2Q & 1H FY25/26 Financial Results Briefing

Hi, good morning. Welcome to Maple Tree Logistics Trust resource presentation for the second quarter and September 2025. We have the full management team here with us, Jean, Seo, Shami, CFO, and James, head of SMM. So to kick off the presentation, Shami, would you like to start? Morning everyone. I'll first take you through the two key highlights. So gross revenue is 3.2% lower year on year at $177 million. This is mainly due to depreciation of currencies against same dollar effects. Then we have the absence of contribution from the invested asset. But this is low offset by revenue contribution from our AEI at 5-8 to Kuhn, now known as Maple Tree to Kuhn Logistic Hub. So that has achieved a committed occupancy rate of about 82% now. And lastly, resource table, same stock performance. While there were lower

contribution from China, this is offset by better performance from the other markets. So this resulted in an NPI being 3.3% lower year on year. DTU is 10.5% lower year on year at 1.815 cents, excluding a DG of 6.1 million. Our DPU from operations is 4.8% lower year on year, but a positive 0.2% quarter on quarter. In terms of portfolio up to 20, that's 96.1% and improvement from 95.7% last year. Portfolio rental reversion positive 0.6% as we saw the negative rental reversion for China narrowing into Q. Real stable at 2.7% here. Aggregate leverage, 41.1% slightly lower than 41.2% last quarter. And our average debt maturity is 3.6 years. We continue to hedge our interest rates, and about 84% of it is hedging the fixed rate, while 75% of our

income is being hedged with the same dollar. Moving on to the results, cross revenue is 3.2% lower year on year for the reasons highlighted earlier. So consequently our MPI is 3.3% lower. On a constant currency basis, cross revenue and MPI would have declined by 0.9% and 1% respectively. Foreign cost decreased mainly because of low rate on our unhedged. Sing dollar and Hong Kong dollar borrowings where we benefited from declining sorrow as well as low high-bought remainder quarter. We also had some interest savings from the powering down of loans with divestment proceeds. But this is partly offset by interest incurred on loan drawn down for the AEI as well as replacement hedges at higher cost and higher base rates for our JPOI loans. So DI is 9.6% lower.

With a DPU of 10.5% lower, 1.815 cents versus 2.027 cents last year, excluding a DQ of 6.1 million, operating DPU is 4.8% lower, 1.815 cents versus 1.907 cents last year. After taking into account the higher unit rates, one-half results, reasons for the variances are largely similar to that versus for the 2Q versus 3Q last year, including DQ, our DQ would have been 11.4% lower, 3.627 cents versus 4.095 cents, excluding DQ of about 11.8 million. DI is lower by 5.1% and resulting DPU from operation 6.1% lower at 3.627 cents versus 3.861 cents. Sequentially, 2Q versus 1Q, I think we saw better performance.

Cross revenue, marginally higher, mainly coming from the contribution from our 5A JUKUN, AEI. Property expenses, higher, mainly because I think we will take some time to cover the property expenses in current FIFE JUKUN as we continue to ramp up the occupancy rate and start collecting more revenue for the AEI project. So accordingly, NPI is just marginally lower. Borrowing costs lower because of the lower Hong Kong dollar and SGD sour rates. Resultantly, our DI, 98.2 million versus 97.6 million and available DPU, 0.2% higher, 1.815 cents versus 1.812 cents after accounting for a higher unit rate.

Moving on to the balance sheet, our NED stable, $1.26 cents, leverage at 41.1% versus 41.2%. Interest cost came down marginally to 2.6%. We target to keep these at similar levels, about 2.7 to 2.8% for the next two quarters. We've a bit, I mean, depending on where the store market goes, we may benefit a bit more, but we're still looking about 2.7%.

We, our thematronic profile remains well staggered. Average saturation, about 3.6 years. We have about 819 million of available committed credit facilities to meet our refinancing needs in the next 12 months. And as mentioned earlier, we have hatched about 84% of our total debt into fixed rates leading the rest of the 15% in SGD and HAPR floating rates, which will benefit from all the floating rates movements. And then in terms of FX, we have hatched about 75% of our FX for the next 12 months into same dollar or the writing same dollar. I'll pass over to James to bring it to the portfolio details. Hi, everyone. So in terms of our portfolio update for 2Q, this meeting is being recorded. This meeting is being transcribed. But the development markets, which continue to be at 70%,

which gives us the stability that we need. Next. In terms of trade sectors, 85% of our revenue are actually serving domestic consumption, which remains resilient. Only 15% of our revenues are for exports. But as we have shared earlier, to the US, our exposure is less than 5%. So there's limited risk to our portfolio, but we can't discount any indirect consequences or impact to the sentiments of the market. Next, the occupancy. Overall, our occupancy remains very resilient, as improved for Q1. So now it's at 96.1 compared to 95.7 given the 1Q. So in most of the markets, we continue to have 100% occupancy, like Australia, Vietnam, India, and Hong Kong.

We see four countries registering positive occupancy rates. Singapore is one of them. It's shared by our CFO. This is due to the increasing of momentum at our 5% due to food. Or now we know, now it's 4% due to 96% hot. So the 2Q occupancy is 60% or we're committed. This is at 82%. So we should see this improving as we move along in the next two quarters.

China also saw improvement in occupancy rates, driven mainly by improvement in our efficiencies in the tier two cities. Japan was down primarily due to this expiry in Kuana. So we had a process of backfilling the space in the next one, two quarters. Korea saw improvement in occupancy based on a new lease in 1-7-1. Malaysia saw a slight improvement in occupancy because of a new lease in Tung-pila Pass.

So in terms of rent reversion, overall rent reversion was 0.6%. Excluding China was 2.5%. In Singapore, it was 3.9%. Japan was 0.0. Hong Kong, 0.7%. South Korea, 1.1. Malaysia, 3.4. China, minus 3.0. Vietnam, 4.3. And there were no lease expirations due in this quarter for two other countries, Vietnam and Australia.

India, and Australia, India. So in terms of the lease expiry profile, we saw that the contribution of more than 4% of our portfolio. So there's no concentration risk.

In terms of active portfolio rejuvenation, we have announced three completed divestments in 2Q, namely 31 Pendju Lane in Singapore, Subang 2 in Malaysia, and Nuju in South Korea. And we have completed one in 3Q, mid of October, for the one in Wodonga.

Okay, I'll go through a couple of slides to update you on our BLEAM initiative. So in support of the gross long-term target of net zero emissions by 2050, MLT has committed to achieve carbon neutrality for scope-related solutions by 2030. So on this run, we are pleased to update that our target set for FY2526 for solar generating capacity as well as green buildings. Here today, we have reached a city that houses. So for solar, we have already expanded our capacity to currently 56.4 megawatt peak against the target of 55. So we are on track to hit 100 megawatt peak in 2030. And if we take in to include third-party funded capacity, actually we are at 108 megawatt peaks, which I believe should be the largest,

if not one of the largest, you know, amongst Singapore reefs. Then for green buildings, we have already reached a 69% percentage for our portfolio by GFA. And we hope or aim to reach 80% by the year 2030.

For green financing, we've secured another 300 million of new green and sustainable financing this year. And that brings it to a total of 1.5 billion, or about 27% of our total borrowings, up from 24% as of March this year. For green lease, we also continue to make good progress. Tracking about 59% currently for all our leases. And we're also happy to note that our Benoit Logistics Hub, which was the first AI in Singapore, was recently recognized as one of the, or rather the only industrial logistics building by under the BCA Greenmark 20th anniversary building projects. So now I'll pass over to Jean to wrap up. Good morning, everyone. In terms of the outlook, right,

I think as all you are aware, the world economy has proven more resilient than expected with a lot of the front loading of exports and AI investments. And in terms of the trade tensions between the US and China, it appears to be cooling down based on the latest development. However, I think this on and off tensions continue to create a lot of uncertainties and continue to clog the global economic outlook as well as keeping our business and consumer sentiments cautious. Operations-wise, you have heard from James, we have a slight update in our occupancy rate this quarter compared to last quarter, mainly coming up from Singapore with the progressive leasing out in Faie Jokun as well as China. And our negative reversions in China has been narrowing and it's now at negative 3%.

On the leasing outlook, from the occupancy and rent reversions, our China operations appears to be stabilizing by region in terms of the west and central China, it seems to have bottom. We are starting to see some higher signing rentals from some of the cities in the west. For example, in Kuoyang and Koming. On the northern China rents, like I said earlier or before, we have already signed at very low rents. If the situation doesn't further deteriorate, we hope that whatever we have locked in continues to be stable. And on the south, there will be a lot of upcoming supply. But for MLT, we only have two assets. So that's not a very big concern to us. The region that we are watching very closely, that is of concern is actually the East China Greater Shanghai region,

as the vacancy remains elevated and pretty high at around 26%. So I think in a nutshell, if you ask me when is the inflection point, really it is very hard for us to put a forecast. And with the current domestic consumption, we think the asset supply will probably take at least another one to two years or more for it to be absorbed.

Going to Hong Kong, the leasing market remains cautious with the ongoing slight uncertainty. However, today we have renewed or replaced about 90% of this FY lease expiry. And already the team is already starting to engage our bigger tenants for the coming FY lease expiry. Based on the earlier conversation, we think they will likely continue to renew with that. But I think in terms of the rental reversions, it will likely be taking into consideration the current vacancy levels. As for Korea, there is an elevated market vacancy of 16%. Although in terms of the supply pressure, it seems to be easing based on the current statistics. And the deflect to quality continues with some of our older specifications, facing some leasing challenges and higher incentives.

Back to Singapore, as mentioned by Seattle and James, we have already achieved a commitment rate of 82%. And we are looking to still target to achieve full occupancy for this AEI by this financial year end. So Singapore remains a resilient market. But with more supply coming on stream this two years, we think the rent reversions will moderate to a low single digit kind of growth trajectory. I have covered about 70% of AUM and the rest of the 30% from five countries like Australia, Japan, Malaysia, Vietnam, India remains resilient. On capital recycling, I mentioned before that we have identified a 1 billion pipeline as potential assets for divestment as part of our portfolio rejuvenation strategy. And half of it will come from greater China. So last year we executed about 210 million.

To date, we have executed about 60 million post-quarter closing. And for the divestment target this financial year, we are targeting about 100 to 150 million this financial year.

On the divestment options for China, we are in discussion and we have received a few interest from some insurance companies and SOEs on a few of our assets in China. So we are still in continued dialogue. And as for the roaming fee fund, it is something that we are exploring as a possible as the option. So on acquisitions amidst the tapering of interest rates, there are more opportunities out there. And USPRE seems to have improved for some of the countries, but we remain highly selective and disciplined in our acquisition process. We will be keen to increase our presence in our emerging markets like India, Vietnam, as it still offers a faster growth trend and our AUM is still very small in these two markets. And as well for Singapore, we are also still exploring AEI opportunities

for the East location in Singapore. With this, I think I wrap up my presentation and I leave it for Q&A. Thank you. Okay. We're now open for Q&A. Okay, Mavin, you're first in line. Hi, Mavin. Thanks, and me. Yeah, and Gene, congrats on the fabulous performance in China considering the difficult market conditions there. Very glad to see some signs of stabilization. On the China reversion, I think guidance previously was a flat dish for next financial year. Are you maintaining that guidance or is there some variation? Is there any variation? And your occupancy, have you been able to hold it low 90s? Actually, increase this quarter. Any guidance on occupancy going forward? The second question I have is in terms of cost of that guidance,

thoughts for second half this year as well as FY27. Thanks. Okay, Jim, so I'm so glad. Sure. On the first question on China reversion, yes, your observation on the on the reasoning of the negative brand reversion is coming up. So we see that the next two quarters, we are still watching closely, it should improve and we should flatten hopefully within the next two quarters. So that's the outlook for China. And the occupancy, you were referring to China occupancy, did you? Yes, I mean, a market vacancy is still very high, so it's done amazing job holding it low 90s. Yeah, so we still positive about our occupancy rates in China. As you can see, 2Q, we improved one percentage point. So we reckon that in the next few quarters,

we should be hovering around this level 94% or even better. So just a follow up on the reversions, you expected to improve the next few next two quarters at least. But is there a chance that the 0% level rather than next FY27 could be like fourth quarter? We are looking at perhaps in Q4, hopefully we can have a neutral position by end of the FY. We are still working very hard towards that. Okay, that's fantastic news. Okay, and the interest costs guidance, thanks. Hi, Mavine. So on the cost of that, it's currently 2.7% last quarter. This quarter declined slightly to 2.6%, mainly because we benefited from the lower solar rates as well as the low high ball rates at the beginning of the quarter, which has now increased, right?

So moving forward, I think for the second half, we are looking at about 2.7%, but also a lot depends on where the unhatched rates will be. But if it's current levels about 2.7% and we will target to keep it stable for the next financial year. Okay, excellent. I'll hand over the rest. Hey, Derek from DBS, you're next. Hey, good morning. Can you hear me? Yep, yes. Hey, good morning, Jim. Congrats on the stable results. Just two questions from me. The first one is on JU-KUN, right? I know you're getting fairly good committed occupancies and just wondering whether for the remaining leases, right, from 60 to 80, are you getting higher rents? And at this moment in time, what is the income collected reflective in terms of occupancy level? So we would expect that incomes for this asset should start to continue to improve in the subsequent quarter, right?

So that's the first question. Then maybe my second question, maybe, yeah, my second question is on income hedges. I just want to get a sense about your hedging expiry for next year, which are the currencies that we should be taking note of and whether there's going to be any potential market to market. I'm watching especially your Japan and Hong Kong hedges. So something that could be a spanner in the work. So I just wanted to get this out of the way. Yeah, thanks. So the payage include the rentals because we have now hit about 80%, 82% from the Fed, right? So the leases for the balance will definitely be higher than the present because this is quite typical. When you first start, there will be several more incentives to start with to get the leavers in. Then as we include occupancy rates, rents, we go up.

So then that's typically how we are marketing this project. Okay, so last quarter, how much have you collected out of the 60%? How much are paying the rent? It's about $1 million. It's about $1 million before the fitting out and rent. So Derek, I think in terms of the contribution from the new AEIOI, in 2Q itself, we collected revenue about $1 million. But I think this is largely because a lot of the rent fees and P.W.S. were given in the front. And you are right, we will see this contribution increasing for the next two quarters and more in the next financial year. Okay, that's good news. Okay, thanks for that. Okay, so I think you've seen the hedges, right? Okay, so for the next 12 months, for JPY, we are blocking about 83% of our DI from Japan. At a rate of about 90,

one thing, so that's a very good rate, we will enjoy it while last. And then for Hong Kong dollars, 72% has been locked in. The rates are at about five, almost six. You mean everything expired normally? Only part of it? Oh, so like, for the next 12 months, months, yes, this all 83% like JPY, all 83% were expired by 12 month sign. Okay, so it could be a market. Yeah, so a lot of it is market to market. Okay, so for JPY, I think a bit more color, we have previously locked in for a longer period. So if you look at beyond the 12 months, we have locked in about 56%. So the market to market rate for JPY will be lower, slower, but like for Hong Kong dollar, the rest of the currency, I think most of them will expire in the next 12 months.

If you notice the swap cost, right, I mean the hedging cost, it's gone up actually quite a fair bit in the last past half a year. So the rates that we are able to enter into forward fee states are not as attractive.

Okay, okay, okay, okay, that's why I need to know. Thank you. Thank you. Okay, next, Rachel from Macquarie.

Rachel, you can ask your question. Please go ahead.

Can you hear me? Ah, yeah. Thank you. Can you hear me? Hi. Okay, good morning. Yeah, congrats on the China bottoming up or flattening out guidance. Two questions from me. I think firstly, in terms of the interest cost, think you're guiding that next year is going to be flat 2.7%. I'm just wondering, how are your hedges like in terms of the interest rates versus the current rates? You know, I think a lot of the rates are really recording lower average cost of that. So are there still more lower rates that in your books? That's one. And then my second question is on the China lease expiry that's coming up this year, remaining up this year and next year. How much of those lease expirations are coming up from the East China assets? And last one, in terms of your divestments, are you seeing a pickup in interest in transactions

and now that the interest rates are actually lower. So in terms of that, we should expect a faster pace of divestments. So let me start with interest. Okay, so I'll go on the interest cost first. I think the first thing first, at an interest cost of 2.7%, and I think that's one of the lowest in the market as of now, color on the hedges that's falling off an exponential year. So for example, our Hong Kong dollar, the rate that's falling off, it's 1.7%. I want to replace it with Hong Kong dollar IRS that would be much higher. So what we have been doing in the past one to two years is when this really low rate in Hong Kong dollar and Aussie dollar comes up for replacement, we have actually replaced it with a cheaper currency, for example, CNH or SGD. So I think to keep our interest cost

at 2.7% exponential year, we will potentially replace this Hong Kong dollar debt that's expiring 1.7% with maybe a same dollar or a CNH loan, which would be similar levels at this expiring 0.7%. And that's how we will try to keep our interest cost stable. Does that answer your question on how we can keep it, how it's going to be at 2.7%? If you look at the universe of rates as of now, I think the lowest that we can find would be same dollar and CNH and of course, JPY2. With the new prime insert, they may be that would, the rate of increase for JPY would be slower. But comparing against whatever is expiring, it would be similar levels. Okay, got it. How about your Singapore loans then? Will you still get some benefits from your Singapore loans? Okay, so the Singapore rates that are dropping off are like 2%. Maybe marginally lower,

but we don't have any same dollar deal for refinancing in the next one, two years. I think I also mentioned earlier that in terms of the lower rate this quarter, we have benefited from the unhatched portion of the same dollar loans. So if SORA decreases or lowers further, yes, we will benefit. But conversely, if SORA increases, then our 2.7% will probably increase to 2.8, 2.9, depending on where SORA is. Okay, thanks for the comment. Yeah. Reisha, so regarding your questions on divestment, with the lowering of the interest rate environment, the divestment activities, yeah, you're right that, you know, it's starting to pick up and have nothing more interest. But if particularly, I think for our greater China portfolio that we are looking to divest, at least we are seeing some inquiries coming in. So now, right now,

it's about, you know, the discussion on the kind of pricing that the parties are looking at. So from that perspective on the China divestment process, compared to last year, it is slightly better. We are seeing interest. And the other part that we have been trying to sell, like the older specs, like in Korea, Singapore, Malaysia, that one, I would say it would be a bit less sensitive to the interest rate environment, but more about whether the end user or the buyer finds our property relevant for their business requirements. Not that interest rate is not important, but I think more of whether, you know, the current specifications suits their business needs. So, but in a nutshell, I think that's what we are looking at now, like in terms of the current divestment pace. I hope that answers your question.

James, to answer on the lease expiry in China coming up from the East region. Okay. Rachel, I'll get back to you before the end of this call. We're completing. Okay, great. Thank you so much. Thank you. All right. Shall we move on to the next person? Okay, Brandon. Hey, morning, can you hear me? Morning, Brandon. Yes. Yeah, good. Good. Hey, I just want to go back to the asset divestments in China, right? So, the fund that you spoke about, is it by talking about the private REIT or you're looking for seaweed? That's the private one. Yeah, it's the lending piece one. Oh, okay. Okay. And for the sort of timing wise, right, this half a billion that you're looking to sell in China, can you roughly guide on when you could see this being off-suited from your balance sheet? It's quite hard for me

to actually give a guidance, but I think immediate for at least this 1-2 financial year, probably 100 million. Okay, 100 million at $426. So, another 400 million at $427. Yeah, but that one also includes the Hong Kong divestment that we are looking at. So, we are looking at trying to divest our shorter title assets, and that's going to take some time because all the shorter assets will need to find a lot of individual owners. So, that one will take a bit of time. Oh, okay. So, basically, the half a billion that you see. It's from greater China. It's Hong Kong and China. From greater China. Okay, okay, okay, okay, okay, okay. And in terms of the divestment, premium discount, can you give a guidance on that for both Hong Kong and China? We are looking at valuation. At valuation? Yeah. Okay, okay, okay. Just a lot sort of top it off, right?

But I'm just looking at the sort of these that you saw in this quarter in China. I saw that these have been brought here to FY2728. So, does it mean that you're still signing pretty short leases in China? Okay, I think generally, yes, the leases in China, it is still pretty short term in nature. In terms of signing beyond two to three years, we are still seeing, but it's really very few. So, overall, most of the tenants in China is still taking a cautious position. So, still pretty short term. But if you ask me to, you know, if I diagnose further, if you look at the renewables that we signed this year versus last year, in terms of the will, we are seeing some slight very mild improvement.

Compared to the main one, I'm saying that last FY renewal versus the first half of this FY renewal in terms of the will is slightly longer. Yeah. So, I have to ask your question. Okay, that's good. Yeah, that's it all. Thank you. Thank you. Okay, Xuan from Coleman. Hi, my name is Xuan. I have a question on acquisitions, right? And how are you thinking about funding? Is it coming purely from divestment or are you now open to equity now that share price has increased? Okay, for now, it will still very much be the divestment pays depending on how much capital we can recycle. But having said that, right, if there's a large portfolio that is very attractive, I think we do not rule out the option to tap the market. Okay, got it. And can you share more colors about the China divestment and valuation?

I guess we've seen one office in so as big discount. Why is logistics holding out better?

Okay, I think in terms of why we are seeking near valuation, I think that's something. That's why if you notice, it's been taken. We are still trying to negotiate. We're still trying to negotiate. And then the other reason, I think if you look at, yeah, I forgot to add on that in terms of the Raming B fund that we are looking at, right? We are actually working with our sponsor on this. So that's something that we are negotiating with them. Okay, got it. Thank you.

Okay, next in line is Derek Chung. Thanks. Hi, morning everyone. Just a quick follow up, I guess on the divestment of assets to the sponsor, right? That's the development fund, right, that they have. So will this be a potential, you divest and then you do a joint development with a sponsor? Or how are you thinking about this? No, no, it's more like, we have some assets in the balance sheet that we are looking to divest to give some funds. And then the sponsor will be more like

LP. And whereas they will also look to get some capital partners in it. So we will not be having a stake in the fund. Yeah, and it's not. Sorry, sorry. Yeah, it's not a development fund. It's just we are just exiting our assets and put into the Raming B fund, which is a income fund. Okay, so the pure exit. Okay. Yes, yes. Okay, understood. Thanks for that clarity. And then on acquisitions, right? I think you mentioned earlier, India and Vietnam, but this market, I guess the use spread isn't too attractive, especially if you're looking to deploy proceeds from divestments. Are there other markets that you are looking at where, you know, use spreads are more attractive? In terms of the yield, these two markets continue to be the highest from the yield perspective.

Of course, I think in the other markets where we are starting to see interest rate coming down, for example, maybe Korea, you know, in terms of use spread, it is a bit better. So maybe, you know, that's something that we will continue to look at, but it will really be very opportunistic. As for Australia, I think the rates hasn't really come down much, but it's something that we still continue to monitor. What about Japan and Singapore? At Singapore, we are looking at more AEI, asset enhancement. I mentioned that we will, we are actually exploring in discussion to acquire a property that is adjacent to our current assets, and we are looking at amalgamation and doing a new redevelopment. So for Singapore acquisitions, it will be more perhaps buying some old properties that is very near to our existing assets, and we are looking at redeveloping it.

And Japan? Japan, no doubt, the cost of that is the lowest at low tools, but if you look at the yield, it is actually very tight at 4% or below. So from that perspective, if there is any potential acquisition, it will have to be via recycle proceeds. Got it. Alright, thanks so much.

Next, we have Terrence. Hi, this is Terrence from UBS. For the China portfolio, do you mind sharing how under-slash-over-rent the current in-place rent stack right now versus market, and if you don't mind splitting between tier 1 and non-tier 1 type of classifications? Yeah, James here. So currently we analyzed in terms of market to market, I think that's what you're alluding to. For percentage, it's not market to market. So we scan through our leases in China about 10% is yet market to market. So we need to say they would exist if the market remains at a certain, at this current situation without going down further or without going up. We have 10% of this exposure, but this 10% is not going to expire

all within one year, so it's spread over the next two years or so. Okay, got it. And I think just going back to the point on acquisitions, I think the earlier statement was focusing on India slash Vietnam, but I'm just thinking, why not just focus on Singapore, whereby you can avoid the effects issue, borrowing costs is also almost like one of the lowest points in history, whereas I guess the preference for EM has until date proven to be quite challenging. Okay, I think for Singapore, because it is a very regulated and tight supply market, right? Definitely, if there are opportunities, we will definitely also take a look and evaluate. So in fact, there were a few deals that we have seen, but I think it is a bit challenging at this point in time, taking into consideration some of the expectation

as well as the panel that is left. So that's something that we will continue to want to pursue, but realistically speaking, it will be more opportunistic from that sense. So that's why I think in terms of acquiring a small property, which is near to our assisting one for us to do that rejuvenation, it is something at least it is more achievable. But having said that, I think definitely we will still continue to pursue. It's just that I think in terms of modern grade A specifications that is available after the monotone of the JTC requirement, typically we are looking at a very short-length-leased left-left. So it is something that I think we are cautious about, and we would prefer for Singapore to rejuvenate within the existing portfolio that we have. So far, we have done four, and the third age of code is our fifth successful AEI project

in Singapore with a good record in terms of the leasing performance in terms of giving us good returns. Okay, and my last question is, maybe just a small big picture thinking we've seen REITs through the period of high interest rates. Surely the DPU had suffered, but even coming out of it, I think some of them are trying to show up their capital buffers now. So we've seen some examples of REITs reducing fees in units now. So I guess the parallel being for MLT, FY26 looks to have taken a hit. So when we formulate our thinking about FY27, is that also part of management's thinking that it's time to, I guess, rebuild some of these buffers? Yes, you're right. So I think I have mentioned before, I think once our operation starts to stabilize, our DI starts to improve,

we are looking at slowly taking back some of the fees in units and convert into cash. It is something that remains in our mind and we will do some conversion as and when our DPU is able to take it. I guess, suffice to say earlier that I think the ideal divestment is limited gains and currently, if I'm wrong over there, and I guess by extension also, if there are any gains, we probably won't see them being paid on. Yeah, I think we have just turned off the distribution of the divestment gain just a few quarters of the goal. So if there's any future divestments with just very few million gains or very little gains, I think we will continue to actually keep that and strengthen our balance sheets for flexible financial agility for future acquisition. But having said that, if you are able to divest

an asset that give us a very huge gain, I think it's something that we are open to explore to give a bit of divestment gain in future. But based on a lot of the divestment pipeline that we are looking at, we do not foresee that there will be a very huge gain over the original cost based on our current basic duty. Okay, got it. Thank you very much. Yeah, thank you.

Ray, James, back to your earlier question. You asking in terms of the balance of this fiscal year or financial year, what expiries from East China is coming up. So, you know, portfolio, which China consists of Zhejiang Province, Jiangsu Province, and Shanghai. So we have 19 properties in all in China. And based on this expiry, we have 36% due from this East China coming up for the balance of the year. Of course, not all East China is, not all the 36% are going to expire. Just like that. Some will be placed. Some majority will be renewed.

Hello, hi. Yeah, did you hear me? Yeah, I'm not. So these, you're saying this is finally here? 36% right. Yeah, the balance of next two quarters. Okay, and this is up to market already at current range.

Hello. So there's still a small gap. Yeah. Still. Okay. Yeah. How about next year? Next year we are looking at about, for each China, about 25 to 30%.

Okay. And also same, there's still some have a market market. Yes. Yeah. Single digit percentage. Okay. Okay, okay. Then maybe can I just ask one last quick question. In terms of your R I think it's something that is still in discussion. We, you know, we, in terms of what I've guided, right, I see half of the name is coming out from China and Hong Kong. So, so from our perspective, I think in terms of the sale, a lot is also coming up from Hong Kong as well.

Okay. Yeah. Yeah. So this remote design is specifically for the China assets. Yes. That's what you're saying, right? Yeah. Yes. Okay. Okay. And the Hong Kong assets are still expected to divest to the past year. Yes. Yes. And that will probably take some time because those that we have identified are shorter title units. So meaning that, you know, all the small, small units will take some time to get the right buyer. And typically the buyers interest would likely be from the business owners rather than a kind of demand. Okay. Okay. Got it. Is there a time for the RMB fund?

We are looking at hopefully quarter four, but maybe most likely quarter one next financial year. Okay. Okay. Okay. Okay. All right. Thank you so much. Yeah. See, next we have Brandon. Hey, Jean, just a few follow-up questions, right? Just going back to China, right? So assuming that your China stabilizes, right, how big of an improvement in the sort of earnings contribution you would see coming back from China? I think this is a good idea. In the good old days, you were at 2021 percent. Any specific number? Brandon, it's a very difficult question to answer. I don't have a crystal ball. Unfortunately, I can't give you the guidance, but what we are really trying to work on the ground is really, you know, as you have seen for the first half, we're trying to really do

that stabilization, and there's still a fair bit. Like, I think some of this research has asked, you know, how much is coming up from East China. So we still have for the East China, there are still some visas coming up. So that's why I think it is very hard for me to give you a number at this juncture. Okay. Can I get? And can you give a rough reversion guidance for FY26 in Korea and Japan? That's why 26. Yeah, referring to next financial year, is it, Brandon? Or the remaining second half. If you can give 27, even better. Yeah, I thought I was going to say it is next year, then can we check in again? Another time. FY26. FY25. Yeah, but it's the second half, right? Okay. For which one?

Korea and Japan. James, you want to take that? Yeah. For Korea, we believe next year, or... Second half of this year. Second half of this year. Maybe four years, maybe four years easier. Then we can plan it ourselves. I think second, we are just advising this again. Half of this year for Korea, it's still going to be around 1%. Yeah, it will be the low single digit, around what we are seeing at the current second quarter. In Japan, it should be quite similar as well. Not zero, but... Quite traditional. Over being, you know, 0.5, the current range. Yeah. Okay. Just one last one, right? So you mentioned that equity is considered if it's a portfolio. When you say portfolio, is it more like external, or is it an amalgamation of your sponsors,

assets in India, Vietnam, Malaysia, everything, Australia, even while combined? If anything, that's up for review and any opportunities, there is good luck. So I don't want to roll out what you're doing. Got it. Okay. Thanks, thanks. Thanks, Rob. Well, Vin, you have a follow-on question. Yeah, just a follow-on for the Zucorn Logistics Hub. When do we expect full cash flow contribution for the initial 60% committed level than 82%? Sorry, I didn't get your question. When do we expect full contribution from the Zucorn Logistics Hub? Sorry, I didn't get your question. When do we expect full contribution from the 82%? The initial 60% and then the 82%. Yeah. Or it should be in a part of a 3Q onwards.

So 3Q will get the full 60%. Yes. Okay. Then the 82%. Part of 3Q, because 2Q, some of the reasons came in 6th September, right? So you give them, you know, quickly or... Oh, then this maybe 4, that means 4Q, 26, then you get that. This is 4Q. 4Q, yeah. Yeah, 4Q. Then the 82% will be middle next year, next financial year. Or it will be later. 82% is likely to be part of 4Q. Oh, part of 4Q. Oh, part of 4Q. Yes. Okay. Okay. Much better than my projections.

Um, first, on the Hong Kong... So next year, you'll be expecting a full contribution. But basically, the full year contribution, we are expecting from April. Yeah. Yeah, the 482. Okay. On the Hong Kong TV list, I can't remember, was it renewed like a year ago? Or was it coming up again? And what's happening in the list? Yeah. Hong Kong TV is expanded across over the last few years. So the leases are renewed really. Was renewed in the beginning of last year? Yeah. And when did this expire? Typically, it's a three-year lease. Three years. Okay. Five questions for me. In terms of Australian net effective rents, especially for Melbourne, it's been quite weak. Um, your thoughts on Australian market at this point in time, and rental reversion guidance for Australia going forward?

Yeah. For Australia, you're right, Melbourne, because of the supply, right, the rents are a bit soft, right, to a single-digit rent book. Similarly for Sydney, right, it's also has normalized the single-digit rental group, right, but for places like Brisbane, it's much stronger than just rental. First of the demand and supply dynamics. So Melbourne is because of the oversupply. I wouldn't say oversupply, but new supply coming out on stream that is causing the weakness of the rentals. Where's Sydney? New supply. Not so much new supply, so the rents are still quite healthy, right, but it's single digits, uh, rental, not so much of double digits, uh, rental, which, you know, we experienced last year.

So in terms of your, your in-place rents for Sydney, Melbourne and Brisbane, how does it compare to spot market rents at this point in time? How under-rented is it? Yes, for the leases, uh, because the rents, the lease profile for Melbourne and Sydney, uh, typically can be, most of the leases are between three to five years. So you can expect still upside, uh, when it's not the market, when it's renewed. How under-rented would there be? Is it still 10, 15% below market or? I would say about 5 to 15%, depending on the lease. Okay, so we still, should still see income growth. And Brisbane, how under-rented is it? Brisbane is, uh, more or less in a market really, Brisbane. Okay, but that's the spot, so growing up a little single.

Yeah. Okay, thanks very much.

Okay, next we have Joy. Hey, morning, uh, team. Yeah, just a quick question from me. First of all, on lease tenure, I mean, other than China, are you also seeing other places that are shortening lease tenure because of all these trade uncertainties, uh, for example, Vietnam?

Uh, not really, no. Yeah. Uh, there's still, in fact, the sentiments on the ground is, uh, very positive, right? So the effect of our, when the, when the, what do you call it, lease expires, we have actually quite a number of prospects lining up, uh, in our facilities. So, uh, that shows the market is still very, uh, robust, yeah. In fact, I think the demand inquiries, uh, is very strong and we do not have actually much space to backfill, to actually fill up the vacancies. We don't have any vacancies in that sense, yeah. Yes. We have more demand than supply that we have, yeah. Okay. Uh, and then just on that topic, uh, you know, from, uh, you know, Chinese tenants moving outskirt to ASEAN, uh, how much are you able to actually capture? Oh, we have captured, I think across our four locations. We have, uh, we have them in, uh, Singapore, Malaysia, Vietnam, and Hong Kong.

Yeah. But in terms of flow, I guess, you know, you know, reason where I think we are seeing a lot of flow into Vietnam, uh, outside of that, is there any other locations that, that you seeing a sudden surge in the map? You mean out of the Asia pack? Out of, uh, yeah, Asia pack. Oh yes. Actually they are, um, looking for space in Metease as well as in Europe. Oh no, sorry. Not out of it. I mean, within Asia. Oh, okay. Within Asia pack, um, it's the mostly the four countries that we have. Actually Australia, we had as well.

Okay. Okay. Okay. Cool. Um, yeah. And just, um, I missed the early part of the discussion on the China fund. Okay. Can I just understand, uh, why there is no intention to do CV? Okay. I think between the two, the CV it's, uh, you know, the setup timeline is going to be very much longer. And then I think for CV, the one of the, uh, key condition is that, uh, about 75. Is 85 of the recycled capital have to be in China. Oh, I need to actually, yeah, I need to reinvest. Uh, so, so that's why I think in terms of that as the option, the remaining fund would be a bit more attractive for us. And then that also apply. Yeah. Go ahead. Sorry. Go ahead.

I think there was also, there was an auto, I know, um, a question about, um, you know, how much is going to be off the off the, um, China assets that have been year mark. And as well as the Hong Kong assets have been year mark for divestment, how much is for the fund, right? So, uh, not all will be going to the, uh, fun, um, in terms of the, um, so between the split between Hong Kong and China is about half half, but out of the half that is coming up from China, not all will go into the remaining define. There are some that we are separately in discussion, uh, with some other interested parties. You will also rule out the possibility of doing a private fee on the Shanghai stock exchange.

Um, I think that one, uh, probably at this point in time, not within our planning horizon. Yeah. But wouldn't move out. Yeah. One step at a time. Okay. Enjoy. Yeah. Ken. Thank you very much. That's all from me. Thank you. Okay. I think that, uh, we have come to the end. Thank you so much everyone for dialing in. Any more following questions, please feel free to reach me. Yeah. Thank you. Have a good day. Bye. Thank you. Bye. Bye. Thank you. Thank you.