1H 2026 Financial Results Webcast Briefing

Hello, a very good morning to everyone. Welcome to Phrasal's Center Point Trust, first half FY2026 results briefing. I have with me today the management team, Mr. Richard Ng, who is our CEO, Ms. Annie Kwang, our CFO, as well as Ms. Paulin Lim, our Managing Director for Investment and Asset Management. I'm sure we have lots to cover today. So without further ado, can I pass it on to Richard to kickstart the briefing, please? Thank you. Yeah, thanks, Judy, and a very good morning to all of you. Thanks for joining us this morning again, and I figured that you guys probably have some time to go through the deck. So we're just gonna run through and perhaps can spend a little bit more time on the Q&A part of it. All right, come, Judy, let's go. Yep. Okay, once again, I'm very happy to share a set of strong results that we have delivered for this first half. If you look at all the numbers here, it's all positive, has grown, has improved.

Revenue, of course, came in pretty strong, more than 20%. NPI is likewise more than 20%. Even for DPU, I mean, we grew by 1.4%. And if you look at the operating matrices as well, tenant sales have gone, you know, increased by 3.2%. Traffic has gone up. Occupancy is, again, very resilient, very strong, at 99.8%. Rental reversion is also at 6.5% for this first half, right? In terms of the capital management side, Annie will go into a little bit more details, but just on a broad perspective, our leverage is about 40%, and for this quarter, our cost of fund is about 3.2%. Okay, next, we're gonna touch on on the broader market perspective. The macroeconomics in retail market in Singapore, I'm not gonna dwell too much on the economic indicators. You guys are pretty much aware as much as we do,

but let's maybe perhaps look at the sales numbers. So for retail sales in Singapore as a whole, we are looking at just January, February, because as you are aware, typically the things that is a little bit behind time, so we try to compare on the same period of time. And you know that January, February is an average of, depending on which month is the Chinese New Year. So for this, we normally put its two months together. So on the average, Singapore retail sales grew by about 3.4%, and SCT is actually ahead of that at 3.5%. And if you also strip out the rest, and just focus on the FMB, because there's a lot of conversations around this particular sector, the broader market saw 1% increase, but for SCT, we actually delivered a 1.7% increase. So that's where perhaps one of the difference, right? I mean, you read a lot about FMB operators shutting and so on. So it is not the fact that it's not across every more,

but maybe some are more affected than others. This is again, a strong numbers that you can look at in comparison with the broader market perspective. In terms of rent, for this quarter on quarter, suburban prime retail rents grew by 0.2%, and year on year grew by 1.4%. Okay, next, in terms of financial highlights, I will then hand over to Annie. Yeah, thank you Richard. Good morning everyone. I will go through the financial performance. The gross revenue for one half of 2020 stood at 221.9, which is an increase of 20.3% compared to the same time last year. The increase was mainly due to the North Point City Soft Wing acquisition in May, 2025 last year, and also higher passing rate across most malls. This was partially offset by the EI at Alkomor, as well as the divestment of issue

in September, 2025. Wow. Okay, property expenses for one half, 26 is 20.5% higher compared to one half last year. Excluding the effect of North Point City Soft Wing and Alkomor, it is comparable to the corresponding period last year. So accordingly, our NPI for this one half is higher by 20.2%. There's a lower distribution from joint ventures for the one half this year due mainly to the absence of the one half dividend compared to the same time last year. The DPU at four one half is at 6.136 cents, which is 1.4% higher than last year. So this excludes an amount of 4.6 million, which has been retained for general corporate and working capital purposes. Next slide, please. There are no significant movement in balance position compared to 30th of September, 2025.

The NAV and adjusted NAV increased to 2.25 and 2.9 cents on 2.9 respectively, mainly because of the effect of the mark to make it recognized for the derivative financial instruments. Next slide, please. Okay, as at 31st March, our agreed leverage is at 40%, which is a 0.3 percentage point over the last quarter. Interest coverage ratio remain healthy at 3.59 times. Average cost of that for the six months is at 3.3%, but for the quarter it is 3.2%, which is the daily basis point dropped from last quarter. We have refinanced all the loans in FY26 this quarter as far as so partially refinanced some loans due in FY29, therefore extending the weighted average, that maturity to 3.92 year as at 31st March. The hedge ratio is lower at 66% due to the electricity swap there.

Start 11, yeah. So there's no refinancing rates in FY2026. As mentioned earlier, I think we did a refinancing, early refinancing for borrowing, which was previously due in FY2029, by pushing it to FY2031. With that, there is no more than 30% loan due in any one year. Okay, next slide, please. So the DPU 6.13 cents for the first half will be paid on 29 May, 2026. So I wanna hand over to Polly for portfolio highlights. Thank you, Annie. Good morning, everyone. I'm very pleased to share a very strong set of operating performance for our portfolio. So on this slide, you see the occupancy. Portfolio occupancy on a year or near basis has improved by 1.7% point to 99.8% as at the second quarter of this financial year.

Just a deeper look into how the various assets have performed. You see that all our malls have delivered 100% or almost full committed occupancy. And the high occupancy and the positive rental reversions that I will show in a later slide are supported by very robust trading performance of our retailers, as well as good demand for quality spaces within the suburban space. Next slide, please. This slide shows the very strong broad-based improvements in top line and net profit across our portfolio. And this is the result of our continuous efforts to drive not just revenue productivity, but also to optimize cost in the face of inflationary pressures. You see that in terms of the NPI margin,

our portfolio is actually using NPI margin of 73%. And that has maintained, if not improved on a year or near basis. Okay, next slide, please. Shopper traffic and sales also shows positive picture, right? Both traffic and sales have sustained growth from previous years into this financial year. And this is largely attributed to our focus on in-moor activation and also driving repeated visitations. And all these focus on bringing people back to the mall, doing the sales conversion is using results. We see good sales conversions as demonstrated by the improvement in sales in tandem with the growth in the shopper footfall. Next slide, please. Okay, rental inversions.

Happy to say that we are tracking ahead of our projection of mid single digit at the start of this financial year. And if we look at the performance across the malls again, we do see positive rental inversion across all our malls. And on top of that, also across all our trades for the first half of this financial year, right? And the other metric to highlight is tenant retention. Very strong tenant retention of 87%. Again, this is a testament to the trading health of our existing retailers, right? A little bit of flavor on where some of the leasing demand is coming from. We do see good traction coming from, the top three trades would be FNB, beauty healthcare, fashion and accessories. And again, these three trades are one of the top five

within our portfolio. So again, this demonstrates how strong the portfolio is and how resilient the trading performance of the portfolio is. Next slide, please. Okay, these majority profile, you see that the bar, the lighter blue bar of 26% shows the amount of stock that is due for renewal or new lease at the start of this financial year. On a today basis, we have the risk more than half of this stock that is due for renewal. So it stands at about 11.6%. I said the first half of this financial year and a proportion of this comprises anchors and mini anchors, which have been largely de-risk. So that gives a little bit of comfort in terms of what is the leasing risk for our portfolio in the remaining part of this financial year.

So the other matrix, you see that there's no toll stack in the immediate two to three years, right? The lease expiry profile is quite even, so there's no concentration risk. And in terms of the will, at 1.7 years is respectable in the context of our average three years lease term. Next slide, please. Okay, this slide we wanted to demonstrate that we are still cognizant of the fact that we need to bring excitement to our shoppers. So over the course of this first half, we had brought into our portfolio 48 new to portfolio tendencies, right? And this is across various malls and also various trades, right? And I believe some of you would have heard about the exit of GV, the cinema from Tiong Bahru Plaza. So happy to provide a little bit of preview

of what we are doing for that space. So in line with the emphasis of bringing experiential and play into our malls, we'll be bringing in XVenture, which is an indoor active sports park. It will be first in Singapore. So we're very excited about the repositioning plans that we have for the space that is to be vacated by GV. Next slide, please. Okay, I think for the next two slides, it's just a flavor of what we are doing to engage our shoppers and also to bring the, to enhance the experiential element by activating our malls, continue to be a key focus. And it's our responsibility as a lab not to bring food for to sustain the performance of our retailers. So this remains a key priority. And we believe in leveraging the strategic locations

and connectivity of our malls within the heartlands to position ourselves as a key community hub. So a lot of the activities are involved, place making involves engagement, enriching the experience of our shoppers. Next slide, please. Next one, yeah. Okay, another key partner for us would be our retailers, right? I think there's a lot of talk about, cost inflation, impact to business sustainability. This is a topic that is top of mind for many, especially with the world that is brewing in the Middle East, right? And as landlords, we are committed to work with our retailers for them to trade better. So here you see some examples of what we are doing as landlords to work with our retailers, to help them manage their costs, and also to help them tap into,

you know, a segment of the population, the silver population, which is actually growing, right? So all this is with the view of ensuring the sustainability of our retailers, ensuring the productivity of their space. Next slide, please. Okay, in this segment, I will touch about, you know, our pillar of strategic growth, enhancement growth, through AEI, right? So happy to update that, you know, Algangmo AEI is progressing well. Today, we have garnered about close to 90% of leases for the space that is affected by the AEI. And the overall AEI is on track to complete by the end of this financial year. So you see on this slide, we have provided, you know, a sample of some of the retailers that have signed with us and will be coming to a mall.

And many of these are actually new to mall. So if I look at the, you know, the average of options that are new to a mall, we are looking at about close to one of the mall being refreshed by new retailers. Next slide, please.

You will recall that in the last quarter update, we were very happy to share that, you know, the AEI for next is coming to fruition. And over the past quarter or so, happy to, you know, update that it has actually made good progress with about 40% of leasing pre-commitment just for the phase one, right? And another 28% is in advanced negotiation. So this brings us to close to 70% of the spaces that is, you know, undergoing the AEI, largely the ex-e-Saitan space, right? And that will be coming up at the end of this calendar year. So good leasing traction, good progress in terms of the, you know, the AEI works, right? And E-Saitan is now doing its final sale over this weekend, a lot of good deals.

So please come down to the mall and support us. Next slide, please. Okay, with this, I will hand over to Judy to take us through the ESG section. Thank you. Yeah, so good morning, everyone. I just have a couple of slides on the ESG part. I mean, as you guys know, Fraser's property as a group is very focused on ESG. And along with that, you know, one of the initiatives that we always have been embarking on is, you know, that community engagement, ensuring that our malls are vibrant social hubs where our shoppers and community can connect to various initiatives. So, you know, throughout the year, you know, through targeted place making from the festive events, you know, to the various health and sustainability programs, we continue to strengthen our engagement with the community and across various customer segments. There's been a lot of talk about cost, you know, as well, given the inflationary environment, we just wanted to kind of feature a couple of the initiatives

that we have embarked on over time. I mean, this is not something that is just drawn up, you know, overnight, for example. Essentially, it demonstrates how we are driving operational and cost efficiencies to leveraging technology as well as ESG initiatives. So one of them, for example, is our smart facilities management, where, you know, we're integrating both cleaning as well as security services with an outcome-based approach to reduce cost and yet at the same time still deliver good performance when it comes to our mall operations. And off top of this, of course, leveraging AI, you know, very common nowadays across asset maintainers as well to increase that productivity. And again, you know, on our lives, as well as escalators as well, there's a lot of remote monitoring and diagnostics in place. So this helps to then support predictive maintenance, again, all in line with achieving operational savings.

Okay, so on the energy side, lots of questions on that recently. Please to share that we are fully hatched in terms of our electricity costs for FY26 and partially for FY27 as well. And of course, you know, over the past few years, we have been putting on so much of this SONAR energy, you know, on our malls itself, you know, that's like a three times increase, for example, just in FY25. So all of these measures put over the longer term has actually helped us to support, you know, the operational and cost savings. And all in, of course, you know, these efforts also support 100% in terms of our green financing. And we, you know, in terms of our properties as well, 100% are green certified at the moment, all in all underlying our strong ESG credentials. Our next pass on to Richard who will cover the Looking Ahead section. Richard, please. Yeah, thanks, thanks, Julie, once again.

So as my colleague has shared, you know, for this first half, we have in fact, delivered a very strong results, thanks to, you know, everybody's effort, you know, from the asset management team, the property management team that has worked very hard on the ground. And it has shown, you know, through the numbers that you have seen. So Looking Ahead, I think the questions would be, how do we sense the market? What are we looking for and where we are, you know, going for the next six months? So this is where we kind of want to share some of our views as well. Right, next slide, please. So fundamentally, if you look at our business, right, it is about numbers. So as Pauline mentioned, you know, we continue to want to drive traffic to the mall and driving traffic and then thereafter we try and do a conversion. So we have been doing very well on that front. Our shopper traffic has continued to increase and that has also contributed to the increase and improvement in sales for our tenants as well.

So that's what we have been doing on the ground, but on a macro perspective, again, it's very important for us to look at where, you know, in terms of numbers as a whole, it's going. So happy, you know, to share, and some of you would have seen some of these numbers shared across, you know, various media, various announcement speeches and so on, that our population is growing, right? We know that we have crossed the 6 million mark and there is about 6.1 million as of June, 2025. That's a growth of 1.2%. So historically, you know, the last 10 years, the growth, average growth rate has been at 1%. While we don't produce enough, but we do, you know, still able to increase our population by about 1.2%. So that is good news for us, a business like ours, because we want numbers. So the more people are available in Singapore, the chances are, you know, they would probably shop in one of our malls. And at the same time,

if you look at going ahead, based on the master plan, that has been shared previously. Over the next six to seven years, we are looking at about 145,000 housing units, both public and private, that will be constructed, right? So again, this are big numbers. And so far, we have been kind of monitoring what is the progress like between 2022 and 2025. Again, you know, those video that have been announced, about 25% of them are actually near our mall. So again, this is where, you know, we're waiting for completion of this flat, and the catchment market is gonna grow for us, right? If you look at slightly in a shorter term, 2025, 2027, we are looking at about over 50,000 HDB flats gonna be built. So like what I said, big numbers, and these are the numbers that's gonna continue to sustain, you know, the growth that we are seeing at our mall.

Next slide please, yeah. Right, so again, going back to the fundamentals of numbers, so you have population, so that gives you the numbers, the traffic. Then what about spend, right? So this is again, we want not only numbers comes through the mall, but we also want the numbers that comes with spending ability, right? So again, this are stats that has been widely shared that the median household in Singapore have in fact exceeded 12,000 mark for the first time. So as the population, median income growth, the propensity for them to spend has also improved, right? Again, that is also fundamentally supporting the sales across our portfolio. So not only individually, they are doing better in terms of the pay and the income, but I think the government has also been very supportive, very progressive in terms of, you know, coming forward to help. As and when they see perhaps, you know, there are some challenges in certain sector of the market

or certain sector of the population. So again, nothing new, you guys would have seen this, but putting it a little bit more in terms of perspective, right? So CDC vouchers, $500 is gonna be distributed in June instead of January 2027. As we all know, right, I mean, this has got an impact for us, for our malls, because half of that can be used at our supermarkets. The other half of course can be used at the various HDB outlets and also hawker centers and so on. But even despite the fact that, you know, 50% are not able to be used in a mall, we do see knock-on effects. Similarly, even the 50% that is so-called available only for supermarkets, right? You normally see a knock-on effect. And what do I mean by that? What you see is now the household has additional $500 to spend, right? Which in the past they would really would have spent it on supermarkets, like what, you know,

or markets or hawker centers and so on. But now with this 500, meaning that the $500 that they have previously kind of allocated for the same spending can be used for other things, right? Perhaps a little bit more non-necessity, perhaps, maybe in terms of fashion accessories, in terms of footwear and so on. So there is actually a knock-on effect. So it's not just strictly mean that 250 goes to supermarket and that's it, and nobody else benefited. But based on our data, we are seeing that every time when there's a distribution of CDC vouchers, we do see some knock-on effect. And that is where the team, again, will look at how can we get the tenants to participate, to be involved in any of such activities. So beyond the CDC vouchers, there are also cash payments. There are also use saved that's been earmarked. So if you look at this on a very broad perspective,

you add up all this, roughly, you know, a household could get up to about 2007, right? Depending on the housing type and so on. So potentially about 2007, up to 2007. So again, not only income is growing, but there are also additional sources of funds that this population catchment that we are serving can tap on. Next slide, please. And fundamentally, if you go back to basic, right, what are we all about, right? It's really about basic necessity, bread and butter that you need, essentials that you need on your day-to-day requirements. So again, focusing very much on essentials, essential services made up about 54% of a GRI, close to 50% of our NLA space is actually occupied by this type of trades and products. Growth in demand drivers, we spoke about this now, population, housing growth, median income growth, government support.

So with this basic essentials, growth drivers, plus of course, demand supply, right? I mean, if you look at the supply side of things, over the next two and a half years from now to N2028, we are looking at about just slightly below 180,000 square feet of suburban space. And in fact, none of them are actually the type of malls that is comparable to our portfolio, right? They're about 90,000 square feet and so on. And some of them are actually smaller spaces. So this is where you see how we believe that we continue to stay resilient. We continue to see that tenants in our malls will be able to do well, right? Fundamentally, basic essentials, strong growth drivers, limited supply. Next slide, please. So if I could just sum it all up, what are we looking at? Where are we focusing on? I think pretty much we have not gone out of what

we have been always been focusing on. So enhancement growth, Pauline has shared, I mean, we are very happy with the progress we have made at our count mall and again, excited with the fact that next is gonna start physical work. But even before the physical work has started, right? The traction in terms of leasing for this space that is gonna be worked on has been pretty strong, 48% and again, 40% and another 28% that's already in an advanced negotiation, very strong numbers. Acquisition as part of the growth, we are continuing to be disciplined. We look for opportunities that fit our strategy. Again, as I always said, acquisition is opportunistic, right? It's not something that you can really plan for, right? And the third leg is organic growth. This is bread and butter for us. We continue to work very hard, trying to see how we can further improve the performance that we already have,

very strong performance, drive traffic, drive sales. And that's where you could again, be able to get the rental reversion that you're looking for, right? Supply is very muted. So that kind of underpins the demand for spaces at our malls. Judy also mentioned about beyond, looking at the revenue side, we are also very focused on the cost management perspective, right? So proactive property management in terms of looking at cost management, in terms of actually looking at cost mitigation as well, so sometimes you may not see an immediate improvement in terms of the OPACs, but the question is what happens if you don't do it? So sometimes it's about cost mitigation, cost avoidance. And the last bit is about Annie and her team has been again, also working very hard on managing our capital. So see a lot of progress in that area as well.

I mean, the overall cost of fund has come down. So again, about 60 plus percent hedge, we continue to monitor the market and would look at hedging if and when it becomes something that is positive for us. So with that, I will kind of wrap up our presentation. So happy to move to the Q&A section. So Judy, back to you. Yeah, thanks Richard. We've got a number of analysts already lined up to ask questions. So without further ado, let us start with Terrence from JP Morgan. Can I invite you to unmute yourself please? Morning Terrence. Hey morning, Judy and Rif and team. I just wanted to ask on perhaps two sets of questions. Actually congrats on the good result. Number one, on the financial side, could you talk a little bit more of the 4.3 million that was retained and what were the plans for it? Would it be distributed in the second half of the year?

And also any updated cost of debt guidance for the year? And then I guess on the broader picture, this potential divestment of White Sands, maybe if management could walk us through, know what's the thinking behind it and if any assets here were to take place, how would some of these funds be redeployed? Are you looking at acquisitions and would this be in Singapore overseas? Okay, Terrence, I will take the second question and then perhaps Annie could help out in the response to the first question. So as you have seen the announcement we put out, I mean, I don't know, I mean sometimes the media caught hold of news and they make a big deal out that we are in talks, right? Just like most of our past transaction also was like sometimes we started talking, but as the announcement has stated, it's still a conversation, discussion, nothing has been fixed, nothing has been concluded.

So again, it's when things are done, things are really formalized, that's when we will come forward and share with all of you, right? But as of now, it's conversations and discussion. So there isn't anything definite at this point in time. So your lead up question is what could we do, right? Again, like what I say sometimes, investment, divestment are opportunistic, right? So if there are interests in our mall and we think that maybe we could look at something that's aligned with what we have always and we search for an asset like this when it comes to maturity and we do get somebody who knock on our door and say, look, you know, this is something that potentially we could do, then we will start the conversation, right? So again, it's opportunistic. So if it happens, then we can start looking at for a start, our headroom will improve because they'll bring our gearing down to about 36 kind of range. So that gives us a little bit of a headroom to then pursue opportunities when it comes our way, right?

So it's not something definite that we're looking at, okay, with this and how we're gonna deploy the fund immediately. So again, it's all opportunistic. But sorry, maybe just to clarify, if you were to redeploy, I mean, would it still be a dominant ball in the suburb at Singapore or would you consider other things like, you know, downtown overseas and other assets? Okay, so the question is about maybe in terms of overseas, maybe a little bit straightforward, right, so the question is, will we go overseas? But at the same time, we also ask ourselves, are we able to find good assets that has got similar attributes like what we have? And after you kind of do your readjusted return, can you find opportunity that's better than what we can get in Singapore? I think probably not at this moment. That's the reason why we will continue

to stay focused in Singapore, right? So that is quite clear for us, at least for this period of time, during this period of time and foreseeable future. Whether we, again, do something in downtown or do something in suburban, again, depending on what's available, if you do know of something that's available, perhaps, you know, you can share with us, but at this point in time, we don't really am aware of anything that's available. Again, fundamentally, I think we look at how does it fit into our portfolio, right? Whether does it add value? Are they having the same kind of attributes that we think gives us value in the longer term, something that we believe is sustainable? And if it makes sense, right, we can always look at that. So maybe any- Thanks. Yeah, any in the first question. Okay, the first question. Hi, Terrence. Yeah, so the 4.6 million that was retained, it actually came from our strong underlying performance

of the portfolio as well as lower finance cost. So it's retained for various purposes, working capital, you know, other initiatives, AIS, which also includes potentially released in the second half. So the other question was the cost of guidance, cost of debt, right? Yeah. If we didn't change our guidance, there was provided non-squatter, so it remains around 3.3%. Okay, thanks. Okay, thanks Terrence. Next up, we've got Vijay from RHB. Vijay, good morning. Can you unmute yourself? Thanks. Hi, I'm coming to Terrence. A couple of questions for me. Firstly, in terms of the one-off JV income, Lassia, can you remind us how much was it and what was the reason? Last year it was given. And also I want to know a bit on the debt cost at the JV level and how is it tracking?

Okay, any- Yeah, so the one-off dividend that was in last year, so I mean, there was some excess cash from, there was kept in GRPL, which is some, you know, the excess cash from, which is no longer required, so we reassessed the cash position and know that we can make a one-off distribution up to the share-holder. So it's one-off, so we don't expect to have this in this year. What was the other question again? I mean, debt cost at JV level. Okay, yeah, we don't share specific debt costs at our JV level, but it's around, you know, there's no new refinancing for the JV, so it will be the same as what we have previously skylighted, which is around about 3% or 3%. Okay, sorry. Got it. Sorry, if I can clarify again, if you strip off the one-off income, one-off income, your JV income

would have been higher year-on-year? No, the one-off income was last year, not this year. So this- If I slip off the last year's one-off, would your JV income be higher year-on-year? Yes, yes, JV income is still higher year-on-year. Got it. Yeah. My second question is, last quarter, I think you mentioned something about phosphate point transformation, and then increasing the NLEA and other, maybe is there any update on it? And as it comes closer to RTS, are you seeing some tenant impact or any conversation with tenants in terms of how they see this overall changes? I think the quick answer is, Vijay, we don't see that. In fact, the occupancy for phosphate point remain very strong. You know, we are still getting renewal reversion that is very healthy. And each time they sign is a three-year lease. So that has not actually deterred tenants from signing. So again, I think, you know, that what we shared many times before,

perhaps the view on this RTS has been over emphasized or overblown. But if you have been operating in cause-way point for a very long time, you have been, you know, seeing this flow of people going to JV all the time, right? So it's nothing new, but perhaps maybe a little bit more, a little bit changed. But again, we shared before about the bigger picture. We expect more people to come to Woodlands because it's a connecting hub. We are seeing growth in population. Because as we speak, some BTOs just next to the mall is being constructed and will be completed soon. So by and large, we don't see any issues with our leasing strategy for cause-way point. In terms of how we're going to revitalize the mall or we're going to redevelop the mall and so on, not redevelop, but again, doing AI on the mall, we are hoping to be able to share some plans because we have to go through certain planning application

and also getting in some of the key tenants that we wanted to showcase that has kind of pushed back. So we hope that by the next quarter, we can come out and show some of the ideas that we have for our cause-way point going forward. So unfortunately, I'm unable to share details at this point in time. Got it, thank you. All of us, that's all I have. Thanks, Vijay. Next, we've got Geradin from DBS. Geradin, can I invite you to unmute yourself? Good morning. Hey, good morning, Richard and everyone. Maybe just three questions from me. I guess first, if we look at transactions in the market, I want to cut down reselling transactions. The FCT look at the asset because in terms of quantum, it looks quite close. If you do sell white sense to redeploy. Of course, we look at all opportunities that are available in the market.

Then we start to look at the numbers, we start to look at and ask ourselves whether does this asset fit in terms of attributes? So typically, we want asset that is well-connected to key transportation hub like MIT station, bus interchange, the way the more the physical structure, the more can we still create value, what are some of the competition around that area? So when we look at all these attributes, we decided that I want to, it's not something that we believe can add value to our existing portfolio. So which is why we did not participate in the deal.

Okay, very clear. Maybe just on the reversion 6.5% are still very strong. I believe the cinema backfilling as well as the AI accomplishers who have added to this number. So on the same stop, this is what will be a cleaner number. Can you clean up the number? Yeah, Jaredin did this to be very clear. AI numbers, those areas that we did AI on, it's not included in this reversion. But reversions are only those spaces, existing spaces. So any subdivision work and so on, we do not restrict them out because that's where you get numbers that is not stable numbers. So we strip out all those. So this is really in a way clean numbers. Okay, so the AI will be a bigger boost to the 6.5%. Yes. In fact, okay. Maybe just last one on the cinema closure at Tiambaru. Hearing all these noise for the past two years, what is Golden Village as the pre-closer

for further closures? Of course, I cannot comment on GV's business strategy, but the fact that they took up a lease in Century Square, that goes to show that they still want to continue to operate in Singapore. Again, Tiambaru Plaza is one whereby, like what I say again, is it because of certain proximity, they feel that in that catchment market, having one at Great Wall is sufficient. But for us, we look at it more as an opportunity. I mean, Tiambaru Plaza GV has not been really a key traffic drivers. It's not bringing in the level, the type of traffic that we wanted. So we have been looking at this space. And I've shared with all of you before that, even though they're operating, we are making plans for every one of the cinema spaces that we have to identify what could be the possibility. So if they decide not to renew, they decide to exit,

we have the plan quite quickly, right? Which is why, when they announced that they're exiting, and we are able to find backfield of space very quickly, and we are quite excited with this adventure that's coming in, because I think that would be something new to the mall, something that we believe it's gonna be able to drive more traffic than what Gordon Village used to be able to do so. Okay, thanks Richard for all the color. Yeah, thank you. Thanks, Sheridan. Next we've got Rachel from Aquari. Good morning, Rachel. Can you unmute yourself? Thanks Judy. Hi, good morning, Richard and Tim. Maybe just a few questions from me. Firstly, if I were to look at your tenants sales, could you give us some color? Is it mainly coming from supermarket? And have you seen any softening coming to the march?

No, good. Sorry. Yes, so the numbers is for the first half, we haven't really gotten the detailed number for beyond march, right? Because normally the numbers comes in a little bit later, so we only get it in May. But eyeball observation, we still see a very strong traffic flow, very busy at our malls. So we don't really see any softening from that perspective. What was your second question, sorry? Oh no, is it mainly coming from the supermarket? Oh, okay, yeah, right. So in terms of trade. Yeah. Okay, maybe Pauline can also help out, but I believe some of the trade categories that have contributed that include your FMB, supermarket is one, your beauty and healthcare. Of course, jewelry is one of the trade that is doing really good business.

Fashion and accessories, I believe, is also one of those categories. Did I miss out anything, Pauline? Yeah, so maybe Richard, I will provide a little bit more flavor on that. So if you actually look at the slide that I presented earlier, in terms of tenant sales overall, we have actually achieved a 3.2% increase on a year-on-year basis, right? And with a further deep dive into the trades, maybe I will deal with the, say, the top five trades within our portfolio. We see that across our top five trades by GRI, the sales have actually improved. I think the only one that is maybe slower is fashion and accessories, but even that is quite effective. So I hope that gives you a little bit more perspective on how our retailers are doing. Okay, got it, thank you. Then my next question is on utility costs.

I think you mentioned you have H.F.Y.26 and partially in 2007, right? Just wondering, how's the rate compared to last year's rate in 2027 versus the 2026? Okay, 2026, all done. So 2027, we have done about 50%, right? So we continue to monitor the market. We still have another 50% to hedge. So like what I said, I mean, we can't really give you fixed number right now, right? But let's say we take pretty extreme condition and say, look, you know, if let's say the forward rate goes up to about 120 US dollar per barrel, I'm talking about forward rate and not spot, right? So today you look at oil price is about 100, 110, but that's spot. Forward rate is slightly different. Forward rate is where again, you know,

it is adjusted and the view is very different. So for example, yesterday, the forward rate is about $80, right? So nevermind. So even if we assume the forward rate, it's about 120, all right? The impact to our 2027 numbers, it's about 1% of the DPU. So I hope that give you a sense. That is to me is quite extreme because I'm looking at forward and not spot. And also to answer the question on whether the utilities costs have come down, I think we can stay quite definitely for FY20s because it's pretty hedged. It has come down from past year. Oh, you have a rough content, 5% less than 10% it's a big. Do I have a rough question? Yeah, maybe. Maybe, okay, maybe I believe our utility costs is about 9% to 10% of the overall impact. So probably we shave off maybe about half a percent

from there. Yeah. Okay. Okay. Okay, that sounds good. All right, thank you.

Then maybe just very quickly on the reversions outlook, I think it softened a little bit versus the last quarter, I think. So moving forward, do you still see it moderating down further or are you still expecting stronger reversions? Yeah, in fact, we spoke about this and our guidance has always been, looking at about mid-single. In fact, it came in much stronger than what we have guided. Basic fundamentally is because our tenants at our malls continue to do well, which is why we were able to get that. So we continue to guide that, in a longer term, more sustainable basis, it's a middle single digit number. Okay, all right. Hey, thanks for your attention, thank you. Thanks, Rijo. Next, can we have Terrence from UBS to unmute yourself, good morning, Terrence. Good morning, Terrence from UBS.

Just a question on the dispersion in rent paying power across your tenants. Just a question, I mean, there are articles online that say that local businesses are being priced out. This is the case where you have Chinese brands want to pay top dollar for your higher visibility storefronts and perhaps the local ones who can't keep up. Okay, if you ask me in terms of ability to pay, yes, you're right that there are brands who come in, foreign brands that came in and prepared to be a little bit more aggressive. Maybe perhaps that's their business strategy. They want to grow, they want to grow fast, they want to take position, right? But for us, it's not a case of always going after the best rent. So if you look at our malls, if you visit our mall, you will find that it's well, in terms of the trademarks is well planned, well thought out. We don't have any specific single cuisine

that is actually taking significant number of outlets in our mall. Because we believe that what we serve is a cashman market that consists of different races, people with different talent, people with different needs and they don't want to eat the same thing every day. So we are very cognizant of the fact that when we plan our trade mix, we plan it in a way that we want to have a diversified well mix kind of a mix that we have. So the answer to you is, at least for our portfolio, what we can say is not always the case that we go for the top dollar, but if they are good, they are well demanded. That's what the cashman market are looking for. Yes, we will bring them in, but that has never been the first criteria that because they can pay better than our local brands, so we will always take them first. Okay, I presume that also means that this top people who pay top dollar

isn't exactly driving your reversions in a disproportionate way. Definitely not, yeah, just to be very clear. Okay, and also let's say on some of these foreign brands, are their sales necessarily performing well broadly across because I do work by some of these foreign brands and some of them are quite sometimes. So that goes back to my response, Terrence, because again, some of them they can pay, but is it really something that you want to have in your mall? Is it something that your hedge fund market, your shoppers are looking for? So for us, we are quite cognizant of the fact we want to bring in trade that can do well, trade that our communities are looking for. So our leasing colleagues, they do a lot of groundwork, they understand certain products, certain brands may work in Singapore and certain brands may not work, but maybe they can pay you, but it's not gonna work. They're not gonna be sustainable, right?

So that's not the point that we are looking for. So what we do is we try to pick brands that we believe can do well and can be sustainable. Okay, I think that as it stands, there isn't much of any underperforming trade. Of course, again, different trades perform differently over the period of time. Again, sometimes it's a case of the product that they have, maybe after a while people get tired of it, that you change, whether it be local or foreign, it doesn't matter, right? Over time, certain brands, you can see that slowly they are no longer attracting as bigger crowd as what they used to. Maybe people got tired of the product or the services that they provide. Sometimes actually the services within different restaurant that you get will have also impact in terms of whether customers are coming back or not. So it cuts across whether it be international or local brands.

I don't know if you can help us simplify, I guess, if you look across your tenant categories in terms of how their sales are trending, which are the all concerning ones, I guess we can just put aside cinemas, but what else is there to think about on the downside part of things? Okay, Ollie, do you want to take that? Yeah, sure. Do you want to take this? Yeah, so Terrence, like what I mentioned earlier, maybe I wasn't very clear. If I look at the top five trades in our portfolio by GRI and these top five trades actually represent more than, I think close to 80% of the GRI within our portfolio. These trades are doing better. The only one that is maybe quite flat would be fashion accessories. So that gives you a little bit of comfort. Now, in terms of which are the trades that we do see a little bit of a slowing in

and so forth is like what you've correctly point out, the cinema trades, some of the entertainment related trades and also maybe the smaller trades within our portfolio. So like, for example, books and so forth. So all in all, I think in terms of the overall performance, we take comfort from the fact that the bulk of our retailers, i.e. the top five, they are doing better on a year basis. Yeah, but they just wanted to chip in as well, Terrence. But even having said that, so FNB is doing well. But doesn't mean every single one of the FNB guys are doing proportionately well. So some are doing better, some are doing okay. Some may not be doing well. So that's where you do see that there's some consolidation, certain brands are moving out for more

or certain brands as we change out. We will work on those that probably are not doing as well. So again, what Pauline is giving you is a broad category. But I just wanted to highlight that even within the same category is disproportionate. So maybe perhaps that can answer your question because you're probably wondering, you read a lot about FNB closures in order. So why is it that our FNB sector is still driving? Got it. I guess my comment is that maybe the flip side of having limited underperformance across the portfolio is that there isn't much, I would say, change of our tenants to drive further improvements. Not really. So we showed that we have a retention of 87%. So usually it's about 85%, 87%. So we change out at least about 13%. For this time round as well. So typically we would try to do a change out because especially if we don't see certain trade

doing as well or maybe as slowing down, which is a signal that perhaps the chopper in the area is no longer looking for this product or this kind of cuisine, this food. So we change out. And what we also try to do is to bring freshness to the mall. Retail center can never stay the same. All the time. You need to bring in something new, something that is fashionable, trendy, something that people are looking forward. Because say, for example, I mean our malls are in Hong Kong, in Ishu, in Woodlands. We want the chopper there to be able to also experience certain things that's new in the market. Instead of having to travel all the way to town to save maybe the latest yogurt or latest salad bar that they read about, they want to have. So the idea it's about ability for us to also bring in some of this brands that is generating a lot of compositions as well.

I think just to add on, the calibration is not just between trades, but it's also within the trade itself. So because we know what are the sales performance of all our retailers, right? And the focus is always on looking, okay, what is, say the top 10 to 28%, are there better options for that space? Is there something better that we can offer to our retailers? So I think, I hope that gives you an answer in terms of how focused we are on refreshing the trades because it also comes back to the longer term sustainability in the trading of our malls. Got it, thank you. Thanks Terrence. Next, can we invite Raison from HSBC to unmute yourself to ask questions. Morning Raison. Hi, morning management team. Do you questions? Firstly, just a quick one on numbers here.

Notice that under the other items for net tax adjustments about a 6.8 million, just wanted to get a sense is the 4.6, that's retained for general working capital purposes being parked under this because I think year on year wise, in the first half of 2025, there's probably some that's due to CAT tape being provisioned, but I wasn't expecting such a big number. Yeah, Raison, that's correct. 4.6 is included in the 6.7 million. I see, I see, got it. That's clear, thank you. And then maybe just moving on to the next question. Firstly, maybe on the cost rate point, just wanted to get a sense with regards to how much you see as an imperative to, or urgency to embark on the AEI because, and I mean, we are seeing Joho Baru, CD Square already doing some AEI on upper floors. And then given that the expiry, the bulk of the expiry for the more is probably occurring in FY27.

So are we gonna wait till like FY27 to expect maybe some AEI works, or maybe you would be engaging your anchor talents, your mature, like what you did ahead of time? Okay, Raison, when we embark on any AEI, we will plan now and see what is the best opportunity time for us to do it. And also working backwards to say, what are all the planning process, the planning applications, the engagement of agencies and so on, it's gonna take, right? It's not gonna be like overnight that you can decide to do it. We plan ahead, right? So while RTS is gonna open, it's not something that, or because it's opening, so we must also complete our AEI on time. I don't think that's the intent. What we also want to do is also want to observe, want to learn, you know, when that happens, what is the, any learning point that we can pick up from there, perhaps you can find, continue to fine tune our trade mix as well.

But engaging with anchor tenants, definitely something that we will do ahead of time, whether the certain tenants, we think it's gonna fit into the new causeway point that we are looking at, because as we shared before, our idea is to transform causeway point into more originals, more instead of, currently it's more a, more that serve just woodlands catchment. So we want to expand the trade mix that has the ability to pull people from a wider catchment market, right? So it's gonna be a regional model. So with that in mind, what are the kind of trades, what are we gonna put in, not just the hardware, but the software as well. So this is something that we are planning. And again, our AI is gonna be done in stages, right? So the model continue to trade while we look at doing it in phases over time. And sorry, Richard, maybe I just add on, right? I think our perspective for the enhancement of causeway point is not just a response to potential risk.

There is a lot of opportunities from the infrastructural changes in the North. And with this AI, we are seeking to tap into these opportunities. So it's not just a reaction, right? To the RTS, but we do see tremendous opportunities. Right, thanks for the color. Maybe just one final question on the acquisition. Notice that your slide 33 actually added that new payload acquisitions. So I guess probably are turning a little bit more acquisitive. Just wanted to get a sense in terms of your preference for maybe, let's say if you're presented with a partial stake in a very strong dominant regional mall versus your like just maybe a 100% stake in a neighborhood mall, because we do know that I want to cut on the same transacted at a pretty cheap valuation. So I guess you'll probably be looking more at a strategic fit for the portfolio

rather than just pricing alone. Yes, definitely. I think for us, we look at it from a long-term perspective. I'm not sure in terms of the buyer for I-12, what's their plan for that asset, right? But for us, it's a long-term game. It's a long-term whole. We have, in fact, we have sold some of the smaller assets before, assets that did not fit into our portfolio. So again, we are very mindful about acquisition, discipline approach, something that we feel that's gonna value add to our portfolio. Otherwise, it doesn't make sense, right? I mean, we're just buying for the sake of buying. Again, sometimes headline numbers may not be showing the full picture, right? I mean, why is it at that price? There must be some underlying reasons for that, right? So for us, it's about ability to contribute and add to a portfolio in a meaningful way. A Christian is the sole one we look at maybe, even if it's not immediate, it has to be one that we believe can give us that we did in a short period of time, right? So all this is a consideration.

And fundamentally, even the infrastructure is important for us because you look at our strategy, it's always about having malls with strong catchment, strong catchment, strong ability to spend at the mall because spend in a meaningful way, even though it's basic necessity, but we still need people with a propensity to spend for that category of products that we have. So definitely, yes, we will be very focused on anything that we consider. And as I shared this now, when it was available, did we look at it? Of course, I mean, it's our job, it's our duty to look at every opportunity that's available, but whether we proceed or not, that is another question. Got it, got it. Thank you, Richard and Tim, thank you. Yeah, thanks, thanks, Raison. Can I invite Derek from Morgan Stanley to unmute yourself to ask a question, please? Good morning, Derek. Hi, thanks, can you hear me? Yes, yes, we do. All good?

Cool, just two follow-ups. Just on Metro, the lease had a costly point, when exactly is it expiring? And if there's an early pre-term, does that jumpstart? The AI commencement and on cost of debt guidance, just to clarify, is still 3.3% even to the quarters, cost of debt is really 3.2%. Yeah, I will leave that financing question to any. So if you ask me about the tenants in our mall, whether it will hamper our planning, the short answer is no. Because like what I say, I mean, when we undertake AI, we always do it in phases, right? And we can do different parts of the mall to prepare it, and so on. So it doesn't really always have to be one whereby we have to wait for certain lease to expire and so on. Right, so it's not conditional on Metro's lease, per se.

Okay, now when exactly do they expire? Okay, I can't give you a definitive, because it's not public information. I'm not sure Metro will be very happy if we share that. Yeah, so really, I mean, the only thing that we can give comfort is our AI is not determined by their expiring. Okay. Yeah, very. Your question, yes, although the quarter is 3.2%, you know that the five-year IRS is pretty good. So I mean, if we were to have new hedges, this will actually be not at the current low solar as well. So I think given that one Q is really 3.5%, if you keep constant at 3.2 for the rest of the quarter, it will be around 3.3%. Okay, got it, thank you. Okay, thanks, thanks, Terry. Next up, we've got Dan Xian from GS.

Morning, Dan Xian. Hi, my name. Can I ask about the distribution that's with health? If I recall, this is the first time, other than COVID, that you're withholding distribution, right? Is this also a function of hearing? And can you tell us through when we go into second half, what is the decision process in determining whether to pay this out? Okay, I don't believe that this is the first time. I think we have done it before, within the year, maybe the first half we retain and then we release and second half. So it is definitely not the first time, at least during my time, if I can remember. So again, it depends on where we see potentially there could be just need for short term basis and then the decision to decide whether we want to distribute at the end of the day. Again, there are many areas that we can look at in terms of how our performance continue

to show for the next six months, whether there's really a need for us to keep this amount of money or whether this amount of money it's used during the six months itself. So there are many considerations that we will look at, but if we don't need the money and we can deliver what we wanted to do, yes, there's something that we will be able to distribute at the end of the year. By needing money, you are also considering gearing. And I think previously when you kept- Because this 4.6 million is not gonna move much needle in terms of gearing. It's not from gearing perspective. Okay, so on a full year basis going forward, I think 100% peer ratio is to a fair assumption? Yes. Okay, so okay, got it, thank you. Okay, thanks Tan-Shen for your questions. Thanks everyone for your questions as well as time today.

I don't think we have any more questions from the ground. So thank you again for joining in FCTs Plus Half 2026 results briefing. If there are any further questions, feel free to reach out to me and have a great day ahead. Thank you. Thank you. Catch up soon again. Bye.