FY 2025 Full-Year Financial Results Briefing

[00:00:00] Opening & Introductions

Johanna (Moderator, Investor Relations)

Johanna welcomes attendees to CapitaLand Ascendas REIT's full year 2025 results briefing at Capital Tower, noting the session is recorded for the website. She introduces the panel: William Tay, Khoo Li Sun and James Goh. She sets housekeeping rules for the question and answer segment, covering both in-person and online participants, then hands the floor to Andrea Ong for the results presentation.

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

“Welcome to CapitaLand Ascendas REIT, full year 2025 results briefing”

[00:01:43] FY 2025 Financial & Operational Performance Presentation (Andrea Ong)

Andrea Ong (Director, Investor Relations - Presenter)

Andrea Ong presents CLAR's full year 2025 results: distributable income up 1.4% year on year, distribution per unit of 15 cents, portfolio occupancy at 90.9% and rental reversion of 12%. Investment properties rose to 18.2 billion, gearing stood at 39% and cost of debt eased to 3.5%. She notes 1.5 billion of acquisitions, 506.5 million of divestments, and 2026 rental reversion guidance in the mid single digit range.

[00:02:44] Andrea Ong (Director, Investor Relations - Presenter):

“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”

[00:16:57] Q&A - Question 1: Rental Reversion Guidance & 27 IBP Lease-Up (Rachel Tan, Macquarie)

Johanna (Moderator, Investor Relations), Rachel Tan (Analyst, Macquarie), William Tay (Executive Director & CEO), James Goh (Head of Portfolio Management, Singapore)

Rachel Tan asks whether CLAR can sustain its rental reversion momentum and which markets will be strongest. William Tay recounts revising 2025 guidance upward on a large Singapore business park lease, and flags business park Singapore and US office, both near 85% occupancy, as needing attention. James Goh names Singapore and Australia as the markets set to lead 2026 reversions in the mid single digit range.

[00:18:03] William Tay (Executive Director & CEO):

“it gave us more than 40% rental reversion from that leases a huge”

[00:19:30] James Goh (Head of Portfolio Management, Singapore):

“Australia probably the one that will be giving us, uh, quite good rent reversion”

[00:22:44] Q&A - Question 2: Overseas Portfolio Dynamics & Cap Rates (Derek Tan, DBS Bank)

Johanna (Moderator, Investor Relations), Derek Tan (Analyst, DBS Bank), William Tay (Executive Director & CEO)

Derek Tan asks about downside risk in the weaker US office segment and where CLAR is sourcing acquisitions given interest rates. William Tay says only about two percent of income is up for expiry next year, though several large US logistics leases face six to twelve month lease up periods. He rules out Australia and Korea on pricing, and names Singapore, Europe and the US as ongoing acquisition targets.

[00:23:25] William Tay (Executive Director & CEO):

“only about two plus percent of our income is up for expiring next year”

[00:24:32] William Tay (Executive Director & CEO):

“So while the market remains healthy, uh, we think that the occupancy is gonna be a bit bumpy”

[00:27:54] Q&A - Question 3: Telepark Data Centre Redevelopment & Older Business Park Occupancies (Jessie, The Business Times)

Johanna (Moderator, Investor Relations), Jessie (Journalist, The Business Times), William Tay (Executive Director & CEO), James Goh (Head of Portfolio Management, Singapore)

Jessie asks about the Telepark data centre redevelopment timeline and occupancy at older Singapore business parks. William Tay says the team awaits government decisions on plot ratio and height limits, a process that can take about a year. James Goh notes occupancy at the IBP cluster near 50% as buildings are readied for the new MRT link, alongside Changi Business Park's rise from about 81% to 83%.

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

“we are currently at about an average about 50% occupancy”

[00:32:21] William Tay (Executive Director & CEO):

“last year, on average, we were doing about 81%”

[00:34:15] Q&A - Question 4: Cost of Debt Outlook & Divestment Pipeline (Joy Wang, HSBC)

Johanna (Moderator, Investor Relations), Joy Wang (Analyst, HSBC), Khoo Li Sun (Chief Financial Officer), William Tay (Executive Director & CEO), James Goh (Head of Portfolio Management, Singapore)

Joy Wang asks about the cost and currency mix of debt due in 2026 and 2027, and the pace of divestments and capital expenditure for 2026. Khoo Li Sun and William Tay guide divestments toward 300 to 500 million, alongside about 700 million of development spend. William Tay says refinanced debt carries higher rates than older contracts, but new lower cost debt should keep the average near 3.5%.

[00:34:54] Khoo Li Sun (Chief Financial Officer):

“this year we believe that we were worked around 300, 500 million, uh, in order to recycle and fund any acquisitions”

[00:39:40] William Tay (Executive Director & CEO):

“hopefully we are able to maintain and we are all looking at maintaining about 3.5%”

[00:40:06] Q&A - Question 5: US San Francisco Expiries & One-North Precinct (Mervin, J.P. Morgan)

Johanna (Moderator, Investor Relations), Mervin (Analyst, J.P. Morgan), William Tay (Executive Director & CEO), James Goh (Head of Portfolio Management, Singapore)

Mervin asks about 2027 US lease expiries, the San Francisco office building, and competitive pressure at One-North should A*STAR relocate. William Tay says 2027 expiries are mostly office while 2026 is mostly logistics, and confirms the San Francisco tenant is staying. Management describes Galaxis as well positioned given its MRT connection and retail offerings, noting the vacated floors from Shopee's move to Rochester Commons are on the market.

[00:42:18] William Tay (Executive Director & CEO):

“It has got, uh, fantastic retail offerings. So, um, and it's just on the fringe of the CBD area”

[00:46:04] Q&A - Question 6: Valuations Across Markets & Capital Recycling (Dale, DBS Bank)

Johanna (Moderator, Investor Relations), Dale (Analyst, DBS Bank), Khoo Li Sun (Chief Financial Officer), William Tay (Executive Director & CEO)

Dale asks what returns and tenant mix the IBP redevelopment could bring, and about plans for Telepark and Kim Tian given power and CFA licensing constraints. Khoo Li Sun says Singapore business park developments target about 7% returns, citing a project once guided at 6.3% that has since reached about 8%. William Tay says the team prefers a data centre operator partner, and Telepark's land use points toward non-data-centre development.

[00:46:32] Khoo Li Sun (Chief Financial Officer):

“we still be looking at say about 7%”

[00:47:00] Khoo Li Sun (Chief Financial Officer):

“we announced that time about between six and a half to, sorry, seven and a half to about eight and a half”

[00:51:03] Q&A - Question 7: Data Centre Portfolio Expansion Plans (Online Investor Question)

Johanna (Moderator, Investor Relations), William Tay (Executive Director & CEO)

An online investor asks about management's plan to grow distributable income and DPU given the enlarged unit base. William Tay explains the equity fundraising completed in June only converted into acquisitions by August, leaving a timing gap behind the year's slight one percent DPU decline. He says DPU would otherwise have held broadly steady, since the fundraising was structured to fund distribution accretive acquisitions.

[00:51:40] William Tay (Executive Director & CEO):

“if we had be able to do it, DPU would have been stable, same as last year slightly”

[00:52:08] Q&A - Question 8: Shopee Space at 5 Science Park Drive, Rochester & Galaxis (Jessie, The Business Times)

Jessie (Journalist, The Business Times), William Tay (Executive Director & CEO)

Jessie follows up on Shopee's space, clarifying the tenant now holds space only at 5 Science Park Drive and Rochester Commons after moving its financial institution licensed unit out of Galaxis. William Tay confirms this is a downsizing at Galaxis rather than a simple relocation, with the two vacated floors being marketed and a leasing pipeline underway. He says management is confident the two vacated Galaxis floors will be backfilled.

[00:53:04] William Tay (Executive Director & CEO):

“we can say, uh, Sanders is confident that they will be backfilled”

[00:53:34] Closing Remarks

Johanna (Moderator, Investor Relations)

Johanna closes the briefing, thanking attendees joining both online and in person and wishing everyone a good evening. She thanks the investment and management teams, describing 2025 as a busy year for CapitaLand Ascendas REIT, and extends thanks to the staff, asset managers and property managers whose work supported the REIT through the year.

[00:53:34] Johanna (Moderator, Investor Relations):

“Thank you everyone for joining online as well as physically. We wish you a good evening ahead”