Good morning, everyone. Thank you for joining us today for Keppel REIT’s full year 2025 results analysts briefing.

I'm Lilian from the Investment Relations team. Before we begin, let me introduce the management team on this session.

We have Mr. Chua Hsien Yang, Chief Executive Officer, Mr.

Sebastian Song, Chief Financial Officer, Ms. Teo Xuan Lin, Head of Investment, and Mr.

Jason Chua, Director of Asset Management. We will start with the briefing with a presentation by the management team, followed by a question and answers session.

I will now hand over the time to the CEO, Hsien Yang.

Thank you, Lilian. Good morning, everyone.

Thank you so much for joining us today. We will begin with an overall overview of 2025 and also our focus for 2026.

In the fourth quarter of 2025, we completed two strategic acquisitions in December last year, namely a 75 percent interest in Top Ryde City, which is a regional mall in Sydney, and an additional one-third interest in MBFC Tower Three in Singapore. Top Ryde City is our first pure-play retail asset and diversification into retail, enhancing our income resilience, allowing us to benefit from the resilient suburban retail segment, which has strong growth potential, supported by long-term consumption growth and population increase.

MBFC Tower Three was a rare opportunity that allowed us to deepen our ownership in Singapore's core CBD. It is the best asset in the best location and is a property that we know well.

Backed by the strong office market fundamentals in Singapore, we believe that it was the right move to increase our stake in MBFC Tower Three. As the acquisitions were completed late last year on 19 and 31 December, we will see the full contribution from these properties starting from 2026.

Operationally, we ended 2025 with a strong set of results, recording year-on-year increases in NPI and portfolio occupancy. I will elaborate further on the 2025 performance in the next few slides.

For 2026, we will continue driving organic growth within the enlarged portfolio through both rental growth and proactive cost management. We've already begun to see the impact of lower interest rates on our borrowing costs in the second half of 2025.

In 2026, we will continue to monitor the interest rate environment closely and, to the extent possible, continue to bring down our borrowing costs. Here are some of our focus areas for the year ahead.

Moving on to our full-year 2025 key highlights from slides four: NPI rose 6.9 percent year-on-year, driven mainly by contributions from 255 George Street asset, which we acquired in 2024, and higher occupancy at 2 Blue Street. Share of results of associates and joint ventures increased 13.3 percent year-on-year, supported by the continued demand for Singapore prime office space and lower borrowing costs.

DI from operations, assuming management fees were paid entirely in units, would have increased 6.3 percent year-on-year. As at 31 December last year, our leverage stood at 47.9 percent, due to the transitory impact of the equity bridge loans or the EBR obtained to fund the MBFC Tower Three acquisition.

Had the proceeds from the private offering been received on 31 December and were used to fund the acquisition, our leverage would have been 40.4 percent. We have since completed the private offering and the equity bridge loans were repaid in full on 20 January 2026.

The weighted average cost of debt was 3.41 percent per annum. Total borrowings on fixed rates is at 53 percent, and excluding the impact of the equity bridge loan, it would be 62 percent.

Our Singapore portfolio continues to be a key contributor to our overall performance, supported by positive rental reversions and lower interest rates. As at 31 December, on a portfolio basis, our committed occupancy improved to 96.7 percent, and we achieved a robust rental reversion of 11.5 percent for full year, with the Singapore portfolio recording 10.7 percent.

The portfolio’s weighted average lease expiry remained long at 4.4 years, while the WA of our top 10 tenants was 8.1 years, reinforcing our income visibility. Through proactive leasing efforts, we had over 1.7 million square feet of leases committed in 2025.

Our net Sebastian take you through the key financial highlights next.

Thank you, Hsien Yang. For the second half of 2025, we see continued strong performance.

Property income, NPI, as well as share of results of associates and joint ventures, had all increased, due mainly to higher occupancy at 2 Blue Street and higher contributions from our Singapore assets. Also contributing to the strong performance was lower borrowing costs, largely due to tapering interest rates.

Looking at our full-year performance, property income and NPI increased 4.9 percent and 6.9 percent year-on-year respectively, mainly due to contributions from 255 George Street and higher occupancy at 2 Blue Street. Share of results of associates and joint ventures increased 13.3 percent year-on-year, on the back of better performance from our Singapore assets and lower borrowing costs.

Borrowing costs increased 2 percent year-on-year, due mainly to higher loan principal in 2025 as compared to 2024. DI from operations decreased 1.1 percent year-on-year to 192.4 million, mainly due to the payment of 25 percent of management fees in cash.

Assuming management fees were paid entirely in units, DI from operations would have increased 6.3 percent year-on-year. Moving to slide nine, DPU for the full year 2025 is 5.23 cents.

DPU for the first half of 2025 was 2.72 cents and was paid on 15 September. An advanced distribution of 1.63 cents was announced for the period 1 July to 16 October, pursuant to the private placement launched in October.

This was paid on 25 November. For the remainder of the second half of 2025, being the period from 17 October to 31 December 2025, a DPU of 0.88 cents will be paid on 25 March 2026.

DI for the distribution period of 17 October to 31 December is attributable to both the units in issue as at 31 December 2025, as well as the new units issued on 19 January 2026 pursuant to the preferential offering launched in December 2025. The enlarged unit base, attributable to both the private placement and preferential offering exercises, coupled with the absence of contributions from these two acquisitions, which were completed in the later half of December, led to a lower DPU for the shortened distribution period of 17 October to 31 December.

Full contributions from these acquisitions will be recorded from 2026. On slide 10, the increase in deposited property, total assets, borrowings and total liabilities is due mainly to the acquisition of 75 percent interest in Top Ryde City Shopping Centre and the additional one-third interest in MBFC Tower Three.

Adjusted net asset value per unit as at 31 December 2025 is $1.27. Slide 11 outlines our key capital management metrics.

Weighted average cost of debt for the full year of 2025 was 3.41% per annum. Interest rates, particularly the SORA, had eased substantially in 2025 from the peak in 2023 and 2024.

In 2025, we had also achieved favourable savings on loan margins during the course of refinancing. Riding on this momentum, we will continue to seek optimal outcomes for our refinancing activities in 2026 and achieve cost of debt for 2026 to be between low 3% and 3.3%.

Aggregate leverage was 47.9%. If proceeds from the preferential offering were received on 31st December and used to repay the equity bridge loans, aggregate leverage would have been 40.4%.

Fixed-rate borrowings and sustainability-focused funding account for 53% and 67% of our total debt portfolio respectively. If proceeds from the preferential offering were used to repay the equity bridge loans on 31st December, fixed-rate borrowings would have been 62% and sustainability-focused funding would have been 79%, which is above our target of 75%.

Interest coverage ratio remained at 2.6 times. Moving on to slide 12, we are in various stages for the refinancing of loans maturing in the first half of 2026, which represent approximately 27% of the total debt due for that year.

The equity bridge loans of approximately $820 million were repaid in full with proceeds from the preferential offering on 20th January 2026. With that, I will now hand the time to Jason, who will walk you through our portfolio review.

Thank you, Sebastian. Slide 14 shows Keppel REIT's portfolio breakdown as at 31st December 2025 by geographical locations.

Singapore remains Keppel REIT's largest market at 79.8%, while Australia, South Korea, and Japan are at 17.2%, 2.3%, and 0.7% respectively. Keppel REIT's portfolio committed occupancy improved to 96.7% quarter on quarter, driven primarily by new leases secured for Ocean Financial Centre, Keppel Bay Tower, 255 George Street, Pinnacle Office Park, and 8 Exhibition Street.

We are pleased to share that in January 2026, Keppel REIT committed a new lease at 8 Exhibition Street with a tenant from the banking, insurance and financial services sector. The new tenant will occupy five floors at the Grade A commercial building, vacating space vacated by another tenant.

Slide 15 provides a breakdown of our performance by geography. Driven by higher rentals, the attributable NPI of our Singapore portfolio increased by 2.9%.

Supported by contribution from 255 George Street and higher occupancy at 2 Blue Street, the attributable NPI for our Australia portfolio increased by 6%, partially offset by a stronger Singapore dollar. Attributable NPI for our North Asia portfolio decreased 3.2%, mainly due to the stronger Singapore dollar.

Proceeding to slide 16, the majority of the leases committed in 2025 were for our Singapore properties. New leasing demand and expansions were primarily driven by tenants from the banking, insurance and financial services and technology, media and telecommunications sectors.

We continue to maintain a well-spread lease expiry profile as shown on slide 17. The weighted average signing rent for our Singapore CBD office leases in 2025 was $12.91 per square foot per month.

By comparison, the average rent for the leases expiring in 2026 stands at $12.40, which is below both our signing rent and CBRE's fourth quarter 2025 average core CBD Grade A office rent of $12.30 per square foot. We have commenced discussions with tenants whose leases are due to expire this year and leasing demand continues to be healthy.

Slide 18 highlights our well-established and diversified tenant base comprising reputable blue-chip corporations and government agencies that contribute to the stability of our portfolio. The next three slides provide a summary of our portfolio valuations as at 31st December.

On slide 19, valuation for our Singapore portfolio increased 25.2% as compared to 2024. Excluding the additional one-third interest in MBSC Tower 3, our Singapore portfolio valuation would have seen a 5.5% increase.

The increase in valuations is mainly due to higher committed and market rents. Slide 20 shows our Australia portfolio Australian dollar valuations, which increased by 19.3%.

In Singapore dollar terms, the increase in valuation was slightly lower at 15.2% due to a stronger Singapore dollar. Excluding the acquisition of Top Ryde, the Australia portfolio valuation remains relatively stable.

Moving on to slide 21, in local currency terms, valuation for T Tower in Seoul increased 2.2% and KR Ginza 2 in Tokyo increased 5.6%. The increases were largely due to the higher committed rents achieved in 2025.

Due to the stronger Singapore dollar, our valuations for North Asia decreased by 3.5% Singapore dollar terms. On an overall portfolio basis, we see a strong increase of 22.3% in our valuations.

Excluding both the acquisitions of Top Ryde and the additional interest in MBSC Tower 3, we would have seen a valuation increase of 3.4%. Moving on, we are pleased to share the enhancement works done at 8 Exhibition Street.

The MF trip facility was upgraded to a larger bespoke facility to meet tenant needs for more premium amenities. It was launched in October last year for tenant tours.

Some ESG activities conducted in the last quarter of 2025 include a festive event held at Keppel Bay Tower that supported children from Care Corner Singapore, as well as building facade light up at Ocean Financial Centre in support of World Diabetes Day. We are pleased to announce that MBSC Tower 3 achieved the BCA Green Mark Platinum Super Low Energy, or SLE certification in December last year.

This marks a major sustainability milestone for the development, and it is our third Singapore asset to be granted this certification after Keppel Bay Tower and Ocean Financial Centre. Sustainability is integral to how we create and preserve long-term value.

We continue to maintain our positions on ESG benchmarks and indices. Furthermore, we are extending our carbon reduction commitment this year from the existing target of a 50% reduction in Scope 1 and 2 emissions by 2030 to a new target of achieving net zero for Scope 1 and 2 emissions by 2050.

At the asset level, our portfolio continue to uphold strong green credentials. As mentioned, MBSC Tower 3 achieved the BCA Green Mark Platinum SLE certification.

SLE buildings feature the best-in-class energy efficiency, the use of on-site and off-site renewable energy, and other intelligent energy management strategies. As at end 2025, all properties were green certified, except for top Ryde, City, which was acquired on 19 December.

This is consistent with our longstanding commitment to operational excellence and environmental stewardship. I will now hand the time to Xuan Lin, who will go through the market.

Thank you, Jason. The next few slides highlight key trends across the markets where Keppel REIT operates.

This slide shows the average rent for Singapore's core CBD Grade A office increasing by 0.8% quarter-on-quarter to $12.30 per square foot per month in the fourth quarter of 2025, while average occupancy increased to 95.5%. For the full year 2025, prime office rents increased by 2.9%, backed by resilient occupier demand and a tightening supply pipeline.

In 2026, only one new office development is projected to be completed. Accordingly, across major property consultancies in Singapore, there is a clear consensus that CBD Grade A office rents will continue to rise, supported by the scarcity of supply, combined with sustained demand for quality office spaces.

Latest projections by these consultancies indicate year-on-year CBD Grade A office rent growth of between 4% and 7% in 2026. In Australia, JLL reported that prime Grade office occupancies increased for Sydney, Perth and Melbourne CBDs in the fourth quarter and declined marginally in Macquarie Park compared to the previous quarter.

In North Sydney, there was a sharper occupancy decrease, primarily due to the recent completion of Victoria Cross Tower. Meanwhile, prime gross effective rents in Sydney CBD continued its upward trajectory, increasing from $1,067 per square meters per year in the third quarter to $1,084 per square meters per year in the fourth quarter, reflecting the resilient demand for quality office space.

Looking at the Australia's retail market, we note that household spending, both discretionary and non-discretionary, had seen year-on-year increases from 2022 to 2024. Total household spending remained strong in November 2025, having a 6.3% increase year-on-year, continuing the strong rises in services and goods spending seen in the previous month.

Data for December 2025 has not yet been released by the Australian Bureau of Statistics. In Seoul, market occupancy of CBD Grade A office was flat on a quarter-on-quarter basis.

Notwithstanding, the outward rent trajectory continues. JLL reported that the net effective rent for CBD Grade A office increased by about 1.4% quarter-on-quarter.

In the Tokyo office market, JLL reported that Grade A office occupancy increased to 99.3%, while Grade B office occupancy increased to 98.5%. Net effective rents for Grade A offices increased 5.3% quarter-on-quarter, and Grade B offices grew 3.7%, reflecting continued strong demand for office space in Tokyo.

That concludes our presentation. Thank you.

Thank you, Shenling. We will now take questions.

For analysts who are joining us on the Teams platform, please click on the raise hand button if you would like to ask a question and wait for our queue before you unmute yourself to pose your question. For the benefit of all participants on today's call, please limit yourself to two questions.

If you have more questions, kindly re-enter the queue. For those joining us online via the webcast platform, please type your questions via the chat box provided.

There was a first question from Terence. AP Morning.

Hi, morning, Terence. Hey, morning, Shenling and team.

Happy New Year.

Congrats on completing the acquisitions in December, but I wanted to ask on what your priorities are for 2026. I understand that Marina One is reportedly on the market.

Are you going to be looking at that too?

I think that the first slide that we presented, we really talked about our focus for 2026. As I also mentioned in the past, our focus is really to drive organic growth, especially for 2026, given the very low supply and high demand in the Singapore market.

Our Australian assets, we also want to continue to push for the best results that we can actually get. Of course, the other priority that we mentioned in the slides was also to reduce borrowing costs.

I also assure investors that I think that we have already done a fair bit of acquisition. We are not rushing to do any equity fundraising anytime soon.

The first half, we really want to dedicate towards asset management. Of course, if the time is right, if we do find these attractive offers for some of our assets, one or more of our assets, we could look at strategic divestments as and when we find we see the window open.

In terms of Marina One, we understand that is coming to the market. That is coming to the market in maybe the next one or two months.

It is a very large asset. It's expected to cost between 5 to 6 billion.

Just as a rough guide, the agent is saying that, of course, they will also take our MBFC Tower 3 transaction, taking that into consideration in terms of where the market price would be. It will be at a market cap rate estimated at plus minus 3-plus percent.

Of course, the rentals in this particular building are lower than MBFC. Obviously, the price per square foot is expected to be a bit lower.

It is something that the whole market will look at. Obviously, we will take a look.

If you ask me, is it possible for us to take down this whole asset given that it's around 6 billion, I think it's going to be quite challenging.

Okay. That's good.

Thanks, Yann. Maybe if I could ask a little bit on the leasing, since that's going to be the focus.

I understand you all shared that you leased up five floors at Eight Exhibition. Could you share when the current tenant comes off and when this replacement tenant kick in?

Also on ANZ lease, I understand in the medias that ANZ will be leaving OFC. Have you started to look at that lease?

Okay. There is...

I won't be able to name specific tenants in Exhibition. There's been a few.

You can read that there's been speculation who the tenant is. There's one particular tenant that we've been talking about.

They will be exiting the building towards the end of this year. They take up between eight to nine floors.

Then this lease that we have actually signed is actually for five floors. What I will be able to sort of give a rough guide is that the outgoing and the incoming rental is actually quite a big difference.

The reversion they are getting from this new tenant is around... Rather, the incoming rate is more than double that of the outgoing.

This new tenant will be coming into the building sometime next year. There will be a bit of a gap.

There will be a bit of a gap, close to a year, but the rental is double, or more than double actually.

Chris, that sounds great. Thanks.

Maybe I'll join back

in. Hold on, I haven't finished.

I haven't finished on this exhibition, then I will talk. Then you mentioned the other tenant in Singapore, I will address that.

We have also signed heads of terms with another tenant, which wasn't covered in the slides. That is for three floors, also in 8 Exhibition Street.

Similarly, the rentals that we are targeting for that is also more than double of the existing tenant. That one also will be...

but that one, the start date for that tenant will probably be sometime in 2028, probably in the first half of 2028. Okay?

Then moving to Singapore, I will not be able to confirm which tenant is leaving, but I think that for Singapore, any tenant that gives us space back in our CBD assets, whether it's OECMBSC, ORQ and MBSC, we really don't mind, especially if they are full-floor tenants. I think I've shared in the last two quarters that we have a lot of demand for full floors, especially in OEC.

If there is a tenant who leaves, there will definitely be a lot more demand to lease this space at much higher rates. I'm not sure whether that specifically interests you, but yeah.

Just a clarification for the two tenants at 8 Exhibition. I understand you are saying end of 27 and probably first half 28.

Is that inclusive of the tenant incentives already?

No, the tenant incentives for these two tenants is around between 35 to 38%.

Okay. The number that you quoted, more than double, is on a gross or net basis?

Gross. Great.

Thanks.

Thank you, Terence. Next we have Dale.

You can unmute yourself. Hey, thanks.

Morning, Dale. Yeah.

Morning, morning, Shianyang and team. Thanks for the presentation.

Sorry, I think Rachel was first, but I'll just proceed to ask. Okay.

Anyway, I just wanted to ask with regards to valuations in Australia in the local currency terms. I noticed that, the North Sydney assets valuations came off a bit.

Are you able to share more on that?

I think that our asset is doing well in North Sydney, but there is a general weakness in all the basically all the markets except for the core CBD. We have shared that the core CBD is very strong, similarly no increase in supply and strong demand.

It is flight-to-quality trend that we are actually seeing in Sydney. That's the reason why, because of the weakness, that's why the valuations for 2 Blue Street came down slightly.

Got it, got it. Just wanted to follow up, I think previously, we were talking about, interest rate savings, that will drive earnings going forward.

How is this coming along, and how should we be expecting your overall interest rates for this year?

I think that we, I think we've guided that we will see savings in interest costs, especially going into this year and also next year. Of course, you know how the REITs actually hedge interest rate, there are hedges that will need to come off.

That's why you have this smoothing out effect. When the interest rates went up very, very quickly, you saw that K-REITs interest rates remained relatively flat, went up quite slowly, and then we also peaked much later than many of the other REITs.

Similarly coming down, of course it works that way. The other way it also works against us.

You will see it come down gradually. I'm not sure whether that you can give any guidance, but we will see interest rates coming off.

As to the extent, I'm not sure that how much more color can you give.

Yeah. They also so previously, I think last quarter we guided that our outlook for 2026 for cost of debt would be in the low 3 to 3.3%.

I think that has not changed. I think one of the main levers that we are tapping on is to ride on the momentum of our refinancing exercise.

In last year, we have already achieved considerable savings on the margin front. We're riding on that into our refinancing activities this year.

We had also carried out some early refinancing for debt that were originally due in 2026. That was done in December last year.

We also achieved the same margin savings for those refinancing exercises, and we will continue to look to ride on that this year.

Thanks, Ad. Also just to clarify, this rate hike by the RBA, it won't derail this low 3% target interest rates?

Not for the time being. That was unfortunate that they hiked the rate, but I think it was a matter of time, really, whether it was yesterday or it is to be at the next meeting.

Yeah. That aspect we cannot control, but what we can control is really to pull one of the levers, which I highlighted earlier, and that is to drive margin savings.

Got it, got it. That's all for me for now.

Thank you.

Thanks, Dave. Thank you.

Next to Rachel, apologies for that.

Hey, hi, Shianyang and team. Thanks.

No worries. It's okay to let Dale go first.

A few questions from me. I think firstly, the 2 Blue Street rental guarantee, is it coming off in April 2026?

Do you expect your occupancy to trend up further before the rental guarantee comes off?

Yes, it does fall off in April. This building, you can see the occupancy is around 92-93%.

We are continuing to lease out the space. The building for now has actually performed better than underwriting for all the space that we have actually leased out.

Actually, technically, we can potentially drop the rates a little bit for the remaining space, which is on the ground floor and the level below, and then we will still meet underwriting numbers. I think we are still holding out for higher rates.

If you look at the total, because right now it's whatever we are getting plus that top-up. If we do not manage to lease out the space, there will be a slight drop in this particular building's rent, but it's actually quite small.

I mentioned just now that there is some weakness in the North Sydney area. Our building is really one of the better performing ones.

In fact, one of the best performing ones, and this is a brand new building. If anyone signs a lease, I think our building will be in the best position to actually secure a tenant.

It is a slower market, and we are still trying to release out this remaining space, which is why it's not so much about the rates, but it's really about the demand. We are chasing this demand at the moment.

The ground floor space is fully fitted, we are just waiting for the right tenant who likes the space, and then they can actually pick up this space.

After the underwriting, which means actually now at 92%, you're the same as your underwriting 100% occupancy kind of income levels, is it?

Not quite. Almost there, but not quite there lah, yeah.

Okay. Okay.

You did say competition is that Victoria Cross Tower, right? Could you, what's, like, comparative to your Blue Street, what's your asking rents versus their rents, and what's the pre-committed levels at Victoria Cross Tower?

Victoria Cross Tower, it's actually the vacancy is actually quite high. It's more than 20%.

Yeah. It's actually quite high.

Rental, their rental is around... Yeah.

Theirs will be a bit higher. I won't be able to specifically give you what they are asking for.

Got it. Yeah.

Then can I just follow up on the eight exhibition street, the two new leases? In terms of income contribution, when should we expect income contribution to come through?

Like I mentioned, one lease is end of next year, the other lease is in the first half of 2028.

When they move in, then we will get the income contribution. There will be rent-free period and stuff.

That's part of the incentives. Each of them is a bit different, but then it will be amortized.

Okay. I think that...

so, okay, wait. Yeah.

I think just now I also wanted to clarify the rental reversion. We compare the rental reversion on a like-for-like.

More than double rental reversion is comparing net to net and gross to gross. On a net basis, it is still more than double after incentives.

I think that this was something that Terence was asking just now, right? Yeah.

Okay. On a net basis, rental reversion is also more than double.

Correct.

Okay. The lease sign, the number of years of the lease that they sign?

The one that was just signed is a very long lease. It's very long.

Ten

years? I don't know, seven years.

Something like that, yeah. Okay.

More than seven years. I won't tell you how many years.

More than seven, more than eight. Okay.

Okay. Then the OFC lease vacancy that's coming up, roughly when is the lease that's coming up?

Hold on... October 2026, but they are talking to us.

This tenant is talking to us of potentially staying for another few more months. We are still working out with them.

It really depends on the new tenant that we can actually get, whether they actually want to come in. We might or might not give them an extension.

Not just sounding very optimistic. Good to know.

Okay. Then my next question is in terms of your divestments, do you think that it is now a good time to sell Korea or Japan office?

I know last year you said, they have very strong reversions. You want to ride on that, but then do you think Korea and Japan is good to sell

now? Definitely this year is a better time than last year.

We are still seeing healthy rental reversions. I think that I've shared that we are looking at it very closely.

If we can get the correct price, whether we can get the correct price, will we sell it? I think the answer is that we definitely would look at selling it.

Got it. All right, I'll jump back to the queue next now.

Thank you. Thank you so much.

Thanks, Rachel. Next we have Terence from UBS.

Hi, good morning. Hi.

Can you please help us characterize the relationship with Hongkong Land going forward? K-REIT used to be partners and now ostensibly competitors.

For now they seem to want to grow their private equity AUM. I'm just wondering, does it affect how you think about partnerships and potential stake sales?

Like if you look in the past in K-REIT's history, OFC, there was a stake that was divested to Allianz. In the current context, your valuations for Singapore office is indeed at a high.

Maybe just a little bit of a follow-on to that is, do you also see future opportunity for acquisitions if and when they do decide, on the private equity side, to exit from their funds?

Our relationship with Hongkong Land is still good. We are still partners in WRQ and MDFC Tower 1 and 2.

In fact, we just had the ExCo meeting last week. Things are as per normal.

It is, I think that, say what you like, we have always been partners and also yet competitors at the same time. Last time was Hongkong Land, us, Suntec.

Now it is still this industry, except for Tower 3, our JV partner there is DBS. Nothing has really changed.

Everyone, every company has their own aspirations. Every company has its own strategy.

It's our strategy. If you look at, between Keppel, you look at Capital Light, you look at Hongkong Land, Mapletree, all of us have similar strategies.

Suntec also has a similar strategy. Does that mean that our working relationship is not good?

I don't think so. I think that all of us are professionals.

We work well with each other. We are still working closely with them.

Obviously they have aspirations. They want to grow their portfolio.

Any asset manager wants to grow their portfolio. How do you grow it?

Where do you actually grow that one? I think is a question that you can actually ask them.

Even for us, right, are we expecting to just sit and do nothing? Obviously I don't think that is something that we are doing.

Will we compete? We will compete, but doesn't mean that we cannot work well together.

I'm not sure whether that is your specific, whether that sort of addresses what you are asking. Things are still working well.

We still have the partnership in terms of managing the assets, and we are still working together to produce the best results for the assets that we co-own together with them.

Got it. On Marina One, the five to six billion ask is a big range.

I think it's, like a 17% delta. Let's say if the closing price comes in towards the low end of that and let's say you get a high 3% cap rate, how would you expect the valuers to factor this towards, your valuations when the time comes?

It is not, okay, I think it's all speculation, right? Singapore premium office cap rates have always been around that 3.5% mark.

I don't know how the valuers will value this. Do they value this as premium?

Do they value this as more of a Grade A? Even then, the difference usually between prime between premium and Grade A, you're talking about maybe 20 bps difference.

Between 3.5 to 3.7. Logically, I would expect the cap rates to be around this kind of range.

If it ever goes to, your example is, say, high threes. If you ask me, the only reason for that is because of this particular size being so big that basically a lot of the buyers have actually been priced out because they are not able to come up with such a big quantum.

Logically, it should not be at this kind of cap rate, and of course just now what I mentioned to you between 5 to 6 is what is given by the agents, because you have to look at underlying NPI, you need to look at the cap rates, you need to look at the in-place rentals before you can determine what the fair market price would be. I think just on specifically on the question, how would the variables look?

There is a difference between, say MBFC and Marina One. Marina One, it is in the vicinity, but if you walk, you will understand.

If you walk, just try to walk to Marina One. It is a street away.

It is quite a fairly long walk. The difference between the ORQ and Marina One or MBFC versus Marina One.

You walk into the buildings, the feeling is different. You walk to MBFC, it's really, it's a different feeling versus Marina One.

You look out, you're looking at a swimming pool, you're looking at the swimming pool of the residential there, and the whole feel and ambiance of the place is actually quite different. I think it's a bit early to tell how the property will actually transact, but all I can say is that it is a bit different from a quality perspective between our building and their building.

Last one, quick one, just on ADS. Noticed that the valuation moved relatively little compared to, I think, Hsien Yang you were alluding to, the doubling of net rents.

Just curious why it didn't have a more material positive influence on the valuations?

Definitely has affected in the new leases, because the lease was only recently signed and the other lease, HOA, was also just recently signed. Got it.

Thank you.

Thanks, Terence. Next question, Xuan.

Hi, morning.

First question is on acquisitions. Do you rule it out entirely for 2026?

If not, what are the factors that you will consider? Specifically, can you comment on Keppel South Central?

The first question again, do I

rule out acquisitions? I understand it's not a priority, but do you rule it out for 2026?

Why would I want to rule out any acquisitions? Maybe that's my question back to you.

There's no need for me to rule out. All I say just now is that we are not actively looking at anything, especially for the first half.

Second half, could we look at something? Of course, answer is always possible.

Are we going to do it without considering any divestments? Answer is probably not.

I think if we want to buy something, as I have mentioned to a number of you, it's only logical for us to consider doing some divestments first before rushing to do more acquisitions. We are not rushing to do it, but there is no reason why I should come and say to stop work and not look at any investments.

That's just not very, very logical from the way we look at things. Your question was, the other one was on Keppel South Central, right?

I don't think there is any further update. What I mentioned to you is we have not commenced discussions with the sponsor for this asset.

My understanding is that the occupancy is still not at a level that makes it interesting for us to start discussions with them at this point in time. Of course, even if the occupancy level is at a level that's high enough for us to talk about, there's still a lot of things that we need to figure out.

For example, what cap rate do you acquire that at? What's the price per square foot?

What's the in-place rentals? There's a lot of things that we need to look at.

At this point in time, we haven't started even looking at it or considering even to talk to the sponsor for this asset.

Got it. The second question is around rent reversion.

If I compare the gap between expiring and signing, it's around mid-single-digit reversion. Is that fair based on your current leasing discussions?

No. I think that we have only just started the year, right?

How are the rental rates going to go this year? No one really knows.

No one really knows. You are just comparing spot, but the market rentals can move quite quickly.

It is a bit too early to speculate where the rental reversions will be for this particular year. I think that, like what I mentioned, we want as high a number as possible, we will continue to work towards that.

What I can share is that there is continued demand in the market for especially quality and premium office space. We are going to capitalize on that.

If I recall one, two briefings ago, you were guiding for double-digit reversion for 2026. Does that still stand?

That is the aspiration, of course. Got it.

Thank you.

Thanks, Xuan. Next question, Donald.

Hey, hi, Sunya. How are you?

Hi, hi, good. Follow-up questions, also back to acquisitions, how's the appetite for Australia retail right now?

Given that lots of transactions in the market and demand is starting to really nicely pick up, and also to follow up on that is any color on your operational performance for Top Ryde, in terms of leasing spreads and so on?

I think that it's not just Australia. I think Singapore also has, we have seen a number of transactions being recorded both in Singapore and Australia.

There is also a lot more people looking at retail. It is everyone sees the strong tailwinds, people are chasing these deals.

In Singapore we have seen Clementi mall transacted at quite a good cap rate, and then of course recently we have seen Anchorpoint and White Sands come to market in Australia. There are also a number of transactions happening, including Westfield, Marion in Adelaide, this is owned by Cascadia in Singapore.

There's a few transactions. Like I said earlier, of course there's no reason why we shouldn't look, but the acquisition is really not the priority for us, especially in the first half.

We take some time to digest what we've actually done first, and then we'll focus really on asset management. Second half really depends on where we see ourselves and also dependent on divestments that we might be looking to do more if we can recycle some capital.

That remains unchanged. Notwithstanding what transactions happen in the market, I think that is something that we certainly will do, and this is something that we will keep to, at least for the time being.

On

capital allocation, yeah, maybe capital allocation would be...

Sorry? You mentioned capital allocation.

Yeah. I think previously, for the top Ryde acquisition, you were talking about not more than 20%, something like that.

Does that still hold?

I think that still holds. I don't think we are looking, but having said that, it's not like we want to go to 20%.

It really depends. That is just like we just set ourselves like an upper limit, but we are happy to just own Top Ryde for now and like I mentioned, we are not looking to just go out and continue buying.

We want to take this time to sort of reflect and also to focus on the management. I think you will ask about Top Ryde.

You will be able to see the contribution of this asset from first quarter onwards. We will not be able to share too much at this point in time.

I think, based on the work that we have done so far together with our partners, definitely in line with underwriting, we are hoping to exceed our underwriting for this asset, at least that's the expectation. The demand continues to be very, very strong, especially for space in this particular building.

Then Cap rate, maybe just a quick one here. You didn't quite ask that, but I think we are starting to see a compression of cap rates, both in Singapore and Australia when it comes to retail assets.

Got it. On the debt side, before your guidance of low 3% to 3.3% WACC, feels a bit slow in terms of the decline.

The question is, any color on the currency breakdown on the expiring debt for 2026 and 2027? Is it more Aussie?

26 would be, I would say, okay, we have a medium-term note, so that's in Sing. The remaining bank loans are split between Korean won and Aussie dollar.

That's for 26.

Sorry, 50-50?

Yeah.

Okay. So 50% SG and 50% Aus and Korea.

Yes, that's right. I think maybe just

would there be a reasonable reason why the taper is a little bit slower and it would come in more in 2027? What's the breakdown in 2027?

I think I need to get back to you separately on the breakdown for 2027, but yeah, the reason why it is not going to taper as quickly as maybe expected is because we don't have that much Singapore dollar debt that is unhedged or floating. Also the refinancing, because it's only just that medium-term note that we have, which is currently about 3.72, but whilst we think we could get a good rate when we refinance that at closer to the end of the year, I don't think that will move the cost of debt significantly downwards.

Your floating, you say, is mostly offshore currency?

My floating is yes.

It's mostly Aussie?

Aussie and won.

Okay. Sorry, I don't want to harp on this, but last question, on the 8 Exhibition, can you confirm that your income contribution for your first tenant that is going to lease up five floors will only come in in 2027?

Then the remaining three floors is 2028.

Correct.

That would be the whole building?

No, no. This building has many, many floors.

We are only talking about two leases, yeah.

That would be somewhat around, sorry, can you remind me, how many percent of GRI?

This whole building has 35 floors. Okay.

So 35-story building, yeah. Proportionate.

Okay. That's all from me.

Thank you.

Donald, just to get back to you on the breakdown of the loans for 2027. For Singapore dollars, about 60% of the total debt due in 2027, Aussie is about 30%, and the remainder is Japanese yen.

Thank you, very helpful. Thank you, Don.

Thanks, Donald.

Next, can we have Vijay.

Just a couple of questions. Just a couple of questions for me.

Firstly, in terms of Singapore CBD office demand, can I get some color in terms of, is this still driven by flight to quality? With now the gap widening, do you see this flight to quality slowing down, or even possibly reversing?

Maybe also give some color in terms of new or expansion demand. Is this from new setup that is coming to Singapore?

It is, I wouldn't say it's all flight to quality. It's really a good mix of, yeah, we have quite a lot of expansion.

In OFC, we are seeing a lot of expansion at the moment. Our priority is if our tenants want to expand, we will give them space.

For OFC, there are one of the, I won't mention who are the tenants, the only reason why this tenant is leaving is because we can't give them additional space. They actually asked us for, they have two floors.

They asked us for one additional floor. We are not able to give it to them, and that's why they are actually leaving our building, going to another building.

That's the only reason. In fact, I just caught up with them.

They actually quite sad to leave, but they just needed one extra floor that we're not able to give. OFC, like I mentioned, is mostly expansion.

The new tenants that we are talking to are not flight to quality. They are all, okay, no, okay, the majority of them are new, new tenants altogether.

Some are, you can say flight to quality. They are all moving from other buildings, yeah.

Across our Q and MBF-C is a good mix. It's expansion, it is new tenants that could be flight to quality, but it's not.

It's not like what you say majority flight to quality. Not quite there, yeah.

Okay. Can you give some color on who took up the additional space in Keppel Bay Tower?

Is this from an existing expansion, or is this a new tenant in the same area?

These are new tenants.

Okay. My last question, would you consider share buyback as a strategy?

I think we did mention that we stopped our share buyback program because our gearing was at a slightly more elevated level. Now that our gearing has come off, if we do some divestments, then share buyback is definitely something that we are looking or considering.

Only upon divestments?

Not now, yeah. Definitely not now.

Once we have done some divestments, as and when we do it, we could look into that. Thank you.

That's all I have. Thanks, EJ.

Perhaps I think we're just in time for one last question from Derek. Hi, morning.

Hi, morning. I

just a follow-up on Hsien Yang's comment on Singapore retail as potentially attractive. Would that include your sponsors, Iwan 2

Mall? We are not looking at it at this point in time.

Yeah. I think that's all I can say.

This asset, I think they have been doing repositioning and all that. I'm not sure of the latest, but yeah, that's not something that we have considered.

That's why, hence my... I just wanted to check because they've been doing it for quite some time already.

Yeah. For Sebas, I think I just want to ask on the tax expense this time around, $9 million.

Is all that from withholding tax in Australia? That's cash, right?

Yes. Part of it will be withholding tax.

There is also a deferred tax component that we will provide for when there are valuation increases in Australia, Korea and Japan. Because there are capital gains tax regimes there, we have to provide for some deferred tax, or rather exit tax, when the valuation increases.

The $9 million is all cash, right? It hits the PDI.

Oh, no,

no, no, no. The deferred tax component is non-cash.

That will only be realized when there is an actual exit or divestment. The remainder will be withholding tax that is actually paid in cash.

How much of that is withholding?

Much of it was withholding. Sorry, can I get back to you on this one?

Sure. All right, thank you.

Please go ahead.

Thanks, Derek. I see that Terence, please go ahead.

Thanks.

Sorry, just a quick question from me. I want to ask on how's the tax transparency for Q3?

When should we expect that to come in?

We have started work on this one already. We're doing the documentation.

I think the last time we mentioned it should take around six months. That's the timeframe at this point.

That's good. Also for the new borrowings for MBFC Tower 3 and the acquisition side, what were the loan rates that we secured for the T3 acquisition?

Actually when we bought Tower 3, there was already debt in place, which is locked in. Our own debt, we only took a very, very small loan.

That one we borrowed at mid-double digits per annum, plus minus a bit.

The holding cost?

Under three

percent. Okay.

Thanks. That's all I have.

Let me just get back to Derek, Morgan Stanley's question. For the income tax for the year, that's 13.7 million.

About nine million was withholding tax being cash.

Derek, you still have your hand raised? I believe you're okay, right?

Thanks, Derek. Thank you everyone.

We've come to the end of the call today. Thanks for joining us.

Thank you.