Good morning, ladies and gentlemen, friends from the media, analysts, bankers, investors, and fellow CDL colleagues. My name is Belinda, and I'm the Head of Investor Relations and Corporate Communications at CDL.

As we are still within the Chinese New Year celebration period, I take this opportunity to wish everyone in this room a happy, healthy, and prosperous year ahead. Xīn Nián Kuài Lè, Wàn Shì Rú Yì, Shēn Tǐ Jiàn Kāng.

On behalf of the CDL management, welcome to CDL's briefing on its unaudited financial results for the full year ended 31st December 2025. Now this is a hybrid briefing format with both in-person here at the M Hotel Singapore and those joining us live on webcast and joining us virtually.

Thank you all for being here with us this morning. For today's briefing, in line with CDL's environmental sustainability conviction, we will not be providing printed materials.

Instead, please scan the QR code on the screen to download or view the following documents that were uploaded to SGXNet as well as our website before trading this morning. Now on this website, you will find a copy of the detailed financial statement, a press release summarizing the key highlights of our FY 2025 performance, a presentation deck that the management team will be using in a very short while.

For all our guests joining us live on webcast, you will similarly be able to download these documents, which are available on CDL website. I would like to introduce to you our CDL management panel.

In the center, we have our Executive Chairman, Mr. Kwek Leng Beng.

On his right, we have Mr. Sherman Kwek, our Group CEO.

On Chairman's left is Mr. Kwek Eik Sheng, our Group Chief Operating Officer, and on his left, Mr.

Chia Ngiang Hong, our Group General Manager, and nearest to me, Ms. Yiong Yim Ming, Group Chief Financial Officer.

Now the format of today's briefing will be in two parts. We will kick off with a presentation of some of the key highlights of our performance, followed later by a Q&A session with our panelists.

Without further ado, I would like to invite Mr. Sherman Kwek, our Group CEO, to kickstart the presentation.

Sherman, please.

Good morning, everyone. Good to see you here again.

Feels like the last analysts briefing was a long time ago, but really it's every 6 months. Happy to be here.

Albeit every year I see you, I have less hair. Good to see you all.

This year, obviously we're going to have more positive and upbeat results to report. We started off with a slide that shows you, I think, the key achievements that we did last year.

As we committed to everyone, we were going to accelerate our capital recycling. We're happy to announce that we have achieved $2 billion in divestments, and we were very selective in our acquisitions.

Really what we invested were in three GLS sites in Singapore as well as a hotel in London in Kensington. At the same time, you can see that last year was a very strong year for us in the Singapore local market.

In terms of residential sales value, we achieved $4.35 billion, which is the highest in our group's 63-year history. We're really pleased with that.

The 1,657 number includes ECs as well. If we use the corresponding number released by the URA, including ECs, it's about a 13% market share.

It'd actually be higher if we excluded ECs because last year we sold more non-ECs. Last year was a good to see that the market came back with more stability and strength.

Last year, the total developer new home sales was about 10,800 with a modest price increase of 3.3%. This has really outpaced the 3 years preceding that where annual volumes were about 6,000 to 7,000.

Of course the high was in 2021, right, when we saw about 13,000 new home sales and a price growth of close to 11%. Actually we like that.

We think that that's a sign of a more stable, healthy market where moderate price growth, but the volumes have really come back. We've also seen that the Core Central Region, the CCR, has also come back in favor.

There were a couple of years where really the RCR and the OCR were getting all of the action. Last year was good to see that the CCR was finding favor again.

I think it's a change in lifestyle. Of course whichever region you're talking about, the bulk of the buyers tend to be Singaporeans, majority Singaporeans or PRs.

There's a very small percentage of foreigners buying. That's the same with Newport Residences as well, which I will profile later.

Across our commercial portfolio, you can see that Singapore office, Singapore retail, and of course our also sizable UK commercial, which is the three commercial buildings we have there, all showing very stable and strong occupancies. Our hotels managed to eke out a slightly higher RevPAR, even though globally the performance was quite mixed last year.

In terms of our FY 2025 financial highlights, we have revenue of $3.6 billion, which was a 9.7% increase from the year before. Obviously we have a really nice PATMI of around $630 million, up over 200%.

PATMI would have been higher, so-called even closer to the $800 million if not for the fact that we thought it would be a prudent time to do some impairments. We did $155 million of impairments and foreseeable losses, mainly for our two China commercial properties, lah.

One was this Shenzhen, which is a business park, and business parks are primarily office in nature, the commercial market is really struggling very badly in China, which should not come as any surprise to all of you. Then the other one is also for commercial complex in Shanghai.

That was a bit of a pity, otherwise we really could have reported an even stronger set of results. Nonetheless, we're still happy at where we have arrived at.

You will see that actually the gap between our NAV and the RRNAV, the one where you fair value your IPs and hotels, is narrowing. Despite the fact that we did a lot of capital recycling last year and had contracted divestments of $2 billion, but the NAV has gone up because, as we sell, and especially above book value, we're really crystallizing a lot of value.

Obviously that goes into retained earnings, which drives up the NAV. Really glad to see us narrowing this gap and unlocking the value.

As some of you would have seen this morning when we released our results, hopefully the dividend comes as welcome news to our shareholders. We proposed a final ordinary dividend of 25 cents.

Added to the 3 that we paid in the interim is 28 cents, which is a 40% payout ratio. At the same time, we've also committed to a new dividend policy because in the past, while as management we had always articulated that we would try to pay out a third every year, but it was really never formalized in our policy.

I think it'd be a good thing to really show our commitment to sustainable shareholder returns. We will pay a minimum of 35% of reported PATMI every year.

Share price last year really has rebounded nicely. Of course we had some of our own internal issues in the earlier part of the last year, but we're glad that we managed to get them resolved.

Despite the macroeconomic challenges, we pushed forward. Global portfolio, obviously the one worth looking at is the bottom line because that's where you fair value so you get a full sense of our assets like.

Singapore always makes up around half of our asset base with the rest spread towards UK, China, and others. As mentioned earlier, we really strove hard to ensure that we recycle capital at a higher pace, especially since we wanted to try to bring our gearing down.

Gearing did go up in the end because we ended up winning more GLS in Singapore than we expected, and of course we had that hotel acquisition. All in all, gearing's at a manageable level, and we will target in the midterm towards bringing it down in a very significant manner.

Just to give you a snapshot of the last couple of years from 2023 to 2025 what our capital recycling focus has been like. Most years the blue bar, the acquisitions will usually surpass the yellow bar, but last year we were fortunate where the gold bar actually was higher.

Again, that was because of our efforts to accelerate our recycling. Two things I want to mention here.

One, some of you would have heard me say this before, is that the gold bar includes all the land we buy in Singapore. Obviously when we develop into residential and sell the individual units, that's not in the blue bar.

Okay? It's a bit of a mismatch and works against us in a way, but it's a way to be very disciplined.

Okay? The second thing to mention is that sometimes you will see in our results and financially, in our accounting there may be some difference in terms of when the acquisitions or divestments happen, but we don't double count.

An example is Simpang Bedok, right? We signed the land tender with the government and were awarded the land in December 2024, but we only made payment in January, right?

I count that in our acquisitions in 2024, but cash-wise, the cash only left our balance sheet and therefore financially, P&L-wise, it's shown in 2025. Likewise last year, we announced a bevy of divestments and all were completed in 2025 except for Quayside Isle, okay, in Sentosa.

When the deal goes hard, when I sign and it goes hard, we show it as a divestment. That was in December last year, just 3 months ago.

We actually completed it in February. Again, a bit of this accounting mismatch, but, as I said, we don't double count, we show that strictly in the year that we announce it, that's the year that it gets shown at, but sometimes on the P&L it may be a bit different.

This is our Singapore residential launch pipeline. Really happy that we have a launch pipeline of 1,820, and we look forward to hopefully replenishing a little bit more land this year, even though we are very fortunate to have won one of the first few GLS tenders of the year, which is Tanjong Rhu, which is an amazing location.

We're very excited to unveil our project there. That's a 90-10 JV with our main contractor, Woh Hup.

As you all know, the other sites were acquired last year, which is Woodlands Drive 17, Senja Close, and Lakeside. Lakeside will be launching in the second half of this year.

You can also see some of the launches on the right-hand side that we had launched two last year, one this year. One was The Orie in Toa Payoh, and that has done really, really well, above our expectations.

There's Zion Grand, which also did really well, I was very relieved and pleased to see that. Of course Newport, which thankfully has also done well, which we launched in January.

This is Newport Residences. This is part of a mixed-use complex.

It used to be the Fuji Xerox Towers, we're revamping it into residential at the top, serviced apartments in the middle, and office in the lower third of it. It is freehold.

Really glad that I think we have achieved good sales. The average pricing that we've achieved so far, I know there's been a bit of confusion in market because the $3,370 is actually what we've priced it at and target to achieve for the whole project, currently it's around $3,200 thereabouts.

That's the actual pricing. Sorry if there was a bit of confusion the way we wrote the news release.

Really excited about this project. We really designed it to be a super luxury, ultra-luxury residence.

Of course I'm still waiting for that unique buyer to contact us to buy that very special penthouse unit, that 13,000 square foot single-story penthouse unit with dedicated lift just for that unit and dedicated car parks as well. Hopefully we will secure that buyer in the course of the next few months.

Then our commercial properties in Singapore have been very resilient. The last couple of years, the office and retail markets have been very stable, both from a rental and occupancy perspective.

Good to see that our buildings are doing well as well. One big news was the strong pre-leasing commitment that we did at Union Square Central, which is the former Central Mall, and we bought Central Square next door from Far East Hospitality Trust, amalgamated it was total of three sites.

Amalgamated it together and are developing this new mixed-use development that's going to be very exciting when it's done. The office component, we have leased out 52% to a single tenant, a government agency.

Really happy with it for a very long lease. The project will only complete in around 2029, a couple more years to go.

Then we have also driven AEIs. As you all remember, in 2018 we did the AEI for Republic Plaza Tower 1.

Including the lobby and everything, that was really big works. That took us 18 months and around $60 million to get that AEI done.

That was a very, very tough effort. Really happy we've seen very positive rental reversions after doing that.

We thought we can't leave out its smaller sibling, which is Republic Plaza Tower 2, we've done that now and more or less completed the AEI, just progressively doing the lift modernization. Really happy with that, too, and committed occupancy is 100%.

Then there's City Square Mall where we also went through a big AEI. I hope some of you have been to see it since we've completed.

Very excited with the mall and how it looks now, and it seems to have received very positive feedback from all the visitors. Global hotel portfolio, and we continue I think to look towards refurbishing some of our hotels that are located in strong locations so that we can continue to optimize our portfolio.

We have M Social Resort Penang as well as M Social Hotel New York Downtown, both of which used to be branded Millennium. These are the hotels.

Then of course we have an ongoing development in Sunnyvale, which is in California, and that's for a 263-room hotel as well as we're currently undergoing the AEI for this Millennium hotel that we have in Knightsbridge on Sloane Street. Global Living Sector portfolio, it's gone down slightly because we did sell off our Sunnyvale PRS, the Sunnyvale multifamily asset.

It's around 3.7 now versus 3.9 before sing dollars. It's still a sizable portfolio.

I have to admit, we have not monetized it as fast as we should have. Really us building up this was firstly a diversification for CDL other than doing our usual residential for sale and offices and retail for lease.

The Living Sector is something that we really believe in, and it's something that plays up to our expertise, right, of property development, asset management, as well as hospitality, right, service. We really focused on investing in this sector over the last couple of years and built it to actually I would say a very good scale.

There are many assets in there that are performing very well. We did this not only to enhance recurring income and diversify our asset class, but really was also to seed our fund management.

I have to admit the fund management efforts have been slower than we would have liked, but we are very, very focused on that. This year I hope to really accelerate that so I can come back with good news to you by the time the half-year results swing around.

It's a very, very good and nice portfolio for us, and lots in there that we can play around with from a private and a public market's perspective. I thought I'd just put up this slide also because I realize that in reading the analysts' research reports, many of you occasionally will write about these sites.

Yes, this is what we call it legacy. It's not super old, but it is acquired between 2013 to 2017, okay, and there's an external development manager that's managing all these projects.

We have to say that this portfolio has underperformed, therefore we endeavor to recycle this as quickly as we can. You will see that we have sold Ransome's Wharf, we did that at the end of 2024.

We're happy that was sold for about £70 million. Then of course Sydney Street was a development where it's nine units and we have gradually sold that, and so all those nine units are sold out.

There are all these other sites that we have to clear out, right? There's Pavilion Road, which is currently operating as a car park, and that one should give us very strong gains because we are receiving a lot of very outsized offers for that property.

It's very near the Harrods. Then there's Stag Brewery, which is a 1 million square foot of land development in Richmond in London.

Stag Brewery is formerly the site of this brewery operations, hence it's called Stag Brewery. It's in Mortlake, Richmond.

This one, as you all would have seen in the news as well, last year in 2025 we finally got planning approval after 10 years. Now that we've got the planning approval, we don't want to build it out, we're going to move to see how we can monetize this as quickly as we can.

Development House is actually an office building that has permits for redevelopment, but we're assessing again how best to unlock value there. Teddington Riverside is a bit sad.

It was a land that we bought and then we actually have built out and completed buildings with a total of 224 residential units, but unfortunately 148 remain unsold. It's something that we really have to accelerate more.

Some of the things we're looking at are potential bulk sales of the units to buyers that may be interested. Then there's lastly Chesham.

Chesham Street is a very upmarket place in Belgravia, but it's six units, but again took very, very long time, and we've only sold half of it. Again, all this with Ransome's was almost close to $1 billion, now it's about sing dollar, it's about $800 million that's sitting on our balance sheet.

This is something that we are very committed to unlocking the value there and monetizing it. I just wanted to flash this up since I know it's been mentioned quite a few times.

Won't spend too much time here, but last year we were also grateful to have received industry accolades, and we did make a sizable donation, us in partnership with our Chairman, Kwek Leng Beng. Together we donated to SIT, and there's a administrative building there named in honor of him.

Of course we also launched the CDL Ecotrain at City Square Mall, which has been very, very popular with a lot of visitors, especially those with interests in sustainability, and of course the rest of the accolades on the right. As mentioned earlier, we endeavor to give sustainable shareholder returns.

This was some of the feedback that we have gotten from investors, which is why is there no clear dividend policy articulated. I think we really discussed it as management and at board, and we decided that, look, let's really commit to paying minimally 35% based on our reported PATMI.

Of course this year for 2025 we have decided to do 40% payout ratio. I think, yes, there are some companies out there that probably have more aggressive dividend payout ratios, but I think we also need to ensure that we leave some flexibility.

There's always a balancing act between us using the cash to pay down debt or to deploy for new acquisitions and investments. We thought will give us some flexibility, but at least it's a floor and it's a commitment to our shareholders and it's something that's sustainable, right?

If I go out announcing some super high number, it may come back to trip me up in future. Happy to announce a total dividend of 28 cents for the year and a record TSR last year of 62%.

Last slide for me before I pass to Yim Ming. We continue, okay, to look towards our value creation and our value unlocking.

We have to continue to drive forward with our capital recycling. As I've mentioned to you all before, this is not a one-off that we're going to do for 1 year or 2 years.

From now on, capital recycling is be very much a part of our business as property development and asset management, right? We don't just develop properties to sell or manage our office and retail portfolio.

We're also in a business of investment, right? Things like our Osaka hotel, we buy it and 2 years later we sell it for 60%, 70% above valuation.

That's a sign of a good investor, and we will not hesitate to monetize opportunities like that. Capital recycling is business as usual for us and to me it's core, okay, because it's part of what we do.

In portfolio optimization, we continue to optimize and see where are the geographies and asset classes we need to be in. Fund management, as I mentioned earlier, something we do need to pay more attention to and put in more effort into accelerating.

Need to continue to keep our eyes focused on the ROE, although that's more of a midterm thing because I need all the other pieces to fall in place and then ROE will take care of itself. Capital management, we're still prudent about managing our cash, our capital, our gearing.

Recurring income, we continue to drive that, and that's been helped also by our Living Sector portfolio. Diversification is still important.

Singapore is an important market to us, will always remain probably our biggest market, but we do need to have a diversification across geographies and asset classes. Of course sustainability, right, something we have to do our part for the world.

I guess before I hand it over to Yim Ming also, I may as well just mention this since it's also people in the market have gotten wind of it, is that sometime in around September last year, we engaged a global advisory firm to help us do a strategic review of our entire strategy and operations. We are still in the process.

The first step that they did was do a investor perception audit, reach out to a slew of buy side and sell side in order to really get feedback for us, right? How are we viewed by the market, by shareholders, by investors, by analysts?

Where are their perception gaps? This feedback has been extremely helpful and has allowed us to then journey on together with them.

For management and the board to really go on this journey where we want to come up with something that will close this perception gap and that will give you even better guidance as to where CDL is heading towards and allow you to measure us and hold us more accountable for what we say we're going to do. We're still in the process, I can't talk too much about it, but in terms of timeline, I hope that by no later than the middle of the year, by June, no later than June, I hope we'll be able to announce something to everyone.

Thank you very much. On to Yim Ming, and I'll field your questions at Q&A later.

Thank you, Sherman. Morning, ladies and gentlemen.

I'll start off with this chart. Pleased to report there's growth in all three operating segments across all three key metrics: revenue, EBITDA, and PBT.

Three is my favorite number. For revenue, the group reported a 9.7% increase in revenue for FY 2025.

This slide shows revenue by each segment. While PD contributes 33% to total revenue in FY 2025, the increase in revenue is actually attributable to this segment, which increased by 24%.

The steadfast execution and successful sales launches are commendable, and our Singapore PD segment delivered a stellar performance. Projects that contributed included The Myst, Norwood Grand, and Union Square Residences, as well as the sale of Ransome's Wharf and the office component of Hong Leong City Center in Suzhou.

DPs that are joint ventures are equity accounted for, and the revenue do not include these JV projects. On a like-for-like basis, the revenue from these JV projects would have contributed $1.8 billion to 2025 revenue.

Hotel operations takes up 46% of total revenue and increased 1.7% in FY 2025 following a 1.3% increase in RevPAR. The increase in RevPAR is due to Australia and New Zealand portfolio, New York hotels, rest of Europe with the acquisitions of Hilton Paris Opera in May 2024 and Holiday Inn Kensington in December '25.

One outstanding hotel is also in UK, which is our The Biltmore Mayfair. Please go visit there if you visit the UK.

This more than covers the poorer performance in Singapore where RevPAR decreased 5.5% due to fewer large-scale events, higher room supply, which intensified price competition. One of the other hotels that we didn't do as well is our Beijing hotel, which has weaker performance because of the China economy slowdown.

For investment properties, the revenue is driven by higher contribution from City Square Mall as well as Jungceylon Shopping Center in Phuket, following reaping the benefits of our AEI programs. On EBITDA, EBITDA stands at $1.5 billion for FY 2025, 43% higher than 2024.

EBITDA demonstrates strong cash generation, and it's one focus area we look at very closely. Our target is typically a $1 billion annual EBITDA for healthy cash generation.

This outperformance $1.5 billion EBITDA was due to our capital recycling gains. PD, property development EBITDA increased 81% to $261 million for 2025.

Other than the projects earlier mentioned for revenue contributors, the other JV projects that contributed to EBITDA included the fully sold EC Copen Grand, which obtained TOP this year, Canninghill Piers, The Orie, Kassia, as well as Tembusu Grand. For FY '25, Sherman mentioned we made an $80.5 million of foreseeable losses.

For hotel operations, EBITDA increased 35% for FY 2025. This EBITDA included capital recycling gains from JW Marriott and Comfort Inn.

Excluding such capital recycling gains and impairment write-backs, hotel operations EBITDA dropped slightly by about 5% with cost pressures as GOP margins fell 1.4% due to weaker performance largely in Singapore and rest of Asia. For investment properties, they are the biggest contributor to EBITDA, contributing 46% of total EBITDA.

This segment saw substantial capital recycling gains, offset by impairment losses relating to two commercial properties in China, one of which is slated for sale and has been transferred to asset held for sale. Notwithstanding, our resilient performance of our commercial properties and the growing Living Sector reflected about 8% of performance in this asset performance.

Next, we'll move on to PBT by segment. The explanations are largely similar to EBITDA earlier.

PBT more than doubled to $772 million. Once again, investment properties is the biggest contributor.

All three segments reported improvements in PBT versus FY 2024. This jump is big.

For hotel and investment properties, they improved by 33% and 145% respectively. Property development improved multiple-folds.

This is due to the fact that profits from property development is lumpy in nature. In last year, there was no EC TOP, there was high financing cost, and there was construction delays.

2025, we have a TOP for one of the EC as well as very good construction progress and a softer financing environment. PBT is impacted by financing cost.

On financing cost, our gross interest expense has decreased by 12% to $520 million. We hope to see this trend further down in 2026.

Sounds like broken record, we depreciate our investment properties. In challenging circumstances like today where we encounter valuation headwinds, I think this conservative accounting policy of depreciating does manifest in its benefits.

On capital management, continue to have strong and robust fundamentals. We have a balanced debt expiry and currency profiles.

As for bonds that expiry in 2026, we will look to issue new bonds. Gearing at 71% vis-à-vis last year at 69%.

We mentioned other than the $1.7 billion acquisitions for three GLS and the hotel, we also paid for Simpang Bedok site as well as CapEx on our investment properties. This offset by our recycling efforts of $2 billion that Sherman mentioned earlier.

Cash of $2.1 billion with uncommitted undrawn credit facilities of $4.2 billion, very, very strong position. If you wonder why is that the cash dropped from $3.1 billion to $2.1 billion, it's because we have set aside money in December 2025 to pay for Simpang Bedok.

Interest cover also improved to 3.6 times on the back of stronger EBITDA. For fixed debt, we're at 44% now.

70% of Singapore debt is actually fixed and 11% of GBP debt is fixed. This puts us in an advantageous position.

We are able to seize better opportunities or rate cuts by Bank of England. Average borrowing cost went down nicely to 3.7%.

My last slide, for FX risks, we do not take speculative position. We do a lot of natural hedging.

We're very comfortable with a 77% natural hedge. I think if one were to ask why is the renminbi hedge is a little bit low, and we all know that we cannot borrow for land in China, which is why that's a slightly bigger exposure for renminbi.

Other than that, we acknowledge there's challenges in USD currency, there's volatility, but we're managing it. It's definitely within our risk tolerance levels as well.

With that, I hand over back to Belinda.

Thank you very much, Sherman and Yim Ming, for the presentation. We would like to move to the second part of today's briefing, which is on the Q&A.

Please feel free to ask your questions, and my colleagues are standing around the room with microphones. If you have any queries, I see a hand, please raise your hands and they will come to you.

For those who are joining us on webcast, you may post your questions by clicking on the question tab. Before asking your questions, may we please request that you introduce yourself and the organization that you represent?

I'm just going to go straight into opening up the floor. Wow, okay, I have everybody here first, I'll just go down to the first row first and now go to the second row.

Maybe we'll take with Mervin first? Yeah.

Hi, Mervin from J.P. Morgan.

Congrats on the strong results and strong share price performance, which I think reflects the market's confidence in your leadership, Sherman. Two questions from me.

Obviously, I'm sure you receive a lot of feedback from investors in terms of how can maximize value, improve the operations. Is there any particular feedback that resonates with you the most, and where's the main perception gaps?

Second question is on cost of debt, significant drop to 3.7%. Any guidance for this year, and if you were to sell your UK assets, the $800 million, how much is the current UK debt at this point in time?

Thanks.

Thank you, Mervin, and appreciate the kind and encouraging comments. We received a lot of very detailed feedback, which was extremely helpful, and some from the analysts seated in this room, those whom the firm picked.

There were many more perception gaps than we realized. I think certainly one of the things we look towards doing is right-sizing our portfolio as well as ensuring that we tweak our so-called capital allocation priorities from a geography and a asset class perspective.

That's something we're still in discussion. There may be some changes that may be coming up.

Also, of course, I think one of the things that came through very strongly from this exercise was on the disclosure side. While I think I've traditionally viewed us as a company with pretty good disclosure, I think we've been pretty open and transparent about all of our activities and our results and the things we are doing and our strategic priorities, but certainly one thing that we could do better, I think, is to provide more signposts, more wayfinding, for investors to show them how we're going to progress forward in the next couple of years, and so that they can really figure out for themselves if CDL executes on everything that they have laid out, okay, what will the CDL of 3 years or 5 years from now, what would that look like?

Do I like what that looks like, right? That can also form part of an investor's so-called determination of whether to invest in our stock.

I think that's the fair thing to do is to provide stronger guidance and more concrete numbers behind it. These are the things that we kind of got out from it.

Yes, on a more micro level, on strategy side, there are also quite a few feedback that I think we take very seriously. Obviously, we can't talk too much about it right now, but it will probably involve rebalancing some of our portfolio, too.

Second one, I think, Yim Ming, you can take.

For cost of debt guidance, I don't expect anything more than 3.5%, and that's probably conservative. For UK debt portfolio, we do central treasury as you have seen many times, unless we have some good investments, we will obviously go towards reducing that in entirety.

In the first row, maybe, Derek, I'll take yours, and then I'll move to the second row.

Thanks for the opportunity. I guess just on the results itself, it's as good record PATMI, but just a bit of noise over there.

If you strip out all the one-offs, divestments, impairments, etc., what is the core PATMI that we are looking at? That's the first question.

Okay. Derek, good morning.

Before I let Yim Ming answer that, I just want to emphasize again, okay, which I had mentioned just now, I don't think it's appropriate to look at these so-called capital recycling activities as a one-off because firstly, as I mentioned, it's going to be business as usual for us going forward. Aside from developing property and managing our office and retail, if I invest well in something and I sell it 2 years later for big profit, so that doesn't count towards my earnings?

As I said, CDL is also a good and astute investor. Yes, we've had some missteps over the years, but generally, I think we've done well on our investments.

I think we really shouldn't keep seeing that as non-core. Likewise, on the flip side, right?

If I invest in a commercial property in China and it does really badly and I take impairments and write-downs, that should be held against me. We should be held as a management team accountable for what we've done, right?

If we keep stripping off all these one-offs, right, then it'll be very easy. I'll just focus on doing property development, and everything else is non-core, right?

Again, lah, I would be careful about how we use that term. I get where you're coming from, maybe I'll let Yim Ming answer that.

It doesn't like that question clearly, yeah. Having said that, yeah, we report about 600 over $630 million of PATMI.

If I were to exclude divestments as well as impairment losses, which we have made substantially, it's probably in the range of about 100. As we mentioned, from a management perspective, we don't look at that as a key performance measure.

We really look at EBITDA, and we look at reported PATMI and ROE. I guess that probably contextualizes how we look at things as well.

That's fair. To your point as well, you are going to link dividend payouts to reported PATMI also.

I guess would you going forward, would you give, and you alluded to, more corporate governance as well, would you, I guess, formalize the divestment targets in in your outlook?

Capital allocation as well as divestment targets are part of this internal strategic review that our management and the board is going through with this advisory firm. Therefore, we are excited by midyear to hopefully announce something that will be well received by our shareholders and investors.

Just one last question, if I may, on, you put the UK legacy platform, $800 million. Mortlake, Stag Brewery is in there as well.

Can we just take it that you are planning to divest it entirely?

Short answer, yes, Derek. The intention is to divest that whole portfolio, lah.

We are working on it. Some of that stuff, as I said, one has already divested, the site for £70 million, Ransome's Wharf.

We will accelerate the so-called monetization of this portfolio. This year, certainly, we want to accelerate this faster.

Let me just move to the second row. Xuan, maybe you go first, and then I'll move down.

Thank you.

Hi, this is Xuan from Goldman. Just to follow up on dividends, right?

The 25 cents is seen as ordinary. Is that the absolute level that you will keep going forward?

Because that actually implies $220 million, which is above your core PATMI. Then the second question is then on divestment.

Is that also your underwriting assumption that there will be a minimum level of divestment gain going forward?

Morning, Xuan. It was about the dividends, sorry.

Sorry, Xuan, I was thinking about your second question and then I suddenly forgot the first one.

Ordinary 25 cents.

The final dividend is 25, but added to the interim is 3, right? It's 28 cents for the year.

So 40% payout ratio. You were asking

Most companies will keep the ordinary flat. That means if that's your model, it's 25.

Got it. Sorry, Xuan.

I went through one of those moments where I was thinking about something else, yeah. In the past, CDL had this habit, right, of declaring a lot of so-called special dividends, right?

Our interim is special. There was a special final and an ordinary final.

I think we discussed it at length at the board yesterday, and management's recommendation is to probably do away with this terminology of special. It's really not that special.

We've committed to it now in our dividend policy, right, of a minimum of 35% or more. I think anything within that range should not be considered special.

It's something that we have committed to doing, it's an ordinary dividend. Now if we were to do some outsized dividend, we'll call it special then.

That remains to be seen. It depends how we execute, how well and how fast we execute on our activities.

I, unlike another developer who has made a bold announcement, I will not be pegging our dividend to the gross divestment value or something. Again, our reported PATMI captures all that in, right?

I think that's a very fair metric to use when we have pegged our dividend policy to it. The second part was since I was still in twilight zone just now.

Divestment gain.

I've answered that as well, right? Yeah.

Okay.

Okay. Sorry, my second question is on NAV and RNAV.

If I compare these two numbers against 2019 number, NAV has declined 9%, but RNAV is up, I think, about 9% against 2019. Can you help us to reconcile this number?

What are the assets that has been revalued up so significantly? Just one last question on net gearing, right?

If I take and look at your net gearing, it's actually trending up. This goes against what you mentioned earlier about mid-term deleveraging plans.

Can you share what are the near-term goals over the next 12 months? Thank you.

I'll take the gearing question, then I'll pass it to Yim Ming. Thank you, Xuan.

For the gearing, as mentioned earlier, we were fortunate to have won more GLS sites than we expected, three last year. Land is not exactly cheap in Singapore.

The good thing is that all this gearing is on your balance sheet for a finite time, right? As you develop, this gearing will start to progressively go down anyway.

We don't see it as something alarming. Yes, that hotel acquisition at the end of last year, about $480 million sing, that certainly pushed up our gearing by quite a bit, around three percentage points.

Putting that aside, as you yourself mentioned, Xuan, it is a mid-term target. I know I did say that we want to get the gearing down, but ultimately I also don't want us to be too fixated on the gearing because I think every property developer is different.

Yes, there are Hong Kong property developers where gearing is in the teens or the 20s, but different strokes for different folks, I suppose. For us, our mid-term target is to get the gearing down to at least around 60%.

In the interim, right, I don't want to just because of gearing, then okay, let's not tender for land in Singapore, let's not buy anything else, we'll just keep divesting. I think that would do a great disservice to our growth strategy because no matter what, we still need to keep growing.

The gearing will come down over the next few years. That's certainly a commitment I've made.

Yes, it did actually track up, I do understand the rationale for your question, lah. Thankfully not by a lot.

It will start to trickle down as we progress further with our capital recycling and continue to be selective for the acquisitions we make. Yim Ming, you want to address the NAV?

You're really sharp, but if you notice, right, the NAV for IP has gone down slightly, largely because of our China portfolio. If you look at valuations-wise for our China commercial properties, valuation has actually come in probably in the range of about at least 10% lower than the previous year, so that probably accounted for that.

Overall, RNAV has gone up, I think largely also because of South Beach. Very frankly, that has improved our base NAV for one.

Our hotels valuations came in also a little bit better this year versus last year. If I can just add on the NAV, I know it's a key focus that many people look at whether this number is real.

I just wanted to assure the audience that for this NAV calculations, firstly, for the IP portions, they are mostly externally valued. While we don't announce all the valuation reports because we're not a REIT, for the Singapore properties, they're actually mostly externally valued.

All overseas properties are actually also externally valued, and we use people like Cushman, etc. As for the hotels, after we privatize M&C in 2019, we had the ability to value all the hotels.

The hotels valuations are not the most recent, but in 2020, we did do a clean up, about 90% of our hotel portfolio. Progressively, we just keep doing valuations.

Suffice to say that I think the valuations number, we can stand by it. Basically, it's supported by mostly external valuations.

Thank you. Congrats.

Joy from HSBC. Just following up on Xuan's question on dividend, given that the PATMI can be quite volatile depending on recognition and divestment, how much would you want to keep your dividend more volatile or you want dividend to be a bit more stable?

How should we think about the linkage to PATMI itself? Second question, just in terms of divestment targets, you singled out UK portfolio for potential divestment.

Is there any other obvious segments that you want to sort of divest? Thank you.

On your first question, Joy, good morning, by the way. Welcome.

On your first question, yeah, because the dividend policy is pegged to reported PATMI, it's something that we will have to endeavor to try to keep it as stable as possible. Yes, last year 2025 was a record year, we're going to have to work very hard to try to keep the levels up.

That's why I said, right, this capital recycling has to be part of our business as usual, and it can't just be a one-off. The good thing is that we have a sizable portfolio and we continue to invest as well, right?

As I said, the Osaka's one example, the hotel, Bespoke Hotel Shinsaibashi. That was 2 years ago, and now we have monetized that.

It's something that we will have to continue doing, and there are various levers we can pull to get this done. Yes, it's work in progress for us.

You will see that at the end of my presentation, I had that slide with all the nice bubbles rounded. One of them is recurring income, right?

It's also a key focus for us, and that's why the Living Sector has played a strong role, too, albeit it's also a seed for fund management ambitions because property development is very lumpy, right? With the exception of Singapore where it's progressive, and other than ECs, all of our overseas development revenue comes as a one shot at the end just like ECs, right?

This causes a lot of lumpiness in our earnings, and therefore, we do need a lot of strong recurring income to hold that up, too. Of course, we have to be careful how we invest because impairments and provisions for foreseeable losses can also take a hit on the PATMI, right?

Ultimately, it is a tough job for management. We are committed to making this happen.

Yes, in the medium term, we hope to really even out so that it's a stable and growing PATMI. That's one.

Then the second thing is in terms of divestments, we mentioned about the UK development legacy land bank. Of course, we also mentioned about the China commercial properties that we would hope to clear off our balance sheet.

Aside from that, yes, there are many other divestments in the pipeline. We don't typically share our divestments, but I can only tell you that it's across geographies and across asset classes, and it would include Singapore as well.

Various initiatives that we're pushing forward with. Thank you, Joy.

Glad I wasn't in the twilight zone for that question.

I'm just going to move down quickly this row first and complete this row. Derek, then after that, Brandon, and after Terence, right?

Wilson. Okay.

Hi, good morning. Derek from DBS.

I got two questions. My first question is on the relationship with the board.

As we look to focus on 2026, your strategies, divest, invest, could we assume that relationship between management and board, you're hand in glove in terms of wanting to take the company forward? I just wanted to hear your thoughts on that.

Second thing, it's on the land banking. We've been seeing how foreign developers coming into Singapore.

I think while the group has been participating very actively, I'm just wondering whether are you sensing exuberance in the pricing in the market currently? If any, how should we think about you adding more land in 2026?

That's all. Thanks.

Thanks, Derek. Went straight for the nail on the head, hitting the nail on the head with that first question.

Yes, relationship is very cordial and a very harmonious right now amongst management and together with the board. I I do understand the basis for your question.

Last year, we did have some internal issues and, of course, some, kind of unsightly public disputes, but glad to say that's behind us now. As a management and board, we are trying to, really move forward expeditiously so that we can, really unlock more value from CDL at a quicker pace.

That's one. In terms of land banking, the truth is, Derek, over this is not the first time we're seeing.

Over the years, there have been some exuberant years where you see a lot of foreign developers come into our market as well. There was a time when I remember all these Chinese developers, Vanke, all that were all coming to our market to also bid, right?

Of course, many contractors have also now, become developers themselves, you know. It's it's nothing different from what we've seen, I would say over the last, decade or two.

We land tenders are always competitive, especially if it's a nice plot of land. You're never going to escape with a very low, or attractive, land price.

I think it's always going to be competitive, I think we have to be just disciplined in how we bid and put our best shot forward. Winning the Tanjong Rhu site does take some pressure off us because at least we've already got, one land replenishment done.

We will certainly take part in more land tenders this year. Of course, I also have mentioned before that I don't want us to get to the point where we are overly burdened by a very huge pipeline in Singapore.

Should something change, be it locally, i.e., property measures, or for in terms of the global macroeconomic, conditions, that may severely change the market dynamics and leave us, so-called may leave us so-called struggling, with a larger burden than we would like. I think we would like to just keep our land bank in a, a prudent we will replenish it in a prudent manner, but I think we'd like to keep it at sustainable levels, lah, that will not put undue pressure on the company.

Certainly, we are glad to have won Tanjong Rhu, and we will continue to participate in more tenders this year.

Sorry, Sherman, on that same topic, we have a question from Goola online. On that same topic, she was asking about capital allocation.

Therefore, would you say that your capital allocation will largely be with the Singapore land banking or will it be other asset classes?

Again, as the last few years, I have been the last two years, and it was accidental initially. Since 2024 and 2025, I've kind of given out divestment targets.

You'll notice that annual divestment targets. You'll notice I didn't do it today because, again, I'm waiting for I'd like to have this strategic review properly done, and then we'll give out proper targets then not just for divestments, but also for capital allocation for, capital deployment, lah.

Yeah.

Okay. Brandon.

Hey, morning, Sherman and team. Just three questions.

The first one, are you able to share a bit more on your hotel strategy as of now? I think we have seen you divesting a pretty decent Japan hotel at a very good premium, then subsequently you bought something very nice, London.

Is there a particular strategy? Are you looking at probably percentage that you're going to sell, percentage that you're going to manage under maybe Millennium and M&C, and percentage that you're looking to manage under third party?

That's my first question. The second question will be a bit more on the UK development platform.

Just to confirm, right, if you were to sell the entire $800 million, will it be recognized under revenue or you would recognize sort of a divestment gain or slash loss below the gross profit level? That's my second question.

The third one will be also a bit on divestment. We have seen you divesting very big number in FY '22 and '25 as well with MHS and South Beach.

For this year, are there any really chunky stuff that we could see you divesting, maybe something like City Square Mall or even like some decent hotels in UK or in New York? Yeah.

Thanks.

I'll do the easiest one, obviously. For the UK development platform, our original genesis of going in was actually for development sites.

Yes, it's part of our development property. It will be recorded under revenue, not under other income.

On the hotel one, of course we do have a review of that as well ongoing. As you can see, right, it's not just non-core hotels that we are selling.

Sometimes it's also about getting the right offer. If we think it's attractive enough, we are open to divesting, right?

We do have two hats. One is operator, and the other of course is the asset owner.

We do have a twin strategy. I think as operator, we ideally want to have more hotel contracts, especially in gateway city hotels.

Today, we're pretty pleased with what we have in terms of where we are represented across different geographies, which is very useful in terms of having such volatility in the markets, right? One market is down, usually another market takes up the slack as well.

We definitely want to continue that kind of diversification. At the same time, I think where we're going is that it doesn't necessarily need to be an asset that we must hold ourselves.

On the operator's side, I think we're also trying to get ourselves structured for more hotel management contracts and try to grow more through that route as well. If you're asking where we can split between the internal and external one, today, I think, of course, it's majority internal.

We have a few external contracts, but albeit those are quite significant ones. We have external contracts with Grand Hyatt Taipei, in Singapore, the St.

Regis and Edition. I'm not able to give you a firm split as to how much we intend to keep in-house and external.

Basically every project we look at, we do decide, is it better managed in-house? Some of the considerations can be how many hotels do we already have in a city, right?

We do take all that into account before we decide whether we want to go external or internal.

Morning, Brandon. Welcome, and thank you for your kind comments as well.

Just to round up, as mentioned earlier, I don't want to share too much about I can't share too much about our divestments and typically, we don't share specific divestment targets. It's interesting you mentioned like City Square Mall and all this, thank you for the ideas.

We we are taking a very rigorous look and have been at our entire portfolio globally, including in Singapore. We hope to have the, ability to surprise on the upside.

After all, I don't think any of you expected us to sell South Beach last year. Now that doesn't mean you go and say, oh, they're going to sell Republic Plaza or something.

That's that's not going to happen, okay? We are looking taking a hard look at our whole portfolio.

As I mentioned, the divestments will spread across geographies, including Singapore as well as overseas. Let's see what we come up with.

South Beach is a hard act to to beat, cuz it was a big asset. We're thankful and and fortunate, lah, to have a a diverse portfolio.

Wilson, and then after that, I'll go to Terence and then Vijay. Wilson.

Hi, morning. Wilson from Jefferies.

Just two questions. The first on fund management progress, which Sherman mentioned earlier that he hopes to accelerate.

Just would you share maybe early thoughts on considerations you have in building out the fund management platform and whether you'd be considering new platforms, existing, public, private? The second question is back to the legacy UK development platform, the $800 million worth of carrying value.

Sounds like it's been prioritized to recycle as quickly as you can. Would you say it's fair to expect within the next 12, 24 months, this will be fully recycled?

Thank you.

Somehow, I guess people really want us to commit to certain targets. The reason I'm hesitant is because once I throw something out, right, I don't want to walk back from that.

To address your second question first, Wilson, first of all, good morning. UK development platform, my aim is to monetize that, all of it this year, but I will say it's not easy.

That's our aim, lah. Let's see if we can hit our own internal targets.

For the fund management side, as I mentioned earlier, it's something I really wished we had paid a bit more attention to it and accelerated the efforts there. As the last time we tried was to inject our UK properties and IPO it in a REIT listed in Singapore.

That was a big colossal effort. When that didn't go through, I think we kind of focused on other things.

Really, it's now time to monetize more of our, for instance, our Living Sector portfolio of $3.7 billion that I put up earlier. I have to say that it will be mostly in private platforms, private formats.

I don't think the capital markets are suitable for some of the assets that we have. For the ones that we wanted to list in a public format like the three commercial buildings in the UK, now's still not the right time.

I think it'll need a while more, lah, before the office sector and the capital markets come back in favor. Probably focusing more on the private side, lah.

We do have a lot. We are in a lot of discussions on some of our assets.

Also, as I said, in addition to this, we thankfully do have two public platforms under fund management. One is obviously CDL Hospitality Trusts, and that we are also looking at how we can be a better sponsor to the REIT.

The other is, of course, IREIT, also listed on the exchange. These two REITs, we are also paying a lot closer attention to see how we can work better with the REITs.

I'm mindful of time, I just want to take two more here and then I've got to move over to the media group. Maybe Terence, you kick off.

This Terence from UBS. Just in the spirit of clarity, what is the timeline for midterm defined as for ROE and gearing?

Relatedly on ROE, I think it's good that you're guiding for PATMI growth and the dividend policy is also welcome as well. I think the equity denominator would still grow over time by a faster pace making it harder to grow ROE.

Then is it fair for us to expect a capital reduction exercise? Sherman, you mentioned outsized dividend.

Specifically, also is that a likely consideration to be in the same timeframe as you think about the first question on ROE and net gearing? Have a last one if I may.

Residential, the margins on the consolidated projects look a bit low. I think it's 4.7% versus 10% in the last year.

The question is why and perhaps a comment on the recognition and margins outlook for 2026. Thank you.

I'll address your question first, Terence. Again, because I want to wait till the proper juncture, when our internal strategic review is completed before I really give you a timeframe, but I think you would have heard me in previous analyst briefings, I have thrown out a ROE target, a midterm ROE target of 8%.

It's not easy for us to get there, as you've mentioned, right? The shareholder equity component is very big.

Therefore, it's something that we will really need to drive our fund management at a faster pace if we aim to get there, right? That's one way of really lifting our ROE.

We do need to be more efficient. I can't comment on capital reduction, all that at the moment.

Margins, you want to talk about it, Yim Ming?

Actually, for the margins, if you'll exclude the foreseeable losses that we made for China properties, I need to give credit. Our residential margins actually improved between the 2 years.

When they calculated the 4%, I believe they have factored in the foreseeable losses, and that's actually the main reason. I think, in terms of margins, very healthy, I would say, yeah.

Okay. Thank you.

Vijay, the last one, and I'm going to move over to the media team.

Hi, morning. Vijay here from RHB.

Maybe just two quick questions. Firstly, on Delfi Orchard, there was a plans to unlock value via strategic developments.

Maybe any update on that? My second question is in terms of Singapore residential land banking, I see you are a bit more active in terms of EC sites.

Maybe can you give a bit of idea, is it a de-risking strategy and risk versus returns on EC versus private site, some color on that? Thank you.

Sorry, Vijay, did you say unlock strategic divestments?

Delfi Orchard, I see. Delfi Orchard.

Thank you. Good morning, Vijay.

In terms of your question, the first one about unlocking value, that is one way as well is by really doing so-called our portfolio optimization. That's the enhancement part, right, of our GET strategy.

It's really looking at our existing assets and seeing how we could really enhance and unlock the value there. We are doing two redevelopments at the moment.

One is, as I mentioned earlier, Newport Plaza, which is the entire complex that used to be Fuji Xerox Towers. The other is Union Square.

We will continue to drive forward with this. At the same time, you also have to understand that I have to keep our gearing and our cash in mind.

If I started all the redevelopment projects at the same time, there's also we could redevelop City House, we're going to apply for CBD Incentive Scheme of 25% bonus GFA and redevelop that. We can also, as you have mentioned, we en bloc Delfi.

It wasn't a lot of money because we owned a substantial part of it. If we amalgamated that with Claymore Connect behind Orchard Hotel, that would also become a very sizable mixed-use development.

We have already gone some steps along the SDI, the Strategic Development Incentive Scheme. I do not want to start these projects anytime soon because then I'll have four ongoing redevelopment projects.

The existing two will finish in 2028 and 2029. Then if I top up another two, and I will have loss of income as well when I demolish those buildings.

It will put a huge strain on the group, I think this is something we need to pace out, and I cannot do it all at once. That's one.

Sing resi, you asked about EC. Yes, EC has certainly been the flavor of the day for the last, I would say 24 months.

All developers have gone very aggressive for EC. I think because EC has always been a very attractive product that allows upgraders to eventually get into the private residential market when the EC finishes its minimum occupation period, right, and becomes fully private.

It's been great. Then the income ceiling was formally lifted, as from $14,000 to $16,000, and there's been talk about potentially lifting it further.

ECs have really been a very attractive way for upgraders to enter the private market. It's been in high demand, which hence has driven very aggressive bidding in the last 2 years, lah.

We do participate in EC sites as well, and we've been fortunate to win EC sites along the way, including two last year. That doesn't mean that's all we look at.

As I said, Tanjong Rhu was a nice win for us, and that's near Kallang and all that. It's a great area to be in.

That's not EC. I think we will continue to look at sites that are well-located and that have location attributes that we feel will be very attractive to buyers.

I'm going to quickly move over to the other side of room. I see Dexter.

Dexter, why don't you take the question from the media?

Hi, good morning, Sherman. Dexter from Bloomberg News.

Two parts. First question on the UK and China, I know you talked a lot about the markdowns as well.

Can I clarify, if you guys are planning by hook or by crook to sell both the UK and China assets, how much discounting are you expecting if you're really want to sell because, as you mentioned, the capital markets seem to be very soft in those two parts? The second one, you mentioned before you wanted to a UK REIT, and I think you mentioned that just now as well.

Is that plan on the shelf for now? In terms of private funds, are you talking about setting up private fund within CDL?

The third one, in terms of strategic review, is everything on the table including possible management changes and moving away from any of your core businesses?

Firstly, in terms of our divestments, we will go through meticulously, right, into our portfolio, especially for non-core and underperforming assets across all asset classes, right, be it residential, commercial, or hospitality, and we will divest assets that make sense. You all remember in 2024, I think, we divested a hotel in Boulder, Colorado, right?

It's not even Denver, it's Boulder. I'm not sure how many people even knew we had a hotel in Boulder.

That we divested at a gain of about $80 million sing, right? It's things like that, right?

We look at it fairly. In some cases, we try to always divest above obviously our book value, okay, but it may not always be possible.

The flip side is looking at if you keep holding on to the asset, right, how much are you hemorrhaging in terms of the cash? Is it loss-making?

How much debt is on the asset? The UK development portfolio, the legacy portfolio I put up, that was before we sold Ransome's, that was around $1 billion sing.

At the height of the interest rate environment in the UK, we're paying 6% interest a year on that whole portfolio. That's a lot of wasted money, that's $60 million a year.

I think Ransome's, we divested, and Yim Ming's going to probably punch me once I say this, but that was at a slight loss. It was about £10 million, I think.

What? You take the good and the bad, right?

I'm removing quite a bit of debt off my balance sheet as well. As we go forward, we assess each asset on a individual basis.

Same with China. Right now, it's really bad time.

You've seen other developers that have exposure to China as well. We are still confident in our residential sites, especially our Simpang Bedok, right?

That should do very, very well, exceptionally well. Yes, commercial is uninvestable right now in China.

It is going to be challenging for us to divest these. We may have to take some haircuts on it, but if the haircut's too big, the good thing about our group is that we do have some holding power as well, lah.

As I've always said to you all before, I don't want to divest just for the sake of meeting divestment targets that I've committed to, right, and leaving lots of money on the table. That is a poorer outcome for CDL if I do that.

Secondly, on private funds, you're asking whether the funds would be within CDL. When I say private funds, I'm referring to starting a private equity fund that would involve third-party capital.

CDL may be part of that capital stack, maybe a investor as well, an LP in the fund, but it would be a small one, lah. We would not exceed 10% or 20% of the fund.

We may have to put our money where our mouth is, right, if we're going to start a fund. It will be largely external funds that we would hope to attract because that's true monetization of an asset, right?

If I sell the asset to a fund and I'm 80% of the fund, then what am I doing, right? That is my intention for the fund management side, private funds.

Strategic review, does it include management? Thank you for trying to work me out of a job.

Appreciate that, Dexter. Kind soul.

I hope it doesn't include management. If it does, then I'll accept whatever conclusions it comes to.

It does not include reviewing the board or management. This is really focused on our strategy, focused on our guidance, focused on our portfolio and asset base.

Things that really matter to CDL. Yes, I understand board and management are important to CDL as well, but that is up to the shareholders to decide, lah.

So.

Quickly two things. Obviously, you'd say last year was a year of reflection.

Looking at the UK portfolio, what do you think went wrong there in the first place? Secondly, can I ask, since the Chairman does have a strategic direction for the company, what do you think of the review and do you have a vision of what the strategy will look like?

Thanks.

Sorry, your first question, you asked me what went wrong where?

The UK.

The UK portfolio.

Oh, the UK portfolio. As in the legacy land bank?

I think back then, it was before my time as well, it's understandable that we wanted to get into UK development market, but we had to get an external manager because we didn't have a team on the ground. That I understand.

I think some of the things that went wrong, some of the sites were potentially acquired at above market values. As it always starts with getting a good land price, right?

If your land price is wrong, it's quite difficult to catch up subsequently. It's quite challenging to catch up with.

That's one of them. Secondly, I think some of them, the development manager underestimated the complexity of obtaining development permits as well, which is why the whole process has been so lengthy and drawn out.

I would say, those are some of the lessons learned as well for CDL as well. Going forward, obviously now we have our own UK development team.

If we do undertake developments, at least we have our own team on top of it, although our team is not involved in that because that one is exclusively under the development of a third-party manager. Again, it's things like that we work towards resolving and unlocking the value there, or at least unlocking the capital there so that we can put it to better use.

As I said again, I can pass the mic to our esteemed Chairman to answer, but I really don't think it's necessary because at this stage, none of us can comment much on the strategic review, right? In fact, I probably already said more than I should have said today.

If you want to ask him what does he think of the process, does he like it or not like it, I don't know how he's going to answer that considering we're not supposed to comment on it because it's going to be a very comprehensive review. As I've answered your question earlier, suffice to say, right, board and management are not under the review.

Yeah. Let us know if you would like us to be under the review as well.

I'll put that up for consideration if you don't think we're doing a good job. So.

Moving right along cuz I know that some of you have to go to the writers' lunch in a short while. Let me just move down to friends from the media that is over on this side if there's any questions pertaining to that.

No? Then I had one also from Goola from The Edge online, which has to do with City Plaza.

I'm not sure if Mr. Chia or Sherman want to comment what are the chances of that and also, given City Plaza recently secured the collective sales mandate, what is the expected proceeds from the potential sale if it does happen?

Actually, City Plaza, I think we are a very small shareholder in the complex, they manage to get 80% this time round. I believe there'll be some interest from the potential investors, and I wish them good luck.

Thank you.

Just to clarify, we do have about 16 units, right, 1-6 units at City Plaza, okay, the strata units. There is a burning question.

Mervin. I'll just give this the last one.

Can you give us a hint of what's the carrying value for the UK office portfolio at this point in time?

Give me a minute, please.

The reason why I ask is if you add up the $800 million for UK land bank, Moxy to be sold to CDLHT, $475 million, your PRS $3.7 billion, that's already close to $5 billion. Can we say we have in excess of $5 billion to be sold over the next 3 to 5 years?

You're very, very astute and very good, Mervin. As I said again, we won't comment on the targets nor will we confirm what you just mentioned.

You're certainly a very astute analyst. Yim Ming?

Carrying value of the three properties that we have right now is about GBP 870 million.

Oh, you're talking about the legacy land bank?

No, the three commercial buildings.

It's £870. Yeah.

That's approaching $6 billion.

I'm going to scan the room one more time. Is there any more burning questions from the room, the floor?

If there's not, then is there any other comments from the panelists this morning? No?

Okay. Then in that case, we will bring this briefing to a close.

Thank you very much, everyone, for coming. There's also refreshments being served outside.

For those that are joining us on webcast, thank you very much for taking your time this morning, and we hope to see all of you very soon again. Thank you very much, and have a good year ahead.