Good evening. Welcome to CapitaLand Ascendas REIT full year 2025 results briefing.

I'm Johanna from the Investor Relations team. Thank you for joining us here today in person at Capital Tower, and for those joining us remotely.

Please note that this briefing is recorded and will be made available on our website. The session will start shortly with a presentation by Andrea from the Investor Relations team, followed by Q&A with the management.

First and foremost, I would like to introduce the panel this evening. We have Mr.

William Tay, our Chief Executive Officer. On his right, we have Miss Koo Lee Sze, our Chief Financial Officer.

Last but not least, we have Mr. James Goh, Head of Portfolio Management.

Before we start, we'll like to lay down some housekeeping rules. During the Q&A, if you have any questions, please raise your hands and my colleagues at the back will hand you a microphone.

Please try to keep to two questions each time, and if there's more, we will come back to you. For those joining online, you may post your questions remotely via the chat box.

With that, I'll hand over the time now to Andrea, who will bring us the highlights of the results. Andrea, please.

Thank you, Johanna. Welcome and thank you everyone for joining this briefing physically as well as online.

I will give a brief overview of the financial and operational performance of CapitaLand Ascendas REIT, as well as some highlights of our investment. First, some key numbers.

CLAR continued to deliver growth in distributable income against a backdrop of economic uncertainty. For FY 2025, the distributable income was $678.3 million.

This is 1.4% higher than the previous year. The better performance was driven by accretive acquisitions of quality assets in 2025 and supported by the prudent management of operating and interest expenses.

The higher distributable income translated to a distribution per unit of 15.005 cents. The value of investment properties rose to $18.2 billion, which is an increase of 8.6% year-on-year from $16.8 billion a year ago.

On to asset management, as at the end of December 2025, the portfolio occupancy was 90.9% and we achieved a high rental reversion of 12% for leases renewed during the full year. This is CLAR's third consecutive year of double-digit reversions.

As at end December, gearing was healthy at 39% and the average cost of debt for 2025 was 20 basis points lower year-on-year at 3.5%. Our active portfolio rejuvenation strategy seeks to ensure that CLAR's portfolio remains relevant.

We were disciplined and focused on executing our multi-prong strategy for growth in 2025. We completed approximately $1.5 billion of acquisitions, largely in Singapore.

This is one of the highest levels of acquisition activity since 2021. To recap, the acquisitions were six properties in Singapore as well as the US, and their initial NPI yields ranged from about 6% to 7+%.

Besides acquiring income-producing properties, we also invested about $350 million to develop new green-certified logistics assets in the UK. There are two projects in the UK in Wandon End and Towcester, and the expected yields of these properties are about 7%.

We also completed two redevelopments in Singapore. They are 1 Science Park Drive, a business space and life sciences property, and 5 Toh Guan Road East, a modern ramp-up logistics property.

These two new properties have achieved healthy leasing levels of about 81% and 65%, respectively. The good market reception reflects confidence in our rejuvenation strategy to future-proof our properties, and we will look to do more.

We accelerated the pace of divestments in 2025, reaching about $506.5 million in total. This divestment amount is a 9% premium to their total market valuation, as well as a 14% premium to their total original purchase price.

These divestments are in line with our capital recycling strategy to maintain financial flexibility and liquidity for accretive investment opportunities. We'll go into the financial performance.

Comparing the full year of 2025 against 2024, gross revenue increased by 1% to approximately $1.54 billion. The properties acquired in 2025 contributed to the increase.

They are DHL Indianapolis Logistics Center, a logistics property in the US, as well as two properties in Singapore, namely 5 Science Park Drive and 9 Tai Seng Drive. Their higher revenue contribution was partly offset by divestment of properties in 2024 and 2025.

Partly supported by lower property operating expenses, NPI was up by a better 1.7%. As mentioned earlier, the DI for 2025 increased by 1.4% year-on-year to $678.3 million.

DPU for the full year declined slightly to 15.005 cents on a slightly larger unit base. CLAR had conducted an equity fund raising in the first half of 2025 to fund investments.

It was a private placement of about $500 million to fund acquisitions. When we compare the second half of 2025 against the first half, both gross revenue and NPI increased by about 4%.

Contributing to the higher income were the two properties acquired in August, namely the data center 9 Tai Seng Drive and the business space property 5 Science Park Drive. The increase was partially offset by some divestments completed in 2025.

DI increased by 4.9% to $347.2 million, partly supported by lower interest expenses. As a result, DPU in the second half increased by 0.7% to 7.528 Singapore cents.

CLAR distributes income on a semi-annual basis, we have declared a DPU of 7.528 cents for the second half, and unitholders can expect to receive the distribution on Friday, the 13th of March. This section covers the details of all CLAR's investments, which was summarized earlier.

I would just like to highlight a couple of latest developments. Besides redevelopments, we also carry out AEIs, which are asset enhancement initiatives.

These AEIs are projects to upgrade our properties and modernize the facilities, thereby increasing long-term value. In 2025, we completed about $29 million of AEIs, the largest of which was at Aperia in Singapore for $22.7 million.

At Aperia, besides upgrading the drop-off point, the office and retail entrances, we also reconfigured some of the retail space on Level 1 for better flow, and there are new F&B offerings to provide more offerings and choices for tenants and visitors. The new retail units are mostly leased, and the expected ROI is approximately 9%.

At the end of the year, we have seven projects that will rejuvenate the portfolio and enhance returns. Currently, there are three developments, two redevelopments, and two AEIs worth about $730 million.

These projects are scheduled for completion in the next three years, meaning from 2026 to 2028. Continuing our acquisition momentum into 2026, just last week, we completed the acquisition of DHL Canal Winchester.

The purchase price is about $95 million and the initial NPI yield is about 7.4%. This property was completed just two years ago and is fully occupied by DHL, an international logistics company.

The WALE is about five years, and the lease term includes built-in annual rental escalation of 3.5%. The property is well-located along a highway with access to three interstate expressways, and is close to a cargo-dedicated international airport.

The property is in Columbus, Ohio, one of the main logistics markets in the Midwest in the US, it compliments CLAR's logistics portfolio in the US, which comprises assets in three other Midwest cities, which are, namely, Kansas City, Chicago, and Indianapolis. We'll move on to the balance sheet.

The gearing remains healthy at 39%. It increased slightly from a year ago, mainly due to higher borrowings to fund investments.

Total assets have also increased to more than $19 billion. The adjusted net asset value per unit was stable year-on-year at 221 cents.

CLAR's financial metrics remain strong, and we exceed bank loan covenants by a healthy margin. Just going through some key financial metrics, the ICR remains at 3.6 times and cost of debt has come down slightly to 3.5%.

The percentage of our fixed-rate debt is also high at about 75%. Our total debt is about $7.6 billion, and it comprises various currencies such as Sing dollar, US dollar, Aussie dollar, Great Britain pound, and euro.

The debt expiries are well-spread over the next eight years until 2034. Over these two years, meaning 2026 and 2027 specifically, only about 12% of the total debt is due.

On natural hedge, we continue to have a high level, about 76%, for overseas investments, which make up about 30+% of the portfolio. We also conducted the annual revaluation of our portfolio of investment properties.

The total valuation of our 222 investment properties was $18.2 billion as at the end of the year. This is a year-on-year increase of about 8.6% or about $1.4 billion.

This was mainly due to new properties acquired, as well as the completion of the redevelopment of 5 Toh Guan Road East. On a same-store basis, the portfolio valuation increased by 2% or about $300+ million to $16.6 billion.

This was mainly due to cap rate compression. By segment, all three segments, meaning business space and life sciences, industrial and data centers, as well as logistics, all recorded year-on-year increases.

We move on to portfolio occupancy. As shared earlier, the portfolio occupancy was 90.9% as at the end of December.

We will go into each geography specifically. Starting from the left, which is Singapore.

The occupancy rate of the Singapore portfolio was 91.2%. This is an increase of 80 basis points quarter-on-quarter.

Excluding 5 Toh Guan Road East, which just completed its redevelopment in the third quarter of 2025, the occupancy rate of the Singapore portfolio would have been higher at 91.7%. For the US, it was a slight increase of 20 basis points from the previous quarter to 85.5%.

For Australia, the occupancy rate was 94.4%, slightly lower by 40 basis points. The occupancy of the UK/Europe portfolio was 92%.

The decline was due to a lease expiry at a logistics property in the UK, which is actually slated for redevelopment. If you exclude this property which is slated for redevelopment, the UK/Europe portfolio occupancy rate would remain high at 98.7%.

Excluding 5 Toh Guan Road East, which just completed redevelopment in third quarter, as well as this UK logistics property, which is slated for redevelopment, the portfolio occupancy would actually be higher at 91.9% instead of 90.9%. We will go on to talk about the rental reversions.

Rental reversions for the portfolio on the whole was 12%. You can refer to the last brown row of the table.

In 4Q, the reversion was 19.6%, which is higher than 3Q and the earlier two quarters of 2025. The high reversion achieved in 4Q was boosted by Singapore's business space and life sciences segment, which had a reversion of 26.7%.

Our strong reversion performance reflects the quality and relevance of our portfolio, and for the coming year 2026, our guidance in the mid-single-digit range. The WALE of the portfolio remained stable at 3.7 years, and in 2026, for the whole portfolio, meaning all four geographies, only about 20% of gross rental income is due for expiry.

I will end with the market outlook slide. Global economies are expected to remain resilient, although uncertainties to the outlook remain.

In this current economic environment, we are confident of navigating through challenges given our well-diversified portfolio in developed markets, our large tenant base, good operational management, as well as prudent financial management. The investments in 2025 have strengthened CLAR's earnings resilience, and strengthened our portfolio quality.

We will continue to pursue our portfolio rejuvenation strategy, and this is so as to enhance the long-term income sustainability and create additional value for unitholders. I've come to the end of my presentation and thank you for your attention.

We will move on to the Q&A segment. Those who are joining us physically, you can raise your hand and I will call on you.

We will have the first question from Rachel from Macquarie.

Hi, good evening, William and team. Thanks for the opportunity to ask the first questions, or first two questions.

I think firstly, maybe just on the positive side, your rental reversions have been very strong, as what Andrea has alluded to, your Singapore assets. Maybe guidance for this year?

Can you maintain this kind of reversions, and which market will be strong and which market will be a little bit weak here? You want me to ask my second question too?

Go ahead. Yeah.

I think

thanks for your compliment on the rental reversion. It's our third year getting double-digit, and right up to 3Q, we were still looking at or right up to half-year last year, we were still looking at single-digit until 3Q, we realized that we were going to have a very high rental reversion from a lease in Singapore, business park.

It gave us more than 40% rental reversion from that lease. It's a huge lease, which is why we actually adjusted.

In 3Q, last minute, we got to adjust it up to low double-digit. You heard me mention that we do want to continue to push rental.

Occupancy has been very stable and very strong, actually. If you look at all across all asset classes, the in terms of like industrial, logistics, UK, Australia, they are all above 90, 95, 98%.

The main gap is actually in business park in Singapore, as well as US office, which is about 85%. Rental reversion is important for us, even say we are we continue some leasing challenges in these two segments, which is why we have been trying to upgrade and do AEI to our properties in order to make sure that our tenants remain sticky with us, and our assets are actually be meaningful for their occupation.

Given that, I think we continue to look that mid-single-digit in entire portfolio. Markets that we think that will be strong continue to be in Singapore.

In fact Australia as well. Australia will probably be the one that will be giving us quite good rental reversion.

We will continue to push for United States to give us positive rental reversion. Mostly will still come from Singapore market.

Want to... If you have to break down in terms of asset classes between BP and logistics, typically our logistics assets are still below market across almost all the geographies.

As you can see from the rental reversion data, a lot of it is really supported by the log improvement in rents.

Maybe just to follow up, do you have a number of how under-rented is your portfolio by geographies?

Typically between 5% to 10%.

Across all?

On average, yeah.

Thank you. Maybe moving to my next question, in terms of redevelopment, could you give us any update?

I think you have one in UK, any update on your data center redevelopment and your Singtel data center as well?

UK data center, not much change. We're still waiting for the confirmation of the power, which we expect in the first half of this year.

We hope that we can start development after that, probably about next 12, 18 months to start development. Singtel, as you were referring to Tampines, that's one which has agreed expired since last year.

There is also another one, I think you probably know about, Kim Chuan, will expire this year, in fact, next quarter. These two, we'll continue look at opportunities for development.

We are still working out the development plans. For the one in Tampines, we're looking at trying to get higher plot ratio.

There's considerations that we have before we decide what's our next step for that project.

Just follow up, Kim Chuan, are you maintaining getting more power or what's your plans for that data center?

Today context in Singapore, we are not able to increase power if there is no existing data center operator on site. Unless we work with another operator who will apply for CFA2, then that's potentially that they can come in to any of our site.

We definitely have to work with an operator. Yeah.

Okay. Thank you so much.

Thank you. I think just now Derek, did you raise your hand?

No? Yeah.

Okay.

Good evening. Derek from DBS.

Just two questions. First one is looking at your portfolio, right, I'm just curious, you talk about US being a little bit weak, especially for offices.

Could you give us a bit more color, are there any leases that we should be watching out for the upcoming year that could be coming up, and that you see some form of downside risk from that perspective? Going into say this year, given where interest rates are, where are you hunting for acquisitions?

Just curious on that. Thanks.

Okay. Hi, Derek.

On US, if you look at our lease expiry profile, you'll realize that only about 2+% of our income is up for expiry next year. In terms of the potential downside or the financial income that's at risk is miniscule, next to nothing.

What is going to happen is we actually have got a few large leases in the logistics space that's coming up for expiry next year. Typically they are large sheds, but the per square foot rents are much lower than your BP space, the income contribution is much lower.

As we've all witnessed post-COVID, where there was this frenzy from 3PLs and end users to lease up all of the spaces where we were reporting 100% occupancy rate, we have now reverted back to the norm, where the market remains healthy, but the lease-up period would last anywhere between six to 12 months. While the market remains healthy, we think that the occupancy is going to be a bit bumpy.

The headline occupancy that we're going to report over the next couple of quarters, you might see there might be a dip, but in terms of financial impact, that would be pretty minimal.

On your second question about where the markets because of interest rates. We maintain that Australia is one market that we can't acquire accretive.

If it's new market, Korea continue to be non-accretive. We mentioned that we've always been observing Japan and Korea, but Korea is the same as Australia, given where interest rate is.

We're actually very keen to continue on our current markets: Singapore, Europe, US. We'll continue hunting these locations.

If it's Europe, obviously it's a Greater Europe, not just in UK. Mention whether is it data center, we look at data center and logistics in Europe.

It's not just in the existing market, but new markets like Madrid, Frankfurt, Dublin, the other European cities. That will also include logistics.

I also mentioned that we've been observing Japan market, given where interest rates are in the past one year, and then with positive rental growth. That's have been a market that we've been looking at.

We'll continue monitor. Yes, if you're looking at from interest rate point, Japan interest rate also has right reason, right?

We'll be looking at this market and see whether cap rate has expanded, because if you were to acquire at what has been transacted in the market in the last one year, 3.5% to 4%, I think that is still accretion, but it's fairly tight. We will see whether we can get better deals out of some of this in Japan market.

Other than that, I think Singapore continue to be attractive, definitely because of where the title is as in leasehold. We have been trying to refresh our properties, if you look at what we've been trying to do.

Acquisitions that we have done, they're all mainly younger properties. Even in Singapore, they are brand new properties.

While lease could be 22, 23 years left, they are all newer properties, better specs. If you look at our acquisition in US, we have done one DHL Indianapolis last year, and two weeks ago, DHL Columbus.

With these two acquisition, our modern specs warehouse in US is already more than 50 50%. That's how we want to refresh our property, which is why also mention development is one key strategy they already wanted to do, as well as AEI and redevelopment.

Hope I answer your question.

Can we move on to the next question? May I have the question from this lady, please?

Yeah. Jessie from Business Times.

Hello. Hi, William.

Hi, everyone. Good evening.

Is it on? Okay.

Maybe two questions from me. I'm kind of curious about the Telepark data center.

My understanding is that it's being redeveloped. Do we have a timeline of when redevelopment works will probably start?

In the meantime, I'm guessing the tenant has moved out completely. Secondly, occupancies are quite strong across the board, but I do note that for some of the Singapore properties, some of the older business parks, occupancies could be a bit better.

Could you maybe share some ideas of what Ascendas is doing to increase occupancy or yeah. Thank you.

Thanks, Jessie. I'll take your first question, and James can take on your second questions.

The property in Telepark, we are looking at development plans to increase plot ratio. If you're looking at timeline, now we are looking at where the government's consideration in terms of height limit.

I think government has mentioned that with the air base being moved, and as well as flight technology today, they can look at freeing up a lot of air space, which means that buildings can go higher. This is the reason why we've been asking the government to consider some plans for higher plot ratio.

I also shared before, when it's not part of the permitted master plan parameters, it does take a bit longer, easily a year, to get any of these plans being approved. I would say that we probably take this year to do all this planning.

Possibly if there's a development or any other options that we are looking at, we will look at it after we get the confirmation of what and what we can build in on that site, maybe next year.

I see. Currently, should we assume that occupancy is what is reflected in the supplementary information?

Yes. Yes, yeah.

For those who are planned for redevelopment, we also shared that there is no reason for tenants to come into the site, and we will not actually be actively marketing it. Because if it's slated for development or redevelopment, tenants comes in, then they subsequently got to relocate, there's a lot of disruption to their occupation.

We have, say for example UK, when we decided to redevelop one of the site that just vacated, it's part of a plan that we know that occupancy will fall away so that we can then prepare the site for development.

Thank you.

Yeah. On your question about Singapore legacy BP spaces, I suppose if you look at the the different sub-clusters that we have and where perhaps the occupancy is a bit lower would be one at the IBP cluster, which is in Jurong.

We are currently at about on average about 50% occupancy, and the reason for that is severalfold. We are progressively redeveloping the assets there to take advantage of the new MRT station that's going to come up.

We have got 27 IBP that is currently under construction, very close to TOP, and that would have direct linkage via pedestrian walkway or bridge to the new station when it opens. What we're also planning to do is progressively we will be redeveloping the other buildings that's within walking distance of the MRT, and in a in a way, you can think of it as ware housing those assets and you'll expect that the occupancy would continue to come down as a result.

Again, given the diversity of our portfolio, we feel that this is a worthwhile tradeoff because the future payoff is going to be much higher than if you were to try and just lease this on as-is-where-is basis. Next, I move on to the other cluster, which is in Changi, CBP, that was in the news about a year and a year and a half back when there was a lot of concern, there was a lot of negative news flow about that place.

If you look at how we've performed year-on-year, last year on average, we were doing about 81%. This year in December, we are at about 83%, there's a slight 100 basis point improvement.

Might not seem like a large number, but in a difficult and challenging market, we continue to outperform. There are a lot of things that we are doing or have done, including applying to the authorities for change of use from BP space to FSS, which is education.

We have got one of our buildings, 3 CBP, where we've actually done that. Progressively, we also have pockets of spaces within CBP that's been converted into such educational usage.

Our game plan is really to continue to engage the authorities to get them to accept different or adjacent users such that then they can we can really revitalize the entire vicinity. I'm very happy to say that the regulators are now a lot more open and receptive towards change of use because they have also come to the realization that the the legacy demand or users of BP spaces have largely reduced their requirements, and that we really need to find new sources of demand to to backfill those spaces, and they are really on board and helping us with that as well.

I hope I've answered your question.

Thank you, Jessie and James, as well as William. May I have the next question?

Joy from HSBC.

Hey, thanks. First question on cost of debt, can we get some guidance and in terms of currency of debt that is expiring for '26 and if possible '27?

Second question on divestment, can we look at the same pace or even more divestment in 2026, and in terms of sort of expectation on capex as well for '26? Thank you.

I'll take the second question, and Li Su can take your first. Divestment, we have done $500 million last year.

This year, we believe that we will work around $300 to $500 million in order to recycle and fund any acquisitions that we may come across. In terms of pace, we have some interest in some of the assets, as well as some of our assets that we think that it will be good for us to divest.

We are definitely working on this. I think you look at our track record, whether is it unsolicited interest or if it's an asset that we have pushed out to the market, we are always very keen to look at premium.

We definitely want to be able to recycle well in order to acquire better. Derek, hope you agree with that.

Have I answered your question?

The capex for '26?

In terms of our development, redevelopment, about $700 million ongoing. We will have about $200, $220, $230 of value to be turned on this year, primary from Singapore 27 IBP, as well as the US logistics.

That's frees up another $200 million for redeployment. I also mentioned that, on a rolling basis, every three years, we hope to be able to hit about $1.5 billion.

With the UK asset that we have slated for redevelopment and then the question about Telepark and all this adding on, we will still look that possibly is the same traction. Now about $500 million, we will add on more, because of $200 million will be freed up.

We add on more for until the end of the year.

That probably means if you're looking at acquisition, you will have to tap the market for equities.

Acquisitions, if you look at where we are in terms of leverage, even for our last acquisition in Columbus, in terms of leverage, hardly any impact, 0.1% or less. If you come across big acquisition, because we are looking at between $300 to $500 million, that's actually quite sizable already.

I recognize that, for example Derek mentioned, which is a fair point, our track record has been for past five years we've done about a billion each year, right? If we do on the same trajectory, we may have to look at tapping the market, yes, but nothing obviously I'm trying to say right now.

With the divestment, hopefully we can actually be able to recycle this capital. On that...

Thank you.

The interest rate for this year is a reduction from 3.7% to 3.5% this year. Based on what we see, we expect it to be broadly around this range for 2026.

3.5%?

Around. Then for expiry for 2026 and 2027, portion of SGD and the rest are AUD and USD.

Your SGD debt will come down and then your USD and Aussie debt will still go up? Is that fair?

No, it will not. It's refinancing, right?

You're asking which currency, it's AUD and USD mainly for the '26 and '27, and a small portion of SGD debt that's due for refinancing.

Joy, if you look at the tower, if you're asking for currency, I think Li Su has mentioned, part of it actually is foreign currency. Foreign currency against what we have contracted five years ago, easily 200, 250 basis point higher.

With the Sing dollar, Sing dollar I think is fairly stable from what we've done 5, 10 years ago. That tower will still be higher cost than what we have contracted, which is a norm, because every of this tower were contracted 5, 7, 10 years ago.

We will still be looking at refinancing on higher cost, but because with divestment, with new acquisition, new debt will come in at a lower cost, hopefully we are able to maintain, and we are all looking at maintaining about 3.5%. Hope that addresses your question.

Thanks.

Thank you, Joy. We will move to Mervin.

Can you ask your question? From JPM.

Hi, William. Maybe can you go to slide 39?

There's a US expiries. On this one, double-check for the '27 expiry, is that all logistics, and maybe can update us in terms of what's happening with the upcoming San Francisco office leases?

Thanks. '26 are mostly logistics.

'27?

'27 is office, majority is office. 1 SF building will be in the '27 bucket.

Are they staying, or...

They are staying right now.

Okay. Can we touch on one-north, Biopolis?

The potential movement within A*STAR, heard that Canon is moving from Galaxis to ATP. Can we talk about the competitive pressures there once A*STAR moves out, whether other people want to poach some of your tenants?

Thanks.

You can add on. Canon is still with us.

If you look at occupancy numbers, Galaxis, there's a dip. I think we all know that Shopee has downsized.

They have renewed the floors that they need. They have moved the ShopeePay to SeaMoney to Rochester.

That happens. We have talked about it for many quarters.

It only happened in the last quarter of last year. We are marketing those sites.

That's the two floors that we have right now. We have pipeline, and I think we are on track to be able to lease them up.

Right. If you are asking whether there's any relocation, musical chair, I think we face all the pressure all the time, including us poaching from other landlords.

Even for Geneo, I think we also have mentioned that there are new tenants as well as relocation tenants that we have worked on.

Sure.

Just to add on to what William has said, personally, I'm not too concerned, particularly for Galaxis. It has got direct connection to the MRT.

It's got fantastic retail offerings. It's just at the fringe of the CBD area.

Personally, like I say, I think that we'll lease it. It's just a matter of timing and the right tenant coming along.

Final question for me. Quite excited in '27, '28 with some of your developments, come on stream.

This should be a big boost to earnings, but you're doing more developments, it seems, which are much higher yielding than acquisitions. Can you talk about which markets look a bit attractive in terms of development or greenfield development?

Is that US more so, or still Singapore? Thanks.

If it's redevelopment, more Singapore. Where there's overseas opportunities depending on the expiry.

Just like UK data center is because of the tenant expire, and before they expire, we already put in application for higher power. The logistics that we come across in UK because of potential expiry about a year ago, we started looking at that, and we planned that for redevelopment.

Singapore continue to be attractive, given the fact that if you look at all current existing projects that we have, the key consideration is higher plot ratio. With higher plot ratio and if we can build better quality, higher plot ratio, we can introduce, for example, Geneo, we have introduced complementary users.

The amenities are doing very well. That actually is a good selling point given for employees of the tenants.

The other point also is because as we refresh our property, flight to quality is actually one key consideration the tenants has. While it's not easy for them to relocate because if we to come into a new building, they sign on a five-years, 10-years lease.

That's actually attractive for them because they can refresh their own office space, their own usage. With coupled with all these new work habits of work from home, flex office, for example, Geneo, I think we also have introduced a tenant who are able to do co-lab, co-working.

These are actually new solutions that we have bring about in our development. These are areas that we want to be able to continue.

Singapore will continue to be a place for us to look at development and redevelopment.

Just to clarify, also you said on a rolling basis, you have about $1.5 billion worth of...

We hope to achieve about $1.5 billion, so,

yeah.

Yeah. If you look at the projects that's been turned on, each year, we probably can turn on $200, $300 million.

This was the pace that we have built up in the past two, three years. We hope to accelerate that we can then do more development, and hopefully, as the time comes to lease new developments as they are in commission again, we will have that $500 million kind of a rolling basis.

Excellent.

Thank you, Mervin. We'll have the next question from Dale from DBS.

Thank you. Hi William and team.

Just wanted to follow up on what you just mentioned. When you do a redevelopment, you want to hopefully get more plot ratio, better use.

Going back to the IBP example, what should we be expecting when you want to rejuvenate the assets there? What kind of ROI are we expecting, and then, what's going to be changing there in terms of the kind of tenants that you can attract?

Most of the business park and Singapore assets in terms of development, we still be looking at say about 7%. For example, Geneo was because of the size of the project and the quality that we have built in, where we first announced about 6.3%, but where we have landed in terms of the occupancy as well as the rental, it has improved.

It's much better than 6.3%. If you take a development in redevelopment of 5 Toh Guan, we announced that time was between 6.5% to 7.5% to about 8.5%.

We've achieved today about 8%. I think this is where the yield on cost is attractive for us to develop, especially, for example, IBP, as James mentioned, is near MRT station, and that is actually be a game-changer for us.

In terms of the tenants that you can attract, do you expect it to be different from the kind of tenants that are typically there now?

Variety of tenants, okay, if a traditional BP tenants will be attracted to new buildings, just like Geneo we have demonstrated, there are relocation. It's a million square feet.

It's huge, and we can get tenants, both new and relocation tenants. I think that's where it's attractive for existing traditional BP tenants.

What James has mentioned, we are not just looking at traditional BP tenants. Given the some of these good location, take for example IBP near MRT station, we definitely will try to see whether we can incorporate other usage.

Potentially, the part of the higher plot ratio when we ask for white use to bring in other tenants to be able to have a better ecosystem. Oh,

potential to double plot ratio?

Don't know yet. Okay.

Then

my second question is on the Kim Chuan data center. You're saying that they'll be expiring soon, right?

What are the plans? Like you mentioned also, we know that the CFA2, that will probably affect whether you are able to redevelop or use it for data center again.

What should we be expecting for that site, and as well as I think there's another one coming up next year, right?

No more.

Singtel. Oh, this is the last one, okay.

Yeah.

Okay.

For existing data center, there's no way we can push ahead to redevelop a data center. We definitely need a CFA license.

It's either we partner with somebody, obviously we try to apply on our own, right? Our current position is we prefer to work with operator for these two sites, but it's actually challenging.

Given the fact where the government has announced about where they want the new data center hub to be, even a new data center operator were to be able to be awarded a license, I think the government also will encourage them to go to Jurong Island, right? For Telepark in Tampines, the underlying land use is commercial.

To be honest, I think it makes sense for us to redevelop or else look at commercial development, not a data center. Kim Chuan is existing data center, but because of the restriction of getting new power, the alternative will be industrial.

If you look at high-tech building industrial, they are probably similar in terms of core and shell, in terms of rental, to a data center. There is hardly any trade-off, because a core and shell that we lease out to Kim Chuan is most like a high-tech development.

Got it. Just to recap, I think with the last acquisition, sponsor now also has some data center operating capabilities, right?

They could also be someone you partner with in terms of data center?

Yes,

yes.

That's one option. Earlier, I also mentioned we can apply on our own.

All within hand.

Yeah. Thank you.

Thank you, Dale. We'll just ask one question online.

There's a question about what is management's plan to increase distributable income and DPU?

I'll answer that. I think the question was about the expansion of the enlarged unit base.

Probably just to clarify, we did the EFR last year at the beginning of June, but we managed to complete the acquisition only in August. I think there's a small time gap, and that's why it resulted in the slight dip of 1% drop in DPU.

If of course we can't, but if we had been able to do it, DPU would have been stable, same as last year. Because we do the EFR is to actually to fund DPU-accretive acquisitions, right?

It will be accretive. I'm sure that answered the question.

Thank you, Li Su. We'll move on to the next question, which is Jessie from Business Times.

Hello. Sorry, I wanted to clarify this earlier.

The part on Shopee, right, just to understand, currently, they only have space in 5 Science Park and Rochester, right? The two floors Oh, in Galaxis.

The two floors you mentioned which we are marketing those sites, the two floors that we have right now, we have pipeline, I think we're on track to be able to lease them properly. These two floors are at...

Galaxis.

Galaxis.

Okay. This is not a downsizing, right?

This is just a moving people around or...

It's a downsize in Galaxis. SeaMoney is not considered business park.

When they're given their license to be able to go into financial institution, they have to go into a commercial building. They have relocate that part of the business to Rochester Commons, which is a commercial building.

Right, and then the two floors are being backfilled.

Will be backfilled, yes.

We can say Ascendas is confident that they will be backfilled? Thank you.

Thank you. We're almost at the hour, if there are any final questions from the audience, you may raise your hand so that I can call out your name, and you may ask the next question.

If there are no further questions, then we will end this results briefing. Thank you, everyone, for joining online as well as physically.

We wish you a good evening ahead.

To bring this to a close, I just wanted to thank the investment team, asset management team. If you look at our 2025, it's a very busy year for us, and the staff here in CapitaLand Ascendas REIT, as well as our asset managers, property managers, has been working very hard.

Thank you so much. Thank you.