2Q & 1H FY25/26 Financial Results Briefing

Morning, everyone. Thanks for joining us this morning for MIT Home Quarter and First Half Financial Year 2526 results briefing. MIT has released its results today after market closed. We have the matching team to present the key highlights of the results. Mr. Lili C.O., Co-game phone CFO, Mr. Peter Tan, Head of Investment, Mr. Rintam Head of Asset Management, the same short team here of marketing. Pop us to gain phone to bring us to the results highlights. Good morning, everyone. Thanks for joining us today. So for second quarter FY2526, year on year, our net property income decreased due to loss of income from the divestments of three industrial properties in Singapore, which we have completed in August. Our contributions from the North American portfolio from one new world was to your scholar.

This was partially offset by the higher contribution for acquisitions we did end of last year, as well as the competition of final fee that works in May 25. Boring costs due to repayment of borrowings with the divestment proceeds, lower interest on unhedged working rate loans and effects of weaker US dollar. This was offset by higher borrowing costs for the portfolio. Distribution declined by venture decrease due to higher borrowing costs from repurposing of matured interest rate swaps, as well as pre-termination of these at one of the joint venture properties in prior year. So overall, our distribution to unit holders decreased 5.3% to 19.7 million. And our distribution increased 5.6%, 3.18 cents. So in quite a year, we also distributed about 3.3 million of divestment gain from divestment of time call.

So if we exclude that, our DPU would have decreased 2.2% instead. We first have, most of the reasons are quite similar, so I'll skip that. So for quarter on quarter, coordinate property income decreased due to loss of income from the divestment of the three industrial properties in Singapore. So the full quarter impact of NLP summarization for the fill out works at one of the property in Singapore portfolio, higher operating expenses at North American and Singapore portfolio. This is a partial offset by the full quarter contribution from the final fill out works at Osaka data center. So on borrowing costs, it's lower mainly due to repayment offerings with the divestment proceeds and no interest on unhatched floating rate. Overall, our distribution to unit holders decreased 2.7% to 90.7% and DPU decreased for quarter 2.8% to 3.18 cents.

From capital management perspective, our total borrowings reduced to 3.1 billion, largely due to the repayment of loans with the divestment proceeds. Accordingly, our aggregate leverage ratio decreased to 37.3% and our interest rate, hedge ratio increased to close to 93%. With the lower leverage ratio, this provides us with ample debt headroom to capture any potential growth of our cities. On average borrowing costs for the quarter used slightly to 3%, largely due to repayment of higher cost debt with the divestment proceeds and lower interest rate on the unhatched floating rate loans. Having said that, we do have interest rate slots coming due every year. For this financial year as well as next financial year, we do have about 600 million of IRS due or coming due, which we expect to have impact on borrowing costs.

Even these interest rates were previously looking when interest rates were lower. So overall, the borrowing costs for this financial year, we expect to be around 3.1 to 3.2%. And for next financial year, the interest cost will be about 3.3 to 3.4%. That maturity profile remains now staggered, no more than 24% total debt maturing in any single year. And the average debt tenure of three years. On the FX front, as much as feasible, we try to draw local currency loans to provide natural hedge for our OCS investments. This helps to protect FX fluctuation on our NAB and DPU. So for example, about 50 to 52% of our portfolio are funded with new loans. So what I've told you to the US by AUM is about 47%.

Next financial borrowing our distributable income exposure to US dollars about 25 to 20%. This means that in terms of equity for every 5% depreciation in the dollar, impact our distributable income is only about 1.5%. So for the remaining of the foreign currency, we enter into FX forwards to hedge the income into SING dollar. So we have about 86% of our next 12 months distributable income is hedged or derived in SING dollar. Come to Lily to go to SING. Good morning, I will cover the operational performance. So if we can start off with the occupancy of the portfolio, I think that's something about our treatment. The portfolio basis, the occupancy rate has, I would say, remained relatively flatish.

So we are looking at 91.3%. If you look at the Singapore portfolio, pretty resilient, we have managed to keep the occupancy flat. For North American portfolio, we do see a bit of slightly marginally down to 7.8%. And that's largely because of the expiry of these at San Jose, which is something that we have spoke about the last quarter. On the Singapore side, something which I've missed out just now would be the progress of the Kalangwe property. I think that one we have managed to improve the committed occupancy to 64.4%. So that is about a one percentage point improvement from the last quarter, if you have reported. I think this quarter, we have also seen quite a bit of new leases every new one that we have actually executed.

To date, we have executed about 104,000 square feet of the space in North America. This is about 2.6%, if you look specifically at the North America actually. Of these 184,000 square feet, we have about 20% or 20% of these leases actually pertains to empty units, which were previously vacant. So we are able to fill up some of the consumers. The rest of it are basically just renewables. So it's not going to, it basically means that we are able to extend these periods. I think if you look in terms of some details for these renewals, weighted average revision comes out to be about 3%. I think if you look at the range of the revision, we are talking about from a low single of 2% to a double digit, like 10%.

And this renewal also for a relatively long period, so about five to 11 years. I think maybe I just also want to highlight that a lot of these leases, or most of these leases will be taking effect only in FY26, 27th, that means the next financial year. I mean, these are actually forward renewals that we have entered into. The lease commencement actually starts next financial year. So we will see the effect. I think the current financial numbers does not include the effects of these leases, not significant.

The rental revision in Singapore continues to be quite positive. I think we are looking at a weighted average of 6.2% on the average. Of course, if you look in terms of greater details, the general industrial buildings continue to see, encouraging rental revision at about 8%. We do have a little bit of a negative revision in the high tech building and business space. Specifically, that is more on the business park where we have one particular tenant. I would say not very sensible, but it's not your usual typically 1, 2000 type of space. So we have actually defended the occupancy by taking a lower rental rate. So that accounts for the negative rental revision that you see. I think then if you look at the lease expiry,

in terms of the will, we will see that there is a slight improvement in terms of the overall. Only last quarter, we reported a 4.5 years. So this quarter, we actually reported a 4.6 years. Of course, you also understand that every time you move one quarter, naturally this number will drop. But we have actually managed to improve it. And that is mainly because of one of the renewals that we, which was a offering renewal, which I've mentioned earlier on, that actually take effects towards the end of the financial year. So that has basically lengthened the will.

If you look in terms of the profile for FY2526, in total, we have about 4.6% of our total portfolio expiring. If we look specifically at the North American Data Center, that would be about 1.8%. And of course, I think we have spoke about this last quarter as well. We've been to the 1.8%. There is also 1.2% that is largely due to the Vacants You Need. The office basis that was given up by one of the Data Center attendance, A250 Williams. So I think whatever that is left in the remaining of the financial year, we are quite positive in terms of the renewal and backsealing. Okay, so for next financial year 2627, of course the large part of the expiry for the North American portfolio

continues to be the San Diego. So that is something that we are keeping an eye on as well. I think in terms of some of the investment divestment activities, we have completed our divestment, the Singapore divestment of the three properties. So that took place on 16 August. I think that is also why this quarter we see some defects of the last come from a divestment, through the financial numbers. With this, I think we will continue, we will still continue to look at our divestment for the portfolio, but I think the focus will be more on the North American side. I think that's something that we have always been looking at as well. So I think we probably will be looking at another five to 600 million of divestment for the portfolio.

In terms of investment activities, I think since our divestment, we have managed to bring our leverage ratio down. So that does give us some hate throws in terms of looking at acquisitions. So I think we are seeing quite a few transactions in the market, say in the Europe, and more recently, in fact, we'll see a little bit more on the Japan side. So Europe and Asia will continue to be our focus. And of course, the 50% stakes that he sponsored still holding it will continue to be something that we will want to look at. I think if you look at this portfolio specifically, it is a good portfolio, which can help to improve our quality of the quality of MIT's portfolio overall. And of course, we also know that that is the one where the first-guilless facilities forms a large part of it. So it will be an interesting pipeline for us.

So with this, I think we hoped to be able to recycle the seats that we have obtained from the divestment. And of course, with further divestment that can come through, that will also help to give us more gunpowder in terms of the acquisitions. So looking ahead, I think our priorities will remain very much centered on improving the occupancy at both the Singapore and the North American side. We have been getting some traction in recent times, so we are quite encouraged by the continue doing this. We are still in talks with a few potential renewals or new leases in the North American side. So that is something that we hope we can continue to provide some good news next quarter. All right. I think in terms of the interest rate side,

as Kim Phong has said, we do have some re-pricing replacement that needs to be managed. So we need to be very nimble and we can just adjust the hedge ratio and keep a lookout for any opportunities.

So I think as we move along, there may be some transitional insects on our results. Some of these, as I said, some of these renewals that we are looking at are actually forward renewals. So we are actually paving the way of going forward. So that's something that I hope you guys will understand. I think with this, that will end our presentation. I'll pass the floor back to Miriam. We request and this would like to ask question to raise your hand. And Kari, we need to ask our people. Will you like to ask the first question? Thanks, Milad. Thanks, Lily and Kim. This is Kari from JP Mongan. Just wanted to ask a bit more on the back-filling of the US data centers. Could you share a little bit on, how do you see progress? How should we expect backfilling

for 250 Williams and the AT&T next year?

I think for 250 Williams, we have, as you probably noticed, that for the past few quarters, we have been able to lease out some of the space. Although, as I said, these are not very big, significant type of areas that we can go on, that we can build up immediately. But we have been making some progress and we're actually quite encouraged by it. There have been still quite a number of inquiries. We are still seeing quite a few inquiries, some people coming to view, et cetera. So I think it seems like while the office space continues to still be quite weak in terms of demand, there seems to be some slight recovery that is coming back. So we hope that we are able to continue this traction. In terms of the AT&T,

we need to talk to them and see actually why it's up there. Because if you remember, for AT&T, there is further options for them to extend another five months. So that is something that we'll get some clarity from them. And of course, the efforts for us to release the building, repurpose the building or even to do a divestment for the building continues to be something on the card that we use. Yeah, I hope that answered your question. Yeah, so is there, I mean, to give a sense, is there any details on whether we should expect that five month extension? We have no clarity at this point, actually. Okay, good. Could I ask about the FX hedging? What is the hedge rate for US dollar forex

into the second half of the year? And how should we see the FX hedging for next year? The income hedges, we have hedged about 53% of our USD income stream for the next 12 months. The average rate is about 1.28, 1.29. Hopefully, it's for the next 12 months. Okay, great, thanks. And maybe a final question from me, any thoughts? Could you share a little bit more on the acquisitions, understand that you're looking at both the sponsors, 50% and also Europe and Asia, maybe a bit more details in terms of cap rates and how you are seeing any preference? I think now with the current interest rate environment where the rate seems to be easing off, it is something, it is a development which will,

I guess, help in terms of the acquisition cases, at least in terms of the new spread that start to make sense or make better sense for some of the projects that we are looking. So I think in more recent time, we have been seeing transactions that is coming out from the Europe, from the Japan, and I think even from the US for that matter. I think for us, it is very, we do recognise that it is something that we will want to keep on pursuing in terms of the acquisition, because at the end of the day, now that we have divested a bit of the relatively significant portfolio from the Singapore side, it is something that we will need to be able to replace, at least it's not part of the income that has been lost. So that is something that the team will have to continue to work on. So I think if you look in terms of the numbers,

or that I don't think numbers very, very far out from what you're seeing in market. So Japan, you typically will still be looking at around 4%. Sometimes it will be a bit sub-fold. But I think the interest rates that I think that is still some, I'll say that the increase doesn't seem to be coming in so strongly. So I think in terms of the yield spread, it's still quite excellent. So I think we probably can be looking at the yield spread of around 1.5 to 2% type.

And you'll probably see a similar type of yield spread across the other regions as well. So basically when your rate is there, your cost of funds tends to follow it as well. And in terms of timing, how should we think about timing? Is there time or target for acquisitions?

In terms of what, sorry? Sorry, timing of acquisitions?

Well, I guess the thing with external acquisition is you either get it or you don't get it. So we have evaluated, we have tried, we have done some submissions, et cetera. So I think we hope that we're able to get something quite soon as well. But as I say, this is something that we will have to continuously be in the works. Of course, what would be easier within which will be the 50% stake that we can look at. So I think that is something that we are always taking continuous discussion with the sponsor. If they are looking to sell, I think it's something that we all want to look at this year or so. Okay, that's great. That's all I have. Thank you. Can we have a tension for human to ask the next question? Hi, morning. Can I ask about the next five to 600 million of divestment? Is that something that we can expect over the next six

to 12 months? And also is this sufficient or fun for your acquisition or are you also open to equity fundraising? Okay, let's address the five to 600. I think that is generally the part of the portfolio which we think that we will want to do a recycling.

As for the timing in terms of five to 600, it is not small. So I think if you look at the US trending so far, those properties that we have been selling are generally on individual basis relatively small. But I think we do expect that perhaps we hope that for this financial year, we can do about one to 200. But to fully divest the entire five to 600, I think you will probably take some time. Shop months might be a bit too short for us. We will probably take maybe about one or two years or so. Funding by commission. Sorry, so whether we will consider EFR, of course it's never a case of I must do a divestment before I do an acquisition. It very much depends on the attributes of the projects

and if the market is conducive, we would want to do a bit of equity fundraising. That can basically help us in terms of managing our assets. So I think it was also depend on the sizing of the, the size of this acquisition targets. Okay, got it. Second question is on debt hedging. Can you explain why is it at 90% currently and what's a comfortable level for debt hedging? Yes, you are right. We have pared down bonds with the divestment proceeds. So what we have done is of course, we pared down the unhedged portion. So that brings our interest rate hedge ratio to close to 93%. But we do have a IRS coming due with ending financial year.

So by March, we'll see this closer to about 80% back to the normal level. And the project is to maintain it at 80%? My year will be 80%, but of course, I mean, but over the next few years, we'll see the interest rate environment and recalibrate the hedge ratio. Okay, thank you.

Can we have Derek from Morgan Stanley to ask the next question? Wait, I think you're on the field. Hi, morning, can you hear me now? I can hear you. All right, perfect. I just want to ask on the upcoming release expiry in FY27 for US. How much is US account for FY27? And of that, how much is the AT&T lease?

Okay, so you're talking about FY2627, right? Yes. In total, if you look at the total portfolio is 19.2%. Specifically for North America, that would be about 5.5%. Okay, of course, the majority would be for San Diego. I think San Diego generally contributes a lot, 2.4%. 2.4%. Sorry, 2.5%. Sorry, 2.4%. 2.5%. 2.5%, okay, so 2.5%, that one is more, that one visibility is much lower, but the remaining 3% hedge points, that shouldn't be an issue. I think it's something that we are continuously looking at. That's why I think if you look at some of the leases that we have signed this quarter or to date, some of these are actually pertaining to the 2627. So we would be able to,

I would say the significant lease is actually more on the San Diego one. Understood. The ones that you signed, which also pertains to F-127, those came at reversion of 3%, right? We've tried to reach 3%, yes. I think some of the range, which is a wider range, I'm still talking about the low 2%, 3% or 10%, so it's about 2 to 10. 2 to 10, okay. And just on, I guess San Jose, is there any updates on your power studies over there? The power study has been done. We understand that the current facilities can take up to 7 megawatts, although I think the previous, previously it was running at about 3 megawatts. If we want to bring the facilities up to 20 megawatts, it is possible, but I think it will,

means that you need to put in the power supply, the power supplier will need to put in additional keybacks to bring, I think they need to build a new substation and put a new cable in through. So that will be cause of getting the 20 megawatts. And of course, that also means that you will take some time. So are you angling towards just going ahead with the seven megawatts without having to build a power station? And yeah, how soon would you expect a lease-up of that asset? Yeah, so I think with this, what we have actually done is we wanted to, with the power study in Japan, we wanted to actually sell the properties. I think the response is not as expected as what we expected. We do note that there is quite a number of requirements. Those that come to look at it, the requirements tends to be more for the immediate power. So I think some of them are not prepared to wait

three, four years for the additional powers to come in. So I think this is something that we will have to continue to engage the prospect. Okay, so there's no timing per se because you can guide forward at this point in time? I think we are currently in the progress of actually trying to reach out to the prospect and maybe also to expand the marketing program. Okay, understood. And are there any other power studies for other assets? So it's just San Jose for now.

We have done one for Hawthorne.

And I would say that it is quite positive. So we are able to bring in much higher power as compared to San Jose. So I think that Hawthorne is currently still least, least low and probably next financial year. So that's something that we are also talking about talking to a tenant about the really, sorry, the renewal. This is the FY26, this is an FY27. This is an FY26, 27, the next financial year. How much does it account for that 5.5% for US, the Hawthorne one? I think it's about 1.2%. 1.2%, okay, okay. So you're in the presence of renewal and if that doesn't come through, you would use the power studies and increase the IT capacity for the fee. Okay, got it.

Okay, thank you. That's all I have. Derek from DBS, to ask the next question. Hey, good morning, can you hear me? Can you hear me? Hey, hi, hi, Lily and Tim. Just a few questions for Mia. First one is on your rent reversion that you achieved for America, right? I'm just curious whether the leases were likely renewal or backfilling. I just wanna get a sense whether there's possible improvements in occupancy.

Those, the rental reversion we talk about is only for the reversion. So if I'm talking about backfilling as in us trying to fill up additional empty spaces, I think just now I mentioned out of the 184,000 square feet that we have signed to date, about 23% are actually I would say backfilling of empty units. So yes, you'll see some contributions towards the occupancy. By me, we also have the exceptions. Say we will see the emergency situation in the building. Can it from level 39? Okay, sounds good, sounds good. Okay, then my next question is on your comments on a position, right? You're mentioning that you are scanning, you're potentially divesting, but if you look at, let's say opportunities that you're keen to execute, right? How will you rank? The 50% stake will be ranked highest in all you?

This is a difficult question.

They're like easier that I know, but yeah. What's your thoughts on that? I ask people to address, okay? Yeah, okay. I mean, like what Lily mentioned earlier, the 50% stake, those are very good properties and a good portfolio add on to improve our quality of our portfolio. But we also look, we are still seeing a lot of other, you know, decent opportunity that is coming on our table. So we will have to assess it, you know, but it kind of at least give us some leeway, you know, to choose, you know, which is the assets or which are the portfolio that we wanted to add on to MIT. It's not a very easy decision, I guess. You know, to add on, you know, it's like fish and your best pork. But we have to choose. I guess if we are able to get another draw free, it will also help in terms of the diversifications

for the portfolio, right? Not understanding that the acquisition of the 50% stake will also increase our exposure to the hyperscaler slot. So I think that is something we have to evaluate when the transactions come. Okay, okay. But you're thinking, you're also looking for Asia and Europe, anything that you believe is very, that will rank quite soon. First, I'm just thinking about it from a new spread, right? I mean, Europe and Asia will be higher. I think there is quite a number of transactions that potentially can be coming out. So that'll be something that we're quite keen to pursue. So, and you're right, I think in terms of the new spread, maybe the initial might be similar, but I think the difference also lies in terms of the built-in escalation, right? So I think typically if you look at Europe, you'll be around the two to 3%,

which is quite similar to, I think Japan generally, we are seeing some between the one to 2%. So that's something that we'll have to take in consideration as well. Of course, transactions varies from one another. So it really depends on what is the attributes. Okay, no problem, that's all from me. Thanks, Gula, for that. Yeah, thanks. We have Rachel from Macquarie to ask the next question. Hello, hi, good morning, Nili and team. Thanks for the call. Maybe my first question is on the interest cost. I think at the start of the year, there was like 597 of IRS that's due this year. And then now there's 600 due this year and next year. Can you give us a breakdown in terms of how much has already lapsed and has been included in the interest cost? And then how much are we expecting the rest of this year? How much are we expecting next year?

Thanks, Rachel. Okay, so, okay, it's a bit difficult to,

because you know, we do like some of the earlier renewal pension of the hedges. So early this year, we have about close to 600 million IRS, right, coming due this financial year. But of course, all these were progressively due over this initial year. But let me say that, you know, whatever interest rate, this likely we'll try to lock in a bit. So today we have a lock in about, maybe about 200 million IRS. So we still have about 400 million to go. But we said that, like I mentioned earlier, our hedge ratio is quite high. So this 400 million resulting rate, and then the hedge ratio will be about 80%. Net per annum impact, if you look at it, for annum impact, all these replacement hedges for IRS is due this financial year. Numb is about nine to 11 million.

Most of these are in US dollar. On short, so we have a bit of tax yield then. So net of tax yield may be about 78 million. So you see the full year impact probably next year. This year may be half year impact. Okay, so, yeah, okay. So meaning the net impact, 78 million this year is half of that, the impact. And then next year will flow through. Yeah. Okay, and then the remaining 400 hedges that is expiring this year, you will drop it off. But next year is the Numbal IRS. Yeah, so also like I mentioned earlier, we have another 600 million IRS coming due next year. Similar, you will see impact from these replacement hedges. But having said that, the average interest rate for those IRS coming due next year will be kind of slightly higher than this year's IRS deal.

So you'll see some impact, but not as much as this year. Okay, got it. So, okay, sorry, the next year one is also 600. There's 600 this year, next year 600, okay. Roughly. Oh, okay, okay, okay, okay, okay, okay. Then my next question is in terms of the San Jose, if I were to follow up, now that the tenant, I think you mentioned that the tenant want a higher power, right? But you're still talking to the tenant. So any intention of you putting in K-PACs now that you're talking to a tenant, or you will still walk away from putting in additional K-PACs? And are you able to sell this assets? Yeah, just to clarify, were you referring to San Jose, or the one that we mentioned about,

we're talking to accessing tenant, which is Hawthorne? No, the San Jose one. So San Jose, the tenant have vacated earlier already, but we did complete the power study. So we are now just exploring whether we potential prospects to divest the property essentially.

Oh, okay, I see. So, okay, right, to divest the property completely, right? With potential tenants, okay, got it, yep. And then maybe just squeezing one. I remember in terms of acquisitions last quarter, you were actually more positive on like EU in terms of acquisition, but some of the rather this quarter seems the narratives have changed a little bit. Can I just understand, has something changed along the way? No, I'm still keen on Europe. I think at the end of the day, we do recognize that you'll be good to have Europe, which is one of the largest data center market globally. So Europe is definitely something that's on our radar. Similarly for Asia as well. I think in more recent times, I would say in more recent times we're seeing a little bit more transaction coming out from Japan.

I think Europe, there is a few. Oh no, our radar is still on this tree, on Europe, Asia, and potentially the 50%. Okay, got it, yeah. And do you still intend to acquire bigger data centers or in terms of the size? I think in terms of the size, of course we have done a range of transactions from 100 plus million, 500 million to about say one plus billion. So the range remains similar. Of course, considering where we are, it will be very hard for us to do a one gigawatt or 100 megawatt type of data center, but probably a billion each or so, or from 100 plus million to a billion each remains on our radar. Okay, got it. All right, thank you so much. That's all for me.

We have a Yutiel from CISA to ask the next question. Hi, I'm Lili and Tim. Yeah, I just have one question focusing on the 50% balance from the sponsor. Can you share more details about this portfolio in terms of performance, right? So if you look at your US data center portfolio has been trending down over the past few years, was does the 50% mirrored similar trends? And also secondly, what is the NPI margin as well? Do you see the similar NPI margin decompression trend that you have with your existing portfolio? And how much of the 50% balance, right, has exposure to hyperscaler and also like megawatt capacity, anything that you can share. And lastly, does the valuation of the 50% portfolio, right, is the caveat similar to your existing caveat

of your US data center portfolio? Okay, for the 50% stake, that portfolio, a large part of it, I would say about 60% of it is actually the hyperscaler that you see here. So the balance of it, most of them, as a co-lo providers, right? I think the issue that we are seeing with some of our current portfolio is more of the facilities that were previously occupied by the enterprise user. So I think I mentioned previously before that when it comes to enterprise user, they are take in terms of the location, they are take in terms of how they allocate the space and how they designed the data centers, fit that, et cetera, may not be as efficient as what a data center operator would do. So that kind of makes the re-leading

a little bit more difficult, right? But you don't have that in the 50% stake portfolio.

So the margins will be better as well, and the occupancy will be arguably higher. Okay, I think from a margin perspective, because they do have treatment at lizards and cross-lizards and so on, but ultimately we will probably be looking at very similar cap rate, currently about 5.5 to 6% cap rate. And I think in terms of, sorry, your second question is the occupancy. So for this 50% portfolio, the occupancies are generally pretty strong. So we have always seen it as more than 90% currently and going forward. Okay, so it did not really come down to the 80s mid 80s as seen in our portfolio. No, not yet. Yeah, I think not yet.

Or is it you don't expect it to come down? No, we think that it's probably quite pretty resilient. You know that you will be floating up more. Yeah, and this actually lock in for quite long term as well. I think maybe just for this portfolio, if you recall in one of the quarters it says that we have a tenant who has vacated one of the buildings in Tempe, is that. So I think that while we are in the progress of backfilling it, we think that there shouldn't be any problem. Okay, okay. Okay, yeah, any idea on like power capacity Yeah, so I mean for the three hyperscale data centers that we have in Northern Virginia, you know those days, it will be about 60 to 70 megawatt

and then the rest would be spread. You know, each asset is probably about three to four average. So total, you know, but those three to four are mainly our power share assets. So, but in terms of IT load, you're talking about including the Northern Virginia ones, probably about 90 to 100 megawatt. Okay, so total would be, you're talking about the 50% that is from the sponsor, right? Yeah, yeah, correct, correct. But the total is on the entire hundred of all the buildings, it's not proportionate. Yeah, yeah, yeah, okay, okay, okay. Okay, I think that's all from me. Thank you. So maybe just to add, so for the MRODCT portfolio, right, there's two parts, the power trail and the the hyperscale data center. So the three feet hyperscale data centers that are actually located in Northern Virginia, very tight market at the moment

for the trail data centers, right? Actually the wheels are fairly long. You're looking at maybe around seven to nine years. So for this particular portfolio, right, actually you see trending maybe both 95, 100% is about 94. And then, so sorry, one more question. So if you were to fund it using US data, what's the current data you can get in market today? Right, for USD today, maybe about all in US dollar funding maybe about 4.4, 4.6%. Okay, okay, thanks. I'm Jonathan from New Orleans. You've answered the next question. Yeah, good morning, Lily and management team. My first question relates to divestment. You mentioned you were focused on North America

and the size you indicated is quite large, 500 to 600 million. Can I ask if you are like looking at like divesting a basket of data center in North America, you know that will help you achieve that sizable goal. Are you looking at selling a few of them in a portfolio? Is that what you're looking at? Second question relates to your guidance of cost of debt going higher to 3.3 to 3.4% for FY27. What's your assumption in terms of rate part going forward to get that 3.3 to 3.4? And does that include or doesn't include the JV, that interest rate that you have mentioned? Thank you. Okay, I think in terms of the divestment portfolio,

I think the approach is something that is not fixed. It doesn't mean that I will just took every one of them because the moment you put every one of them, it becomes pretty sensible. So it may not be that easy to sell. And I think because the portfolio is actually quite spread out in terms of the location, et cetera. So depending on the individual local situation, sometimes it's better for us to just sell it as an asset by asset. Or we also may look at bundling up some of the data as a portfolio to sell. So the approach that we are thinking is not something that is fixed that I'll just package everything and go. So given the different attributes and the different focus situation, demand and supply situation in the market, we will want to take the approach that can give us the best value of. Okay, so not in terms of the market,

okay, so not cut in stone.

Yeah, maybe to add on, we do have, okay, I won't say it's cut in stone, but we do have really identified how do we want to divest all those assets. Some of them are single asset transactions, some of them are on a portfolio basis. So you see a mix back. It won't be a, it won't be a like say, or yourself 10 properties worth 600 million or so. Okay, thank you for the color. Okay, so on the interest rate for FY2627,

the guidance 3.3 to 3.4%. Basically, we have assumed that the whole 600 million IRS coming due next year will be refinanced with let's say a five year USD to 3.4, 3.5%. So as you're aware, cut the base rate. So now it's around 3.7%, 3.75 to 4% range. So if,

various banks have various expectation or forecast for next year, for next year. So if the 14 rate come down to around 3%, we may be able to so-called adjust that H ratio and accordingly price this at a lower level. Okay, okay. That's my question. And yes, that's, so just to clarify all our capital management position include our JV. So you do factor in rate cuts in that forecast. Okay understood, thank you. Great, no, we have not factor in so-called the rate card. We have assumed this five year pricing, a five year interest rate for today, there are floating rate. Okay, that is the rate today that you get. For five year interest rate as well.

Okay, thank you, thank you. DJ to the last question. Yeah, morning Lilly and team. Couple of questions from me. Firstly, in terms of the operating cost, I think operating costs for this quadriceps have gone up a bit because of maintenance and utilities. Are there any one offs and moving forward, what should we expect in terms of margins? In this style of numbers for this quarter, we do have some cleaning contracts which was renewed. So that one, we do see some inflationary increase in terms of the contracts price. So that kind of explain it. But I think we basically, I would say trudge out our contract. So you don't renew everyone at one goal. So the effect will be more muted that way. But I think in terms of the margin or the MPI margin, we should expect it to be somewhere similar

to what we have this quarter. Okay, got it. My second question is in terms of potential portfolio, I mean, possibly if you add on US assets and Europe assets, I think over time your Singapore exposure is going to go less and less below 40% or closer to the mid 30s, et cetera. Are you comfortable with that because I don't see any pipeline also in Singapore? I think we would love to be able to add on more to Singapore our world while we are doing a lot of acquisitions in terms of the data center blowers. Singapore remains our home ground and that will still be one of the focus. The only thing is at this point, acquisitions opportunities are actually quite limited. So I think if you look at it in terms of say, the data center in Singapore, the market is very tight. So we would love to be able to add something on, but it is also very limited in the sense

that the government has been, is putting on quite a bit of control in terms of the power acquisition, sorry, the power allocation, right? So I think in order for us to apply for all these power allocation, there are certain criteria that needs to met and some of these actually has to be, it's more, it's something which an operator will be able to achieve. Like, you need to have a PUE of at least 1.3 times, et cetera. So it is not the opportunities for us to do the acquisition in Singapore is not easy. And of course, if you look at other industrial properties that we see in Singapore, that continues to be something that we will be keen to look at and we will continue to look at. The only issue is when you look at the Singapore industrial property, a lot of them comes with the shortland tenure. So that proved to be a bit, something that can be,

well, I think that makes our decision much more harder because the moment you buy say, 25 years underlying lease, in five years time you start to see the valuation of the property dropping simply because of the shortening land tenure. So that is something that we are also quite careful about. Of course, what we can do in terms of the Singapore properties is that we continue to look out for opportunities where we can do say, new to suits projects. So getting that allocations from the governments to gathering with a tenant that they like. Or we can also look at redeveloping the existing properties that we have on hand. I mean, if someone comes along happy for us to take us off the space, if we were to redevelop, that can actually be a potential trigger for us to go to the government and see if they are able to extend the underlying land lease. So these are some of the things which we hope

that we can execute and we will continue to scan the market for such opportunities. Got it. Just one last question if I can. Can you give some color in terms of business park demand and high tech demand in the Singapore market at this point of time, which still seems a bit soft looking at the diversion in your portfolio. Yeah, I think high tech space and business park space are definitely still a wiggling at this point of time. And we have been seeing these for the past few quarters. Generally, I think when we look at the demand that is coming through there continues to be demand. So it's not a case of totally nobody even wants to look at it. That continues to be demand, except that the demands are not for the biggest space. So this tends to be the smaller area. So if you take, for example, our development at Kalangwe, we started off and we were redegembered. We started off hoping that we are able to lease outflow by flop, which is relatively huge floor plate, right? But the demand aren't really there.

So we actually start to cut them out into smaller units. And that is where we start to see a bit more traction. So I think if you track our progression so far, in the last quarter, we managed to improve the committed occupancy by three percentage point. This quarter, one percentage point. So I think, I would say the transactions continues to be there. We are still continue to be able to cross some of these inquiries into contract. So this would be more for the smaller space. And for business park, I think we also know that there is quite a lot of competition in the facility. Right now, we have had three business parks. And we divested two. So I'm just left with the one in Changi Business Park. But if you look at Changi Business Park, specifically for our building, while the business park demand may not be so good, we have been able to hold up to the occupancy rate for Changi Business Park pretty well. Right now, I think you are looking at about 83, 85% occupancy.

If you look at some of the buildings in the vicinity, similar buildings in the vicinity, occupancy is definitely not there. So I think that is also the reason why we want to make sure that we are able to defend that. And I think that was also the point that I made where we decided that for a tenant, where you have a slightly bigger size unit, okay, we are prepared to go down a bit just to defend the occupancy. I think the rest of the renewals that possibly have been coming up for the Changi Business Park smaller floor unit. So that is something that we think we still have to hold up. Thank you, thank you. Very glad that's all I have. Maybe we can have a, Donald, to ask the last question. And this session. Donald?

You're third. Welcome, thank you. Donald, are you there? Hello, can you hear me? Yeah, can you hear me? Oh, yes. Ah, okay, just a couple of quick clarifications. First is on the interest rate question. So if US rates, swap rates come down by around 50 basis points, but you mentioned about 3%, yeah, you can, are you able to get some savings? Would that mean that your WACD is likely to come down if US rates come off by 50 basis points in FY27? Yeah, so for next page, I think, I want to clarify that, you know, when fat rates is on the, sort of holding basis. Sure. When we look at the interest rates,

such replacement, we look at the long term rates, the five year long term rates, which is today maybe 3.5%, right? So when the cut increase doesn't mean that your five year rate will be lower. Sure. So, So let me put it another way. At current rates, you're expecting your interest cost, all interest cost to go up in FY27. By how much must rates come down for you to see your all interest cost come down? Yeah. Let's put it the other way around. If let's say, you know, this 600 million now, I assume 3.5%, right? But if come next year, if the floating rate for US dollar is 3%, we had the loans, so I'd eat them for them, 50 bits on that 600 million. So you broke up with that, so if floating rate go down by two to 3%,

you will see a neutral level. Is that what to take away from that? You will still see some impact because you know, all the interest rates were lucky when it was quite low, right? So average may be 2.3%. Who uses the CDT type by you have a bit of savings? Okay, okay. Got it. Okay, that's fine. Okay, understand. And then the second question on the MRO DCT portfolio, any indication of what valuation and the ticket size at this point? About a billion thing. A billion thing for the 50% stake, is it? Right. Okay, and is there any under renting in the colo leases or hyperscale leases? Under renting, I wouldn't say is under rented. Okay, so pretty much at market. Yeah, that's correct.

Okay, that's fine. I think that's all from me. Yeah, that's all from me. Thank you. Thank you. Thank you. Thank you. If you have any questions, please do reach out to us. Thank you.