3Q 2026 Business Update Conference Call

Good morning, everyone. Thank you for joining in Fraser Centrepoint Trust 3Q FY26 Business Updates earnings briefing. I've got here with me today the senior management team, Richard, who is our CEO, Annie, who is our CFO, as well as Pauline, our managing director for investment and asset management. As you can see from the contents, we've got a lot to go through today. So without further ado, I'll pass it on to Richard. Hey, thanks, Judy. Good morning, everybody. So let's get down to business. For this quarter, we decided to instead of jumping straight into the business update, we also included the recent activities that happened around itself. The first one being the divestment of white sand. Next slide, please. Okay, I'm not going to go into every detail here, but just a couple of quick highlights. The property was transacted at $467 million, and the last valuation was

done at $431. So that kind of gave us a net gain of approximately 32.4%. And this transaction is also at a premium to the valuation at about 8.4%. And the entry or the rather the exit yield based on 2025 year end NPI, it's about 4.6%. So some of the key rationale you can see there, of course, one of the main one is actually the reduction of gearing from 40% to 36.5%. That's giving us a little bit of hit room for us to, again, look out for opportunities in the market, which we did. And I'm going to share shortly as well. Okay, this is just some information on white sands. Probably most of you are familiar with this. Also just a couple of highlights. The lease hold for this asset has gone down to about 67 years. And it's also the smallest size mall in our portfolio of about 150,000 square

feet. So some of those are also considerations we take into effect when we look at the divestment of this asset. Next slide. So what are the end product with this divestment? Aggregate leverage dropped to 36.5% giving us a good hit room. NAV actually went up because we divested at a premium. There's a slight dilution of DPU by about 1.9%. Okay, next slide, please. Okay, so what did we do with the hit room that we have managed to obtain from the divestment of white sands? We participated with the sponsor FPL and our joint venture partners in this Bayshore Drive site. The one, as you can see, that is with the yellow star on the right side of this pictorium. Okay, next slide, please. Okay, very quick run through

on some of the key details. Site area is about 618,000 square feet. What we did is the tender price is about 2.1 billion. But more importantly, the total development cost for the retail portion is approximately 613 million. The GFA for the commercial portion is about 238,000 if you round it up. And the estimated NLA ranges between 160 to 180,000 square feet. It's a good sizable mall if you can reach the upper limit of this NLA. Our joint venture partners, Sunway MCL and also Sake Sui House. The target completion for this project is roughly N2030, so it takes about four years of construction. Okay, next slide. Okay, so some of the key highlights of this site. Of course, I mean, most of us, if not all of us are familiar with the

precinct itself, this is the Bayshop precinct, an area where it has got high density population and also, I would say, pretty high income range for this whole precinct itself. So this will be the only commercial site in this whole precinct. And it's in a location where it's also an encompassed part of the Burdod region as well. And what is important is also when we look at our investment criteria, one of such is definitely looking at connectivity. And this site, again, it's on a car light precinct and it has a direct connection with Burdod South MRT station and also a new bus interchange. The population is expected to continue to grow, as you can see from this diagram. Some of those developments that you can see here actually will be coming on stream. So we are expecting around 10,000 new homes that have been planned and will be developed

around this mall itself. And the site itself, I mean, FPL and its partner will be actually building about 100, well, rather 1,280 residential units. Of course, this site is also close to other amenities. It's going to be located next to the largest Safra clubhouse, which is also due to open in 2030. So a lot of amenities, growing population and very good connectivity.

Next slide, please. Yeah. So these are some of the strategic rationale. Some of them I've mentioned before. Definitely, it fits into our criteria of a prime suburban mall with a very good connectivity with a growing population. And also, if you look at it, this also gives us an opportunity to be looking at development as a new growth driver. I mean, the question is always about what's next? Is there malls for us to purchase? What are the opportunities available? So this will give us a new opportunity to look into. And I would say that not every developer or not every read in Singapore has this capability. So it's just a couple of us who can partner with our sponsors to do this kind of thing. So in a way, that will give us an opportunity as a new source of growth.

This site has excellent location. That's something that I mentioned just now. Of course, the other critical part is if we get into a development of such, in a way, we are entering at a very attractive yield. So the yield on cost is approximately 5%. We divested white sands at 4.6%. So you can see that kind of abitrage that we can make if we are able to get into a development project. And by participating from the onset, it also gives us the opportunity to shape the direction and the more that we want it to be, how we want the more to be positioned, etc. And I talk about the fact that this is a very highly populated region in Singapore. And the retail space, the capital in this area is actually significantly lower than the Singapore average and also most part of Singapore as well. Okay, next slide. Okay, then now,

turning back to the VAU or the business as usual, in terms of some of the key highlights for this water. Committed occupancy remains very strong. Again, it's over 99% with some frictional vacancy while we churn out some of the spaces. Year-to-date shopper traffic and tendencies continue to be positive. Traffic grown up by 2% year-to-date basis and also tendency is at 1.8%. Capital management, here you see we actually stated the gearing at 40.4%, but that's because the completion of white sands is going to take place sometime in September. But if you take that into consideration, our gearing would have come down to 36.5%. And the other positive thing to note is also the cost of funding has continued to come down. So we are looking at 3% for this

third quarter. Outcome more AEI update, we will go into a little bit more detail, but happy to say that we are on track to complete and over 98% of the space has already been pre-committed. Next, AEI is also progressing very well. Phase one achieved 87% commitment and also 73% of those spaces at this phase is actually new to more brands and concepts. High level microeconomics, GDP, we are still looking at 2% to 4% for this year. Surprisingly, Q2 actually came in really strong at 5.7%, but MTI has kept that estimate of 2% to 4%. Core inflation for June came in at 1.6%, but they also maintain the inflation estimates to be around 1.5% to 2.5%. Hopefully, the announcement by MES can also

keep the inflation in check as well. Retail sales for Singapore on a whole, year to date is about 3.3%, and FCT came in at 1.8%. Of course, the Singapore sales figures also include the entire sales, those that happen in Archer Road, online, etc. Our sales is just purely our portfolio. FNB sales, Singapore as a whole, 1.1%. For FCT, we grew at 2.1%. Rental, again, similarly, we are also on an upward trend,

comparing with the market as a whole for suburban primary tier rents as expected, or actually grew by 1.4% year-on-year. In terms of supply, continue to be limited, especially if you look at significant suburban space. Between 2026 to 2029, we are looking at close to about 447,000 square feet of suburban space. These are actually multiple sites. The largest probably is the one in Park Town to 107,000 square feet. The one in Chincharoo is about 130,000 square feet. The rest are about 100,000 square feet and so on. It's quite fragmented. It's more you would deem as a neighbourhood centre rather than a pure prime suburban mall. So limited supply is expected for the next couple of years.

Next up, it's the financial highlights. I'll hand over to Annie. Thanks, Richard. Good morning, everyone. A quick update from me on the financial highlights for this quarter. As mentioned earlier, I think gearing for this quarter stood at 40.4%, which increased slightly from last quarter. On a pro-forma basis, post-whitesand divestment, the gearing would be approximately 36.5%. The interest coverage ratio remains healthy at 3.66 times. Cost of debt for the quarter is around 3%, which is a decrease of 20 basis points from last quarter and 70 basis points reduction year-on-year. We expect that the full year cost of debt for this year to be around 3.2%. Around two-thirds of our debt is fixed at quarter end and credit rating for movies remain unchanged at BAA2 stable. Next slide, please. All refinancing in FY2026 has been completed. The next refinancing will be the first quarter of

2027 and we have commenced discussion with the banks on the refinancing. With the refinancing that was done this year, the debt maturity profile is, you can see there is well staggered and there is no more than 30% borrowing that is due in one financial year. I think with this, I will hand over to colleague who will walk us through the portfolio and AI highlights. Thank you. Thank you, Annie. Good morning, everyone. I think Richard has touched on some of these key performance metrics, but I'll try to provide a little bit more flavor as I go through the slides. On this slide, you see committed occupancy. Committed occupancy for the portfolio has maintained at the high 99% for this quarter. You see that consistently over the past quarters or so, the occupancy has maintained at this good level. The quarter to quarter fluctuations is largely due to tendency trend because one area of focus for us is also constantly improving and

canceling the trade mix for our malls and that entails to a certain extent some downtime. Next slide, please. On this slide, you see that both shopper traffic as well as talent sales have maintained upward trajectory, both on a quarter to quarter basis as well as a year-to-date basis. In terms of shopper traffic, on a year-to-date basis, we have actually increased the shopper traffic by 2% and also talent sales by 1.8%. In terms of looking at the talent sales for the quarter, we do see that it's at 0.2%. Arguably, it's a little bit flatish, but then that's due to the churn as well as the refresh that's undergoing in our portfolio. Just to give a couple of larger

examples, say for example, at Tumbau Plaza, we have actually recovered the cinema space and we are repurposing that for indoor activity park. The other example would be at North Point City whereby we are looking at repurposing again the gym space into a duplex for a unique group. So all this is in view of the fact that we need to actually maintain the relevance of our offerings. We've also looked at the sales productivity of our portfolio. So on a total basis, the sales productivity of our portfolio has continued to improve somewhere in the region of 3% more than 3%. When we did dive further, we do see that the top few trades that contribute more than close to 80% of our total sales have actually shown an increase. So the top three trades,

for example, would be the likes of F&B, beauty and healthcare as well as supermarket. So that lends credibility to the fact that our portfolio being very much focused on convenience, necessities, non-disquestionably remains very resilient and robust in terms of trading performance. Next slide, please. So this slide, we look at the wheel 1.7 years.

It shows very stable cash flows. And if you look across the lease expiries in the medium term, looking out, say over the next three years or so, we do not see any concentration risk in terms of lease expiry. To date, we have the risk or rather as at the end of the third quarter of this financial year, we have the risk more than 80% of the leasing stock in FY26. So we are left with 4.9% by GRI. And a lot of these or the bulk of these are actually in advance-negot or documentation stages as we speak. Next slide, please.

I think our key focus that I alluded to earlier is that there's always a need to maintain the balance between protecting the occupancy and also updating offering. So refreshing the trade mix ensures that our portfolio of malls continue to be relevant to its shoppers. But of course, that would entail some short-term pain in terms of downtime. So over the course of FY26, we have brought in 69 new to portfolio tendencies. And just to highlight that these are new to portfolio. So that would also be for the respective, for the various malls, new to more brands that we are bringing in that is not included in this 69 count. And all this lends diversity to our offering. So you see that it's a mix of not just FMD, but also across the different trades,

lifestyle, as well as fashion. So my take on this is that the Singapore retail market continues to remain active. Tenants are prioritizing the prime malls to actually expand their market presence. Next slide, please. Okay, this slide shows or demonstrates our focus on driving traffic to malls and also driving the sales conversion. So a lot of hard work on the ground by the team in terms of sustaining the positive sales growth trajectory. And there's a lot of focus on bring the experiential to our shoppers by engaging them. And that's all with the view of fostering shopper loyalty, as well as repeat visitation. Next slide, please. Okay, so I'll cover a little bit about the asset enhancement initiatives. I think one of the key pillars of our growth

would be enhancement growth. How do we actually extract more value from our existing portfolio? So Alga Mall, which is at its tail end of the asset enhancement, I'm happy to share that in terms of the progress, it's actually on track in terms of project implementation, as well as leasing. We're looking at completing the AEI in the last quarter of this financial year. And if you recall, when we first shared this asset enhancement initiative, we provided an indication of about 7% ROI. So happy to say that we are on track, if not looking at outperforming this ROI. And through this AEI, we have transformed them all, not just upgraded the fiscal real estate. We have also improved its trading potential in terms of sales, in terms of rents, and also looking at

valuation, delivering value, Asian uplift to the investors. Okay, next slide, please.

In terms of the other larger AEI that we have, or working on for next, we have actually commenced phase one in May of this year, after taking back the space from E-SATA. The first phase is focused on unlocking value through resizing and reconfiguring this anchor space. So happy to share that for this first phase, we have also achieved a pretty healthy leasing traction, right, in terms of commitment of leases, in terms of getting our target brands to reposition this space. And the new to more, we have for this phase one, we have achieved 73% new to more brands and concepts. So looking positive in terms of the trade remixing and the value enhancement objectives that we have set ourselves to. And phase two is also on track for commencement. We

are looking at starting in the first quarter of the calendar year 2027.

Right, ESG.

Thanks, thanks, Pauline. I'll go through some of the slides on the ESG part as usual to make sure that we have a comprehensive review. So, as you know, for Phrasals as a whole, we are very active in terms of the place making initiatives at our malls. I think from the World War II Day at North Point City, as well as have a hope, which is a signature event at the mall itself to something for the kids. In terms of introducing them to EVs, there's been a lot of initiatives on the ground again to continue to engage the community. And as well, for all walks of life, shoppers from all walks of life, we've got the silver generation community walk at Century Square as well, and various other sports activities such as speaker ball at the end. Our next pass is on to Richard, who will go through looking ahead.

Sorry, thanks, Judy. Just wrapping up what we have just shared today, a lot of focus again is on sounding these key pillars, enhancement growth is something that we have spoke about at large. And we have again, proven the capabilities that we have at Phrasals in terms of executing, leasing up, and also bringing in concepts and also freshness into the mall. So we shared about Alkang Mall, we shared about NEX, and I know some of you will be wondering how come we haven't shared about Conway Point. We are developing the materials, we are developing the flight through, and so on. So we just need to make sure that all the documentation are in place, MOU are signed before we can share this. But for Q, we will be able to share the AI, may not be the entire extent, but at least some preview of what we have in mind and what

the plans that we have for Conway Point. But AI is a key component of our growth strategy. The next one is of course, looking at acquisition, divestment, and we shared about the success that we have achieved in our bid for the Bayshore flight. That gives us another new growth opportunity in terms of bringing our portfolio through development. And as I mentioned, this is a key, it's going to be one area that is key differentiator for us as well, because not every weed in Singapore has the capabilities to do so. So we are very happy that we are able to partner with a couple of our partners together as a sponsor to be in this site. Organic growth, this is where again, the team works very hard on the ground looking at how we can continue to grow revenue, how can we continue to look at cost mitigation, right? So this is an

ongoing process for retail mall. It is something that we need to continue to be very focused, continue to be very sharp and work very hard on this particular growth strategy. Capital management, cost of fund has come down to 3% and as what Eni pointed out just now, we're expecting to close the year, the full year, this FY at about 3.2%, right, average cost of fund. The leverage has come down to about 36.5%. So like what I mentioned, it gives us the hit room which also provides us the opportunity to participate in that development itself. So with that, I will end our presentation and let's move on to Q&A because I've seen a lot of hands have really come up. Yeah, I'll give it back to you. Okay, thanks Richard. Okay, first up in the Q&A session, we have Terrence, can you unmute yourself to ask your question please? Morning Terrence. Hey, thanks Richard and Tim. Congrats on a very, very busy quarter. Really done well in terms of

the sale and also the development opportunity. I just wanted to ask on base show, I wanted to understand a little bit more. I think working through some of the numbers, we are sort of like for this $613 million, we are getting like almost $3,500 per square foot on NLA and to get a 5% year on cost, it sort of suggests that the stabilised rent for the mall will be above $20. So if you compare this against your existing malls across the FCT portfolio, it does seem elevated. So I wanted to understand a little bit more as to what the assumptions going into this and can this 5% year on cost be achieved in the first leasing cycle. Secondly, on cost way point, could you share on the NLA for Metro and what are some of the thoughts behind Metro

Right, Terrence, you have been looking at the computation of the rent itself. Over more than $20, that is quite sharp, but I don't think this is something that we are targeting, a little bit more conservative than that. But in terms of how we work on the return itself, there are a couple of key features of a mall that we need to recognise as well. Firstly, this mall, it's not a very large mall, it's 160, 180,000 square feet. So the tendency is when the mall decides you work on per square foot, it tends to sound a little bit higher than normal as compared to your next North Point CD. That's the first point. Secondly, in terms of rent itself, don't forget within the revenue portion, there are also other revenue. So rent is only one portion, but we also have other revenue that we can achieve to make up the entire revenue before you offset

your cost to get an NPI. The next point is also how the mall is going to be structured. If you notice, generally for retail mall, as you go higher and higher, the rent comes down because its rental is always against gravity. But for this particular development, we are looking at only two levels, basement one, level one. So significantly, every part of the mall is going to be pretty much a prime space. So with that and with proper planning, we believe that we could possibly get a pretty strong rental rate. And also, if you look at it, today is 2026, I mean, you're looking at four years down the road. So there's also this escalation growth that we are looking at from where we are today. So that's how we arrived at our estimated 5% yield. So I hope that gives you some color as to how we work around this development, this investment.

And of course, at some point in time where we have the plans in place, the development plans in place and so on, we probably can come back and share this with you guys and also with our investors. So the second point, it's about cost-free point, AEI. And in particular, your question is around metro. I'll share a little bit more than maybe perhaps Pauline can jump in as well. So the news came out on metro. It's nothing surprising for us because we have been engaging them for a very long time. And we kind of agreed in principle that keeping the department store as is in the current state, it's not something that we as landlord would want to do. And probably as an operator, they came to the conclusion that perhaps there are other ways in which they can be more productive, they can be more efficient. So they announced the business restructuring, and that's something that we have been aware for a while. We've been engaging with them and we see there

could be opportunity for us to continue to work with them with their differentiated approach of breaking up a department store into multiple concepts. And some of the concepts are interesting and will be relevant. But this is an ongoing discussion we have with metro as we plan our AEI. We are looking at, as we shared, we are looking at turning cost-free point, not just as a more dominant more in the north area, but also more like a regional more. So we hope to bring in interesting concept, interesting mini anchors, rather than having a very large anchor as what we have today. So that will bring a variety, will bring in more interesting concepts as well. So that is where we are for cost-free point. I'm not sure whether Pauline you like to add on anything as well. So maybe just a couple of points. I think in terms of timing, it's pretty much aligned with our plans for the commencement of AEI and the recovery of this space. And also,

I mean, this is something that has been at the back of our minds when we undertake the space planning as well as the trade remixing for cost-free points. So just to give assurance that, you know, this is news, but it didn't come as a surprise to us. We have actually been, you know, looking at, you know, this option as part of our overall planning for the asset enhancement. Thank you so much. That's what I have for now. Thanks, Terrence. Okay, next up we've got Yuciang from CLSE. Hi, hi, hi, Richard. Good results. Just quickly on the, recently there's this RTS impact report, right? 290 million net retail spending leakage. Has the team done any similar report and how does it compare with their findings? That's mainly the question I'm trying to figure out. And also, can you share the tenant sales performance for the last two years for CWP

and also Dogpoint? Okay, the report, yes, we are very much aware of that. And I don't think it's a significant deviation to what we have shared before, right? I mean, we spoke about engaging our own consultant to look at that CVRE was brought in. And what they have shared with us is also quite in line in terms of the projection 2 to 4% increase in sales leakage, so to speak, right? So nothing new. Even some of the survey that they have shown about what are the traits that is going to be more significantly affected. And if you had a chance to look through the report, it's also, they made a point that probably those in a northern region, the shoppers are already pretty much used to that. So they, in fact, they don't see that leakage to be

more significant in the north than other parts of Singapore. Again, this is something that we are, you know, aware of that. We are concerned about the fact, right, as we did our own studies and also work with our consultants. So by and large, again, you know, but having said that, we continue to watch this space, watch the market. As we plan our AI, we are taking note of what are some of the traits that we think, you know, we will like to reduce what are the areas that we want to emphasize more going forward. This also talk about, you know, this, this, besides looking at it from the leakage or impact perspective, there are also a lot of opportunities. And that's where we think, you know, we want to leverage on those opportunities as we expand our more to make it into a regional size more. Having the ability to capture more than just Woodlands catchment market, we want to extend it to potentially other parts of Singapore,

because this is going to be a major transportation hub. As we spoke, right, Woodlands is an interchange station, right? And where you can expect people from other parts of Singapore who wants to go to RTS would come to this station to change to the train that takes them into the D L line that takes them into RTS. So it's going to be more busy getting more people coming around and also not just Singapore, Singaporeans, right? I mean, we're expecting tourists who wants to go RTS or go to JB may also be using this route and also using this as a transportation hub to stop and transit. And similarly, people coming from JB, right? They are also going to be coming in because of this convenience and this ease of connectivity. So from a total perspective, the report doesn't seem to suggest anything different than what we have seen, what we have been aware of. And even if you're looking at potential impacts, so for example,

I mean, our cost is on the average about 16%, and in fact, our two assets in the north is slightly below 16%. So the impact of 2% to the sales leakage or 4% to the sales leakage, we're still within 16.5, 16.6%. The kind of range which is actually still very, very healthy, right? So that's how we look at it. On the sales for the two malls, I would say they have continued to grow. I can't give you the specific number, but they have been growing, right? So despite the fact that every weekend is congested, every school holidays, every holiday is massive jam, but the sales at our two northern malls have continued to grow. Okay, thanks. Our second question is on Bayshore, just housekeeping. Will this be consolidated equity accounted and then also related to Bayshore? Can you give the construction cost and the land cost split?

At the moment, we can't provide that information as yet because we are still, while we have an estimated cost that is kind of kept it, but we are still working through the cost with the partner, right? One of the partners is actually a construction company. So this is not available at this point in time, and even our 631 is an estimated as of now. So we will probably be able to update once we lock in the cost before the scheme in place, right? So that would be probably at a better time to do so in terms of how we accounted. Maybe Annie, you want to jump in on that? Yeah, you can. It will be accounted for as equity accounting because it's a JV. Okay, thanks. I'll jump back to the queue. Thanks. Thanks, Yuciang. Next up, we've got Jaredin from Jeffries. Hi, Monique. Hi, Monique. Very happy to see Michelle come through.

I mean, just the first one on base short, 5% you on development. I see that you have an NLE range there. Does it matter whether you're on the lower bound or the upper bound of that range? Does that affect your 5% assumption? Okay, it's more on the average, I would say, and be confident of getting that 5%. Yeah, average NLE. Okay, so 170 will be the underwriting.

Okay, and Richard, I think you've been quite balanced when it comes to income disruption. So would you be keen to pay out some of the dividend gains from right sense? You have about 30 million above that. Yeah, so how we look at this gains is, of course, is a possibility that we can explore when we can deploy this because as you probably are aware that we are going into a period of time where we're expecting quite significant, or rather we expect impact to our normal operating income because of AI at next, that's going to go and swing into phase two next year. Then we have AI at cost rate point coming on stream, right for FY2728. So this is where we would leverage on all our capabilities to again, kind of top up some of those impact that may come on stream.

So this amount of income that we have generated will be considered as part of the pool as well.

Okay, thanks Richard. Thanks, Sheridan. Can we have Rachel from Aquari unmute herself to ask questions please? Thanks. Morning, Rachel. Morning, Richard and Tim. Can you hear me? Yes, yes, loud and clear. Great, thank you. Yeah, so maybe following up from Geraldine's question. So you do have quite a bit of AEI that's happening next year actually, cost rate point next and then yeah, and they are quite huge as well. So I'm just wondering, you know, how are you going to think about capital top ups and how much left in your investment gains and you still have your Bayshore development ongoing also, right? So there will be cash as well. So can you give us some guidance on that? Okay, so for Bayshore development, the interest cost will be capitalized. So there is no impact or not significant impact to the overall DPU perspective or DI perspective, right? So we don't

need to be too concerned with topping up that portion. But certainly in terms of AEI, when we have two major AEI that's ongoing, that's where we will look at again, trying not to impact our investors' income during this period. So AMVs will be used if it's not enough, then that's where we could then look into this income. But we have, I mean, based on our estimates, we have more than enough for us to write, so to speak, the next two years of disruption. So I suppose the message to investors is don't be overly concerned if all the work's in place. We have our strategy in place. And of course, this over million comes in pretty handy as part of the overall planning that we have going forward. So yeah, my last note, don't need to worry about whether there's going to be significant impact to the DI. Remaining investment gains that you do still have?

Maybe, yeah, maybe we will be, or rather we may consider using part of this income to kind of support the impact or kind of smoothen out, mitigate the impact as a result of those AI works that's going to take place. And just to go back one point to Jaredin, sorry, my bad, I think the 5% is based on a lower bound of 160,000 square feet. I would just be reminded on that. Okay, do you have the amount of the remaining investment gains that you have in your books? We do have a divestment gains from previous divestment. Probably it's not something that I have off the top of my head, but if you could look back on some of this divestment, I think you could probably add up the numbers. It's quite significant. But I'm not even looking

at past divestment gains. I think with WhiteSense, I believe, and what we think we can generate over the next two years in terms of the performance of our mall, we are more than comfortable that we don't have to look beyond WhiteSense's capital gains. Oh, okay, okay, thanks. Thanks for that. Then my next question is on next ROI. I think you have committed quite a good currency. Is it still 7% or is it higher than 7%? I mean, we are only in phase one, right Rachel? So there's a lot more work to go. Of course, if you ask me as of now, the numbers are coming pretty good, strong numbers, but we still have a long way to go. So I'm hopeful that what we have done with Dampenis 1 and also Pauline alluded to the fact that our account we are expecting to come in above what we have estimated. And likewise, for next, I'm hopeful that we will do likewise,

but at least I think 7% is where our lower bound expectation. That one last one, this is the interest cost. This year, very good 3.2%. Any guidance for next year? If you look at the debt that is expiring, your Singapore debt has all been repriced to current rates. Yeah, Rachel, I think you can see from expiry profile that we only have 100 million refinancing to be done in FY2027. So with that in mind and the current SORA rate, I think our guidance wouldn't remain too different from what we have given. Okay, so flat-dish next year. Okay, got it. All right, thank you so much. Thanks, Rachel. Next, can we have Tabitha from DBS to unmute yourself to ask questions? Morning, Tabitha.

Hi, good morning, Rachel. My first question is on the next AEI. Can you walk us through the phasing of the works over the 2.5 years until the fourth quarter of 2028? And will the income disruption in FY27 actually be more minimal given that the additional square feet is true conversion of GFA from the KAPA? Okay, Pauline, you want to take the question, the first part, walk through over 2.5 years. Yeah, okay. So phase one, I think I mentioned earlier, it would be competing towards the end of this calendar year. Phase two will start at the beginning of 2027 and it should take place over the course of maybe the next 14 to 16 months or so. So in short, that is the phasing. Phase two would be quite extensive because it entails the decanting of the KAPA GFA to actually create a new trading floor area on what we call the

northern part of the mall, which is closer to where H&M is. Sorry, I didn't quite catch your question on the KAPA, the second question that you have. Oh, I wanted to ask on the income disruption in FY27. Okay, so given the nature of the works, there will be definitely some disruption. But essentially the way we plan the AEI is that it happens in stages. And as far as possible, I mean, depending on the microphasing, we will actually delay the recovery of certain spaces. So although one phase looks quite big, but within each phase, there are microphases. So it's either a case whereby we recover the space for the works later, or we try and bring back the post AEI spaces earlier. So this is how we actually manage

the staging of the AEI. As you are aware, the mall also continues to operate. So a large part of the revenue would still be forthcoming over the duration of the AEI. Yep, and also just to add, not forgetting that phase one will complete year-end. So the uplift and phase one will also help to defray some of the impact, so to speak, on the subsequent works that's going to take place. So that's how we do it. We do it like what Pauline mentioned, we do it in small stages. So when it's done, it will trade and then we move, we move, we move. And so some of those uplift that we have achieved will help to defray some of the impact. That's how we do our AEI. Maybe just to add all those. So you've correctly pointed out that phase two works involves decanting the GFA from the car park. The car park will still remain intact, but the space or the GFA that's attributed to the car park,

it's deemed to be GFA. So whilst we're keeping the area up, essentially what I wanted to say is that for phase two works, we're actually creating new retail spaces. So in a way, it's not decommissioning existing commercial space for the works. We're actually building new commercial space. Okay, so I hope that gives you a little bit more perspective. And for those of you who frequent next door worry, the car park is going to be there. We are not demolishing the car park in any way. In fact, we are adding more lots as part of the AEI. So it's a decanting terminology, but it's not a physical decanting. It's actually a theoretical decanting because the car park is actually residing on GFA that can be redeployed. Okay, thank you, Richard and Pauline. And then my next question is on the base shore development. So the cost is likely to be faced over the

four year construction period. Will it be relatively even or part of the capital in the middle stages? I think there are two portions to that. Of course, the land will be pretty much upfront. Once we receive the bill from URA, we have to pay. But for the construction cost itself will be over stages. We haven't really seen the S curve yet, but typically you could expect a slower upfront. And as you progress, then it catches up faster as you build. Because the initiative is about excavation and so on and also parling work. So you tend to speed up towards the later phases. Okay, thank you, Richard. That's all from me. Thanks, Tabitha. Next up, we've got Derek from Morgan Stanley. Good morning. Morning. Yeah, I just wanted to follow up on that base shore upfront land payment, given that it will probably take place within the next quarter or so. So how would that impact,

I guess, the four year DPU? I mean, it's 12 cents. Really that line is the same where you won't cross. You can use divestment proceeds, change MFU proportions just to safeguard that number, given all these moving parts in place, especially for the land, the upfront land cost. Yeah, so because we divested White Sands, right? So we're expecting the money to come in. And as I alluded to just now, we are targeting completion by end September, meaning the money is going to come in and we can redeploy the fund to towards payment of the land. So effectively, it's not going to affect the DI in any significant way at all. Oh, let's see. I just wanted to find out. And I guess for me, you know, you've alluded to, I guess, the relatively attractive Elon cause at 5%. But if you stack up, if you stack it up against, I guess the divestment of White Sands at 4.7%, the AEI at 7%, is it really that attractive? I mean, it's the premium of,

you know, 50, 75 bips over virtual malls, really that attractive for a new build. Okay, I think when we look at it, we looking at it holistically, right? First and foremost, White Sands, as I mentioned, is 4.6%. So you have about 40 bips get here and you're getting a 99. Okay. By the time you complete maybe 95 year lease whole, as opposed to a 67 year lease whole, that's remaining at White Sands. So again, there's value that you need to consider there as well. Secondly, this will be the only mall in the entire Bayshop we've seen, right? Again, it's going to give you that dominance. It's going to give you that resilience that you would expect from Suburban Mall. AEI 7%, I've been talking about the AEI is a fantastic return, but nobody seems to be, you know, looking at it or betting an eyelid on that. I don't understand why, you know, that is fantastic. And you're right, AEI gives you very, very good return. And that's why we continue to

do this work despite this disruption, despite this heavy hard work, you know, to do AEI. But we believe that this is where we can really create good value with our skill set. So AEI is something that I think it's above all acquisition that we have today. Coming back to this 5%, I mean, if you look at White Sands 4.6%, but you also look at some of the other investment at 4.3%. So buying, you know, Suburban Mall is getting increasingly more and more competitive. So being able to get in 5% is what we look at today based on our assets. Of course, we hope, you know, we can even surpass that when it ultimately comes to fruition, right? But at the 40 bibs gap for White Sands, there's really a very good arbitrage. And if you look at the market that is trading or some acquisitions being done at 4.3%, that then again gives you even a higher point of differentiation and plus a brand

new mall that has got direct connectivity to train station, bus interchange, the only dominant mall in a growing catchment. So I think all this has to view in collectively. And Richard, if I may add on, I think from total returns perspective, it makes sense also because when the mall stabilizes, that's why you, you know, also reap the revaluation gains, right? So you get some of that development gains as well. Yep. Oi, thank you. Thanks. That was helpful. Thanks, Terry. Next up, we've got Brendan from Citi. Morning, Brendan. Hey, morning. Thanks, Judy. Thanks, Richard. A couple of questions. Yeah. I just want to get your sense on your, your long term view of FCT, right? So if you look at, oh, you've been doing a lot of things, but if you were to look at like your post COVID DPU growth trajectory, it's been kind of flattish, right? Obviously, even being a lot of things. Just wanted to ask when you're looking

at all these acquisitions and your AEI, do you actually factor in on a forward basis, what that growth trajectory looks, looks, looks at, looks like? Yep. Yeah, you're, you're, you're absolutely right, Brendan. Actually, I think we are in a way kind of building up, you know, for the future growth because we have been doing so many things. So in a, in a way, there's a bit of disruption to our actual bottom line that we are able to generate. Every time there's a disruption, whether when we buy something, there's negative carry, or when we do an AEI, we need to stabilize to before we get a full up leave. And sometimes it's between different periods. So you're, you're right in a sense that we are actually building up something. But at the same time, if you look at the last year or two, we have started to, to show growth in our DPU. And I'm confident to say that this year, you know, you're going to expect further growth from what you received last year. So we are, you know, looking at growth, of course, the trajectory is

not as, as high as what some investors were looking at, yes, because we are still doing a lot of work, but this is going to give you, you know, continuous growth for now. And then, you know, most of them may be back loaded, so to speak, you know, when most of this works are done, hopefully, and stabilized. And that's when I think, you know, we are positioning SCT to, to be on a longer term perspective, right? It's not something that you expect the DPU to fall off the cliff. You don't expect the DPU to do turn negative, right? But we are looking at a growth, a slower growth now, perhaps, but that will probably be able to escalate as we complete more and more of this big, large, significant AEI. Okay, Ken Ken. And just going back to the, to this amount that you can top up, right? Does the retained amount of 4.6 million in the first half come towards that pool?

Do you in turn sort of give that out in second half? Any, you want to answer that? Yeah, I think 4.6 million also come into the pool. We have the flexibility of how much to release if we decide to in the second half. Okay, okay. Maybe I can just squeeze in one more since I, let's do some time, right? When I look at this, your wife says, say, all right, and then obviously with your recent acquisition, where does outcome more now stand? Because if you look at your historical divestments, right? It's been at a 150 to 200,000 square feet kind of annuity. So is this still a space that you're looking to compete? I think we, when we look at, we're looking at a couple of dimensions, size is of course one measure, but also we look at how much space that's going to come up in that location as well, right? So size is one, how strong the more it's going to be, what's the catchment market that's going to be as well,

right? So for outcome, when we look at overall perspective, and we shared this before as well, when we were looking at AI, we knew the site is going to come up, right? But nonetheless, we felt that it's timely for us to do the AI works, regardless of whether our sponsor were able to be in the sites. Now, because we believe that outcome, catchment market will continue to grow and can accommodate a size of about probably about four to 500,000 square feet, retail offerings in their location. So it is not a case of, oh, because it's 150, 160,000 square feet, we will sell, but it depends on, firstly, whether we have optimized the asset, we have opportunity to deploy it to something better. In this case, when we look at WhiteSense and be sure we believe we are deploying it into something better for the longer term. And how we coexist, just at how we worked with WhiteSense, right? When Fast series more was being developed, there's a lot of questions about

all, a lot of concern, you know, by investors that WhiteSense would be significantly affected because of PRM, but we had demonstrated our ability to actually coexist with PRM. In fact, we did, we continue to do better collectively. And our theory back then was also that this area can actually take on a size of about 400,000 square feet. So we are, likewise, we'll be doing the same for outcome. At some point in time, if somebody else comes in and tell us, okay, I'm interested in outcome, I can offer you this kind of price, we've interested, we will have to evaluate it. And then if there's opportunity for us to redeploy the capital more meaningfully, and we have, you know, optimized the value. Yes, there's something that we will definitely consider. And that has been our strategy or this wall as we grow, we also look at reconstituting our portfolio all the time. Okay, great. Thanks so much. Thanks, that's it. Thank you.

Okay, I think we have one final question, perhaps from Wilson. Jeffries, morning Wilson. Hi, morning, Judy, morning Richard. Just quick question on Bayshore, much as we covered earlier. So how much of that are you looking to take on for the Bayshore in terms of the upfront land payment? And in terms of gearing, I mean, accounting for both the pay down of debt from proceeds of WhiteSense, then incremental debt for Bayshore land, I mean, where do you see gearing or lending it? Okay, I think we are looking at probably after paying off the land portion, this financial year and it's probably lending about 37 ish, study above 37% gearing.

If that's the question that you're asking. Yeah, you know, we proformatted with the sale of WhiteSense, we bring it down to 36.5, right? So that should go up to slightly over 37 with the payment of upfront land cost. So we still have quite a good headroom. Alright, got it. Thank you. Thanks. Thanks, Wilson. Yeah. Okay. Thank you, Wilson. And all we have fast questions. I think we have come to the end of the FCT 3Q FY26 business updates briefing. Thank you for joining. And if there are further questions, please feel free to pull up with me and wishing everyone a great day ahead. Thank you so much. Thanks. Bye. Thank you. Bye.