4Q & Full Year FY25/26 Financial Results Briefing

Good morning, everybody and members of the public. Welcome to Maple tree 10 Asia commercial trust, or impact analyst briefing and live webcast for results for the fourth quarter and financial year ending the first much 2026. I'm being at the pleasure of hosting today's results briefing. Allow me to introduce our speakers for today. They are Miss Sharon Lynn, Chief Executive Officer of impact. Miss Jennifer Tan, Chief Financial Officer and Mr. Coley Long, our head of investment and asset management. We'll be presenting our financial results, providing business development and updates and sharing market insights. Following the presentation, we'll open the floor for Q&A session where we invite you to ask questions or seek further clarification on our results. Without further ado, I will hand the floor over to our CMO, Janika. Very good morning. From FY25 to the 6th, this was a year of delivery shaping of impact. Three non-core assets were invested two in Japan, completed in August last year. And in February,

we completed the divestment of festival work power, the office power of festival work. And all proceeds were deprived towards debt reduction, strengthening impact financial foundation. In relation to the divestment of festival office power, a lot of divestment of 10 million and a balancing charge of 8.3 million on the capital allowance previously claimed on festival work power was recorded in 12 quarter FY2526. Okay, now let me quickly go into the results. Fourth quarter, cross revenue and NPI were 210.5 million and 100 million effectively, lower by 5.5% and 5.9% year on year. This was largely due to lower overseas contributions, unfavorable effects, arriving from Woodkill, Hong Kong dollar and Japan this year. And the divestment towards gross revenue and NPI will attend year on year respectively.

That's our little city, 1% year on year, will lead you to reduce operation and maintenance. So the one option year for 8 million, lower by 15.3% repair using the divestment

to cover the lower overseas income for a year, 421.4 million, CPU 7.97 cents, both marginally forward and we felt the balance such that you would have higher year here. Okay, this is Singapore for low deliver a 4.1% higher contribution for you now accounts for more than 60% to both people see recorded a 7.6% EI disruption. We did a full year valuation at the different much related to in the six, all your valuation were 15.2 billion based on the independent valuation

and on a same star basis is in lower year on year. Singapore's valuation up leaves of 278 million or 3.1% year on year, largely offset by 7 million operational valuation of 301 million of $30 against Hong Kong dollar Japanese yen excluding this value valuation. The higher variation of the Singapore portfolio for three billion a year on year basis, lower year on year of Chiba in moving on to balance sheet with the divestment and the lower valuation and

plus zero borrowing, three cents as management borrowing 5.7 billion. This is following the re-prevent of Hong Kong times on what you learn by proactive that by the lower interest rates comes. So the average sum to majority by the end of the reporting period and has the financial slack. Please don't point me on John committed facility and financial obligation.

We will continue to ensure a natural balance sheet hatch by closely online the debt next with the geographer distribution of contact AUM west not that so far remain well distributed with no more than 23% of that expiring in any financial year. Okay, we have started to work on the refinancing for FY 2728 and the 255 million perps will be refinanced using bank borrowings and these will bring our gearing post the refinancing of the perps to approximately 37.6%. On risk management to show against interest rates volatility, we continue to keep our fixed rate that avert 30% effect 31st March in 26 the fixed rate that stood at 71.5%. Forex remains volatile against $3. So approximately 95% of our foreign source

distributed income or hash interesting dollar based on the rolling fall quarter BC. Okay, on the total return, the total return for the year was 12% on prices of 5.6% appreciation in capita and 6.4% in distribution. So we remain focused on driving sustainable performance through market cycles. Okay, on this slide shows the distribution detail CPU for fall quarter was 1.9% 0.9% unit holders can expect to receive the distribution on 17 June and the book closure date is on 28 April 2026. Okay, with that I shall now hand over the time to be young. Thank you. Hey, good morning everyone. I'll just run through some developments on the portfolio and give you a bit of color on the performance of assets. So on occupancy, you'll see that occupancy on the year on year basis remains largely stable even taking into account the impact of the

divestment of the fee assets. That's largely driven by improvements at NBC, which has offset the lower occupancy in China and Japan. So for NBC, you will see that we have improved occupancy slightly. There has been a number of new signings at the property that includes a fairly large IT company, which will be taking up a substantial amount of space. Those are about two floors and that's a tenant that will comment towards the end of the calendar year. Some of the other leases will start to comment slightly earlier, but are still looking at July of the September timeframe. Drilling down to the two slightly more problematic dropping fees. So for China, occupancy remains fairly constant against December, but has dropped against a year ago. That's largely driven by the economic, macroeconomic factors in China

together with a significant amount of supply, particularly in Shanghai. That caused these things to be fairly weak and we can talk a little bit about them. For Japan, we have been seeing declining occupancies in the Japan portfolio, largely due to non-renewal of the master leases. So we already had two rounds where Seiko had left the SII building and we had an entity UD give up their master lease at MVP. Those were in the last two years. At 1st of April, Fujitsu would have terminated their master lease at FJM, would have ended. So this number at the 31st of March would have dropped down. This was 71.5% as at 31st of March, would have dropped down to 57.1% if it took into account. So for the other assets, occupancy remains fairly constant.

Moving on to rental reversion. Rental reversion of the portfolio basis is flat. Singapore properties, improvements in rentals, particularly at VOCD has helped to offset the continuing weakness in World War China as well as in Japan. So moving on, the lease expiry profile is improved slightly from the previous year, particularly driven by lease renewals at the office properties.

I think one thing that you should mention is that post the photos of the quarter, we actually managed to renew one of the larger tenants at MBC. So that helped to push out the lease expiry profile because the lease was from a fairly long-term basis more than five years. Okay, so moving on to the next slide. There's a lot of questions around utilities costs and the impact of the Iran conflict. So we have taken risk mitigation measures to try and limit the impact. Earlier in the month, we had extended our utilities contract. So if you recall, the Singapore utilities contract was originally signed to October 2026. And we were looking for suitable opportunities to extend out the contract. Given the current market volatility and given it was interesting to find out that we could actually extend the

contract at substantially the same rate as what we had entered into because of the longer term uncertainties as well as the market perception that this will not be long-drawn.

Singapore accounts for other assets generally are not so much opportunities to do what we have done in Singapore, which is to do long-term fixes on the utilities rates. But that being said, the other geography can be a bit less, seem to have not seen significant formulas due to some increases in the potentially less oil and gas in the electricity generation mix. So we're continuing to monitor. And one thing that has each other perform an early turn on

and air conditioning and other buildings limit the impact of the other day. Most of these measures are fairly incremental. We're at best talking about treatment in case of moving on. Let's talk about the traffic here and here that's seen a good 3.6% increase and on tenant sales is up 3.7%. Throughout the early part of last year, we had the whole of basement two down for a fairly large chunk of for asset enhancement. So in the next slide, you can see the completed basement two asset enhancement. This is fairly substantial. Phase one had changed the MRT on

the left side. So we continue to refresh tenants as well as getting tenants to revitalize. Previous quarter, Chinese New Year celebration was the A&P. So moving on to the festival walk. Shower traffic, we did see an improvement here in New York, but tenant sales still remains

fairly low. You will see that Hong Kong in general has had some improvement in tenant sales and unfortunately, the festival is not a tourist-centric mall. So you will see that most of those improvements have been approved in the central area. Moving on to moving on. So we do see a number of new tenant sales in the mall and this is how to refresh the mix within the mall, especially on the A&P front page. So shopping engagement is a key festival walk and I believe that's actually contributed to improving the shopping traffic at the mall. So these are some of the events that we have found at the mall. More positive development. This is the current ongoing space

reconfiguration, the small AEI festival walk. We reconfigured the space for one of the anchor fast fashion tenants and split the space into six different concepts. The works are currently ongoing and are still complete by second quarter. The outgoing rentals or the outgoing rentals. Hello, hello. You can see my microphone. Hello. Yes, thank you. Okay, so the arrival that we expected to go will be closer to 50% for this reconfiguration exercise. Okay. Last but not least, we just like to update that we completed the diversity of festival office component earlier in the quarter. And the election size is with the update on the program. Some of the other tendencies.

Okay. Thank you, Jenny. We're now ready to take your questions. Or I'll end it there. May I cover you to raise your hand on the platform and I'll unmute you when we can ask your questions. We kindly request that you release the name and also before answering your questions. For online participants, you may submit your questions through the text states. So first, we have Karen. JT Morgan. Karen, please unmute yourself and ask your questions.

Thanks, Lee. Congrats on the results. If I may ask on AEI plans, thanks for stopping the AEI work for the festival walk. Perhaps maybe you could share a little bit more as to whether you have further AEI plans for the broader festival walk and perhaps for Vivo City. And the second question from me, you divested three assets this year. So gearing stands at about 36.5% and even after the refinancing of the pubs, you still do have a bit of gearing headroom left. So I would like to ask whether you'd be looking to redeploy some of the proceeds into investments going forward. Thank you. Okay. Hi, parents. So in terms of asset and let's take the asset and husband questions first. So I think we mentioned before and it's something that was quite surprising to us when we took over the Hong Kong asset.

Development planning in Hong Kong seems to take a fairly long time. We have had the number of asset and husband plans, which we have been calling around with for the last two to three years. And some of them are, and it's been, it's taken quite a while to get approvals going. One key asset and husband which we are working very, they're working very hard on is actually the reconfiguration of the cinema at festival walk. I think we have, may I mention before the cinema trade in Hong Kong seems to be a lot weaker than here in Singapore. And we are concerned that there may be a shakeout in the industry and might result in some tenants weakening. Hence, we have been planning on what we can potentially do with the cinema space. And those are currently still ongoing. And once we are ready, we will

make it, once you are ready to proceed with the asset enhancement, we will make the necessary announcement. For people city, well, yes, we can move a little bit faster. The truth is that we have done most of the low hanging fruit. So if you recall earlier asset enhancements that were done, the city you have seen ROI being a substantially higher number. The other thing that we are a little bit concerned about is that construction costs have been going up. Aside from the AEI that we currently compete with, something like

close to $15 million in those off costs. And we are expecting that any AEI that we will have to do in the future will be substantially more expensive. So those are decisions we will not take lightly. And we are still evaluating one of the best things that we can potentially do through the mall. Bearing in mind that costs are going up and that we have already done quite a lot of AEI's. Basically once every two years, and in some cases once every year, we have had AEI's at the mall over the last 10 to last years. So looking at our gearing and acquisition potentials, I mean, if you look at the CFOs, you obviously want the gearing to go down even more. We have done quite a bit in terms of divestment and we have also managed to, Singapore has also managed to cushion some of the reductions in valuations coming from the overseas assets on the operational basis. FX seems to be something

that we cannot control and that has had a bigger impact on our valuation than we would like.

Have we been looking at the acquisitions?

Yeah, maybe I helped you chip in. Maybe I sum it up for you. In Hong Kong, short term, next year, the lease renewal for cinema is coming up. That's why we're actively looking at reconfiguring. Number one is to contain a smaller cinema, the rest will subdivide. That's the plan. Subdivide majority will be F&P. The long drawn, which we have been taking a while because of regulatory approvals, that is more for the basement. I think we shall not talk about that because the long drawn. They're moving along to Vivo City. Vivo City this year, you will see we have continued revamp now the drop-off. Okay, the drop-off point is actually the back of Vivo City. We have reconfigured how the cars move and taxi and drop-off point. At some time, we are still exploring whether the back of Vivo City can become our another front. Nothing is firm, but I think that there should be good traction

if we can get the right tendencies because we have always been using the back, the drop-off point like a back of a house, but technically, the car park floors actually pass through there. So it must be significant, it must be destination or trade that will be able to benefit from the location. We are not from that out, but I think it's a certain trade or plot that we are trying to share with you. Okay, then moving along to what we are gearing is comfortable. Okay, it took us a lot of effort. I think we are very, very comfortable with our gearing. We'll continue to explore as long as it makes sense to the portfolio, but we'll be very careful in terms of certain countries. We will definitely avoid China for the time being. I think the weakness will still be continuing. Singapore looks like a group base, but in terms of transactions is very limited. So we will continue to explore, but we will be careful in terms of overseas market,

in terms of acquisition. Yeah, thanks. Thank you. May I invite you here from the two questions for me. I didn't quite get the NBC negative reversions. Can you explain on that? And then secondly, when can we expect China and festival work reversions to bottom? Seems like with the AI plans at festival work, this should back on for a little longer. Is that correct? Okay, the NBC to me, I'll just chip in on the details. We don't can handle it. The NBC, I would say that it is close to flat. Like I always mentioned, changing over attendance, we have our downtime is way more than that. Three months out of 24 months,

36 months costs you more than one over percent. Okay. For NBC, they are big takers and they are slow in picking up space. So in a way you hang on to the tendency and we got good names. Okay, I'm not bothered when it's a minus 1%. Okay, and I think it is a good number. If I change over attendance, I may get slightly higher, but you don't see the downtime. You don't see the downtime in this calculation and that will actually cut your cash flow. Okay, so China expect it to go down for this year too. Okay, I do not feel that it's actually strengthening. We are trying our very best in terms of hanging to the tenants and trying different strategies, even fitting out certain areas, because fit out costs is not very expensive, basic furnishing costs so that talent can just take the back in and start operating. And I would think that that is the only way we can just hang on in China. Okay. I know we see the same magnitude of 21% for this year.

Well, at least 10 over minimum. Okay, okay. So slightly improving. I really can't tell, because the numbers coming in, China, you got thicker, you are happy. The vacancy rate is very high. Okay. I think I won't be too optimistic with you when it comes out of China. We just try to hang on to occupancy and control our costs. And that's all we can ask for for China for the time being. Yeah. Festival work with the AEI. Okay. Festival work with AEI, if you are talking about cinema, it's 2027. Okay. Okay. Just one more last one. With the Japan portfolio occupancy slipping to

57%, right? I think it's fair to say divestments could take a while longer if there's any plans to divest. Okay. If we can divest, we would divest. Okay. I think Japan, especially for Maku Hari assets, is tall order. We have done what we can as management. Number one, contain the cost. Number two, drop the value. So that is very negligible. The two buildings are two huge buildings. Adding up, we are talking about 200-ish million. Okay. So I think we need to put that into the magnitude in terms of the valuation that's carrying in our books. 200 million is our problem assets in 200 plus in Japan. That is Fujitsu and single building. Yeah. Okay. Okay. That's it for me. Thanks. Thank you, Yuki-an. Jheridin from Bibi and Yonek.

Hi, morning. Just wanted to ask on the festival work divestment, are you able to share the exit yield? Is it a low 2% and has carrying already reflected the debt repayment from the divestment for seats? So the office yield was in the 3% 3 plus percent range, closer to 3.5. You're asking whether the gearing has taken into account the repayment of debt, right? So yes. Yes. That's it. Okay. That is 6.5% is after repaying the Hong Kong dollar loans using the proceeds from the divestment. Okay. Got it. And maybe one more on the just festival work. Hong Kong Tenen Association is to be doing quite well this year. So in from what you're saying, are retail landlords a bit more asking in terms of rent or should retail expect to see a lag time between sales and rent?

Okay. So I think the, you know, one small bright spot doesn't allow landlords to start moving rentals significantly. And the other thing also is that the sense is that a lot of these improvements last year was tourism driven, either by the events that have been ongoing in Hong Kong or the shift in travel patterns by PRCs from other countries to Hong Kong. That has concentrated the improvements in that we feel that that's concentrated the improvement in tenant sales to the tourist more for tourist focused areas, in terms of the central cost of the pay and the like. So those landlords may be able to ask for higher rentals than they are currently. But bear in mind the last three years, which is the typical duration of retail leases, Hong Kong has had a fairly rough time. And that may not do because of that,

unlikely you'll see positive inventory versions coming through, whether it's our portfolio. I mean, some people might be lucky, but we don't feel that's the case. Festival walk still remains a mall that's very focused on the people who are living around and working around the Kowloon area. And it's not a tourist focus mall. So improvement in sentiment has not really translated down. What we have been more focused on is actually improving the trip mix or rather optimizing the trip mix at the mall, getting real picture tenants and bringing in concepts which will appeal to the people who are working around and living around the area. Okay, understand. So you've all just you'll be in this ballpark for next year. Negative single to 10%. Yeah. Okay, thank you.

Rachel from Aquari, you may ask a question. Hello, good morning Sharon and him. Can you hear me well? Okay, great. Maybe my first question is on interest cost. What's your guidance for FY 2027? And could you give us a sense the perps rate versus the debt rate that you will be getting to refinance the perps? Interest rate guidance is it will still be above 3%. But you know interest rate is very volatile, especially with the Middle East crisis. So we based on our estimate, it will still be above 3%. Hopefully lower than what is currently we have here. Okay, you'll be a long trip. Okay, perps, sorry. But currently the perps we issue at 3.5% and we there's a CCS on it. So we are paying actually in fact 2.5% on these perps.

So if I were to refinance this using borrowings that we have on hand, it will be there about the same as what we have been paying or slightly lower. It depends on how much I fixed the drawdown at that point in time. So it should be there about the same. Okay, can I have a look at that? Our price has already to the first cost. Yeah, the 3.1% is 6%. Okay, got it. Can I just get an update on your Hong Kong rates? Is it still above the current Hong Kong rates? What do you mean Hong Kong, the current? Hong Kong debt.

We still have some high fixed interest rate swap, which hopefully majority of them will drop off in these coming financial years. Yeah. Okay, thank you. Then my next question is on just a follow-up on the Festive Award AEI. If I were to take the cinema space, if you were to break out the cinema space and you get a higher rental, will you be able to then cover some of your negative reversions that's coming up from Festive Award? Essentially, I'm trying to see whether your NPI will be fair enough. We don't count, we separate the AI and the rental reversions by completion. Okay, so will one shift a whole more? I'd say no. Yeah, will one AI shift a whole more NPI? No. Okay, and then lastly, now with your debt, during that hit room,

and how will fund be developed will be coming up in second half of the year? What are your thoughts on that? What are our thoughts in terms of you're talking about investing? Yeah, would there be any partnership with the sponsor? For the time being, no. Okay, so what we are doing is just preparing for sudden disruptions, which I think that has been well handed by the missing thing. It's still a little far. So when the time comes and they're ready, we will reassess the job.

Okay, all right. Thank you. I'll jump back to you. Thanks. Richard, I just want to correct myself. The 3.16 percent cost of debt is we start accounting for the purpose. Oh, okay. Okay. And so if you count the purpose, it should be lower. Okay. Okay. All right. Thank you. Thank you, Rachel. Hi, Jerry. Morning. Yeah, morning. Just sorry. Just for the interest rate question, assuming current rates, what is the outlook for interest rates? Outlook for our... From pretty much 1.6 percent to what? It will be still above a tree, a low tree. Hopefully, maybe another 10 bits off.

10 bits. You know, interest rate is very, very volatile. So maybe next quarter, I can tell you another guidance. Okay. So now for now, it's maybe about 10 bits off, based on the current prevailing market rate. And just on the valuations for festival work, I mean, local currency terms that was down close to 5 percent. Do you think the valuables were being pretty aggressive in bringing that down, given that it's fully occupied, I mean, outperforming the rest of the other overseas assets? And I guess does that make it separate away for potential divestment of festival work?

Derek, if you look at the net property income movements at festival work, the 5 percent reduction in valuation is actually quite in line. It's actually fairly in line. We have also tried to see what the other valuation movements for retail assets in Hong Kong are. Not many of them are disclosed, but from the view that we can see, the majority of retail assets in Hong Kong have gone down 4-ish to as high as 9 percent over the last year. So the 5 percent reduction for the retail asset is more or less in line with the performance as well as in there.

Okay. Yeah, I mean, I'm just asking, it's difficult to see the comparable transactions. I think Hong Kong land, they were defaulting like book value of 5 percent. But I'm not sure what's inside. So yeah, I'll ask on festival work. Thank you. Thank you. Thank you, thank you, Larry. Brendan. Hi, Brendan from City. Hey, morning, morning. Just want to go back to festival work, right? So if you look at the tenant sales for this quarter, it was up year out here. It's been close to like more than two years, right? I think you've seen this improvement. So and early you saw, very skeptical, right? So is it correct to say that tenant sales hasn't exactly bought them out for festival work? I think one quarter doesn't make a trend. And we are still continuing to closely monitor the

performance of the mall and the performance of the tenants. There are some strong points and there are some strong areas. So FMP is doing fairly well. But fashion, some other tenants, tenant mixers, cosmetics and the like are still fairly weak in the mall. And those continue to drag down our performance a little bit. So this one quarter, we've had some interesting or rather

not the unexpected, but you know, if you look at the if you look at our jewelers, and we look at the ghostly shops within the mall, those have done extremely well. And has definitely contributed. And like I said, I have a few trades doing very well doesn't doesn't quite make the case that overall, because we will continue to monitor, we will continue to remix the tendencies such that we read out a bit of the 10 weaker tenants and bringing stuff that people want. Got it. Okay. And also just just a bit similar to Derek's question, right? So if you look at the latest valuation for festival-wide 20.7 billion, right? And that seems to be still like 13% above the acquisition price. Right. And if you look at over the years, the reversions, it is still not not great, right? So

do you think at this point in time, it's it's still looking a bit overvalued for festival work? Based on management, not non-valuables, not one independent valuables, kind of. Okay, if you look from the process is done by professional party valuables. Okay, so that part, I don't think there's any form of interference or manipulation of the part. So there's a market value determined by the party. But if you talk about investment, by mid as per whether it's buoyant, and whether this price is something that people will look at, I think overall, most of the investors are still very careful pertaining to Hong Kong. Okay, so your valuation is there, but investor appetite may be slightly a little bit more cautious than what we in a typical market. So the two markets that I see investors very, very cautious is definitely Hong Kong. And China is popping in. Yeah. So I wouldn't say that our

valuation is not correct. Our valuation is done by third party, but the investment climate is not as strong in terms of the cool on investors looking and ready to put more money into Hong Kong China. Got it. Okay, thanks so much. Thank you. Thank you very much, Brendan. Jonathan, you have next. Yeah, good morning. Good morning, Sharon and management team. So, first question relates to MBC. You mentioned like one tenant secured during the quarter, and then another big one also after the quarter. So I presume both are new tenants. Could you give us some color in terms of like the industry trade they are in, the rail, and then also the size of the lease that they have taken up, and then for the large tenant that came in after the quarter, if you include that,

what would the level of occupancy at MBC be? Okay. So the tenant after the quarter was a renewal. That was for more than five years. And rental reversion was actually just a little bit positive. So that had no impact on the occupancy. Okay, the other tenant, which is a new tenant that took up about three floors and that's contributed to the improvement in MBCs committed occupancy. That's in the IT trade. Okay, thank you. And then the four, okay. For the guy that renewed, could you give us like the industry sector? And also I have a follow-up on Japan.

Okay, okay. So a follow-up question on Japan. I couldn't help but notice that the tenant retention is like 10% looks extremely low. Is that only unique to the quarter? And then you see some rebound after that. So could you comment on that and how that affects the outlook? So the tenant retention in Japan, the low number is largely driven by Fujitsu. So Master Tenant at FJM, they are not extending the tenancy. So their whole building is going vacant because that tenant has moved up. And it's a fairly substantial portion of our portfolio. If you look at our occupancy number, depending on the number of 75, we're assuming we take this FJM out of the equation, the occupancy will be then 57%. So it's a fairly substantial impact on the portfolio and the retention rate is brought down largely because of this tenant.

So excluding these sort of high impact events, normally why would you expect tenant retention to be for Japan? It floats quarter to quarter. If you exclude this particular tenant and we are probably looking, well, last FJM will probably be around the 60 plus, no, actually a little bit lower, maybe 50 plus 60, 60% mark.

Okay, thank you. Thank you for all the detail. Sorry. Generally, we were expecting the numbers to be a bit higher because in Japan, Tenant's tag will be a little bit stickier. Aside from the Makuhari assets, most of other assets tenants are a little bit stickier. But last year, we did have one or two non-linear in the other part of the portfolio, which we have actually managed to backfill the space. But they were actually a slightly lower retention than we normally expected. Yeah, thank you. Thank you very much for the detailed response. Thank you.

Thank you, Jonathan. Karen Lee. Hello, Karen. Hi. Good morning. Karen Lee from UBS. Just a question on the one-off tax charge, the 8.3 million. Let's say if you manage to sell festival walk the retail portion, should we expect another such one-off tax charge that would be flushed into the DPU? Unfortunately, yes. Is there a sensing for us to understand what kind of percentage or applicable tax rate that would be? Okay, I do not have that on hand now. I can get back to you. Yeah, but basically, whatever that we charge off now is what we apportion for the office part. Yeah. The allowance was claimed as festival as a whole. So we based on some

formula to apportion the office part. Yeah. So the office was subject to the tax agreement on the way we apportion. Yeah. Okay. So I can get back to you on the amount, but I do not have that on hand. My apologies. Could we not just take the 8.3 million divided by the divestment price for the office portion? No, no. Okay. No, cannot. Yeah. Okay. No, cannot. Yeah. Okay. And I guess a separate question. Can you remind us of the FX income hedge policy and at this juncture, like how far forward rate for the coming year looking like relative to sport? And I guess particularly for Hong Kong dollar and JPY. I think Hong Kong dollar and JPY outlook is appreciating. I don't know how they are going to appreciate Hong Kong dollar is depreciating. So far, whatever swap that we have on the books,

I think both of them are not the short forward hedge both of them are majority out money. Okay. So is it fair to surmise that there should still be continued FX related income weakness into FY27? Based on the hedge on hand, maybe there will be, but yeah, that should be. But you know interest rate is very, very volatile. And the reason why we do income hedge is actually to just protect and lock in the rate to ensure income stability or ensure income stability. We are not actually speculating the market. So that is the risk management, whatever that whatever that the box guidance set on the threshold, we will just make sure that we monitor and we make sure that we lock in to mitigate.

It's not so much of speculating and trying to come from the market. For our hedges is mortgage management. So whether the currency would depreciate or appreciate further, we will still make sure that we hedge the necessary threshold, the risk threshold, except by the board to give us the ability on the income. And of course, when we hedge, we'll market and make sure that we don't go in at a rough time or some time point in time where the market is really very rough. Yeah. Yeah, I guess all in if I may surmise the outlook for FY27, the interest of downside pressures, it's probably from the negative reversions from some of the overseas assets and a bit of pressure from potentially weaker FX rates. And I guess on the upside forces that appears to be lower rates for the portfolio, low interest rates for the portfolio.

I think we do not provide a forecast, but if you know we have already announced which is so and that's already a $10 million to the boat. So I'm not sure how on the other hand, you can get a comfort that the income from Japan will be lower, although it's depreciating. I don't know whether that's a comfort or not. Okay, got it. Thank you. Sorry, just now, I was asked about the retention rate, not including Fujitsu. So it's not 50% and it's actually about the mid 30s. That's due to non-renewals at MVP as well, where some of the remaining visas from the master tendencies which expired three years ago, those visas actually expired as well. Got it. Got it. Thank you very much. Thank you. Thank you. We do have a question coming from online. It's relating to the impact of online sales

on the fact that online sales have been given heavy subsidies. So if you look at online retail in Hong Kong, it's actually a very much different form of within China. If you look at online sales penetration rate in Hong Kong, we are looking at probably in the 10% range, whereas if you look at the status really the same statistics in China, that's probably in the 40% range. If you look at Singapore, we've actually been stabilized at about just under 20% fluctuating on a quarter to quarter, month by month basis. So it looks like online retail in China, sorry, in Hong Kong has been fairly stable. And if there is some inclination that the online retailers are being a bit more trying to be a bit more aggressive in Hong Kong, but it might be part of it. Part of the reason is that the proclivity of the

Hong Kong residents to not use online payments that much also preference to shop physically. I think a bigger chunk, but the truth is that the bigger chunk of the impact of retail sales in Hong Kong has been the leakage to Shenzhen. The ability for Hong Kongers to go across the border to shop has probably had a much bigger impact on retail sales performance in Hong Kong than the online impact. Thank you, Wiyong. Just want to double check again, Taryn, do you still have another question? Yes, just to follow up to the earlier question, Janica, just on the part on the one-off tax issue, what's the rationale that this is flush into the quarter's DPU as opposed to it being netted off against as a net divestment proceeds? This is something that, okay, we asked the same question to our tax consultants. This is considered an operation issue because the allowance was being claimed and offset against

the operation income. So now there is a crawl back which would be against operation income. Actually, when we divest the mapered tree and sun, that is also a similar kind of balancing allowance and charge. But at that point in time, it was allowance. So allowance will reduce our DPU because it's allowance and we pay off the unit holder via capital distribution. Yes, I guess that would be my next question. Why not replace the, make unit holders whole in terms of the cap distributions? You see, it's different from Anson. Anson is reducing, but I'm not paying any money to the tax office. But this is different. I'm paying a take over million to the tax office, Hong Kong tax office. And if I were to distribute, I'm coming up another 8 million to pay to the unit holder. By having said it, this is considered a transaction cost. It would definitely net off or charge to a

divestment gain or loss. But when we claim the allowance is net off against the operational income. So now when there is a crawl back, it should be against operational income. Just to clarify, so was there even a choice to distribute capital distributions to make unit holders whole? Capital distribution, we can distribute. Okay, of course, taxable distribution, tax exam distribution, you must have the relevant income. Okay, but capital distribution, we can if we want. It's just like the, if there's any gain or the proceeds from the divestment, if we were to distribute, we will distribute via capital distribution. Got it. So yes, we still have the choice to distribute, but because we are paying the tax office, we have only one 8.3 million. If I'm paying tax office and I'm paying unit holder, then we are effectively borrowing to pay. Okay, got it. Thank you. Thank you. We do have

one more follow up from Brendan from Sydney. Brendan. Hey, just a couple of household matters, right? Can you share about the occupancy costs for both MW and P4 City? For both, occupancy costs plus minus 20%. Okay, great. Thank you. Karen from JP Morgan. Hi, Karen. Hey, thanks. Yeah, I just wanted to ask a little bit more on NBC. So you are seeing occupancy's improved on a Q and Q basis. So maybe could we get a sense of, you know, what, what, how soon could we see occupancy's move back above, let's say a 95% handle and on a broader scale, has the, has the wall impacted demand for space in Singapore in terms of leasing both on the office side and also on retail? Thanks.

So obviously, M&T is already above 95. We expect, we expect over the, throughout the year, block buildings will remain around the mid 90s range, plus minus a little bit. In terms of these things, missing impact, what, what the, what the wall has introduced is actually uncertainty. And what that, what that causes tenants to do is actually to delay decisions, right? As it is before the, before the conflict started, all of the terrorist issues, as well as between the US and China has already caused tenants to be cautious about picking up more space, all the spent money on picking out spaces that has continued. If anything, it's delayed decision making a little bit more, right? In the past, we were probably looking at tenants taking out space six months, nine months, one year before they move in, from the point of signing a lease. Now, we are now that's probably going to buy another, another one to two months,

one to two months. In some cases, what tenants have been doing is to delay decisions, right? They know they have to make a decision within, they have to make a decision within the next six months. They don't have to do it now. They'll just wait another three to six months. So that's really, that's really been the key. The other thing is that the impact of the wall is like, the impact of the wall will affect construction costs. And that will mean that the fit out costs will likely go up, that will then make tenants a little bit more reluctant to move from space to space. To mitigate that, what we have tried to do is as far as possible, if we do have departing tenants and we do have a few, we have tried to retain fit out such that we can then use those without any tenants. That has really helped to push some documents out of the floors. But in general, the result of that is also that tenants are more reluctant to move.

So it's actually helped to maintain our occupancy and improve the retention rate at the NIPC. Yeah, thank you. Thank you very much, everybody. May just do a quick chat if there's any more outstanding questions from our participating analysts. If not, I would like to thank everybody again for your precious time and all your questions for today's results we think. If you have any other questions, feel free to talk to the administration's team. Thank you again, and we wish you a great week ahead. Goodbye. Thank you.