4Q & Full Year FY24/25 Financial Results Briefing

Hi, good morning. Welcome to MLT's results briefing for the fourth quarter and full year for the financial year and March 2025. We have the full management and strength here. To start off the meeting will be our CFO, Shamein. Over to you, please. Hi, everyone. Good morning, everyone. Thank you for dialing in today. For Q at 4.2425 results, our results continue to be impacted by the lower confusion from China, higher boring costs as well as some effects impact. Overall, BPU is at 1.955 cents, 11.6% lower against 4Q last year, mainly due to the same reasons I've highlighted above earlier. Operationally, our portfolio of currency is stable, while rental reversion is slightly better

compared to CQ results, really, it's only longer, 2.8 years. Tax-per-management-wise, our aggregate leverage has slipped up to 40.7% against 40.3% last quarter, mainly due to the valuation loss as well as some effects translation due to the weakening regional currencies against the same dollar. We continue to hedge our debt, about 81% is in fixed rates with a debt maturity of 3.8 years and 35% of our income have been hedged in the same dollars for the next 12 months. During the quarter, we completed three Malaysian divestments. The proceeds have been used to power down loans. We also announced the divestments of another three projects, two in Singapore and one in Malaysia that will be completed in the new financial year. See, if I move on to the results itself,

gross revenue is 0.8% lower, mainly due to lower contribution from China, absence of revenue contribution from divested property, because of currency weaknesses. This is mitigated by better performance in the rest of our market. MPI is lower by 1.6% accordingly. In terms of borrowing costs, we had higher average out of the 4% increase, about 2.4 million, is actually due to incremental borrowing to fund the acquisitions we completed at the beginning of the financial year. The higher average interest, while we saw higher average interest costs when we did the replacement of our hedged debt law, these were offsetted by loan repayments with proceeds from divestments. After taking to account DG of 7.7 million, 4.3 million lower than the 12 million we declared last year, DI is 10.3% lower, translating to a DPU that's 11.6% lower at 1.955 cents.

Excluding divestment gain pop up, we adjusted DPU would have been 8.5% lower or 1.833 cents, versus the 1.971 cents last year. Moving on to a full year result, the reasons behind the variances are very similar to the 4Q year on year. Cross revenue is 6.9 million or 0.9% lower compared to last year, full year, mainly due to lower contribution from China, absence of revenue contribution from divestment properties. Okay, shall we please continue? Okay, so MPI is lower by 1.5%, and year on year, our DG, after taking to account of borrowing costs higher, mainly due to an interest in cut on incremental borrowing to fund the acquisition,

that's about 9.3 million of the 11 million increase in borrowing costs. So after accounting for DG of about 27 million, which is 14.6 million lower than the 41.6 million last year, our DI is 9.1% or 40.8 million lower year on year translating to a DPU of 8.05% for this financial year, versus 9.003 cents last financial year. If we take away the impact of DG, adjusted DPU would have been 7.519 cents, versus the 8.167 cents last year. Moving on to cross on quarter, cross revenue is 1.5% lower, mainly due to the same reasons mentioned earlier. Accordingly, MPI is lower quarter on quarter, although we note that there is a slightly higher property expenses incurred quarter on quarter

due to one off expenses in 4Q itself. DG is very similar to last quarter, so DPU for this quarter is 1.955 cents, versus 2.003 cents last quarter. Excluding DG, it would have been 1.803 cents versus one point. On the balance sheet as well as capital management fund, our investment properties slightly lower, 13.3 billion versus 13.4 billion. This is mainly due to valuation losses, which Malan will share a bit more about later. In terms of the debt, we have kept it at similar levels, and NAB is at $1.31, versus $1.34 cents, mainly due to same reasons valuation losses, as well as translation losses. Interest rate is stable at 2.7%,

and interest coverage is also stable at 2.9%. We continue to maintain a well-segregated maturity profile with a healthy average debt duration of 3.8 years. What's coming due in the new financial year is about 7% of total debt that's $374 million, and on hand, we have available committed credit facilities of $833 million, so this is more than sufficient to meet our refinancing as well as capital requirements for the next 12 months. In terms of the hedges, we continue to hedge our interest rates, as well as effects in the current volatile environment. So about 81% of our debt has been hedged into fixed rates. The unhedged portion, about half of it is in JPY, and the other half is in dollars. As for FX, about 75% of our amount is attributable in the next 12 months has been hedged.

The next slide will be the distribution details, and I will hand over to James to bring you through the portfolio update. In 4Q, our diversified portfolio gives us much stability. 70% of our MLT's portfolio by AUM and revenue continues to be contributed by the developed markets, IE, Singapore, Hong Kong, Japan, Korea, and Australia.

We have currently more than 900 customers, and these are evenly distributed between 3PLs and end users by gross revenue. So most of these tenants concentrated, 85% of them are serving domestic consumption. Many markets like Australia, Japan, Korea, Malaysia, and China, and in these sectors, which are domestic consumption sectors, like for example, FBA, fashion, consumer staples, is giving us much stability and less volatility in terms of demand. Cuppancy-wise, in 4Q, our occupancy remains very stable against 3Q. Singapore, Malaysia, and Vietnam occupancy drops slightly due to a transitionary vacancies, which is being backfilled in one quarter, the current quarter. China's occupancy went up slightly, showing some improvement.

Hong Kong, Australia, and India occupancy remains stable. In terms of rental reversions, we registered the rental reversion improvement from 3Q to 5.1% in 4Q, excluding China, the rental reversion was positive 6.9%. In terms of lease expiring profile for coming FY, or the current FY to 5, it shows 32.3% expirings in the current FY. This is a slight increase from 3Q, which we showed at 31.9%. So just to share some playlists behind this, the 0.4% increase was due to, from last quarter, was due to mainly from China, the short leases coming from China, where the will was one year or less.

So this fell into this FY, FY25. So in terms of FY25, lease expiring profile, 32.3%. 50% actually is due from China. The other 22%, 12% is from Vietnam, 10% is from Korea. Sorry, back to the top 10 tenants by gross revenue. So we have a good spread of tenants across industries and countries, to give us a diversity. This coming from 3PLs in the top 10, and also e-commerce companies, like SFXpress, Hong Kong TV, and also hyper retailers in Australia. Hey, hi, this is Maliam. I will go through some of the few slides to clear as they have been updated in the past. I think the first one is actually the acquisition. I think this has been actually updated in the last few quarters.

This year we have actually completed the acquisition Malaysia and Vietnam. All right, next. So this is also the AI that the team has embarked, right? So what is the FY22-COON in Malaysia? Also let James talk a bit about FY22-COON, I think which we have actually a chocolate good tick on the menu. Yes, just to update everyone on the FY22-COON status, this project is due for completion middle of next month. We're happy to report that we have at the moment recommitted occupancy of 46%. And these are coming from a mix of local companies, 3PL companies, FMCG companies, e-commerce, and also Supermart. And we're in the process of negotiating for more leases in the coming weeks. So we look up to see and revenue for the next three weeks. Okay, thanks James.

Now we'll move to the next slide. This is actually a divestment. I think to date for the whole year, we have announced and completed the divestment about 14 properties, right? 30 amount of about 200 million, right? Then some of these have not been updated in the previous quarter as well, right? Can we move on? Valuation. So I said, next slide please. I said March, we have done our annual valuation as the 31st March 25th. As you can see from the slide, the valuation of the April 4th as the 31st March 25th is about 13.3 billion. And this is about, this represent a slight increase over a last year, 13.2 billion, right? This is, this increase in valuation due to a few couple of factors. First acquisition of a tree assets and also so capex and the property under development for the 5-8 raccoon. It was also out-saturated by some investment of 10 properties.

And then also, all of these 62 million fair value loss, the majority comes from China. This is the result of the low renter and low occupancy. And we also see some expansion of cap rates in some other part of. The other part of this net value, net value loss is contributed by- Our ESG progress this year. Very happy to report that I think we are making good traction on our aim to achieve carbon neutrality for scope one and two emissions by 2030. So respectively for solar, we have increased our capacity

both on the same self-under as well as the total solar capacity which includes the parking installed. That has increased to about 71 megawatt peak which we believe is actually the largest among ESWIS in Singapore. And I think we are also very happy to see that China and Hong Kong as a combined market, we have actually achieved or neutralized the scope two of the carbon emissions, meaning that the landlocked consumption is entirely met through. As for green buildings, about half our portfolio by GFA is covered, already achieved green third. So we continue to press on because our target is to achieve 80% by 2030. Moving on to green financing, the year in the year we secured green and sustainable financing for about, totaling about 355 million. So that brings to a total of about 1.3 billion

of green and sustainability link loans, representing about 23.8% of our total following. Then green lease, we have constantly been engaging our tenants to adopt green lease provisions, meaning that it includes green clauses in the lease for all the new as well as the new leases. So on that front, our portfolio is now about, slightly more than half, it is now covered by green lease from barely 1% two years ago. We continue to plant a tree with Maple Tree, that's our slogan. This year we have planted more than 4,300 trees, both on our assets as well as the community in support of the sponsors objective to plant 100,000 trees by the year 2030. Now I hand over to Jean to wrap up. Hi, morning all.

Okay, I think in terms of the outlook, this month has been a very exciting month. So with this Trump liberation day tariff, definitely I think globally there is a rising concern in terms of the rising trade tensions as well as the possibility of a recession globally. So that then has resulted in a lot of the high term business uncertainty. So coming back to this, in terms of the profile of our tenant base, perhaps I can give a bit of color on that. Is that like what James has shared, majority of our tenants serve the local consumption market. In particular, if you look at the tenants coming out from Australia, Japan and Korea, in fact, they actually, you know, our tenants actually fully serve the local market. And then if we look at the trade dependent economies

like Singapore, Hong Kong and Vietnam, yes, there are a handful of tenants that serve directly the US market. But majority of our tenants do serve other markets as well, meaning they are also diversified in their export markets. For example, we have a tenant in Qingyi, Hong Kong. They are doing some cosmetics distribution. So besides the US market, they have diversified to markets like the European Union, you know, to China, as well as to Asia. So in that sense, you know, for tenants that have some exposure with the export market, they are also diversified in their market as well. Then of course, coming back to India, India, it is a very small portfolio, you know, MLT revenue base, though there are small numbers of tenants

serving the US market. But I would say overall in a nutshell, looking at the profile of our tenants, mainly serving the consumer staples market, we are very diversified in terms of our trade serving the consumer staple segment. So that in the immediate short term, we think that there is a limited impact from this tariff war. But having said that, right, in the longer term, it is anybody's guess, nobody knows. Because I think if this trade war become protected and it got worsened, you know, it is most likely it will dampen the economic activity globally and therefore, you know, affecting the investment sentiment as well as the business and consumer sentiment. So that would definitely have some impact. But I think the indirect, what we are trying to say is that indirect and contingent is that it is very hard to gauge at this moment.

So we are watching it very closely. The situation, you know, it is still very fluid. So with that, I think what we are trying to do is, you know, our top priority is really to continue to ensure that we stay closely with our tenants. We understand our tenant business well. We continue to keep a close watch on the cash collection. I think for now, in terms of the rental collection, it remains in a healthy trend, but it is still in the early stage, we shall see. Then portfolio resilience, it is something that has been ongoing and the rejuvenation strategy remains intact. Coming back to the capital management, I think Shamin has said that, you know, we continue to put in the relevant appropriate hedging strategy to mitigate the borrowing costs that will continue to exert some pressure on our distribution. And also, you know, in the current very uncertain market

and volatile market, the regional currencies will likely continue to be very volatile. So with that, we would want to be very prudent and very disciplined in our capital management. And we will also want to ensure that, you know, the use of capital is very efficient. And that, including the investment gains that we are going to retain to actually build up that financial flexibility going forward. And over time, I think this will allow us to actually, you know, take advantage of any opportunities, of any equity for acquisitions that may come or any asset enhancements that may arise. And so I think in a nutshell, the portfolio rejuvenation strategy remains intact. We will also, you know, continue to be selective

in our divestment, particularly on assets that are outdated or old specification. And we would want to redeploy the divestment to invest into modern assets to ensure, you know, our portfolio remains resilient and catering for this long-term growth potential of our portfolio. I think with that, I end my outlook. Maybe we can start to take questions. Okay, Mervyn, you're first again. Okay, please go ahead. Yeah, good morning, Gene and team. Thanks for calling and congrats on the strong rental review versions. Thanks also for the clarity in terms of the domestic consumption mix. Maybe can we drill down to Singapore, China, Hong Kong, Vietnam, and Asia, like how much of those properties are export related in particular to the US?

Okay, I think if we look at the export markets, it is about 15%, right? Of which, right, if we look at the exposure, direct exposure, where our tenants serve the US market, it is currently very small percentage that we are talking about. And I would say, you know, on a portfolio level, it is a small percentage. Right, low, like less than 5%, 5% to 15%. Yeah, less than 5%, yeah. Do you have stats for Singapore, China, Hong Kong, Vietnam, Malaysia, that's export related? Okay, for China, actually majority of our tenants, in fact, on the country level, more than 90%, it's actually serving the local market. You know, we have leading e-commerce players that are actually mainly catering for consumption market. Okay, so 10% is export?

No, more than 90% for local market, serving the local market. Because if you look at the tenants' profile in China, they are mainly the e-commerce leading players in our portfolio that are catering more for the distribution of local consumer goods. And how much of the Chinese portfolio is US related? It's very negligible. It is very negligible, yeah. And if we look at our, to add on, if we look at our tenants in China, I think since the first trade war, they have actually diversified in terms of their markets as well. They have actually leveraged into our MLT network and they have still diversified in the presence with us in countries like Hong Kong, Vietnam, Singapore, and Malaysia. So from the company perspective,

even though for our portfolio, in our assets, they are mainly serving the domestic consumption, but on the business level, they are also looking at diversification on their end, when the local consumption market was a little bit weak and they have also diversified up in our MLT network on the countries that I've just explained. And for Singapore, how much of the portfolio is export related?

It's about a quarter on the country level. Okay, and of the 25%, how much is US? Very small, very small. Low single digits. Like I said, single digits, low single digits. Okay, then for Hong Kong, how much is exports? Hong Kong is about 20%. Exports, and of that, how much is US? Also very small number. Yes, small. Vietnam? Exports. Vietnam is about 30%. Export market.

Most of the US is... Vietnam, I think in terms of the contribution on the portfolio level is still very small. It's less than 5% on the revenue level, yeah. Yep, and the 30% exports as many US? No, it is diversified as well. There's only a small number of tenants that have serving the US market, but most of them are pretty diversified as well. And Malaysia, how much is exports related? 10%. 10%. And low single digit to US, I think. Yes. Yes, okay. What will you ask? Ah, Miss. Ha ha ha ha. No, I'm just trying. I know Malaysia, Vietnam, very small. It's a small Singapore, China, Hong Kong. I'm quite glad that South Korea, Japan, and Australia may serve local. So I think that gives a lot of comfort to investors. So in terms of guidance for occupancy for China,

I mean, done fantastically well, holding a low 90s, actually came up. Any thoughts on whether you can sustain that? And then for this year, I think some of the leases are coming from Vietnam as well. Yeah, that's a good question. So in China, even though we registered in 4Q as slight improvement in occupancy, we're still hopeful that it holds out around this level. Reason being before the Trump tariffs came into play or was announced, I think people were still keeping their fingers crossed in the second half, there could be some recovery. But now with this flux or this uncertainty,

everybody's waiting and watching to see whether, indeed, the recovery will happen with more stimulus by the Mississippi's government to boost domestic demand also. So we are not too clear, the clarity is not there, but we are hopeful that in terms of occupancy will stay firm at this level, perhaps even improving because we've been pretty aggressive to retain our existing tenants by giving out incentives as we have previously announced. And occupancy is still applying the objective in such weak markets as China. So we're hopeful to answer your question. Thanks for the, there's a number of Vietnam leases coming up this financial year. Your thoughts on whether you can retain those tenants? In Vietnam, yes, we have a very high percentage that is up for we know even country. So we have managed to retain quite a few

and we are confident of going forward because in terms of the renewal and the replacement rates, we are heating almost 90 over percent in Vietnam. So we are confident to maintain this relationship and Vietnam as we know, it's the wheel is also getting shorter, right? It used to be three years in the past, now it's averaging to over years. And it's not surprising because of the trade uncertainty in recent years and they are, I mean, the team is hopeful and slightly positive, optimistic what say to get things going and the demand is still there. Right? So in terms of occupancy dip that you see in 4Q, going forward actually this in backfill in 1Q soon you should see a much, much better occupancy in 1Q for Vietnam.

So the money is still there going forward. Everybody's watching. Okay, excellent. That's all there is some trade deals in the next 90 days. Yeah. Okay. Can we move on to Derek? DBS? Good morning, good morning, Jean and Tim. Can you hear me? Yes, we can. Hi, good morning. Thanks for the color on the exposure that you gave to us all. My two questions, I start off. First one, I'm looking at your guidance about divestment gains that you will retain, right? So I think it's a very prudent measure. Is this a new guidance going forward? Next to you. I think in the current business climate it is so uncertain and fluid. I think we will want to adopt that prudency and then to err on the side of caution. Got it, got it, got it. And maybe just a thought around it with the management or the bot thing

about looking at doing a share by using this DG gains. You are not going to use your gearing, but you also give confidence to the market. You're trading at a very attractive price. Your thoughts on that? I think it is something that we are open to explore. Yeah, that's what I can say at this point in time. Yeah, sorry, my second and last one will be on your valuations, right? I noted that China valuations was fairly stable and looking at how rents have fallen over the past couple of years. I'm just wondering, could you remind us this cycle, how much has China valuations declined and what are valuables saying for being able to maintain valuations at this level? Yeah, just your thoughts around that will be helpful. Thank you. I'll let Manel take that question. Yeah, hi, Derek. Manel here. That's why I think we start to look at the China valuations. We recognize that drop, right? I mentioned earlier that there's 32 million of net value lost

and the majority of this actually comes from China. So when we were, when independent value actually presented to us is valuation, they shared with us that the valuation is more of a longer term view of the China properties. But they do see that actually there are some challenges in the other part of the city. So for these cities, right, in the other part of China, where the supply is actually quite as effective, there's actually increased cap rate for 25 basis points, right? So as a result, our China valuation actually comes down to this. Of course, I think we also have to be mindful that this is what the valuation is as a long-term valuation, right? Of course, short term, we could see a fluctuation in the renter, right? But valuation reflect long-term intrinsic value. Okay, sounds really good. All right, thank you. Okay, next Rachel from Macquarie. Hello, hi, morning. Hi,

Yeah. Okay, got it. Yep. Carbon business condition, yes. Okay, sure, got it. Yeah, right, thanks. And then just a second question is on the impact of trade war. Have you seen your tenants coming to you, looking to move their setups across different countries? Or have you seen increased demand of them looking to take out a bit more space because they need to fill up or fill front loading of orders or any other sort? Okay, there are some examples which I'll get James to share, to give you some flavor. Yeah, so in fact, there is in Vietnam and Singapore. So in the small tenants in the East and West East I refer to in Alps and also in West in the Port area, where we have a very big facility. So these tenants are doing shipping and everything

of industrial goods and also semi-con goods to the US. So in the last couple of weeks, there was suspension of orders by their end customers in US resulting in buildup of inventory. So actually the buildup of inventory, it may lead to actually some short term ad hoc space demand, right? So that's what we are seeing in Singapore. In Vietnam, similarly, some of our tenants in the South, in particular, in the footwear and apparel industry and also in the solar distribution to the US have been affected. So the containers are so-called stuck because of the cancel or suspended orders. So these containers are packing up in our 86 plots for some of these tenants were affected. So there's certainly some immediate impact, right? You'll be, everybody's watching in the midterm,

what after 90 days pause, what would actually happen? So in terms of shifting of the supply chain, and relocation of new sourcing and all that, I think this is too early from some of the tenants to say because they're also waiting the issue to advise and the issue is basically adopting the latency so-called attitude as well. So everybody is watching at the moment. Okay, got it. Thanks for the color. Just wondering, would you be able to share how many percent of your leases are now short term leases? We will, I think we're looking at our will. The will, our average will is 2.6 years based on cost revenue. So in terms of short term leases, in certain markets, for example, like in China, if we define as less than one year, short term leases are actually about less than 20% of our training leases.

But overall, other countries is more than insignificant only in China, or if you define as short term as anything less than one year. So anything one year and more is considered as normal lease. Okay, and insignificant means about less than one percent or one percent. I correct myself. Anything less than one year in China in particular is close to 50%. Close to 15%, one five. 17%, one seven. So it's less than one percent. Okay, got it, yeah. And maybe just flipping one more. I saw that your Singapore assets valuation actually fell, cap rate's actually expanded. I'm just wondering, are you seeing stress level in your Singapore portfolio, rents coming off or demand not so strong? Is that the reason for it? Yeah, hi, Ma Long, maybe. No, Ma Long here. Yeah, yeah, yeah, so maybe I should share

a bit about your portfolio, right? So Singapore portfolio actually, as you understand, there's always a land tenure, each 30 years tenure tenure. So in Singapore portfolio, we actually look at that in three main categories. We have a great ESF, we also have a non-great AMF, those that are less than 20 years. So for our great ESF, actually the valuation is still holding up. In fact, we see some slight improvement. However, for the less than 20 years due to the amortization of the value, you always come, you always drop, right, as we move nearer to the end of the landline. So as a result net net, we say that the portfolio is slightly below, but it's relatively stable. But the cap rate has actually remained stable, you know, for the Singapore portfolio. It's just that I think this time round, a lot of the heat is coming up from the less than the 20 years, the shortening land lease, and it just got worse as the year goes by. We have assets that are less than 10 years. So less than 10 years, the value will take a view that it will cut. If you do at a straight year amortization,

we are talking about 10% or more kind of reduction year on year. But if you talk about cap rate, it is stable. Okay, I understand. All right, thank you so much. I'll go back to the queue, thanks. Okay, next year, Derek Chan, mother Sally. Hi, morning. Just a couple of follow ups, because my line was pretty bad. Just want to follow up on Jean's comments. You mentioned, U.S. exposure for China tenants and was it single load digit? Did I catch that correctly? Yes, that's right. Okay, cool. And then on the expiries that James was talking about,

was it 15% in FY26 comes from China of that 32%? Five zero. Oh, 50% of the half. High five two five, 50% of the half. It's 50% of the 33% you see there. Yeah, half of what you are seeing there. Okay, cool. How about coming from China? Okay, understood. And I guess for the China expiries, what would be your outlook? Is it gonna be the same short term renewals? And what's the outlook in terms of rent reversions over there? Because I noticed that there's been some slight narrowing of the negative rent reversions in China this quarter. So in terms of rent reversions, yes, you're right, it improves slightly, it's less negative. And our outlook is that barring any drastic changes to the policies that impact China overall in terms of secondary or knock-on effect on the heritage,

we believe this, we can maintain around this level or even improve in the next few quarters. But we are more guiding towards the same level for China rent reversions around the minus 9%. And what's your next question? Oh, is it gonna be a short term renewals as well? Like less than a year or so for these Chinese expiries? At the moment though, we see this is the current trending still. Yeah, although I think there are a small number of leases, they are starting to take up a longer lease. But I think with this trip wall happening this month, we will have to monitor it closely. And right now it is still pretty uncertain, but before this trip wall actually, we are starting to see some tenants taking a longer term view. I see, and I guess Swamin. So I think now we are just hoping that we will continue that kind of

negative high single-digit reversion. So what Jean has mentioned, we are still watching for signs whether the tenants are locking in at a low rates for a longer term. We are watching this very closely. There are a few cases, but we are not quite sure where to do this with the trending. Right, and I guess you said that this negative high single-digit 9% will maintain foreseeable future. But when would that narrow down to flat? Because you're renewing on a one-year basis, right? So next year they renew and it's again negative 9%. So that would imply a rapid version of, let's say over a three-year cycle, we're talking about 27%, 30% negative reversion. We are hopeful that within the next four quarters, hopeful, yeah. Okay, fingers crossed, yeah. We have to deliver that. No. Barring any shocks that we will hear in the global trade.

Okay, so assuming no further upheaval, I suppose the next four quarters you can see come down to zero, is the hope. Yes, correct. Okay, got it. All right, cool, thank you for that smart hand. Those are my questions. Okay, I think we at least should remind everyone to limit the questions to just three questions if possible. We do have quite a few people on the queue. Next we have Dale. Yeah, hi, you're the main thanks. Hi, Jean and Tim. Hi, Jean and Tim. Just actually one question for me. I think I just wanted to ask, with all this trade tension and tariffs, how has that actually changed your strategy on portfolio rejuvenation? I think in terms of acquisition divestments, are you changing your focus, especially given that you are quite ASEAN focused at this point in time? Yeah, I think at this point in time, I think if you look at the ASEAN focus, we are actually still very small. I think if you look at India, Malaysia, Vietnam,

it is still a very small portion of our portfolio. We are talking about just around 10, 11%. So in terms of the strategy, in terms of the country, it hasn't changed. It hasn't changed. It remains intact. And who knows that with the current kind of cooperation that Beijing is looking at to collaborate with the trading partners in the region, in Asia and in ASEAN. Well, I mean, is anybody's guess that maybe, there might be more intra-regional trade flows that come more in this part of the world. So I think it is still something that is uncertain. And for now, the strategy remains the same. In terms of where we are looking at the trade acquire, yeah. And in terms of divestments, right, I mean, I'm not sure if you have any potential property line up for sale.

Are some of these buyers walking away at this point in time? And for a lot of do that also is in terms of your, your AEI's, redevelopment, you know, are you taking a step back now and then reconsidering some of this or are you still powering ahead? Okay, for divestments, we have identified a lease of a lower specification and said everything, it is not suitable for us. And really it is about the ability to execute in the current business environment. So if we look at the current climate, those that we have signed, we didn't hear any signs that they are backing out. They are still proceeding with the deal, with just pending the completion. So there are four that we have announced and we did not hear any feedback that they're gonna withdraw, so that remains. But as to the new acquisitions going forward, I think in the current heightened uncertainty, we think, you know, some of the buyers

or potential investors may be also adopting a more cautious look. So the pace of divestment may be slower this year. So that is what I think we foresee, the pace will be slower this year. So same goes for your acquisition plans and with that, so slow down. The acquisition will very much take the pace of how fast we can execute in terms of our divestment. Similarly with AEI as well. I mean, on the back, I mean, we are still evaluating opportunities for asset redevelopment to see whether there's any more untapped potential within our portfolio, which we are still evaluating it and it's still ongoing. And we're just trying to seek some kind of in-principable clearance. Particularly, I think we have some time back mentioned about the project in Singapore. That is still ongoing.

It is still work in progress. Okay, okay, that's clear. Okay, that's all from me, thank you. Thank you. Okay, hi, Joy. Thanks to my hygiene and team. Yeah, just a few questions. First, in terms of short term renewals, I know this is pretty much China at the moment, but do you see this actually spreading across the region, giving what's going on? And if you can just share a little bit of the tenant sentiment as you do your leasing, does that affect any other region, for example, your 51 Benoit? Currently, we don't see much trend immediately, right? Like in Singapore 51, it's called 52. It's still reaching about three years and some even in four and five years. In other countries, like Vietnam I mentioned, since last year, the tenants and prospects

have taken a more cautious view, so the leases could be between two to three years instead of three to five years. So in terms of, yeah, there are more cautious for sure in terms of going for expansion, especially big expansion spaces in markets, like for example, even in Hong Kong, where the demand, as you know, is a bit soft, commonly.

So decision making time, no change, right? But in terms of cautious, in terms of big business expansion and consolidation and relocation, we don't see any change at the moment because it's still the same metrics that tenants take before they take on strategic moves to change the leases or to move distribution centers because in fact, there's a lot of investments caused required. So, one thing. Sorry, just things that liberation date, right? Have you actually signed or renewed tenants and did anyone come up to you and say, I need a bit more time? I really know. No, actually, if you look at our 50, the five age of formerly 51 by nine, the 46% were substantially secured this month since the liberation date. The tenants signed up. Yeah, so I think for Singapore, we feel that the tenants are still adopting

that usual business as usual stands for now because I think really it is very hard to predict what's going to come next. Okay, and also if I can just ask for Vietnam as well because this year you got quite a bit of Vietnam leases up to you. Have you been, you know, business as usual in Vietnam or you foresee certain sort of shorter renewal leases? Vietnam, I think some of the tenants, like for example, in the potential business or the federal business, we have seen them out in the past really over the years. But in terms of, and we even pre-tenanted some of the so-called lower end businesses of tenants who are, I mean, tenants in those business space which seem to be more risky and actually even higher rentals. So to answer you, so there's a proactive move that action that the local team is taking in Vietnam

and to answer your question whether there's any change in behavior. At the moment, we do not see yet, but like I've mentioned, in Vietnam, the consumption demand is still fairly high. All right, and hold up that 30% of our business in Vietnam is exposed to global trade of which about less than 10% is to the US. But even the exposure to US trade may be, you know, what do you call it, replaced by trade to intra-Asia and also to EU. So the tenants themselves are changing their own business strategy in terms of renewals and new leases. At the moment, we still see very active leasing inquiries and we're confident based on our current court in renewing and replacing our tenants in Vietnam that this high occupancy in Vietnam will carry on.

All right, we've been eating almost 100% every quarter in the last few years except for this quarter in one of the more bodies in the north. But that is really fill up like I mentioned. Okay, thank you. And then two more sort of follow up. One is in terms of tenant breakdown, the 13% IT electronics, is there any concentration in one specific geography? Or industry? The electronic IT and possibly if you get no particular. Okay.

And then in your top 10 tenants, I noticed that JD dropped off. Any background to that? And also, do we expect any further changes this year in your top 10 tenants? Yeah, good question. JD dropped off because of consolidation in China, right? So they're consolidated and in terms of some space that was released and we replaced somebody else and also rents, effective rents have dropped. So they are no longer in our top 10. That's one of the reasons. And in terms of outlook for the top 10, I think very much most of this place except one of the Hypermart, Australia companies, a tenant, right, that is expiring. So we're in the process of replacing them.

I see. So only, okay. So one of the Hypermart companies in Australia is expiring so they are moving to their own facility so that name will be taken off from the top 10. Okay. There's another expiry in your top 10 that's secured. Sorry, I don't understand your question. Hong Kong TV. Oh, that's renewed here. It has been renewed. Okay, okay. Cool, thank you. That's all from me. Thank you. Okay, Terence. Hi, good morning. Hello, yes. So without really taking, yeah, without really taking into account any tariff impact, I'm just wondering if the pressure for FY26, it actually sounds quite similar year on year. So if you just hear me out, there'll be some effect from dilution from divestments.

The effects for EM Asia has weakened further. I think China weakness continues and we also have this issue of zero capital distributions if I understand it right. So it sounds like the order of magnitude for headline DPU decline will perhaps be similar to the 11% we saw for FY25. And would this be the right intuition because I observe I guess consensus has it quite flat year on year task for? Sorry, I think will not be quite appropriate for us to comment on the magnitude of the DPU because this is I think quite sensitive. You make up your model to work on.

Suffice to see the pressures that I alluded to are still quite pertinent for FY26. Quite similar. I think the factors mentioned are appropriate, yes. Okay, got it. And the last one I forgot to ask, if I missed it, what was the guidance on borrowing costs for FY26? Okay, hi, Terence. I think we have always guided about $17 million in please. Out of which a set, some of it is coming out from the taking of the interest to P&L after the interest incurred on the 5E2 cost completion. So that would add about $7 million to our interest cost. And then of course we have hedges that are falling off. So those would be replaced with higher rates. So I mean, if you look at some of the hedges that are falling off in the new financial year, for JPYs, they're locking at about less than 0.5%. Those would be replaced higher. That's for the other currencies,

those are also locked in at less than 1%. So those would also naturally even need to replace with the cheaper CN Y borrowing, those would still be higher too. So higher borrowing costs would continue to impact our EPU. And then I think the latest would be, there will be some impact coming on from the JPY borrowing costs that have been accepting the loan for like the past many, many years, which allow us to keep our interest cost at 2.7%. So that would also, depending on how fast DOJ increased the rates, so that would also impact our borrowing costs. Okay, so any guidance on the target number like we should think about on a blended portfolio basis? I think we're looking at, okay, based on whatever we see now, of course, excluding whatever shocks that we can have from all this volatile market, we're looking at still 17 million. Okay, got it, thank you.

Okay, thank you, have Vijay. Yeah, hi, morning, thanks for the call. I have three quick follow-up questions. My first question is, can I know how much divestment gains you have currently in your PT? And the guidance is, you don't plan to distribute divestment gains moving forward, is that right? That's right. I think based on what we have in the back is about 19 million, those that have been completed. Okay, got it, thanks. My second question is, in terms of, correct me if I got this right, you said about 50% of your renewables for this year is coming from China. And if I extrapolate it with your revenue, which is about 17, 18% China, it looks like your 80 to 90% age of your China portfolio is up for renewal this year. How do we sync this with one year real for China or less than 20% of the portfolio one year real? I mean, am I right in saying that almost all the leases in China are up for renewal this year?

No, I think the petition is incorrect. In terms of the will, right, we mentioned that it's 1.4 years, right? On average as of the first March this year. So, out of the lease expirates in China, in FY25, 50% of them is argue. Okay, I guess the probably discrepancy is between MLA and GR. Okay, 50%. My last question. No, I know it's fairly close. The 1.4 actually is similar for NLA and GFA. GR, grassroot. No, I think he's talking about GFA. Okay, anyway, it is similar by NLA and by revenue. 1.4 years.

Okay, okay, because I mean, your China revenue is 17, 18% and you are seeing 16% of your expiry is up for renewal. I'm just trying to sync up these two numbers with your real, but probably I can take this offline if this is a different topic. My last question is in terms of a five-way jukoon site. I mean, the lease secured so far seems to be slightly below. So, Bakit, would I be right in saying that 46% seems to be slightly low compared to demand at this point of time? And in terms of ROI for this site and rental expectations, how is this compared to what you have initially planned for this site? You are saying that it's below or below in what sense, you may ask. Yeah, generally, I think for a compact logistics demand, I would have expected occupancy somewhere closer to 80% by closer to completion date. No, I think if we look at our truck record in terms of our AEI, I think this is one of the better ones

that we are able to secure pre-commitment ahead of TOP. Typically, in a past, we are saying that generally the leasing take up, the momentum will come in usually within six months after TOP. Right, but this time, we are seeing actually substantially pre-commitment ahead of TOP. And if we look at our last AEI project in Singapore, that was 76 pioneers, we didn't have such a high pre-commitment ahead of TOP. Yeah, so I hope that answered the question. Okay, in terms of ROIs and rents, is this tracking your initial expectation? I think in terms of the rent, it is within our feasibility studies. So I think it is in line with what we are expecting. Okay, thank you. That's all right. Okay, next we have Brendan. Yeah, hi, can you hear me? Yes, Brendan.

Yeah, hi, yeah, hi, Jin. I'm still gonna talk a bit about your China again, right? Can you share about the reversion and occupancy split by tier one in tier two cities for this quarter as well as the guidance going forward by the tiers? Derek, James here. So, reversion rate for 4Q, tier one was 0.3% positive, tier two was negative 10.8. So this compared with 3Q was tier one was negative 3.1, and tier two was negative 10.5. And the guidance going forward, like I mentioned before, it should be, you know, over China, we should still see hovering around this minus 9% or so, negative reversion. Bear in mind that the market vacancy in places like Shanghai has gone up quite a bit with new completions in places like Songjiang and Qingpu and Jiating

4Q last year and 1Q this year. And so markets in the north of China, like around Beijing and Tianjin, their vacancy rate is close to 25 and above, 25 to 28% in the north. I thought this market demand is still favored, right? So market vacancy is in a low single digit. But for you guys, we should continue to see that 90% range maintainer as an outperforming market. Is it correct to say that? That's all. In terms of occupancy. Yes. Okay, okay, can I get, and my second question is more on the export markets, right? Yeah, I know the clarity on that is much better given what you said, but have you been able to track for your tenants, right? How much of them actually source their materials and any of their parts of the products from the US instead of just exporting?

Are you able to share anything with that? Yeah, we had tried to engage some of the bigger tenants particularly in two of our properties located in the port and airport that is Lingkang and Oluo. Of course, most of these tenants are doing global trade and they are doing import export and they are logistics companies and distributors. So yes, majority of them are doing global kind of trade in and out. And specifically to your question, important from US, yes, there was one particular tenant possibly is impacted, but it's not a major tenant. So this is sourcing from the US. So in the big picture, you know, MRT portfolio sourcing from the US is limited at the moment exposure for imports. So the majority of them are still producing locally

or even sourcing from Malaysia. Okay, okay, okay. Yeah, that's all for me. Thanks a lot. Okay, next is Jonathan. I think that'll be last. Yeah, good morning and thank you for, for thank you. First question relates to 5A Jukun Circle. Could you share how much of the development costs are really paid and then how much more to be paid in FY26? And in your slide, you've given GFA and you give us the NLA for the property. A second question relates to the occupancy. You mentioned three countries where you have transitional vacancy and a really backfill. Sorry, I miss the name of the three country. And can you share the source of demand for backfilling

in the three sectors where the new tenants came from? Thank you. Okay, I think the last question and the second last question. So the backfilling is in countries like in Singapore and Vietnam, all right? These are local companies, all right? And the other one, the other country, you asked me if I need one more country, which I mentioned, Singapore, Vietnam and Malaysia.

Yes, Malaysia, there was a date study. So we are in the process of negotiating one of the prospects to procure the space in one queue. So these are all local companies. So this in relation to your last question. So with regards to FY26, in terms of the NLA, you're asking, so NLA is about 850,000 square feet compared to the GFA is 887,000 square feet. And how much have you paid? Yeah. So as of the first March, it's about 94% completed.

But I think in terms of payment, after picking up the retention, maybe about 5%. 8, 5. Yes, payment. So the next year is 15%. Okay, then next year is 15%. Yes, 10 to 15%, yes. About that. Okay, thank you. Thank you very much. Okay. Oh, Krishna. Hey, thank you very much for taking the question. Okay, that's the last question. You have to move off of that. We'll just, just a couple of questions. First of all, you already used to give that constant currency change in revenue in PI. This time you haven't given. So how should we see like FX not a big kind of impact this time around and future as well? That's the first question.

Yeah, you used to give the constant currency revenue on NPI. A constant currency, the income on NPI. Okay, we will look for it. Can you, we have a second question? Yeah, the second one is on the, on the on the Singapore dollar base rates that has fallen quite significantly. But I don't think you commented of any kind of sort of advantage from that in terms of financing or swapping it into other currencies and stuff. So is it like the margins are expanded or are you not kind of getting any benefit from that? Okay, so I mean, if you look at the SORA, some of the current interest runs on the currency actually pull back specifically on the SORA. I bet would explain some of the savings that we had on 4Q versus 3Q. If you look at 4Q versus 3Q results, foreign funds actually come off slightly, mainly because of the lower horror that we are in pre-benefited form in 4Q itself. So yes, you're right.

Moving forward, if SORA continues to come off, we should have some benefit but there are offsetting factors as well. Like I mentioned earlier- What are the offsetting factors? So I mentioned earlier, so in terms of our unhatched loans, about 50% is in JPY and 50% is in SORA. JPY, we expect that to increase. So that may be offsetted by some of the SORA, lower SORA. So also we can tell that the floating rates move across the different currencies. Okay, yeah. So I mean, we can take a top line on the constant currency one. And I just have a small one. In the slide that you show your exposure mix where you have given 85% domestic consumption, there is some segment called others, which is 8%. So I just happened to check the earlier years as well. This used to be something around 2%.

What, I mean, why sort of have the thing, what does it present if you can give some color? This others, 8% on slide 15. We'll come back to you offline as well. Can we do that? We need to rest our through an event. Yeah. Okay. Okay, thank you. Thank you. We are glad to cover all the questions, including those that are online, from the online audience. Thanks very much for joining this call. Any other follow up questions, please send through by email or for me. Thank you, bye.