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.