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.