4Q & Full Year FY25/26 Financial Results Briefing

Hi, good afternoon. Welcome to the fourth quarter results briefing for the financial year and the March 2026. This is Maple Tree.G6 Trust. I will hand over the session to Charmaine Lam. This meeting is being recorded. Sorry about that. To kick off the presentation. Charmaine, please. Hi. Thank you for taking the time to attend our briefing. I'll take you guys through the four key results as well as the key highlights before passing on to the team. The rest of the team is through the rest of the slides. So for fourth quarter, 25-26, for this quarter, our gross revenue and MPI are higher by about 1.7% and 0.9% year on year. Sorry, lower by 1.7% and 0.9% year on year, mainly because of absence of contribution from our divested asset as well as FX. In terms of DPU, we are declaring 1.8, 1.9 cents. This is 7% lower year on year. If we are to strip

out the divestment gains from the DPU from last year, DPU from operations, at 1.8, 1.9 cents is actually 0.9% higher year on year and 0.2% higher quarter on quarter. In terms of portfolio occupancy, we're slightly higher, 96.9% versus 96.4% last quarter. Portfolio rental reversion is a positive 3.3%. In order to exclude China, that's a positive 4.2%. Rail stable at 2.5 years. In terms of capital management, aggregate leverage is slightly lower, 40.6%. We manage to keep our interest cost stable at 2.6%. About 83% of our total debt has been hedged into six rates and 75% of our income for the next 12 months have been hedged into $6.

Please, we move on to 4Q FY25, 26 versus 4Q last year's results. Revenue is 1.7% lower. This is mainly due to the absence of contribution from divested asset. We continue to face currency weakness in certain currencies. Although this is partly offset by appreciation of Malaysian bring-in as well as AUD dollars, the currency impact is also partly mitigated through hedging.

The lower cross revenue is actually mitigated by contribution from our completed redevelopment of Napotry-Jukon Logistic Hubs, that's our AEI, and higher contribution from Singapore, Japan, and Vietnam offset by lower contribution from China. We remain conscious of our cost of containment and for property expenses, we are slightly lower, 6.3% lower. Although this is offset by contribution from Napotry-Jukon Logistic Hubs. If we have to exclude the impact of divestment and FX, cross revenue and MPI would have increased by 3.6 million and 4.1 million. In terms of borrowing costs, slightly lower, 3% lower, mainly due to lower base rates on our SORA rates. Interest savings from repayment of loans with divestment proceeds, partly offset by interest incurred on loan drawn from forward our AEI that's recognized in the P&L post-TOP,

as well as replacement of hedges at higher costs and higher rates for JPY loans. All in, DI to unit holders is 6.1% lower and our available DTU is 7% lower, 1.819 cents versus 1.955 cents. But if we are to strip out the DG as mentioned earlier, it's 1.819 cents versus 1.803 cents, that's 0.9% higher. 12 months this year versus 12 months last year, revenue and MPI both lower mainly for the same reasons as PORQ, absence of contribution from divested properties, regional currency weakness, which is mitigated with hedging, as well as mitigated by full clear contribution from acquisitions in the last financial year, as well as contribution from our AEI, higher contribution from Singapore, Japan, Vietnam, Malaysia and Hong Kong, offset by lower

contribution from China and South Korea. Excluding the impact of divestments and PORQs, gross revenue and MTI would have increased by 6.1 million and 5.4 million. Similarly, gross revenue borrowing cost is lower, mainly due to lower base rate on unhedged thing dollar as well as Hong Kong dollar loans. Interest savings from repayment of loans is by investment proceeds, partly offset by interest in cut on loan drawn for the AEI and capital expenditure, as well as replacement hedges at higher cost and higher base rate for VPI loans.

Accordingly, our DI to unit holders is 8.9% lower. If we are to strip out the DG component, adjusted DI to unit holders would exceed 2.5% lower and adjusted DTU from operations that you see. It's actually 3.4% lower, 7.262 for the full year versus 7.519 cents last year. Moving on to quarter and quarter results, gross revenue is slightly lower mainly due to currency weaknesses, as well as absence of contribution from divested properties mitigated by higher contribution from our AEI JU code. Property expenses increased slightly due to higher repair maintenance expenses. All in NPI is slightly lower by 0.4%. Borrowing costs, slightly lower by 1.7%, mainly due to a shorter quarter being a shorter quarter than 3Q.

Amount distributable to unit holders, higher by 0.3%, resulting in a higher DTU of 0.2%, which is 1.819 cents versus 1.816 cents. Moving on to the balance sheet, you will see our investment properties higher than last quarter, mainly due to two key reasons. One would be the completion of our India acquisition of about $56 million that's completed on the 27th of March. We also have some valuation gains which resulted in the higher investment properties. I think Manliang will take you through the valuation assumptions later. Total debt is higher due to additional debts taken to fund the India acquisition. Hardly offset by lower net translated loans due to weaker JPY, $1.1 and US dollar

gains the same dollars. Resultantly, NAB is stable at $1.22, same as last quarter.

Leveraged for 3.6% and managed to keep our interest cost at 2.6% for this quarter.

Moving on to our debt maturity profile. Our debt maturity profile remains well staggered with a healthy average debt duration of 3.6 years. We have about 2% of our debt due that's due for refinancing the new financial year. We have a proficient committed credit facility of $700 million on hand to refinance debt due in the new financial year. In terms of the interest rate and forex management, we remain disciplined with our hedging policies. So about 83% of our total debt is hedged or drawn in fixed rate. Of the fixed rate component, about $700 million of different refinancing the new financial year. So we expect to replace this at higher cost. Together with the macro uncertainty and risk of higher rates, we expect our interest cost in the new financial year to be at 27 to 20, sorry 2.7% to about 2.8%. In terms of forex, we will continue

to hedge our FX. But as of this quarter, we have about 75% of our income for the next 12 months that's been hedged into same dollars or are divided into same dollars. Now, pass the thing over to James for portfolio update. Thanks, Xamu. Our now go to the portfolio update. In terms of the portfolio, we will be able to afford to. We will have markets continue to account for 10% of our portfolio by AUM and revenue. There's only a slight increase in acquisition in Mumbai. But that is fine. And based of close to 1000 customers, we're handling mainly consumer goods. The majority of the tenants, about 85% of our revenue are serving the monthly

consumption. And only about 50% of revenue are serving the export. At least to announce that in 4Q, we have a set of strong operational results. We have a total increase of 5% percentage points to 96.9% in 4Q. Can you speak closer to the mic, please? Can you just speak closer to the mic? Thank you. So five of our energy countries registered positive occupancy increases while the other form maintained the full occupancy in 4Q. For rent reversions, we posted 3.3% positive inventory version as compared to 1.1% in 3Q. Excluding China, it was 4.2%.

The least expiry for F-26 went up to 36% by NLA. In 3Q, it was 32.8%. This was contributed mainly from the pieces from China that we removed and replaced in 4Q, which had a real of less than one year. Overall, it will remain at 2.5 years by NLA. As of the 31st of March, our top 10 tenants remain stable, contributing 19.7% of our overall gross revenue. Now we'll ask Man Yong-fu. Thanks, James. First, we talked about the credit acquisition. At the last one, we have announced a successful completion of an acquisition of a freehold grid A warehouse in B1D, Mumbai.

The purchase price is about 15 million. It is 100% occupied to two of the Indian leading listed online e-commerce companies. It's a long way of 3.9 years. It's the newly completed in August 25 with more than a grade A specs. Moving on, the next slide, as you all know, we have been actively doing recycling and selective divestments. So for the earlier last year in FY2526, we have actually managed to divest the six assets at an average premium to a ratio of 20%. The portfolio valuation, as you can see from the chart here, our latest valuation is about $13.3 is about 1.6% lower than last year of 13.3B. This is due to a few reasons. First, we have divested, like I mentioned earlier, we have divested six properties last year. Then,

of course, due to the strength of the single dollar, there's a currency loss of about $300 million. This is offset by a few positives. First, we have a positive net value gain of about $47.8 million. We have also completed our FY22 project and of course the acquisition of the new asset I mentioned earlier in B1D, Mumbai, India. So a bit of color on this, fair value gain of $47.8 million. Most of the countries actually, we have seen fair value gain except for China and Hong Kong, where the market is still in transition and recovery phase. Next slide. I think the last slide is really what we usually presented. Okay, now I just quickly take you through a couple of slides on the sustainability front, what are the progress that we have made.

Please do say that we've hit all the major KPIs for the year. Also, the self-funded capacity was up 24% to 58.9 megawatt peak against our target of 55. As for the total solar, because of a rather strong ramp up in China, it increased 5% year-on-year to now 131.8 megawatt peak. With that, we are pleased to say that we have now three countries that have achieved neutralized scope two carbon emissions, they being Malaysia, China, as well as Hong Kong. Then for green buildings, similarly, our target was to achieve 60% green certified space by GFA, and we hit 66%. For green leaves, likewise, we have made good progress increasing from 51% to now 64%.

As for green financing, we achieved or rather we secured 300 million of new green financing during the year, and that contributed to about 28% of our total borrowings. So that's a quick sum up. I'll now hand over to Jean to wrap up. Okay, thank you all. I think I mean all the terrific greens and the global uncertainty, right? MLT, as you've seen from the presentation, done by Charmaine and James, we have posted very resilient operational results. You have seen high occupancy, and then you have also seen us achieving occupancy rate that is above the industry average. For example, like China, this quarter we have got 94.2, and then industry average is still primary around the 80s region. And also reversions higher this quarter with China as such posting a negative low single digit, but that has slightly moderated

from last quarter. And I think importantly, DPU for operations have shown a stability for conductivity for quarter. Right, I think next is you asked me on the Middle East conflict side, which is resulting in a higher oil prices. We're not seeing any significant impact in terms of the MLT operating costs as the net electricity cost is currently eligible, less than about 2% of our property expenses. And then in terms of leasing demand, it has remained stable so far. We have not seen any meaningful evidence of pullback in demand or any delay in digital making for now. But having said that, I think tenants with the higher cost pressures, they are likely to face some weaker operating margins. So from what we have gathered so far, based on our interactions,

I think tenants are currently focusing on optimizing the energy usage, enhancing the operational efficiency and passing down the cost to their customers where possible. But having said so, I think with the Middle East crisis evolving, we remain closely monitoring for any second order effects that could actually influence the business and consumer side and the demand. Well, I think a lot of you are probably waiting for the outlook on the China. So I think in terms of China, what we are seeing now, it appears that there are signs of stabilizing, bottoming out. And we expect that the negative run reversion to continue to narrow. But I think it will take some time to turn to zero. If we look at some of the recent news,

I think incrementally, it's more positive. And hopefully, it will spur the domestic consumption. Look at the China-Tuan crisis. It has reported some of this growth after 10 months of decline. The PPI turned positive last month, reversing three years of decline. And I think in terms of the current oil shock, China seems to have gathered it pretty well. I think largely due to impact to their diversification of their energy mix, as well as they have also increased their focus on green energy. And in terms of the market supply and demand by region, it remains that the west and central China seems to have bottomed. In fact, I think for some of the lower tier cities like Huoyang, Kuoming, we are seeing stabilization in some higher-run signs. And in terms of the

south, there is going to be a rising supply, but we have limited exposure, only to assets, and they are still having high occupancy. In terms of region, north and east China, greater Shanghai, it is still a concern due to the high vacancy. But I think in terms of the expiry profile in the coming year, we have very little coming up from the north. But we have more coming up from the east, but we think that in terms of the absorption, we expect the east region to recover faster due to the higher consumption power. So I think that's the outlook on China. For Hong Kong, in terms of the leasing sentiment, it remains conscious. But if you look at the retail sales, it seems to have bottomed up. Residential housing also seems to be on the recovery mode. But in terms of the supply,

we have seen that the market vacancy is increasing. So we already started engaging our tenants for the upcoming expiry. The early discussion is, most likely they will renew, but I think the rentals for the interest of outlook will be probably very modest time of the version outlook. So I think that sums up some of the key market outlook that I had. Maybe I think I'll leave it for Q&A. Okay, we'll now start the floor for Q&A. Can we have Mervin?

Hi, Gene and Gene. Thanks for calling. Congrats on the results. Notice the adjusted operating debut first year and year increase in over three years. And as you mentioned, four consecutive quarter of Q&A improvement. So we're very excited by that. This is on China. I think you seem to be pushing out the time period when the reverses head towards zero. I think previously guarded fourth quarter or first quarter 27, the year with time when that zero number may appear. Second question I have is, any updates in terms of investing some of your China properties to your sponsors will be fund, as a sponsor, raise money for that will be fund and timing of these investments in front of. Thanks. Okay, I think on the when it was fund neutral zone, I think we're probably looking at

another three to four quarters in terms of sending neutral for the reverses in China. And then your next question on the China divestment zone. So far, we have done, based on the one be where we identified, we have done about two hundred seventy million today in the financial year, and in the pipeline that we are looking at, we are targeting about two hundred to three hundred. And that includes the funding that we are currently working on. There has been some delay. And right now we are looking at two q of the of the new financial year to actually find some binding documents, primarily because there has been some change in the LP

partner and then the new replacement LP partner is undergoing due diligence at the moment. So I think hopefully I think by the second quarter we can look at China divestment coming on the stream. Okay, sounds good. Let others ask questions. Okay, Derek.

Hi, good evening. Can you hear me? Yes, Derek. Hey, hi, hi, Jean and team. Congrats once again on having a stable set of results. I'm looking forward to that. My first question is on your reversion. I noticed that Hong Kong is also taping off. I think you're guiding that it's it will like to flatten out, but just wondering whether if you look forward to the next financial year, will Hong Kong turn negative or is any other country that you think we should be a bit more cautious about at this moment? Yeah, that's my first question. Okay. Yeah, Derek. So I think in terms of reversions for now, the negative reversions will be pertaining just to China. For Hong Kong, we're not seeing negative reversions at this point in time or the new financial year. It is most likely a very modest kind of a reversions that maybe 0.5% kind of region that we are looking at. I see. Yeah, I mean, rest of the market remains good.

Okay. Okay. Got it. Then my next question is on your asset recycling, right? You mentioned it was a sell, sorry, two to three hundred million. How about acquisitions? Could you give us a sense on your acquisition strategy for the next financial year? Okay, I think for acquisition, I think right now we, the other markets are still from the countries that are beneficiaries of the supply chain diversification. So we are looking at Vietnam, Malaysia, India. So that is still the strategy that we are looking at to actually increase our presence in this structurally growing market. At the same time, I think in terms of Singapore, we are also looking at some opportunities in Singapore, but it still remains pretty opportunistic. And for Singapore, if you recall, we have so far been focusing more on the organic growth in terms of after enhancement

initiative. So we've just completed our fourth token last year. And right now we are planning for our first one in Singapore, and that's going to come up in the east of Singapore. So it is something that we are looking at organically to grow the Singapore portfolio. Then for Korea and Australia, I think in terms of the use spread, it is very tight. I think particularly for Australia, I think it is very difficult for us to do any equity acquisitions. And then we are looking at RBA, looking at, you know, a high inflation with planning for a rate high. Korea is something that we are still exploring, but it depends on how strong is the efficiency. And for Japan, Japan, though the interest rate outlook is on the rising trend, but if there are opportunities that show the organic growth or more better rent,

reversion or built-in escalation, organic profiling, we are open to a good job. Okay, got it. Sorry, just, yeah, thank you very much. Sorry, just last one, right. So interest cost, right? I think Xiamen has done a great job. 2.6% is flat. So how much more can she hold it at this level? Or should we be pricing in some increase? Yes, you should be pricing some increase, but thank you for, yeah, for, yeah, your, I don't want to thank you for emphasizing that I've been able to keep it at 2.6%. Okay, I guided earlier that we have about, I think that on the interest cost front, we are facing higher interest costs in a lot of the currencies. So a lot of, we have about 700 million of hedges that will be falling off. So this will have to be replaced. So included in this 700 JPYs that are locked in at 0.3% base rate or 1.7% AUDIT dollar base rate. So all these

would have to be replaced. We'll see how we manage the portfolio. We will tweak the currencies around a little and target to keep it at about between 2.7% to 2.8%. But yes, it will go in and we are forecasting to grow in the new financial year. Okay, got it. That's it for me. Right. Thank you. Thank you. Okay. Next we have Rachel. Let's go ahead. Hi, good evening. Can you hear me well? Yes, we can hear clearly. Okay. Yes, great. Thank you. Thanks for the presentation and congrats on the good to see the growth in DPU. A few questions from me. I think firstly, I think your reversions, especially for Singapore, has been quite strong. So any guidance on your reversions for the coming year? Rachel, we registered quite a high and good reversions because of the supply for 3D warehouses and we had a few expiries which

was renewed in our Grandpa warehouses in Bioneer, the Bioneer, and 6 Bioneer, Duong, Lockhart and Benign. So that helped us to push out the reversions. So in the next few quarters, beginning on the reverse, beginning by at least expiries in the various quarters and whether they are in older properties or in Grandpa properties, we are still very confident in between the 2D 3D. Okay, sounds good. All right. Then maybe my next question is on the Maple Tree Juku logistics. Yeah, very good that you are fully leased out. But how much has been recognized, of the income has been recognized in fourth quarter and how should we look at in terms of rental income coming through in FY27? Then we will see the full income coming through. We will

see the full contribution coming in in the second half of the new financial year. Okay, fourth quarter, what's very minimal is it? Fourth quarter, we are looking at about three million, yeah, three million.

Okay, then maybe just to follow up, right? I mean, if you're expecting some increase in interest expense, do you think that the rental income from this Maple Tree Juku can offset the increasing interest expense? In terms of the interest expense that Chamin has mentioned, 2.7, 2.8, yeah, we should be able to solve that. Yes, if you're looking at the additional income, the full year contribution from Juku itself would be sufficient to offset the higher interest cost. Okay, sounds very good. Okay, all right, that's all for me. Thank you. Okay, next we have Tan-Sue, let's go ahead. Hi, first question is on the lease expiry of 36%. How much is China? In the earlier rent reversion guidance, 3 to 5% has already taken into consideration China at zero to start negative. Tan-Sue, for 36% of these expiries falling next

year, China is contributing about 55% of that. Right, and on the rent reversion, it's a portfolio basis, right, including China? The 3.3% includes China. Sorry, I mean the reversion guidance of 3 to 5% for next year. For Singapore. For Singapore. Right, so the guidance for this China, it is actually still in the low negative single digit territory for China. Okay, do you have a portfolio reversion guidance?

No, we typically don't do that because as you can see, it's nine markets. So, yeah. Okay, then on the divestment, right, how are you thinking about redeployment of proceeds? Is it to acquisition, debt repayment, and also on PUPs, any plans to pare it down? This expiry in November this year, right? Yeah, I think if you look at what we have done last financial year, our recycler proceeds have channeled to the AEI. There was a 5A to CUN AEI as well, and we channeled into acquisition. So I think looking ahead, I mean, while we are waiting out for any acquisitions, meanwhile, definitely the recycler proceeds at first would be go down to pare down the debt from recycler proceeds. That would be the first thing that we would do,

and thereafter, you know, we will see in terms of the opportunities that we have to rechannel our funds. So what we have done last year is to the India asset as well as to the AEI. So we would look at the similar approach. On the PUPs, maybe Shambhain? I think that doesn't proceed. Other than that, it also depends on the timing of the divestment proceeds. Yes, we have a batch of PUPs that are coming to you for refinancing. Depending on our

leverage at the point in time, we could look at refinancing with PUPs, or a mix of PUPs, and debt. Okay, thank you. Okay, next we have Brandon. Just go ahead. Hey, Yifeng. Just want to talk a bit on the lease expiry profile here, right? Could you sort of share with us the split by region for this 20% of expiries in China for FY27? Okay, I think for FY, in the new FY in terms of the expiry by region, the majority is coming out from the east, followed by central, and then north. So east, we are looking at about 45% out of the 20% view. Central, we are looking at about 28%.

North, about 16%. Then for west and east, for west and south, 4% and 7%.

That's the breakdown in terms of the lease expiry profile for the new financial year in China. And what's the rough retention rate that you're looking at? Right now, if we look at so far historically, we have about 90% success rate. If you look at for lease expiry, for the past two, three years, our expiry has been heating about 30%, and we have been managed to, we managed to retain them. So that's why in terms of occupancy, you have seen that it's still maintaining very high. So in that sense, we have been able to achieve a high success rate. That's why our occupancy remain pretty resilient.

Got it. Okay. And also, I want to go back to your comment on acquisitions in those supply chain diversification countries like Malaysia, Vietnam, India, right? Is it correct to say that this will be mostly coming from your sponsor pipeline? And a follow up question is, if you look at the way the currencies in these places are going, right, especially for India, even though you get a pretty strong reversion, but they're all eaten up by the depreciation in the forex, right? Why do you still want to look at this market? Okay. So I think in terms of the industry markets, is it because of the sponsor? I think it's also because where if you look at the supply of great assets in these three markets, it is generally a little bit more limited in terms of the model spec. Okay. Opportunistically, there may be some coming up from the party, but it has been pretty

on the smaller scale. So in terms of access to sponsor pipeline coming up from the history, we have the access to second. And to your question on this forex, right? I think in terms of where possible, we will adopt the natural hedging by taking on the onshore loan. So just to give an example, in the recent India acquisition, what we have done is we have increased the natural hedge by taking on a 40% loan on onshore. So that helps to mitigate in terms of some of the forex movement. And then where possible, I think from the income tax perspective, where the hedging costs mix and I think we will try to also lock in some to actually kind of mitigate the forex risk. And I think if we look at more on the deal attributes, right? I think

in this case, in terms of the markets where we are looking at structural growth, these are the three markets that are showing potential, giving higher growth, having a higher GDP, you know, compared to the rest of the Asia. And particularly, if we look at this India acquisition, we are looking at some inherent attributes that cannot be replaced. We are looking at an asset that is in a very good location, prime logistic corridor, and it's a free-home asset. I mean, admittedly, in terms of FX, if we look at the last 12 months, indeed, India will be has been very volatile, I think due to the global hit means. But if we take a more medium to longer term outlook, shipping out the 12 months impact, right, taking a five to 10 year kind of depreciation trend outlook, we are looking at about 3.5% more on the medium to longer term horizon.

And if you look at the rental growth that is in this market, like again, I picked an example, the recent one that we did in Mumbai, we are looking at about 5% rental growth. And I think in terms of underlying renters compared to where we are, where some of the newer tenants are signing, we are actually, you know, there is actually a 10% kind of reversion opportunity. Currently, it's about 10% below the market rent, because one of the tenants there recently expanded into a nearby warehouse where they are signing rent, 10% above what they have locked in this asset. So I think that these are, you know, that there are some trade offs indeed, but I think if you look at more on the medium to longer term horizon, they present some growth opportunities in that sense.

Yes, yes. Okay, thanks so much. I'll go on to the next one. Thank you. Okay. All right.

Next we have Derek Chang. Oh, Joy. Joy. Hey, can you hear me?

Thanks. Just a quick question. First, can you share in terms of the hedge FX rate for this FY and also what can we expect, you know, for the hedge FX for next FY? Sorry, do you mean, what they hedge at or what the hedge ratio? Yeah, so can you share that? No, no. What are the rate that you are hedged at for your key currency for FY 25, 26 and what can we expect for 26, 27? Okay.

Should be for next 12 months, right? 25, 26, over.

For the next 12 months, if you can share what was for the last 12 months, that will also be very helpful for us. Okay. We'll come back to you. Let's take a look at what we have. What does that have? Do you have another question? Okay. Yeah. The second question, can we confirm earlier you mentioned about the China fund? Did you mention that there's a change of LP? Yes. Can you give the background of the LP that decided to drop out and the LP that are currently doing duty? I think it's a pretty sensitive info. I think what we are able to share at this point in time is that we have found a replacement LP and right now in duty and we are progressing hopefully towards finding some binding in second quarter of the new financial year. Okay, cool. That's helpful. That's all from me. Okay. Next we have a question from Gail.

Yeah, thanks. Hi, I'm Gail. Congrats on the result. Just wanted to check. I mean, you guys have so many things going on, you know, and then potentially higher interest rates. Just wondering in terms of FY26, 27, where should we be looking? You know, your DPU, should we be expecting some form of growth or should we be like this? Okay, Dail. Okay. Golden question. Okay. Not sure. Not sure if you can share. I'm sure. Sure. Okay. I think looking at what we have achieved in the past four quarters, the base case outlook that we are looking at is also around the 1.8 cents per quarter. This is bearing any major economic downturn as well as significant movements in terms of the foreracks as well as the interest rates. So, I mean, we mentioned earlier in terms of there will be organic growth from countries like Singapore and then the three smaller markets, Vietnam, Indonesia.

The Drukun AI will also be contributing in the second half. And with that, that should help to offset the higher interest costs that Shamim has guided earlier, you know, the 2%, 2.8. So, net-net, we are looking at a pretty flat DPU. Okay. Okay. Fair enough. Okay. And my second question is, I think earlier you did share that, you know, with all this, you know, rising oil prices, rising utility, you guys are quite insulated. But not sure if, you know, the second order impact, I mean, because in logistics, I'm assuming freighting costs would be a major thing for your tenants, right? So, are you seeing any specific group of tenants or any specific regions that are at risk of, you know, higher cost or being out of business? Okay. I think from the 3PL tenants, right, what they are trying to do, the larger ones, they are trying to platform the, in terms of the higher air shipping costs via imposing

some fuels to charge. And also some of the larger tenants, they are able to platform some of the costs to their end customers because they, based on their contractual agreements, but I think what will probably have a bit of suffer is probably the smaller ones that may phase the margin squeeze from their operating costs. So, that's on the 3PLs. And I think we do have a very small number where they are important and next quarter of full product. They are also trying to pass on to their end customers. So, I think right now, where possible, they are trying to pass down. But I think the other smaller group, which we are probably also monitoring closely, it's those maybe our cost for rich tenants, although we don't have a lot, but because they are typically a high consumption user, so that's something that we will remain watchful. Okay. Okay. And then probably now it's still a bit too early right to tell.

Yes. Yeah. Okay. Got it. Okay. Okay. Got it. Got it. Thank you. Thank you. Okay. Next, we have Vijay. Let's go ahead. Yeah. Hi. Good evening. Two questions from me. Firstly, in terms of India acquisition, would you be able to provide the NPI yield for that? What do you say? NPI yield is 7%. Okay. Because I mentioned, it's about 10% below market. So, if we look at the current market, it's probably 7.7% from a rich. I'm sorry. You bought that 10%? Okay. Okay. Market ends needs to be 7.7%. Yes. Because right now the renter that's locked in, it is 10% below market in terms of the rent.

That question is in terms of your, some of your shorter lease assets in Singapore, the 5% of your portfolio, which is below 20 years, have you been able to engage the authorities in India of this? And what should we expect for some of these leads, which the land leads are coming closer to below 20 years and closer to 10 year marks? Okay. I think for those that are with short land leads, we have a web possible for assets where we for redevelopment potential, we have been trying to engage the authorities for some potential lease extension. So, some of the assets that are under the 10 year mark, we are still talking with the authorities. So, what we are working on is potentially, we need to find, we need to secure or find a good entertainment in terms of their business plan and financial projections as we discussed with the authorities. So, where possible, we will try to have that land lease extension.

We have also tried to divest some of the shorter land lease, but because of the nature, it is a bit more opportunistic and it depends on the profile of the users that's looking at, because typically, these assets that we have in Singapore, these are mostly pertaining to Singapore, the short land lease are very small, older type of generation kind of industrial asset. So, we are looking at which kind, we are still sourcing for tenants or buyers that actually find such a facility suitable for their business operation. Yeah. So, Vijay, I hope that answers your question. Okay. So, as long as you have a tenant backing, I think authorities are ready to extend the lease. If there is a good business plan, they remain prepared, I mean provided that the region or the

vicinity that we are looking at is not subject to the master redevelopment planning. Okay. Got it. Thank you. That's all I have. Hey, Brandon, you have a follow-on question, right? Hey, yeah. I just wanted to go back to the divestments part, right? Can I just confirm that your FY27 target divestment amount is $200 to $200 million? Yes. And over the past six months, your divestment momentum seems to have significantly slowed. Is it because you were spending all your time on China and that got delayed? Or is it because the environment has just become tougher itself? No, I think what we have wanted was the China divestment. So, that has been delayed. So, in that sense, you are right, is that we were working on the China piece. But whether the

buyer sentiment has died down, I think no, because if we focus on the China markets, in fact, we still continue to see interest from buyers. It is just that there is a pricing disparity that we are looking at right now. In terms of interest level, in fact, we have a bit more compared to last year. But the pricing disparity remains the same. But having said that, there are some which are a bit looking at a bit narrower price gap. I think that's something that we are also exploring. And the goal is to sell at both values? Yes. Okay. And just to close off the loop on your diversion guidance, can you just share with us what we could see for Japan, Korea, Malaysia, for FY27? Yeah, I think James, you want to...

So, for Japan, your OQ, we recorded 6.2% and it seemed very high. Coming from two leasters, one of them was a long, under-leaser, you know, for five years. So, it was market to market for the one. And so, looking at this trend, for the next few quarters, there could be a couple of leasers that we see could be reviewed from the lea. So, the guidance that we can invite for the next two quarters could be between 3 to 5%. Korea could be closer to 3. Okay, okay.

Yes, we think the market is picking up. Okay, okay. Can you say one more thing on the east redevelopment that you just mentioned, right? Can I just confirm that it's the two Chinese South Plus which you buy and could you give us some absolute value in terms of timeline, where do you kind of start this? In terms of the timeline, we are looking at next year, for the second half of the year. Yeah, we don't know. Yeah. And in terms of the quantum, it is about

200 range for now. Yeah, we are still fine tuning the numbers, but I think in terms of the implementation timeline, the second half of next year. Got it. Okay. Hey, thank you so much. Thank you so much. Okay. Hi, Derek Chang. Please go ahead. Hi. Thanks. Jean, I think you're alluding to the second order impact amongst your tenants. Could you break that down across the markets? Because obviously, I think Southeast Asia, India would be more vulnerable and maybe even Japan. So any thoughts on those markets? And maybe Singapore as well. I think right now, it's more the what we are looking at, it's more the tenant sector. So I think I mentioned earlier, the instance of the 3PL, the larger ones and the smaller ones, the level of no margin streets that they will face. So more from the tenant perspective that we are looking at. But if you look at on the country level, I think right now, I think on the

government level, some of the countries like China, Vietnam, Malaysia, they are either having some form of a fewer subsidy or cutting in terms of their import of fewer levy to kind of quotient debt. So I think right now, it's still a bit too early for us to quantify in terms of their leasing demand, but I think that's what we are seeing right now. Okay. And what about Singapore? What is anything you can share? In terms of the genius share, I think... Sorry, James, you're a bit faint. Yeah, sorry. Like what Jean has shared with me, the larger logistics companies are definitely more muscle to part on the increased cost of transportation at least. With transportation cost typically 60 to 70% of the fixed cost, the balance could be warehousing and some packaging

costs, etc. So 50, 70% of the based transportation cost for PPLs are able to be passed on by most of them to search charges for transportation. But again, we also receive feedback that some of them may take time to negotiate, right? Because some of the contracts are fixed for say two, three years. By and large, the bigger boys are able to pass on the cost to their customers, right? It's the smaller boys that have less resources and less buffer to negotiate, right? So the margins would definitely be decreased. Okay. Sorry, James, go ahead. The other thing that we found observation there's no significant increase in demand for short term space

from the shipping disruptions, whether it's for inbound or outbound, to the Middle East. So we didn't see the so-called spike in short term demand firing short term spaces. So there's one observation that we...

So no, Justin, just in case, Timon. Okay. That's all I have. Thank you. Okay. Rachel. Hey, hi. Just some follow up. Would you mention the AEI is second half of next year? This is financial year, is it? Financial year, calendar year. Oh, sorry, it's 2028.

Next year, sorry. Yeah, yeah, sorry, sorry. Yes, okay, correct. Okay. Then my next question is on Hong Kong divestment. Is the Hong Kong asset divestment included in the 200 and 300 million and any update on potential Hong Kong investment? In terms of Hong Kong divestment, for the part of the 200 to 300, we are still trying to divest one, more mid-sized one, but that one, we are still working on it, but I think we are also having some very small shorter-tided units that potentially may have some interest. So while we are trying to actually sell the larger ones, but at the same time, we are seeing some interest on our shortest units, which are very, very small units. Yeah. So Rachel, I hope that answered the question.

Yeah, yeah. Okay. And then one last one on China. The reversion, I think last time you guided that you will be even soon, but didn't, right? Is it because the Ease market is worsening a little bit? Are you seeing a bit more supply coming through? No, I think in terms of the North and East, you know, the vacancy remains high. So that's why, and then also with the high proportion of our expiry coming out from Ease, so we remain a bit cautious and watchful. So we will want to see how our expiry is interferon negotiation are panning out for the first quarter, because right now, in terms of the renewal cycle, it is getting very, very short. In terms of short leases, quite a number of our China tenants are still doing pretty short leases. So in that sense, the disability

on the events that we are signing, it is a very dynamic. Understand. Any improvement in demand at all or still the same? Absorption really we see in the East has improved. There is still a large supply, but the East China, the front tenants that we see, because of the higher consumption power, the absorption is quite pretty strong. Yeah, I think if I can point out some color on the improvement in occupancy, fourth quarter versus three quarters, the improvements are largely came from the East, Central and West region. Yeah, so that is the sign that we saw in the fourth quarter. So there are improvement of occupancy coming up on these three regions. Okay. All right. Thank you so much. Thanks for the color. Hi, Andy, just go ahead. Hi, Renim Jin and Tim. In terms of valuations, can I just get some clarification? For example,

your China revile was only down by about 1.5%, and rental reversions was more negative throughout the year. Hong Kong as well, it was marked down by your reversions, was generally slightly positive. Then for Vietnam, strong up this, cat rates look like the same. So was it driven mostly by rental increases, assumptions, and overall, do you expect some cat rate expansion for this new financial year, especially markets like Australia, for example? In terms of Vietnam, Iran, a bit is largely coming up from the organic growth in terms of the rental growth. And then in terms of Hong Kong, it is actually coming out from some expansion that we are looking at. Some cat rate expansion happening in Hong Kong. So for this set of numbers in terms of expansion, we are seeing it in Hong Kong, and then two coastal assets in Korea. And in terms of the compression, we are, this summer is actually happening in

Australia, Malaysia, and India. And the rest of the improvement are largely coming up from the better rent. How about for China? For China, it's mainly due to the lower rent. But why would the assets not be marked down by more, because your reversions was kind of more negative, right? Compared to the 1.5% that we saw that was intact. Is it based on the assumption that the rental will improve fairly like materially? Yeah, I think what the valuables do, they basically start from the valuation, they do a DCM over the 10 years, right? So they actually have a view of where the market rate is. So like you said, like what you said, the rental reversion is there, the negative rental reversion. However, the valuables will take a view of when the lease is expired and is renewed, where will be the market rent? And then how will it grow going forward over the 10 years period? Okay, so they will have

big deal recovery over the medium to longer term. Would that be a right assumption? Yes, that's right. Okay. And another question, in terms of AI for logistics, I'm just thinking from a landlord perspective, do you need to kind of provide any AI or do you need to use any AI to kind of entice tenants or are the AI kind of tools, etc., driven mostly by the tenants themselves? Well, in terms of AI, what she sees, they really started using, if you consider AGD, but governments are guided vehicles. They are really incorporated by some of the pharma distributors and places like Hong Kong. So the requirements are basically flat floors, red flat floors, and which we need to build, develop and move our surface. And secondly is the power supply. So power supply has to be adequate to creative or to be upgraded to

the extra power usage to drive these automation equipment. So in terms of AI, AI, well, it's more the hardware to be better than the tenants are deployed. Okay, thank you. Okay, that brings to the end of the Q&A. Thanks very much. Please send me questions if you have. Okay, thanks. Bye. Bye bye.