4Q & Full Year FY25/26 Financial Results Briefing

Good morning everyone. Thank you for joining us for MIT full year FY25-26 financial results briefing. I'll bring you through the financial performance and update on thereafter Lily will go through portfolio update and give you some colour on MIT's outlook.

So for full year, during the year we digested three properties in Singapore. The lower NPI is largely due to absence of income from these three properties. There is also lower contribution for non-renewal of leases in the North American portfolio and weaker US dollar against same dollar. These were actually offset by higher contribution from Japan portfolio, mainly full year contribution from Tokyo property which we acquired in November 2024 and completion of five works at Osaka data center which was completed in May 2025. As well as renewals and new leases from Singapore portfolio. Boring costs mainly due to repayment of borrowings with the divestment proceeds, lower interest on unhatched floating rate loans and effects of weaker US dollar against same dollar. These were partially offset by higher borrowing costs in relation to the Japan portfolio. Hence, decline by joint venture decreased due to higher borrowing costs from the re-pricing of matured interest rate swaps which were previously

looking when interest rates were lower. On a full year basis, MIT DPU for FY2526 is at $0.71 which is 6.3% lower than prior financial year. However, if we exclude the divestment gain that we have distributed in FY2425, our DPU would have been lower by 3.2% in-state. So on for quarter and quarter, our net property income decreased due to non-renewal of leases at North American portfolio, higher property maintenance and property taxes, partially offset by full-quarter in-power renewals and new leases from Singapore portfolio. Boring costs decreased due to temporary repayment of borrowings with the proceeds from the new perpetual securities that we issued in March, ahead of redemption of the existing perpetual securities. Next is distribution declared by joint venture decreased due to higher borrowing costs from the re-pricing of matured interest rate swaps.

Accordingly, DPU quarter of quarter decreased slightly 2.5% to 3.09 cents.

Our NEV per unit is lower by about 4.7% to $1.63 as compared to earlier, actually due to revaluation loss, weaker US dollar and lower market-to-market underbodies. As at 31st March 2026, total valuation of the 136 properties in MIT's portfolio stands at 8.2 billion, a decrease of about 330 million as compared to 9 billion as at 31st March 2025. Including the 535 million properties divested and lower translated asset value of 234 million from the weaker US dollar and Japanese yen, our portfolio valuation decreased by 58.5 million year on year. Within our North American portfolio, we do have some properties that awaken our with impending non-re new rules. For some of these properties, the value has adopted the sales comparison approach, hence the lower valuation. These were partly mitigated by the completion of the final

phase of the fitting outworks at the Osaka data center and the improved operational performance of the Singapore portfolio. During the quarter, we successfully issued 300 million of perpetual at 3.25%, a hit of the redemption of the existing PUB in May 2026. In the interim, we have pat down debt with the PUB proceeds and accordingly leverage is lower at 34%. While this is expected to increase to around 37.5% when we draw the 300 million debt to redeem the existing PUB in May, we still have ample debt hit room for growth. With the 300 million debt, the hash ratio is also expected to reduce to around 80% level. Average borrowing costs increased slightly to 3.2% as compared to prior quarter, mainly due to higher interest on expiring interest rate swaps. For previously locking, my interest rates were much lower. There's about 600 million of IRS coming due in the financial year 2627. These were previously

locked in when interest rates were lower. Assuming if we replace this maturing IRS with a new five year rate today, maybe say about 3.6, 3.7%. The borrowing costs are expected to increase to about 3.4 to 3.5% in FY2627. As we pursue further divestments and we use the divestment proceeds to pat down loans in the interim, we will be able to reduce the impact of these expiring hedges on borrowing costs. Of course, we will continue to monitor the market and be nimble when entering into replacement hedges, say, you know, 20, 30 million each crunch when opportunity arises, i.e., when any dip in interest rates. On our debt maturity profile, they remain well staggered with average debt duration of about 3.4 years. We have sufficient committed credit facilities to refile loans in FY2627. On effects front, as much as feasible, low local currency loans to provide for natural hedge, this helps to mitigate impact on

tax fluctuation on our NAV and the EU. So, for example, about 50 to 52% of our US portfolio is funded with US dollar loans. While our exposure to the US by AUM is around 47%, net of the onshore US dollar borrowings, our DI exposure is reduced to around 80%, 20%. So, just to give a sense, for every 5% depreciation, US dollar, the impact of the EU is not 5% but it's only around 1 to 1.5%. Hi, good morning, everyone. I will bring you through the operating performance for the portfolio. Things to start off with, that would be the occupancy. If you look on the overall basis, the overall portfolio occupancy has declined very marginally from 91.4% to 91.2% as compared to last quarter. As you can see, the Singapore and

Japan portfolio remains the stable base. And if we focus a bit on the Singapore portfolio at this point, the Singapore portfolio occupancy has actually improved by about 0.4% across both the high tech and the business park segment, as well as the general industrial segment. These two segments continue to see positive rental revisions. I think on the weighted average basis, you're looking at about 6.2%. Between the two segments, we are seeing both rental revisions 5 to 6%. Update on the Kalangwe occupancy. Committed occupancy at this point is about 65.5%. If you compare to last quarter, it has improved marginally very slightly. But having said that, we do continue to have a few discussion that is ongoing. So, we do hope that we are able to bring

the occupancy up further by next financial year, maybe somewhere around 75%. Looking at North American data center portfolio, the average occupancy went down from 87.5% last quarter to 86.1%. I think this is mainly arising from the full effect of the expiry at 2005 East Tech, which has the lease has actually expired in December 2025, as well as tenant in 250 Williams, who has renewed its data center space, but returned its office space with effect from February 2026. I think this is something that we have flack out earlier. In terms of the lease renewal, if you look at the portfolio view, portfolio will decline marginally by about 0.1 year from last quarter. That's largely due to the natural progressions of time for Singapore and Japan portfolio. But if you look at the North

American portfolio, there is actually an increase with the commencement of a long-term lease at Morrisville. So, I think that is something that the team has put in place sometimes ago. So, now that the lease has commenced, it actually starts to contribute in terms of towards the wheel. On a year-on-year basis, our portfolio wheel has maintained across all the drawers, including the North American with these efforts on getting some of these renewals done. So, our focus during the year was very much to address the really challenges, about 400,000 square feet of leases were executed in financial year 2526. That is about 5.6% of MIT's North American portfolio NLE. So, we have also signed this for a long lease period ranging from 5 years to 15 years. So, about 34.3% of the leases executed were actually new leases, while the balance 66% were renewals, which includes also

forward renewals at a weighted average rental revision rate of about 3%. If we look at the lease expiry profile, for FY26-27, 17% of the portfolio GRI will be expiring. So, specifically for North American data center, more than half of the leases are set to expire after FY30-31, which is in more than five years' time. Within the portfolio, or the North American portfolio, 5.4% of the portfolio is expected to expire in FY26-27. We have highlighted in the past quarters as well that there are confirmed non-renewals and that stands around 4.7%. As we all know, these are mainly from three properties. We are actively working on the non-renewals and in fact, I'm quite happy to share that we are in advanced negotiation and

quite close to signing a back-seal lease. Although I will not be able to provide any information at this point, I think you will understand the sensitivity behind at this point. For the remaining leases, due in FY26-27, we don't think that will be an issue. Now, beyond what has already been highlighted, there are no new confirmed non-renewals. If you look at the expiry profile, you also note that after FY26-27, the expiry profile is actually more manageable. We are talking about around the 2-3% reach. So, if you look ahead at the next financial year or FY27-28, we think that the lease of non-renewals is not high.

We have generally been very focused in managing the expirys. Over the past two years, we have proactively executed forward renewals, which actually helps to spread out the expiry. For example, you have the two leases at Richmond and Houston, which are both enterprise users. So, in addition, we have also been signing the leases for new space. So, if you look at the vacant or those properties with upcoming non-renewals, divestment backfilling or even relating to industrial users would be the possible options that we are exploring. So, we are seeing greater interest from prospects for certain properties in the key data center market or those with potential to increase power capacity. As I mentioned earlier, we are close to signing one of the backfills, so we do hope that we can bring the good news and bring it across the line and bring the good news soon. In terms of the divestment targets, we continue to look at about 500 to 600 million.

So, this would largely be the portfolios with vacancies or upcoming non-renewals. We have pushed out quite a few divestment exercises and I would say that we are starting to make some meaningful progress. As we pursue this divestment, we are also actively monitoring the market for suitable acquisitions opportunities. So, I think if you look at some of the potential deals in the market that we are seeing, you do have some that is in the Asia, say Japan, and of course, Europe continue to be an area that we would like to expand in. So, our goal very much is to then rebalance the portfolio, achieving the greater geographic diversification and enhancing the overall portfolio quality to ensure that the portfolio is future proof. I think what you see here is some of the activities that we have done in FY2526, where we have actually completed about 400 to 500 million of divestment and these are done at a premium to book value.

So, the proactive portfolio rebalancing will continue to be a key strategy that we are pursuing right now. So, we hope that with this, we will be able to provide a better portfolio to the unit.

Thank you. Thanks, Lily and Dean Fong. Now, we will take questions from the analysts. Please raise your hand if you would like to ask them. We kindly request each analyst to these three questions. We have Mooji.

Hi, Lily and team. Yeah, looks like some exciting developments in terms of backfilling. Just wondering where you can disclose which property is that related to and whether there are any updates on potential redevelopment. Second question I have is in terms of FX rates, what's the head rate that you have for this coming financial year? Thanks. Okay, I'll take Steve, the first question. I think at this point, I would thought I don't think I'll be able to release a lot of information on this. But I think that is something that the team has always been working on. So, we do really hope that we are able to share the news shortly. At this point, I think there is some sensitivity, so we'd rather keep it as it is right now. Maybe I have a second question. In terms of hedging forward, there is a cost in terms of hedging because given the interest differential between US dollar

and $10 rates, so currently it's quite high, 2 to 2.5% forward one year. For the next 12 months, we have had close to 60% of our income, that about 1.26 FX rate. And the rest you progressively hedge up, is it? Yes. So, that's the cost of the year. Yeah, sorry, that's my first question. Any updates on redevelopment? Yeah, thanks.

Sorry again? Yeah, any updates on potential redevelopment? It's not probably you undertaken power studies, so I don't know what it is. Thanks. Yeah. Nothing that we can say at this point, but I think you will also understand that redevelopment is something that we, is one of the options that we will look at. Although I think the focus perhaps is a little bit more on the divestments and the re-lecting of the properties.

Okay, look forward to some positive news soon. We have Derek from DBS to ask the next question.

Hi, good morning Lily and Tim. Can you hear me? Yes. Okay, can you hear me? Okay. Just a few questions. Just wondering, Lily, can you give us an update on your plans for San Diego and Houghton, given that the leases are coming off, right? So, I understand Houghton has a significant power location, right? So, any positives around these two assets, what your plan leasing, selling, or what we can think about in terms of your next move? Maybe that's my first question. Then maybe my second one, if I can, if we look at Singapore portfolio, right? I think the occupancy, it appears quite strong already. Is there any room to still move it higher? And in terms of divestments, why you put $500,000,000 or $600,000 in largely in the US, right? Are you looking to sell Singapore more? So, maybe that's all I have for now. Yeah, thanks.

Okay, I think for San Diego, I think the situation for San Diego, if you look at the market right now, I would say that the interest for data sensors or life science in San Diego is not exactly very strong. So, one of the possible options that we are looking at divesting or relating to the industrial users. So, I think that will be something that we will continue to work on, right? As for Houghton, yes, you are right. Houghton is facilities where there potentially can be more power. So, as it is, that is probably one of the properties where we can see some interest coming through for people who are looking for more power. So, that is some right spot, I guess we can say that for the Houghton.

Okay, so Houghton, the power is secure already, right? Or just still getting the study? We have gotten the study. So, the studies basically shows that we are able to bring it up to I think up to 199 megawatts. But of course, it's not something that you, it's not immediately you want it, you get it typed. So, there will be certain time that is required for the power to be brought in. But I think we are seeing prospects who are interested in tapping such potential of more additional power. So, I think that basically spells something quite positive for Houghton. Okay, and you're related, you were related at that extra power, right? So, I mean, I expect that a lot of the increasing revenue. The structure of our wood piece is actually more as a real estate, so not so much on a

per megawatt basis. Oh, okay, got it, got it. Okay, sorry, Singapore? Yeah. So, for Singapore, I think you know that we have divested 500 over million of three properties. I think that one basically idea was to maximize or to get those properties where we have maximized our potential, as well as the business part where we know that the demand for business part is solved, and we have always been trying to push up the occupancy. But, you know, for the past few, for the past 10 years, it's not easy to do that. So, that is the rationale behind portfolio divestments. Whether will we continue to look at Singapore, we will continue to always look at opportunities when it arises, right? Because I think if you look at the Singapore portfolio, there are still some potential that we can unlock. And of course,

there's also some of the properties with short-land tenure, right? But I think having said that the focus for us at this point would still very much be on the North American portfolio where we know that that is where we need to, that is the area that we need to address at this point. I hope that answered your question. Yes, that's right. Last one is Singapore, organic growth. Still stable, right? Coming here. Singapore, organic growth. Well, I think if you look at the rental revisions, we still continue to see or to believe that we are able to achieve a positive rental revision. I think the previous guidance of the single digit is still there. Okay, excellent. Okay, that's fine. That's all I have. Thank you. Do we have Jonathan from Loewi to ask the next question? Yeah, good morning, Lily and management team. My first question relates to impact of

higher electric city tariff. So, the 76.5% triple net leases, they are not affected. But what about the other two segments, the double net leases and the gross leases are they affected by higher cost of electricity? And then second question relates to like renewal. I think for this quarter, you renew Macriman and pathway and then also third Timothy drive. So, one of them you renewed 11 years. What about the one at third Timothy drive? How many years do you renew? And for these two renewal, you know what's the rental revision like? Thank you.

Address the utilities first. I think that one easier. I think generally even those or the North American portfolio, even though some of them are on gross net basis or double net basis, in terms of electricity, it is still very much passed through to the tenants or borne by the tenants. So, I think from that perspective, we don't see the effect. We don't expect the effects to filter through on us for the North America and Japan to assess. I think where it possibly may hit will be basically on the Singapore portfolio where we have quite a bit of a multi-penetence buildings. But having said that, we have actually done some hedges for the electricity where we have entered into power procurement contracts. And these are in based till December. So, that's about 20% of the portfolio. So, what we are open with will be the

80% portion. Yeah. So, I think if you look in terms just to give some sense in terms of the impact, if let's say the tariff rate were to increase by 50%, the impact on our DPU will probably be

sorry. So, we can see that the 1%. So, for double net leases, for data center, the tenant pay for the this meeting is being recorded. 80% unhedged is quite high. I mean, if you look at the numbers in itself, like 80% seems quite high. The utilities forms only about 30% of our operating expenses. Of course, I think as things move on, we will always be looking potentially at increasing these hedge ratio if you want. The next question is on the renewals that

we see. Yes, this quarter we have the Morris deal, which the lease has commenced in this quarter. But actually, this is renewal was signed, I think quite some time back. This was signed quite some time back, I think for 11 years. And if you talk in terms of reversion, there's actually no reversion because this is a new space. This is not a backfill lease. So, you don't have a comparison to make. So, what we have done then is we have actually filled up an empty space, which is already there. And the other one that you're talking about, that's the one at 30% drive. I think the renewal is actually for a short period, like about two years, but this is one of the hyper-skillers. So, I think for them, they tend not to lock in very long,

but it is an auto-renewer that you just keep going. So, I think our past experience is they will just renew when it comes to the expiry. The new space at Morrisville doesn't mean that you added space to the data center. It's an added space in terms of the occupancy, yes. But I think this is a small space. I think it's about 34,000 square feet. So, and this is, I think, I believe this is small for industrial use. Okay. Thank you, Lili. Thank you. Thank you very much. Yeah, PG, to ask the next question. Hi, morning, Lili and team. Just a couple of questions. First one is a bit of a follow up to Jonathan's question. Quarter on quarter, the increase in property maintenance and taxes, was it one off or how much was it and was it,

do we expect it to occur? Talking about quarter on quarter, right? Yeah. Yeah. I think for this quarter, you see the margin a bit lower. So, because of the operating expenses not increasing, but that's because we have kind of, this is more a timing issue where we did our first sub-maintaining in this quarter. That's why it kind of bumped up the business. So, it's a one off. It's a one off for the quarter. Okay. But looking ahead, you would expect some margin pressure to continue because of utilities in general. Is that right to say? Yes, but we think that the impact is not that significant. As I said, even if the tariff were to increase by 50%, the impact on our GPU is less than 1%. Okay. Got it. My second question is in terms of Tithersman, you have done it,

done quite well last year. This year also a gigantic 500, 600 million. What are your plans to redeploy the proceeds as there will be an income vacuum from these divestments?

Yes, we are definitely looking at acquisitions now that we have really divested 500 million with more divestment in a way that will actually give us quite a nice hit room for us to look at our acquisition. So, I think that will be something that the investment team will always be looking at. I think in terms of where we want to or what kind of properties we're looking to, if we continue to keep our eyes on data center, but we wanted to have some diversifications in terms of draw-free hints. We have always been talking about us wanting to look at the Asia pack region, looking at Europe. As you will note that I think in Europe at this point, we have no presence at all. So, I think when it comes to draw-free like US, we tend to be very, very selective because of the, because we already have quite some presence in the US, so not so

much into US, but for Europe and Asia pack. So, I think again, if you look in terms of the U spread, what seems to make sense at this point is perhaps in Japan and Europe as well. So, just to confirm that your balance would be safe on the data center, your priority is focusing on Japan and Europe over this balance acquisition or balance of 3% stake.

I think the 50% also very much depends on whether the sponsors want to let that go, right? So, I think that is something that we will want to look at if the opportunity comes. I think if you look at the portfolio of the joint venture, it is definitely a good quality portfolio where we have almost, I would say about more than 50% of that portfolio are actually the hyperscales, which is something that we would like to have a little bit more exposure on. But I guess it's also really if I have, if I'm able to do more diversifications for my portfolio through getting more exposure in hyperscalers, that would be great. And in terms of draw free, if we are able to get more diversification by looking at other regions, that would be something that is quite welcome as well. And I believe all these will actually help to improve the resilience of the portfolio. Just one question, in terms of your data centers, do you expect

K-PEX for the ones which are replicated? And how much K-PEX would it be? Just to give some sense in terms of new tenants. I think it very much depends on who the tenant is and what is the condition of the property at that point of time. For some of the leases that we are talking or we have been discussing or we have executed, the K-PEX may not be very huge. Say for example, the one at Tenancy, I think the K-PEX was relatively low at about 4 million. I think for some of those, we do have tenants who are prepared to say that it doesn't matter. I'm okay with the structure, with everything that is with the property and hence I don't really need a lot of K-PEX. Any K-PEX will probably come in the form of repaving the driveway, making sure that

the walls are not leaking, repending, that kind of thing. So not significant K-PEX. We have a deal to ask the next question. Okay, thank you. Hi, lady and team. Morning. Just a quick question for me. With regards to the renewals and backfilling of the North American portfolio, I just wanted to get an idea as a percentage of revenues, how should we look at it? So basically for the renewals that were done in the North American portfolio, I think that the 400k or so you didn't mention is about 5% of NLA. But as a percentage of revenues, does it differ a lot? I just wanted to get a sense. I don't think it will fall very

significantly away from that number. I would say most of the leases that we have signed, okay, let's say if you're talking about renewal, the renewals are coming through with a positive rental revision. I think just now I mentioned your revision is about 3%. So if you look in terms of the contribution, it will be higher than what we were looking at, at least for the renewals, right? And of course, all these also come with escalation. On average, do you have average escalations for these renewals and unices? Average escalation, I think you, actually ranges say, I would say largely around 2 to 3%. Okay, got it, got it.

I think we are looking at this about with average about 3%. Okay, okay, got it. I think we will also highlight that for some of these, there is actually range pre-included, so the real contribution may come in say in about 6 to 12 months time. Okay, so on average, do you think it's safe to assume that rent free is typically 6 to 12 months for a 5 year lease? Depends, very generally, a rule of thumb tends to be 1 year 1 month, right? But a lot of these also depend on negotiation. Say for example, if you look at the branch wood, the tenancy property starts to bend the bill. The lease was for a good 30 years, but my rent free is only 12 months.

Okay, okay, got it, got it. Okay, Ken, that's all from me. Thank you. Thank you. Let me have time to ask the next question. Hi, morning. I understand you mentioned earlier that the risk of non-renewal for FY28 is not high. Do you think that the occupancy for the portfolio will actually trough in FY27 then?

Of course, we hope so. Well, I think, okay, seriously, if you look at it in terms of your expiry profile, you see that the tower in 2728 is the highest, and that is also where we see, we face quite a bit of risk. I think we have mentioned the 4.7 non-renewal, that I think everybody knows of which the larger component actually comes from San Diego. If you look going forward, the renewal proportion is actually quite small. A large part of the portfolio, for North American portfolio, is still, I would say almost 50%, more than 50% is actually due in five years' time. So if you just look at the next few years, the lease expiry is actually quite manageable. I think the range is around 2% to 3%. So once the non-renewal wave is kind of stabilised, all the efforts that we are putting in into saying that there's some of these vacant

or coming to be vacant type of properties, or our efforts to be able to backfill them, is definitely going to have some positive impact. Following up on F.I. 2728, do you see any risk for the Singapore lease expiry? No, in fact, I think that there is a lease that is coming out for renewal. That's why I think you see the tower a little bit high, right? But we have already commenced our discussion with that tenant, and we are very confident that this renewal is there. Okay, and just one last question on the divestment that you're looking at. Are these assets that are vacant, and also how should we think about gains or loss against book value? Okay, I think if the five to six hundred million, a large part of them would be the vacant and

coming due to be vacant type of properties. I mean, naturally, right, because these are some of the properties that we want to be able to address, the releasing challenges. But we have also, if you remember, I have mentioned previously that we have actually take a very critical look at the lease of properties that we have. And for some of those which we feel that there may not be able to contribute very positively towards the growth will be packed into this financial divestment. So I think some of these may be income producing, but I think if you're looking from it or from a longer term, if there's no say, you know, on a low power capacity type, or we think that there is, it's not as easy for us to try to gather the releasing later on if it ever happens, then I think it's best for us to do the divestment. So we have actually run through a very, take a very critical look at the portfolio

to identify some of these properties. So that all in would give us around five to six hundred.

How do you think this will compare against book value? Is it divestment price versus book? Oh, I think if you look at our, if you look at our valuation this round, we have actually taken some valuation loss on certain properties. So I think those would mainly be the ones which will be vacant type. So I think if you're talking about whether we'll be insisting that we must sell at book value, I think that is something that we have to be practical and we have to look at what are the alternatives for us, right? So we, of course, we hope to be neutral on the overall basis. We are not insisting that we must die, die, sell above valuation. I mean, for those properties that is not going to contribute, it's actually better for us to just take the hard

decision and divest it so that we can recycle it into something that is contributing to the portfolio. All right, thank you. Thanks.

Hello.

Hi, can you hear me? Press off, Derek. You need to speak up a bit. Oh, is this better? Okay, cool. No, just, I'm sorry, I missed out the earlier part of the call, but I think I caught something about the utility impact. I mean, there's a 1% DPU number being mentioned. Is it if utility costs were to increase by X percentage leads to a 1% DPU impact? Yes, I think we were saying that if the tariff rate increased by 50%, then the impact on the overall DPU will be less than 1%. That's the 1% okay from current rates and from current base tariff rates. Okay, got it. And when do you intend to hedge the remaining 80% of the Singapore assets? Oh, sorry, 80% of the, yeah, the rates.

I think the decision to hedge very much is weighing what is the cost of the revenue.

I think it also requires us to move a switch to the same power, but I think that it will take some time for us to be able to do that.

Okay, okay. And switching to the US portfolio, you mentioned that financing $100 million divestment. And does that include assets which you're currently doing power studies on? And does the financial experiment already take into account the fact of the power study or it doesn't?

I think for some of these properties, whether we have done power study or not, if we are not seeing significant contribution coming true, then I think they will be in the lease. Having said that, I think the power in itself, having the power capacity in itself doesn't mean that we're going to get it immediately. So there is going to be some level of KPAC that's required to put through and time is also required to bring the additional power in. So I think for some of these properties that we have done, we would consider divestment if there is a good value or if there is someone who is prepared to get up. So we are not close to the option to say that just because I've done power study, that is potential therefore I will not divest. I will only do a reading. I think we have to also weigh the various factors.

And just on that, this is like Houghton, for example, you're looking to intensify to 24 or even potentially 99 megawatts. The current valuation, $15 million, is on current power capacity only. Do you expect an uplift in valuation if you were to secure a larger power bank? As I said, because this is core and shell basis, the rentals are actually based on the area. That means based on the NLA rather than based on the megawatts. But you don't sell them on the basis of power bank? Sorry? Okay, you don't sell them on the basis of power bank? We don't charge base on the megawatts. I mean, that investment when you sell the asset, when you put it on market, can you sell these off power bank? Sure. I think just to answer the question, I mean, this asset is actually on a power

shell basis. All right. What we have done in the power study is that we have spoke to the grid and they actually told us that they can actually increase the power up to 99 megawatts. I mean, with that, there will also be quite a significant capital investment. But to answer your question, if we do go to the market to sell, the potential buyer will definitely look at the potential uplift of the power to 99 megawatts. But they will also have to consider the key back that you will need to put in. But of course, that will increase the attractiveness for the asset. Whether are we looking to release it or to sell it?

Okay. So, I mean, so expectations basically would be probably hoping to sell that around current valuation. So even for Horton, I mean, yeah, that's the current valuation we have. Yes. Okay. Okay. So I have, thank you. Thanks. Rachel from the query to ask the next question. Hello, morning, lady and team change. Can you hear me well? Yep. Okay, great. Yeah. Yeah. Sorry, I dial in a bit. I just want to confirm the San Diego you're looking to divest, right? And then San Jose and El Ferreta, what are your plans?

Okay. As I said, San Diego is not exactly in the key data center market. So divestment is definitely on the card. If you're talking about El Ferreta and San Jose, I think these are still very much in good data center market. Releasing is something potentially that we expect to get. Of course, again, we don't close the door in terms of the divestment. But yeah. And then my next question is on the divestment. The 500 million, 600 million parts, six million is vacant assets or going to be vacant. Does that mean that it will take a while for you to divest? I would presume that the interest would be quite low. So, I mean, we have been cooking this for quite some time already. So I think in terms of vacant or versus income producing, we are probably looking at a mix of both. All right. But I think

what we can say is that we are looking at both the vacant and income producing assets for this 500 to 600 million. And definitely this will be our target, at least within the next 12 months or so within this FY. So I think some of them we are already in slightly more advanced discussion. So hopefully we can have some good news coming out in the next six months or so.

Okay. Understood. Okay. And then if I hear correctly, your interest on acquisitions is still Japan and Europe, right? But I think looking at your peers, they have been acquiring some Japan data center assets and from the same fellow. So I'm just wondering whether you have looked into it and is it your decision of not acquiring? Is it because you haven't done much divestment? I mean, that's part of the decision. All right. But of course, as you mentioned, those acquisitions that our peers have done are probably very similar to some of the other acquisitions that we have done. So essentially this decision was made at that point of time. We do have a lot of factors that in our mind about, you know, we want to diversify out of existing countries that we have and so on. But I mean, it's good that we at least we are still keeping some balance sheet for other acquisitions that we are looking at. But again, with more divestment,

it will actually improve our balance sheet and our appetite to invest.

All right. And maybe just one last one. FY27 interest rate guidance. Seven. Sorry, is it 2728 or 2627? 2627. Financially, you're right. Yeah. Coming financial year. Yeah. Coming financial year. Yeah. For FY26 to seven, we do have 600 million IRIs coming due. The interest rate is expected to increase to around 3.5%. Okay. Got it. All right. Thank you so much. Brendan, do I have the next question?

Hey, morning. Good morning, Lydia. Can you hear me? Morning. Yes, we can. Yes. Hey, hi. I just want to check, right, on this 300 to 600 million, right? Does this refer to your carrying value or the expected valuation that you can fetch? Because I think if you look at the latest, we've exercised why some of these assets have really taken quite a bit of reviled losses, right? Yeah. So I just want to check that. And also what is, if you can share with us, is there a rough timing on how fast you can execute these divestments and the general level of interest in this kind of assets in the current market? Yeah. Thanks. Okay. I think we addressed the first question first. These numbers would have taken these properties at around the initial numbers. That's really right, because we will always minimally try to hit the valuation. But the demand is such that we might have to take below

valuation that we take up. But our first stance is always evaluated, right? And as for how long it will take, I think generally the five to 600, we probably can get it done within the next one, two years. To be frank, when we pushed out, I think we will have pushed out a little bit more. So this is what we think we probably can achieve. Am I missing any other question? I think that's it, right? Yeah. Okay. So basically, there is a certain kind of interest in this asset, right? Is it kind of seen that? Because obviously you're not selling your best assets, right? Yeah. We're not selling the best. But I think we do, sometimes we do try to pair the slightly better assets with the not so good assets, and then you sell it out as a portfolio. I mean, that is one of the usual divestment strategies that people will get. So I think

we apply it across for all the various strategies that we can when we look at the divestment.

Okay. Ken, Ken, Ken. And I just wanted to just double check, right, for your assets in San Diego, Tawaki and San Jose, right, which we saw a very significant fall year and year in valuation. That is really because of the vacancy. It's because of the vacancies. And I think when it comes to devaluation, devaluous has taken a slightly different approach. So they actually use the sales comparison approach. And they look at it from an industrial land perspective. So I think that is the reason why value has been dropped for quite some time. But I think you, or the value has been dropped. But I think we also recognize that these are the properties where we have seen vacancies for quite some time. Okay. Just one last one, right. Are you intending to sell anything in

Singapore? And should we expect some form of compensation, say, for some of your more prime assets, like your two Kalang assets, right? I think over this quarter, they did see a very short fall in the valuation. You're talking about Kalang 1 and 2, right? Yeah, I think it was a 20% fall, right? Yeah. That is because of the short land tenure. Those are the ones, I think the remaining tenure is about seven years, five years. So as the usual valuation, you will go when you hit a certain remaining life, they will start to bring them down very quite in a huge jump all the way down to zero because these have a limited kind of lifespan, right? So it is expected that when your short land tenure, when your land tenure comes closer to the expiry, you will see an impact on devaluation. So whether we are looking to divest some of this, of course, we will be looking at it,

right? Even that there is a land tenure decay, I think there will be something that we will want to be able to do some divestment because that will then help us in maintaining the capital value for. But I think the question then is always who out there in the market will be prepared to buy. There are people who would like to look at it, but it's not a very wide market as you would appreciate that, right? So whether we are potentially looking at some of these divestments, yes, we are, but I think as I mentioned earlier, the key focus at this point is really on the North American side. The short land tenure is something that we will continuously be looking at. So I think for the short land tenure, what we have been trying to do is to engage JTC as much as we can to see whether there's any possibility for us to do the extension.

We have been also looking at seeing whether we are able to find, say, a user which the Singapore government would love to have and therefore on that basis be willing to extend land tenure, the land is for us. I think other than that, divestment is a potential option that we can look at. And of course, the other way to address this structural issue in Singapore is really that you try to dilute the effect by growing elsewhere with free whole land. I think that is something that is a strategy that a lot of the Singapore REITs has done in the past years. Got it. Okay. Yeah, great, great. Hey, thanks so much. Thank you very much. Thank you. Maybe we just take one question from the online audience. This question is about the pay off debt is a problem. New balance between selling assets to pay debt versus acquiring assets to increase revenue and DPM.

I'd like to share your strategy approach. I mean, the best is always that if I divest today and today in the very same minute I divest, I can buy. That is the best dream transactions that we can have. But unfortunately, we have to be realistic about it that your divestment and acquisition are not, it's very difficult for us to time it that way. So there will always be a time difference between the acquisitions and the divestment. In which situation then the question we ask ourselves is what do I do with the, let's say I do my divestment first, the question then would be, what can I do with the money? Do I sit on it, put it in the bank and earn very low interest income? So the best option for us to do is actually to repay some of the debt.

I think that will be more for temporary. That's why every time when we say we do a divestment, it is really to create the headroom, which will allow us to look at our acquisitions with ease and with flexibility. And at this point, if you look at our gearing, we are about 34%. If you take into consideration the refinancing of the top 37%, which is a very nice headroom that we have created with the divestment of the three properties in Singapore that we have done earlier on.

We are mindful that we are coming close to the hour. So if you have any questions, please reach out to us.