FY 2024 Full-Year Financial Results Briefing

[00:00:16] Opening & Full-Year Financial Presentation

Johanna (Moderator, IR), Andrea Ong (Director, IR)

Management presents FY2024 results: distributable income rises 2.2% to $668.8 million and DPU rises 0.3% to 15.20 cents, with portfolio occupancy at 92.8%, gearing at 37.7% and rental reversion of 11.6%. The presentation covers acquisitions of two US logistics properties, divestments in Australia and Singapore, valuation trends by geography, and a new redevelopment project at Clementi Loop targeting a doubled plot ratio.

[00:02:29] Andrea Ong (Director, IR):

“Distributor income increase, uh, 2.2% to $668.8 million.”

[00:20:00] Q&A - Question 1: Operational Momentum & Asset Enhancements (Dale Lai, DBS Bank)

Dale Lai (Analyst, DBS Bank), William Tay (CEO)

Dale Lai asks about the yield on cost and pre-commitments for the new logistics hub redevelopment, the completion timing for the one-science-park redevelopment, and cap rate movements behind the quarter's valuation changes. The speaker cites a yield on cost of about 8%, no tenants secured yet, and a three-to-four-year stabilization period, and describes moderate cap rate expansion in Australia and the US alongside compression in Singapore.

[00:20:32] William Tay (CEO):

“no tenants as yet. Uh, but we believe that given that the strong demand for logistics”

[00:23:42] Q&A - Question 2: Portfolio Vacancy Breakdown & Logistics Demand (Derek Tan, DBS Bank)

Derek Tan (Analyst, DBS Bank), William Tay (CEO)

Derek Tan asks whether vacancies in the US and Australia are structural and which countries need more leasing work to sustain rental reversion. The speaker describes US logistics occupancy returning to full, a challenging Chicago business park, healthy Australian business park suburban locations but a depressing CBD fringe office segment, and describes ongoing asset enhancement and network-building efforts across the portfolio to support a mid-single-digit reversion guidance for FY2025.

[00:25:04] William Tay (CEO):

“a 80%, uh, occupancy is fairly healthy and, uh, strong compared to what we see in the market.”

[00:29:54] Q&A - Question 3: 27 IBP Redevelopment Scope & Yield on Cost (Vijay Natarajan, RHB)

Vijay Natarajan (Analyst, RHB), James Goh (Head Portfolio SG)

Vijay Natarajan asks about Changi Business Park occupancy and valuation, potential repurposing near the digital district, UK Winnersh Garden power plans, and whether forward purchases will replace completed acquisitions. The speaker reports crossing 80% occupancy at Changi Business Park, confirms planning permission is in place for the UK site, and sets a target of about 1.5 billion of redevelopment over the next two to three years.

[00:30:19] James Goh (Head Portfolio SG):

“we have crossed the 80% a year ago”

[00:37:00] James Goh (Head Portfolio SG):

“we'll be targeting about 1.5 billion of, uh, redevelopment”

[00:39:24] Q&A - Question 4: Interest Rate Outlook & Capital Management (Derek Chang, Morgan Stanley)

Derek Chang (Analyst, Morgan Stanley), Khoo Li Sun (CFO)

Derek Chang asks about the interest rate outlook for FY2025, whether acquisitions are paused, and plans for the Tampines data centre lease expiring within months. The speaker cites an interest rate of 3.5 to 3.7, likely staying below four, describes a quiet acquisition market apart from a DHL facility opportunity acquired above 7%, and notes the underlying land use at the Tampines site is commercial.

[00:39:24] Derek Chang (Analyst, Morgan Stanley):

“So, uh, what's your outlook for FY 2025?”

[00:42:53] Khoo Li Sun (CFO):

“we had opportunity to acquire a DHL facility at above 7%, which is very rare.”

[00:47:54] Q&A - Question 5: UK Data Centre Redevelopment Potential (Derek Chang, Morgan Stanley - Follow-up)

Derek Chang (Analyst, Morgan Stanley), William Tay (CEO)

Derek Chang follows up on the UK data centre's power capacity, tenant profile after recent industry shifts, and the scale of planned divestments. The speaker confirms 60 megawatts of contracted power with delivery timing still uncertain, says the cloud-player customer profile around that capacity is unchanged, and describes divestments across all countries CLAR operates in, with this year's target possibly larger to help prepare the balance sheet.

[00:48:36] William Tay (CEO):

“we still need a commitment before we can move on to development.”

[00:51:44] Q&A - Question 6: Utility Cost Pass-Through & Operating Margins (Joy Wang, HSBC)

Joy Wang (Analyst, HSBC), William Tay (CEO)

Joy Wang asks about the return profile for development, whether spec building remains the model, whether a tenant demand shift explains rising manufacturing and data centre shares, and why built-to-suit activity in Singapore has been quiet. The speaker cites announced development returns above 7%, says future development is likely to remain concentrated in logistics and data centres, and attributes the demand mix to lease expiry timing.

[00:53:11] William Tay (CEO):

“if you think that going forward it's likely to be continued with logistics, you're probably not far from there.”

[01:01:15] Q&A - Question 7: Development Headroom & Acquisition Pipeline (Online Questions)

William Tay (CEO)

Two online questions close the briefing: one on development headroom under REIT development caps, and one on how the Johor-Singapore Special Economic Zone might compete with Singapore's business parks and logistics assets. The speaker reports current development limit utilization of about 5%, dropping toward 4% once a project achieves completion, and describes the zone as both a competitive risk and a source of new investment opportunity for the region.

[01:01:01] William Tay (CEO):

“currently we are using about 5% of our development limit”