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

On behalf of the CDL management, welcome to CDL's briefing on its unaudited financial results for half year ended 30th June 2026. Now, this is a hybrid briefing format with both in-person here at the M Hotel Singapore and those joining us virtually on the live webcast.

Thank you for being here. I know it's a very busy financial reporting season, and to see so many in this room brings us much joy.

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

Instead, please scan the QR code on the screen to download several documents that were uploaded on our sharednet this morning. They include a copy of the detailed financial results statement, a press release summarising some of the key highlights of our performance, a presentation deck that the management will be using in a very short while.

Now, for our guests that are joining us virtually, you would similarly be able to download these documents, which are available on the CDL website. I would like to introduce you to the CDL management panel.

In the centre, we have Mr. Kwek Leng Beng, our Executive Chairman, and followed by our exco members.

On his right, Mr. Sherman Kwek, Group CEO.

On his left, Mr. Kwek Eik Sheng, Group Chief Operating Officer, then followed by Mr.

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

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

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

Mr. Kwek, please.

Hi. Good morning, everyone.

Thank you, Belinda, for the introduction, and thank you for making time to come over. As Belinda has mentioned, I know it's a busy day for all of you with several earnings announcements coming out today as well.

Happy to take you through our performance highlights for the first half. Yim Ming will then take you through financial highlights, the ops review, for your perusal, and if you have any questions, let us know.

Performance highlights, really happy to be here to share some strong results for our first half. You will see that our revenue is up slightly over 60% and our PATMI is up more than three times, or 230%.

Primarily, this has been driven by our strong Singapore property development segment. We have several projects that really did well for us, and we recognised revenue and they were built at a faster pace, revenue and profit recognition came in faster as well.

Obviously, one is Lumina Grand, as we've mentioned up there. That's an EC in Bukit Batok West Avenue 5.

That has been completed, and therefore under the prevailing rules, we recognise full revenue and profit. Other contributors that were strong were Newport.

Newport Residences was launched at the beginning of this year and is now over 80% sold. Because that project, as we delayed the launch, because we were going to launch right as we were going to launch, the 60% ABSD on foreigners was announced, right?

We held back on that, and as a result, the launch was delayed by quite a while. Because of that, the building completion has gone on much faster.

Therefore, we are also recognising good revenue from there. Lastly, many of our other Singapore projects continue to have steady sales, Norwood Grand.

We had a bit of a slow start with Union Square Residences, which is quite a pity because it's in such a beautiful mixed-use development and in a really great fringe CBD location, but glad to see that sales have really started to pick up as well over the last couple of months. You'll see that across the board, all of our core operating segments have shown strong operating results.

As I mentioned earlier, Newport Residences was a great launch for us, and then we've had a very resilient performance with so-called the commercial portfolio, comprising office and retail. We're still doing really well and trading above actually the market average.

The UK commercial has held steady too. On the residential market in Singapore, I think this year we continue to see good, stable price growth.

Far, I think year-to-date is about 1.4%, according to the URA Private Residential Price Index. The volume has been about slightly over 4,000 units year-to-date, about 4,100.

Are we going to hit the 10,008 that the market did last year? May not.

I think it's, and primarily it's because there's been less launches in the first half this year. Let's see how the back half stacks up.

I think we should get within the range of maybe 8 to 10,000 by the time we end this year. It's been a really good start for us, and actually underpinning our entire first half has been strong Singapore property development revenue and profit, noticeably absent from this, our capital recycling gains.

We have certainly pushed hard for the first half this year, but I think with a lot of different factors, such as the Middle East conflict, which continues to be quite prolonged and rages on, as well as the fact that we've seen a lot of turbulence here and there. The UK went through their own political upheaval with the change of government, all that.

I think that has dampened a bit of investor optimism in the first half, but I see that momentum coming back now. Our divestments will probably be more weighted on the second half.

I just am not sure whether they will complete in the second half or into next year. Certainly, there are several in the pipeline, and we hope to be able to share more exciting news on that.

As mentioned at previous analyst and media briefings, capital recycling is going to be a core part of our DNA and our business as usual in the future. We really got to get that ramped up, and that will really provide a stronger base for our results.

Going to the next slide, we have our NAV and shareholder returns. You can see that predominantly, I think NAV and RNAV and RRNAV are pretty stable.

This year we declared an interim dividend of six cents, which is double what we declared for the half year of last year. Obviously, we have made a commitment to the market that we would hit a minimum of 35% dividend payout.

We're leaving it more for the full year. Share price performance, and this was as of year to date, as of 30th June.

Obviously, we are all very pleased to see the rally today. Our segment analysis, and if you look at the fair value, our assets have ticked up slightly from 35 to 36 billion.

Business segments, or the IPTDP, there are some changes in terms of geography as well. Predominantly, I think that really fluctuates depending on how much CP we have at any one point in time.

You will notice that this year we haven't made any significant investments, neither, as I mentioned earlier, we've made any — sorry, we haven't made any significant divestments. In terms of investments, we have mainly made two, and those are the two GLS sites that we acquired in Singapore, and one is Tanjong Rhu Road, and the other is Peck Hay, which is Scotts Road, based off CanningHill area.

These are — this is the completed project, Lumina Grand at Bukit Batok West Avenue 5, I mentioned, Norwood Grand, 92% sold and just TOPed earlier this month, about two weeks ago. Then our upcoming project completions for the rest of this year, we have CanningHill Piers, our JV with CapitaLand, as well as The Myst.

Both are substantially sold. As mentioned earlier, the only investments we made this year were the two GLS sites in Singapore, and added together with the rest of our land bank, I think we have a healthy launch pipeline of 2,200.

We're comfortable with this level, and that positions us well going forward. We obviously look forward to unveiling Lucerne Grand.

That's in Lakeside Drive, out in Jurong West, and will have magnificent views. I really hope the project will be well received.

We're doing just a little bit of marketing here for the project, you can see it's five towers, 17 stories each, and we think we've designed it well, and it's directly connected to the Lakeside MRT station, so that's always a very important amenity that buyers look at nowadays. Please spread the word, and October when we launch this, hopefully this will garner a strong reception.

This just shows you a little bit about our two projects that we are legacy assets that we are redeveloping, which all of you are very familiar with now. One is Newport Plaza, which is the name of the whole development, which was the former Fuji Xerox Towers.

Then the other is Union Square, which is, the former Central Mall, Central Square, that whole development there. It's coming along nicely, both of them.

As I mentioned earlier, Union Square Residences, the sales have also caught up really well. We're really excited.

The office market continues to remain strong. When these two office assets are ready, for Newport Tower, it will be in second half of next year; that's the office component of Newport Plaza.

That will be second half of next year. That will add about 220,000 square feet of NLA to our portfolio, and the Union Square will be sometime in 2029, and that will be 250,000 square feet.

Obviously pre-leasing efforts are strongly underway and very encouraged so far by the feedback. Our hotel portfolio has also bounced back really well, and we've taken the opportunity to continue to revamp some of our assets.

We can see that the Millennium Knightsbridge Hotel, renovations are underway, Kings Hotel as well. Then we continue to build out the M Social Hotel in Sunnyvale.

That has a targeted completion towards the end of this year, and we've also finished the renovation for this Millennium Premier Hotel in Times Square, which is part of the Broadway Hotel. It's a smaller component of it, a more premier, upscale component of it.

That's just been completed in June. We're excited to see that so far some people I know have stayed there already, and they're really pleased with it.

Great that we're refreshing our portfolio as we move along. Just a bit about our industry and sustainability recognitions.

Last slide before I hand over to Yim Ming. Obviously, the thing on everyone's mind is when is your strategic review coming out?

I know we've taken quite a while on it. We wanted to put the — we wanted to really spend enough time to make sure that we do a thorough review and ensure that we have a proper roadmap, how we're going to implement the whole refresh strategy and how we're going to get there, and ensure that every number that we share with you towards the end of September is properly backed up by how we're going to get there, what's the asset makeup within it.

Very excited to share that with you. It's more or less complete.

The strategic review got approved by final approval by the board yesterday, but we just need to tweak a few more things and, of course, create some nice pretty infographics to go with it. We thought we'll just give ourselves a little bit more time.

Suffice to say, we're really excited and eager to share this with you at the end of September. All good to go here.

Next up, I'll pass it to Yim Ming for the financial highlights. Thank you.

Thanks, Sherman. Good morning, ladies and gentlemen.

I'll start off with a segmental analysis. There's revenue growth across all segments, increase of 61% in first half of 26.

EBITDA stands strong at 694, increase of 25.9. Very pleased to report that PBT and PATMI has both roughly tripled, rising to 404 and 302 million respectively.

Let us delve a little bit deeper into each metric. For revenue, the group posted revenue of 2.7B for first half of 26, up from 1.7B in first half of 25.

The property development segment remains the largest contributor, with revenue surging 167%. As Sherman has mentioned, the various contributors, and we all know that, revenue from Singapore development projects are recognized based on the percentage of completion method.

The strong construction progress across these projects also supported the accelerated recognition of revenue during this period. Kudos to our project team for their excellent execution and for maintaining strong momentum across our projects.

For hotels, the hotel segment delivered a 6.4% increase in revenue, supported by a 4.9% growth in RevPAR. RevPAR growth was recorded across all regions, with Singapore up 4%, U.S.

up 10%, and Australasia up a strong 14%. The strong performance in Australasia was driven by New Zealand hotels, which recorded improvements in both occupancy and room rates.

This was partially offset by rest of Asia, where RevPAR were impacted by softer performance in KL, Jakarta and Manila. Hotel revenue was also boosted by the acquisition of Holiday Inn London Kensington High Street, which we always call HIK because the name is pretty long.

We acquired the hotel in December 2025. Hotel has performed strongly since acquisition, achieving an impressive 96% occupancy and is now the largest contributor in the UK portfolio.

Overall for hotel, the segment performance reflect broad-based RevPAR growth across our key segments, together with strong contribution from our newly acquired hotel. Moving on to investment properties, they also delivered a 3.2% increase in revenue, notwithstanding divestments of the bespoke Hotel Osaka Shinsaibashi and 1250 Lakeside in Sunnyvale last year.

The growth was driven by higher contributions from our UK commercial properties, Jungceylon, our mall in Phuket, as well as the living sector in Singapore and the UK. These stronger contributions more than offset the revenue from the divested assets, once again demonstrating the resilience and continued growth of our investment portfolio.

Now we move on to EBITDA. EBITDA stood at 694 million, a strong growth of 26% year-on-year.

Mentioned this before, EBITDA is an important measure of the group. We look at it for cash generation capability as well as a key metric that we monitor closely.

Our target is always an annual EBITDA of 1B, which supports healthy cash generation. Excluding capital recycling gains, all three core segments recorded higher EBITDA.

The strong EBITDA was again underpinned by our property development segment, supported by income visibility from our successfully launched projects. You can see property development EBITDA, data book year-on-year.

Other than the projects that we mentioned in revenue earlier, JV projects also contributed to this EBITDA. This included the Orie, Canninghill Piers and Kassia.

For hotels, the operations EBITDA increased by a strong 27% year-on-year. They were supported by higher revenues as well as disciplined cost management.

GOP margin remained resilient at 30%, broadly in line with first half of 25. In key markets of Singapore and London, GOP margins remained particularly strong at 35% and 42% respectively.

Mentioned earlier, New Zealand had good revenue improvement, and this flowed along to GOP margins. Australasia GOP margins also expanded from 33% to 35%.

The combination of revenue growth, resilient margins and disciplined cost management drove this hotel operations EBITDA. For IP, which is investment properties, EBITDA was slightly lower in first half 26 due to lower capital recycling gains.

Just a refresher, for first half 26, note we have recycled Quayside Isle and several strata units in Fortune Centre. This was 25, where we had a huge recycling gain of City Industrial Building.

Importantly, excluding capital recycling gains, the EBITDA contribution was still broadly comparable year-on-year. This once again reflects the underlying performance of our commercial properties as well as our living sector.

Now move on to PBT. It improved 189%.

One interesting fact point is that in our property development takes up 57% of revenue, but 84% of PBT. The PBT variations are largely explanations are largely similar to EBITDA, but it's impacted, as we know, by financing and depreciation.

Net finance costs decreased significantly by 47% to 145 million. This was supported by an 11% reduction in net interest expense as well as a favorable swing in exchange.

The group recorded exchange gain of 38 million in first half 26 versus an exchange loss of 63 million in first half of 25. I want to highlight that these exchange differences are unrealized translation differences from intercompany loans.

They do not represent underlying operating cash flows. For property development, while the segment delivered a stellar performance, I also want to reiterate that, the profits from this segment are inherently lumpy, as we all know.

It's dependent whether there's key project milestones, whether there's an EC, there's a handover for overseas, as well as the progress of project completions. Hotel operations, a significant turnaround.

They reversed from a loss of 84 million in first half of 25 to a profit of 42 million in first half of 26. This improvement was largely driven by two things.

One is the newly acquired HIK, and two is a favorable exchange position, from exchange loss in 25 to a gain in 26. This largely from intercompany loans.

For investment properties, PBT decreased also due to lower capital recycling gains. I sound like a broken record, but it's worth reiterating that CDL accounts for investment properties at cost.

What you see in the financial statements has no fair value gains. Instead, they record depreciation of about 68 million.

Just moving on to capital management. We continue to maintain very strong and robust financial fundamentals with a well-balanced debt maturity profile.

Gearing stood at 75%, is an increase of 4% over 31st December 25, largely attributable to the acquisition of the two GLS that we have acquired this year, as well as 144 million of capex on our investment properties, largely for Newport and Union Square. Looking ahead, we expect healthy cash flows from four projects that will achieve TOP this year.

Lumina Grand achieved TOP in April, Norwood in August, and we are expecting the latest asset, Canninghill Piers, to TOP in 2026, and these project completions will support the cash generations. Liquidity position is continuing to be very strong, 2B of cash, 4.9B of committed undrawn credit facilities, we have definitely sufficient financial headroom.

For all the other metrics, average interest has dropped, and then is now at 3.4%. I know one of the favorite questions is, where do we see where we end the year at?

We have articulated previously we hope to end the year, no higher than 3.5. To all the bankers in the room, please help us achieve this objective.

As shown, the last one is just basically on hedging. We don't do any speculative.

You can see our loans match with the assets that we have, and we have an overall natural hedge of about 76% across the key markets. Financial position in a nutshell, we reiterate we have a strong liquidity position, diversified financing sources, and we definitely exercise prudent financial risk management.

With this, I hand over back to Belinda.

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

Please feel free to ask your questions. My colleagues are standing around the room with microphones, and if you have any questions, please raise your hands and they will come to you.

The only thing we request is if you could let us know who you are, introduce yourself and the organization that you represent. Now before, for those who are joining us on webcast, you will similarly be able to post your questions if you just tap on the Q&A feature on the call.

May I have a... I see hands pointing here.

Maybe let me just take the first question, Tabitha? Maybe you kick us off.

Hi, good morning,

Tabitha from DBS here. Congrats on the strong results.

My first question is on divestments. Your progress appears to have been slower than expected this year.

Can we expect a more accelerated pace of capital recycling over the next six to 12 months? Which assets are in the pipeline?

Any of the UK legacy assets that you identified previously? Morning, Tabitha.

Yes, as I mentioned earlier, we see it as divestments will be weighted more in the second half this year. Having said that, right, some of them, especially some are fairly significant divestments.

We are in very advanced stages, but they may not close by this year. Some may trickle into next year.

Yes, as Yim Ming mentioned earlier, we did record Quayside Isle as a divestment in our accounting, but I don't count that as this year because I already announced it as part of our divestment amount for last year when I presented to all of you our full year results because I announced it in December, but it only completed in January. Therefore to me this year we haven't done any divestments, other than some a few strata title units at Fortune Centre.

That really emphasizes the urgency for us to kick it up for the back half this year. Plus with regards to going forward, I think you mentioned, is it 12 to 18 months or something?

Anyway, all that we will share more when we release our strategic review outcome end of next month. That will cover our whole capital recycling efforts for the next few years.

We don't generally have a practice of disclosing what the assets are, but surprise to say you're right on the dot. The legacy UK land bank that we had showed earlier, I think the last time when we announced results, we said we had this 800 million Singapore UK legacy assets.

Those are certainly on the cards too.

My second question is on Singapore residential. You said very active in land banking, but with the recent GLS bid, at such elevated pricing, will you still continue to look at GLS, or en bloc is something that you will consider, given the latest measures?

Also on EC projects, you have been working very well for the group, and you have two upcoming projects not subject to the new rules, but has your stance on participating in the EC market changed?

We, look, prices have always been high for GLS sites, right? Any good site that's well located, has strong connectivity, will always be hotly contested.

We will continue to participate; we just have to do so in a disciplined manner. Let's see where we get to.

As I mentioned in previous analyst briefings, I think we also need to watch what our pipeline looks like. We don't want to go back to a point in time like in early 2018 when I had 4,000 units in the pipeline and then suddenly some cooling measure comes out and then our share price was really wrecked.

I think we have an optimal pipeline land bank number in mind. I think we'll always try to ensure that we replenish on a timely basis, because as all of right, I can reduce our gearing and also save, conserve more cash by not investing, but it hurts you down the road when you don't have revenue and profits coming in.

We'll continue replenishing. We continue to look at good land sites.

We are privileged to have won two this year; we participated in quite a few, and one of few. One recent one was Bayshore, where this large consortium that we were leading, we came in second, so that was a bit of a pity.

We'll continue to look at future GLS, and likewise we will look at en blocs as well. I previously mentioned to the audience that en blocs are usually not our preferred method because it's a much more longer, cumbersome process, right, to get through the en bloc.

There may be more studies that you may need to do, whether it's traffic impact assessments and stuff like that. It's still something we'll keep in mind.

There are a lot of very, very nice, well-located legacy or aged assets. If the opportunity comes up and the pricing is within a range that we deem acceptable, we would certainly be keen to go for it too.

As for EC sites, yes, the new EC sites will certainly come under a different set of rules, and that will moderate things. Having said that, that will be evident in the bid prices for the land.

We will also continue to participate, but we will have to obviously moderate what we bid for it.

Thank you. Can I move to the next question, please?

Maybe let me take Xuan.

This is Xuan here from Goldman. First question is on the Newport office in Union Square.

Can you share what is the capex and yield on cost? Beyond this project, are you actually prepared to undertake more redevelopment, or will you only embark on those when these two are completed?

Yes, Xuan, I'll let Yim Ming talk more on the cost, but yes, we are willing to undertake more redevelopments as and when. I think, it's appropriate and obviously accretive for us.

As mentioned at the full-year briefing to all of you, we have a few other assets that could potentially go under different schemes. Newport is under the CBD Incentive Scheme, where we had a 25% uplift.

Union Square is under the Strategic Development Incentive Scheme, so that was a 67% GFA uplift. We have, for instance, two other potential projects that fit under each scheme.

There's the City House, which can still go under the CBD Incentive Scheme, then there's also, you remember, we en bloced Delfi. We own a large part of it, but we bought out the remaining minority shareholders, and so now with full control of Delfi, and obviously CDL Hospitality Trust has Orchard Hotel and Claymore Connect, the mall next door.

That is a potential project that could go under the Strategic Development Incentive Scheme as well. Yes, but as mentioned at the full-year briefing, I don't want too many redevelopments going on at the same time, because every time you do it, you lose the entire rental income and with several years of heavy capex as you build out these big integrated mixed-use developments.

Yim Ming?

Never really divulged it, but okay. The TDC for Newport, as well as Union Square, I'm talking about the commercial elements, they are in the range of about 1.1B and 0.9B, thereabouts.

This is based on market prices of the land. As we all know, Newport was our previous Fuji Xerox.

This 1.1B actually reflected the market value of the land at the point of transfer. Clearly the embedded value is what we have not yet unleashed, which we will, should we do any other capital movements.

Out of which, I think, I've mentioned earlier on this time round, in fact, over the last one, two years, we have spent significant capex on these two properties. Right now, I think the remaining commitments for these two properties is also fairly minimal.

It's probably in the range of sub-400. You guess.

Okay. Can we move on to the next question, please?

Any hands? Oh, everybody is very happy with the results.

You can go for lunch. Maybe I move to Dexter.

Is it Dexter? Yeah.

Good afternoon.

Can I ask quickly on the two obviously property developments have done very well. You have mentioned previously about land cost, but what's your sense of the Singapore property market now?

Do you think this is the best that we have, or do you think there's still, from what you're planning, is there a long way still to run in terms of prices, in terms of the health of the market right now? Or you're a little bit more conservative on?

That's my first part. I'll ask the next one.

Morning, Dexter. I think the market has entered into a more stabilized phase.

As mentioned earlier, year-to-date price increase for private residential, according to URA index, is 1.4%. I think we'll probably end the full year maybe somewhere between 2 to 3% price growth, and I think that's very normal, right?

You keep track with inflation costs, and obviously our development costs have risen as well over the years. I think, and the units transacted, whether we hit, 8,000 or 10,000 end of this year, I think it's a very— there are indications of a very stable market.

Far I'm quite pleased with it, and this is in line, I think, where the government would like to see the residential market be as well. We continue to be optimistic about it.

This is our bread and butter, CDL. We do property development very well, and obviously Singapore is our strongest market because it's our home ground.

We will continue, I think, to execute in this market and continue to be on the lookout for the right opportunities and the right GLS land tenders to participate in.

Just two more follow-ups. One is on your gearing.

You have originally a priority, but it's gone up again, albeit for the GLS. Is there actually a concrete plan to reduce it?

Is there a target? What the plan is?

In terms of your strategic review, obviously you wanted to do it in June, announced in June. What's the reason for the delay?

Is it safe to assume that the whole board has unanimously approved it? Thank you.

Yes. I will address the gearing one first.

Gearing has ticked up, unfortunately, because obviously we've bought these two GLS sites, which we're very excited about. We think they're good purchases, but it does add to our gearing.

It's not at a level that we're comfortable with. 75% is high.

The good thing is that you will hear, and again, sorry today that we'll be short on details, but you will hear at our strategic review, unveiling of our strategic review outcomes end of next month, how we have a concrete plan to bring it down, a very concrete plan, backed by assets and numbers, to bring it down to a level that I would think everybody should be very happy with. We will talk more about that end of next month.

Your other question, strategic review, yes, board has approved it unanimously yesterday. Really grateful to the board for standing behind what has been, many, many months of work, right?

Actually close to a year since we started this. We still need to tweak certain final parts, because as management, right, we have to ensure that everything we put out there we can absolutely deliver.

There's still some final tweaking we need to do. I was joking earlier about the pretty infographics and all that, but there is a little bit more work to be done to get the whole plan concrete and in shape.

That's why we needed a bit more time as well. Also obviously we're also very busy running the business, we thought let's put it at the end of September, so that gives us time, without having to rush and put out something, that may be slightly unfinished.

Okay. Maybe since it's there, might I just take Jovi, then I'll come to you, Kiang, then I'll come back to Rachel.

Okay? Jovi, maybe let me take yours first.

Thanks. Hi, Jovi from DH Singapore, thanks for the presentation.

Just two new Grade A office supply is tight in the coming years. Can I just confirm how leasing is progressing for the office space at Newport Plaza and Union Square?

Are you able to share any figures? I think building on Dexter's question, do you see any new launch prices tipping 4,000 psf?

Orchard Boulevard tender just opened this morning, for example. Thanks.

Mr. Sheng, why don't you take both questions?

Having said that, yeah, I know. I may look like a bad guy for throwing the tough questions at him.

I'll take the first one, Jovi. We don't tend to share too much about our pre-leasing efforts, and obviously pre-leasing really ramps up strongly the closer you get to completion.

Having said that, we did share when we unveiled our full-year results for 2025 that obviously we are at 52% pre-lease for Union Square, because that was one single large tenant. Suffice to say, both of them, actually, it's been very encouraging.

Tenants have been interested, a mixture of large tenants and smaller tenants. Yes, sorry, Jovi, we don't typically share pre-leasing commitments until we get closer to when the building's about the TOP.

As for whether resi will hit 4,000, I will let Mr. Sheng answer that.

Actually, 4,000 psf is not high, actually. Some of the Orchard Boulevard property already 5,000 plus.

I think depending on location and the type of property, the quality, I would expect the new launches to be on the high 3, those very good locations, like the Orchard Boulevard mentioned. Thanks.

You may remember, Jovi, that, the record was set by the Mark, right, at Paterson, that was 6,800 plus per square foot, right? Obviously there are other developments that have hit 5,000-plus.

Whether you're asking whether 4,000 become the norm, that's not going to be the case. There will be some luxury high-end projects that will hit or cross 4,000.

Thank you. I'm going to just move back to the front, Yew Kiang first, and then after that, Pastor Rachel.

Yew Kiang from CLSA. I'm glad to see the higher interim dividend, despite the absence of any significant divestment gains.

Then I did, Sherman alluded that more growth will be coming in second half. If the divestment doesn't come through, is there a risk that your full year dividend for this year is going to be lower than the previous year?

Yew Kiang, as mentioned, our dividend policy is now based on a dividend payout ratio, right, minimum of 35% of PATMI, right? It's whatever PATMI is.

Yes, there is a risk. If we don't hit the same kind of 600 over million like last year, there's a risk the absolute amount will come down, but not the ratio.

Last year we paid out 40%. This year we could pay out minimum 35, maybe more.

The ratio has a floor, but the amount could come down if we don't hit the same thing. Yeah.

We'll just pay out whatever our PATMI is, with or without capital recycling gains in there.

Thank you. Rachel.

Hi, good morning.

Good to see the share price pop. Actually, just following up on Yew Kiang's question, in second half, do you have any more residential properties that you can recognize to support your second half numbers?

We do, but it's definitely not as strong as first half. First half we had Lumina Grand, which is an EC TOP, and I can tell you in first half, Norwood as well as Myst had a very high percentage of completion in excess of 90%.

What we have is going to be our rock-solid Newport, which is more than 80% sold. It's currently in June is about 51% completed, we'll see the progress of completion by year end.

Relatively to first half, yes, it will be smaller.

Thank you. My next question is really on hotels.

I think some of your peers are thinking of paring down their stake. I know it's a bit different for your City Developments hotel portfolio, but what are your thoughts about hotel?

We are planning to share more at the strategic review, outcome unveiling end of next month. Maybe I'll turn it over to Eik Sheng if you wish to talk about our thoughts about our hotel portfolio.

For the first half, I think, of course, it's still quite volatile, right? Because we have such a diversified portfolio, net-net, what we did see is that we still performed better than 2025.

Even though there were some hotels in regions which were impacted, we saw other regions take up the slack as well. I think that's the benefit of having a very diversified portfolio.

That kind of principle I think we will continue to maintain. I think we will have more to share at the strategic review.

I think we can't share too much details at this point.

Just trying to tease it out of you. Wait.

Thank you, Rachel. Good to see you again.

It's been a while.

Let me just take some questions on the webcast, which is similar to in line with what Rachel just mentioned. Most of the question here is from Kotin of Falcon.

Most of your competitors are shifting to an asset-light, with higher certainty of profitability and cash flows. Under this strategic review, what uniquely distinguishes CDL to stride in the Singapore market?

That's the first part. Then the second part is capital recycling when others are disposing.

What kind of metrics or what kind of thoughts you have when you want to maybe capital recycle? What are the priorities that you would put beyond value and time?

Yeah. For understandable reasons, I will skip the second question, because I think we will address that more when we have more concrete details to share.

In terms of the first question, and I think I’ve mentioned this to many of you before, we will never be a fully asset-light company. That’s not in our DNA.

I think asset ownership is a big part of ICL’s DNA, including doing heavy property development. As I’ve mentioned before, and now we’re up to 36 billion of assets, right?

We do need a portion of our balance sheet to be a bit more asset-light so we don’t get too top-heavy. Yes, the way to do it is to have a disciplined and systematic capital recycling program that goes on year in, year out.

As we are buying new stuff, we should be also divesting some of our either non-core, or matured, or underperforming assets as we go along. This cycle should continue alongside with our investments, our continued investments for growth.

On the topic of capital recycling, I also have another question from Vijay of RHB, which is joining us on webcast. In some way, it’s related, I guess you can use her response.

The first part is, can we have an update on fund management segment? The AUM growth has been slow and short of the 5B target.

What are your plans for the AUM growth? That’s the first one.

The second one is a little bit more operational. Can we have an update on the living sector portfolio?

The PBSA in UK segment seems to have softened. What’s your view on the portfolio performance for the living sector?

Again, I’m sorry to be such a cop-out, but we will address more details when we have the session on the strategic review. Fund management is going to play a much bigger leg, a much bigger role for us going forward.

Currently, roughly speaking, our AUM in the fund management side is about 4 billion SING right now, primarily comprised of the two REITs, CDL Hospitality Trusts as well as IRREIT, where we are co-manager. Primarily comprised of these two REITs as well as a few small private gives.

Having said that, we do have plans to substantially grow this, and obviously we’re going to have to put a much stronger setup in place to ensure we can get there. Yes, we will unveil more details on that next month.

What was the other part?

Living sector portfolio in particular, PBSA UK?

Of all of our living sector, which currently is mainly in the UK, where we do the multifamily, which is PRS as we call it. The UK PRS, Japan PRS, and UK PBSA.

Japan PRS has been the strongest. Our four DSF there are really doing exceptionally well.

We’re seeing strong rental growth. Occupancies are almost full.

UK PRS has been improving. It was off a slow start.

We were a bit disappointed, but it’s been improving. Unfortunately, UK PBSA has been a bit of a drag for us.

I would say currently our yield on cost for the six PBSA we own is about 4%. It’s not great.

We wish it was higher. UK, the entire PBSA market has been under some pressure and some structural challenges.

I think I mentioned earlier to all of you before as well, with all this conflict going on, or trade tensions between China and the US, we thought more students from China would go to the UK, but that didn’t really happen also. The UK PBSA sector is very dependent on foreign students, especially to drive performance.

Yes, that’s been disappointing. We’ll continue to monitor.

Our exposure is not huge. Yes, six assets, not small, but it’s not like a large portfolio of 20-30 properties either.

It’s manageable for now. Again, we are reassessing all this with a view to taking a decision on whether to expand or shrink or completely divest the portfolio.

Good. I’m going to move forward.

Let’s go with Wilson first, Wilson, then Brandon. Morning,

Wilson from Jefferies. Just a question on Singapore land banking.

I think Sherman mentioned how you’re looking to replenish but not really overdo it. Is there a comfortable level of Singapore land banking you are hoping to sustain?

I guess related to that also, what would be the implied kind of steady state churn rate on above launches you’d be seeing out of the land bank per year? Just lastly, on a similar vein, within your Singapore land bank, any preferences for specific regions over others?

Thanks.

Wilson, very sorry to give you a cop-out answer again, and this is not related to strategic review, but very good questions, but we don’t typically want to share too much here because, again, it’s information that could be used against us, right? Once people know what’s our optimal land banking amount, what regions we prefer, what sort of our churn rate or target churn rate every year, I don’t think this is good for us to share this publicly.

Apologies for that.

Maybe we'll move down to Brandon. Yeah.

Hi, morning.

I wouldn’t ask anything to do with CSR. Just on the results for first half, we saw that the hotel numbers were quite strong.

I think earlier it was mentioned that there was some cost savings. Could you let us know what these cost savings are?

Also if we were to take away the forex gain from SGD, what would be the core EBITDA, PBT growth for the hotel side? Because when I look at the GOV margin, it seems kind of flat year on

year. Yep.

Good question, always not very difficult. The exchange, the hotel segment has, okay, it’s a little bit convoluted because it spans over different segments.

While we always associate M&C as hotel, they are not only in hotel. They do have investment properties as well as others.

Looking at where we are for hotel operations, the PBT reversed from 84 to 42. The 42 included exchange in the range of about 30-odd million.

The underlying performance is still positive. Having said that, I also want to reiterate that for the first half of the year, usually that’s not the strongest part for hotel.

We all know that, the winter months, the Europe hotels as well as the US hotels don’t do as well. It’s not exactly linear.

The second half would look a lot better.

My third question is with regards to the investment sentiments for UK and Japan. Obviously the interest rate environment hasn’t been that favorable.

Could you maybe just share some color on what buyers are thinking right now?

Sorry, buyers relating to?

Relating to your potential sale of the UK development sites and Japan. You don't need to tell me whether you can sell.

I just want to understand how is the market.

If we really look at, clearly we all know that our clear investment, we have highlighted the UK legacy, and, we have done in UK, we are heavy in UK. Our total assets in UK is about 30%, and of which of course I think we have obviously three chunks, right?

Four chunks: hotels, which are doing very well; living sector, which is very resilient; UK commercial, clearly I think that was something that we tried to put in a REIT, and that has been sought for a while, and of course the last one being the development portfolio. The development portfolio is the part that we are looking, obviously, to actively, it's legacy.

We have indicated we have no strings attached, we're trying to do that. The buyers are largely, we all know, is going to be a large pool of it is likely to be Middle Eastern.

Clearly, within the current climate, of course I think there's a few risks, right? Firstly, in Middle Eastern, we all know that the money of them being having money is not exactly the easiest.

That's number one. I think forever there's this interest rate, they are saying that obviously if the interest rate hikes invisible, you could possibly squeeze better earnings.

I think distressed sales is quite evident today, but we are not in a state of a distressed sale. We still believe that we have very good assets, especially Pavilion.

Yes, the natural buyer pool is naturally more of the Middle Eastern.

Just to add to that, yes, we will not take whatever price on the table just so we can meet our divestment targets. I think we don't want to leave too much money on the table.

From time to time we do get offers for assets within this legacy land bank, but if it doesn't hit our required targets, we won't sell it. While I am urgent to want to, under some urgency, to want to divest it, but again, I can't do that to CDL, right, by leaving too much money on the table.

Some of them have good potential, it's just that it will take too long for us to go and try to unlock or recognize the potential. Regarding Yim Ming, what she mentioned, she's not wrong, I would say.

Actually many of these development sites, a natural buyer also would be UK developers. We have been in talks as well.

Again, she's not wrong in saying that it's Middle Eastern money, because if you look at the site we sold last year, Ransomes Wharf, right, that was the London Square, a UK developer, which is owned by Aldar, owned by Aldar, which is an Abu Dhabi developer. Yes, maybe much of the money comes from the Middle East, but that's not the only pool.

We have been in talks with UK developers too. I think that's also a very natural buyer for some of the sites, especially if they already have a strong development team and network within the UK.

I'm mindful of time, I'm just going to take one or two last two questions. I'm just going to pass to Mervin first.

Hi,

Mervin from JPMorgan. Maybe we can move to slide 21.

Previously, we have. We have a lot of UK debt.

I noticed that you issued the MTN program where you issue perps. Rather than waiting for any UK land bank disposal, should we not issue some cheaper perps to pay off this more expensive UK debt, or take on more Singapore debt, considering your yield cost on PRS is 4%, which is probably doesn't — PVSA, that doesn't cover perhaps the UK borrowing costs.

Yeah. What are we doing in terms of capital management?

You are right. By debt we do a little bit, of cross currency swaps where we borrow in SGD and then we do a cross currency swap to UK to service our debt, to service our UK debt.

Of which, if you look at UK debt composition, the fixed ratio is possibly lower. We kind of missed the window back in 2018-2019.

There was never a perfect window to do that, except at expensive price. Having said that, also we have been doing what you suggested, but, to open that a little bit more, that still leaves you with a currency risk.

That's not exactly what we were trying to usually posture. While GBP has been a lot more stable relative to USD, comparing the last two years, it still leaves us with some exchange exposure, which we possibly might not really want to do that.

Typically every time when it comes closer to refinancing, we do look at every debt proxy. We look at all the instruments, whether it's cheaper to refinance using the natural loan, natural currency, whether it's cheaper for us to do a cross currency swap, or basically just leave the exchange open and borrow in SGD.

Very simply, I think everybody would think that, hey, I can borrow at sub-3%, issue bonds sub-3%, issue Singapore perps sub-4%, and in UK debt is possibly at most 5%. Why don't you just do that with arbitrage?

Very frankly, if the exchange movements we have done that in the past, it's very easy to tilt over with a 1-2% savings. The saving in real is possibly in the range of about 1 to 1.2.

It's still a risk movement, if you ask me.

I'm asking because CDLHC has achieved 3% decrease from issuing perps to reduce borrowing costs. Anyway, we can discuss this.

Perps pricing is typically about 1% higher than traditional debt. We have done bonds, very frankly, at low 2, mid-2, sorry.

It's still a little bit pricey for us. Yes, it does make the metrics look better.

It does make, your UK numbers look a bit better, if I were to attribute a lower financing cost. Very frankly, if we want to do that, I would just keep issuing a lot of SGD bonds, and basically have a more open exposure of currency risk.

Since we are very, very clear that UK legacy is what we want to divest, I think we can still give it some time for another one, two years.

Final question from me: I presume the hotel is still considered core part of business, but maybe I know if Sheng want to talk about where's the greatest opportunity within the hotel business. Thanks.

I think we're not giving anything away, but, we've always done pretty well in the gateway city hotels, where I think we see both strong demand and of course capital appreciation in terms of the value of the assets that we have. I think that's probably the winning formula that we've had all through the years, especially when we do divest them, right?

We've seen in the past with Millennium Seoul Hilton, recently with the Bespoke Osaka as well. I think that's likely.

I don't think we will change that formula for now, but I think there's only so much we can share at this point. Yeah.

Just to add on to that, Mervin, yes, hospitality will still remain a key part of our business. Portfolio may get streamlined, but it will continue to be a key leg of our business and does contribute strongly when it's managed well.

I'm mindful that we are just heading into lunchtime. If there are any more burning questions, if there is burning questions, one more?

It has to be burning, Xuan. I'll give you that last question then.

Xuan here from Goldman. Just a quick question on the share performance plan.

Can you share what is the key indicator that's tied to it? Is there any max limit of what can be issued each year?

I think there is not a maximum limit that I recall, but, in the past when we had it at the AGM, we also flagged that, the dilution is very, very minimal, right? At the end of the day, we are issuing out of the treasury shares that we have bought back.

As to the KPIs, we have not released what they are exactly to the public, but I think it's safe to say that they are tied to the long-term goals of the company, and going forward they should be tied to the KPIs of the strategy review as well.

Anyway to close off, I think for the share, don't worry, we're not paid that much. The dilution impact is so immaterial that it is definitely not calculated, yeah.

Okay. All right.

If that is the case, I would just want to ask if the panel has any closing remarks?

I look at the big picture. It is not quite often that you look at everything in single isolation.

What we want is to be the best of its kind. I will not hesitate to do that.

Of course, some of the strategies that I'm going to have, I cannot tell you now, because it is impossible to share some of the foresight. I wish you well.

Thank you very much.

Thank you, Chairman. Akan datang.

I think that's the thing, right? Stay tuned, stay with us at the end of September.

We'll also be sharing more. Ladies and gentlemen, we have really come to the end of the briefing.

On behalf of the CDL management and my fellow colleagues in the room, thank you so much for attending. Thank you to all the webcast audience as well for your support.

For those at the hotel, there are refreshments outside. I hope it suits your lunchtime.

Please continue to stay with us and catch up with us over coffee outside. Thank you so much.