Proposed Merger of CMT and CCT Briefing

Thank you, Manuel. Good morning ladies and gentlemen. I'm sure you're more interested in the topic next to after this. So I'll keep the briefing quite brief. It's supposed to be very brief. Anyway, the results have been out this morning. Some of the highlights are already quite evident. So I'll just quickly run through some of the key items to look at. So this gives you a... Anyway, this is just for formality. Just take a look at this quickly. So this is an overview of the full year. In 2019, we achieved a positive rental reversion of 0.8%. Shoppered traffic went up by 1.4%, which is an improvement

from in fact third quarter. We end the year at a pretty high occupancy, 99.3%, and tenant sales has declined marginally 0.1, 0.4%. This year also marked the opening of after three years of development. So it's been well received in the market and Funan is trading and doing well. We also embark on the part of the rejuvenation of one of the older assets, Lot 1, beginning with the rejuvenation of the library and cinema and we expect the work to be completed progressively progressively from second half of 2020. This year we sold it to essentially two issuance, two capital market issuance. First one was a seven year hundred million

debt that was issued at an interest rate of 3.5%. Second one was a three hundred million US dollar ten year note and it was a swap back to Singapore at the all interest rate of 3.2 to 3%. On the sustainability fund we continue our effort to further the agenda. We managed to secure our first $200 million green loan to finance the BCA mark certified properties. And to show our commitment to greening all our portfolio, in fact, we met our 2020 target after having all the properties certified by BCA green mark following the certification of basically Clark Key.

key financial highlights. In the fourth quarter, distributed double income increased by 6%. We were also very pleased to announce that the unit holder will be receiving 3.11 cents, which is 4% improvement from last year on year basis. On an annual life basis, it adds up to about 12.34 cents, representing about 4% year-on-year growth as well. For the full year, DPU arrived at BPU at 11.97%, which is 4.1% improvement from last year. So I think that's probably the record that we have achieved.

On the gross revenue front, you can see the chart here broken down by different property. All more registered increases, except for log 1, which is undergoing AEI, understandably, other assets, largely due to the divestment of Samba Wang Shopping Centre. On a comparable more basis, which means excluding Fonan, excluding Samba Wang and Westgate, portfolio revenue grew at 0.6%. On the OPEC side, it's gone up by 12% for the same reason, but on a comparable On a comparable basis, our packs actually went down by 1.2%. So this leads us to on the MPI level achieving for the full

Year 13.1% increase and on a comparable basis increased by 1.3%. On the joint venture front, Overall is down by 15%, but that's largely because west gate Is no longer classified as joint venture this year, sorry, In 2019. So it's not really comparable. On a comparable basis, we are left with RFLCT, MPI increased by 1.7%. On the debt majority front, essentially we don't have a huge tower this year to deal with, so I think we are quite okay. We managed to achieve more than 96% fixed rate.

Just some other financial indicator to note, we end the year with all assets unencumbered, 100% unencumbered. Our leverage has gone down below 33%. Net debt EBITDA improved from 6.7 times to 6.4 times. And our average term to maturity went up to five years. Average cost for debt remains about the same, and we are still having the A2 rating for Moody's. On the valuation side, for the second half, we clocked in 149 million in CMT. In Raffles City, our share of the valuation gain is $17.6 million. All these valuation gains are largely driven by improvement in our financial performance.

Funan clocking a nice gain, largely because of the lower than expected cost in the development. Just some portfolio update. Render of reversions, like I mentioned earlier, went up for the full year at 0.8%. But if you look at the atrium, there was a large markdown, negative 6.5%. It's essentially due to a change in the one-dollar tenant, one-dollar mini-anchor from a bank, financial institution, to a more lifestyle trade. So we brought in a lifestyle trade into atrium, resulting in a, which is large space, resulting in a 6.5% decline.

If you take that out of the equation, H1M will have a 1% improvement in the reversion. And overall impact to the portfolio will have been a 1.1% improvement. We achieved a high 99.3% as of 31st December, if you can see from the chart here. Lastly, I think majority of the property has improved in occupancy side. So I think I'll stop here and I promise to be brief and I'll pass the mic to Kevin to brief you on the peace results.

First of all before I begin, I have to make one big apology for the very last minute cancellation of Rana's rescheduling of our results briefing last night. So for those who actually came all the way down and got turned away at the door, I apologize. So really a good morning to all of you. Let me just get to the slide. Really happy to share another good set of results to cap off 2019 for CCT. Just some highlights. For 4Q 2019, distributable income increased 5.5% year on year to 87.6 million dollars, right? GPU for the quarter was 2.28 cents,

a 2.7 year on year increase. An increase in DI was due to higher portfolio NPI and higher tax exam income attributable to our new acquisition main airport centre. The higher net property income was driven largely by high revenue from 2-in-1 colloquy arising from our step-up rent from the 1E extension and capital tower. Of course, we also saw a full quarter contribution from main airport centre post our acquisition. And this was offset by the inclusion of operating expenses for Main Airport Center. For the full year 2018, for the full year 2019, this full income increased 4.9% year-on-year

to $337.6 million, while DPU was an auspicious $0.8 cents. A 2.1% year-on-year increase. Not deliberate, really $0.8 cents. a nice Hongpao for Chinese New Year which is around the corner. The increase in district income was due to higher net property income, lower interest expense arising from a lower average cost of debt, and then tax exam income contributions mainly from Galileo and Main Airport Centre. Similar to 4Q, the higher net property income was largely attributed to a better performance from 21 Collier T, Asia Square and Capital Tower.