[00:49:03]** Uh, no more Think out or this is the last one, right? Yeah, Yeah. Okay. Uh, so for, I think I mentioned for existing data center, uh, there is no way we can push a hit to redevelop a data center. Uh, we definitely need a CFA license. Uh, it's either we partner with somebody, obviously, obviously we try to apply on our own, right. **[00:49:27]** Uh, our current position is we prefer to work with operator for these two sites. Uh, but it's actually challenging given the fact where the government is announced about where they won the new data center hub to be. So even a new data center operator would to be able to be awarded a license, uh, I think the government also will encourage them to go to Strong Island, right? **[00:49:55]** And, uh, for tele power in tampons, uh, the underlying land use is commercial. So to, to be honest, I think it makes sense for us to redevelop or to look or or us look at commercial development, not a data center. Tran, uh, is existing data center. Uh, but because of the restriction of uh, getting new power, the alternative will be industrial. **[00:50:22]** And if you look at high tech builDI (Distributable Income)ng industrial, they are probably similar in terms of coin and shell in terms of renter to a data center. So there is, uh, hardly any trade off because a coin and Shell will released out to Kyron is the most high tech, uh, development. Okay. Okay. Got it. But just just to recap, um, I think we, the last acquisition sponsor now also has some, uh, data center operating capabilities, right? **[00:50:48]** So they could also be, be someone you partner with in terms of data center? Yes. Yes. Okay. Okay. That's one other option. One option just mention we can apply on our own. Yeah. Okay. Yeah. Thank you. ### Q&A - Question 7: Data Centre Portfolio Expansion Plans (Online Investor Question) **[00:51:03] Johanna (Moderator, Investor Relations) [Reading Online Investor Question]**: Thank you Dale. Uh, we'll just ask one question online. Uh, there's a question about what is management's plan to increase DI (Distributable Income)stributable income and DPU? And maybe I'll try or answer that. **[00:51:20] William Tay (Executive Director & CEO)**: I think the question was about the, um, expansion of the enlarged unit base. Um, probably just to clarify, um, we DI (Distributable Income)d the EFR last year at, um, mid beginning of June and, but uh, we managed to complete the acquisition only in August. So I think there's a small time gap, um, and that's why it resulted in the slight DI (Distributable Income)p of 1% drop in DP. **[00:51:40]** So if, I mean, of course we can't, but if we had be able to do it, DPU would have been stable, same as last year slightly. 'cause we do the EI to actually to fund, uh, DP creative, uh, acquisitions, right? Yeah. So it will be creative. I'm not sure that answer the question. Okay. Thank you for Lisa. ### Q&A - Question 8: Shopee Space at 5 Science Park Drive, Rochester & Galaxis (Jessie, The Business Times) **[00:52:08] Jessie (Journalist, The Business Times - Follow-up)**: Uh, we'll move on to the next question, which is, uh, Jesse from Business Times. Hello? Uh, sorry, I wanted to clarify this earlier. So, uh, the part on Shopee, right? Just to understand, uh, so currently they, they only have space in five Science **[00:52:23] William Tay (Executive Director & CEO)**: Park and Rochester, right? And the two floors, oh, and Galaxis. So the two flaws you mentioned, which they, we are marketing those sites. The two F floors that we have right now. We have Pipeline. I think we are on track to be able to list them properly. These two F floors are at Galaxis Gala Galaxis. Okay. Okay. **[00:52:35]** But this is not a downsizing thing, right? This is just, uh, moving people around or, Uh, it is a downsize in gala Galaxiss, uh, C money is not considered business Park. Mm-hmm. So when they're given the license to be able to go into financial institution, they have to go into a commercial builDI (Distributable Income)ng. Okay. So they have relocated that part of their business to Rochester Commons, which is a commercial builDI (Distributable Income)ng. **[00:53:04]** Right. And then the two floors are being backfilled, uh, will Be backfilled. Yes. So we can say, uh, Sanders is confident that they will be backfilled. Yes. Okay. Thank you. Thank you. Uh, we're almost at the hour, so if there are any final questions from the auDI (Distributable Income)ence, you may raise your hand so that I can call your name and you may ask the next question. ### Closing Remarks **[00:53:34] Johanna (Moderator, Investor Relations)**: Okay. If there are no further questions, then we will end this, uh, results briefing. Thank you everyone for joining online as well as physically. We wish you a good evening ahead. So I bring this to a close, I just wanted to thank the investment team as management team. Uh, if you look at our 2025, it's a very busy year for us. **[00:53:54]** Uh, and, uh, the staff, uh, here in capital and Sanders, Reed, as well as our asset managers, property managers, has been working very hard. Thank you so much. Thank you.