2Q & 1H FY24/25 Financial Results Briefing

Good morning. Thanks for joining us this morning for MIT second quarter and first half financial year 2024-25 results briefing. MIT has released its second quarter and first half financial year 2024 and 25 results yesterday evening. We have the management team to present the key highlights of the results. Ms. Lili Li, CEO. Ms. Kuo-Gengfong, CFO. Mr. Peter Tan, Head of Investment. Ms. Serene Tam, Head of Asset Management. And Ms. Chen, Shokim, Head of Marketing. So just to start off in terms of the key highlights, if you are flipping to these slides, you'll be looking at slide five. I think for this quarter, it has been, I would say, quite non-eventful business very much as usual. We do report higher net property income. I think whether do you compare quarter on quarter or year on year, Osaka data center is key contributor, right? I think for the final details, you will probably hear it from Kingfong later.

So I think in terms of BPU, we are quite happy to be able to deliver a 3.3 cents BPU. I think this, if you look at it on a year on year basis, is a 1.5% increase. Of course, on a quarter on quarter basis, I have highlighted last quarter. I think in terms of the MPI margin, etc. is a little bit on the high side last quarter. So I think this quarter is a bit more, but it also means that I think in terms of the BPU, we do see a slight decline. Operationally, oh yeah, and maybe it's also good for me to just highlight at this point that for this quarter, we have finalized the extension with AT&T. So I think the extension is for a 17-month period. I think in terms of rental, I reckon this would be a question that you all would ask. So I'll just address first. The rental rate is, I would say, is lower close to what they have signed on initially.

If you remember, this is the second extension. So the first extension was at the premium. I think in consideration of, for all practical reasons, we think that just accepting the extension is a better move for us. I guess the other side of it, if we don't accept the extension or we hope for even higher rental rates, is the fact that you will have some downtime in trying to fill up the building. And during this period, it's probably a zero income type of situation. So I think the extension of AT&T is actually a good development for us. It gives us more breathing space for a good 17-month. But nonetheless, it's really kicking the can down the road. And we will continue to work on marketing the, exploring the various options that we can work with for San Diego. Going on to the operational performance, the average overall portfolio occupancy has actually increased, I would say, quite well, from 91.9% to 92.2%, largely due to the vendor

build lease we're commencing. But I think just like to remind that this vendor build lease comes with a one year rent fee. So at this point, we are still during the rent fee period. So there will be no DPU impact arising from this. The other point to highlight is the rental revision. We are happy to report that we have achieved a 10.7% across all property segment. This is something that we are quite happy to be able to achieve. But nonetheless, I think we also have to bear in mind that the rental revision, a large part of it comes about because we do have leases that were signed on during the COVID period. So those were at relatively lower rents. So I think going forward, we would expect that the rental revision rates to mule down a bit, so probably near the single meet digit.

The third point that we have here is really the acquisitions of the property that we have recently announced in Tokyo. So we have just completed it yesterday. In fact, it was like halfway through our board meeting that we actually completed. And the last point is really on the distribution reinvestment plan. We are quite thankful to these unit holders for taking up the option, for taking up the options to order elections to receive units. So we are able to retain about close to 17 million. So that actually helped to mitigate some of the effects towards our leverage. Okay, next I will pass on. Okay, I will go to the financial performance as well as the capital management update. Year on year, comparing the second quarter, net property income increase by 4.6% to 134.5