# CapitaLand China Trust — 1Q 2026 Business Updates Briefing

- Event: 1Q 2026 Business Updates Presentation & Analyst Q&A
- Date: 24 April 2026
- Kind: Automated speech recognition (unofficial machine transcript)
- Source: https://webcast.openbriefing.com/CLCT_1Q2026/

Unofficial machine transcript. Prepared by SMID Research from the issuer's public webcast recording by automated speech recognition, without a full manual check: expect mis-heard names and figures. The text is not divided by speaker; timestamps refer to the recording. Not a company publication. The CLCT's results webcast is the authoritative record. Copyright in the briefing rests with CapitaLand China Trust; contact contact@smidresearch.com for corrections or removal.

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## Opening & Operational Highlights

**[00:00:00]** Good morning everyone. Welcome to CRCT's 1Q 26 NLS briefing. I'm still eating in best relations for CRCT. With me today we have our CEO Jerry CFO Joanne, CFO Desert Link Tom and here on IP on your home. For this meeting we will start with a brief presentation followed by a Q&A session. So if you have a question please use the raise hand feature and are there at the time for you. So if that Jerry please go here. Thanks Jerry. Welcome everyone to CRCT's 1Q 2 0 26 Business Update. Thank you again to make some time this morning to attend this presentation. This is a business update. So I think it will be relatively short. There will be more Q&A time later. So CRCT we are the first and

**[00:00:50]** largest China focus aspect. So now of course we also have connectivity to the C-read market to us joining the listing of the C-read when the Xiaomi Star Action Transporter. Our current dot assets is 4.5 billion single dollars. We have 8 retail more, 5 business, 4 logistics assets and most of our assets are in tier 1 and tier 2 series. Distribution you using FY2 0 25 CPU with the unit price now is roughly about 7 over the same. That reflects some of the unit price movement from the broad marketliness after the start of the run work. In terms of our asset allocation you can see that directly unchanged our retail is still

**[00:01:36]** our largest and most resilient asset class. Same 10% of course rental income that's the biggest and then the remainder is what we term as more new economies or business parks 27 and largest six bucks smaller than 7%. In terms of the different segments generally speaking the retail has been showing relatively more resilient with our AI effects starting to flow in Q1 of this year. Our logistics stabilize of course some many sets that we have done in 2, 0, 2, 5 and business parks you will see that continue to have weekly money. So overall portfolio

**[00:02:22]** gross revenue and NPI drop about 5 and 3% respectively and that's mainly due to the diversity you're putting like effect. So encouragingly on sims now basis you'll see that our portfolio gross revenue and marginally negative that minus 0.4% yield and NPI actually increase 1.3% yield. If we dissect further for retail again on the headline revenue declined by 7.2% but again mainly due to loss of the voting revenue which alone was about 21 million in NPI. So without that

**[00:03:08]** if you exclude the same store basis it narrows to the drop net narrows to minus 0.5% yield in the other effect is for retail instead the completed EIs started to provide us with new revenue flow that's about 5 million remaining per quarter and it was somewhat offsetted by some of the business continuous we see at C9, Rank NMR and I don't even believe. For BP and logistics the combined together the revenue is right if we flat yield in year. What we have done of course we continue to focus on operating efficiency operating costs on a new basis we reduce by 3.7% on sims

**[00:03:55]** store basis. Next if you look at some of the retail operational statistics for first- Q continue growth in traffic and tenant sales you can see traffic grew by 3.3% then it's used to grow by 5.5% and move over this 10.6% generally faster than we have seen on in terms of growth and average of a whole year 2.25 over that we are 2.25 which grew about 2.2% for a whole year 2.25 but really we are continuing the strong momentum that we saw 4.25 over all of course healthy 17% again there's a slight drop in pop course and that's due

**[00:04:44]** to the good healthy sales growth that we have seen. Trick categories they have done well if I'm being 4.2% that's not a surprise here has been you know a bit category for us. Again last quarter I shed the same trends are driving this FMB segment we introduced new high performing training brands which are poor factors was shoppers growth also was brought base you have all local preverts Japanese sushi chains and breakthroughs all doing well. IT up 5%. That's again boosted by consumption voucher as far as we do not show we expanded more digital brands you know AEA and Chef who are once in you know brands are quite way continue to do very well

**[00:05:32]** in our malls. Joo-y watches plus hit percent again driven by the trend in best and gold. Poison obvious again a standout plus 59.6% this is quarter continue popularity of the collectable choice market. So again pop map was 100 over percent up you know near India. We need to again get very well the minisole and then the trip will go east from they are up about 58% in terms of sales growth. The other categories that are not in the slide that I can share a little bit. Last year we did a lot of supermarket AEA's so the supermarket upgrading in one thing share for settlement did well. So those powered our supermarket category

**[00:06:21]** actually it's there in the right hand side. We had strong sales from there 80 80 million remaining P right so the broke days of course that double digits since last year supermarket some of them have closed down and once they were opened this market growth good traffic growth at the three more that you know they will open up. And I category that did well sporting category we also opened at the catalog in Rock Square (Guangzhou) and very good anti-quenchy install in a share full. So this sporting category this quarter also hit very well plus for the 6%. One real surprise for me is that the fashion category a treatment positive this quarter was positive 1.4% it's more

**[00:07:10]** positive and growth was driven by the stronger most. Some of the names that have been growing well was it then which is basically winter where thermal wear and perhaps it's driven by winter season we had a strong overall growth of 40 over the sales growth. Why no one quarter isn't a trend yet but so the lead is encouraging because we have many quarters where we have not seen fashion had a positive year's growth. In terms of occupancy our most continue to have high occupancy so this quarter we had 97% we almost all more above occupancy of 95% except for a civil scene which is of course we

**[00:07:57]** are continuing to re-position. In terms of reversion similar levels the 2005 at about minus 2% we have two ankle renewables affecting you know our version and we are doing some ankle renewables like normal and item. This is parks occupancy is at 86% slight drop from 4Q to 0 to 5 usually missing momentum in the per skew is usually slower but our business park assets are performed continue to outperform our supermarkets this is quite generally softer and rather of business parks. We see improvements in things through and a send us innovation hub but you know they are there are small there are the clients in some of the other assets for example

**[00:08:49]** AIT a send us innovation powers of first-year drop due mainly due to one of the BPO 10 and that did not renew upon expiry we are looking to feel that. Huncho face 1 and 2 challenging markets which we shared before supply wise occupancy drop will form two bigger e-commerce tenants that predomated that took up about 4% space of 102 previously was also shared that 102 we had some X master lease service office office service office lease that we took back that's about 55 1000 square meters and then where we suddenly now from 70% last last year we are now up to

**[00:09:34]** 7, 7, 4% back fuel right so we are continuing to back to the next space overall business parks for reversion set minus 11 we are of course prioritizing occupancy through actively trying to retain our tenants and converging conversion of the new leasing pipelines you can see actually this this water we do quite a lot misses almost 60,000 square meters of renewables and renewables in in the scale so we are working hard at it logistic spot smallest part of our population percent of GRI we can completely say that I think the logistic popular has stabilized we further improved in gentle driving the occupancy of the asset to 96.2% and also improving the overall logistic

**[00:10:22]** block flow to about 99% so we feel that you know rans have almost whatnot mean this logistic portfolio will aim to continue the chief fuel occupancy at this level capital management before I hand it off to link to talk about it I would like to just highlight that in terms of our average cost of debt this quarter we have managed to cut it down from from 3.3 where we ended up in the year in those 25 to 3.1 right benefiting our efforts for monopoly financing and overall you know constructive rate environment involve singularness and revenue so for this quarter you know what the combined efforts know we we managed to translate loan interest rate savings of about 2.9 million

**[00:11:12]** single dollars so that's about 80% you're in your job so overlink the uh thank you gerry so capital management remain a core strength and priority for CLCP so our focus is actually very clear right we wanted to maintain a healthy balance sheet and then at the free lowering our cost of borrowing and protect distributions they believe it across the cycle so as at much 2026 and our CRCT step level has slightly a slightly higher than one quarter ago following our distribution there has resulted in aggregate leverage of 41.4% which still remain comfortably within the regulatory limit more importantly like what

**[00:12:00]** gerry has just now highlighted we actually have reached has achieved year to date a rich cost of debt of 3.1% this represents 40 basis point reduction year-on-year and 20 basis point reduction versus four year 2025 these are tangible outcome from active actions taken early in 2025 when we provide TvV finance and shift funding from higher cost single-adapted into lower cost limit debt and also we have increased our proportion of remaining limit debt which has strengthened our balance sheet against resilience and makes it more resilient against the effects movement

**[00:12:48]** so in as we deliver the balance our singular and remedied debt mix to stay flexible across various macro conditions I want to highlight that in the small table on the upper right corner right that actually shows our distribution sensitivity on singular and remedied interest rate movement we now have more floating that floating rate that in renning be in singular right this actually positions CRCT to benefit from monetary easing in China while being better suited for any potential volatility in singular interest rate even the global macro environment

**[00:13:34]** and with lower borrowing costs there has also strengthened our credit profile our interest coverage ratio has improved to 2.9 times under stress testing area whether 100 basis point increase in average costs are following or 10% decrease in our indicator our ICR interest coverage ratio is remaining is able to remain comfortably above 2.3 times well above various regular tree threshold CRCT's debt maturity profile also has its very well-stacked with annual refinancing kept at around 25% of our total debt that is to manage our refinancing risk the only off-shot

**[00:14:26]** bond that is maturing in 2036 is remi B 600 million 3.8% F-D-Z bond which is due for refinancing in Q4 2026 while CRCT has sufficient committed bank facility to refinance this bond but we see these as the good opportunity for us to further diversify our cost of funding as well as the refinancing ance of the debt and meaningfully lower costs so we will actually keep unit holders informed about our refinancing efforts in the following quarters so finally we have strengthened our nature hatch our remi B denominator debt now represent about 60% of our total borrowing including

**[00:15:12]** other hedging instruments right we have around 78% of our total debt in remi B denominator form so in summary our capital management strategy is to deliver a very clear and measurable outcome for our living holders lower cost of debt and stronger resilience to interest rate and ethics movement right so this effort underpin our distribution stability and protect COS provide CLCT with long-term growth capacity and over to Jeremy okay thanks Linco I'll just end off with maybe just summary of our strategy in 2026 which is really a continuation while we are done 2025 you know we are trying to build a portfolio in the long term that align with China's

**[00:16:03]** focus on domestic consumption and innovation driven economy how we are doing it we create value here in 2025 established a long term capital recycling vehicle by C C C platform these will continue the support are ongoing portfolio and constitution 2026 we made it target is to expand in projects and expansion in our new assets especially we deal why you know continuing to make sure our properties have stable occupancy unlock value what we have done of course is last year we have recycled capital more in voting in 2026 our first priority is still to we buy an asset to be placed to finish

**[00:16:56]** and reconsider what we have sold in the voting but we will continue to work on and see whether there's suitable opportunity to recycle some of the non-colon material assets where we feel that you don't value that pick extra value our AI's I think is clear for everyone to see have been successfully completed and and you know helping us in terms of organic income in those are two six right so that will be continued to be a key path for us we are trying to identify whether we can show more value from existing assets and as we look for new acquisition we also want to see whether the new acquisition set where you value things have potential and room for us to

**[00:17:42]** continue to apply our AI expertise on the proactive capital management I think income has already actually we'll continue to drive down our average cost of debt while reducing our effects we swear profit so that's the end of my presentation I hand it back you know to Sui for Q&A session thank you Jerry for the presentation now let's proceed to the Q&A segment we have our first question from Terrence please go ahead hey thanks thanks Jerry for the presentation thanks congrats on the actually the strong numbers I really wanted to ask on Q&Q I noticed that that's it in Fofkotha last year actually

**[00:18:30]** both revenue and NPI did drop in in sort of like the mid to high single digit number on the Q&Q basis in Fofkotha and this first quarter it improved right substantially on the Q&Q from Fofkotha so maybe could you share on the Q&Q both links in the numbers that's my first question yeah maybe you can't set this best I will answer that and if there's some additional info that you know the CFO want to provide you know you can converse well for the first few numbers I think we look at this slide we sort of have only laid it out of course the big the big effect is you're

**[00:19:16]** wanting right for in terms of the revenue and that's I think I mentioned that's actually quite quite big number that's about 21 million that we lost for revenue just because we was we digested but if you exclude that you look at the other components right we have the AEI effects you know full-in-true so last year most of our AEIs are completed you know some at the late part of the Q&Q some at the late end of Fofkotha so most of the income really haven't come in but this year we have full contributions from all AEIs just now I mentioned that that the string there is about five million

**[00:20:02]** revenue to the quarter so that's that you know the key part of you know why I suppose you know you saw that retail revenue has on a central basis has been quite stable right of course as I mentioned it's slightly offset by you know some of the poorer assets talking about C9 and ranking M1 right so that's that's basically how we come to about flat excluding avoiding for the retail revenue. Mr. Sparks this was by NPI wise actually if you look at the segmenta breakdown you would have saw their actual business firms also improved like part of it was because you would

**[00:20:51]** last year you know we had been trying to backfill some of the spaces in actual phase two I mentioned about the service office master technology we took back the visas from and then start releasing up last year we said that you know we finally managed to miss it up to 70% but a lot of it was really coming to the back end right after year and then again you know the income flows and impacts started flowing in two zero two six right so that's that helped you know basically you know together logistics get us to a position where a revenue is flat rather than declining in those in those

**[00:21:39]** sectors and of course generally we are trying to maintain cost control so I mentioned the cost control and we have saved about 3% percent on central basis so that's why on overall basis you can see the NPI is up 1.3% excluding inviting some important things in fact is that is that that's very helpful maybe if I can ask a separate question understand that the CV regime has changed quite dramatically I mean your sponsors looking at another separate CV so wanted to get your views on you know how

**[00:22:25]** how the changes impact the existing CV and whether you may look to divest as that's fire CV or you know how are you looking at asset divestments. Okay two questions I think one is about the new series and the relationship in pass and the sponsor second one is whether we are looking for more securatization or divestment from our portfolio into the new OCAI thing goes up a good question so the new series format is something that really picked up in concept only end of last year and it's something that the CSRC is in China the security is regulator driving very hard to get going

**[00:23:16]** off the back of quite a successful or ready-quest successful C-mit market that they have right now and capital land is a very reputable you know we played globally and also in China right has been invited you know to do that sort of the first pilot first pilot batch of you know this new series format the differences I can let Lincom explain you know the two differences in a shot wow but when this was was discussed right certainly CRCT was also in the loop and we we also you know consulted to see whether we want to have any asset securotites

**[00:24:08]** into this vehicle right new vehicle that's coming up which probably you know be second at the queue by the time they listed obviously right and we we decided that since we have done our first securotization quite recently right we wanted to pace out you know the pace of our securotization or divestment so that you know our DPU can have some income stability as you can see from the results you know you know we the even though what things divestment was not that big you know we still lost some income and we wanted to see whether there are opportunities to basically basically buy some assets to put a do basically replenish those in front before we you know go on to

**[00:25:02]** to the next securotization right and if you look at you know the general market for a series it's actually rare boy and so we are in no hurry the market will be there for quite a while for us to take advantage of when we when we need their liquidity right so it depends on whether you know we have the capital needs maybe we find very good assets a very good attractive news that then we we may think of you know activating another round of securotaization this you know can be explained the difference between the new and all series as well as you know what people are seeing in terms of how we work together yeah yeah so on the new regime if I may we can call it you know commercial

**[00:25:54]** series just to terminology differently from the previous regime called infrastructure series they are actually quite similar in terms of leverage the legal structure and all that I would just say there are two to three main differences that drives them one is the speed at which I think the regulatory wanted to you know move this faster so I think they have sort of the approval window will be shorter because last time there's a NVRC CSRC sequentially have to approve but now I think it's all in the CSRC's review so there's the number two I think a set class

**[00:26:42]** they've expanded into a more bigger real estate focused commercial a set class namely including office hotel of course retail are still in it and all other more generic type of rare estate are in comparison they are all submitted to this commercial real estate which previously it was very method number three I think they've also relaxed certain rebounds no applications so I will not go into the detail but having so basically I think this is welcome generally by the market as a a hope and from our point of view I think we are indifferent as to you know which vehicle is

## Analyst Q&A Session

**[00:27:34]** can be our typical I think there were also questions or why there are two those can can do CV in the underclass name I think the regulators also suggest that that could in the future be you know actions that to take care of that but that will be a next stage action yeah okay thank you thank you thanks that is very very clear hopefully we can see more CV to come that does I have thanks thanks Terrence the next question is from Jared in peace to her in high morning Jerry and management team progress on the more stable than expected set of results

**[00:28:20]** maybe just tying back to Terrence question or divestment you'll probably look to phase out a little bit more to reduce the fuel impact can we also say the same for the existing recycling to your to CRCR in terms of a video assets yes I think we view it the same actually because it's it's kind of I would say a seal of tools that we have we have you know disposal because we are part of the same same group right so we we will whether it is to the new CV or the old series we will place it according to our own needs okay okay thanks Jerry you also mentioned about acquisition

**[00:29:10]** opportunity by seeing older retail assets just wondering would you want to place that with a divestment or if the opportunity is really very interesting will you actually consider doing EF or even that german now is a seven for the one percent well it depends on how attractive the view and basically the timing that we have basically to completely so there are quite a lot of limitations yeah so really depends okay thanks Jerry maybe just squeezing in question on logistics and business planning logistics reversion was a positive surprise is this least specific or

**[00:29:57]** already reflecting a potential bottom early bottom for the logistics asset class within China yeah I think it's I think it's quite quite been a trend for about supporters already you know you won't get getting at a little bit more color but we have tried to communicate that we feel that renters have really resected so that's why you look at the if you look at the reversions it's actually just Molly the reverse in mainly come from if I recall currently quincent and that's and do because these two are the ones that have a bit of change in these but having said that I

**[00:30:45]** think our observation of the market I think we have that to produce the as well that we will hopefully seeing the renaissance stabilizing and you know following two years of quite a I would say drastic job of course we can't say for the whole China because I think not part of China some of the parts in China may be in a different slightly different time and cycle of the market but in the form cities that we are in I think this is generally observed okay okay thanks Joho yeah China very big maybe just on logistics right if you look at your four assets how many percent of

**[00:31:32]** the leases are still on the rents that have yet to be read versus the already marked market rents I would say that our lease are generally in the proof he has kind of a lease cycle and then we have more or less done with the market reset setting that's you know my view okay so it's like one more year to go there uh no I I would say that we have more or less you know we said to the market reader yeah although some of them are two three years but I think we have done a bit short in the last one and two years yeah okay so good thank you Jerry and Joho

**[00:32:21]** thank you thank you the next question is from how many can you go here hello hi Jerry and Tim home in from OCDC here are just a few questions uh I noticed that we tell our reversions are still negative despite the uh the trade sales going up so as causing the divergence it just a tiny issue or like uh can still be squeezed and related to this question is occupancy costs what should we think about as uh steady state car occupancy costs like trended low to 17% and is this uh going to trend for the lower um and that question I have is on cost reduction 3.7% so it is some of the substantial work

**[00:33:08]** was actually being done to drive the kind of cost reduction and should we be expecting further cost reduction then uh but my third question will be terms of the cost of debt so do you have some like guidance on where you will go to us the end of this year okay thanks thanks for the question uh for questions so the first two I will touch on a little bit before I let you home to take the first two in detail and then I'll play in terms of that's again doing more detail so uh generally speaking uh uh the whole China environment is still in the depression rate so environment right uh so uh so prices are not really moving up right and

**[00:33:56]** and that's certainly true when you when you try to ask tenants to uh increase rent uh but of course you know for those categories and those more that we are doing well we have better ability to ask for uh us for you know higher rents right uh this this quarter I spoke about you know that there was uh for the retail uh there was some thinkers that we we knew uh you know that affected our relations I recall the number without them is minus 1.6 and still minus 2 but still negative right chance to uh still on a negative trend of spike negative uh and uh I shed previously I think last last quarter that what what I mean if we believe that you know sales trend

**[00:34:49]** leading indicator of the versions right uh of course the timing you can debate of how how much we need to get there it is right uh we we have had uh you know a year almost almost a year plus or two years actually of of sales growth right that ob strips uh obviously ob streets went to go right so that that to me uh shows that actually our tenants are actually in a healthy position right that should continue to uh you know underpin you know the strength of our retail uh portfolio in terms of uh the savings we do work very hard on them the details that we don't talk about it uh and in terms of uh for both operating expenses as well as our interest uh you know

**[00:35:40]** we are working very highly so the first uh details may be on operating site uh occupancy costs maybe you know you want to add more color on that yeah um thanks so I I think that that's a really good question actually we are also trying to you know understand uh and uh in my conversation with ground team uh we are also trying to see whether that's room for us to drive uh rent up uh so I think the uh the 70% is actually already below the levels of uh before the levels uh the pre-COVID so but then in I think uh our what we hear is that when we talk to the tenants they are still

**[00:36:30]** relatively cautious on you know uh uhpping the rent although they are able to you know uh still do good business but I think uh the resistance is there because for one reason is that the uh they are also sort of uh in the discretionary environment uh trying to promote uh and do more promotions uh do more sales events so they also felt that margin uh the business margin is also uh not as good as the good old days right I think that's number one and number two I think in terms of uh the aggressive expansion uh tenants uh what we are seeing is more in the

**[00:37:18]** drinking in the big creams uh some of them still do uh but uh the large format kind of uh tenants F&D questions uh still uh sort of lacking uh or rather the willingness to expand is still uh not there overall uh I will say so we would want to uh work with them uh see how to drive that uh but uh I think at the moment uh we are still seeing the rent in you know red rather uh uh so that's subject right uh so I think that will probably take a bit of time but uh I will hopefully that uh with now uh we see the new data on the you know uh DPI and on that uh hopefully the uh

**[00:38:06]** CPI will also be able to go into the positive territory for a longer time right I think then people start to feel that uh uh the inflation cycle will turn I think that will help us uh generally okay we look okay uh so for the interest saving yeah so for this quarter uh we are very encouraged to see our cost of ordering has actually come down so yeah uh so this is actually uh uh years of effort since 2025 we have been actually very much focused on lowering cost of debt and also uh to use the remaining people rolling uh to actually uh lower our overall cost of borrowing like this actually

**[00:38:53]** take time to filter through because uh we do have some expensive swap that actually uh need time to mature and be set so uh I think for now I guess uh this level of uh cost of borrowing I think uh we we hope to actually hold it there because we still have some floating rate that uh as you subject to uh uh macro environment right but we we do hope that we are able to uh hold the interest rate here at this level and then uh we are also looking for opportunities to further reduce our interest rate like take some uh take for some example uh our FDC form that is actually uh currently the passing

**[00:39:38]** coupon rate is uh two uh three point eight percent right so uh this form is actually coming new so I think uh we are able definitely to we finance this form at the below three percent kind of level uh even better than that so uh but this bond will actually uh any refinancing effect will probably be few in 2027 and when they actually are interested in contributing for years right and uh also we do observe that uh occasionally uh there are opportunity for us to swap our uh singular debt into to deming the debt to cross currency swap because the interest rate environment uh actually

**[00:40:26]** is still quite volatile uh on the long end right so uh so opportunistically we are able to capture some interest saving when we swap uh singular into remedying using cross currency swap uh that is actually we might be able to actually pick up a few interest savings here and there so generally uh if you want to look for some guidance I guess we would be able to keep at uh this level like three point one kind of level and hopefully can do better also want to highlight that uh earlier I mentioned uh our uh fixed and floating rate that right is the ratio is now 65 percent and that actually allows us to enjoy any uh interest rate savings if the uh singular rate

**[00:41:16]** actually continue to stay low and then if there is any chance of remedying uh further magnitude it seems coming this year okay the uh operating costs uh oh yeah okay so sort of operating costs right uh so the team has actually been very uh focused on the cost measure right uh so a part of our operating costs actually come from uh revenue linked uh expenses uh because if you look at our cost structure uh we have a lot of expenses uh including the public tax as well as uh some of the management fees I actually linked to our revenue so so this part uh the decrease of portion of

**[00:42:02]** it is actually linked to our revenue uh decrease because we have actually uh some uh our u-hacking right has been that as that and on the operating fund right we have actually seen uh significant savings in maintenance costs right so uh this uh something that we continue focus on and to actually uh to actually save the uh NPI yeah thanks and then maybe I just add a little bit of color on that so uh the the the property cost savings of course we both uh it did very hard actually with our property managers who who of course you know is our uh sponsor right so uh

**[00:42:49]** uh as Lin-Punze if you take out the new working uh in fact right if you look at same store basis the ministry fund several maybe half of it is uh the revenue related uh you know cost drivers some of the costs you know they see those uh in color related to the revenue levels the other half somewhat like uh I would say somewhat like this cost uh but we have trimmed that down uh by quite a bit uh and uh the first queue actually uh you know uh we have made very very double digit uh you know uh sort of cuts to those uh fixed costs on the year and year basis so on a combined basis that's why you get this uh minus 3.7 percent thanks a lot for uh you know and I'm saying thanks so I'm

**[00:43:40]** agreed to be with you. Thanks a lot. We have a next question from Kenzie. Let's just go here. Hello uh I'm currently from UBS um if we look at page seven uh the one key on your COC improvements um is a way to just maybe talk through what would be like from the bottom of the list like which sectors are more I guess uh worrisome you know not performing that well. You okay you're talking about trick categories that uh we may not have shown all right don't say hello okay uh I would say usually when this question is asked uh last what I would say a question by I told you this this quarter question uh sort of surprised us a little

**[00:44:30]** bit uh so the other category uh the other category uh is uh the beauty category uh the cosmetics again uh I think last quarter I did say we feel the beauty category about minus minus uh single digit you know minus uh I would say maybe um meet single digits uh but actually this this uh this quarter also not it's negative but it's not so bad but so I let you know I let you know yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah yeah so I think from uh well we are seeing the three categories that uh we see uh yeah near job which is more on the study higher side as uh uh you know ranking them big vehicle EV still

**[00:45:22]** uh and secondly it's uh I think EV still is also reflected uh nationwide uh so it is a transformation number that was published uh a long ago uh and I think region and development also dropped I think last year uh we had a good you know uh movie and all the uh this year I think uh the movie had been we haven't seen any big barmasters right so I think that's that and thirdly I think home livings we also but that's a very small trick category but uh home livings has also seen a new client yeah yeah I think we have a three main ones that we see uh drop the rest is a bit more like an expect there are most that do better you know second profession I think as I mentioned overall we see a side positive that between uh more and more

**[00:46:14]** we see differences right so some of the strongest to better uh I think our senior skills uh you know see a negative uh so uh I think the the rest I wouldn't be able to generalize too much I think yeah I mean in in summary I think this this quarter particularly the positive has more than a negative yeah yeah yeah yeah yeah yeah yeah yeah I think it almost sounds like the negatives are not that negative brought near like the range from slight negative to that's also divasic at so toys and hobbies we hope the we hope the trend continues that yeah we don't want to be on trend but but this is one quarter yeah okay and uh next question you know I remind us of the uh R&B H policy again and I guess what would

**[00:47:02]** be effective H rate on this first quarter results okay I'll turn that question to Rito so uh the H policy and fx H policy sorry yeah you're talking about the income right sorry R&B to okay yeah so uh we typically had we look at our R&B export uh R&B exposure and petrol right we typically uh forward looking at our upcoming distribution from China right we typically hatch about uh I mean 75 to 90% and and then probably six to 12 months ahead so that actually really depends on hedging costs because uh I mean let me be a singular depends on the canio that might have some

**[00:47:52]** positive carry which means a forward premium is in our favor and sometimes the forward premium is actually quite expensive so we actually look into these hedging costs would decide how much we hatch and for how long we hatch back generally it's about uh looking forward right uh so six to 12 months and then hedge above 75 to 90% so as you can see that actually there may be a universal thing dollar right uh recently has actually stabilized that actually has helped us in terms of our hedging division as well yeah uh oh uh can you just help us make our job easier or feed effective for uh first quarter or even first half. Wait uh you mean that we're actually in all okay

**[00:48:42]** hedging too. Oh yeah so so we hatch about uh 80% of our forward rate so our rate uh hedge is about a 5.4 point focus a 5.4 yeah around that kind of level. Okay uh that's uh we could end spot yeah uh because some of these hedges was actually done at the second half of last year and then some are actually done at the beginning of this year so you can actually see that the spot rate has actually strengthened especially after the the the the the end point right so uh actually toward the match right then the mean p has actually reached being uh 5.35 kind of level so some of our hedges was

**[00:49:30]** actually done before that. You remove six two traumans and you've got two or six for too much form. Got it and uh maybe just going back to the comment by Jerry uh about wanting to buy first before doing a securitization uh just a question on the rationale like why isn't this also done at CRI level and I guess a little bit more related to capital deployment is there not more value seen buying back or stop now? The first question you you were asking why is it not more with the CRI level? Meaning you say like why I mean if the if the plan was to so call like buy uh or source

**[00:50:17]** for let's say more single in the market to buy and improve and sell like why would this not be done at the CRI level is and like why why would what that was the strategic rationale for doing this at the CRCT level? Oh okay okay. Since strategy why is CRI is not doing it and why CRI is doing it because that is the potential. Or why why would it be done at both levels as well? I think it was a word I would say the objective and strategy for you know a China focus read would be very different from the objective and the strategy of a global asset management or

**[00:51:05]** fund management platform which CRI is trying to you know a CRI is positioned for basically right so you know from CRI perspective I'm sure you have heard Paul and she couldn't talk about it you know it's they not only have China business they got you know business basically across different jurisdiction there as a allocate business according to you know where where you bring them the best growth so in May or may not be China and in China they're different strategies than us we are quite straightforward right because we are we are China focus and China for us is China greater China

**[00:51:54]** which means mainland China from CRI and Maccalf these are the three places that we can look for assets and we were popular with constitute you know we didn't this this countries across asset class that we can really claim or we may you know in future but not perhaps not in the future to look at other asset class right so our our acquisition our divestment our value at but therefore you know continue within within within China yeah so so that's that's quite clear for us I think the other thing that you know the relationship between us and the sponsor is that the sponsor

**[00:52:40]** you know have different strategies but one thing that it's certain is that you know they are supportive of our objective and we would recall we still have historical ropers with the sponsor right so when we are looking for assets that you know we assets to basically inject into the grid those those assets are of course up for consideration together with the party pipeline you know that we generate you know for from from team right so that's that's in terms I think the strategy uh second question is you need buy back right you need buy but I think I address this

**[00:53:27]** in this manner right of course stock price is it's uh sort of uh a full of thousands of things down sometimes up right and therefore you know the trading use presents so accordingly right now trading is about seven percent so in terms of capital allocation right for the same dollar which which we know we are using the same gearing hit room we got to decide for ourselves whether we can find a deal that is basically a creative gains the trading you right and that's our ultimate test right now we saw you know as that only you know end of last year you're only still working hard you know just now I talk about pipelines that we have access to to to see whether you know indeed we can

**[00:54:17]** we can find something that you know we can buy and at value of course you know if you buy by our stock it could be emitted but if you buy something that's an asset that's a creative that means you're basically buying at a new higher than our trading you plus as I said we want to have some value at angle plus but then show to to improve on the assets that we buy in that could actually prove to be a better proposition for the same unit of uh during the room that means okay good thank you Ms Terrence the next question is Joanna Elena please proceed hi Sherry and team thanks a lot for the presentation I think questions from me first how do you see

**[00:55:08]** rent every version for the business part assets trending for the rest of this year and how is the business and demand like on the ground um second question is more on aggregate leverage was the increase in the total debt attempt to revolve on the payout of the effort and if I distribute and what is the ceiling that you'll be comfortable with if you were to acquire an asset and find it with that first question I let you know you're going to take the minutes of your question yeah on the uh reverse side uh business part I think the in between assets we see that uh things we still the stronger one although it also had slight activity is one of but uh the uh the stress really comes from I would say hamzo and uh the the the situation on the ground

**[00:55:57]** I think we have shared before uh for the last couple of years I think there were quite a bit of supply coming on board but uh it has uh sort of uh I think the last bit of the supply should be you're ready in right in that some occupancy uh so so I think uh the within the some activity look at how the other people are doing I think generally we are we had uh close to 70% ready we are also at uh the study above 70 so I think uh the kind of uh competition that we see probably will last a bit longer but hopefully not that long so for this year I still expect that a reversion to be stay within this kind of range uh uh you know uh uh level but uh hopefully uh by

**[00:56:49]** the time you know uh when all the uh the supply graph have sort of been absorbed by market I think then we will see a more healthy situation uh going forward okay thanks uh on on the uh leverage uh indeed yes first cue uh is a factor of a fact that we drew from uh some loans for institutions uh so uh we do expect you know uh uh over the next few quarters some money to come back as we uh you know as we extract uh dividends from uh you know our uh our assets in China so that's uh that's something to uh look out for uh in terms of uh in terms of uh for acquisition you know what what's our limit

**[00:57:36]** uh I think uh generally speaking yeah as the estuary environment you know although MES guidelines uh 50% uh most most estuary will try to continue themselves within 45 right uh and uh I think that uh we are now about 41 so uh so you know different rates of uh different level of hearings also a little bit uh you know we uh we have to look at it a little bit with regards to the uh maybe the cause of that uh as well I think our icir is uh still quite healthy right uh group buffer uh um group you know the one point uh one point five or uh required uh by MES so I think generally speaking of financial

**[00:58:23]** metrics uh still look quite stable yeah so uh that's uh that's what we you know how how I think about uh basically you know the leverage that we can take on. Best clear thanks a lot of Bo. The next question is from Joao. Please proceed. Hi can you hear me? Yes. Hi yes uh thanks Jerry and team for the presentation and the opportunity. I just have two questions the first is uh regarding electric city prices uh not that for your AGM Q&A is more impacted by co-process right than an oil prices and belief co-process is uh probably up about 15 percent higher year to date so I'm just wondering what is CRCT doing?

**[00:59:09]** Any proactive actions to handle the higher electric city costs going forward? Best uh that's one okay that's the first question yeah okay yeah I uh you who can take that uh I think main thing is basically electric city trend in China as well as I think maybe we can talk about our uh ability to cut current electric city consumption at the ground yeah yeah uh I think for the electricity price so far uh based on our survey it has not been affected by the can be that by the various uh situation uh in China generally I think uh we have seen

**[00:59:56]** news that oil price uh the gasoline price has gone up at uh not uh electricity so uh I think the government also have uh have uh you will want to stick uh you know kick him that's they both for obvious reasons yeah so I think that that's uh number one I think for the uh ways to reduce consumption I think this has been always uh something that uh we have discussed in uh hopefully drive along over the years I think we have also tab on the safe on border onto uh mission or uh data analytics uh to actually uh help our uh conditions uh to be able to um drive the efficiency

**[01:00:46]** on the same chilla same uh electricity level uh of course the weather sometimes weather condition fluctuate so I think that can can only help but uh from our point of view I think what we do what we can uh in terms of uh equip our technicians with uh smarter and better tools to analyze and uh to drive the uh to really rate out the other thing I just want to share the day by the I think uh this is still probably our company I mean we are trying to source our electricity uh a portion of from uh you know green uh renewables sources in China some of cities this has become available and uh and a rate that's equivalent uh not more expensive than uh the uh equivalent uh non-green

**[01:01:35]** uh energy so we are also we just don't call uh non-cooler all right so so uh I will say uh so far we have been uh sort of uh procure a portion uh I think around uh study about 10% of our energy from the green sources so I think it is uh something that we are also watching and experimenting uh without you know increasing our cost. All right thank you that's quite clear my next question is regarding uh new lease sets versus new leases you know not that roughly is uh 40 but 40% new lease 60% renew lease across all your segment is that preference and also follow up on that uh any incentives that you're giving on the ground. No you. Yeah okay so uh for for retail uh I think we would uh generally like to see uh uh

**[01:02:30]** healthy level of uh renewals right a ring just between uh you know uh or other new brands I will say right uh new brands injects the new uh vibrancy and interesting ideas uh to the uh malls so I think between 40-50 of new brands is actually quite common uh we have seen before right in times there's a bit more challenging of course than we tend to renew more but uh if we have a choice we we do want to uh get new brands in uh that's uh retail but for business park and logistic I think our preference is more sticky tenants right so I think generally uh the pie will shrink

**[01:03:17]** to more fit uh I would say uh renew right so I think usually we see that figure between 60-70 uh new another for 30-40 in the uh uh new and I mean yeah okay that's the last one oh yes and yes uh okay of course we we uh we do what we can to drive up occupancy and uh uh rent but I think generally we are also uh watchful uh not you know uh going uh over the line so so I think generally our safe-owned uh rent free or uh uh uh uh basically we we do safe-owned

**[01:04:04]** role market uh type of uh rent free uh rent free on incentives uh it's quite typical that uh we have uh first month or two months that's all the renovation uh renovation and it could uh also be some of the market uh where it requires it's uh it can be about one month of uh you know uh rent free uh that uh also happens right so I think that that's something that we will be and apart from incentive I think uh what we want to do is to really be responsive to the tenant needs right uh so in uh in some situations where they make many additional power uh they need better uh transportation uh we need an upgrade power and the upgrade leaves yeah yeah for for them uh

**[01:04:51]** if the tenant is serious and a strong tenant so these are the kind of things that uh we do take into consideration okay thank you that's all for me thanks Jo we have a final question from DJ please go ahead yeah hi my name Jerry can you hear me yes very well yeah my name um I have to take quick questions maybe I'll take it one by one firstly in terms of this middle-east conflict have you seen any impacts to a portfolio tenants is there any tenants who are exposed to energy logistic shipping etc in business box logistic that you're that is facing some pressure and from my understanding China has a cash flow issue are you seeing in terms of rent collection is

**[01:05:37]** has is this been improving and your rent collection is much more on time at this point of time compared to one year before okay um I think for the middle-east uh conflict uh one thing that has very least enough for me is China seems to be quite well controlled in terms of the uh effect uh utilities I think uh you know your home has as covered but that's that's really capable i spoke in terms of you know they are the only self-sufficiency uh you know supply chains I think disrupted but uh by and large but here in China is things are still a bit of a book right uh and then in terms of businesses direct businesses to our tenants uh you know uh we deal this

**[01:06:22]** actually no no issues because uh just like in in last year we talked about there is war most of we deal with dealers and many of them are local local buyers local sellers uh you know basically selling to local crowd buying from uh you know uh local producers right uh and uh international brands you know they uh do not deploy ship from there is maybe it's not a much undies producing area right so retail it's not definitely a issue business parks there are handful you know who have businesses or sell particularly to me there is uh but uh you know that's not a big portion of their business uh nobody uh really went out business because of that you know you know

**[01:07:08]** business parks uh and in terms of logistics uh again our logics are popular uh maybe half of it uh service domestic distribution like half of it uh export uh facing that's in Shanghai right again not not much and uh not not much to report the business of construction from mid-east because we don't have that much uh that much business going with uh mid-east right what we do say is second all the impacts you cannot ignore uh which is now you know uh it looks like uh because petro chemicals which come from mid-east are a big stop uh to you know uh some manufacturing inputs for some of the factories uh uh in China for example plastics and so

**[01:07:55]** and so forth right uh but uh as many uh economies and China watches will also inform uh you know even that you know China have a solution because actually uh you can produce the same hydrofanker we call right it depends on uh you know how much uh uh it depends on cross-production uh basically but with the prices that uh the hydrofanker goes from oil is is we're talking about it's it's uh making the coal can go quite uh quite actually a good of the opportunity uh assuming economy has and production business i've done it uh as diversify as China actually uh you know we have just one communist spot last yesterday uh in fact uh you you would say that strategy

**[01:08:45]** is going to be famous to to to withstand uh the pressures that come from the the the running walk right now so that's uh that's uh uh my my take on it try to set up the real area. It's not a problem there is. Yeah we don't see any uh major tuning back then in the areas. Okay uh my second and third question okay earlier just upon acquisitions maybe can you touch upon which segments you would be looking at and what kind of yield benchmarks you would be looking at for potential acquisitions ahead and third question is is there a trend of retail tenants signing slightly longer lease because I noticed your wheel going up a bit I mean other tenants trying to lock in the rents at this

**[01:09:31]** levels uh in the retail set map especially. The first group of answer I mean you know the entry last one uh the type of assets we're looking at uh and then the new level is okay so actually we we spoke about it the type of assets that we're looking at today you know we have three set classes we deal this is for our logistics we we are more focused on the more defensive part which is which is retail right uh 70% of our portfolio is in retail uh we look at uh you know trends uh we still have been more resilient particularly our uh so that will offset subset which I call the brand battle more right not a lot of three more but maybe more than a little a market once uh we we are looking

**[01:10:17]** uh more in terms of debt segment but then doesn't stop us from you know looking at other asset classes for example uh why business but in general I'm not doing so well you you you would have because of the manufacturing drive in uh in China right uh would have would have seen factories actually doing quite well and then the on and off there may be industrial properties that are not so much sent decentralized offices but more more of the R&D uh more uh catering to actual manufacturing production right there may be uh available for sale those if they are at the quality of our single superpolar which have been very very strong right certainly it's something that uh we look

**[01:11:02]** we can look at but as a priority of course we are looking at I think we want to stick to where we at the most values really really uh retail right uh so that's that's one uh that's one that's that's that's one thing that I can share the other thing in terms of uh you I think it's very simple uh you know as as a read we want to look for something uh that is you a creative they are trading you is uh for seven uh there's one way they look at it uh you know the last deal that we saw of our retail mall we we saw it that uh NPI cap of about you know six plus percent so definitely we want to beat those metrics right in order to uh basically over time improve the average view

**[01:11:49]** of our assets you want to touch on the next question yeah so uh the ones uh we'll uh we'll so I I don't think uh we have okay indeed uh some of the retailers do ask for longer locking uh for both um I mean uh trying to sort of uh uh see that uh the rent is rather favorable and reasonable and also secondly to uh have a retail period where you carry out their investments right but uh we have been more careful in not locked our self-in if we do that the rent is uh you know uh uh sort of the side or so I think that will protect us and give us the chance of of course to uh go back you know in terms of

**[01:12:41]** negotiating rent on a higher side uh when the cycle is still uh I think the uh we don't see a bit trend uh in having to locking very very long pieces uh fair to say that the bum you see in the first probably is there two angles uh yeah yeah yeah yeah we sort of resign correct correct good thank you that's all I have okay thanks VJ and thank you everyone um since we have no further questions please conclude our session for today please feel free to reach out to me or my team if you have any questions thank you all and have a good day thank you thank you thank you