1H 2025 Financial Results Briefing

Good morning everyone. Welcome to Capital Land Investments First half 2020 25 financial results briefing. I'm Grace Chan Head of Investor Relations. It's wonderful to see everyone this morning. A hard to believe that we're discussing our first half performance again, always in very joyous August as special month for Singapore just past weekend, we celebrated our 60th year of nation building to all Singaporeans Happy National Day. And in case you don't know, 2025 is also a milestone year for CLI, capital and celebrates our 25th year in operations. We're very happy to have a UAVS, our investment community. We have our South Side Analysts members of the media,

as well as our finances. And I know many of you are also viewing us online, so a very warm welcome. Today we will have our senior team, O'Wokas True, our first half results. And first up, we have Mr. Andrew Lim, our group COO for opening remarks and will pass the time to Paul Tom, our group CFO for a difficult, true financials. Andrew, please. Good morning everyone. Welcome to our first post liberation day results briefing. I'm sure all of you are as feeling as liberated as we are, but I just want to rest assured that we are not going to do anything that does not mean

a liberation from our principles of sound, sensible judgment for our journey towards our North Star. I just want to remind everyone that this, what our North Star is for CLI, break it down to four pieces. First is 200 billion, 2028, right? That should be a number that is familiar to everyone. The second is 500 million lodging management revenue for Kevin and his team. The third is a landing and a resolution on our China for China pivot, which is a process that is actively being undertaken and I'm sure all of you are following closely. And the fourth is the growth of our private assets platform. If you look at us today on our funds business,

we resemble something that is a penny-farting. Have you guys, I'm not sure if you're familiar with it, but it's an old-fashioned bicycle where one wheel is very large and one wheel is very small. You can ride it, but it's a little bit unstable. I think it describes our funds business today, right? We have a very large leading wheel in our listed funds business, where Asia-Pacific's largest wheat manager, and we're very proud of that. And we've done more in the last 12 months than anyone else in the wheat space. We have a relatively small funds business that we want to grow actively. And the North Star for us is that we turn the penny-farting into a racing bicycle, proper road bike, with two equal sized wheels, much more stability, much more speed, much more

agility, much more nimbleness. So that's our North Star. And the journey continues first half of 2025. Okay, let's turn to, as I mentioned, post-liberation, macro uncertainty, high. What have we done in capital deployment and formation? We've been very busy, very busy on execution. Capital formation, 2.6 billion in total equity raised year to day. So some of that came after first half end. That's a 1.3 x increase year to year. Capital deployment, putting that embedded FUM (Funds Under Management) to work, we deployed 3.2 billion year to day. We have deployed 3.2 billion by our funds and our

REITs. That's a 79% increase year and year. Much of this is in our principal themeatics, which we have shared with you. Secular trends that we believe, cycle resilient and allow us to invest for the longer term, delivering returns to investors. We see what we see, lodging, living, logistics, self storage, private credit. The SECP and Wingate were our two signature M&A pieces over the last six months. It's important to note that SECP were closed in March, Wingate closed in June. So any financial effects are going to be seen in the subsequent reporting periods. But over and above the financial effects, what's equally and fundamentally important

is that we get these businesses aligned, integrated and starting to work towards our North Star. And we'll share a little bit more about that later. And of course, discipline capital management has all real estate related companies, beneficiaries of, when REITs come down, appetite goes up. We'll show you that in a second. Okay, so a minute about our two recent acquisitions, as I'm sure you guys are very interested to see how we are doing. Important to remember the SECP is a 40% associate. So from an accounting standpoint, from an ability to work together, standpoint, formally, they are effectively still a separate company. They're running independently of us. But that's not to say that strategic collaborations, ideas, us meeting and sharing strategies

is not taking place on a very common basis, very frequently. So we meet with Souschard all the time, Souschard's an incredibly entrepreneurial ideas guy. And he constantly coming to us with new ideas, which we are co-creating with him, trying to figure out how best to make the two companies work together to extract the best of both companies. As we run effectively independently for the time being, where is Souschard's strong and Souschard's strong in hospitality, particularly in hospitality, in Japan hospitality. Where are we strong in? We are in strong and lodging around the world. And this is a very natural synergy for us to begin to start that strategic collaboration. I'll give you an idea that we are working on a bit later. Wing gates are a different proposition. Wing

gate, we just consummated it, closed it, 100% subsidiary. We can work absolutely together as one, and we are doing that right now. I believe that we are doing that at a perfect time, because as I will share with you, private credit to me, to us as an organization is primed for growth in Asia Pacific. So we've already got some of Wing Gate products in position to take to our capital partners in Asia Pacific. The initial interest has been very strong, and I am highly confident we will start to see the fruits of the Wing Gate combination very soon in second half. I'll take a few slides to walk you through where we are on our four verticals.

Starting with our listed platform. As I'm sure all of you who watch the market and report in the market know, core and core plast is back with a bang. What's the principle reason for this? I think it's interest rates. We are quite clearly past peak rates, and as peak rates come down, spreads to MPIE, start to make sense again, and allow investors to come in and look at core and core plast. As a result, we can see that our rates have been very busy in the last six months, able to raise capital and importantly able to deploy capital where we've seen total transaction values now not of 3 billion in the year to date period. So again, this is our crown jewel business. Let's think about the earnings. High quality recurring income, a petrol capital, and this is

to us again, that big wheel in our penny funding, one that we're very proud of and one that we are still looking to grow with the acquisition of 40% acquisition of JHR earlier this year and something very interesting growing in China, second half of the year. My foot funds, work in progress. Total equity raised, as I mentioned, up 29% year and year. So amidst a challenging capital raise environment, capital raise volumes are still down, especially for real estate strategies. We are punching at and above our weight, and are doing better than we were this time last year. So up 29%, we again are investing in the thematics we shared before are important to us

and secular to us for growth. Logging, living, logistics, self storage, private credit, you can see examples across the products that are successfully being able to deploy the capital that LP is are interesting with us. What's equally important is that the next 12 months has a healthy growth pipeline. We've got over 2 billion of targeted FUM (Funds Under Management) coming in across these strategies and thematics. We are highly confident we will close our Clara to Living Fund. We have an APAC credit fund that is substantially seated and is started soft launching. We have an APAC Living Fund that is in the works. This is the product we are working closely with Suchard and SC Capital Team

on to harness the strengths of both teams to see whether we can come out with a bang and really make a statement on the living space in Asia. In India we are capitalizing on this very strong wave of optimism, tailwinds in the logistics space as well as the DC space. We're confident in the next 12 months we should be able to put out product that caters do both of these very important trends. Now I want to take a minute to talk about private credit. We based on our house market research, the Asia-Pacific credit market overall credit market is somewhere around 63 trillion US dollars. 80% of that is held by the banks. That's an incredibly huge number. Now obviously not