FY 2025 Full-Year Financial Results Briefing

Hi, good morning. Thank you for joining us today. I'm Alison. Happy to host you for CICT for your results briefing. Sorry, I apologize about the minor delay. We are very excited to have you with us today. Whether you are a with us in person or tuning in from your desk.

So as per usual today, we are start off with a presentation by our CEO, Tan Choon Siang, who will walk us through his key highlights. After that, we'll move on to the Q&A, where the measurement team will draw us onto the stage to address our questions. So if some good ones,

please receive them for later. We'll try to get to us in many as we can. And we'd better like to invite Tan Choon Siang onto the stage. Are you this?

Hey, hi, good morning everyone. Thank you for joining us today. So we just announced our results this morning. Quite happy with overall outcome of how last year went. A lot of things to go through today. So very well. I will spend just maybe about 10, 15 minutes just walking through the highlights.

And then we can move on to Q&A as Alison has mentioned. Okay, so first on the numbers, I think CICT delivered a very strong performance for the year, FY 2025. For your NPI, we grew by about 3.1% year on year to $189.7 million. Second half NPI grew at a

faster pace at 6.8% year on year to about $610 million. The strong growth was due to a strong, quite a few factors across the board. Strong asset performance across the portfolio and the step up across the share of the 100% interest in CapitaSpring, which was completed on 26 August last year.

Full year, distributable income rose 14.4% year on year whilst second half distributable income expanded 16.4%. Unitholders will be pleased to know that CICT's full year DPU increased 6.4% year on year to 11.58 cents despite an enlarged unit base from a private placement in August last year. This was supported by a very strong second half, which provided

uplift with a 9.4% year on year growth in DPU to 5.96 cents. On a capital management front, we have been proactive putting CICT in a very favorable position in terms of cost of funding. At the end of 2025, our aggregate leverage has improved to 38.6% down 0.6 percentage points from 39.2%, giving us greater financial flexibility.

Our average cost of debt has declined to 3.2% from 3.3% 3 months ago versus the end of 2024. We are down by about 0.4 percentage points from 3.6%. This was supported by the easing interest rate environment and our refinancing efforts. Our current portfolio property value is at 27.4 billion, an increase of 5.2%. Operationally, our portfolio remains strong. Overall,

occupancy 96.9% with WALE 3.0 years. Rental reversions for both retail and office were positive at 6.6%. Tenant sales were up by 14.9% year on year, largely due to the inclusion of ION Orchard. Shopper traffic up 20.5% year on year. Excluding ION Orchard, tenant sales per square foot would have grown by about 1.2% year on year,

while shopper traffic would be up 4.6%. The momentum was stronger in the second half with tenant sales rising 1.9% year on year, excluding ION Orchard. In 2025 and year-to-date January 2026, we continue to execute our value creation strategy across acquisitions, divestments, AEIs and even development. This has strengthened our quality of our portfolio and

hence income resilience and positions CICT for sustainable long-term growth. I will cover more on new initiatives in the next few slides. In January 2026, we announced the divestment of Bukit Panjang Plaza for $428 million. The price is a 10% premium to the latest valuation and 165% of the original purchase price in 2007. The exit yield was around

mid 4% level. If we were to complete the divestment in end 2025, gearing would have fallen 1% to 37.6%. We expect to complete this divestment by the first quarter of this year. We'll be embarking on a development project this year: we won the Hougang Central site

through a joint bid which includes CapitaLand Development. This is the first major GLS site in the precinct since 2019. We will own and develop the commercial component. The site is in a prime location served by the existing North-East Line and upcoming Cross Island Line and will be seamlessly integrated with a new bus interchange. Surrounding the site, there are established

amenities including schools, sports center, community club and parks. We see this as a compelling opportunity to address the underserved demand in the precinct and to curate a retail environment that meets the needs of both residents and communities. The total development cost for this project is about 1.1 billion which translates to approximately 3,600 per square foot, and expected

yield on cost of over 5%. This compares very well with recent retail transactions at the low to mid 4% level. And this will be a brand new mall built to our specifications. Taking into account inflation, the site's prime location and the integration with the two MRT lines and the bus

interchange, we believe the total development cost is reasonable for a high-quality brand new mall. For reference, the capital value for suburban malls is about 3,700 PSF, while some of the recent market transactions were done at 4,000 PSF. We will be financing the development through both internal funds and external borrowings. Target completion is expected to be in 4 to 5 years.

The development is strategically important for a few reasons. Firstly, it increases our exposure to Singapore which remains our core market and a key source of stable long-term income. Secondly, the site is in a prime location in the heart of Hougang with excellent connectivity as I have articulated earlier and a large residential catchment. Thirdly, this is a rare opportunity as well-located suburban malls at transport nodes in Singapore are tightly held and rarely available.

Through this development, we can establish a strategic foothold in the Northeast region and expand our retail footprint in Singapore. The development sits within a strong population catchment, one of the highest in Singapore. There is also likely spillover demand from neighboring

towns like Kovan, Punggol, Sengkang and Serangoon. Our JV partners will further expand this catchment by introducing 830 residential units to the mixed-use development. Hougang Central has only 2.8 square foot of private retail space per capita, far below the national average of 11.4. This presents untapped potential supporting the development's long-term prospects. Next, moving on to AEIs,

this year we'll be starting a new AEI at Capital Tower. Essentially, what we are doing is basically reposition our level 9, which is this floor, some of the amenities space into a community space and create a higher-yielding F&B space at the ground floor of the urban plaza. On level one,

we'll be introducing a two-storey, multi-tenant pavilion with F&B offerings. On level 9, the space will be reconfigured to become the first workplace wellness center in the CBD. The AEI works will be from third quarter 2026 through the fourth quarter 2027. An update on our ongoing AEIs: Gallileo has completed the progressive handover of Phase 1, the

Office Tower to European Central Bank (ECB). The target handover of Phase 2 is expected by this quarter. AEIs in Tampines 1 and Lot One Shoppers' Mall and the office are progressing well. On valuations, the key assumptions remain largely unchanged and cap rates remain fairly stable. Our portfolio property value grew 5.2% to 27.4 billion, largely driven by the step-up acquisition of CapitaSpring

and the strength of our Singapore portfolio. Germany's valuation went up after factoring in Gallileo's AEI. I'll conclude my presentation here. Happy to take your questions after this. Thank you.

Thank you, Tan Choon Siang. Can we invite the management team onto the stage? Okay, now we have come to the Q&A segment. Before we dive into it, let me introduce the management team. So on Tan Choon Siang's right, we have Wong Mei Lian, our CFO. And to his left, we have Jacqueline Lee, Head of Investment. And to Jacqueline's left, we have Lee Yi Zhuan, Head of Portfolio Management.

Okay, a few housekeeping rules before we start. We'll take questions one person at a time. We kindly ask that you keep your questions to two per person. If you have more questions, we'll come back to you as we know some of you always do. Those online, please type in your questions

into the chat box. Okay, if you have questions, please raise your hands and we'll bring the mic to you. So I see you, Mervin. Go ahead.

Hi, I'm Mervin from J.P. Morgan. Congrats to Tan Choon Siang. Very strong results. Glad to see CICT continuing Tony's very strong legacy. I would say this is probably the best results among the S-REIT season. If I annualize the second half DPU, it looks like you're hitting the pre-COVID 2019 level already. I know you're not supposed to annualize it given

second half is much stronger. But what are you excited about this year in terms of growth drivers, maybe you can share that with us? And second question is divestments. I think previously mentioned about asset rejuvenation, is Germany still something you want to be in? Thanks.

Thanks, Mervin. Okay, so yeah, this year, well, on your DPU question, yeah, so we don't typically provide forecasts and typically second half is stronger than first half. He's another speaking. So while we hope to improve on our results for this year, but let's see. I think that maybe we

will just break it out into what a potential growth drivers in terms of our DPU, right? I think I think underlying performance for the organic portfolios still remains healthy. I mean, we're still reporting positive, and the positive, and the positive, and the revenue, and the revenue, and the revenue from last year, we'll also continue to contribute

to the organic growth because as you know, we calculate the revenue, and the revenue, the variance based on average to average. So in fact, the last two years, our rentary versions will also still be figuring into next year's, this year's a growth drivers. So that's one for organic, on organic site. Second thing on the AEI, this year we have

Gallileo completing. So Gallileo of fully contribute for this year. Last year, it started contributing towards the underyear, probably not significantly. So there would definitely be one of the cost drivers as well. I want to the growth drivers as well. Of course, there are some of the other AEI's,

like Lot One Shoppers' Mall Shoppers' Mall and a company small that will progressively contribute as they, but those are likely to have been closer to, you know, second half of the year. So the contribution for this year will probably be that is smaller. Third thing on the AEI front is that last year we also completed,

I mean, I am towards the middle of the year. So there will be a full year contribution, but last year is that a contributing probably from the middle of last year. So those are some of the incremental growth drivers from AEI's. Okay, on the third growth driver, I would say,

well, we had the benefit of a full year iron already. So the base has a really included 12 months of iron income. So whatever we get from iron going forward will be the incremental organic growth. But last year we acquired CapitaSpring in August and that's a fairly

creative transaction. So that contributor about four months last year and this year will fully contribute for 12 months. So some of the some of the improvement in this can have was actually actually beautiful to CapitaSpring as well. So we're likely to see this flow through this year. And of

course, last but not least very importantly interest cost savings. We know that that's a big swing factor when for weeks, every time interest rates come down, we will see a significant benefit. But of course, I think, I mean, nobody knows what the direction is going to be this year.

It looks like Sora has kind of found a footing. Of course, a lot of our rates, a lot of our loans are still fixed at higher rates. On average is 3.2. My generate is probably closer to the mid-2 endo. So there's still some room by all depends on we don't have a lot of loans for refinancing

this year to be honest. I think we did a lot of refinancing last year. But of course, we still have a large proportion of loans in floating. So that will benefit from from the drop in floating rates. And it also means that you will help with our ability to, you know, continue to grow and acquire

going forward. So I think those are the growth drivers. So hopefully, that's your economy remains nice and chugging along nicely. That should help us. A lot of time on answering our first question. I'll focus on the second question. Divasments. Oh, five assessments. Okay. So we just announced

a one-dive estimate. Take it easy, man. Give us some breeding room. We haven't actually closed the Buki Panjang. So I think last, we focus on closing Buki Panjang first. And then we will think about the next step in terms of divestment. But we do have, I mean, there are a few possibilities

as you already pointed out. We will start looking reviewing some of our assets, also I was saying a poll as well. Of course, those will always depend on the market conditions in the respective markets. But I think, I mean, you brought out Germany, which I'm sure is something that's on a

quite a few people's mind. But I think Germany is the way I see it. It's slightly de-risk now because we have Gallileo that has already been handed over to the tenant. So from this young world, you will start contributing income. So there is not as much urgency. So we can actually benefit from the

up-lifting NPI from the asset in any case, whether we divest or not. But of course, if you divest, then you probably have to worry less in the sense. But actually, the asset itself has long-term tenure. So it's pretty much de-risk. But we have another asset in Germany that

is not of the same tenant's infrastructure. So there will be some... So we will potentially look at that as well.

Can you rate your please?

Hi, Monin, 2026 interest cost. And my second question is on... Since we've never asked divestments or asked acquisitions, are you still keen on Singapore retail, like say your sponsor pipeline jewel, or are you keen to buy the office assets that are in the market?

I'll take the second question and then I'll make a video and take the first question later. In terms of acquisitions, no, I think we continue to look at our portfolio, reconstitution. I think the current environment, in terms of our cause of funding, actually, is very conducive for us. It just causes a little. Of course, like, goodie is fairly reasonable.

But I think we have always been quite selective about what we look at in terms of acquisitions. There are not many opportunities in the market. I mean, on the retail, you talked about retail and office. So let's maybe look at retail retail. I think there are not many opportunities in the market. You mentioned jewel, which is our sponsor pipeline. I think that

I mean, that has been there for a while. I think it needs to... It might take some time because I think the financials need to match our pricing expectation as well before there can be a transaction. So we'll have to see how that goes. And also, the event on is to be willing to

sell at some point first. We don't know what's the thinking there. On the office front, there are a few assets that's been out in the market. The challenge, I guess, is the pricing expectation and the new expectations for some of those assets, whether they can make a work. I think safe to say we are unlikely to acquire an asset that

doesn't contribute financially or doesn't really help union holders. If it's not a criteria, it'll be quite challenging. So if you're talking about those chunkier assets, if you need a query funding, it's even more challenging. I don't know. I think it depends on probably not answering our question, but taking it long times is not answer the question.

But I think it's quite difficult for some of those assets that are trading at fairly low use.

On interest rate, like what Tan Choon Siang mentioned earlier, the amount of loans that are still for refinancing is not that big. So given where current interest rate levels are in terms of interest rate guidance, I think we could be in the range of three to 3.1% level.

Jordan?

Hi, I'm wanting Tan Choon Siang. I'll contrast on the very strong set of results. Yeah, my first question would be on valuation. I think for seeing the lower bound of the value of categories seems to have tightened a little bit. Are you able to share what has changed because of the market transactions? And second question is on really if you're looking for what

the picture looks very rosy, just thinking a lot more are the kind of concerns that you have in mind for 2026 and anything further that you are to the risk in 2026. Maybe I'll take the second

question first. First question I would prefer to join. But you know, we'll keep rate lower bound. I don't recall it moved. I think 4.35. I'll see what's 4.35. I believe it's 4.5.

No. Yeah, I think 4.35 is the first time I'm seeing such a tight category. And for office also 3.15, I'm not sure I did closer to 3.25. A very slight movement. I think it's the same as

last year. Okay. Maybe you can double check and then we can get back later. What's the second question? Our presence for 2026. Oh, risk. Yeah, yeah. Okay. To me, the biggest risk is actually interest rates because we have come down quite a bit over the last one to two years.

And there is always this fear that, you know, we might start reversing the trend. Australia just height rates last week. So there's always this pressure. But I think Singapore is in a fairly stable environment. So hopefully we will be. I think, and also from most people perspective, Sora has come down to low 1%. How much do we work any goal, right?

So, but I think there's a lot of liquidity still in the system. There's still a lot in so hopefully Sora remains at a current level. And doesn't look like I don't. I think the risk to Sora going out is if the US rates start going out. And doesn't look like that's happening anytime soon.

But it's always the risk at the back of my mind. Second, obviously, it's going to be the economy, and the general economy. Last year, we have a lot of good things going for us. I mean, at the start of the year, we were forecasting a recession in Singapore. And we ended

a year at 4.8% GDP growth. So that's a big swing from beginning on the year to the end of the year. Whether we are able to repeat last year's performance in a general economy, I don't know. So that could be a big risk. I think last year, there was also a lot of

pump-raiming, right? I mean, CDC vouchers and all that. So that could be, we'll see what the budget brings next week. So that could be some effect there. I don't think it's a big risk, but people in the street will always, probably as a risk, of course, is the completion of RTS (Johor Bahru–Singapore Rapid Transit System Link) this year. Whether they'll have

an impact. I think we have talked about this at length many times with many of you. Different people have different opinions. So we'll see what happens. So we can't rule it out as a risk. Maybe we'll go back to the first question and get rates Lee Yi Zhuan.

The range we take compared to last year, year N is the same range for both the office and the retail.

At least for the lower bound.

Can we go to Joy, please?

Joy from HSPC. Congrats. Two question from me. First on development. On how gone? So if I look at the lower end of your cap risk 4.35, do you think roughly about 70 to 100 basis points of spread is sufficient to compensate for development risk. And with how gone can we assume you one look at redevelopment of your existing assets in the

near term? So that's one. Second question is on NPI margin. So I think historically, Q4, your retail NPI margin usually is lower. If I look at the quarterly trend, this quarter, you actually back the trend, your NPI margins very strong. Can I understand what has,

is there what's the swing factor? And can I take this as the base for next year? Thank you.

Okay, so I think on the development premium front, I mean, that's always a judgment, right? And when we say is at least 5% we didn't say it's 5%. So that's one. But if you look at 70 or 80 bits, it sounds small by 20% of the value. When you move,

when you have a compression or 80 bits, it's a 4% is 20% of the value. So I don't know, instead enough for development premium. When developers do residential development, I think they price them typically at 10% to 15% margin. So, but let's just think of it. If we don't do

this and somebody is developing and we had to buy it from them, five years later, at 4.3%, would investors have preferred that? I don't know. I mean, it's tough call. I think there's no right answer. It also depends on how we manage the cost. I think we're able to

manage the cost well. Of course, when we plan, plan, it's all by execution of the development and how it turns out in five years. Nobody knows what the market is going to be like in five years. I mean, even if you assume the inflation of a certain range, you directly go up by 10.

So if you're able to get entry of five plus percent, then 3,600 per square foot, we do ask this reasonable. So it's a bit of a judgment call. But the reality is this, I think it's hard to find it as set at a kind of you in this market. As we have found out in the last

few months, of course we go. So go down to save path and buy a call as set at maybe 4.2% or 1.3%. Yeah. So we think that this, but I think for the calculation for this is also a bit different. It's not just simply comparing an asset to another asset. I think we like the location.

I think the location in this, but this, this pre-scene is very underserved in terms of a retail demand. I mean, I don't know. For those who stay around the area, you'll know that there's not that much in the neighborhood. I think the neighborhood is tough of a retail more, a big retail more,

which is, which, you know, there's been quite a lot of new neighborhoods in the area. You know, that's a very new, you know, from, from Hougang Central (GLS mixed-use site) all the way to St. Gangpong, there's a lot of new flats that have come up and I don't think the growth of the retail space have, have been commensurate with the growth of population.

Okay. Things second question on MP. I believe the MPM agent is partly because we have also at the CapitaSpring, which obviously is a higher MPM agent. So it may not be a life of like when you compare with the much specific retail. I think for retail, we did have some cause savings. I think utilities

have cause have come now. I think we have entered into better contracts last year. So there were some utilities cause savings. So there has improved our margins. You try anything else to add.

It doesn't match any of those. Actually, in part, your utilities savings is one, and then there's a bit of me bits for your electrical front. For total six probably you can see a little bit of the continuing. But I would say that this is like leaders slightly improve MPM agent that we can expect for

total six. I think AEI is to us is B.A.U. So whether we did Hougang Central (GLS mixed-use site) or not, we'll continue to go with AEI. That's the, I mean, yeah. So it's not. And I think our car actually doesn't really see the rationale of spreading out AEI is that it tends to create a drag on our cash flows. Because when

you do AEI, you have to sacrifice some NPI because you have to shut down some of the spaces to do with you. The difference with how gang is that you don't give up any NPI because you're not, you're not there or not anything. There is definitely balance sheet consumption. But interest cost

is capitalized during construction. So there is no drag on DPU as well. So the only cost to this, I guess, is gearing. So gearing will go up. But I think we are quite comfortable with the divestment of B.A.P. and junk. Our we are gearing is 37.6%. So that gives us a very comfortable position. So

in a way, we are not sacrificing any DPU to go into outcome. So it shouldn't affect our other B.A.U initiatives. So if a redevelopment comes along and it makes sense, it shouldn't matter whether we have done outcome or not. But of course, the only thing is if we have, whether we have a balance sheet

sheet or the redevelopment. But I think we are fairly comfortable at C.A.P. 37.6%. It gives us a lot of that here. One percent for us is about 27 billion. So we are about maybe just under the

different from our bedroom. Hi, Monique. Just one quick question on the outcome side. Does the 1.1 billion include capitalized interest costs? And secondly on Bukit Panjang Plaza (BPP) Plaza divestment proceeds. Would you set that aside for development? Or is there a chance that you could actually redeploy during the next one or two years?

Okay. I think the short answer to the first question is yes. It includes the capitalized financing costs. I mean, it includes all of our construction costs and all the contingencies that we have provided as part of our normal planning purposes as well. Bukit Panjang Plaza (BPP) proceeds.

I mean, money is fungible. You can see as whether we had the... I mean, lastly, we made some acquisitions. You can see as topping up the balance sheet. Or we can also use it a fun future acquisitions. You're right. You know, selling at 4%, is no different from... In fact, it's

a little cheaper than raising a good year. Currently, we are a cost of a good price for 4.8% for 1.9%. So, yeah, so we do... We can use it to redeploy into future acquisitions definitely.

Next thing is on forward guidance. Maybe just a comment. Reads P&L is probably one of the easiest to forecast. As you can see, the forward guidance is encouraged. So maybe next time we meet you, you can be the first brief. So, thank you.

No, good. Thanks, Jen. There we go. I have a question.

Maybe just to follow up on Hougang Central (GLS mixed-use site). Don't mean to flunk this, but how did this come about? I mean, I don't think... You know, we just generally don't participate in JOS sites even as a dry venture partner. So how did this come about? Do you volunteer? Or...

You know? Yeah. Okay. So, yeah, that's an interesting one. So if you had asked us a year ago, whether we were doing a trial development project, probably the answer might be closer to a known end-year, probably the case between. How did this come about? So, I think one is... I mean,

we have always been quite focused on growing over the last 10, and we have looked at many opportunities along the way. And we have also found that it's quite difficult to do acquisitions in Singapore, as you might appreciate. And a lot of assets that are available for sale have been so very aggressive

pricing. I mean, when sale aggressive, maybe it's fair pricing. Fire State that we could look back and think that all about it. So, okay. So then this... our website came about. And... And it was... it has a fairly large commercial component. I think it was a small commercial

component. We probably won't look at it. So then we think... And I think if it's not a big project, we also are less likely to look at it. The reason why we wanted to do outcome, I think one is very sizeable enough. One billion... One point, one billion of deployment. Secondly, competition. I think

because not many people out there can do a residential commercial project. I mean, we were seen from, say for example, the climate team more, there were... the competition was quite tough. When you have 10, 15 people building for the same project, the value gets completed, okay. We know that there probably won't be that many people who can be for such a...

such a huge project. I mean, if you add in the residential and the commercial component, the total development value is north of 2 billion. I mean, there aren't that many part seasons of what I can do that. And in a way, through to that, it's... there were only three

parties that did it. Of course, we know that we know that, like me, two or three parties, that were likely to be... I mean... So actually, we were not getting for a while since the side was announced. But of course, we didn't really want to invite competition, so we didn't really

put it out there, obviously. The alternative was for... I mean, the other consortium, which was CRD and UEL consortium to be... I mean, the other conversation was that they were bit with it or not. But if they win it, we can potentially just buy over from them,

which is our normal process. But if they were to do that, then they have to... then we will have to buy at a different price, which is fine, because if they risk... not that higher price, higher price doesn't always mean worse, obviously, because it's a de-risk product. But the difference this time

is that if they were to do that, then they come better as high as well, because they have the price in the margin. Right? So they can only be... maybe... because when it started to us, they also have to... they have to hold it for five years and then started to us. They probably have to bid in as a

term margin. So then we thought that, okay, if we were coming directly, then we can get rid of that safety net for them. And then we will be a little better than if they would do it themselves. So I mean, we debate that, you know, maybe that's the better outcome for everyone.

That's... it also means that we have a higher probability of securing a win if we are able to... if the grid is able to come in directly. And we know that very few other risks can do that, because one billion... because there's a limit to how much development hit room you can do.

So for us, our total EUM is 27 billion, 10% on that is 2.7. So it gives us very comfortable hit room and still able to do other projects. For some other rates probably we know that they are more limited by that. So we know that... so that is our thinking and that was a strategy that we went in with.

And fortunately for us, that worked out relatively well. And despite that, we only won by a rate in margin. So we really needed that competitive pricing. But even though you won by a small market... I think that pricing is generally... I mean, we are quite happy with outcome.

We think that buying at a price is fairly reasonable. It's probably no worse off than buying a brand new retail mall. That is the risk to low 4% for example. But some of these small small small small small small, smaller, better, better locations also. Stronger catchments. Depending on how we... yeah, it depends... location...

more central doesn't mean a better location, I guess. I think location to us means depends on the catchment and the scarcity in the area as well. Yeah. So...

And just one last question on the reverse and I'll look especially for retail, how does that look like and how does it stack up against your occupancy cost?

I think last year we have about 6.6% reversion. This year I think we'll probably I would say that we'll probably stay at moderate to about that. I have a little bit single digits for retail reversions. Yeah, I think that's the guy that's we'll give. For office retail, probably... looking at... I mean, 12 months later, a lot of things can change,

but I think we're pretty much looking at a bit single kind of reversion.

How is backed up against other retail costs? I think if you look at the year and occupancy it's relatively okay, 17% right? And downtown, if you look at the subtle bonus actually under 16-ish kind of percent. So I would say our cost perspective, you are still quite healthy. Of course, along the broader market, you see on and off the pockets of the

retailers having some of these challenges and I like for like basis, we probably have to tackle some of the localized kind of specific issues across the different shapes. Like, for example, we talk about cinemas, whether or not you want that's immediately placement to cinemas, or we're sticking a short term kind of extension to some of them. So there will play out a

little bit effect in terms of rent reversion by a way by a large ratio of your key in terms of your cost and reversion.

Can we pass the mic to your lower please? Thank you.

Hi. Good out here from the edge. Okay, I've got a couple of questions on the office front because your occupancy fell. And in terms of the expiring rents, which was on this slide, um, um, side 34, because they're a bit high for what, but next year, they were a bit high. So I'm just wondering for this year,

and as well as this year, so I'm just wondering whether, you know, you are, you said mid-single digit reversions for this year, but I'm just wondering what you think is the outlook and why did your occupancy fall for that seat office front. And then for the retail, there's another retail question.

I just wondered what is the F&B percentage of the just the retail portion? Because I think you put it as 17 16 or 17% for the whole, for, for portfolio, but I noticed that, you know, your peers that only do retail at very high retail portions by GRI and by NLA.

Okay. Um, I'll take the office on first. So, okay, if you look at the expiring rent, right, uh, is true that if you look at this, uh, total five and total four, actually the expiring rent versus the market rent, right, we are kind of

closing up, right. So he's much tighter now. Uh, so how do we then actually explain the kind of outlook? I said a lot of things can change the next 12 months. And we're looking at some of the least there were in discussion for the office site. Uh, if you look at the consultants, actually,

there are a lot more bullish than us in terms of rental growth in two six as well as two seven given that, uh, that's actually a little bit of, uh, partners and supply, especially for good quality assets in centralized location. Uh, so they do expect the market rents to actually go up quite

substantially. And then if you look at the expiring rents, naturally, we are, the growth in expiring rent is not going to go as fast as how the outlook of consultants, uh, market rent goes. So they kind of support a little bit of hope that, you know, some of these things that we set out,

uh, you know, because if I give a very low guidance in terms of reverse and see all the things that you're being conservative about it. So I think it's just really stickly how we are looking at this. Then the next thing I will look at is actually the expiring profile for assets, right? So if you look

at how expiring profile is like for office in the two six two seven two eight, the time software, the two seven two eight kind of is in the window where definitely, uh, uh, tightness in terms of supply again. So hopefully we can take advantage of the tightness and supply

that supports a higher rent, right? Do it can negotiate for better outcomes for office portfolio.

I think there's a second question on retail. I didn't really quite understand your question when you

say, I'm talking about retail portion of office. I'm talking about retail portion FNB. What is the percentage of FNB in your retail malls? Because there's so much FNB we all grow fat in the, you know, the next few years because, and because they have a lot higher rents than your cinema or your supermarket.

So, you know, it's really a fine. And they keep on opening and closing. I mean, the, the these food places keep on opening and closing. Just wondering, and is it a risk for you?

We were like right on the percentage of our FNB. I think it's about 30 over percent. Okay, it says 17.8 percent here, but this is overall entire portfolio. But overall retail space is typically around depending on which more, probably about 30 or percent. Your question is whether

how are they doing? There's too much FNB especially when the RTS (Johor Bahru–Singapore Rapid Transit System Link) comes and everybody goes up to Malaysia. It's a point. But I think actually people who go to Malaysia are less likely to be consuming. A medieval country would have MNB, but I don't think that's the trade I will get

affected most because everyone can only eat one lunch a day. So, if you go to Malaysia, you can only one lunch, but you go there by groceries, you can buy like 10 detigens. So, actually FNB is probably the least risk to the RTS (Johor Bahru–Singapore Rapid Transit System Link) opening. Although there will be some leakage by your very small. So,

we're not so worried about that actually. So, you know, we're having more FNB is that need to be more defensive. Yeah, so I think FNB opening and closing is actually been part of, you know, retail trade for the longest time. I think it's been a bit more undernusely leave, but I think a lot

of the closures are also not really in our mocks. A lot of this opening closing, you tend to find them in, you know, shop houses. Because the rent variance tends to be a bit higher. Because some of this shop houses can be very low rent for a long time. And then suddenly when the owner wakes up on

day or a new owner comes in and then you can have a rent adjustment. Whereas in more, you are less likely to see that, right? I mean, you know, contracting most of our rent escalations to 3%. We're seeing like every rent diversion or 6.6%, we never ever see it 40% in our rent

diversion. So, you don't really see that. So, yeah, 6% rent diversion actually means 2% per annum, which is not significant. So, most of the FNB that are in our maws, it tends to be able to survive as long as the business model is sensible and is sustainable. So, those that are not able

to survive typically means that they are not able to survive even if the rent zone increases. Because 2% is not ready to make a difference to your business model and your sustainability, right?

So, can we just ask question CQ @ Clarke Quay as well? Because I think when you mentioned opening closing, I mean, how high-de-loud is closed? Have you decided what's going to come in its place? And how are you going to? Because CQ @ Clarke Quay, you know, we've been to it and my colleagues have been

to it not so much. But there's not much, I mean, it's not as buzzy as other places.

Yeah, I think that's crucial to us draw headlines. But I wouldn't say it is one of those that open-end closed actually. The high-de-loud has been there from day one. And it's one of the first stars that opened. But we have read the other space. Maybe Lee Yi Zhuan can elaborate.

Firstly, I mean, thanks for coming to CQ @ Clarke Quay and please become more. I would say that actually it's a little bit... I can understand why people are saying they're not CQ @ Clarke Quay, but I think it's also a change in type of crowd that we are seeing in CQ @ Clarke Quay. But it's previously a very loud, very...

to almost some extent, around the past certain hour crowd, right? Now you kind of disperse across the day rather than just concentrate the night. And then you have a lot of tourists because a lot of them comes by to the bottom of the boat and stuff like that. So for the high-de-loud,

we already have a replacement. And of course, I would say that it's not a finished product yet because a lot of things is also... When... If I say that, actually, I have exactly what CQ @ Clarke Quay has to be for the market today. I would... It's probably not true, right? It's a product that is evolving

as we try to also find ways, the threshold of the market's preference when it comes to your day and like, treatment mix. And then of course, the other part that will be important for us is when eventually Kenning Hill is completed. Then we will see when the hope is seen kind of be a bit

and live-on where there's residential hotel tourism and all these things. We can again thank you that treatment mix a little bit. So there's our evolving process. And in fact, actually, as I shared previously, there's also an element of experiment that we are trying to take with CQ @ Clarke Quay. So some of the tenants are deliberately kept on short term or temporary, right? Because

we didn't want to sign on the tenant, not sure whether that concept, you know, they can promise you a lot of things, right? But eventually, we want to see that execution. We don't see the market acceptance towards it and that's why we will try out some of these concepts and see how all these things

panel. So it's a work in progress. I would say that there's a few good things that's happening. I mean, Zook is going to do a renovation and like all brands are, you know, for a long time when everything is doing stabilized, nobody really goes. But when you say it's going to do closed-down

for renovation things, earlier everybody starts to go, uh, kudos, uh, you know, nobody went to kudos for probably a while. But then suddenly everybody's asking what's going to happen to this. So, so I think that's it. It's very inherent that all these things catch the kit lines. But at the end

of the day, where we see is really that when you look at occupancy cost of all the retailers, we know some that we know some that don't and that's where we will talk to the tenants. Either we help them to grow their sales. If not, then we will have to look at replacements. So I think if you see

across some of the closures across, I think recently that's another one about, you know, uh, some of the closures in malls, right? Often times it's not just about the rents. It's really about manpower constraints. So some of the retailers that we spoke to previously, they did share that they have expanded and they're looking at how to write sites because they don't

simply the manpower constraint, manpower costs, all these mixed a lot of the operating costs are sustainable. And then that's where naturally, then we will feel the pressure because at the end of the way, they want to protect their margins, right? And something else goes out, they will try

to find the cut from other places. So I think that's all these things that's ongoing. But I'll say FMB, it's one that we do see a shift in the consumer patterns, right? Where the, where now actually they go to something that's not overly pricey, but they like something innovative,

experiential and everything. So they cheer for you when it opens, right? The first month it was very good. So she done very good. But in the challenges that when we bring all these new to market in, right, we are not here to do a tenant for one or two months. We want to make sure that

that kind of product that they do is actually something that can sustain their sales going forward. And then so I think a lot of challenges for some of the FMB operators is, it's not difficult to open FMB, but when they start to open FMB, that is offering something that pretty much everybody's

offering without something that's the first thing. And still without the scale of operational efficiency, that's where they are under pressure in terms of their survivability.

Go ahead, pass my two questions. Just one more Australia. What are your views on your Australian assets given that? You know that RBA moved cash rates up 25 basis points. Is it true? Yeah. The third of the...

Okay, thanks for the question on Australia. Actually Australia is generally doing quite well. If you look at, if you use the market consensus on Australia, things have bottom up probably last year. And Rensa actually going up in at least in a costly beauty. A costly beauty actually documents the... It's quite strong.

There's been quite... Unlike some of the other cities in Australia, Sydney is holding up quite well and there's a bit of a flight to call the T-run. So supply is getting tighter. Rensa are going up. Because these are coming off and incentives in Australia is also coming off. So actually, it's...

Which is the reason why if you look at Australia to day they are actually quite a bit of capital market transactions going on. So people are actually getting a bit more optimistic in terms of what's happening in Australia. If you look at occupancy in Australia, it's also picked up slightly across our properties.

Perhaps no, we'll tend to the online audience. Thank you for being with us virtually. We have four questions. First one is actually from NDBS. Sorry, OCBC. Can you provide the debt breakdown schedule for the Hougang Central (GLS mixed-use site) Development Project?

They draw it down. Oh, I said how much money is in there, is it? Maybe I think that.

Well, I don't have the exact amount but a large part of it will be in this FY, given that we will be paying for the land acquisition.

Yeah. I don't know what's... I'm guessing the question actually is not about that. It's about how much is needed per year. The deployments schedule, the cash, the deployments schedule for the next few years. Where is that or otherwise? New. Like millions said, of course, the land costs will be paid

this year. So I mean, we'll be paying within 90 days, I think 100% of the land costs. And then, of course, there's time duty as well. But for construction costs and the rest of it will be progressive because construction will probably begin on the year in 2027. After the planning period,

which I think probably is going to be like one and a half years. So construction will really be in 2027. And then that construction costs will be drawn down progressively.

Another question we have from Helen CBRE. We'll see a CT consider another development project before our GANS completion as we assume that it will be available.

I think... I mean, it's a hard question because it depends on what's the opportunity, right? But I think quite... less likely, but I mean, I mentioned earlier, AEI is continue to go on. So even how you view what's development to us, AEI is is B-A-U. Whether we will... If the question is whether

we will bid for another development project, which I think is what the question is driving at. Probably less likely. I mean, we try to not manage too many projects on ongoing basis. Let's do this really well for us and do a try-away cut of doing executing development projects

well before we look at subsequent projects. But of course, never say, I think something is very attractive that comes up. But I think the current taking now is unlikely.

Okay, the next question we have from Derek Tan (DBS) and Mr. Yup. What is the status of the Ion

Text Transparency? I think no new updates on that. So as I mentioned in the last earnings update, so this is an idea to come anytime soon. Yeah.

Okay, and then last question from Fraser, we have his congratulating us on the strong results. The lifelike revenue growth seems a tad low versus a strong conversion. Why is the cost? Is it due to AEI?

What's the lifelike growth? I think it was about 1.4%.

1.4%

Okay, so I think 1.4% I guess a little bit of that. I mean, if we look at our reversions, it's about, you know, call it 6% average 2%. So should we be tracking closer to 2%? It could possibly, some of it could be possibly due to the AEI. But maybe we can break down the details and then get back to you, Fraser.

Yeah, Fraser, we'll get back to you. Thank you for the question.

Okay, now we turn our attention back to the physical audience. Jovi.

Thank you. Hi, Jovi also from the Singapore. Thanks to the presentation. Just one small question here also about retail. Combining a few threats mentioned here with the new Hao Gang, with the line from the slides about establishing a strategic foothold in a Northeast region. And reading that alone, if you're comments on a lack of retail offering for that catchment,

also your comments on RTS (Johor Bahru–Singapore Rapid Transit System Link), just broadly what it's all thinking about the entire North of Singapore right now. Would there be a catchment of interest in CICT? Perhaps some are new like the TIFF Club crunchy area away from the more crowded established areas now.

Thanks. I don't think we have specific view in terms of, I mean, we went into Singapore, it's always at in-row estate in general, it's always very localized. I mean, to talk about North in general, it's very hot. You can have two more things with each other and therefore once you're quite different. So it always depends on the actual location, right?

I think generally we are Singapore centric, we're rising up all in general. If there's an opportunity and Singapore, we will definitely look at it and when we look at it, we will evaluate obviously holistically in terms of whether that particular location makes sense for us.

But definitely we did mention that one of the reasons why we went to our camel is because we don't have anything in the North East. Because it always helps us to expand our customer base. I mean, we have a lot of theory we were programmed. The more most we have across it gives our

customer base a wider selection and offering as well, right? Because then we can then access the database and customer base in the North East. Because we burn naturally, always shops somewhere in the rest of the room. Yeah, so I think we are not fairly agnostic in terms of whether it's North

East. Obviously, I think there is markets out about how the Northern part of Singapore is going to be more affected by RTS (Johor Bahru–Singapore Rapid Transit System Link). I guess partly true by you also benefit from the insular, so there will be a certain vibrancy at trends too. So maybe more leakage than this, but

I don't know. I mean, for us, unfortunately, we don't have that much exposure in that area. Whether we see there as a, I don't, I think we will, I said we will look at it specifically each individual location on its own.

Okay, pass a mic to VJ.

Yeah, hi, Monin. Congrats on a good set of results. I think most of my questions are asked. There's two questions from me in terms of office, Singapore office, occupancy drop during the scene during this quarter. Maybe can I know the reason why? And specifically with office rent sitting multi year high, do you think,

do you see pushback from tenants in terms of increasing it higher, some tenants moving to out of CBD areas? That's my first question. Second question is in terms of retail sales, I think if I look at your tenants sales overall tenants sales, it looks a bit soft. I think it's in line with

broadly with market while I've expected to out perform any specific reasons. And with this level of sales, do you still see pushing up rents possibility in next few years? Thanks. Okay.

Maybe I will take the second question and then Lee Yi Zhuan can take the first question. I think tenants sales, we are about maybe, yeah, I think it's on the bottom now. Call it just value over percent for a year. But I think we also have to be mindful that the first

half of the year was a slightly more cautious environment. So if you strip out the effects of the first half, if you look at it on the second half alone, which was I think I mentioned it earlier in my presentation as well, we are up close to 2% year and year, which I guess is, I mean, sales growing

inflationary rates, I guess it's business as usual, whether we should be outperforming that. I think it's okay. I think we are quite happy with 2% growth on a year basis. If anything else, if nothing else, in line with our rentary versions of about 6% per annum, which then allows us to

maintain the same occupancy costs. But as we have also mentioned a couple of times our occupancy costs is actually not super demanding at the moment. We are at 17% per year. We are about 19% and our sales have gone out quite significantly, probably much faster compared to our rent over the last

few years. Sales always lead rents, right? I mean, you always have to go out before your rent can go up. So we have already had the benefit of sales growing up quite strong need the last few years. So we do have rooms, I think, for rent to go up to catch up with occupancy costs. But if nothing

else, at least if you continue to grow at 2%, sales per annum, at least you are able to maintain the same occupancy costs as this year. So I wouldn't call it weak growth rates.

Maybe the first question on drop-in of this occupancy. Yeah. Okay. So far, far, far, far, far, far in the meantime for the drop-in occupancy, such as some transitional vacancies that we see in the Singapore office portfolio. So of course, we have one, I think previously I mentioned that one of the CTE tenants are key left, so that one

on this one is quite a big point. And six per tree row we have a few of the kind of smaller kind of tendencies that expire. So these are kind of things that we are aware of ahead of time. And so actually, there are really some of the space has a really backfill.

So, for example, the one in capital, Tarou, we've got 20 plus percent backfill, and then it's fortunately at a positive rent reversion. And the one size expatri row, we have also backfill some of the spaces. Some of the spaces in these, in power, these drop-in occupancy, so we have to set

aside for some of the things, like for example, fire compliance, well, expatri row before we can put it it back out under the market. So it's largely that I would say that if... So we are aware that I will even say that going for the next quarter, so we probably will see a little bit of

volatility in a little bit of these occupancy. Because some of these movements in the market is quite natural, especially at the point in time where we see movements in the market. As you know, there's factor quality that people can't solidate their expansion, and then there will be natural

down times to some of these things. I think there's a second part of that question where you talk about whether tenants push back on rent, I would say. Actually, not really at this point. Of course, naturally, everybody is big cautious in terms of... We've all these global uncertainty markets

certainly, then of course they try to be a bit more prudent when it comes to rent negotiations. But by and large, I say the broader themes that is still happening, right, like the quality, because ultimately it's about 10, talent attraction, talent retention. So centrality is actually a key theme, not just in Singapore in Australia as well. As we see the

cost- DVD markets are the one that always recover and grows faster. So there's actually companies are prepared to pay for the right space, even the view of the broader business, right. Actually, real estate costs is just one function of the other parts that they are concerned about.

And, fact, actually, right now the challenge for a lot of them is not so much the ongoing rent in a monthly payment perspective, but it's actually more the initial case that is involved in moves. So there's the reason why you can see in many cases, right, some of the landlords are starting

to do fit a lot of business to help, you know, and companies bring down the initial setup cost, and all these things then becomes rentalized into the rents. So that's gaining a little bit of popularity across a quite a few buildings in CBD. By and large, I think that the companies are

aware that ultimately, you know, they're so many sources based as available, and they have to make a choice in order, or these ESG central location fits their business better or cost-efficient thing. And the doubt that with the decentralized and CBD is still not wide enough, you know, for them to

then say that ESG centralized location is a better way to go for just pure cost reasons.

Yeah. Do we have any more questions? Dexter?

Okay. Good morning. Next up from Robert. Can I ask, I know to hop back on this market, on the RTS (Johor Bahru–Singapore Rapid Transit System Link), you have actually done any modeling to kind of talk about leakage or modeling in terms of how much you could see on that front, and also on the retail side again. Sorry to hop on this point,

what kind of demand are you seeing in terms of tenants for your retail malls? Is it still actually coming from overseas, the real suspects? And on the office side, obviously, there has capital markets seems to be improving, like you can't point it to. If you guys are approached to sell some of the assets, we are considering that. Thank you.

If we have, your question is, if we are

approached to sell some of our assets, will we contact the office side? Yeah. On the office side.

I mean, we have sort of, we'll give one junk. So we are not adverse to selling assets. We sort of the new one, call your key, which is an office asset. So we are not adverse to selling office asset. So I think between office or retail, I wouldn't say we have a preference over

either, right? Because I think the cycle is always changes. So for us, it always depends on what is the proposition in hand. If someone offers us, I mean, never say never, if someone offers us, you know, prices are very attractive. I think we will always take a look. We are not, we are not,

I mean, if it's attractive, now we will definitely always take a look. So obviously, yeah. So on this on the office and retail front, I think the first part of your question is on RTS (Johor Bahru–Singapore Rapid Transit System Link), the case, whether we have done some more doing, I think we did before. I think there are two

parts to this, right? Question is, the existing leakage, which has already happened and the incremental leakage has a result of RTS (Johor Bahru–Singapore Rapid Transit System Link). I think I says the thing leakage, I think when people talked about leakage, there's some confusion about the two, because actually, I think leakage doesn't affect the numbers anymore. They have already leaked. So it forms a new piece. So whatever the

from a year and year basis, does not make a difference. So what we should consider about is the incremental leakage from the RTS (Johor Bahru–Singapore Rapid Transit System Link), which I think is a bit hard to model. I think if you look at it from a pure, I mean, if you look at it from today, that we will go drive, I'll add it to remain

drivers into JV, because you cannot substitute that away. You drive, because you want to be a a mover off from point to point. Because you spend a whole day there and you want to be able to, if you're the most likely you drive. So I don't think that was substitute away to RTS (Johor Bahru–Singapore Rapid Transit System Link). So RTS (Johor Bahru–Singapore Rapid Transit System Link) is

likely to create the additional demand from people who use to take the causeway bus. I think there is an existing causeway bus which I have taken to test it out and see how convenient it is. It is already very convenient, because just once out of the causeway to the other side, only takes like

15 to 15 minutes. But of course, that's that additional time that you have to take from your house to the age of the causeway. But just crossing the causeway is actually a really quite convenient. But of course with RTS (Johor Bahru–Singapore Rapid Transit System Link), it makes it even more convenient, maybe 15 minutes can cut out to five minutes. So

like me, you will take away the demand from those who are currently taking bus and move it over to RTS (Johor Bahru–Singapore Rapid Transit System Link), but that's not incremental leakage. The incremental leakage is the people who are currently not going to RTS (Johor Bahru–Singapore Rapid Transit System Link), so the lead is set to go to Jaha. So if you are currently not going to Jaha,

why is that? And why would RTS (Johor Bahru–Singapore Rapid Transit System Link) make you go to Jaha? It must be because of the other convenience and study shorter time. But actually, it doesn't take that much of a long time today anyway. So if you are the type that will go to Jaha, do for cheap goods, you're probably really doing it today.

So I think that incremental effect to me is not as big. But to me, people who have the propensity to shop for cheaper products in Jaha are probably really doing it. But what RTS (Johor Bahru–Singapore Rapid Transit System Link) will also do is that your allows the religions to then more easily come into Singapore. And this facilitates

cross-border labor flow, which then allows us to tap into incremental demand in terms of labor flow-flow-flow-flow-freeze. And RTS (Johor Bahru–Singapore Rapid Transit System Link) also, I mean, the whole Jaha is booming, right? And they would like me to be greater population growth in Jaha, either organic or you know, I mean, you can't have economic activity without people, right? So you are like these attract people

from other parts of Malaysia coming out to Jaha. So there are a lot of things that Jaha doesn't have that Singapore has. Some of these people would like you want to come to Singapore, although he can say, etc. And then you have experts in all that moving to your whole because of all the development

of industry activity. So that's also the incremental benefit. And previously, these people probably may or may not drive into Singapore. And then RTS (Johor Bahru–Singapore Rapid Transit System Link) now creates an avenue for them to come to Singapore. So I don't think it's all bad. It's not doing all doom and gloom, right? So there could be some

incremental leakage as what I mentioned earlier. But I think it's probably not as big as it is because it's because all the leakage that I study happen has really probably happened. But you also facilitate the dates flow back to Singapore. So that's how I would think about it. But it remains

to be seen. So let's see how that goes. Was there another question on the RTS (Johor Bahru–Singapore Rapid Transit System Link)? I think that's a body. Yeah, oh, sorry. Okay. Do you have a number on that on that point? Because you're seems like a net negative, then in a sense, from where you apply. And on the retail side again,

can I also ask right in terms of just adding right in terms of softness, I think we do pop top of it just now. But are you seeing change in consumer habits in terms of obviously the full fall seems to be increasing, but spending seems to be coming down. Have you seen that in your

most as well? Sorry. You're asking if we have a number for the sales leakage? Yes. Okay. So so happy that the modeling. Yes, we have done the modeling. I will be the job if I didn't do one. So whether it's the number I can share, if you are only can say that it's not a number that

will be a new step over. Then if anything, I will refer you to the BSP part probably that was a good reference point. I hope that I addressed that question.

I see. And on the previous arguments.

Yeah, sorry. So on the retail consumption consumers pattern, I would say that generally, I think for example, some of the is very hard to just use a single line to capture the whole market shift. But of course, what we see is a little bit of a stop at a result generalization,

we do see that people are moving away from very, very big items. So you start to see the people that are trying to spend on experiential dining, experiential entertainment, lifestyle elements. Of course, there's a little bit of shift towards small spots and healthy, healthy, kind of living things.

But there's the shift in trend also that's not always reflecting the kind of sales that you see, because like for example, you talk about yield and yield if you compare say, for example, sports equipment and then you go here. I'm interusing from them by example, right? You see coming down

doesn't mean that less people are cycling compared to three, five years ago. It's just that as a young year basis, because it grew a lot of the prior and the basis height and then came off subsequent by and large debt trend in currently directionally still going us on the way.

We also see that for example, IP is doing, IP collectibles are doing very, very well. You know, like everybody, I'm not sure. We used to ask who buy blind boxes, now we ask who have not bought one before, right? And I don't know if any of you have not bought one. But even if you

you don't really believe in it, people will still try and buy. And in fact, we do also see like some of the traditional like operators that sell toys to kids are not also trying to pivot a little bit into this adult kind of things. So toys, games, all these things no longer become something

that used to be for kids. I know things that you want to spend a lot of all these things unfortunately for us like, I want to say, unfortunately, I'm fortunate about the year that end up. So that's the kind of shift that we do see in some of these consumer patterns. And that's also

the kind of things that we always say that retail products are evolving. Then we talk about all these like your closures and whatnots. Are we seeing a lot of brands from overseas, right? You know, in the past, right? The comment has always been that almost I could get cut the most.

So then of course, when we start to bring in overseas brands, we start to say, oh, there's too many overseas brands new to market brands. And then what does it mean for local? It's finding the right balance. I don't think in any of our most, sorry, I can't say for the rest, but I don't think

any of our most you can see that our most are predominantly tenants from one particular location. It's not a local versus for anything. It's really getting the right mix, right? That when somebody goes to our mall, they can buy things that is from local fashion. They can buy a local FMB. They can also,

if they choose to do something else, you want Chinese food is very, very good. Today, yes, year for options. And I think that's important when people come to the mall, because especially if the the mall nearest to you, right, is all one star one, I don't think you want to go back there,

even though it's the nearest mall to you all the time. So overseas exposure, we do see continue interest from Chinese brands, of course. But that aside, we also see a lot from the western part, right? So like, for example, again, I bring back, I bring back new concepts from

we see like permutations, right? In what, for example, certain things that didn't tend to be high cost items. Now they try to make it more mass pricing. So people can still experience the same thing for a much cheaper price. So we see some of these things evolving along the way. Yeah.

Okay, thanks. Yeah, I'm just mindful of time. Maybe we'll take one last question from John. Can we pass a mic to John, please?

Congrats on the very strong TPU growth. My question really is on growth and how that change your view on country allocation. So, yeah. So for example, which you'll be open to expanding to retail in Hong Kong, which you'll be open to expanding to office in Japan. So right now, you know, locally, as a price is quite high and given that you're

really the largest street in Asia, we did, we did, you would be a bit underrepresented overseas and would this be the right time to expand more overseas? Interesting.

Thank you. Thank you. No, so I think question is whether if one day we're I guess, I mean, you prefer your question. We have because of the new growth mindset, whether we will look at overseas. I guess the assumption is that if you want to continue to grow, but we are not opportunities in Singapore. Because at the end of the day,

if we have to, if you're able to find something in Singapore, we rather spend the money in Singapore and continue to grow in Singapore. Question is, have we run our opportunities? Because you're asking if this is the right time to look at overseas? No, I think we have shown in our

track that we are still able to find opportunities and decent sizeable opportunities that continue to be a creative financially. It makes sense for us and puts our portfolio in a good position. I mean, we did this outcome. It's also another way that we deploy capital in Singapore as well.

And that also is another reason why we also look at it. Because it offers us another way to grow in Singapore. I don't think we have run our opportunities. I mean, there are still so many assets in Singapore that we can look at without going to details and names. So I think the chances is,

if we are able to deploy the next dollar and Singapore, we rather do that then go overseas. Do we like Hong Kong and Japan exposure? I think Hong Kong is probably going through quite a bit of challenges as we can see in some of the other our sister reads that have assets,

rental reverses are still on a negative trend. I don't think it's something that we will be keen to look at if you ask me. And as I mentioned, I think most of our investors, I think, prefer us to still be predominantly Singapore. I think we have also addressed some of these

questions in previous. I think in fact, if we have a choice, I guess we may even look at because they do things about overseas portfolio if possible. But before we look at growing if possible, oh, it's Japan. It wasn't on my mind. So I guess I forgot about that. I guess that there was a indirect, we are answering our question.

Okay. I think that's all the time we have. Before we conclude, Tristan, would you like to share some closing remarks?

No, I think this is very good at our results. And I think really want to thank all of you for continuing to support us. We know that this says the bar even higher for us makes it 20, 26. Bigger had a look to climb over, but we will continue to

push for results and stay disciplined in terms of what we do. I think our team is we have a very strong team. I think we're ready to everyone sitting here and everyone sitting there. That's the reason why we are able to deliver. And so many friends, I think it's not just the acquisition front,

although that's the things that people, a lot of you are focused on, but actually organically, the organic access still makes up 98%, 95% of our portfolio. And if we are able to deliver performance from organic assets, they will make our job a lot easier actually looking in terms

of looking for growth. So hopefully we continue to deliver, but we know it gets much harder and harder each time. Okay. Thank you. I think we have something great outside, right? Yes. So thank you.

Yeah. If you have any further questions, please feel free to reach out to us. Otherwise, have a great day and those in person and join the refreshments outside. Thank you. Thank you.