1H 2026 Financial Results Briefing

Good morning. Welcome to CICT's first half results briefing. Today we are in a summer special, the Paragon Club. It's a member's lounge reserved for its top tier members. And if you'd like to return, you can start spending after the briefing. And remember to spend generously to support our economy and, of course, our tenant sales.

Thank you very much. Jokes aside, we are very happy to have you with us today. And to those joining online, thank you for dialing in. In a moment's time, we'll have our CEO, Choon Siang, walk us through his key highlights for the first half results. Following that, we'll move on to the Q&A segment with the rest of the management team. And with that, I'd like to hand the time over to Choon Siang.

Okay. Thank you, Allison. Good morning, everyone, and thank you for joining us today. If you're wondering why we gather all of you here today, it's not because we have a major AEI here to announce. Someone asked me that this morning, so I thought I'd get it out of the way. We just wanted to showcase the beautiful property that we have just acquired. Nothing more than that.

And I think most of you would not have been into this club before, because it's actually quite new. It was recently renovated sometime early this year as part of a amenity perk to some of our higher-tier members in the Paragon Club. So before you leave today, please sign up for the Paragon Club membership. For the use of this lounge, I think you just need to spend $25,000 a year. Shouldn't be hard. Two watchers will do the deal. Okay. Anyway, without further ado, let's start off with today's presentation proper.

You guys would have seen the results that we have put out early this morning. We're very pleased to present the results for our first half of 2026. The past six months were marked by a very strong execution of our growth strategy, including portfolio reconstitution. You have seen our announcements in terms of the sale of Bukit Panjang Plaza, the bidding for the Hougang land, and then the acquisition of Paragon together with the divestment of Asia Square. So we have also very active asset management as well as very disciplined capital management. All of those things have contributed to our very strong results. So these efforts have enhanced the quality of our portfolio and position CICT for future growth. So I'll walk you through some of our financial highlights as well as our operational performance.

So we delivered a very strong first half, as you can see. MPI increased 8.7% year on year to $630 million. Distributable income increased 13% year on year to $466 million, while DPU grew 7.1% year on year to $6.02. Importantly, this DPU growth was achieved despite the enlarged unit base following our equity fundraising in April this year. This reflects the strong operating performance of our portfolio, the step-up acquisition of capital spring supported by lower interest expenses.

Operationally, occupancy remains high at 95.6%, while rent reversions are healthy at positive 4% for retail and 7.6% for office. At the same time, we continued to maintain a healthy balance sheet, lowering aggregate leverage from 38.5% to 37.4%, while keeping our average cost of debt at 2.9%. As part of our strategy to grow the portfolio both organically and inorganically,

we have been actively executing various initiatives. We completed the acquisition of Paragon on 1st July. This strengthens our presence in Orchard Road and adds a freehold premium integrated development to our portfolio. On the divestment front, the sale of Asia Square Tower 2 (AST2) remains on track with completion expected in the second half of the year. We are also progressing with several AEI and upgrading initiatives across the portfolio.

These are aimed at uplifting our assets to strengthen income resilience and drive long-term value creation. Together, this initiative demonstrates our active approach to growing the portfolio. Our Tampines 1 AEI is progressing well with about 96% of the AEI space committed or in advance negotiations. We have curated a line-up of brands across beauty, F&B, shoes and bags, and fashion accessories among other categories. Several brands have already opened. More brands will progressively open through the second half of the year. As more of these concepts come on stream, they will further elevate the mall retail proposition, deepen stronger shopper engagement and reinforce the more long-term growth potential.

Let me take you through the summary of CICT's first half results. Gross revenue increased 7.5% to 846.8 million and MPI grew 8.7% to 630.5 million. This was driven mainly by capital spring step-up acquisition and the contribution from Galileo, partially offset by the divestment of Bukit Panjang Plaza. Distribution income from joint ventures was lower at 16.7 million down 19.5%. This decline is optical rather than operational as capital spring income is now fully consolidated at MPI level following the acquisition of the remaining 55% interest. So it no longer flows through the JV line. Next, distributable income rose 13.3%.

466.7 million, a strong double-digit uplift. DPU grew 7.1% to 6.02 cents. A robust increase, although roughly half of the growth in the distributable income. The difference is due to the enlarged unit base. On a weighted average basis, units in the issue grew 5.8% to about 7.73 billion. Reflecting largely the private placement of 336 million units used to fund our Paragon acquisition. Despite absorbing a 5.8% increase in unit base, we still recorded a 7.1% increase in DPU.