This meeting is being recorded.

Hi. Thank you for taking the time to attend our briefing.

I'll take you guys through the 4Q results, as well as the key highlights, before passing on to the rest of the team to take you through the rest of the slides. For 4Q FY25/26, for this quarter, our gross revenue and NPI are higher by about 1.7% and 0.9% year-on-year, sorry, lower by 1.7% and 0.9% year-on-year, mainly because of absence of contribution from our divested assets, as well as FX.

In terms of DPU, we're declaring 1.819 cents. This is 7% lower year-on-year.

If we are to strip out the divestment gains from the DPU of last year, DPU from operations at 1.819 cents is actually 0.9% higher year-on-year and 0.2% higher quarter-on-quarter. In terms of portfolio occupancy, we are slightly higher, 96.9% versus 96.4% last quarter.

Portfolio rental reversion is a positive 3.3%. If you are to exclude China, that's a positive 4.2%.

WALE stable at 2.5 years. In terms of capital management, aggregate leverage is slightly lower, 40.6%.

We managed to keep our interest cost stable at 2.6%. About 83% of our total debt has been hedged into fixed rates, and 75% of our income for the next 12 months have been hedged into Sing dollars.

Moving on to 4Q FY25/26 versus 4Q last year's results, revenue is 1.7% lower. This is mainly due to the absence of contribution from divested assets.

We continue to face currency weakness in certain currencies, although this is partly offset by appreciation of Malaysian ringgit, as well as Aussie dollars. The currency impact is also partly mitigated through hedging.

The lower gross revenue is actually mitigated by contribution from our completed redevelopment of Mapletree Joo Koon Logistics Hub, that's our AEI, and higher contribution from Singapore, Japan, and Vietnam, offset by lower contribution from China. We remain conscious of our cost containment, and for property expenses, we are slightly lower, 6.3% lower, although this is offset by contribution from Mapletree Joo Koon Logistics Hub.

If we are to exclude the impact of divestments and FX, gross revenue and NPI would have increased by $3.6 million and $4.1 million. In terms of borrowing costs, slightly lower, 3% lower, mainly due to lower base rates on our SORA rates, interest savings from repayment of loans with divestment proceeds, partly offset by interest incurred on loans drawn for our AEI that's recognized in the P&L post-TOP, as well as replacement of hedges at higher cost and higher rates for JPY loans.

All-in, DI to unitholders is 6.1% lower, and our available DPU is 7% lower, 1.819 cents versus 1.955 cents. If we are to strip out the DG as mentioned earlier, it's 1.819 cents versus 1.803 cents.

That's 0.9% higher. 12 months this year versus 12 months last year, revenue and NPI both lower, mainly for the same reasons as 4Q, absence of contribution from divested properties, regional currency weakness, which is mitigated with hedging, as well as mitigated by full-period contribution from acquisitions in the last financial year, as well as contribution from our AEI, higher contribution from Singapore, Japan, Vietnam, Malaysia, and Hong Kong, offset by lower contribution from China and South Korea.

Excluding the impact of divestments and forex, gross revenue and NPI would have increased by $6.1 million and $5.4 million. Similarly, borrowing cost is lower, mainly due to lower base rates on unhedged Sing dollar as well as Hong Kong dollar loans, interest savings from repayment of loans with divestment proceeds, partly offset by interest incurred on loans drawn for the AEI and capital expenditure, as well as replacement hedges at higher cost and higher base rates for JPY loans.

Accordingly, our DI to unitholders is 8.9% lower. If we are to strip out the DG component, adjusted DI to unitholders was actually 2.5% lower, and adjusted DPU from operations is actually 3.4% lower, 7.262 for the full year versus 7.519 cents last year.

Moving on to quarter-on-quarter results, gross revenue is slightly lower, mainly due to currency weaknesses, as well as absence of contribution from divested properties, mitigated by higher contribution from our AEI at Joo Koon. Property expenses increased slightly due to higher repair and maintenance expenses.

All-in, NPI is slightly lower by 0.4%. Borrowing cost slightly lower by 1.7%, mainly due to a shorter 4Q being a shorter quarter than 3Q.

Amount distributable to unitholders higher by 0.3%, resulting in a higher DPU of 0.2%, which is 1.819 cents versus 1.816 cents. Moving on to the balance sheet, you will see our investment properties higher than last quarter, mainly due to two key reasons.

One would be the completion of our India acquisition of about $56 million that completed on the 27th of March. We also have some valuation gains, which resulted in the higher investment properties amount.

I think Wan Lyoung will take you through the valuation assumptions later. Total debt is higher due to additional debts taken to fund the India acquisition, partly offset by lower net translated loans due to weaker JPY, Hong Kong dollar, and US dollar against Sing dollars.

Resultantly, NAV is stable at $1.22, same as last quarter. Leverage, 40.6%, and we managed to keep our interest cost at 2.6% for this quarter.

Moving on to our debt maturity profile, our debt maturity profile remains well staggered, with a healthy average debt duration of 3.6 years. We have about 2% of our debt that's due for refinancing in the new financial year.

We have sufficient committed credit facility of $700 million on hand to refinance debt due in the new financial year. In terms of the interest rate and forex management, we remain disciplined with our hedging policies, and so about 83% of our total debt is hedged or drawn in fixed rates.

Out of the fixed rate component, about $700 million are due for refinancing in the new financial year, we expect to replace this at higher costs. Together with the macro uncertainty and risks of higher base, we expect our interest cost in the new financial year to be at about 27 to 20 sorry, 2.7% to about 2.8%.

In terms of forex, we will continue to hedge our FX, but as of this quarter, we have about 75% of our income for the next 12 months that's been hedged into Sing dollars or derived in Sing dollars. I'll pass over to James for portfolio update.

Thanks, Charmaine. I will now go through the portfolio update.

In terms of the portfolio, it remained stable in 4Q. Developed markets continue to account for 70% of our portfolio by AUM and revenue.

There's only a slight increase for India contribution in 4Q after the latest acquisition in Mumbai. We have a diversified tenant base of close to 1,000 customers, who are handling mainly consumer-related goods.

Majority of the tenants, about 85% of our revenue, are serving domestic consumption, and only about 15% of revenue are serving the export informal market. Pleased to announce that 4Q, we had a set of strong operational results.

We have occupancy increase of 0.5 percentage points to 96.9% in 4Q.

Can you speak closer to the mic, please? Can you speak closer to the mic?

Thank you.

Okay. Five of our MLT countries registered positive occupancy increases, while the other four maintained the full occupancy in 4Q.

For rental reversions, we posted 3.3% positive rental reversion as compared to 1.1% in 3Q. Excluding China, it was 4.2%.

The lease expiry for FY26 went up to 36% by NLA. In 3Q, it was 32.8%.

This was contributed mainly from the leases from China that we renewed and replaced in 4Q, which had a WALE of less than one year. Overall WALE or remaining lease at 2.5 years by NLA as of 31st of March.

Our top 10 tenants remain stable, contributing 19.7% of our overall gross revenue. Now I will ask Wan Lyoung to [unclear] Wan Lyoung, please.

Yeah. Thanks, James.

First, talk about the accretive acquisition. In February last month, we announced the successful completion of an acquisition of a freehold Grade A warehouse in Bhiwandi, Mumbai.

The purchase price is about $50 million. It's 100% occupied to two of the Indian leading listed online e-commerce companies.

There's a long WALE of 3.9 years, right? It's the newly completed in August '25 with modern Grade A specs.

Moving on, the next slide, yeah, as you all know, we've been actively doing recycling and selective divestments. For the full year last year in FY25/26, we have actually managed to divest six assets at an average premium to valuation of 30%, right?

Next slide, yeah. The portfolio valuation, right, as you can see from the chart here, our latest valuation is about Sing dollar 13 B.

It's about 1.6% lower than last year of 13.3 B, right? This is due to a few reasons.

First, like I mentioned earlier, we've divested six properties last year. Then of course, due to the strengthening of Sing dollar, that's a currency loss of $300 about $300 million, right?

This is offset by a few positives. The first is we have a positive net value gain of about $47.8 million.

Then we've also completed our Mapletree Joo Koon project. Of course, the acquisition of the new asset I mentioned earlier in Bhiwandi, Mumbai, India, right?

A bit of color on this fair value gain of $47.8 million. Most of the countries actually we have seen fair value gain except for China and Hong Kong, where the market is still in transition and recovery phase, right?

Next slide, I think the last slide is really what we usually presented, yeah.

Okay. Greeting all.

I think amid all the tariff headwinds and the global uncertainty, right, MLT, as you have seen from the presentation done by Charmaine and James, we have posted very resilient operational results. You've seen high occupancy, and then you have also seen us achieving occupancy rate that is above the industry average.

For example, like China, this quarter, we are at 94.2%, and then industry average is still primarily around the 80s region. Also, reversions higher this quarter, with China assets posting negative low single digits, but that has slightly moderated from last quarter.

I think importantly, DPU from operations have shown a stability for consecutive four quarters. Right, I think, if you ask me on the Middle East conflicts, right, which is resulting in the higher oil prices, we are not seeing any significant impact in terms of the MLT operating costs, as the net electricity cost is quite negligible, less than about 2% of our property expenses.

Then in terms of leasing demand, it has remained stable so far. We have not seen any meaningful evidence of pullback in demand or any delay in decision-making for now.

Having said that, I think tenants with the higher cost pressures, they are likely to face some weaker operating margins. From what we have gathered so far based on our interactions, I think tenants are currently focusing on optimizing the energy usage, enhancing the operational efficiency, and passing down the costs to their customers where possible.

Having said so, right, I think with the Middle East crisis evolving, we remain closely monitoring for any second-order effects that could actually influence the business and consumer sentiments as well as the leasing demand. I think a lot of y'all are probably waiting for the outlook on the China, right?

I think in terms of China, what we are seeing now, it appears that there are signs of stabilizing, bottoming out, and we expect that the negative rent reversion to continue to narrow. We think it will take some time to turn to zero.

If you look at some of the recent news, I think incrementally, it more positive, and hopefully, it will spur the domestic consumption. Look at the China tier-one prices, it has reported some modest growth after 10 months of decline.

PPI turned positive last month, reversing a three years of decline. I think in terms of the current oil shock, China seems to have weathered it pretty well, I think largely due in part to their diversification of their energy mix, as well as they have also increased their focus on green energy.

In terms of the market supply and demand, right, by region, it remains that the West and Central China seem to have bottomed. In fact, I think for some of the lower-tier cities like Guiyang, Kunming, we are seeing stabilization, in fact, higher rents being signed.

In terms of the South, there's going to be a rising supply, but we have limited exposure, only two assets, and they are still having high occupancy. In terms of region, North and East China, Greater Shanghai, it is still of concern due to the high vacancy.

I think in terms of the expiry profile in the coming year, we have very little coming up from the North, but though we have more coming up from the East. We think that in terms of the absorption, we expect the East region to recover faster due to the higher consumption power.

I think that's the outlook on China. For Hong Kong, in terms of the leasing sentiment, it remains cautious, but if you look at the retail sales, it seems to have bottomed out.

Residential housing also seems to be on a recovery mode. In terms of the supply, we have seen that the market vacancy is increasing.

We already started engaging our tenants for the upcoming expiries. Prelim discussion is most likely they will renew, but I think in terms of the outlook would probably be very modest kind of reversion outlook.

I think that sums up some of the key market outlook that I have, and maybe I think I'll leave it for Q&A.

Hi, Jean and team. Thanks for the call and, yeah, congrats on the results.

Just noticed the adjusted operating DPU first year-in-year increase in over 3 years, and as you mentioned, fourth consecutive quarter of Q-on-Q improvements. Very excited by that.

Just on China, I think you seemed to be pushing out the time period when the reversions hit towards zero. I think previously guided fourth quarter or first quarter '27.

Do you have a time when that zero number might appear? Second question I have is any updates in terms of divesting some of your China properties to your sponsor's RMB fund as the sponsor raised money for that RMB fund and timing of these divestments in quantum?

Thanks.

Okay. I think on when it will turn neutral zone, I think we are probably looking at another 3 to 3 to 4 quarters in terms of turning neutral for the reversions in China.

Then your next question on the China divestment, so far, we have done, based on the 1 B that we have identified, we have done about $270 million to date. In the current financial year is $100 out of the 270.

In the pipeline that we are looking at, we are targeting about 200 to 300, and that includes the RMB fund that we are currently working on. There has been some delay, and right now, we are looking at 2Q of the new financial year to actually sign some binding documents, primarily because there have been some change in the LP partner, and then the new replacement LP partner is undergoing due diligence at the moment.

I think hopefully, I think by second quarter, we can look at China divestments coming on stream.

Okay. Sounds good.

I'll let others ask questions.

Hi. Good evening.

Can you hear me?

Hey, hi. Hi, Jean and team.

Congrats once again. I think a stable set of results, looking forward to that.

My first question is on your reversions, right? I noticed that Hong Kong is also tapering off.

I think you're guiding that it will likely flatten out. Just wondering, whether if you look forward to the next financial year, will Hong Kong turn negative, or is any other country that you think we should be a bit more cautious about at this moment?

Yeah. It's my first question.

Okay. Derek.

I think in terms of reversions, for now, the negative reversions will be pertaining just to China. For Hong Kong, we are not seeing negative reversions at this point in time or in the new financial year.

It is most likely a very modest kind of reversions, like maybe 0.5% kind of region that we are looking at, that we are aiming at currently.

I see. Okay.

The rest of the market's yeah.

Sorry, go ahead. Sorry.

Yeah. The rest of the markets remain good.

Okay. Okay.

Got it. Then my next question is on your asset recycling, right.

You mentioned you want to sell, sorry, 200 to 300 million. How about acquisitions?

Could you give us a sense on your acquisition strategy for the next financial year?

Okay. I think for acquisitions, I think right now, our target markets are still the country that are beneficiaries of the supply chain diversification.

We're looking at Vietnam, Malaysia, India. That is still the strategy that we are looking at to actually increase our presence in this structurally growing market.

At the same time, I think in terms of Singapore, we are also looking at some opportunities in Singapore, but it still remains pretty opportunistic. For Singapore, if you recall, we have so far been focusing more on the organic growth in terms of asset enhancement initiatives.

We've just completed our fourth Joo Koon last year, and right now, we are planning for our fifth one in Singapore, and that's going to come out in the east of Singapore. It is something that we are looking at organically to grow the Singapore portfolio.

Then for Korea and Australia, I think in terms of the yield spread, it is very tight. I think, particularly for Australia, I think it is very difficult for us to do any accretive acquisitions, and then we are looking at RBA looking at high inflation, with planning for a rate hike.

Korea is something that we are still exploring, but it depends on how strong is the accretion. For Japan, though the interest rate outlook is on the rising trend, but if there are opportunities that shows organic growth or a more better rent reversion or built-in escalation organic profile, I think we are open to pursue as well.

Okay. Got it.

Yeah. Thank you very much.

Sorry. Just last one, right.

Interest cost rate, I think Charmaine had done a great job, 2.6%, has been flat. How much more can she hold it at this level, or should we be pricing in some increase?

Yes, you should be pricing some increase. Thank you for emphasizing I've been able to keep it at 2.6%.

I think on the interest cost front, we are seeing higher interest cost in a lot of the currencies. We have about $700 million of hedges that will be falling due off.

This will have to be replaced. Included in this 700 JPY that are locked in at 0.3% base rate or 1.7% Aussie dollar base rate.

All these will have to be replaced. We'll see how we manage the portfolio.

We will tweak the currencies around a little and target to keep it at about between 2.7% to 2.8%. Yes, we are forecasting it to grow in the new financial year.

Okay. Got it.

That's all from me. All right.

Thank you.

Thank you.

Hi, Jean. Can you hear me well?

Okay. Yes, great.

Thank you. Thanks for the presentation, and congrats, good to see the growth in DPU.

A few questions from me. I think firstly, the reversions, especially for Singapore, has been quite strong.

Any guidance on your reversions for the coming year?

I'll let James answer.

Rachel, yes, last quarter, we registered quite a good reversion because of tech supply for big warehouses, and we had a few expiries, which was renewed in our ramp-up warehouses in Pioneer and 6 Pioneer, Jurong Loghub, and Benoi. That helped us to push up the reversion.

In the next few quarters, depending on lease expiries in the various quarters, and whether they are in older properties and ramp-up properties, we are still fairly confident to maintain between, say, 3% to 5% range positive reversions.

Okay. Sounds good.

All right. Then maybe my next question is on the Mapletree Joo Koon Logistics Hub.

Very good that you are fully leased out. How much of the income has been recognized in 4th quarter, and how should we look at in terms of rental income coming through in FY27?

When will we see the full income coming through?

We will see the full contribution coming in in the second half of the new financial year.

Okay. 4th quarter was very minimal, is it?

4th quarter, we are looking at about $3 million. $3 million, yeah, 2 to 3 million.

2 point, yeah, around $3 million, round up.

Okay. Then maybe just to follow up, right?

If you're expecting some increase in interest expense, do you think that the rental income from this Mapletree Joo Koon can offset the increase in interest expense?

In terms of the interest expense that Charmaine has mentioned, 2.7% to 2.8%, yeah, we should be able to absorb that.

Yes. If you're looking at the additional income, the full-year contribution from Joo Koon itself would be sufficient to offset the higher interest cost.

Sounds very good. Okay.

All right. That's all from me.

Thank you.

Hi. First question is on the lease expiry of 36%.

How much is China? The earlier rent reversion guidance 3% to 5%, has that already taken into consideration China at zero to slight negative?

Tan Shen, for the 36% lease expiries falling next year, China is contributing about 55% of that.

Right. On the rent reversion, it's a portfolio basis, right, including China?

The 3.3% includes China.

Sorry, I mean the reversion guidance of 3% to 5% for next year.

That's for Singapore.

That's for Singapore.

That's for Singapore.

Right. Okay.

The guidance for this China, it is actually still in the low negative single-digit territory for China.

Okay. Do you have a portfolio reversion guidance?

Okay. Then on the divestment, right, how are you thinking about redeployment of proceeds?

Is it to acquisition, debt repayment, and also on perps, any plans to pare it down? It's expiry in November this year, right?

I think if you look at what we've done last financial year, our recycled proceeds has been channeled to the AEIs, the 5A Joo Koon AEI, as well as we channeled into acquisition. I think looking ahead, while we are waiting out for any acquisitions, meanwhile, definitely, the recycled proceeds at first would be to pare down the debt from recycled proceeds.

That would be the first thing that we would do. Thereafter, we will see in terms of the opportunities that we have to rechannel our funds.

What we've done last year is to the India asset, as well as to the AEI. We would look at the similar approach.

On the perps, maybe Charmaine?

I think divestment proceeds, other than that, we also depends on the timing of the divestment proceeds. Yes, we have a batch of perps that's coming due for refinancing.

With the divestment proceeds, depending on our leverage at that point in time, we could look at refinancing the perps, or a mix of perps, and debt.

Okay. All right.

Thank you.

Hey, evening. Just want to touch a bit on the lease expiry profile again, right?

Could you sort of share with us the split by region for this 20% of expiries in China for FY27?

Brandon. I think in the new FY, in terms of the expiry by region, the majority is coming out from the East, followed by Central, and then North.

East, we're looking at about 45% out of the 20% due. Central, we're looking at about 28%, North about 16%.

Then for West and South 4% and 7%. That's the breakdown in terms of the lease expiry profile for the new financial year in China.

What's the rough retention rate that you are looking at?

Right now, if we look at so far historically, we have about 90% success rate. If you look at our lease expiry for the past 2, 3 years, our expiry had been hitting about 30%, and we manage to retain them.

That's why in terms of occupancy, you have seen that it's still maintaining pretty high. In that sense, we have been able to achieve a high success rate.

That's why our occupancies remain pretty resilient.

Got it. Okay.

Also want to go back to your comment on the acquisitions in those supply chain diversification countries like Malaysia, Vietnam, and India, right? Is it correct to say that this will be mostly coming from your sponsor pipeline?

A follow-up question is if you look at the way the currencies in these places are going, right, especially for India, even though you get pretty strong reversion, but they are all eaten up by the depreciation in forex, right? Why do you still want to look at these markets?

That's my question, yeah.

Okay. I think in terms of these three markets, is it because of sponsor?

I think it's also because where if you look at the supply of Grade A assets in these three markets, it is generally a little bit more limited in terms of modern specs. Opportunistically, there may be some coming out from third party, but it has been pretty on a smaller scale.

In terms of access to sponsor pipeline coming up from these three, we have that access to tap on. To your question on this forex, right, I think in terms of where possible, we will adopt the natural hedging by taking on the onshore loan.

Just to give you an example, in the recent India acquisition, what we have done is we have increased the natural hedge by taking on a 40% loan onshore. That helps to mitigate in terms of some of the forex movements.

Then where possible, I think from the income hedge perspective, where the hedging cost makes sense, I think we will try to also lock in some to actually kind of mitigate the forex risk. I think if we look at more on the deal attributes, right, I think in this case, in terms of the markets where we are looking at structural growth, these are the three markets that are showing potential, giving higher growth, having a higher GDP compared to the rest of the Asia.

Particularly, if we look at this India acquisition, we are looking at some inherent attributes that cannot be replaced. We are looking at an asset that is in a very good location, prime logistics corridor, and it's a freehold asset.

Admittedly, in terms of FX, if we look at the last 12 months, indeed, Indian rupee has been very volatile, I think due to the global headwinds. If we take a more medium- to longer-term outlook, stripping out this 12-month impact, right, taking a 5- to 10-year kind of depreciation trend outlook, we are looking at about 2.5%, more on the medium- to longer-term horizon.

If you look at the rental growth that is in this market, like again, I pick the example, the recent one that we did in Mumbai, we are looking at about 5% rental growth. I think in terms of underlying rentals compared to where some of the newer tenants are signing, there's actually a 10% kind of reversion opportunity.

Currently, it's about 10% below the market rents because one of the tenant there recently expanded into a nearby warehouse where they are signing rents that's 10% above what they have locked in in this asset. I think that there are some tradeoffs indeed, but I think if we look at more on the medium- to longer-term horizon, that presents some growth opportunities in that sense.

Got it. Okay.

I hope that helps.

Yes. Yes.

Okay. Hey, thanks so much.

I'll go on to the next one. Thank you.

Okay. All right.

Hey, can you hear me?

Thanks. Just two quick questions.

First, can you share in terms of the hedged FX rate for this FY and also what can we expect for the hedged FX for next FY?

Yeah. Can you share the No, no.

What are the rate that you are hedged at for your key currency for FY25/26 and what can we expect for 26/27?

Should be for next 12 months, right? 25/26 is over.

Yeah.

You're referring for the next 12 months.

For the next 12 months. If you can share what was for the last 12 months, that would also be very helpful for us.

Okay. Yeah.

The second question, can I confirm earlier you mentioned about the China fund, did you mention that there's a change of LP?

Yes.

Can you give the background of the LP that decided to drop out and the LP that are currently doing DD?

I think that is pretty sensitive info. I think what we are able to share at this point in time is that we have found a replacement LP, and they are right now in DD, and we are progressing hopefully towards signing some binding in second quarter of the new financial year.

Okay. Cool.

That's helpful. That's all from me.

Thanks, Renee. Hi, Jean and team.

Congrats on the results. Just wanted to check, you guys have so many things going on, and then potentially higher interest rates.

Just wondering, in terms of FY26/27, where should we be looking in your DPU? Should we be expecting some form of growth or should it be flat?

Dale. Okay.

Golden question. Okay.

Not sure if you can share.

Oh, sure, sure. Okay.

I think looking at what we have achieved in the past four quarters, the base case outlook that we are looking at is also around the 1.8 cents per quarter. This is barring any major economic downturn, as well as significant movements in terms of the forex as well as the interest rates.

We mentioned earlier, in terms of there will be organic growth from countries like Singapore and then the three smaller markets Vietnam, India, Malaysia. The Joo Koon AEI will also be contributing in the second half.

With that, that should help to offset the higher interest costs that Charmaine has guided earlier, the 2.7%, 2.8%. Net-net, we are looking at a pretty flat DPU.

Fair enough. Okay.

My second question is, I think earlier you did share that, with all this, rising oil prices, rising utility, you guys are quite insulated. Not sure if, the second-order impact, because in logistics, I'm assuming freighting cost would be a major thing for your tenants, right?

Are you seeing any specific group of tenants or any specific regions that are at risk of higher costs or being out of business?

Okay. I think from the 3PL tenants, right, what they are trying to do, the larger ones, they are trying to pass on the in terms of the higher air and shipping costs via imposing some fuel surcharge.

Also, some of the larger tenants, they are able to pass on some of the costs to their end customers because they based on their contractual agreements. I think what will probably have a bit of struggle is probably the smaller ones, they may face the margin squeeze from their operating cost.

That's on the 3PLs. I think we do have a very small number where they are importer and exporter of food products.

They are also trying to pass on to their end customers. I think right now, where possible, they are trying to pass down.

I think the other smaller group, which we are probably also monitoring closely, is those maybe our cold storage tenants, although we don't have a lot, but because they are typically a high consumption user. That's something that we will remain watchful.

Yeah.

Okay. Probably now it's still a bit too early, right, to tell?

Yes. Yeah.

Yes.

Got it.

It's still in the early days, yeah.

Got it. That's all for me.

Thank you.

Thank you.

Yeah. Hi.

Good evening. Two questions from me.

Firstly, in terms of India acquisition, would you be able to provide the NPI yield for that?

What do you say?

Yield.

Our NPI yield is 7%.

Okay.

Because I mentioned it's about 10% below market, if we look at the current market, it's probably 7.7% kind of range.

Sorry, you bought the asset at 10% Oh, okay, okay. Based on the market rent, it should be 7.7%.

Yes. Because right now, the rental that's locked in, it is 10% below market in terms of the rent.

Second question is in terms of your some of your shorter lease assets in Singapore, the 5% of your portfolio which is below 20 years, have you been able to engage the authorities in any of this, and what comfort should we expect for some of these lease, which the land leases are coming closer to below 20 years and closer to 10-year mark?

Okay. I think for those that are with short land lease, we have where possible, for assets where with redevelopment potential, we have been trying to engage the authorities for some potential lease extension.

Some of the assets they are under the 10-year mark, we are still talking to the authorities. What we are working on is potentially, we need to secure a good anchor tenant in terms of their business plan and financial projections to discuss with the authorities.

Where possible, we will try to have our land lease extension. We have also tried to divest some of the shorter land lease, but because of the nature, it is a bit more opportunistic, and it depends on the profile of the users that's looking at, because typically, these assets that we have in Singapore, these are mostly pertaining to Singapore, the short land lease, are very small older type of generation kind of industrial assets.

We are still sourcing for tenants or buyers that actually find such a facility suitable for their business operation. Yeah.

Vijay, I hope that answers your question.

Okay. As long as you have a tenant backing, I think authorities are ready to extend the lease?

If there is a good business plan, they remain prepared. Provided that the region or the vicinity that we are looking at, it is not subject to their master redevelopment planning.

Okay. Got it.

Thank you. That's all I have.

Hey, yeah. Just wanted to go back to the divestment part, right?

Can I just confirm that your FY27 target divestment amount is $200 to $300 million?

Yes.

Over the past 6 months, your divestment momentum seems to have significantly slowed. Is it because you were spending all your time on China and that got delayed, or is it because the environment has just become tougher itself?

No, I think what we have wanted was the China divestment, so that has been delayed. In that sense, you're right is that we was working on the China piece.

Whether the buyer sentiment has died down, I think no, because if we focus on the China market, in fact, we still continue to see interest from buyers. It is just that there is a pricing disparity that we are looking at right now.

In terms of interest level, in fact, we have a bit more compared to last year, but the pricing disparity remains the same. Having said that, there are some which are looking at a bit narrower price gap.

I think that's something that we are also exploring.

The goal is to sell at book value, though?

Yes.

Okay. Just to close off the loop on your reversion guidance, right, can you just share with us what we could see for Japan, Korea, and Malaysia for FY27?

I think James, you want to?

For Japan, the 4Q we recorded 6.2%. It may seem fairly high, and that was coming from two leases.

One of them was a long-term lease at 5 years, it's marked to market for that one. Looking at this trend, for the next few quarters, there could be a couple of leases that could be renewed similarly.

The guidance that we can advise for the next two quarters could be between 3% to 5%. Korea will be closer to 3%.

Okay.

2% to 4%, yeah. Because we think the market is picking up.

Okay. Can.

Hey, and also just one more thing on the East redevelopment that you just mentioned, right? Can I just confirm that is the two Changi South plots which you buy?

Could you give us some estimate value or in terms of timeline, when do you tend to start this?

In terms of the timeline, we are looking at next year, more the second half of the year.

Middle of the year.

Yeah. In terms of the quantum, it is about one about 200 range for now, yeah.

We are still fine-tuning the numbers, but I think in terms of the implementation timeline, it's the second half of next year.

Got it. Okay.

Hey, thank you so much. Thanks so much.

Hi. Thanks, Jean.

I think you're earlier alluding to the second-order impact amongst your tenants. Could you project that across the markets?

Because obviously, I think Southeast Asia, India would be more formidable, and maybe even Japan. Any thoughts on those markets, and maybe Singapore as well?

I think right now, what we are looking at is more the tenant sector. I think I've mentioned earlier in terms of the 3PLs, the larger ones and the smaller ones, the level of margin squeeze that they will face.

More from the tenant perspective that we are looking at. If you look at on the country level, I think on the government level, some of the countries like China, Vietnam, Malaysia, they are either having some form of fuel subsidy or cutting in terms of their import fuel levy to kind of cushion that.

Right now it's still a bit too early for us to quantify in terms of the leasing demand, but I think that's what we are seeing right now.

Okay. What about Singapore?

Is there anything you can share?

Singapore?

In terms of like Jean has shared, I think

Sorry, James. You're a bit faint.

Yeah. Sorry.

Like what Jean has shared earlier, the larger logistics companies are definitely more muscle to pass on the increased cost for transportation, at least. Transportation cost typically is 60% to 70% of the logistics cost.

The balance could be warehousing, and packaging cost, etc. So, 60%, 70% of this transportation cost for 3PLs are able to be passed on, or final of them, through surcharges for then transportation.

Again, we also receive feedback that some of them it take time to negotiate, right, because some of the contracts are fixed for, say, 2, 3 years. By and large, the bigger boys are able to pass on the cost to their customers, right?

It's the smaller boys that they have less resources and less power to negotiate, right? Their margins would definitely be squeezed.

Okay.

The other thing is

Sorry, please go on.

The other thing from our observation, there's no significant increase in demand for short-term space from the shipping disruptions, whether it's for inbound, outbound for the Middle East. We didn't see the so-called spike in short-term demand, right, acquiring a short-term spaces.

That's one observation that we see.

Okay. No just-in-case demand.

Okay. That's all I have.

Thank you.

Hey, hi. Just one follow-up.

When you mentioned the AEI is second half of next year, this is financial year, is it?

Calendar year, 2028.

Huh? No, next year.

Oh, next year 2027. Yes.

Correct. Okay.

Then my next question is on Hong Kong divestment. Is the Hong Kong asset divestment included in the 200 to 300 million, and any update on potential Hong Kong buyers?

In terms of Hong Kong divestment, for a part of the 2 to 300, we are still trying to divest one more mid-sized one, but that one we are still working on it. I think we are also having some very small strata-titled units that potentially may have some interest.

While we are trying to actually sell the larger ones, but at the same time, we are seeing some interest on our strata units, which are very, very small units. Yeah.

Rachel, I hope that answers your question.

Yeah. Okay.

Then one last one on China. The reversions, I think last time you guided that it will break even soon, but it didn't, right?

Is it because the East market is worsening a little bit, are you seeing a bit more supply coming through?

No, I think in terms of the North and East, the vacancy remains high. That's why, and then also with the high proportion of our expiry coming out from East, we remain a bit cautious and watchful.

We would want to see how our expiries in terms of negotiation are panning out for the first quarter, because right now, in terms of the renewal cycle, it is getting very, very short. In terms of short leasers, quite a number of our China tenants are still doing pretty short leases.

In that sense, the visibility on the rent that we're signing, it is a very dynamic.

Understand. Any improvement in demand at all, or still the same?

Absorption rate we see in the East has improved, although there's still a large supply. The East China some tenants they see because of the higher consumption power, the absorption is quite really pretty strong.

I think if I can point out some color on the improvement in occupancy 4Q versus 3Q, the improvements largely came from the East, Central, and West region. Yeah.

That is the spike that we saw in the 4th quarter. There are improvement occupancy coming up from these three regions.

Okay. All right.

Thank you so much. Thanks for the color.

Thank you.

Hi, evening, Jean and team. In terms of valuations, can I just get some clarification?

For example, your China reval was only down by about 1.5%, and rental reversions was more negative right throughout the year. Hong Kong as well, it was marked down, but your reversions was generally slightly positive.

Then for Vietnam, strong uplift. Cap rates looks like the same.

Was it driven mostly by rental increases assumptions? Overall, do you expect some cap rate expansion for this new financial year, especially in markets like Australia, for example?

In terms of Vietnam, the reval uplift is actually coming out from the organic growth in terms of the rental growth. Then in terms of Hong Kong, it is actually coming out from some expansion that we are looking at.

Some cap rate expansion happening in Hong Kong. For this set of numbers, in terms of expansion, we are seeing it in Hong Kong and then two cold store assets in Korea.

In terms of the compression, right, we are seeing it actually happening in Australia, Malaysia, and India. The rest of the improvement are largely coming out from the better rents.

Okay. How about for China?

For China, it's mainly due to the lower rents.

Why would the assets not marked down by more? Because your reversions was kind of more negative, right, compared to that 1.5% that we saw that was impact.

Is it based on assumptions that the rental outlook will improve fairly materially?

I think what the valuers do, right, they basically do a DCF over the 10 years, right? They actually have a view of where the market rent is.

Like what you say the rental reversion is there, the negative rental reversion. However, the valuers will take a view of when the lease is expired and it's renewed, where will be the market rent, and then how will it grow going forward over the 10-year period.

They will have baked in some recovery over the medium to longer term. Would that be a right assumption?

Yes, that's right.

Okay. Another question in terms of AI for logistics, right, I'm just thinking from a landlord perspective, do you need to kind of provide any AI, or do you need to use any AI to kind of entice tenants, or are the AI kind of tools, etc.

driven mostly by the tenants themselves?

In terms of AI, what we see is they already started using is consider AGVs, autonomous guided vehicles. They are already being operated by some of our e-commerce companies, pharma distributors in places like Hong Kong.

The requirement are basically flat floors, super flat floors, and which we need to build, to develop and build our surface. Secondly is the power supply.

Power supply has to be adequate to cater or to be upgraded to cater to the extra power usage to drive this automation equipment. In terms of AI, well, is more on the hardware to be able to get our tenants to deploy.

Okay. Thank you.

Thank you, all. Bye-bye.