Keppel Corp Ltd Ord

Good morning, ladies and gentlemen. Welcome to the conference for Capital Limited's second half and full year financial results for 2025. We have on the panel this morning, from your left, Mr. Manjot Singman, CEO, Connectivity and CEO, M1. Mr. Louis Lim, CEO, Real Estate. Ms. Christina Tan, CEO Fund Management and Chief Investment Officer, Mr. Low Chin Hwa, CEO, Mr. Kevin Cheung, CFO, and Ms. Cindy Lin, CEO Infrastructure. We will begin the session with presentations by CEO Mr. Low Chin Hwa and CFO Mr. Kevin Cheung, followed by the question and answer session. Mr. Low, please.

Thank you. Good morning. 2025 marked a year of strong progress for Keppel. Against the turbulent and uncertain global backdrop, we stayed focused on growing the new Keppel and are seeing the results of our transformation as a global asset manager and operator, delivering strong returns to our limited partners and shareholders, while creating real assets and solutions that meet the world's pressing needs the new capital delivered a very strong set of results net profit saw 39 year-on-year to 1.1 billion with improvements across all business segments and record earnings from the infrastructure division our funds under management grew from $88 billion a year ago to $95 billion at the end of 2025, well on track towards achieving our target FUM of $100 billion by end 2026, if not earlier, while asset management profit increased 15% to $189 million during this time. We also made good progress in asset monetization with $2.9 billion of divestments announced for 2025, bringing the total monetization announced since October 2020 to about $14.5 billion to date. At the same time, we continue to position capital to benefit from powerful global megatrends, such as the growing energy needs amidst increasing digitalization and the AI wave. with new power generation capacity and an expanding data center power bank of over 1 gigawatt in Asia Pacific. We delivered broad-based earnings growth across all three segments, infrastructure, real estate, and connectivity. with the infrastructure segment accounting for the largest share of the new capital's net profit in FY2025. Just as importantly, the quality of our earnings continued to strengthen, with recurring income from asset management and operations rising 21% year-on-year to $941 million in FY2025. including the non-core portfolio for divestment and discontinued operations, overall net profit for FY2025 was $789 million compared with $940 million for FY2024. This was mainly due to the $222 million accounting loss arising from the proposed sale of M1's telco business. As capital transforms and the market increasingly values the company based on the new capital's earnings, net profit of the new capital rather than overall net profit will become the more relevant measure of capital's performance. During the year, our expanding base of recurring income coupled with continued progress in asset monetization contributed to a healthy free cash inflow of $611 million. This is an improvement from financial year 24, when our free cash inflow of $901 million had benefited from the one-off net cash of over a billion received from the consolidation of Assetco. Reflecting our growth as an asset-like global asset manager and operator, the new capital achieved a return on equity of 18.7% for FY25 compared to 14.9% a year earlier. As at the end of December 25, the net debt to EBITDA of the new capital was a healthy 2x, lower than the 2.3x at the end of 2024. We will continue to be prudent and nimble in capital management, keeping our operations and costs efficient amidst the volatile landscape. As at the end of 2025, we achieved about $98 million in annual run rate cost savings since we started streamlining the company and sharpening our focus at the start of 2023. This puts us on track to achieve our stretched target of $120 million per annum by end 2026. Part of these savings are being reinvested into growth areas aligned with the new capital, including developing enterprise-wide digital and AI capabilities that will help entrench our strong competitive advantage while doing more with less. With a clear focus on optimizing both the pays and exit value of our divestments, our accelerating monetization task force continue to focus on unlocking capital. With the announced monetization of about $2.9 billion in assets in 2025, including the proposed sale of M1's telco business, which is pending regulatory approval. Meanwhile, We also completed transactions with a gross monetization value of about $1.6 billion in 2025. As at end 2025, our total asset monetization announced since October 2020 had reached approximately $14.5 billion, while our non-core portfolio for divestment stood at $13.5 billion. Looking ahead, we'll continue to work towards substantially monetizing our non-core portfolio by the end of 2030. Proceeds from monetization will allow us to further reduce debt, fund the new capital's growth, as well as return capital to shareholders. In 2025, capital delivered a total shareholder return of 58.5%, supported by strong performance distributions and a re-rating of the company that reflects the market's increasing recognition of our transformation and growth strategy. Since the launch of our $500 million share buyback program in July 2025, we have repurchased over 13 million capital shares for a total consideration of $116 million. Reflecting Keppel's commitment to a steady and sustainable dividend strategy, we have said that the company will pay ordinary dividends based on the new Keppel's performance. In addition, we aim to pay out special dividends based on 10-15% of the gross value of asset monetization transactions completed in the financial year. until our monetization program is completed. The actual percentage will depend on the company's growth plans as well as cash generated. In appreciation of the support and confidence of shareholders, the Board has approved or has proposed a final ordinary dividend of $0.19 per share in cash bringing the full-year ordinary cash dividend to $0.34 per share. This represents a payout ratio of about 56% of the new capital's net profit for FY2025. Considering the strong progress in monetization achieved, the Board has further proposed a special dividend amounting to approximately $0.13 per share comprising two cents per share in cash and one capital reit unit for every nine capital shares held which is equivalent to approximately 11 cents per share based on capital reits closing market price of 98 cents on the 3rd of february 2026. this special dividend proposed is approximately 15 of the completed monetization of $1.6 billion for FY2025. In all, we will be distributing total dividends of approximately $0.47 per share for FY2025, up 38% from FY2024, which represents a yield of approximately 4.3% based on Keppel's closing share price of $10.95 last evening. I will now run through some of the highlights of the new Keppel's developments during the year. Our asset management business continued to gain momentum in 2025. We generated $453 million in asset management fees, while FUM reached $95 billion by year end. but growing at a compound annual growth rate of about 20% over the past five years. As our platforms scale, we have seen a clear strengthening of capital standing with global institutional LPs. Today, we are working with a growing group of established pension and sovereign wealth funds, financial institutions and endowments across the world, from Asia Pacific to the Middle East, Europe and North America. We are seeing more LPs initiate conversations with us, reflecting growing recognition of Keppel's track record and differentiated capabilities. During the year Active fundraising by our private funds, together with portfolio expansion across our listed REITs and infrastructure trusts, added $10.1 billion of new FUM. In Europe, Amon Capital continued to perform well and has begun marketing Fund 6 with first close targeted in the first half of this year. Across our private and listed vehicles, we completed $11.4 billion of acquisitions and $2.9 billion of divestments during the year. With a deal flow pipeline of $33 billion, we see a strong runway to deploy capital and expand our asset management income. Looking ahead, a more inflationary environment accentuated by tariffs and trade restrictions is expected to sustain investor demand for real assets with steady cash flow that can also serve as a hedge against inflation. This continues to favor alternative real assets aligned with long-term macro trends, such as the energy transition, digitalization, and the AI wave, which Keppel has deep expertise in. Against this backdrop, lps are placing greater value on asset managers who can originate differentiated opportunities and with proven expertise in operating such critical assets as energy and digital infrastructure solutions become larger more complex and more capital intensive capital's integrated ecosystem positions us well to originate develop and scale such projects alongside institutional investors beyond what our balance sheet could otherwise have been able to support. Within our operating platform, infrastructure continues to be a sturdy pillar of quality earnings. Underpinned by recurring income, which grew at 51% CAGR over the past four years, The infrastructure division delivered record recurring earnings of $703 million in FY2025. Its integrated power business delivered resilient EBITDA of $661 million, backed by long-term contracted capacity, disciplined contracting and strong operational performance, even amidst softening spark spreads. Meanwhile, the decarbonization and sustainability solutions business has performed extremely well, achieving an EBITDA of $130 million, up 32% year-on-year, surpassing our earlier projection of $100 million in 2025. Our infrastructure division has successfully built an asset-like and fast-scaling new engine underpinned by long-term contracts which will bolster recurring income in addition to earnings from the integrated power business. As at end 2025, around 67% of our infrastructure division's power generation capacity is contracted for three years or longer. The 600 megawatt hydrogen-compatible Keppel-Sakra cogem plant, a key proprietary asset within our infrastructure private fund, is on track to commence operations in first half 2026. And its capacity has been already fully contracted for 2026 and 2027 after factoring in the required market reserves. The Sakrapran plant will strengthen recurring earnings, demonstrating our ability to scale advanced infrastructure with an asset-like model. We also continue to build scale in our non-power infrastructure businesses. Long-term supply contracts grew by over $1 billion year-on-year to reach $7.1 billion by end 2025. with revenues to be earned over 10 to 15 years. A case in point is the Hong Kong Integrated Waste Management Facility, which is now at an advanced stage of testing and commissioning. With a 15-year operations and maintenance contract, it reflects the kind of strategic and complex infrastructure that Keppel is able to deliver and operate. Our deep operational capabilities also underpin our progress in digital connectivity. We believe that AI remains in the early innings of adoption and value creation. Scaling AI requires real infrastructure such as power, data centers, and subsea connectivity. And this is where capital can contribute and seize opportunities. A key enabler of our digital infrastructure strategy is data center power banking, which allows us to deliver shovel-ready capacity, significantly shortening time to development and service readiness. We are positioning ahead of the digitalization and AI megatrend by investing upstream to secure early and exclusive access to power, water, and fiber connectivity at strategic sites in key data hubs. In January this year, we expanded our data center power bank in Asia Pacific from around 300 megawatt to over 1 gigawatt with the addition of a prime site in Melbourne, earmarked for the planting of a future 720 megawatt AI campus. We're in active discussions with hyperscalers and new clouds, and interest in the Melbourne site has been encouraging. At scale, our more than 1 gigawatt of power bank capacity, when fully activated, has the potential to translate into about 10 billion of data centre FUM, supporting the continued growth of Capel's asset management platform. Beyond data centers, we achieved an important milestone with the Bifrost cable system, which commenced carrying commercial traffic in December 2025. Our first two fiber pairs, already committed to customers, contributed to earnings towards the end of last year. Last month, we signed a binding term sheet with a customer for another fiber pair. over its 25 years operating life bifrost is expected to generate on average about 200 million in operations and maintenance fees per fiber pair for capital adding a new stream of long-term recurring income at the same time we'll continue to grow our technology solutions and services business which together with our digital infrastructure expertise enables capital to participate in the full value chain serving both hyperscalers and enterprises alongside infrastructure and connectivity our real estate division contributes to sustainable development through providing solutions and services for future ready energy efficient assets in 2025 the division recorded total real estate as a service revenue of 98 million, deepening its pivot to an asset-like model. Looking ahead, both the energy transition and the scaling of digital and AI adoption will require substantial capital and deep execution know-how. By leveraging our strong fund management and operating expertise, we can mobilize institutional capital effectively and undertake such projects at scale, while offering attractive investment opportunities to our LPs. To conclude, the new capital performed strongly in 2025. Earnings grew and asset monetization continued to gain momentum. In addition, we are returning capital to shareholders through ordinary cash dividends as well as special dividends. As we execute our strategy, the market increasingly recognizes Keppel as a global asset manager and operator, which is reflected in the continued re-rating of the company. Looking ahead, while volatility and geopolitical uncertainty are likely to persist, Keppel has built strong foundations and is well positioned to deliver digital and low-carbon solutions that the world needs, as well as strong returns to our LPs and shareholders. This bodes well for our future. Our CFO, Kevin, will now take you through details of the company's financial performance.

Kevin. Thank you, CEO, and a very good morning to all. I shall now take you through Keppel's financial performance. Overall net profit for financial year 2025 was $789 million, 16% lower than the $940 million for financial year 2024 due to discontinued operations, which I will elaborate later. Consequently, ROE was lower at 7.4%. Net debt to EBITDA was lower than last year and mainly due to lower net debt. Free cash flows were $611 million as compared to $901 million in the prior period. As financial year 2024 benefited from the consolidation of asset cost cash balances of about $1.07 billion. Excluding cash balances from Assetco, our free cash flows have improved by $780 million. In financial year 2025, Capo recorded stronger cash inflows from operating activities as a result of lower working capital requirements, as well as higher divestment proceeds and dividends received. These were partly offset by higher investments and capex during the year. Excluding non-core portfolio for divestment and discontinued operations, net profit of new capital was $1.1 billion, significantly higher as compared to $793 million in FY2024. discontinued operations net loss of 227 million in financial year 2025 mainly arose from a loss on re-measurement of m1's telco business net of cessation of depreciation and amortization following the classification of m1 telco as a disposal group to provide greater clarity on the performance of new capital In the next few slides, I will present our financials, excluding the effects of non-core portfolio for divestment and discontinued operations. Net profit of New Capital increased 39% year-on-year to $1.1 billion. All three segments achieved higher profits. Infrastructure continues to be the largest contributor to New Capital's earnings, followed by real estate and connectivity. With the stronger earnings, ROE improved to 18.7% from 14.9% a year ago. Supported by increase in EBITDA and a lower net debt, net debt to EBITDA of New Capital improved to two times as at end December 2025 from 2.3 times as at end December 2024. Free cash inflow for financial year 2025 was $177 million. In line with our focus on growing recurring income, New Capital generated healthy cash inflows from operating activities. Cash inflows from operating activities, divestment proceeds and dividends received were reinvested to fund investments in sponsor stakes, as well as acquisitions and capital expenditure. As a result of better performance from asset management and operations, recurring income rose 21% to $941 million from $779 million a year ago. New Capital also recorded higher valuation and capital recycling gains during the year, from higher fair values on investment properties and investments, as well as monetization from real estate and connectivity. Moving on to our segmental performance. Infrastructure segment recorded a net profit of $803 million, 18% or $125 million higher than the $678 million in the previous financial year. Asset management net profit was lower at $46 million compared to the previous year, mainly due to the absence of performance fees and transaction advisory fees recognized in financial year 2024, as well as lower acquisition fees from capital infrastructure trusts. This was partly offset by lower costs, divestment fees from KIT, and higher management fees from KIT and from private funds. Stronger operating income was supported by higher contributions from decarbonisation and sustainability solutions, as well as sponsor stakes and co-investment. This was partly offset by lower earnings from integrated power business as a result of lower contracted spreads. The segment also recorded net valuation gains from its sponsor stakes and co-investments in 2025. Real estate segment achieved a net profit of $273 million, a significant improvement compared to the net profit of $107 million a year ago. Asset management net profit of $93 million was $31 million higher year-on-year. Driven by acquisition fees in relation to capital REITs, acquisition of an additional one-third interest in MBFC Tower 3 in Singapore and an interest in a retail mall in Sydney. There were also higher management fees following the first close of Education Asset Fund 2 and higher contribution from AMON as well as lower cost and interest expense. Operating income improved $45 million year-on-year, mainly due to higher contributions from sponsor stakes and lower financing costs, partly offset by higher losses from senior living business. In 2025, real estate recorded higher valuation gains from sponsor stakes and co-investments, and also recognized net gains from the partial disposal of Saigon Center Phase III in Vietnam and the disposal of One Paramount in India. Net profit from connectivity segment of $175 million was 17% or $26 million higher than the $149 million in the prior year. Asset management net profit was 47% higher year-on-year at $15 million, driven by higher management fees following the acquisition of two assets by Capital DC Reit. and the first close of DC Fund 3 both in December 2024 as well as carry interest earned from Alpha Data Center Fund. Operating income of $35 million was $9 million higher than prior, mainly due to higher contributions from Capital DC REIT following contract renewals and acquisitions of assets at the end of 2024. The segment recorded lower net fair value gains mainly due to fair value losses on sponsor stakes in private funds, partly offset by higher fair value gains from a data center investment in KapoDC REIT. Gains of $84 million were recognized in 2025 from lease extension of Kapo Data Center Campus Singapore and from the sale of two fiber pairs of the Bifrost cable system upon receiving Ready for Service status. Net loss from non-core portfolio was $84 million as compared to net loss of $6 million a year ago. Net loss of legacy O&M assets of $156 million in FY2025 was mainly due to interest costs attributable to legacy risk and impairment of fixed assets, partly offset by fair value gain from CETRAN shares and foreign exchange gains, interest income and tax provision write-backs. For financial year 2025, the property-related non-core assets registered a net profit of $119 million, mainly driven by gains from divestments in China and Vietnam, which were partly offset by operating and fair value losses on investment properties and losses from development projects. Investment and others recorded net loss of $47 million, mainly from fair value losses on investments, partly offset by game on disposal of Computer Generated Solutions Inc. in the United States. With that, we have come to the end of the presentation, and I shall hand the time back to CEO for the Q&A session. Thank you. Thanks, Kevin.

Before we take questions, I will also like to mention that we have just announced this morning that Mr Danny Teo will retire as Chairman of Capital's Board immediately after the Company's upcoming AGM on the 17th of April, 2026. Mr Piyush Gupta will be appointed Non-Executive Chairman and Independent Director of the Company on the same day. I would like to express my deep appreciation to Danny for his strong support and counsel since he joined the Board in 2010 and over the years when he served first as Chairman of the Audit Committee and subsequently as Chairman of the Board. Danny's leadership and support were pivotal as CAPL undertook significant transformation to pave the way for its future growth. Since joining the Board last July, Piyush has provided valuable advice in the sharpening and execution of CAPL's strategy. I don't think it's anyone's surprise. The board and management look forward to PUSH's leadership and guidance as we accelerate capital's transformation to create value for our limited partners, shareholders and other stakeholders. We'll now open the floor to questions and Mervyn, you have the floor.

All right, good morning to my team. Moving from JP Morgan. Congrats on the super strong results. I think the special DV, I think everybody's quite pleased with that. Looks like you're taking the mantle of the superstar CEO in Singapore for your new chairman. So congrats on that. In terms of, thank you for the clarity in terms of how much you'll pay out in special DVs going forward, 10, 15% of investments. But in terms of uh helping us model the special dv for this year any clarity in terms of quantum or divestments or should we do 13 and 13 and a half billion about by five and in terms of buybacks uh should be assuming uh 50 000 shares to be purchased every day as we saw the last uh second or fourth quarter last year or would you think you can buy a bit more i presume you will tell me that the share price is still undervalued again second question second series of questions I have is in regards to infrastructure segment another question you can share with us the quantum of decline and bug spreads do you still expect and in terms of decarbonization, seems to be doing very well, but do you have a quantum in terms of exit run rate for end 31st December? I do know that EBITDA was 130 million last year.

Thanks. Thanks. I will address the first two questions and then I'll ask my colleague Cindy to address the questions on infrastructure. uh first and foremost i think the uh you know for the monetization just to be very clear um the special div division dividends as tied to monetization is not based on what is announced it's actually based on what was actually realized in financial year 2025. so what that means is that of the 1.6 billion that was realized in 2025 Of course, there were some that were announced in 2025 itself and got completed last year. But there were also some that were announced earlier, say in 2024, that only completed in 2025. So just to be very clear, it is based on what is announced, what is completed in the financial year. So I think we have already also made a statement consistently that the non-core portfolio for divestment is to be substantially monetized by 2030. So that's, you know, and I don't think that we can give any projections whether it's a straight line because some of these assets can be quite lumpy. So I think that's kind of how we would look at it. What was your second question? Oh, share buyback. Okay. So on share buybacks, I can't really comment. I think we have only so far expanded about $160 million or so. So we still got a fair bit to go. These share buybacks do serve a purpose to fund our share plans as well as to be a source for us to use as currency if we do any M&A. So as to the amount that we will buy back, I think I'll leave you to watch the market over the next period. But clearly on share buybacks, we're also quite careful. So if there are any blackout periods or we're in possession of PSI, the share buyback will cease. Cindy?

Happy New Year, Marvin. The integrated power business has indeed performed well. We have delivered resilient performance amidst softening spread. To your question about the spread, we expect the spread to stabilise. However, to avoid the volatility of our integrated power earnings, we have diligently focused on long-term contracting strategy. As you have seen in our presentation by CEO, about 67% of our capacity has been contracted for more than three years. On top of that, we are also diligently expanding our generation capacity. Our Sakura Co-Gen is on track to complete commissioning by first half this year. Sakura Co-Gen is fully contracted for 2026 and 2027. So you will be able to see that our entire power generation fleet in Singapore is by far the most efficient, with H-class and the 2F class having been upgraded. This will continue to provide resilient EBITDA earnings from our integrated power business. We are not resting on our laurels. We are also focusing on how to expand integrated power business beyond what you see in Singapore. Your question on the carb and sustainability solution business. Indeed, we have clocked in very strong book-to-bill ratio. And the long-term contracted backlog is about $7.1 billion to be delivered over a period of 10 to 15 years. In fact, the weighted tenure is about 10.2 years. This will translate into strong resilient EBITDA over time and we have embedded AI in our origination proposal generation as well as subsequent operation efficiency so I expect with this flywheel of a strong book to build uh growing uh top line this you deliver not just dividend growth but also ebitda margin growth thank you let's say you analyze the 31st december day revenues what would it be i presume it's more than 130. uh our book to build ratio is about 3.6 x

Okay, now there are a couple of questions online, but let's deal with some of the questions.

I'm Gula from The Edge, so I've got a couple of... Sorry, can you repeat again? I'm Gula Warden from The Edge, and I have a couple of capital management questions of which you've answered the pipeline from monetisation this year to Mervyn. And I just wanted to ask whether the special dividends will include units in Keppel DC REIT, KIT and CORE... Given that our core has the 6% overhang of core units from the liquidation of specific special opportunities to that bond default. So that's the first question. And secondly, with the Sacra plant since it's been fully contracted for this year and next year, would it be offered to KIT or at what point, I mean, is it a pipeline to KIT and at what point could it be?

Well, to your first question, there are no current plans to include any other units that we hold of the REITs and trusts for future special dividend payout. To your second question, Currently, SACRA is held by a private fund together with our balance sheet. We obviously will look as the unit gets commissioned and is ready for service in the first half sometime for this year. We will look at opportunities to monetize it for the fund. Where it's going, there are no current plans to put it into KIT or any of the other. We could also potentially put it into another fund.

Last question. You've not completed the divestment of M1, but you've booked the loss in this year's FY. Is there a reason for that?

I'll ask my CFO to explain.

Yeah, that's purely just an accounting sort of treatment, given the announcement that we have for the intended sale, and we qualified the parameters for us to classify that as a disposal group, which is why it's under discontinued operations.

Yes.

Brandon here from Citi just a couple of questions just going back to Ula's point so if you look at for this year the special div for about 13 cents 11 cents did come from KREAT but if you were to work backwards taking this away it seems that KREAT shares were used to sort of back up that 10-15% of GAV that you intend to pay out so going forward let's say if there is not enough cash on the divestments to achieve that 10-15% will carry or any other stakes in your listed entities be used to sort of mitigate that loss

we look at it this way, I think it's part of our capital management and we will then decide first and foremost what percentage of the monetization, we've given a range of 10 to 15 percent, so it depends on what are the needs for our growth. Because as we mentioned, when we monetize the non-core portfolio, it goes into three things. One is, of course, reduce debt. And secondly, of course, is to fund growth in the new capital. And last but not least, is to return capital to shareholders. So we will have to look at all that before we decide. And after we decided what percentage, then we will look at whether it's part cash, part in-species distribution. So that will be decided at that point in time. But there are no current plans to, as I mentioned to the lady from Edge, there are no current plans to do anything additional in-species, whether it's KREIT or any of our REIT holdings.

Okay, so essentially what shareholders need to know is that you will stick to your 10% to 15% of GAV as special day payout. That's all we need to know, right?

Yes. Okay. And this is based on what, as I suggested to be very clear, it's not based on what's announced but what's completed.

yeah yeah of course so hopefully you complete double the amount this year that's the plan i'm just just holding on uh to make next question on uh property so i realized for fy25 you did book in some fair value losses on both your ip and your dp could you share a bit more color on that Also, if you look at the real estate, new capital side, the operating income started turning into black. So does this mark a turnaround in terms of the earnings? Thanks.

We don't go into the specifics of detailing what we took impairments on, but fair to say that as we do every year, we will go through all our investment properties and make an assessment based on the evaluations that we get. There is some softness, particularly in some of our China assets that we did take. The second part to your question around the real estate operating profits, if you look at our real estate business today, a large part of it is in sponsor stakes. So it really depends on the performance of the investments that we make. And a large part of that for the results this year is driven by some of those contributions. And obviously, we will continue to focus on that. I mean, if you look at our results, the real estate segment as a whole has done very well this year.

Louis, anything you want to add? No, I think I was going to second that the sponsor stakes become very important for us. But I think across the... kind of new capital real estate as a service business, that's something that we've been focusing on growing as well. So our urban solutions business, our sustainable urban renewal business, our retail business, as well as the senior living business that we bought in the U.S. As you know, we just completed that in March 2025. So we're seeing that really turning around, and we're looking forward to enjoying the tailwinds of that segment in the U.S. Okay.

It's between Siu Kee and Tan Sri, and I don't know, one can go first. Okay.

Hi, morning. Sian from Goldman here. First question is on 2026 net profit. SGX has clarified that actually forward guidance is allowed. It's also encouraged. Can I ask whether you could kindly guide us on net profit? If not, maybe what are the broad key drivers and also risks to look out for? Second question is on capital central. Can you share what is the carrying value and when do you think that will be ready for divestment? Last is on legacy weeks. Can you elaborate a bit more on the interest costs and also what is the timeline on monetization and if not, then what is the run rate of loss that we should expect from this? Thank you.

Well, I read the same article as you did. We're not quite ready to give forward guidance on earnings. What I would say is that the new capital is still growing. Of course, there are a lot of challenges out there. But I think the main, if you look at how our business is now positioned, one of the main drivers is really on funds under management. So if we continue to see the growth and we can turn those funds under management into fee income, that would obviously help our 2026 earnings. And we are seeing quite good traction on the fundraising side and also on the deployment side as I've shown in the slide. At the same time, I think the operating division will also have some tasks ahead of them to continue to perform well. So I think once you have the FUM growing and we continue to operate strongly in the various segments that we're in, infrastructure, connectivity and real estate, then that will power our growth for 2026. But I'm not at this point able to give you any guidance on what to put into your model. On KSC, I think the carrying value we don't disclose. The leasing is doing well. I think the truth is that KSC is an investment property or would be an investment property when sold. So in order to achieve a good outcome, we will need to raise the occupancy rate. Louis and the team has done a great job pushing for that. I think we have gotten quite good traction, particularly in the last few months. Maybe I just invite him to share a bit on KFC leasing.

On the leasing front, we're about 50% committed or at very active levels of negotiation already. So we do look forward to being in a position in the near to medium future to be able to figure out monetization path for this asset as well.

And I think the rents that we're seeing is also improving. As we've seen from various reports, the central CBD office core office rents are actually tightening. So we're in the right market, so to speak. Getting the occupancy up is crucial. After that, we'll then look at potential monetization. On legacy rigs, this is something that we are obviously very focused on. We do want to find a way to monetize this, but I think the market now, I would say... The checkup rates in the last few months in terms of day rates have started to improve. Of our six rigs that are now working, four or five of them are being re-contracted. and the rates are about eight to ten percent higher than what it was these are bearable charter rates so we we are quite encouraged by that on the floaters the market is still a bit soft but we expect that to improve towards the end second half of this year so we are watching this phase very closely there are some inquiries whether to buy or to lease so something that we are working on okay

Hi, I'm just following up on the asset core. So previously we mentioned that we might actually look at paring down stake of ownership of asset core into funds. But now we're talking about inquiries to buy and lease assets. So which is more likely in the near term?

The truth is that we are exploring all options. I think the focus now, not unlike what we just mentioned about KFC. I think if you look at the offshore rig market, we believe that with no new supply coming on and older rigs becoming obsolete over time, the supply of rigs will tighten. So until day rigs improve significantly. you will not justify new rigs being built. So I think we are sanguine about the medium to longer term outlook for rig prices. At the same time, I think the key now is whilst we are waiting for this market to, the capital markets, the prices to improve on the rigs, we will put the rigs to work. And the jack up rigs that were put to work has been very successful. So now the goal will be to try and see whether we can, you know, bearable charter the other rigs. And then once that happens, potentially it could actually be attractive to an investor because you've got cash flow, right? Now, in the meantime, if someone turns up and said, look, I'm interested in buying a rig and if the price is, you know, right, we will obviously be opportunistically looking at that as well.

Okay, thanks. Just going to connectivity and M1. Why is there a delay? I know you're waiting for IMDA approval, but is there any issue in terms of infrastructure, customers? When do you expect it to be completed?

You and I are waiting. I think the truth is that you have to let the regulators do their work. So the process has to take place. We still remain very confident that the deal will get done. It's a bit delayed. I'm just as impatiently waiting as you are. But as I said, we have to wait. We have to let the regulators do their work.

Thanks. So on connectivity, so the gains that you have actually recognized for the two paths of BIPROS is already in second half. So, and then of course in your comments you said that the capital recycling is split of gains from this extension of KDC campus as well as the BIPROS path. Would you be able to actually give us a bit of insight? Is it towards... The latter or the former? The overall 84 million, how do you split between the KDC campus and the Bifrost?

It's inclusive of both, we can't give you the stability. But I think given that Bifrost is still quite new in terms of even the cables that are operating, the O&M fees and etc. will be more towards the end of the year. then I would say that the bulk of it would be from the lease extension.

Thanks. Sorry, I just have two more questions. One would be, I know that you said that monetization pace is lumpy, but last year you were very helpful. You actually did guide us that there would be 500 million of assets to be monetized in the second half, and I think you did that. I guess property trading is what you meant back in the first half. So maybe you can actually just...

you know guide us on whether you would be able to do equally 1.6 billion to 2 billion of SMIC vision this year excluding M1 well the truth is that we want to do more but a lot of these are quite lumpy so it's very difficult for us to guide because sometimes you guide you know if you're not there's so many so many uh pans frying pans in the fire so we do not know when will be when when will be cooked when will be ready So I would say that best to kind of look at it that, you know, we've got about now roughly 13 and a half billion of non-core assets to monetize. We roughly got about five years to do it. So, you know. We are working really, really hard. My colleague behind his head of the asset monetization task force, I better not tell you who it is, in case you go and corner him. But we'll work very hard to monetize, because I think that's really the key. I think if you look at the results, New Capital is performing well, continues to perform well. but the non-core and we are also doing the monetization but the key is really we need to get the non-core out of the way so that we can then all focus on the new capital.

Thank you.

I don't know who's next. Okay, you got the mic. Yeah, Sui, go ahead.

Hi, thanks for the time. I'm Sui from Macquarie. Congratulations on this wonderful set of results. I have three questions. infrastructure, one on real estate, and the last one is more strategy. So on infrastructure, I think on slide 12, you have this, you presented your EBITDA numbers for both integrated power and DCOP solutions business. I think it adds up to about 790 million. Its first is, do I understand this as the total EBITDA of infrastructure? Because when I compare it against the 405 million EBITDA for infrastructure in first half of 25, it implies a half on half decline in your infrastructure EBITDA. So trying to understand what's driving that decline down there, right? And should we expect one of the businesses to increase in FY26 to kind of offset that underlying decline? That's the first question. Second question is on Keppel South Central. We've been at 50% leasing for quite a while, so could you help us understand why isn't it moving along faster? And the third question is, now that Piyush is the chairman of Keppel, what great things can we expect from Keppel going forward?

Maybe on EBITDA, I'll let Kevin or Cindy, if you want to address.

There are other contributions of EBITDA from the infrastructure division. Maybe you can take question two first, and I'll come back to you shortly.

I'll take it. Well, frankly, every time we give you a number, you latch on to it, and then the next time it becomes an issue, right? So 50% was a broad number we gave, but if you listen to what I actually said, the 50% is actually almost done. So it's committed to very active negotiations. And very frankly, people who come to the building love it. There's still a lot of tension in the market where people think they can negotiate better rentals from you. We are confident of the product, so we have actually held our prices. If not, we would be actually pretty much fully leased out. So I think there's that kind of balance that we need to strike because if you want 10% to 15% of monetization gains, then we also have to uphold the rents to give you that valuation.

I think Louis' point, I think we have to kind of make sure that it's clear. I recall when we talked about 50%, it wasn't done. I think there was a certain percentage that were done, and then the balance were active negotiations. At that time, when we mentioned about 50%, now you're basically saying 50% is more or less committed. And then, of course, what he doesn't say is that there's more inquiries above the 50% that we're trying to convert. The other point I think at the end is that when you are trying to monetize an asset, the rents that you obtain is quite important because that will determine what someone will pay in terms of on a per square foot basis using a cap rate approach. So I think that's why the team is, we don't, we don't try to sacrifice rent for occupancy if it was an asset that you're going to hold longer term in your balance sheet and you don't have any you know any time frame for divestment then it would be something where you can say oh I rent it out whatever get occupancy up and then at the next rent renewal then I will get the rents up but in this case we're trying to optimize the exit price and this is something that I think you have to understand also even though we are quite committed to monetize the 13.5 billion We are not doing a fire sale. As someone recently told me, even though I know you are selling, I can never get anything cheap from you. The point is that we are trying to get a fair value. We are not in a distressed situation to sell, but we do want to sell. So we are a motivated seller, but it must be at the right price. So I think these are things that we have to work on. to make sure that we get the right outcome for the shareholders.

Yeah, maybe I'll try. Sorry, you just caught us on a question that we typically don't do a lot of analysis on, but first and second half, which is confirmed with the team on an EBITDA basis, is quite stable. You're coding 405 in the first half, and I think in the second half is 386. So you've got marginally quite stable between the two halves.

There are certain timings also, because some of it is linked to the O&M income from our waste and water business. So you can't really compare half and half, but I think it's stable. This is the point.

So on your third question on Piyush, I think he joined the board in July. And as I mentioned, and I'm sure it's no surprise to anyone here, he has very quickly gotten to understand the business and been very actively engaged with the rest of the board with management. And he has sharpened our look at our strategy and how we can execute better. And I think that's really one of the key, we're very excited that he will be taking over, I must say he will only be taking over as chairman in April. So currently, I don't know what the news headline says, but it's only after the AGM that Danny will step down and he will take over. As I said, Danny has done a fantastic job guiding us, particularly through this last five years as chair, when we went through this transformation. I'm very, very sure that Piyush would add to this in the coming years. So myself, my team, Capitalites, we're all very energized and excited about Piyush coming on as the chair. Okay. Next. Oh, I can't see. Ah, Pei Hua. Okay, sure. Sorry.

Hi, this is Rachel from UBS. Just two questions. One is that your 67% contracted capacity for your integrated power business, is it just for Kepo Millimow Coal Gen and does it include Sapphire Coal Gen? And the second question is that you mentioned that you will pay out based on what was transacted in the year. So I note that M1 hasn't been transacted yet. Will M1 be included in your consideration of your special dividend, given that it's not actually included in your non-core?

Cindy?

Thank you. Yes, it includes the entire Kepa Melimau co-gen and Kepa Safra co-gen.

so you're very sharp rachel you picked up that m1 is not included in well it it was uh it was um uh still not classified when we started to split uh in the first half at the end of the first half last year we did we still classified uh m1 under a call or under the new capital But shortly after, I think in August, we announced the sale of the M1 telco side. So two quick answers. I think first, it's not included in the $1.6 billion that was announced. monetized and completed last year obviously it's not because it still hasn't been completed subject to regulatory approval I believe you'll be included when it's completed so assuming is completed this year then you'll be completed in the you'll be included in the monetization for 2026 yes sir joy

Joy from HSBC. Two questions from me. First of all, on data center, can we talk a little bit about the recent power bank in Australia? What's the plan down south? Also, in terms of update of CFA in Singapore, the IMDA calling for another 300 megawatts. Just following on that, if you win more sort of DC capacity, would you want to also increase your generation capacity on the power side, on the back of that? If I may just ask. Yes, sure. Second question is on Bifrost. You talked about looking at a new system. Can we get an update on that as well? Thank you.

Mark, you want to take it? Sure. So we did announce the power banking of about 123 hectares in Melbourne. You know, power banking is a very interesting way of reducing our time to market demand. In terms of deployment of data centers. And what this allows us to do is to power bank close to about 720 megawatts gross power, which is in an area which is quite energy rich as well. So it gives us the opportunity of it being shower-ready, as Chinua mentioned in his opening speech, so that whenever we have active interest from any of the customers, hyperscalers and so on and so forth, we are able to reduce our time to market significantly for them for deployment of the data center. So this is something that we started a year back, this power banking. We had about 300 megawatts in our bank. This adds to another about 700, so it's about a gigawatt of power bank that we have. And going forward, we will continue to deploy this strategy across the Asia-Pacific. so that we are able to, like I said, act very quickly, because most of the customers want quick time to market from the time they decide on a location for data centers. So that's our strategy for Melbourne, and that's our strategy going forward as well.

Okay, on your question about CFA2 and whether we will, if we are successful, whether we will use or we will take on additional power projects to power them. uh cfa2 is uh i think it's going to be very competitive uh we have a game plan uh so unfortunately i can't disclose it okay join thank you uh maybe before one last point on bifrost okay

So, the two other cable systems that we are looking at are still under evaluation. You know these cable systems are quite complex and requires huge amount of pre-work in terms of regulatory requirements, landing station partners and so on and so forth. So, we are evaluating both the cable systems at this point in time and we have not yet come to a conclusion of which one will go first and which one will go second. But at this point in time, the evaluation is quite robust, I must say, and continuing in a very active manner.

Can I just follow up on the power banking side? How quickly or what sort of conversion ratio should we look at?

We haven't yet decided on the conversion ratio, but suffice to say that the moment we power bank a location, we don't power bank blindly because we do understand that this has to be converted into active data centers and capacity utilization. So our work on power banking happens typically in conjunction with the customers that we work with so that we get some kind of an idea of how and when are we going to develop that power bank into an active data center. But we haven't yet defined our ratio at this point in time.

Maybe an interesting departure here. Some of you here would have attended our Capital Next last year. You might recall that we have developed an AI agent that looks at potential sites for data centers. And so this is actually very actively being used by us, where we kind of map out all the publicly available information on power, water, connectivity, and then plus our understanding of what hyperscalers are looking at. And so this is then being used by the group as part of our AI-enabled power banking strategy. Now, before I go to Pei Hua, before I go to that, I think there are a couple of questions online. So if you allow me, I'll take them first, then I'll come back to you. So thank you for waiting patiently. Mr. Tom Taylor of PEI in Australia. Tom has three questions, but maybe I'll take each question one at a time. First question, as global managers get bigger through consolidation, example BlackRock GIP, where does Capo win deals where they don't?

Hi Tom, thanks for the question. I think we are very fortunate that if you can remember that Kapil is a global asset manager and an operator. So unlike the financial GPs in this world where they have to actually go out to buy assets or look for assets, we have our operating divisions that can actually create, develop these assets. So for example, like working with connectivity on data centers, we actually are able to just create the data centers right from Greenfield. Similarly, we worked closely with Louis in terms of real estate. providing sustainable urban solutions, greening older buildings and actually increasing the net operating income for such buildings and creating values for investors. Similarly, for infrastructure as well, we work closely with Cindy's team in terms of whether it's power banking, creating more power plants, and also looking at environmental, waterways and all this. So we are very fortunate that we do not need to just go out competitively to look for assets and deals. We are able to actually source deals internal within capital, but also at the right price. I think we will always consider external deals flows when they come through.

Thank you, Chris. Tom's second question, which parts of the remaining non-core portfolio are proving hardest to exit? I think I kind of touched on it earlier. Whether it's hard or not hard, we will find ways to monetize over the next five years. I think it might be instructive to look at some of the things that especially the real estate group have been able to monetized over the past few years. I think we've monetized assets ranging from Philippines to Myanmar over the last few years. They are tough assets to divest and I think Louis and the team has done a great job doing that. And at the same time, we have also sold a piece of land in China, in Tianjin last year. And we were able to book quite a significant value gain from that as well. So it's never easy, but we don't do easy stuff, but we'll still get it done. uh okay for projects sector question for projects like sacra and the melbourne sacra cogen plan and the melbourne data center power bank what percentage of development risk is capital retaining on balance sheet versus syndicating to lps so typically uh how this is done is that during the very early stages uh capital will actually come in with our balance sheet because initially the amount of capital required It's not significant when we're doing our pre-feed, we're doing our feed. In the case of the power bank in Melbourne, this is through options for a lease with an option to be able to buy later on the freehold. So I think the team has structured quite a clever deal where we're able to minimize our upfront. uh whilst we work through with potential customers so typically what happens is that once uh the project is more or less the risk and uh frequently when we have a customers in toll and where we start uh when we complete our fid that's when uh the funds come in and that's also when the when the capital requirement is much greater so this is kind of our ip And that gets LPs very interested to work with us because we can actually provide some of the early risk capital. But the development risk, when we start, is usually taken together with pari passu with the LPs. Okay. Next question is from Alvin Chua of SG5 Private Limited. uh singapore over the park next 12 to 25 24 months which business segment does management have the highest earnings growth conviction in how do you expect progress in monetizing legacy rates to support returns and capital recycling during this period we we don't i mentioned earlier about the rigs we're working actively on it but we we don't give projections when that will be done As far as business segments, I think all my colleagues are equally charged up to do better, correct? Okay, one more question before we go to the floor here again. This is from Joey Hsu of DBS Singapore. Congratulations on the strong set of results and dividend uplift. He or she has three questions. On the SACRA co-gen plan, how does the potential margin compare versus Merlimau? Cindy, you want to answer that or not?

I think what is germane is actually we run it as an integrated power business. So instead of looking at it one unit by one unit of power generation, The entire integrated power business includes how diligent we are in contracting gas and the cost of gas, how efficient are we in terms of the power generation units, and more importantly also our portfolio in terms of contracting the type of customer, high value, high volume customer, vis-a-vis strategic long-term relationship customer, and how do we help customer transit to low-carbon solution. This is also reinforcing Joy's earlier question about supporting, for example, hyperscaler or CFA applicants. The bringing green pathway to such high-value, high-volume customer is one of our unique value proposition. including that of the low-carbon ammonia-to-power power finder project, which we are supporting the regulators and the industry players with.

Thank you. Thank you, Cindy. The second question from Joe is, monetization has been outstanding in 2025. Does 2026 look like a better year with falling interest rates? How could you see monetization of your China Tianjin Land Bank panning out? I think that one is already done.

We have done the Tianjin Fulong. I think they mean the Sistep Land Bank, which we hold at historical cost. So at the right opportunity, we'll continue to monetize that as well.

I think that one is quite interesting. I mean, it's, you know, obviously the news, and I mean, it's still not just the news, the market is quite challenged at the moment. But SS Tech actually, you know, has no debt, I mean, no net debt, has a significant cash balance. So, you know, we're not kind of, in fact, we're very healthy and looking, and the land cost is what Louis says, is is below market so you know we are the market may not may not lend itself may not be constructive in the near term but we remain quite positive in the in the medium to long term uh monetization for 26 we you know the falling interest rates uh will it help maybe it will help the real estate market to a certain extent uh but i you know it's you it won't hurt i would say but each of the assets that we have in the non-core that we are trying to monetize will not just happen because the interest rates are lower, but it certainly won't harm us. Third question, are there any new business trusts and REITs that could be launched in future? Chris?

Yeah, sure. We will always be open to new business trust REITs in the future, but actually for now, our plan strategy is really to really scale up our existing REITs and trusts. We are already in the right sectors, in the real estate sector, in infrastructure, and in the connectivity sector. So I think we're quite happy with what we have right now. The main thing is that our strategy is to scale up and to actually improve efficiency and margins. so that as the FEM grow, our margins will grow and there will be more profits actually for capital.

Thank you. Pei Hua, over to you.

I still have to congratulate you for the good results. Thank you. I just have two follow-up questions on the infrastructure side. I think firstly to confirm what Rachel asked just now, the slides, the contracting profile, taking into consideration the new capacity because that means that the new capacity we have also contracted out for more than three years. That's correct. Okay. Then I just try my luck. I just hope that you could give us a bit more colors on the power spread. How the new capacity, how is it compared to our average power spread in our existing portfolio? And do we see the bottoming, you know, because this year is a bit of pressure because of new capacity coming online. So I just wanted to get your sense and outlook and how do we expect your average power spread trending forward. Yeah, that's all for me. Thank you.

The colour ought to be greener. So this is how we see it. From the Singapore market perspective, it's always a function of supply and demand. And we all know that the existing power generation units in Singapore is ageing. And the last, in fact, we are the first planting for high efficiency power generation back in 2022. We will be the first to come on stream middle of this year. You will have also heard the announcement from Singapore government about unlocking Jurong Island for 700 megawatt of data center planting. Then you have also heard the push behind electrification as well as attracting more advanced manufacturing investment in Singapore. All these are auguring well for power demand. And besides just power demand, there is more and more requirement for efficiency and reliability. So I think it would be more instructive to look at it from a longer-term perspective rather than the instantaneous USAP vulnerability. So our team, our retail team and our portfolio and commercial team is very diligent in constructing our contracted base such that it provides that resilience. And remember, I emphasize on high value, high volume customer. And for such customer, we work very closely with them in terms of their long-term need, their long-term growth, and also their glide path towards decarbonization. We'll augment it at the right time with our renewable importation For that, we are also the frontrunner, and like I said later on, whether it is ammonia and the like, we will also supplement our value proposition to the customer. So that will help from the market perspective. If all Genco's play to the four switches which Sengaf has announced, I think we will be able to see quite stabilized spread in the years to come.

Thank you. Thank you. Melvin, you have another question?

Yeah, I got three questions. Maybe you can go to slide 11. You have six funds you're targeting to raise. Are you able to share the potential FUM for that? In terms of existing funds, in terms of upsizing, is there any particular FUM size that you can share with us? Second part relates to the power bank in Melbourne. What is the source of the power? Is it brown coal? And if it is so, does this provide a challenge in terms of securing tenants or hyperscalers who are a bit more ESG sensitive? And how does the special relationship we have with AWS fit in this power bank? And my question, JY, you look very youthful, full of energy and vigor, but in terms of few years just band-aid is it is he also looking at succession planning or you plan to stay on for another five years

Can I, Chris, you want to deal with the first question?

Yeah, sure. On the fundraising, I think we actually have a very fortunate position that we're in the right place at the right time because capital is a real assets portfolio. So we have alternative real assets with actually strong cash flows that investors like. And actually right now with all the uncertainty in the world, volatility that you see, Actually, most investors are actually reallocating from the US into Europe and Asia. So I think Capo is very well placed and positioned in terms of taking advantage of what's happening globally. I think we are still working through very strong tractions, a lot of discussions and negotiations with our investors as well. Even when we want to bring them in, we also want to make sure that we get good fees for that. We don't provide forward guidance on numbers, but I think we are more than confident to go above the $100 billion that we promised by 2026.

So for the power bank in Melbourne, it has both powers available, brown as well as green. So depending on the customer and the cost and the future plans of the customer, we could We could find a pathway from brown to green as well if need be. So both power are available in that particular site. And that is why that site is so interesting because if the customer does prefer green, then we are able to provide green power as well. Your question on SFA with AWS, I think, yes, of course, we have an agreement with AWS, but it's not exclusive to either. So we have the ability to understand and work with other companies Hyperscalers, whether from the US or from other parts of the world. So we are looking at their demand and how they would be looking at Australia in their future plans. So for us, while there's an AWS SFA, which is important to us, we also are working with the others. So we will be looking at how hyperscalers look at Australia. and working with anyone of them, whoever prefers to be in that place.

Okay. Well, thank you for saying that. I still look youthful. Some days I don't feel that way. I think the truth is that I think capital is always run by a team. And as any good CEO will tell you, we are constantly looking at succession planning. And just for myself, but for my colleagues as well. I think that I'm still having fun and there's still, I believe, unfinished business that we need to get done. But at the same time, the time that I serve or how long I serve is really at the end. you know I serve at the pleasure of the board so I wouldn't want to predict anything but I think so long as I'm here I'll do my best and I'm looking forward to working with Piyush I think he's got a lot of things I can learn from and my colleagues can learn from so let's leave it at that thank you yes one more

hi good morning so um can i ask on uh dexter from bloomberg here uh can i ask you on the portfolio in terms of divestments do you actually break down how much the divestments or the monetization comes from a non-core portfolio because i noted that the real estate supply reduced by 0.7 billion so is most of that going out through divestment so is that true evaluation that's one of my first questions on the organic group on the 100 billion target you're expecting more in terms of organic growth in the fund side or is it more in terms of acquisitions and you guys did a paramount deal in India last time I remember you got plans for India office fund is that still in the pipeline maybe first question sure hi Dexter

the non-core portfolio for divestment of 13.5 billion um you know comprises of uh many many uh different variables uh um so we we don't speed up the details between you know the different asset classes i mean fair enough to say that we have said that you know the plan is for us to pursue monetization for this bucket and we will leave it as that

On the Paramount and India office funds, I think we have a sustainable urban renewal solutions fund and in that mothership fund, we can actually create sleeves if we want. So a possible sleeve could be an India office. But actually what we do is we encapsulate everything into like a surge strategy. Because actually instead of just doing value adding, I think now we're always looking to turn buildings from brown to green.

Your other question on whether the FUM is, I think the question was whether the FUM is generated from organic or inorganic. The truth is that last year, I think we already completed,

uh the deal with airmond we have not done any other deals so in that sense uh we will treat it as all organic okay and just two big question picture questions from me uh first one on the ai on i know you'll do a lot of the essence what's your sense of there's been a lot of talk about ai bubbles are you all is that adjusting your strategy in any kind of way in terms of data center investments etc And secondly, I remember one, Capital Land has said that they are also interested in looking at infrastructure. Have you talked to them at all? Are you concerned that there might be overlap? That's it.

Well, second question, I think we are two separate companies, so I think you've got to talk to them. So we've been doing infrastructure for quite a long time. I think if you look at since the days when we started, at least 30 years ago. So it's not something that just happened by and by. We've been also involved in real estate for many, I think, 50 years. Connectivity, even for data centers, we have been involved since 20 over years. And asset management over 20 years. So it's not something that we just suddenly wake up one morning and said, I want to be an asset manager or I want to be an operator. It comes with a lot of track record and history. What was your first question? Oh, on AI. So I think I've mentioned in my speech that putting aside any – I'm not commenting on the valuation of AI-related stocks, but looking at AI as a kind of – a macro trend we still feel that is at a very early innings because even for ourselves as a as a consumer of ai trying to and and looking to embed ai into our into our organization and into our businesses like most companies we started with a lot of sandboxes maybe four five years ago And then in the last two years, starting from early 2024, we have started to take it very seriously. And this is starting to adopt what we call an AI-first mindset, not just for FMNI, but across the whole organization, including for our operating division. And what I would say is that for ourselves as a potential user of AI we see tremendous opportunities and every time we kind of look at it again we said oh wow This is what you can do. And it's not just about efficiency gains, but it's really about building core competency or giving us the superpower to do better, become more competitive, whether we are a fund manager or an operator or building infrastructure assets, etc. Based on our own experience, I would say that we think the AI journey is still at a very early stage. Maybe next question for someone else.

Hi, Chinua. My name is Morgan Stanley. First question was related to Gasco. Now with Gasco coming into play this year, I suppose, how do you think about the impact in terms of your business both from a spreads perspective as well as competition perspective? So that was one. The second question was more related to the $13.5 billion of assets you have under the non-core side now. What is the related liabilities around it and the debt around it, if you can give us that? And this is more of a question around the total investments that you're doing in the core side of the portfolio. It's around a billion dollars this year in 2025. Do you think that trend of slowdown in terms of investments and capex around the core side starts to slow further in 26 and 27? Thank you. Sure.

Thank you. With regards to gas coal, we as an industry is collaborating and working very closely with a regulator in the setting up of gas coal and the implication to us as a GenCoil. But bear in mind the establishment of gas coal is not overnight. This notice that gas coal will be established was given to GenCoS nearly two years ago. So along the process, we have done the necessary to do what we can to defend our strong gas strategies. Assisting gas supply agreement will be grandfathered. I think that's a key. Then, like I said, ongoing implementation We will be supporting and working with the gas coal to make sure it is beneficial for GenCo and the sector. Net-net, I think it augurs well because this will put discipline in gas procurement and also avoid the volatility due to small volume buy from some of the gas off-taker coal. So I think this will be pretty good for us as a market player in total.

Thank you, Cindy.

Kevin? Hi, Mayang. I think your second question is about $13.5 billion. That's asset value that we have disclosed. I mean, recall in the past when we first disclosed it in the first half, it was $14.4 or $13.5. And you will naturally see this number coming down as we monetize. You know, your specific question is whether, you know, how much of this is debt liabilities associated with the non-core portion. We don't provide that state publicly. I mean, internally, that's a measure for us. But I think fair to say that, as you said before, the focus of monetization, it's so important for us because it allows us to do the three things that CEO has covered. A large part of it is paying down debt. So naturally you would sort of assume that a large part of our debt is captured under the loan cost of the portion. But we don't provide that split to the market.

Okay, we have one last question online, which I propose we take. This is from Derek Chang of Morgan Stanley Singapore. Derek has three questions. Okay, first question is, first two questions are on data centers. First question, on data centers, are the plans to involve Capital DC REIT in development opportunities? as some other sponsors have done. I think right now the answer is no.

I think because our unit holders actually like stable cash use, and I think to make sure that our unit holders are rewarded, I think we prefer to have a stabilised pool of assets to make sure that we give sustainable dividends back to our unit holders.

Okay. Second question is, can you also share when SGP9 will turn operational and likely right before divestment? Maybe operational?

So the plan is to start construction in 2026, end of 2026. Should be operational about 18 months from then.

okay so this this is currently held by a fund uh so the fund has a you know it's a closed-ended fund so at some point you will come up for divestment uh so uh at this point in time it's too early to say when okay uh third question does capital have a comfort level when it comes to ownership stake in capital reed is there further scope to reduce uh towards 20 perhaps Especially as you head towards your 60th anniversary in two years. Wow, very far ahead. Well, the truth is that I think we're very comfortable with the current ownership of stake that we have in KRE. So there are no current plans to further reduce that. And the 60th anniversary is two years, so we'll think about it. Okay, that's all the questions we have. Okay, great. Thank you all very much for your attention and thank you all those who are attending. Thank you for joining us today. Thank you.

Thank you, ladies and gentlemen. We have now come to the end of our conference. Thank you again for joining us today.