1H FY2026 Financial Results Webcast Briefing

Hi, good morning everyone. Welcome to FLCT's first half 26 results analyst briefing. We trust you have received our announcement pack release this morning, which is also included in my email to you earlier. So first off, a quick round of introductions to my colleagues in the room. We have in the middle, Emtia, CEO, and Dohalef, Wakiel, our CFO, and Jay Dohi-Sai, head of Port Volume Management. And last but not least, please also introduce Justin, who joins us as head of investment. As usual, we will pick up this briefing with a brief run through of our results presentation, followed by a Q&A session. For questions, you can either use the raise hand function or send your queries to me via text of email. We'll read it out. At the same time, we would appreciate if everyone can limit your questions to two to three per round for everyone in the room to have an opportunity to ask their questions. With that, I'm going to hand the time over to Emtia to kick off the presentation. Over to you Emtia. Thank you, thank you. Good morning, everyone. Thank you for joining us today. Happy to present the key highlights for the first half of FY26.

Firstly, our distributions, our DPU for the first half of FY26 is 2.95 Singapore cents. We have a distributable income of 111.9 million. This translates to analyze DPU of 6.6% based on the closing unit price of 89.5 cents as at 31st of March, 2.06. The DPU of 2.95 cents includes a discretionary capital top up of 13 cents, which is 73% lower than the 48 cents in the first half of FY25. In line with our earlier guidance, capital distribution for the first half period represents about 4.4% of first half FY26 DPU. This is consistent with our intention to preserve that gate room for growth while supporting near term distribution stability. DPU is a cumulative income before capital distribution increase due to increases in adjusted FPI, partially offset by 75% of the top 26 management fees payable in units.

On the portfolio management front, we achieve a 96.1% occupancy rate along with a 4.9 year wheel across our entire portfolio. LNI face random versions remain healthy with a positive reversion of 9.8% on an incoming versus outgoing basis or 26.2% on the average versus average basis. For the six month period between October to March 26. I shall now hand the time over to welcome our speakers to the five chairs. Thanks, Andrea. I will now walk you through the key drivers behind our financial performance in the first half of FY2026. Our revenue and adjusted NPI saw an uplift this year primarily due to the positive rental reversions and annual increments from RENT to review of Australian and European LNI segments. Four half year contribution from 2012 link.

However, this games were partly offset by investment of 357 calling districts in September 2025. Higher vacancy at ATP and Farm Bureau Business Fund. Higher non-recoverable land taxes for Victoria and Queensland in Australia. The next slide will cover our DPU performance over the past three financial periods. Happy to share that first half FY26 DPU before capital distribution saw an increase on both a sequential and year on year basis, which is underpinned by the positive rental reversions and annual increments from RENT reviews from our Australian and European LNI segments together with the stronger AUDI dollar against SING dollar. We now move on to our balance sheets on slide 9.

The value of our investment properties increased by 1.6% to SING dollar 7.1 billion, largely attributable to forex gains from the stronger AUDI dollar, partially offset by the weaker Euro and pound sterling against SING dollar as a 31st March 2026 compared to the last year end. And the capital expenditures incurred during the period. Loan and borrowings decreased mainly due to the repayment of borrowings using divestment proceeds from 357 calling streets. With that, the NAB per unit stands at SING dollar 1.12 as our 31st March 2026. We now move on to capital management. As of 31st March 2026, FLCT total gross borrowings was around SING dollar 2.3 billion with SING dollar 400 million of under-committed liabilities exceeding the debt obligations of SING dollar 242 million due in this financial year 2026.

Now we zoom in on our debt metrics. Gearing decreased by 1.1 percentage points to 33.7%, leaving us with a debt hit room of SING dollar 727 million before reaching the 40% gearing threshold. For reference, our pro-comaurement rate subsequent to the acquisitions of the Netherlands properties announced recently would be 34.4%. We continue to maintain a wealth-space debt maturity profile with just 10% of the debt's zero-point financing in this FY2026 and no single-year accounting for more than 27% of the debt. Our lease-a-plain capital management approach has delivered a stable average cost of debt with 3 short months and 3 months cost of borrowing at 3.2% and 3.1% rest- of-day fee. Now we go to the distribution timetable.

Our BPU for the first half of FY2026 will be paid on 22nd of June 2026. And now I hand the time to Jay who will cover our portfolio highlights. Thanks, Wakiya. Good morning, everyone. For the first half of FY26, positive reversions for both LNI and commercial segments have led to an overall positive face rent reversion of 9.8% on an incoming versus outgoing basis and 26.2% on an average versus average rent basis. Moving on to our occupancy review. Our portfolio occupancy rate stood at 96.1%, as at 31 March 2016. LNI occupancy remained robust at 99.8%, reflecting sustained high demand for logistics in industrial spaces. And commercial occupancy adjusted slightly to 88.4% from 89%, primarily driven by a non-renewal app-based business buyer.

Approximately 85.1% of our portfolio leases are embedded with CPI-linked indexation or the bids escalations. On to our top 10 tenants who currently account for 25.7% of our portfolio QRI, with the highest contributor at 4.1%. Our tenant base is well-diversified across resilient sectors. Moreover, six of our FLCT's top 10 tenants have leases in multiple buildings with varying lease expiries. In addition, eight of our top 10 tenants are from the Logistics Industrial portfolio. We continue to have a well-diversified tenant composition with healthy exposure to resilient sectors, with 70.2% of GRI contribution from our LNI tenants, the highest weighting in 3PL transport and freight savings. Approximately 89.2% of GRI is contributed by government-linked core and resilient industries, as well as the attractive new economy sectors.

I will now hand over the time back to Antia for the rest of the presentation. Thanks, Jay. We are pleased to have announced the DPU accretive acquisition of a prime logistics facility in Harpett, the Netherlands in April, subsequent to the quarter end. The facility is strategically located near the A67 motorway, which runs access to major cities such as Antoben, Van Do, Antopend, and the asset is only 20 minutes drive away from Antobend airport. The newly completed asset is fully leased to DSV, a global transport and logistics group, with a long wheel of 9.5 years and yearly rental escalation linked to super-R. The acquisition complement of the FLCT logistics and industrial portfolio is well aligned with our strategic objective of growing our portfolio of high-quality logistics and industrial properties. Diving into our ESG highlights, I am pleased to update that we continue to make positive strikes towards our ESG commitments.

As the effort differs of much, the total solar capacity from the FLCT portfolio is at 90.9 megawatts, while over 90% of our portfolio by GFA is either green certified or pursuing green certification. In closing, let me briefly touch on the key trends shaping our operating environment and how FLCT is responding strategically. For the demand side, companies are prioritising best-in-class assets in established locations as they optimise and diversify their supply chains. Similarly, population growth and e-commerce adoption continue to underpin sustained demand for logistics. Supply chain resilience trends, higher inventory levels, digital adoption are also driving demand from modern warehouses, with logistics providers focusing on streamlining supply chain networks, and at the same time, the Middle East tensions are reshaping trade routes. Great constraints are tightening site selection and compressing new supply, which works in favour of existing assets.

Lastly, forced pressures from energy prices, geopolitical shocks, interest rates, policies and forest volatility will continue to affect the operating environment. But importantly, these same dynamics are also creating opportunities, particularly as supply chain realignment open doors to attract customers across diverse geographies and industries. Across this backdrop, occupiers' decision-making is expected to remain cautious in the near term, particularly in Australia where domestic capacity constraints and rising energy interest rates are compounding the softer macro outlook, and in Europe, demand is improving. And the market is being stabilised by a shrinking development pipeline rather than a demand that goom, and vacancy across our key European markets is expected to peak by 2026. We are also mindful that valuations may face some pressure as one will soon evaluate.

Let's say we are not seeing these statements continuing from the microtif. The market is transitioning to a more balanced and sustained phase away from the subsidy-driven dynamics of recent years towards a quality-driven environment where prime, well-located assets continue to outperform, and performance is shifting from subsidy to quality and secondary stock, with where the greater pressure is in fact. FLCT's portfolio is deliberately positioned on the right side of that divide. Our response is deliberate with a focus on best-in-class assets, maintain a diversified portfolio across developed markets, and then actively see opportunities arising from a market-based location support the very strong portfolio. We are well positioned at the second half of the financial year. We will now open the board with questions, and now have a time we will go back to see here the model of the Q&A session. Thank you.