Thanks, Kiara, and good morning, and thank you to all of us for joining today at our first half results discussion, and a bit of a strategic update as well. If we turn to page 2 of the first half results presentation, CERT's €2.2 billion portfolio is predominantly freehold logistics and light industrial assets located across Western Europe.

The portfolio is highly diversified, supported by nearly 800 tenants and a long weighted average lease to expiry of 4.9 years, providing the resilient and visible income streams. The Netherlands remains our largest country exposure at approximately 30% of the portfolio, reflecting its importance as a key European logistics hub and the strength of its high-tech and export-orientated economy.

Our assets are concentrated in major gateway cities and strategic logistic corridors, including Amsterdam, Paris, Milan, Frankfurt, and Copenhagen. Overall, CERT has built a large-scale, high-quality European logistics platform that continues to deliver the stable cash flows, while our emerging data center development portfolio provides an additional avenue for long-term growth and value creation.

Before we get into the results, I'd like to take a step back and summarize CERT's transformation over the past 3 years. This is a story of a REIT that has undergone a meaningful reset and emerged in a structurally stronger position.

Today, CERT is in a materially stronger position. Logistics, light industrial, and data centers now represent the majority of the portfolio.

Our balance sheet has been strengthened with no material refinancing requirements until 2030, and distributions have stabilized. CERT has a new and aligned sponsor based in Europe in the SWI Group, or Stoneweg.

Looking ahead, we see multiple pathways for future value creation, including rental growth across the logistics portfolio, asset enhancement and redevelopment initiatives, and substantial growth from our data center development strategy, while continuing the capital recycling that we've been undertaking for the last 3 to 4 years. This morning, we also announced that discussions are underway with our sponsor, SWI Group, regarding various strategic, governance, and organizational initiatives that will further enhance alignment, simplify the platform, including the potential internalization of the REIT manager and the asset management platform, to create long-term value for securityholders.

I should add that no definitive agreement has yet been reached, and any proposal would remain subject to local laws, regulatory, and securityholder approvals. Watch this space, as they say.

Against that backdrop, let me turn now to the first half results. Turning to page 4, the right-hand chart shows the current portfolio mix designed to capture steady and growing income from logistics and substantial growth potential within our data center options.

The left-hand chart shows our medium-term allocation targets, continuing our pivot to logistics and data centers, and funded by the steady sell-down of our office portfolio. Logistics and light industrial already represent the largest asset class at 56% of the portfolio, and we target to increase this asset class to around 70% by 2028.

We remain constructive on this sector, supported by strong structural demand, healthy occupier activity, and continued positive rental reversion across our key markets, while also leaning heavily on our platform's value-add DNA in this sector. Alongside this, data centers provide an additional growth pillar within the stapled trust structure.

Our dual-track approach combining investments in Aonix with selected conversion opportunities within the REIT's existing portfolio provides a pathway to increase data center exposure from 7% today to around 15% to 20% over time. At the same time, we continue to reduce office exposure from 45% back 3 years ago to now 35% today, with a target range of 15% to 25% by 2028.

Overall, the portfolio is becoming increasingly concentrated in sectors where we see the strongest long-term growth opportunities in both income and value, and where we feel we have a competitive and scale advantage. Having covered the portfolio strategy, let's talk about the first half results, specifically on slide 5, which demonstrates the strength of Stoneweg's local teams and the benefits of the strategic actions we've taken.

I'm pleased to report that the first half 2026 distribution per security is 6.642 cents, euro cents, up 1.4% year-on-year, and remains consistent with the board's DPS guidance for the full year to be broadly in line with that of last year. Operationally, performance remains steady.

Like-for-like NPI increased 1.3%, supported by continued strength in our core assets and core portfolio, while distributable income and DPS remain slightly ahead of the prior period. NAV per stapled security remained broadly stable.

Leasing activity, as you can see with the key stats here, was healthy during the half, generating positive rent uplift and supporting occupancy increases across the portfolio. Our balance sheet is in very good shape, which enabled a small but accretive buyback.

Turning to capital recycling, we continue to execute on our portfolio repositioning. We acquired a €35 million million logistics facility in 's-Gravenzande near Rotterdam at a meaningful 8% discount to both valuation and 37% below reinstatement cost.

We also invested €50 million into Aonix by providing a mandatory convertible instrument. I'll discuss more of these features later.

Importantly, both investments are accretive to DPS. On divestments, we completed the sale of Riverside Park, a Warsaw office asset, at a 5% premium to val.

This transaction is consistent with our ongoing efforts to reduce non-core office exposure and further reinforces the pivot towards logistics and light industrial. Turning to slide 7, CERT has now delivered its fifth consecutive period of portfolio valuation growth despite a period marked by geopolitical uncertainty and higher interest rates.

The portfolio valuation is up €23 million or 1.1% in the half, driven primarily by growth in passing rents and overall market rent growth across the portfolio. The gains were, not surprisingly, led by our logistics assets.

Our jewel in the crown, Parc des Docks in Paris, is now our largest asset by valuation at over €180 million, increasing by €9 million during the period, again as higher passing rents and new leasing activity continue to support the value creation. This asset is almost doubled the value from our original purchase price.

Our other very strong-performing asset, Veemarkt, which is a last-mile park in Amsterdam, also performed well, contributing a €3 million uplift, again on the back of record level rents. Within the office portfolio, Haagse Poort in The Hague, now our second-largest asset at €177 million, recorded a €3 million valuation gain, again driven by early indexation of the largest tenant Nationale-Nederlanden's new lease, which commences in 2027.

Nervesa in Italy also delivered a €2.2 million uplift, supported by positive indexation and a reduction in leasing incentives. Overall, the valuation results demonstrate the quality of the portfolio and our local Stoneweg teams' ability to drive value through their active and experienced asset management.

Beyond acquisitions and divestments, we're continuing to create value through targeted asset enhancement and redevelopment initiatives across the portfolio. The slide here shows three examples.

As mentioned previously, in The Hague, we're working alongside NN on an ESG-led repositioning that will transform this asset into one of the most energy-efficient and employee-focused and friendly buildings, directly supporting the tenant's strategy. Construction is expected to commence in the first quarter of next year, with completion targeted by mid-2030.

Importantly, this initiative has already supported rent reversion of more than 50% with the new 20-year lease, which commences from the start of construction, not at the end. In the UK, we're expanding our relationship with Thorn Lighting at Spennymoor through a new 15-year lease running to 2039.

The project includes the development of an adjacent new warehouse and rooftop solar installation with an estimated yield on cost of 6.3%. Lastly, at Ruysdaelkade in central Amsterdam, we've secured an irrevocable master plan for a premium office redevelopment adjacent to the Amsterdam Central Station.

Construction should be ready to begin in the second quarter of next year, well within the current tenant's demand in this part of the cycle for this type of premium product. Turning to sustainability and governance as my last slide for the opening remarks, I'm pleased to report that we've met or exceeded all three sustainability-linked KPIs embedded into our financing framework, covering green lease scope 3 tenant commitments, BREEAM or LEED certifications, and our annual GRESB score.

We have almost achieved half of our 2030 greenhouse gas emission reduction targets, although there remains more work to do on reducing energy intensity across the portfolio. These efforts continue to be recognized externally.

In the latest Singapore Governance and Transparency Index announced only a few days ago, CERT ranked amongst the top six REITs and business trusts in Singapore, and now has placed in the top 10 for seven consecutive years, reflecting our longstanding commitment to strong governance, transparency, and stakeholder engagement. In addition, MSCI recently upgraded CERT's ESG rating from single-A to double-A, with CERT recognized as a leader among more than 500 real estate management and service companies globally.

Together, these achievements reinforce the progress we're making in strengthening both the sustainability and governance foundations of the platform. With that, I'll now hand over the presentation to our Head of Finance, Wee Cheng, to give you more details on the financial results for the half.

Thank you, Wee Cheng.

Thank you, Simon. Good afternoon, everyone.

I'm pleased to present CERT's results for the first half. The figures on this slide are on a consolidated basis and include both the REIT and the business trust.

Further details are available in the financial statements released earlier today. First half net property income was €64 65.4 million, down 2.3% year-on-year, mainly due to the impact of asset divestments.

Excluding this effect, the underlying operating performance remained resilient. In particular, when taking into account the €2 million contributions from our investment in Aonix, NPI was broadly in line with the first half of 2025.

On a like-for-like basis, NPI increased by 1.3%, driven by the continued strength of the logistics and light industrial segment. Excluding Barajas, which was reclassified from the office sector, NPI from this segment increased by 2.7%.

Interest costs were 5.2% higher due to higher borrowings. Our cost of debt remains stable at 3.9% compared to 3.86% a year ago.

Distributable income was in line with the first half of 2025. Distribution per stapled security increased by 1.4%, supported by the securities buyback program, which contributed approximately 1% to DPS growth.

The waterfall chart on slide 12 shows the key movements in the distributable income compared with the prior corresponding period. Encouragingly, strategic initiatives increasingly contribute to earnings growth.

Contributions from Aonix, the Netherlands acquisition, and stronger logistics operations largely offsets the earnings impact of asset sales completed under the portfolio repositioning program. This demonstrates the progress we are making in recycling capital from lower-growth and non-core assets into investments that offer stronger income and value creation.

At the same time, interest costs have largely stabilized. This slide sets out the key dates for the first half distribution.

The distribution reinvestment plan remains suspended because CERT continues to trade at a discount to net asset value, although we are encouraged to see this discount narrowing. The business trust will not make a distribution at this stage, as its investments have yet to generate positive cash flow.

Accordingly, the first half DPS of 6.642 euro cents will be paid entirely from the REIT, whose distribution policies remain unchanged, with a minimum payout of 90% of distributable income, subject to board approval. Moving to the balance sheet on slide 14, here you can see the REIT, the BT, and the stapled group combined balance sheet.

As at 30th June 2026, CERT's balance sheet remained in a good liquidity position, with €45 million of cash and only €30 million drawn against the €200 million revolving credit facility. Total assets increased following new investments in the first half, while NAV per security remained largely stable.

Overall, the balance sheet continues to provide flexibility to execute our strategy while maintaining investment-grade credit metrics. I'm pleased to report that CERT's credit metrics remain comfortably within all bond, lenders, and rating agencies' requirements, supporting our investment-grade ratings from Fitch and S&P.

Gearing increased during the first half as capital was deployed into new investments, but remained below board limits and is expected to moderate as capital recycling initiatives continue. Interest coverage ratio on a trailing 12-month basis is 3 times, calculated based on CERT's EMTN program.

This remained well above our covenant requirements, rating agency metrics, and MAS limits. With 90% of our debt fixed or hedged, the impact of interest rate movements on interest expense and distributions is expected to remain limited.

A 100 basis point increase in interest rates would have only a minimal impact on ICR. The key takeaway is that the balance sheet remains appropriately structured for both resilience and growth, while preserving access to multiple funding sources.

This slide illustrates the strength of our debt maturity profile, with no material refinancing requirements until 2030. CERT remains well insulated from short-term volatility in debt markets.

I will now pass the portfolio highlights to Elena.

Thanks, Wee Cheng. Turning to slide 18, the quality of CERT's portfolio is underpinned by a highly diversified tenant base of approximately 750 tenants across 930 leases.

More than 90% of our key tenants are multinational corporations or government-related entities, providing strong credit quality and resilient cash flows. Importantly, tenant concentration remains low, with no single tenant contributing more than 4% of headline rent, and our top 10 tenants accounting for just 22% of portfolio income.

The diversification continues to be a key source of resilience, particularly in the current uncertain geopolitical environment. Moving to slide 19, portfolio occupancy in the first half increased to 93.7%, up 110 basis points since December 2025.

Western Europe continues to perform strongly, with occupancy of 94.7%, while Central Europe stabilized at 84.4%. Logistics and light industrial continue to perform strongly, supported by healthy leasing demand and positive rent reversion across key markets.

Rent reversion remains in the very high single digits at 9.6% for the first half, reflecting the resilience of the underlying leasing market. During the period, we signed or renewed approximately 96,000 square meters of leases, representing more than 8% of the portfolio, on the back of continued tenant demand for high-quality, well-located assets.

As the chart shows, both occupancy and rent reversion have remained resilient. Rent growth remained within normal historical ranges, and with the portfolio still around 4.6% under-rented, we continue to see scope for further income growth.

We also remain on track to maintain occupancy at around 95% throughout most of 2026. As you can see from the leasing slides on slide 21, leasing activity during the quarter was focused on a number of sizable transactions across Denmark, France, and the Czech Republic, with long-term new leases contributing to a blended rent reversion of 10%.

These transactions highlight disciplined asset management and our continued ability to drive rental growth, reduce vacancy, and enhance the quality and security of portfolio cash flows. Staying on this sector, but looking beyond our own portfolio, on slide 22, you can see that European logistics fundamentals remain supportive.

However, manufacturing activity remains resilient and continues to support demand across our markets despite a more uncertain macro backdrop. According to recent data from Cushman & Wakefield, rent growth remains intact, as shown in the chart on the bottom right.

Limited new warehouse supply and steady demand from manufacturing and B2B distribution occupiers supports this trend. Green Street continues to forecast logistics rental growth of 3.2% per annum over the next 4 years, outperforming both retail and office sector.

Overall, market conditions align with our high conviction for the sector over the medium term. Moving to the office sector, as you can see on this slide, we have, for the first time, split performance across our high-quality office assets in the Netherlands and Nervesa 21 in Milan and the remaining non-core office assets.

Our office strategy remains focused on retaining high-quality, core assets as a store of good value and yield, while reducing exposure to non-core properties over time. Leasing activity in the sector was selective during the first half, with management prioritizing occupancy and tenant quality.

Occupancy remained above 95% across our core portfolio in the Netherlands and Italy, while WALE increased to 4.9 years following the ABN AMRO lease renewal in Koningskade. Rent reversion was negative 4.1% on a relatively small sample size, largely due to a lease renewal in Poznan in Poland, where rents were reset to market levels, together with occupancy-focused leasing in our Finnish assets.

The office portfolio remains approximately 9.8% under-rented, providing opportunities to capture upside through lease events and asset enhancement initiatives over time. For my last slide for this section, the Pan-European market data continues to support our focus on high-quality, well-located office assets.

As you can see from the chart on the left, since 2019, European CBD vacancies have increased to just 220 basis points to 4.9%. This compares to the 500 basis points increase across the broader office market to 9.5%.

This bifurcation reflects the ongoing flight to quality, with occupiers increasingly favoring prime, centrally located buildings. The same trend is also evident in rental performance.

As evident from the chart on the right, prime office rents continued to grow in the second quarter, increasing 1.2% quarter-on-quarter and 4.5% year-on-year, demonstrating that demand for high-quality CBD office space remains resilient despite the broader macroeconomic backdrop. This again reinforces our strategy of concentrating on core office, while continuing to reduce exposure to non-core properties over time.

Now back to Simon to talk about our growth strategy in data centers.

Thanks, Elena. We will turn to a couple of pages now on our DC strategy, which represents an additional growth pillar complimenting our logistics platform.

The objective is straightforward: maintain the income characteristics that investors expect from the REIT portfolio, while introducing selected opportunities capable of generating stronger long-term NAV and earnings growth. Importantly, this is designed to enhance the existing strategy, not replace it.

Logistics remains the foundation of the portfolio, while data centers provide exposure to some of the most compelling structural growth drivers in Europe. Together, this creates a balanced model combining income, growth, and long-term value creation with adjacent asset classes.

A key element of our growth strategy is participation in Aonix, our sponsor Stoneweg's pan-European data center platform. Through this investment, CERT gains exposure to opportunities that are typically unavailable to listed REIT investors, who typically have the opportunity only to buy the completed property, not generate the profits on the way through.

The platform currently comprises five projects across Europe and is progressing through key development milestones, including expanding the amount of power to be connected. We're now over 2 gigawatts of power.

The Dublin project is expected to begin generating rental income to one of the US-leading hyperscalers during the second half of this year, marking the transition from development phase to now a phase of income generation, with more substantial developments to occur. Elena and I visited the site in June as the US hyperscaler tenant was fitting out while the power is being connected.

This project is fully leased to a leading US hyperscaler for cloud and will be the largest in the Dublin region, one of the core FLAPD markets, and to put the project in context, on completion will be 4 times the power load of a recent data center S-REIT purchase. Our initial investment has already benefited from milestone-driven valuation growth.

You can see this in the business trust balance sheet that Wee Cheng took you through, and provides participation in what we believe is a significant long-term development opportunity. This really lies in the scale of the sponsor platform and the potential to participate with their support.

In total, this pipeline sitting inside Aonix has a development value of more than €30 billion, with targeted yields on cost of 12% to 15% at stabilization. The slide on 27 outlines the distinct roles within our two Aonix investments and how they both support both DPS and NAV growth.

The original €50 million equity investment that we made last year is primarily focused on long-term value creation through participation in the equity returns of the data center projects. Based on the latest independent valuation assumptions, the investment continues to target a pre-tax, pre-fee IRR of above 25% over the life of the projects.

The second €50 million investment, which we contributed earlier on this year, was structured differently and is designed to balance income and growth. It generates an already fixed 7.25% annual cash coupon, supporting immediate distributions, while also providing future participation in the upside of the Aonix investment through conversion into ordinary equity at a material discount to the NAV at that time.

Based on current assumptions, the investment is targeting a pre-tax, pre-fee IRR of approximately 12% to 17%. These two investments sit at different points on the risk-return spectrum with the same underlying assets, and together they provide CERT investors with exposure to the large-scale European data center development pipeline.

Looking ahead, our focus is execution. The portfolio repositioning undertaken over the past 3 years has created a clearer strategic direction.

The next phase is about translating that positioning into sustained income growth, value creation, and improved market recognition. In conclusion, our strategy remains straightforward.

We continue to allocate capital towards sectors where we have the highest conviction and strongest competitive advantages, namely Western European logistics and pan-European DCs. Logistics remains the core income engine of the portfolio, supported by the high occupancy, the positive rent reversion, and the long lease duration.

Adjacent to this, our DC initiatives provide the additional growth engine. We also continue to progress AEI and redevelopment initiatives within the portfolio designed to improve asset quality, support the rental and NAV growth, as we have a track record of doing so.

One of the pillars of our operating model is our experienced local teams on the ground in each country, where we have been operating for over 30 years. From a balance sheet perspective, we remain well capitalized with no material refinancing requirements until 2030 and the flexibility to continue executing our strategy.

Our margins continue to shrink as our lenders and the bond markets continue to see the progress we're making. In parallel, the board and sponsor are evaluating a range of strategic and organizational initiatives.

These discussions may include changes to lowering management fee arrangements, ownership structures, incentive frameworks, and the potential internalization of the REIT manager and the asset management platform. While discussions remain ongoing and no definitive agreement has been reached and would in any case be subject to customary approvals, the objective of any proposal would be to improve margins, be accretive to distributions, and generate additional long-term value for securityholders.

Based on current market conditions, and barring unforeseen circumstances, the board reiterates its distribution guidance that FY 2026 DPS to be broadly in line with FY 2025. Thank you for your attention, and we'll now be pleased to take any questions.

Kiara, please open the lines up. Thank you.

Hi, afternoon, Simon, Elena, and Wee Cheng. Congrats on a pretty strong set of numbers actually.

Pretty healthy numbers. I have three sets of questions.

Maybe I'll take it one by one. My first question is in terms of portfolio metrics.

Quite a good improvement in terms of portfolio metrics both in occupancy and rent reversion. What can we expect for second half, and especially what drove the big occupancy jump in office markets in Finland and France?

Thanks, Vijay. A lot of the credit obviously goes to the local teams on the ground.

In terms of the office portfolio in Central Europe, that's really on the basis of leasing activities as per Elena's remarks. In Paris, where we only have two two smaller assets, again a few leases moves the needle there.

The first question was... Rent

reversion. Rent

reversion guidance. Firstly, our result is above our expectation in the first half.

That would not be in our guidance for the second half, but that's not to say we couldn't again surprise on the upside. We've had a history of having quite strong rent reversion that comes in above our own expectations each time.

I think one of the key charts here on the office side in particular is the low vacancies in European prime office, were still below 5%. We're generating very good rent growth.

Now while this half we only leased 10,000 square meters, it's a very small sample size, but generally across the board, like-for-like NPI growth in office is stable. From a logistics perspective, we're getting almost double GDP growth in rent and in line with inflation, still very good demand.

I wouldn't say as strong as it was coming out of COVID where there was a big rush by the large 3PLs to get set, but it's still very pleasing.

Got it. Can still expect some growth.

As a reminder, all of our leases have some form of CPI indexation, we are running at slightly elevated inflation numbers, around 3%, coming down a little bit to 2.6%. That will drive rent growth as well, not just the good fundamentals, supply down, vacancy down, but there's also the indexation for all of our leases.

Got it. Second, in terms of your portfolio rebalancing plans, I notice that you are planning to rebalance your portfolio, doubling your data center exposure from here, or potentially tripling it.

Will this all come via Aonix, or are you looking at third-party acquisitions of data centers at this point of time? Maybe can you also guide us in terms of what's your divestment targets?

This rebalancing would also include divestments, right? What's your divestments target for what's possibly office and logistics segment?

Yeah. Firstly, in one of our charts you'll see, and we've spoken about this in the March quarter, we've identified up to sort of 10, 11 assets that lend themselves to conversion to data centers on our own balance sheet, out of our 96 assets, with the help and cooperation of our sponsor, who's very well equipped on the data center development side given their own portfolio in Aonix.

They're certainly lending a lot of support to help us with our own feasibility within our own portfolio. We don't actually have to invest a lot of capital, other than blood, sweat, and tears and a little bit of planning, to convert a number of these opportunities into much higher-valued assets even before doing any development.

Just simply getting power supplied, contracted, permitted, getting the zoning in one particular property. This is now our third year of trying to change the zoning, we're getting closer to approvals there.

Just allowing to do developments. We've put up a sort of graphic here on page 38 that shows what an old last-mile asset can be turned into one of the most modern, exciting data center opportunities, where we're adjacent to a waste-to-energy power plant, and on the other side, an offtake arrangement can be made to sell the heat from our data center into one of the largest central district heating suppliers to this major city.

A lot of the growth in our target from the 7% today to the sort of 15% to 25% is actually in blood, sweat, and tears and not having to go out and buy assets. That's not to say we wouldn't look into the sponsor's pipeline.

The sponsor is very keen given they've got a material stake in us as well to see some of these, frankly, extraordinarily high returns that is available for data center developments. We think the office portfolio is a store of value.

We've demonstrated we've been able to do this pivot without really elevating gearing levels through the recycling, disciplined recycling, to help fund our growth initiatives. Our average asset size is roughly €25 million.

I'm not going to say it's easy as taking money out of the ATM, that would be giving a disservice to our transaction teams, but certainly a lot more liquid to be able to sell a €5 million building here, a €10 million building there, and being able to match as best as we can the timing of disposals to recycle the capital into the pipeline of opportunities that we see in front of us.

Got it. Thanks.

Just one last question, I think on your big news on fee incentive framework as well as internalization plans. Maybe can you guide us in terms of what drove these conversations, and what can unitholders expect in terms of fees?

Would it be safe to say they would be better off from wherever we are at this point of time, and what's the timeline? Thank you.

Vijay, as one of the diligent analysts, you will recall page 311 of the 2017 prospectus that says after the first 9 years of listing, the manager is to re-engage on the fees before the next 10-year contract is renewed by the manager. We have a positive obligation now to enter into discussions in order to perform the responsibilities of the 2017 prospectus.

You can imagine that while we're undertaking that fee discussion, there are other options that are also potentially being explored with the support of the sponsor to see how do we enhance dividends, improve margins, improve alignment, and really create a wider universe of investors that can potentially look at the REIT, recognize what we're doing within the REIT, and be comfortable on that the next 10 years that the structure is appropriate for the next 10 years. It's not to say the structure today wasn't appropriate for 10 years ago, but the world is moving on.

We want to continue to future-proof the portfolio and future-proof the structure. The stapling of the business trust last year was a step towards providing value for securityholders.

We're always contemplating what to do next to continue to enhance returns, drive the share price higher, close the gap to NAV, deliver on portfolio, but also from a margins perspective, how do we improve the margins, and one aspect of that is really addressing the cost of operating the REIT on behalf of the unitholders. Whatever we do over the coming months will require a lot of diligence, work with regulators such as MAS and shareholders, but it's really for the positive outcome of all shareholders.

Sure. Look forward to hearing more.

Thanks.

Thanks, Vijay.

Thank you. Hi, good morning, Simon and team.

Can you hear me?

Yes, Dale. Good morning to you.

Good morning, Simon. Congrats on the good results.

Just I want to echo what you shared with Vijay. Now looking forward to more updates on this review.

I just wanted to turn my attention to the capital management front in terms of the interest rates inching up slightly in terms of where gearing is currently. Just wanted to follow up, how are we thinking of gearing at this level?

Then two, are you expecting to step up on more divestments, and what kind of assets or what kind of markets are we targeting?

Thanks, Dale. Good question.

As Wee Cheng said, our average effective interest rate was effectively the same as a year ago despite the increase in the interest rate markets. The 90% of our debt being fixed and hedged really is a part of having gearing at the top end of the board policy range is that we've protected both the cost side of the debt, but also, really importantly, we have no debt maturing until 2030, we're not worried about refinancing in the next 3, 4 years.

It's not an issue for us. When you combine the maturity of the debt with the fixed nature of the debt, yeah, we're comfortable at the top end of the board's range of 35% to 40%.

Our interest cover is very adequate, and you can see that in the performance of our bonds. Our two bonds are very public indicator of the 180 investors in our two bonds as to what they think of our credit, not just Fitch and S&P, who also provide investment-grade credit ratings.

Okay. I was actually looking at them on broader and comparing the metrics on quarter-on-quarter basis rather than year-on-year.

I realized versus 1Q, it inched up slightly. Just wanted to understand what was the main contributor there.

So 10% 10% of the debt is floating, and rates are higher across most of the world.

How should we expect guidance on borrowing costs towards the end of the year? Should we be expecting on this level, on the remaining?

Again, this chart on page 16 highlights that we're 90% fixed and hedged through to October '27. Those percentages on this chart reflect the point in time when the hedges roll off.

Got it. My second question is on this redevelopment of Ruysdaelkade.

I think congrats. You've shared that early next year we should see some progress on that.

Just wondering if you could share a bit more in terms of the value, in terms of what are we expecting in terms of upside and yeah, how soon can we start factoring in?

Yeah. We're really thrilled with the almost-final designs.

As I said, it has been irrevocably approved from a zoning perspective. We've just got one last box to tick, we would expect to get the full clearance to go ahead from December this year.

We have a tenant in place until first quarter next year, we couldn't start demolishing now anyway, we've got months of buffer here anyway. This is a type of asset that we've mentioned before that could be better served being developed in the business trust.

As in Singapore rules in REITs, we're not supposed to develop to sell; we have to develop to own for at least 3 years. Whereas in Netherlands at the moment, there's a substantial tax subsidy, which on this project could be as much as €17 million, for us to develop and sell within the 3 years.

This is an asset that's being considered to move into the business trust, and therefore having limited impact on the earnings out of the REIT, and as the business trust is not paying a dividend, then it doesn't impact the dividend of the REIT. Quantum of dollars, we've mentioned before, this is likely to be just over €100 million, and we're highlighting here on page 8 for the first time a targeted yield on cost of 6.5%.

Property like this today would sell for around five, four

and three-quarters to five. Got it.

That's all for me for now. Thank you.

Thanks, Dale. Watch this space.

The cash held at the BT is €185,000, so that is mainly kept to pay the operating expenses like the invoices. It is not €185 million.

I think there's a typo in the question, because it's only €185,000 of cash versus €122 million of investment assets. Thanks, Meng.

the second part of the question is the underlying assets. That's where we carry the two investments in the Aonix.

As I mentioned in my prepared remarks, we've invested €100 million, and those investments are carried, particularly the equity investment, the first €50 million, that's carried at valuation, which is €72 million or €71.5 million. We are showing a profit of €22 million already on the hundred that we've invested.

Kah Loon, thank you very much for the question. Very similar to the one asked earlier, just very quickly to repeat, at the end of 9 years since listing, we are required to provide market fee review before the 10-year extension of Stoneweg's management contract can occur.

As part of the review of what today is market, we're also taking the view as to, okay, well, let's look at all options around the management platform, around the organizational structure, and take this as an opportunity to really review what is future-proofing the REIT over the next 10 years. What's a more modern and more shareholder-friendly structure and regime than what we have presently, which was fine for 9 years ago, but today it's really an opportunity to reassess, listen to investors, which obviously we have a very active engagement process, and really filter all of these suggestions, ideas, business operating models from around the world.

Where are global investors heading? We'll take all of this into account, but I can tell you, we're very excited about some of the options that are on the table, and that includes the internalization of the REIT.

In terms of your second question around privatization, that is not under consideration. That's not part of this process.

We are a publicly listed REIT, anyone can buy us at any point in time. That would be up to you as the investor to determine what is a fair price for the REIT.

Today it trades at X. We see examples of logistic REITs in other parts of the world and even here in Singapore trading closer to their NAV, and that's what we're trying to achieve in our strategy is get as close to the current NAV as possible.

We won't stop there. Our intent is to continue to deliver more value in the portfolio than is currently recognized by the valuers.

First step: drive the share price higher through higher earnings growth and higher valuations. Thank you.

Sure. Good question again.

Board policy remains unchanged at 35% to 40% net gearing, we're slightly above that, but in the scheme of where we are with our actual debt profile, we're comfortable to be at that top end of the range. We are expecting asset values to continue to increase, particularly in our core portfolios.

That will help bring down the LTV. Secondly, we've still got a number of assets targeted for recycling, again we've got quite good visibility on some asset sales that we would expect to close in the coming months.

Thank you.

Thanks, Sharmaine. Number of questions there.

Let me just deal with the last one because this has come up a couple of times. We are committed to our gearing policy range of 35% to 40%.

It will go up and down as it has in the last 7 years where we've always had that policy and we've always finished the year within those limits. As I just mentioned before, we continue to sell assets and bring that down.

In terms of your more detailed questions on our strategic announcement today, I think it's a little bit soon to answer those specific questions. As I mentioned, we have to come to an agreement anyway before November 21st or 21st of November, so that is something that we're working towards, and we would try and answer your question with watch this space.

There's a number of permutations in what you're asking, which makes it difficult to answer, but yeah, it's probably best if we say watch this space. Let's leave it at that for the time being.

Thanks, Sharmaine.

David, the good thing about the bonds is they're fixed, the rate does not change of that bond or indeed our €300 million bond, which we issued this time last year. They're issued at fixed rates.

Really it's the hedging that's been put in place for some of the debt that rolls off in 2030, so that debt then becomes subject to whatever the refinancing rates are or the swap rates are at that point in time in 2030.

Ada, the doubling of tax expenses, I'm looking at Wee Cheng here, was because last year we received a refund from the Polish tax authorities. Is that correct?

The tax expenses comprised current tax and deferred tax. I believe the increase is mainly from the deferred tax.

For current tax, what we are seeing is largely in line with first half 2025. The effective tax rate remains around 10%, we do not expect an increase in current tax expense.

In terms of deferred tax, deferred tax expense is mainly on provision made on the capital gain tax and it's subject to the movements in the tax depreciations. Also there are some tax losses that expired during the quarter.

It has no impact to our DPS.

Ada, we've just shown on page 11, what we've done is we've broken out the tax from the P&L to show, to Wee Cheng's point, that the operating tax expense, if you want to put it that way, is unchanged. The deferred tax, the capital gains tax, is a theoretical tax where if we were to sell the assets at the current value, we have to pay capital gains tax in those markets, we have to book the deferred capital gains tax in anticipation of selling the asset.

Our NAV of €2 or €2 is after we deduct the provision for potential capital gains tax. That's why we also provide you the EPRA measure of NAV, which is before the capital gains tax.

This is another benefit of having debt within our structure because that does help minimize that 10% tax expense, we can boost the dividend. Gearing in our case, investing in markets where there is income tax, is actually very tax-effective.

If investors are worried at 41%, there's risk there, well we would also say there's return there because it lowers our tax expense. Just something to note.

It's not the main reason we're comfortable with debt at 40%, but that is one aspect. In terms of the timeline, I think we've mentioned a few times, we need to get something firmed up before mid-November, and so we would expect to be able to have been a position to announce something prior to then, again subject to regulatory approvals should we decide to go down the path of something like internalization, which would require MAS and other local regulatory approvals.

Thank you.

Thank you. The first thing is the MCO is providing income, so that's the convertible loan, the interest on the loan.

The income from the equity investment, that's been generated from the loan from the REIT into Aonix. It gets lost on consolidation.

Thank you.

Aditya, it's probably too early to give you firm guidance. We monitor it regularly.

We get quotes from our investment bank advisors every 2 weeks, we have a good sense as to what the costs would be today if we were to issue a new perp in the traditional form of issue a perp to repay another perp. Sometimes that's a bit of a roundabout way of dealing with matters.

As you're familiar, but perhaps others aren't familiar, there is no change in the margin on perpetual securities. It's only on the base being reset, and if we go back to when we issued the perps, there is virtually no change in the underlying base rate at that point in time versus what would be on a new perp today.

We've got multiple options. What I like about this security is it is a perpetual security.

It's treated by MAS and IFRS as equity. The rating agency treat part equity, part debt, but watch this space.

We will continue to monitor it and ensure the appropriate decisions are made at that time. You mentioned November in your question.

I've also mentioned why November is also an important month for the strategic outcome, which we would obviously hope to or plan to make announcements, appropriate announcements, prior to that date anyway. Again you could imagine, whatever we do to improve the margins of the REIT would improve the pricing of our debt and of the perpetual.

In a way they're linked. Thank you very much, Simon.

Kah Loon, again it's a really core part of our strategy with our sponsor that has very deep expertise as a Nvidia preferred partner and cloud provider, it's got a lot of expertise in this market. Let me give you an example.

We have six smaller light industrial logistics assets in Paris. With recent changes and focus on data center fast-tracking, if we apply for power and planning for smaller, and I say smaller in today's terms, but still quite large in historic context of less than 15 megawatts, we can fast-track the approvals without having to invest much capital.

To give you an idea, today these six assets may on average be worth somewhere between €10 million and €15 million as logistics properties. If we can achieve the planning and the permitting, then that asset can go up almost 2 to 3 times in value without even having to do the project ourselves.

Just the land value goes up. Again, this comes to the earlier question about how do you get to a 15% weighting in data centers.

In part, that's just from doing the blood, sweat, and tears of converting some of these assets from a planning perspective, not having to do the development. To give you an idea, a rough rule of thumb is in Europe, it costs around €10 million per megawatt to then build a data center, and it's currently valued at around €20 million per megawatt.

Still much much lower value in Europe than say in Singapore where a recent transaction was over €60 million per megawatt. It's still a much more affordable place for hyperscalers and cloud providers in Europe, which, as a reminder, 70% of the energy in Europe is either renewable or nuclear and is not relying on the same extent of fossil fuels, and so we don't have the same sort of disruption with what's going on in the Middle East than say here in Asia where we're a lot more reliant on global gas and oil trade.

Ultimately we could sell those assets just on conversion without doing the developments, or we could do the developments ourselves, again depending on our cost of capital at the time. Thanks, Kah Loon.

Terrific. Thank you, everyone, again for your engagement and for your investment and support with the REIT and the strategy, which we're trying to make as straightforward as possible, which is pivoting continuously to logistics and light industrial, where our results today demonstrate that that is a successful strategy.

With the adjacency of the data center development opportunities, there's another option, another leg of growth. Our balance sheet is in really good shape with very long-term debt with a high level of fixing.

We have the boots on the ground, the very experienced local teams, and sort of in parallel, we're now in discussions with the sponsor around improved fee arrangements, or indeed we go into an internalization structure where we would provide the costs at cost rather than the fees, and therefore improve the margins and dividends and enhancing alignment. We're working through that.

We've got a few months to bring that to fruition, again subject to regulatory approvals. In conclusion, while all of this is still going on, the board has reiterated the DPS guidance to be broadly in line with last year, which based at today's share price would imply an approximate 8.4% distribution yield and around a 20% discount to our NAV.

Thank you, everyone. Have a great day.

Thank you.