3Q FY2025 Business Update Conference Call

Good morning. Thanks everyone for joining and a very happy Friday to you. Appreciate you dialing in to FLCT's 3Q FY25 Business Update. We released the Business Update last evening and you should have received a copy of the deck by now. If not, it's on our website or MSJXnet. So as usual, before we begin, quick introductions around the room, all familiar faces here. We have in the centre, Antia, our CEO, and to her right, Jay, our head of Portfolio Management. And across from me, W our CEO, and to my left, Jacob, our head of investment. And myself, CK, investor relations. So thanks again to everyone. I'm not going to hold your time up. I think without any further ado, we'll go into a free page of the 3Q FY25 Business Update. I'm going to put the slide on screen shortly. And as usual, if you have questions, either use the erase hand function or you can let me signal to me by way of dropping me a text or dropping us an email. So I'll put the slide up shortly and well done Terrence. I see you've really put on your head. Thank you. Thanks, AKA. Good morning, everyone.

Well, thank you for joining us today for FLCT's third quarter Financially 25 Business Updates. So also we have an overview of our performance for the third quarter. For the three month period, the logistics and industrial segment continues to be strong with the reversion rate of 55.8% reflecting the strength and resiliency of the FLCT portfolio. Aggregate leverage remains healthy at 36.8%. And now truly three month cost of borrowing has seen the slight uptick to 3.2%. Recording in progress. This covers an overview of the total properties in our portfolio. Except that during the number of properties we own in our portfolio is 114 assets. Our portfolio will remain at 4.6 years with overall occupancy at 92.5%. Do note that our metrics here include 357.3, which we have recently announced a divestment which is expected to be completed by 30 September.

And now we are now then over the time to Jay or take it through the portfolio highlights. Hi, Cynthia. Morning, everyone. So during the period, we signed a total of five LNI leases, which achieved a positive overall rent version of 20.3% on an incoming versus outgoing rent basis and 55.8% on an average versus average rent basis. That's driven primarily by the Australian markets. On the commercial portfolio, despite the leasing challenges, we are pleased to share that we have secured 13 leases over the quarter and registered a positive rent reversion across all markets. This brings our total leasing activity for Q3 to over 100,000 square meters, which involve 18 deals and an overall healthy average versus average reversion of 43.3%. Moving on to our occupancy review, as Anthea mentioned earlier, total portfolio occupancy rate currently sits at 92.5% at the end of June.

For LNI, our overall occupancy rate has taken a slight dip to 96.7%. This is primarily due to the exit of a tenant in one of our Sydney assets and a tenant exiting their break option in our Singapore LNI property, where we have secured and replaced the tenants at the time of this business update. The majority of our commercial properties are stable or slightly improved occupancy over the period as leasing activity remains challenging, but this reflects our strong efforts, leasing efforts. Our lease expiry profile reflects our proactive approach to lease renewals and backfilling bases. We now only have 2.1% of GRI expiring in Q4. Additionally, around 88% of our portfolio leases are embedded with CPI leaked indexations or fixed escalations. On to the top 10 tenants. Top 10 tenants currently account for 26.2% of portfolio GRI

with no single tenant or contributing more than 5%. A tenant base is well diversified across resilient sectors, which ensures income resilience. Nine of our top 10 tenants are from the LNI portfolio and five of our top 10 occupy multiple buildings across the portfolio with bearing lease expiruses. Portfolio tenant composition remains well diversified. We continue to have healthy exposure to the resilient sectors with 66.4% of GRI coming from our LNI tenants and the highest weighting within the 3PL transport and freight segment. Approximately 86% of GRI is contributed by government-linked core and resilient industries as well as attractive new economy sectors. As you would have seen already, a recent announcement dated 16 July in relation to our 357 Collins Street asset. The investment of 357 Collins Street enables us to exit the

Melbourne CBD offers market, which continues to experience structural challenges stemming from a widespread adoption of a remote work culture. Tenant demand remains subdued and tenant incentives remain elevated, making this a prudent and timely exit. This transaction will not enhance our portfolio metrics, but also lower our gearing. Importantly, the proceeds from the divestment will provide FLCT with greater financial flexibility to pursue high-quality opportunities in the LNI space, which are sectors that have strong long-term growth potential. Moving on to our ESG highlights, I'm pleased to share that we have continued to make progressive results in our commitments. Green certification achieved for FLCT portfolio is now at 90% and we continue to undergo certification and or renewals. At the end of June, our total portfolio solar capacity is 15.2 MW. I'll now hand over to Arjan for the finance section.

Thanks, Jay. I will take you through the capital management sections now. For this quarter, we have refreshed and consolidated our credit management information through getting to our debt profile and for your increase on our ESO reference. On the left-hand side, you can see our debt maturity profile. Total borrowing currently stands at $2.5 billion, where we have $3.9 million in under-owned facilities available to meet the $3.3 million in debt obligations due in the final quarter of this financial year. In terms of our debt compositions by currency, Euro stands at 49%, $30%, also in 12% and remaining 9% in all of ESO debt charts. On the right-hand side, you can see our key credit metrics gearing as 30th June increased slightly to

36.8% compared to 36.1% as in March 2025. This differs with a day-to-day room of $3.962 million before reaching the 40% gearing threshold. On a pro-coma basis, the post-357 calling street divestment gearing ratio and the corresponding day-to-day room of 40% are 35.4% and about $1.5 million respectively. You also can notice that the total borrowing has increased year-to-year and quarter-on-quarter at 3.1% and 3.2% respectively. I will now hand the time back to Antia, who will share the key trends and development issues. Thanks, Wakiong. These slideshares show us an overview of the key trends and developments that share our operating environment. I think on the first point on locational preferences, as global supply chains continue to evolve, location strategy has become increasingly critical

in investing a clear shift in demand towards best-in-class assets situated in prime logistics locations. On structural demand drivers, population growth, especially in Australia, and the continued use of e-commerce are driving sustained demand for modern logistics space, and at the same time, demographic shifts are also placing constraints on new supply, reinforcing the value of the existing portfolio and development strategy. On supply chain resilience, this remains paramount. Increased inventory levels and ongoing trade disruptions are viewing demand for robust logistics infrastructure, and however, we also note that market uncertainties are also causing some logistics providers to exercise caution in their estate plans and keeping the out-of-the-sledees efficiencies. While the party logistics providers are adopting more cautious strategies, this has sometimes led to delays in major investment decisions reflecting a broader trend

of measured expansion across the sector. On the interest rate environment, this remains uncertain due to inflation and growth constraints, and we'll continue to monitor these factors closely to ensure prudent financial management. On green infrastructure, which space constraints around power and land availability, then they are influencing site selection decisions and development facility. So overall, the operating environment continues to evolve, and we will continue to manage our capital with a view towards enhancing our long-term position as a developed market, and LNI focus as we do. This comes to the end of our presentation. Our hand is hungover.