2Q & 1H FY24/25 Financial Results Briefing

Please may a team analyst, investors, and members of the public warm welcome to MPAQ's Analyst Briefing and live webcast for our results for the second, fourth, and first half of Financial Year, 2023-24. As a distinct pleasure of hosting today's results briefing, allow me to introduce our speakers for today. They are Ms. Sharon Lin, Chief Executive Officer of MPAQ, Ms. Jennifer Tan, Chief Financial Officer, and Mr. Koi Rong, our Head of Investment and Asset Management. We're representing our financial results, providing key business developments and sharing market insights. Following your presentation, we'll open the floor for Q&A. We invite you to ask questions or seek further clarification on our results. Without further ado, I'll hand the floor over to our TFO, Jenica.

Good evening. Okay, I hope everybody can. This meeting is being recorded. This meeting is being transcribed.

This quarter to be of underscore the resilience of Cintex Singapore portfolio and mid-diverging overseas currents. So the strategic investment of military entrance, coupled with daily performance of the Singapore asset, provided some cushion against the effect of diverse conditions in the overseas market. Second quarter FY2425, gross revenue, 225.6 million, and MPI 167.7 million were lower by 6.1% and 8.5% year on year, respectively. So this largely reflects reduced contribution from military entrance following its divestment on 31st July 2020. And more contributions from the overseas asset, which was further impacted by the strengthening of the same dollar. Excluding military entrance, the Singapore properties recorded a revenue growth of 1 million year on year, led by continued robust performance of legal city despite the ongoing AEI IP2.

The property operating expenses were higher by 1.7% at 57.9 million, mainly due to a 2.8 million one off property tax refund. And this is relating to vivo city recorded in last year and not this year. Okay, moving on to net finance expenses for the quarter. Net finance expenses were to 26% lower at 56 million as compared to second quarter last year. And this was mainly due to the repayment of borrowing using the net proceeds from the divestment of military entrance and partially offset by higher interest rates as the lower fixed rate literacy interest rates sort of progressively roll. So amount available for distribution, 104 million, 11.9% lower, DPU 1.9% down 11.6% year on year. If we were to exclude the one off property tax refund received last year, the DPU would be at 9.6% year on year.

This slide shows the contribution by different markets, excluding the results of military and certain and a one off property tax refund received in last year. Both gross revenue and NPI of enough properties were higher year on year. The full-call assets account for more than 50% of the portfolio's gross revenue and NPI. The lower contributions from the OSC properties were mainly due to weaker performance because of low occupancy, negative rental repersion, and unfavorable effects impact from depreciating Japanese and Raminpi against Tingdong. Okay, moving on to first half, gross revenue and NPI decreased by 3.3% and 4% year on year to 462.3 million and 347.1 million respectively. This was similarly driven by the reduced contributions due to divestment of military ensign and we see overseas contributions further determined by adverse foreign exchange effects.

Net finance expense for first half was 11, 115.5 million up 3.4% mainly due to higher interest rates on Tingdong dollar and Japanese yen borrowing as legacy low fixed rate RRS progressively tipped off. This was questioned by the reduced borrowing after divestment of military ensign. Amount available for distribution for first half was 214.7 million down 7.8%, BPO 4.07% down 7.9% year on year. Excluding military ensign, gross revenue contribution by Singapore properties due to 5.1 million higher year on year and excluding military ensign and one off property tax rebate refund and on poor properties NPI would be at 3.2 million higher year on year. On balance sheet, in view of the non-renewal notice by FGM's master tenant and the localized market softeners

in the Makuhari market of Chiba, in-treme revaluation was carried out on the three Makuhari properties, namely MBP, MBT, which are Seiko building, and FGM. This resulted in a 17% drop in fair value as compared to their respective valuation conducted in March 24th. We now will go into more detail on this revaluation later. So as a result, this revaluation and class D adverse impact, NAB per unit was at $1.71 at 30th September, lower than that of 31st March 24th. Moving on to capital management. So utilizing proceeds from the Maple Tree and some divestment to reduce growth in rate net, the total growth net was lowered from 6.8 billion as of June to 6.1 billion as of September. So however, the interim valuation of the Makuhari properties, partially offset the positive impact