1H 2025 Financial Results Briefing

Hi, good morning, everyone. Welcome to capital and China Trust to Q25. The dot's call. I'm Nicole. I are for CRC key. I have with me today Jerry C.O. and Joanne C.E. for joining us today. So we'll start off with a brief presentation followed by a Q&A session. Once the presentation concludes, we'll open the floor to questions. So if you have a question, please use the reason feature and I'll pass the time on to you. I'll like to hand over the time to Jerry. Jerry please. Thank you, Nicole. Before I share more about first half results, I'd like to update everybody. Happy news that we have received. I need to hope this approval yesterday for the proposed participation in the new CRCR.

There was strong support at 8GAM. We had an 8.5% approval rate, which demonstrated the union holders recognized the strategic value of CRCT participating in this platform. Currently, we have 18 properties across 12 cities, 9 retail malls, 5 business parks and 4 logistics parks. Assuming we transact reporting through the series, we will have 8 retail malls. In terms of asset allocation, retail continues to be our largest. Currently, at 71% gross rental income followed by the B key of 26 projects or 3 retail courses. We still have consistently be above 90% occupancy. We pay a lot of logistics.

They are along with China's new growth priorities, but they are working in the cycle. After the reporting divestment, retail work. In terms of GRI or come down slightly just below 70% GRI. In terms of AUM though, retail will be up to 4 from 76% to 75%. We are very much predominant in terms of our trading. We benefit from positive unit price movement last quarter. We are now trading at about 6.6% trading on the trading trade on the trade on the trade on the PIO basis versus the QA. At 6.6, we are about 4% spread over government-borne use.

For some results, I'll say that overall business conditions have been solved. Among the three sectors, retail has relative resilience, logistics, occupancy, stabilised, and needs, rent, and assets. Our business parks trend of retail demand continues. Retail has been affected by the continuing repositioning at all because more seen on general, weaker overall conversions and occupancy. The supermarket upgrading they were doing for three of our malls also affected our income by about 8 million remaining this half. But that would be the completion of those market upgrading, those AEIs, that would start to contribute to us by year end.

For business parks, that's up to the most in first half with lower occupancy in Hongzhou and Cian affected in the Buhanzhou phase 2. We were affected by a pre-tomb nation of a service office cannon, which took up about 20% of the NLA or Pancho phase 2. We were able to continue the backfill of the vacancy created by a large 10-in relocation a year ago. So, first Q-25 or VP was the lowest point in terms of occupancy. It was 83.7%, but we have since bounced back at the end of this half to about 86.9%. So, next generally improved as we had improved occupancy in the Queensland and the whole logistics portfolio versus a year ago.

So, under those conditions our overall portfolio first half gross revenue drop by 6.3% year and year and NPI drop by 8.1% year and year. So, excluding the Hancho phase 2 service office cannon effect and the supermarket upgrading that we're doing gross revenue drop would have dropped by 5% year and year and year and year would have dropped about also 5% year and year. Also, to note, excluding those in fact, one of the impact of the service office and the supermarket upgrading, first half, 2.25 and Pia would have been comparable, the second half, 2.0 to 4. In terms of DPO, DPO, 4.5% year, 2.5% is 2.49 cents.

We have retained the distribution, distribute the bulk income attributed by the bottom or second Q due to the impending series IPO, extruding the effect. So, first half, 2.25 DPO would have been 2.59 cents which is close to second half, 2.2% to 4 DPO of 2.64 cents. So, if you look at the role of, you know, appearance period, you could tell that our DPO in terms of the downward trend have narrowed from the sub to 0.24 to the second half to 0.24 and then now the sub to 0.25.

So, last one is both first half. I've already mentioned we have obtained unit holders approval for our proposed participation in CLCR. The other thing that we've been working hard on is capital management in April. We have announced the successful issuance of a 600 million C HNISH bond. And that said, the attractive rate of 2.8%, we are continuing to work on reducing our cost of debt. In terms of our average cost of debt, we have cut in first half, we have cut it by nine basis point. We have covered that in more detail later. In terms of percentage of remin P debt nomination, we are now at 41% at first half. But we are doing more work on it. In fact, we are in advanced negotiation with banks.

We finance some of our SGD, we don't need to go into remin P debt. And therefore, we are quite confident that we'll be on track to reach this 50% target area set for this year. And potentially, we could outperform that target. Finally, we have also improved in terms of our sustainability targets. But we obtain the goal for the R&D blocks of incentives in super portfolio. And in terms of our green certification, we have improved for mid now. We are about 68% versus in December with a 60. And we've also increased our sustainability loans in 51%.

Our retail operational data, you know, continue to show resilience. Retail sales trend have been growing. Right. If you look at first half, chocolate traffic grew by 1%. If you look at our 10 sales, it grew by 0.1%. You will know that we are doing some super market upgrading, which cost the closure of, you know, three super markets. Of course, our more. So if you strip that effect out, we would have actually ten sales. We actually grew 2.5%. Right. 2.5%. One of the key things in first half was of course, the main green holidays that has been a strong factor during that month. So that's the best part in terms of sales growth across the month. In terms of key trade can our popular trade can as we grow.

has been going has continued to lead the growth of our 10 sales. If you look at FMB, which is a big portion of our, you know, treatment now that 39%. Right. That continues to go at plus 4.3%. As we also continue to go our FMB, you know, train mix. And the other category is IT right. So it's a strong growth plus 17%. That of course has boost from consumption vouchers that continue to be, you know, factor in increasing Chinese consumers buying of gadgets and appliances toys and hobbies grew at a very, very high rate of 46%.

Again, very much catching on to the pot much strong momentum. And that's that indicator of rising for the continued rise in popularity or collective by market. Finally, jewelry and watches that is plus 18%. Sales increase predominantly from established brands in Beijing. Right. Again, you know, the popularity of investment goal continued this strong amount Chinese consumer. In terms of occupancy cost, we are at healthy level of 17.7%. You look back in history, you know that we will show that we are actually below historical levels, you know below peak of it, 19 levels.

I mentioned that, you know, we have been relatively resilient. I've been said that there has been there has been a slight drop in terms of overall occupancy in first quarter, we were 97.7. Right. Some of these occupancy points lost our transitionary vacancies, but we expect to do them in the next quarter. For example, seats and men and grand can and more. In terms of the reversion is slightly wider negative reversion.

So that's currently the reversion focus of is minus 2.7%. This driven by some of the actions that happening in the portfolio, including there was a mini ankle repositioning at Rock Square (Guangzhou). Right. Basically, we are bringing a strong anchor to improve, you know, the overall over circulation as well as you know draw at that area that we are bringing the anchor. Right. So, there has been also a quick mix shift for our high rental vehicle tenants, some of the EV tenants are consolidating right. So, because they usually pay very high rents. So, you know, we would have to taste them with other other tenants and also rent the support for FMB tenants during the

investment one renovation in Captain more one thing. Business parks. Although this is part sector has been challenging. We managed to bounce back from the first queue lows of the 3.7% to 86.9% with more competitive price on rents as a result rental reversion is that minus it the same. This is compared to an or last year, which we will about minus 4.5%. So, that's certainly, you know, we certainly had to offer more competitive pricing in order to push up occupancy. There are some civil linings in VP for example, things who improve its occupancy attracting a lot of major US tooling engineering cannon right. So, that's MNC.

And in home show to where we lost the large service office cannon. What we have done is we have worked out to back fill that space that space was about 20% of control based, please two. So, we have in queue one with that period to 45% in the first time of this year. Right. We have already back 3 to 72% right with some positive and two inversions. Right. So, so that's something that we continue to work hard to have to see whether we can back fill the remaining as soon as possible. We continue to do better or on pies compared to our competitors in our VP sub markets. If you look at the sub market competencies as a whole.

They have generally declined, but our our own portfolios, VP occupancy have generally improved for health. Logistics was also an improvement occupancy. So, our vaccine has started to collect renters in July after 10 renovation is completed. Shuntu has also improved occupancy from last quarter. We did do early renewal of the entertainment in Wuhan. And that one one lease contributed to the negative reversion that you see here on the slide of minus 24.7%. Overall, our our portfolio occupancy across the three assets, assets segments right has actually improved this in in person to 91.6% from Piski which was about 90%.

So, here just just recap our distribution process up is 2.49. Next, I'll pass it over to Drain to probably a little bit about the management efforts. Hi, good morning. Okay, if you look at this like, technically for caring, we maintain our daily and about 42%. I think despite the volatility in terms of the revenue fee that we saw, we couldn't gain $6. We still maintain our daily and about 42% actually because of our effort to try to bring back more cash from China by the usual route that we should be doing is to show the distributed. I think it became a tool with that that actually helps to maintain our period.

Of course, I think Jerry touch on a little bit. I think we managed to save something trust and cause of that has had such a reduced like close to 10 basis point. Lastly coming from a few friends being those effort ever done in terms of the revenue fee, she wants us and that one has to come to creation. We see that savings and also at the same time the LPR has a short drop and also because of solar, this is all the factors that results because of that recovery. I see our maintenance healthy at the point my times, average terms and most sure it's used 3.6 miss. I think as required by MNS, we also have a table that shows the sensitivity, which we've got to any influence in terms of interest rates as well as the beta. I think we've got a CR student is healthy at both 1.8 times at five.

Yes, another little information we've got to the sensitivity on the FX movement or gearing so everyone present impact to doing sponsor for us. In terms of that maturity profile, I think very, very far. I think that's nothing that needs to be refined for 25. In fact, I'm really going to have seven in fact, we're talking to the banks to actually have us with finance this signal that's we're going to be that I think. The whole strategy is to actually pivot more to when maybe that's to have a more natural hedging so that's what we're doing. I think we should be able to cover that 15% of our debt in the end of this year. I think we remain diversified.

We have introduced more form and shape of our own feet. We have the debt. So we have the password that has to be that we're on the track to keep on looking at other ways and forms to actually issue and we could do the kind of debt. In terms of the case I'm voting where about 87% kids and voting, but in the same. I think that covers on all the capital management related stuff. Yeah, pass them back to Jeremy. Thank you. So looking forward. Have you announced that, you know, some good news on the AI, but we are still working on the tree in the supermarket. I think that's the right to optimize a popular and enhanced value for all units for this.

So in capital more, share full. I will launch the. Supermarket right there. They have open in in in June. This is a 6,600 square meters supermarket smaller than the previous one. But if you look at the sales efficiency. He has been phenomenal. He has achieved seven times of the sales per square meter in the first month opening. Then the previous supermarket hopefully this momentum continue because this are very, you know, good signs for capital more share pool. In the future, of course, you know, it's a very strong local operator right. The offer quality products and traffic prices and that's one of the reasons, you know, why we have gotten them in to basically anchor this space.

In addition to supermarket, our animation comics and games team street that is opening alongside this. We have built a new to upgrading right. We'll open in the queue to 0 to 5. And we already have actually 100% on the space. We stopped right. So we have we have in fact, you know, achieve 13% total rental increase. You know, from for this space already. So we have a couple of different shopping traffic wise, you know, in the first month. We have we have seen 30% increase in shopping traffic. Or more in, you know, in total. Then in sales also have increased the 3% and I also spoke about the seven times sales per square meter per supermarket.

We continue to make good progress in terms of this AI for the for the area that, you know, we are coming up to do, you know, the new retail supermarket concept, seven fresh as well as the 17 popular retail and F&B units right. We already see 78% of NLA sign. But with another 9% that we are under advanced negotiations, but AI only completely in for few right. So we are making very good progress in terms of signing up. All right. Expect what is AI areas. It's about 10%. In terms of VP and logistics.

Also happy to share. Hunter phase 2 we introduce. We now go to how. Which means a local brand. Crush toy brand. This brand is called one. Why the reason why we highlighted it right. It is brand that is very much viral going viral in China. And and they are known as you know, a brand that is trying to. Try to take on you know, in jelly cap right. So for them to now locate what would be their HQ. You know, how much old. Paste to is a sign of the attractiveness you know of our business parks versus our competitors right.

They were they will be putting both their office as well as their first open the public showroom right in. You know, premises right. And we are excited about it. This is one of examples that I very often talk about. Where you know capital capital land so have mounted multiple ways of engaging our tenants. They could be they are now using our business parks as well using the dedicated showroom to allow. You know, they are supporters to interact with them. They are also offering to them, you know, pop up opportunity and or mark up opportunities are more to further grow their brand.

And in time to come when the physical retail out. You know, plans are ready. They could also you know, come and open retail units or retail stores in our most. And the other thing to share is for shops in our spot earlier the renovation or upgrading of the property has been completed by our anchor tenant which is Shanghai info, which is a top tree new tree Pio. And they have done the renovation, you know, they are putting in K. And now they are open for business and we will start to collect brands in July.

And we are looking at the level of strategy, which really no change. We are we are looking to build a balanced multi asset portfolio, leverage on China's. Continue focus on consumption and innovation right. It terms of creating value. You know, we have spoke about the series right. We have key stakeholder in Sierra Sierra and both now I says to China domestic capital market. We have taken the first step now by having the obtaining the EGM approval. We're going to allow value through, you know, recycling capital more rewarding, you know, if we use all the proceeds to pay on that. We will be able to improve our during by 120. We want to extract more value from our most.

You can see that from our activities in the tree most upgrade the supermarket to drive some organic growth. Those are having progress. And finally, you know, we will have that capital management right taking advantage of the lower interest rate environment in China right now and increasing our remedy that so that our asset liability currency matriens better right. And finally, we close it off in terms of business outlook. I will just like to share that trade tensions seems to ease a little right. Although the final deal between us and China or what many refer to as gram bargain right is expected to take some time.

So during this period and certain the uncertainty is holding back companies and economy right China is regulated continue to look at ways to give stimulus. The latest have been in fact the latest was just yesterday we could have latest news of direct cash and nots now to households with young children right in China the student consumption right. So the stock market in China is actually quite boring right supported by domestic and pretty and support from the Chinese government. And I hope and I expect some wealth effect to filter true eventually all these are good signs, but let me suspect that before it affects felt more what we in the broader economy. There and my presentation maybe I'll take some question the cool piece.

Thank you Jerry for the presentation now let's proceed to the Q&A segment. So you do have our first questions. Terrence can I pass that time over to you please. Thanks, thanks so much Jerry and go. If I may ask a question on finance type. What's what's the finance costs outlook for 2025 or maybe a second half of 25 and also I want to ask on RMB what's the hedging level. And you know what proportion of income is hedge and what the duration of the of the hedges. And and maybe a second question for me I wanted to ask. I'm not sure whether it was covered earlier about the us on the retention of the GPU.

You know what what should we expect there. How are you going to use the retain some. Yeah. Thanks. Yeah, I think the first two questions was I think for the course of that you can see that for this quarter we really saw the effects of the improvement coming from the low C and pitch on the issue last year and also this year. So second half of this year we respect the cost of that overall on this level. And with the initiatives that we talk about to get more banks to come into actually then us running being stay up single. I think that effect. We will see that more coming coming for next year. But as for another close to campuses. And this is point as well for that.

So that is the first question. And the other question. The attention. The attention. So on the retention. I think. Because right now intensive. I people. It has not. You should not launch it. So in terms of the cut off point is not. It's not clear. So until we are clear in terms of we cut off. Then we will know whether your heart pains contribution for to kill sort of belongs to the LCT or the LPS cells. So in the event that is clear that this this. Your heart is called division does not belong to cells C. Then we will not do anything with the attention since. So it's supposed to be. And if for whatever event the cut off or for the IP.

It's actually I'm a little time. Then we will adjust the attention accordingly. Next quarter. In a way, I mean the zero point one sense that we are intending is. Is there estimation of the cut off. Yeah. So that's why we're thinking. Sorry. So if. If the cut off. I mean if it belongs to C LCT which I look to distribute that in. Yes. Yes. Okay. If I may ask one more question on the re versions, especially for. the re tails that it seems a bit weak. And you have mentioned that there was some. Specific tendencies could I get a sense of the outlook for for retail.

Re versions for for the rest of the year. Okay. I think. The. The re versions right. As you rightly point up. But because how there was some specific. Tenments. You know the affected the re versions if we look ahead. For. To the end of the year. We will likely be flat or better. Yeah. And this level. But you know the. The many of the movements was bunch up. The first I will see. Okay. And sorry. My. A little question. I think what's the R. B. H. And. Okay. And I think we have always mentioned that our policies to.

At least 50% of the district. And as of John, I think we have had a high level. Close to 90%. And in terms of the duration. I think because this is really to hedge. Underline cash flow income distribution. So technically we don't have more. One year. I hope that. Is it possible to share the hedging. But what. I mean, I think for the duty of. German definitely those hedges are in the money. Okay. Sure. The same. Thanks. Thank you, Terrence. Derek. Can I pass the time to you please. Hi, morning. I want to hear me. Yes, Jordan.

Yeah, I'm sorry. Thank you for the presentation, Jerry. I just wanted to check on the P.U. for second half. Should be expected to be similar. All first half. Because also not that. It's limited. I mean, to reduce cost. Intercurrent levels. Thanks, Jared. As you know, it's. We don't really give for cars. But if you look at the. The slide that. There short. Regarding the role. You know, of. Of the period period. D.P.U. Right. You know, you can. See a sort of trend. I would say. Yeah.

The. Top. I mean, the second half. You know. The. I think the. The size they were seeing is. For those. One of things that we're in our top real. I was starting to be. To be. Sort of resolve. Right. To, to, to. One. To, to, to, it's. Our AI's. We all start to contribute in the. The. Our business parks. Right. Some of the one off. Like for example, the. Central face to service. R ry. To. Expect. You know, the momentum to continue to.

more details from your announcement. About 107 is the expected amount you'll get back close to the participation right? That is based on the floor price of 748 milliamhre milliamhre milliamhre. That is the floor price only. Okay so if the IPO checks in line in our accordance to timeline where we will actually get back the proceeds. Will it be an issue or an issue? Yeah this will be definitely this year. Okay. Any priorities for these 107 million plus because I see that you also have a petrol upcoming to expire in October. Will that be something you want to redeem?

I think we are trying to keep the capital structure as solid as possible. That is one thing. In terms of our use of proceeds for you are working right? I have shed with our investors as well. Of course the first thing that we are looking at is to reduce our gearing right? And if we do have a very positive result from the IPO proceeds then we have more financial flexibility. You know to do other things with it. You know including you need buybacks including if we need to patch up a little bit of the income due to the loss of the bottoms you know the idea.

Okay let's show you for the color of no one else in the Q&A just as well. In terms of the returns? Yeah in terms of returns the minus 3% for retail was actually a number that saw the AI uply from your previous competitions right including share full. And actually the in terms of the first time we versions the only the supermarket visas two supermarket leases were inside that's that's share full and see it's a moment if I recall correctly but you would note that what's missing which we have not put in

because they have not been completed is the whole AI at you know one thing right which you know is in a valuation the same way right as well as as well as the animation and comics area outside share full which I wish which you know we are still signing up you know some of the units so some of those were not in a totally captured category at a cut off here. Okay so if we look at same star basis without all this AI would be a more negative number it will be more or less the same as last year last year we were just below just about minus one yeah I think I think that's about the same direction very think well okay yeah thank you

Jerry I see you Kim yeah I'll come thank you thank you Jared and you care over to you please hi Jerry just just a very quick one you see me use on the ground China that you can share to see where cabrics are going and maybe an indication of where you know by year maybe where cabrics currently. Okay at this moment if you look at the reservations I will discuss and you know what you know we learn from the ground and our valuise you know the the discount rates cabrics have not really shifted that much since you know like a year ago I would see so that's number one the first best first point second point you know I I know I mean a lot of

people know them even the newspaper articles in Singapore were about it that the the Siri market has been very buoyant right and you know the the cabrics post IPO and the IPO has has surprised many observers right but actually it's not that surprising given that you know there are not many new products that are safe you know in China for insurance money and the retail investors to invest in and news are very low in China right so I would think that you know in a second half of year as more of these transactions of injection in the series are completed

and put prices right at that strong participation right there may be some spill over in terms of what value is you know can look at in terms of data points for the evaluation parameters yeah but I this is to be honest is at this moment speculation I'm just looking at the trend what's hard and continue surely you know that evaluate value is in the industry we have to consider that as a strong supporting point okay my second question is on your occupancy cost which remains very comfortable I'm well below COVID levels but but the reversion seems to does nothing to fully reflect that is anything on the ground that has structurally changed a lot

it was since COVID I think that that phenomenon you know we have we have spoke about since last year and I think a lot of people know that the Chinese economy is uncertain right so can consumer spending has been sort of struck at a low level right low level even even if it's not going to F&B you know the average ticket size you know per spend per pack you know have sort of been started at a lower level than pre-COVID right you know it's so certainly you know consumption spending has been affected and that that also weighs on our channel when they you know we knew

this is the you know that that's holding back in terms of being able to negotiate for stronger rental reversions right so you can you you see that our occupancy rates are continued to be quite quite high what that means is the tenants are surviving right they are not you know as some people may imagine closing you know and mass right in fact they are surviving some of they are doing well right but they do feel very you know very bullish to be able to say pay you know higher and higher rents or expand very extensively right because just it's just you know the mood and the uncertainty in the economy right now is weighing on it okay and then just drilling down into your trade sector

as you said this question the re-spending is being quite well do you expect this to sustain and what what's the other trade sectors how how are they doing I would say that it is not a factor of whether discretionary is doing well or not it's it's the Chinese consumer behavior has shifted for quite a while now right the the favor you know expert experiential you know trades and trades that provide them them some meaning and you know affordable manner right so so what that does that mean that may asprancial would be F&B right but you personally need to come together

socialize right you know IT you know in China they are very tech savvy it brings meaning to them they choose to buy you know the newness technology right and then you know they can share with the friends what their purchase right and poison hobbies right that's affordable luxury for them so the lead there you're no longer choosing luxury goods right but things are not give them some excitement in your life they can collect those items you know post it on the social media right so those are the things that that we've been seeing continuous strength jewelry of course you could say is discretionary but really as I said you know it's driven by the fact that because the economy

the the whole situation is globally uncertain and people once some certainty and go is something that offers a safe haven you know safe even you know characteristics and that's why you know we have seen go or investment go really that projects go quarter before the VC are now in terms of other discretionary you know traits that may not do that well you know you can see that fashion continues to have you know single single digit you know drop right as well as some of our shoe and back categories right so it's not all discretionary trait is doing well yeah it has to be you know quite quite focused on you know the trends that are trends consumer going towards today okay thanks

our jump back to the queue thanks thank you thank you you can eat up please yeah actually read this for the presentation I'm just wondering whether you could share there'd be more color in terms of your outlook for render versions for the new economy assets in the second half of this year please second half of this year I think Bp will likely be at this levels right you know either high high single digits maybe touching you know the trends right so we explain what we are doing right now is to drive occupancy you want to make sure that you know space is very appreciable right so you want to make sure we fill it up the space as much as possible and that may come with some sacrifice in terms of in my rent right for logistics I mean we did

that very normal at one tenant right that that would that number that would stick around for a while right but we don't see many of those big you know family wars happening at the end but it is a very careful for that question in terms of the veto versions I think previously you shared that this is likely to remain around current levels for the second half of the year so this one doing whether this implies that you are still more concerned in terms of stabilizing occupancy versus debt trade-off in terms of render growth is what we do right thank you yeah I get it's probably flat or better because there's a lot of I mean the first half unfortunately had many of these repositioning you know happening in the first half right second second half we have

you know mobile news to share when as our EI architect you can already see very good progress so there will start to repeat the version numbers okay got it there's a lot of other kind of thank you yeah thank you ENA ENA for the questions that we have from the floor hi hey sorry this turns again from Blipu Morgan but I asked on potential divestments outside of the seaweed you know you have discussed on divestments outside the logistics properties is that still the potential targets yeah we are we are looking you know we are looking constantly at popular reconstitution options right but we also have to be cognizant of the fact that

you know the market is weak right so we certainly don't want to sell into a market and we continue to observe the market you know including you know what other people are injecting into logistics series for all their assets and that's a good data point was and we're starting it and then we're seeing whether at those prices you know in those locations whether they are you know buyers were interested thank thanks and outside of the series you know for some of the the smaller retail balls is that is that increasing interest I would say I would say the if I

look at the transactions today the ones that make more pricing sense have been in the seaweed sector yeah the private deals have been you know for a few in fact between especially for especially for some of the tier two cities right the fact is you know when the liquidity is lower you know the tier two cities actually a more different trade right so so in the series market at least you know we have demonstrated that you know all about the demonstrate that we can trade some of those some of those tier two assets you know by securitizing it in per series so I still feel

that you know for our retail assets at least at this moment in time the series options is the that's right if you want to if you want to know that's anything yeah and would you only look to diverse to CLCR I mean I mean given that there are probably some typing like you know politics sometime before you can do the next divestment into CLCR assuming there is a first really less that would you would you look to sell through other few weeks to see other series yeah at the series beyond CLCR okay first of all I mean we can sell to anybody here we can sell to see the the series against we can sell to the party buyers if there are any right but I explained the

reason why why you know where we see you know pricing and activities at this moment right in terms of selling to a series they are not within the capital and rule at this moment in my assessment is that that charges probably quite low if you look at how the series in the series evolving right now right the most of the series that in setup has been sponsored by right and assets all came from the sponsors and injection the asset the next asset injection the follow-on injection has also been from the sponsor and and that I think is clearly by design right the you know and the

regulator and the RC takes a keen interest to each asset injection right and actually as a lot of questions with regards to each asset that goes into each week right you can understand that you know for for that reason alone if you're trying to buy a party asset and trying to get it injected into a series and we will regulate the real vaccine process that is as rigorous I will say as and the RC right it's not really something that that most most seller would appreciate you could think sometime yeah especially when you're doing all the data okay thanks that's all I have

thank you thank you Terrence can I pass the time to Gulabri Gula yes yes oh yeah oh gosh oh yeah oh hello hi hi Jerry I'm just back on the the seaweed question that Terrence asked if the pricing is better within the seaweed why would you know the sponsor offer the property to you instead of CLCR I mean that the more for the other more that you know capital the capital and group have that you have the right of first refusal to that's the first question I answered that question first yes yeah yeah so as as I've

checked before I mean we still have me right of course refusal right that that covers about 18 billion rupees or retail related assets right the sponsor itself have 18 billion sing dollars of just purely retail with the assets right and that I think that also does not include the reference city you know portfolio which is about another 100 billion 120 billion plus renaming bill assets and this is just you know from the sponsor so the the pie is extremely large right just to start off possible right second you know that there is a there is a sizing difference

at this moment I mean when the when CRCR get started you know the size is just I think what we've just below three three billion women P right in comparison now we are 4.7 billion sing dollars that's about 22 to the three billion women P right so some of those assets that the sponsor have will be pretty big significant right probably not something that the CLCR can take on you know at this at this stitch right we also have the go through its its own you know character raising its own approval for sales and also need of course the shareholders to you know approve as well right that Lee right also related the size right you know CLCT that us you know we

more flexible right we can take part stick we can also take proof stick CLCR the the series can only take 100 percent stick right so this is a large asset right a good large asset a good price point right we are flexible enough to take some of that some some of that asset you know progressively right where's you know for CLCR they don't have the option at this point times really quite binary right and I've mentioned a little bit about the rigorous process that you know it doesn't as an injection the NDRC and other Chinese red with this you know involved with you can tell from our own example we

took about two years to do this you know set up this series sort of that thing and a timing you know it's also an issue in terms of you know injection into a series after leasing for example you know again there's additional rule one year more time for you know the next asset injection can take place right so there are multiple factors and then you know the in terms of asset itself they are looking at the series is looking at more income peak income producing assets whereas you know CLCT can do a little bit more value at you know opportunity where we can see you know some improvements we may and can we can buy asset that needs a little bit of AI or some recompreting duration

that let's certainly use more flexible or in CLCT spot yeah so so I would say that you know both reads would have their own focus would have their own speed to market if you would and CLCT have some of those advantage right but of course CLCR have their advantage as well The second question is more in your Hangzhou sorry phase two did you say that you the new tenant that is back filling the 20% space that was vacated is was did you say that the rents are higher than the exiting rents do yes so the service tenant service office tenant in Hangzhou phase two that

that predomated thinking about 20% of that you know phase two and now a right they were we treated them as entertainment right at a time so they had slightly lower end so because now when we took over the space and we are you know that thing to smaller tenants right we are able to push up you know the rents both whatever that this original big tenant was was paying how much health did you did you mention the amount about the old rent I didn't mention it but it's it's it's a double digit reversion yeah and do they start paying this year do they

yes they start paying this year yeah but there's some lack like because there's some you know as we sign up we have to you know give them some feedback some of them maybe some rent free you know okay okay thank thanks um yeah thanks I'm not supposed as any chance of putting the business parks in it is in a series other is that well in the current market there's already business park series so that that factual point is there are business park series in the in the market and and you know if you have to come up capital lands plan we are focused on making sure our retail series in launch well right and then there will be a few plans to see whether they want to do

other types of series okay just to one last thing on the series is there a minimum size there is not a minimum size size of the asset size assets okay in my recollection there's no minimum size yeah but most of the series when they go up you know in the market they have been about a true you know now they have been about threefold in the sort of you know oh no okay very empty yeah okay thanks thank you thanks that's right very good hey had your ear yeah I'm back so maybe just extending to

Goula's question if say capital lands see capital lands do come up with another series a position and new economy assets would that be something that you want to participate in yeah because also mindful of your 40 30 30 long term target as well and investments has mainly been in the retail space for you um I think number one maybe I address asset allocation at this point although we are you know increasing our financial flexibility I don't think we'll shift our asset allocation by too much you know we've discussed we have investors and our core we want to make sure that there's that we have relative resilience you know you know portfolio right so that's that's one

thing you know the second thing is you know but we also participate of course that's but speculative but you can imagine that this sponsor definitely would put us in that discussion since we have worked well together right and you know and certainly we are part of the whole capital and if itself our unit hold us well to be able to monetize at a at a good price certainly we will join in okay understand Jerry and back to the retail series understand that oh they beat the into fire hit right that requirement would they look to for future injection into

into the new retail series sorry Jerry didn't you sort of broke off when you know really a part of the question which would be big that oh okay yeah so Jerry I think one year post IPO the series can acquire again a retail assets what would you speculate them to be a requirement for asset injection on the series front yeah because there's no minimum size etc and probably the accretion is going to be much easier for them yeah ask me the speculate what kind of assets we'll go mix into yeah so could they one from from CRCT like essentially if there's any that could fit their their view I think see CLCT CLA and CLD are now all join that the joint strategic

investors very little bit of biggest you know share with us in that series so all three of us you know we'll look at our own strategic plan and see we have anything to offer to the series if if we want to right so it's a little bit difficult to speculate what what what most mix that will go into the series but from our perspective the same principles that why we selected we're still applying we want to select you know asset that we believe we have basically a track full value from right and when we sell that when we sell that when we sell the asset

we must have a good use of proceeds for you know for the money that's coming back okay thanks yeah thank you Joe again over to you next step hey monitor just wanted to double check on I think you can't answer this just now by just my chair on it in terms of your sense for injection of assets to see for example so if you divest for example the the the car future although most likely be that you divest to it's a re-rether than say a private do you for divestment with other private investors because you

expect that think get better values or better values of a divestment for an asset and in that way can you stop to be so when you divest you want to expect this minimum pricing to be met right at the very least okay first you know I did say that at this moment where it looks like the supermarket offers better value for the retail asset but of course you know market means a more yes I could right so this at this moment I can say that it's because you know I see evidence of you know values being stronger there so that's that's that's one uh to uh you're asking about the

I think at L.D. for us when we divest we'll always look to the party that can offer us the best pricing in the interest of CLCT so yes if CLCT at this point as Jerry mentioned offers the better price we will look to to to divest into the seat but but um right now I mean you're also definitely open to talking to other top party if the deal works in the best interest of us so what's a significant question? The second question is about the minimum pricing I know confident on. Oh okay okay well actually uh this I mean the first of all the the floor price I set is based on the two independent valuations so we are actually following M.A.S. regulations

right and and uh we cannot sell lower than the lower valuation which is 748 million right if you ask me whether we I would feel confident when we go the market after the IPO price I would say I feel pretty good given that uh you know the market has been pretty uh for you you see okay so uh just just a lot on the first one then it's your your the sense is then is that it's in retail investors and sponsors of series are more optimistic about the general Chinese property, carbon industry rather than say more private investors like by a set of you guys example right it's set the indication that you guys are getting from the market so far.

I think I was surprised to say that uh the the the way that uh you know uh to the Chinese authorities credit that they have made you know the this series product uh you know way transparent to and easy to understand uh for the investors in the China market right and of course I said you know the you could say almost it over regulated but they put the uh they put their stem on it uh and really that each asset that's going into each series uh you know almost like the stem of endorsement is the Chinese investors a lot of confidence right when when you know a

series listed you know so uh when in an environment when people are looking for uh for you and they're looking for save use that someone has scrub it and safe right uh the multiple layers of uh of safety there's uh sort of being being offered through a series for duck right that's appealed to many domestic investors right so at uh if you look at the consumption series uh the trading you right now is about 4% uh of below 4% for some of them from stronger ones right that is still better than insurance player who needs to meet the cost of funds of 2 to 3% right

the the the options are in the past investing government bonds which have failed from I think uh main trip last to now uh below 2 right uh so it's below the cost of funds right and uh for the retail investors to put their money uh in uh fixed deposits that's 1% right so certainly you know that that uh that po-you chasing an environment make this uh safe uh perceived safe for that to be very popular you know uh among the uh Chinese uh investors so I would say I would say that that's helping it right uh you know okay thank you turn

thank you can we hand over the time to Michael please um hey Jerry it's Michael from UBS just a quick one um I wanted to just uh get some clarification on a comment you made on the business park space so you mentioned at the Hangzhou phase 2 um you're getting double digit rental reversions for that um if I locate a business park reversions for the first half that's minus eight if we we move Hangzhou phase two what would number be uh I don't have an exact calculation of it but you know you know you would you will know it's probably uh uh higher is probably between it to 9% negative um you must remember the the replacement then and then we uh uh having

just 20% of Hangzhou phase 2 I mean the total portfolio is uh you know much larger than that okay so so you've the minus eight is basically dragged down by a lot of other renewables that you're doing that's right so if you exclude the uh uh I think as has to Hangzhou uh phase two itself you know as I said probably about minus eight to 9% you know you creep up that does not negative okay got it thanks very much okay thank you thank you Michael for your questions since we have already passed the 10 o'clock map we will conclude the session for today um just feel free to reach out to me if you have any questions so thank you

all and have a good day thank you