Proposed S$1.4B Acquisitions Briefing

[00:00:00] Presentation: S$1.4B Acquisitions Overview (Singapore Logistics, Ascent & Osaka Data Centre)

Andrea Ong (Director, Investor Relations - Presenter)

Andrea Ong introduces the management panel and outlines three proposed acquisitions totaling S$1.4 billion: a Singapore logistics asset in Loyang, a fifty percent interest in the Ascent business space property, and a forty-nine percent interest in a hyperscale data center in Greater Osaka, Japan. She covers occupancy levels, initial NPI yields, portfolio AUM growth, DPU accretion, and post-acquisition gearing figures before opening the floor to questions.

[00:00:25] Andrea Ong (Director, Investor Relations - Presenter):

“we're advancing our portfolio rejuvenation strategy by deploying one point four billion into high-quality logistics, business space, and data center assets”

[00:11:52] Q&A - Question 1: Ascent WALE, Rents vs Geneo & S$112M Additional Pipeline (Mervin, J.P. Morgan)

Andrea Ong (Director, Investor Relations - Moderator), Dale (Analyst, DBS Bank), Mervin (Analyst, J.P. Morgan), William Tay (Executive Director & CEO), Neeraj (Head of Business Space / Investment Team)

Mervin asks about Ascent's WALE, whether major tenants are staying, how in-place rents compare with Geneo, and the timing and yield of a further S$112 million pipeline. William Tay says the additional acquisitions are timed for April or May at yields between six and a half and seven and a half percent. Neeraj explains the current vacancy stems from expired F&B space and that in-place rents sit below Geneo.

[00:12:34] Mervin (Analyst, J.P. Morgan):

“WALE is two point four years. Any indications whether major tenants are staying on?”

[00:13:20] William Tay (Executive Director & CEO):

“the year is between six and a half to seven and a half.”

[00:16:00] Q&A - Question 2: Japan DC Partnership Structure, Call Option & Floating DC (Dale, DBS Bank)

Dale (Analyst, DBS Bank), William Tay (Executive Director & CEO), Ram (Head of Investments)

Dale asks how the four point one percent accretion figure was derived compared with earlier sub-one-percent deals, and separately asks whether the Loyang site borders the sea in connection with a floating data center lease. William Tay attributes the higher accretion to a larger proportion of debt funding in the S$900 million raise, and confirms the site sits next to a waterfront used for sea logistics.

[00:18:58] Dale (Analyst, DBS Bank):

“So did I hear correctly that you mentioned, floating data center?”

[00:17:14] William Tay (Executive Director & CEO):

“we are utilizing a little bit more debt, which is why the accretion went up.”

[00:25:56] Q&A - Question 3: Japan DC Cap Rates, Funding Mix & JPY Hedging (Derek Tan, DBS Bank)

Derek Tan (Analyst, DBS Bank), William Tay (Executive Director & CEO), Khoo Li Sun (Chief Financial Officer)

Derek Tan asks about the rationale for scaling up in Japan, the entry yield against rising local rates, CLAR's commitments on the floating data center, and the overall cost of debt. William Tay states the Japan data center entry yield and notes few comparable transactions have priced above it. Khoo Li Sun adds that the Japan deal will carry a mostly debt-funded structure for natural currency hedging.

[00:25:56] Derek Tan (Analyst, DBS Bank):

“Could you just give us a sense on your thoughts around scaling up, Japan as a new jurisdiction?”

[00:27:14] William Tay (Executive Director & CEO):

“our entry yield right now is four point three percent.”

[00:29:03] Q&A - Question 4: Cost of Debt Breakdown & Japan DC Expansion Rights (Rachel Tan, Macquarie)

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

Rachel Tan asks for CLAR's Japan debt cost, whether CLAR could later acquire the floating data center, and who holds the untapped plot ratio at Loyang. Khoo Li Sun says she cannot disclose more about the floating data center operator before its own announcement. William Tay confirms the untapped plot ratio rights sit with CLAR after completion, though any expansion would need coordination with the master tenant.

[00:29:03] Rachel Tan (Analyst, Macquarie):

“can you give us a sense what's your Japan debt cost?”

[00:31:38] William Tay (Executive Director & CEO):

“the untapped plot ratio reside with us now after the acquisition.”

[00:34:08] Q&A - Question 5: Greater Osaka DC Hyperscaler Credit & Lease Terms (Terence, Citi)

Terence / Terrence (Analyst, Citi), William Tay (Executive Director & CEO), Ram (Head of Investments)

Terence asks whether further CapEx is needed to reach the data center's additional power capacity and what rent upside that capacity could bring. Management says the building is already equipped for the extra capacity, with only fit-out CapEx of roughly five to ten million still required. Ram addresses Ascent's F&B vacancy and confirms the Japan hyperscaler tenant carries an investment grade credit rating.

[00:34:08] Terence / Terrence (Analyst, Citi):

“just a follow-up question on the Japan data center from me.”

[00:34:48] William Tay (Executive Director & CEO):

“I think it's probably about five million to about ten million.”

[00:38:03] Q&A - Question 6: Post-Acquisition Gearing & Placement Equity Sizing (Shen, Analyst)

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

Shen asks about the higher post-acquisition gearing level and whether it signals upcoming divestments. Khoo Li Sun confirms plans for roughly S$300 million to S$500 million of mostly Singapore divestments this year, focused on lower-occupancy assets, which would bring gearing down. William Tay adds that the remaining acquisition focus for the year stays on Singapore, alongside continued interest in Europe and the United States.

[00:38:03] Shen (Analyst):

“post-acquisition gearing seems a bit on the higher end.”

[00:38:20] Khoo Li Sun (Chief Financial Officer):

“we do plan to have similar last year about three hundred to five hundred million of divestment.”

[00:41:00] Q&A - Question 7: Japan DC Lease Type (Triple Net) & Japan Logistics Strategy (Joy Wang, HSBC)

Joy Wang (Analyst, HSBC), William Tay (Executive Director & CEO)

Joy Wang asks whether the Japan data center lease is triple net and includes MEP infrastructure, and whether CLAR would pursue other Japan asset classes. William Tay confirms the lease is triple net with MEP included, and says CLAR remains open to Japan logistics in future but currently finds the yields on offer too sharp to be accretive, keeping the near-term focus on data centers.

[00:41:00] Joy Wang (Analyst, HSBC):

“Is this a triple net? And also in terms of your acquisition, is M-MEP included, as part of the asset?”

[00:41:19] William Tay (Executive Director & CEO):

“we will be keen on logistics as well.”

[00:42:26] Q&A - Question 8: 5 Science Park Drive Comparison, Toh Guan Road & Break Losses (Vijay, Analyst)

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

Vijay asks whether Ascent's yield reflects fifty basis points of compression versus the earlier 5 Science Park Drive deal, whether there are break losses on the Loyang lease, and about the timing and funding approach for the two pending acquisitions. William Tay attributes the yield gap to 5 Science Park Drive's single-tenant risk versus Ascent's multi-tenanted profile, and confirms there are no break losses on the Loyang lease.

[00:42:26] Vijay (Analyst):

“Has the yields compressed fifty basis points since then?”

[00:42:55] William Tay (Executive Director & CEO):

“we have negotiated very well, to get the six percent.”

[00:48:03] Q&A - Question 9: Mitsui Partnership & Additional Data Centre Pipeline (Mervin, J.P. Morgan)

Mervin (Analyst, J.P. Morgan - Follow-up 1), William Tay (Executive Director & CEO)

Mervin follows up on how many further data centers Mitsui holds that CLAR could potentially acquire, and separately asks for CLAR's cost of debt guidance for the year. William Tay confirms Mitsui still holds other data centers and that CLAR could continue working with them, though he declines to detail the pipeline, and says overall cost of debt guidance stays broadly similar to previous guidance.

[00:48:03] Mervin (Analyst, J.P. Morgan - Follow-up 1):

“How many more other data centers could they-- do they have at this point in time that could potentially be bought by CLAR?”

[00:48:26] William Tay (Executive Director & CEO):

“But I can't tell you exactly what's the pipeline.”

[00:49:29] Q&A - Question 10: Sovereign Wealth Fund Partner, Cloud/AI Workload & PUE (Jonathan, Analyst)

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

Jonathan asks whether the Ascent joint venture partner is a Singapore or Middle East sovereign wealth fund, and whether the Japan hyperscaler serves global cloud or AI workloads. William Tay says the partner is not a Singapore sovereign wealth fund but declines to name its origin, and confirms the Japan site is used mostly for cloud with some existing AI workload, with a PUE of about one point four.

[00:49:29] Jonathan (Analyst):

“is that a local Singapore sovereign wealth fund or is it a Middle East sovereign wealth fund?”

[00:50:15] William Tay (Executive Director & CEO):

“there's already existing some AI workload in the, in the data center.”

[00:51:34] Q&A - Question 11: Singtel Kim Chuan Vacancies & Plot Ratio Expansion (Mervin, J.P. Morgan)

Mervin (Analyst, J.P. Morgan - Follow-up 2), William Tay (Executive Director & CEO)

Mervin asks for updates on the Singtel Kim Chuan vacancies and plot ratio increase, and about the background and timing of a fifty million dollar deferred payment on the Ascent deal. William Tay says there is no update yet on the plot ratio application, with authorities expected to take at least another six months, and explains the deferred payment gives CLAR fifteen months to lease up remaining vacancies.

[00:51:34] Mervin (Analyst, J.P. Morgan - Follow-up 2):

“any updates on the Singtel, vacancies? Like, it does a redevelopment or backfilling?”

[00:51:53] William Tay (Executive Director & CEO):

“we probably need another, at least another six month, for them to be able to go through”

[00:57:23] Q&A - Question 12: Ascent 2.4-Year WALE & Lease Expiry Profile (Rachel Tan, Macquarie)

Rachel Tan (Analyst, Macquarie - Follow-up), William Tay (Executive Director & CEO), Neeraj (Investment Team)

Rachel Tan asks when Ascent's anchor tenants J&J, Dyson and Merck are due to expire given the property's two point four year WALE. William Tay says Dyson's lease runs about three years further and J&J's expires around 2027. Neeraj adds Merck expires around 2028 and that J&J accounts for roughly thirty percent of the space, with Dyson and Merck each smaller.

[00:57:23] Rachel Tan (Analyst, Macquarie - Follow-up):

“I think, Ascent WALE is two point four years.”

[00:58:02] Neeraj (Investment Team):

“J&J is the big one, right? Uh, how many percent of the space are? Uh, J&J is probably about thirty percent.”

[00:58:39] Closing Remarks

Andrea Ong (Director, Investor Relations - Moderator)

Andrea Ong closes the session by thanking the assembled analysts and journalists for their time and for joining the briefing on CLAR's proposed S$1.4 billion acquisitions of the Singapore logistics asset, Ascent, and the Greater Osaka data center, after twelve rounds of questions covering yields, funding, gearing, and lease terms. She invites participants to log off, ending the call.

[00:58:39] Andrea Ong (Director, Investor Relations - Moderator):

“Thank you very much everyone for your time and for joining this analyst briefing.”