FY 2025 Full-Year Financial Results Briefing

A very good morning ladies and gentlemen and welcome to Capital Land Investments, full year 2025 results briefing. On behalf of the team at Capital Land Investment, thank you for joining us today, both in person as well as online. My name is Grace, group hate for investor relations and communications and I'm going to be moderating today's session. I think firstly please note that this session is being recorded and we will begin first with management's presentation followed by a Q&A session. So with that, let me hand the time over to Paul, who will start the session with financial updates and then we will follow by business updates from quite a few of us, Andrew, Keisha and Kevin before she can conclude this outlook.

Good morning everyone. Thank you all for joining us. It's a pleasure to see so many of you. It's a good turnout. I know there was a lot of anticipation about other announcements and we've been taking a lot of questions. All I can say is my favorite one so far has been in terms of M&A has there been anybody that we have decided to swipe right on? It must be a Valentine's Day thing. My only response to this is please save all your difficult questions for Chiku. Okay, let me just very quickly go through our full year results for 2025. Maybe it's just some key highlights to start. First off, I would say it was a very challenging environment last year and it was very uneven recovery for us across different markets. But we did see quite a number of positive signs,

which I think is what we as a management team at least excited over in coming year of 2026. Fun center management up 7 billion or 8 billion, 7% fundraising went very well for us last year. We had our best fundraising year and Andrew is going to share a little bit more about that. Almost double from the year before. Figrove up 6%. This is where we are relentlessly focused on, particularly on the fund management fees. Results of that was slightly better operating profit up 6%. We consider up 6% somewhat steady growth rate for us. And we think this is something that we can keep a rhythm on. I think more importantly is this is somewhat turning a corner from us for most of you who have been following us. We know that operating profits have come down over the last few years.

This year we're seeing an uplift which we're very excited on. We had some capital recycling. We have less assets left on the balance sheet. So this number will continue to slide down. But it's still continued momentum as we move to an asset like model. And then we did make a lot of effort last year thanks to who we live and our IT team on really AI and digital initiatives. And we're starting to see the fruits of that labor come through. And we believe that will help us for the future, both in terms of cost, but more important in terms of being more forward-footed in how we look at AI and digital initiatives. Financial performance for the year. So as you know, we look at it in three buckets. We look at it as our core operating performance, which is really the core part of the business for us.

Portfolio gains from sales and divestments and revaluations and impairments. So starting on the left, you can see we are at 539 this year for our operating performance. This is up 6% year on year. It, I'll go through a little bit more detail on the specific verticals. But we had strong contribution, particularly from the listed fund last year. We expect that momentum will likely continue to go into this year. Profitability for the fee segment did come down slightly. And that was really us investing for the future. We've made hires and more investments, particularly between behind private funds and the lodging business. And because of that, profitability has come down slightly even though revenues are up materially in some of these segments. The real estate investment business, which is our ownership stakes in the

REITs and funds, we saw good performance here really driven by two things. One was lower interest in operating costs as that has come down, but also stronger operating performance from our units. Most of you who follow CICT, ascend this. Just between those two REITs, we have five and a half billion dollars invested of that in them. Those two units together with our India Trusts and Clinton turned in very good performances and that helped drive up some of our performance. That was offset by decline from assets that we had already divested. So as we've divested assets, that will come down a little bit. But that number overall improved. So from an operating patent, we've perspective, sort of this mid-single digits is about the right growth rate without any special catalyst.

We could keep this as a run rate growth quite easily. Portfolio gains down 80%, that was expected. Most of you know the year before we divested iron-orchard to CICT. That was clearly very good for CICT, but it was also good for us on that divestment year. Last year, we didn't have any big chunky divestments to make up that difference. We did see good gains from India and from Japan. Divestments that was offset by losses from China divestments. So we divested about a billion dollars worth of China assets on a gross basis on an effective basis, about 700 million. That was sold at a discount between 10 to 20% off-book value. So on average, about 13% discount to book value, that offset some of the gains

that we got from the positive sales out of Japan and India. And then the last bit is revaluation and impairments. This is the big adjustment for us. This was actually very similar to the year before. We saw valuation drop in China offset by Singapore and India doing well. In particular, and there is more information in the slide pack, China valuations were down 545 million and Singapore and India up. The rest of our countries largely flat on neutral. So in an overall basis, we are down a fair bit in terms of total pantmy. But really it's mostly non-cash elements, which is why we kept our dividend at 12 cents for the year.

Specifically on where we are most focused on, which is really on our fee business. And fee business contributes about 60% of our business, of our operating profits usually. As you can see, starting on the left-hand side, listed did well, up 8%. This is on the back of transactions across many of our RITs, investments, divestments, and also the addition of the contribution from Japan Hotel RIT as part of our SC capital acquisition. So good growth there and continues to be good margins. Margins down slightly year and year, as mentioned, we are investing heavily behind going our private fund's business. On the private fund side, very good top line growth, up 24%, partly from the contribution of windgate and SC capital,

as the M&A has added to our growth platform and capabilities. But also very much organic growth as a lot of the second follow-on funds for our private fund businesses come. And Andrew and Kisho are going to talk a little bit more about the organic growth potential here. We expect that we'll continue double digit growth across this segment. Commercial management, flat year and year, but better operating profits. The team did a good job of optimizing the platform and cutting costs. So we did see a nice uptake in margins for the commercial management. We would expect commercial management to generally grow at a low single digit range. This is meant to be really a supporting vertical for our private funds and our listed RITs. And then finally, lodging management, which Kevin is going to talk a little bit more about

in terms of where we believe the long term growth potential is. Clearly last year was a little bit of a softer, rev-par growth year compared to some of the preceding years we've had. But the team has still done an excellent job in terms of new signings. We hit a record there as well. And I'll leave Kevin to share a little bit more. But overall, as you can see, margins generally about flat on average behind solid performances from listed and commercial. And then the investing for growth for private funds and the lodging segment. So the other part of our earnings, about 40% of our earnings, as mentioned comes from our real estate ownership business, where we own stakes in RITs and funds and on balance sheet. As you can see, the different portions on the listed funds, there is some adjustment. Because as most of you know, we decon solidate capital and ASCOT trust the year before.

So the numbers move a bit. I wanted to share a little bit more articulating why our listed funds component has come down. Probably because I know a lot of the analysts, a lot of you cover us from a RIT perspective and the RITs are doing well. So the RITs' DPU are doing well. And actually on an operating performance, actually our RITs did contribute plus 20 million to us in terms of uplift. Where the challenge comes is because from an accounting perspective, and I would blame all the finance and accounting people here. And I include myself in that portion, the challenges we have to account for a lot of the market and FX at the RIT level. So because of that, with a single dollar strengthening, we did see some movement in terms of the contribution as we account for it on our books. And that offset a lot of the gains we had from the operating contribution.

So this one we think will move up and down. But from a cash flow perspective, though from a group, we actually take a lot of those dividends in from a cash flow perspective. We still had a very strong year. But that is why on the listed funds we get a little bit of movement. The other component, obviously being we have a slightly lower stake in two of our RITs. Year on year, ASCOT, trust and CICT. We have a lower stake partly from the distribution in species and the sale of RIT units down. But overall, we would expect this part of the business, assuming that our RIT stakes stay the same. We expect this part of the business to grow. On the private funds, slightly positive. The negative drag for us was China Performance, a number of our China funds, which make up more than 40% of our private funds exposure.