1H 2023 Financial Results Briefing

Hi, good morning ladies and gentlemen. A very warm welcome to CICTs first half to need to retrieve financial results briefing. My name is Clarice and I'm from the CICT Investor Relations team. It's my pleasure to be our MC for today. CICT released our first half to need to retrieve financial results this morning and we are pleased to have our management team here to share the highlights with you. We will be starting off with a presentation by our CEO Mr. Tony Tan. Followed by our question and answer session with our management team. I will be introducing them later. Before we start, please note that this briefing is live, recorded, and will be uploaded on our website later.

Without further ado, let's welcome Tony on stage for his presentation. Good morning. So to be formal, I don't know why. I'm doing this long, my difficult start. Thanks for coming. First thing in the morning, I think we released our results this morning. You probably have seen it a little bit of glimpse. I would not want to tell too much on the details. I think there probably have a lot of burning questions you have given the diverse kind of probably why you see a review release in the market against the no-opiers. And hopefully you'll give you a little bit more insight

into how we look at the business, which is more important for what we're looking perspective. So I'll just give you some very high level update. So overall, I think we will help quite steadily. First half, I think on the back of it probably note, the reopening started last year more intensively from April onward. So second quarter to second quarter comparison not naturally you're comparing against a high base. So the first half you look at the first half result and the first quarter result is in the liver caporing off in some of the numbers. But nevertheless, we were quite present surprised. Rather, we were quite pleased that the momentum in second quarter seems to be holding quite OK. Against our earlier expectations

to have a deeper decline given the macro outlook. So second quarter looks pretty decent. Both from an operational level and also from a macro level looks like things are depending up, not as bad as what sound the enlaser or econrometer put the painting in the picture out there. But nevertheless, we know the headwind in the second half. But then she can build up. But they also since with some side of the little green shoot, no inflation seems to be picking in many places, that's probably the key factor underpinning the performance of the recent and for us obviously on the ground in Singapore and South market overseas. We are also single little for that impact coming through.

So some high level numbers, NPI, 10.1% increased the on year against the moderation from first quarter. Di went up by 1.7%. So a lot of the distribution has been eaten away by interest cost lastly. And the dip yield increased by 1.5%. Overall, we send the portfolio blue resident from occupancy point of view across the board, both the retail and the office that we're seeing the occupancy creeping up in a way, a manifestation of a little confidence level hopefully coming back in from marketplace. Against the backdrop of maybe three months ago where there seems to be a little bit more uncertainty.

Tenenselsto's also trending well, very pleased that we've seen both doubt how and so a bit more picking up, doubt how more naturally have a little bit by the increase in incrementally we see more tourists coming back. Going back to office seems to have normalized to do a large extent. And see a little bit busy now, now there's a doubt how location. So I've been holding up really well against my earlier rejection that I talked when the borders are reopening you've seen a lot of probably outbound traveler, which we have seen a little bit, but seems like the sales have been tracking quite nicely. So overall, I would say the outlook for retail office

well, we are cautious, but we think that there's a little bit of green sugar coming up, hopefully that would pan out true in the second half on work. So the NPI I mentioned earlier, those are DIM, I mentioned earlier, up by 1.7% DPU is up by 1.5% against the last year, first half lower base, hopefully second half will deliver a bit better numbers. We also see and started to receive distribution coming from cap spring. If we call cap spring, we list up quite well, but there always been a little bit of different timing gap. We begin to see no distribution coming back from cap spring. Our overseas assets are starting to contribute.

There'll be a lower level than we hope for, but I think they are starting to contribute. And obviously the cap sky that we have completed last year are going through steam and it's trading very well. Overall, like I alluded to earlier, the portfolio number has been very encouraging from the occupancy perspective, we creep up overall, about from 96.2, first quarter to 96.7, about 0.5% point on the quarter movement. Total, in fact, the rental revision, we will quite please that we're able to extract a little bit more revision out from both the retail and office.

And as a result, you can see quite a nice uplift between the first quarter and the first half rental revision. And within the office and retail, quite diverse range, the retail side of the office side, we've seen a lower up of three plus percent car a reversion depends on your expiring rent, right? To a high off, 20%, so that blend up into a above six point, this office is about six point, something percent. And retail, we're looking at a range of around 2% to up to about 31%, so it's quite a wide diverse range. But nevertheless, we'll be happy across the board. So, perfect momentum, I think we should expect that next second half probably will slow down a little bit

given the higher base last year. But still very decent, so perfect, we are seeing through the more. Although it's already in fact higher than what we've seen in, probably slightly, across the almost opinion, 19 level, not far away from 10 and 19 level. And then there's where we're continuing to maintain, in fact, higher than pre-COVID, on overall portfolio wide is about 8.3% higher than pre-COVID. Total borrowing will fix up to 70%, we've done some issuance which I'll elaborate a little later on and now we have a very healthy maturity profile 4.3 years left in the debt side. Just some colors, trap key,

you have to complete by, let the power of 4.4% as in TOP. Progressively, no, as you visit, if you do, go down CQ periodically, you're seeing some movement of tenants, some movement in terms of the holding. Progressively, we'll remove some holdings. Hopefully, we can start to bring in some of the tenants that we have pre-committed and start trading earlier. But gradually, we see a little bit more ramp up, probably towards the later part of this year where the border handover will happen. Raffer City, I've seen also quite a nice refreshment. We've done through quite a significant reposition or Raffer City. I will say we are only at phase one of the repositioning.

Roughly 40% of plus each of our brand target positioning as much as we achieve. And we're looking to look at remaining about, meeting, in fact, 30% of the tenants that we need to do a little bit adjustments. Now that I think the refresh city, we are quite happy with it. And we've seen, we brought a lot of our investors from overseas and local as well, to explain to them what we're doing, what we're position in our facilities, where I think most of them has been quite pleased with what they see the outcome. Open-G sense, that's, yeah. I think overseas has a little earlier, it's a little bit of green shoot.