Link Rl Est Invt Tr Uts

On the stage, we have our Chair of the Board, Mr. Duncan Owen, Executive Director and Chief Financial Officer, Mr. Ko Shung Un, Executive Director and Chief Investment Officer, Mr. John Saunders. So on the screen, you may find today's agenda. And without further ado, let me hand the floor over to Duncan to give an overview of our results.

Thank you. Thank you, Christy. Good afternoon, everyone. Whether you're in the room at our offices in the Quayside here or watching via the webcast, thank you for taking the time to join this session. We're here to report the full year end results for LINC REIT 2025, year ending 2026. But before we cover the details of our results, I'd like to just start speaking on behalf of the board and management to say that we've been listening carefully, reflecting on the views of our unit holders and other important stakeholders. Our response during the final months of 2025-26 and going into the new financial year has been to go back to basics, focusing on our key competitive advantages as owners and operators of retail malls and car parks in APAC. What that means is focusing on our core assets and our core skills. This is why in January's announcement we confirmed that no less than 80% of Link's balance sheet capital would be invested in core competency and currently we indeed have over 90% of our assets in this core area. Whilst we will continue with partnerships, principally for value add opportunities with higher returns, these activities should not ever be more than 20% of the balance sheet and they will normally be a lot lower. Our immediate focus is therefore now on reinvigorating the existing core portfolio, divesting non-core assets, which means the sale of mainly offices and warehousing, and buying back shares where pricing is attractive for unit holder returns. Back to Basics is also about streamlining our management structure and adopting a more disciplined approach to capital allocation. Turning to the headline numbers for our full year results ending 2026, the overall net property income is down 3.7% year on year, due primarily to negative reversions in our Hong Kong and Chinese mainland portfolios. Our distributional amount per unit reduced by 6.4% to HK$6.5 billion with a final dividend of HK$2.54 per unit. In anticipation of the negative reversions in the core retail business, we have undertaken significant cost optimisation which KS will update you on in some detail further. It's worth noting that there are encouraging signs that the wider retail sector in Hong Kong is now recovering in consumer confidence and investor interest returns. Whilst we're seeing rental levels begin to stabilise, negative rental reversions however will persist at around the same level during the year that we're in now ending 27 as compared to the year end we're reporting on now in 26. This is because the renewals in the current financial year will normally be for leases which were commenced approximately three years ago at higher rental levels due to post COVID optimism at that time. Our cost optimisation efforts will help partially offset the impact of these negative versions on earnings and distributions. We also remain watchful and prepared for continued growth in e-commerce. We've taken steps to reposition our offering and capture revenues where possible from the changing environment and John will speak later about these initiatives. It remains to be seen how deeply e-commerce will penetrate Hong Kong, given the relatively compact nature of the city's communities and the convenience of our mouths. The ultimate level of penetration that e-commerce achieves may not reach the same heights as whoever has seen in other Western economies. Having said that, it is a threat that we are taking very seriously. It remains just for me to say in the mid to long term, we are confident and passionate about the outlook for Link. We enjoy exposures to Asia's growing consumer markets and remain a high-quality operating business with a strong balance sheet, an increasingly clear strategy, high levels of corporate governance, and capacity to attract high-quality international investors. Thank you for your continued support. I'll now hand over to KS and John to run through our results in some detail.

Thank you, Chair. Good afternoon, everyone. Great to have you with us today. As Duncan has mentioned, we have been managing the challenges in Hong Kong and the Chinese mainland retail markets. Overall, NPI was down year on year, mainly due to negative reversions in our core Hong Kong and Chinese mainland retail portfolios, amid continued competition from e-commerce, payment wage increases, and weak consumer sentiment amid macro volatility. Kapak income remained broadly stable, with tariff growth from initiatives such as dynamic pricing offset by a decline in ticket volumes. Our international retail portfolio saw positive rental reversion and continued strong momentum. While we are seeing market rents are beginning to stabilise, negative retail reversions in the Hong Kong retail portfolio are expected to continue into 2026-27 at levels similar to 2025-26. On the cost side, we surpassed the original annualized savings target of HK$200 million in the second half of 2015-2016, with the benefits flowing directly to the bottom line to support GPU. We will enjoy the full-year benefits in the year ahead as we move forward with a cost base that better fits our expected revenues. On the portfolio side, we are staying disciplined, actively managing our assets and recycling non-core assets. Our recent divestment of the swing-buy at Thompson Plaza stick, which we agreed to sell at a premium of S$250 million, underscores our commitment to optimise our portfolio. John will talk more about this. Looking ahead, our priority is to stabilise earnings over 2627. I should note, however, that external factors such as the evolving US-Iran situation could influence the outlook. Rest assured, our team is monitoring developments closely. With that context in mind, let me walk you through the key figures. MPI was down by 3.7% year-on-year due to negative reversion in our core Hong Kong and Chinese mainland retail portfolios. To mitigate this impact, we reduced staff and GAN costs by 14.5% year-on-year through a broad-based organizational streamlining. As a result, we managed to limit DPU decline to just 6.9%, with a final distribution of HK$2.54 per unit. Total portfolio valuation is to HK$216 billion, reflecting lower rental assumptions in certain markets which we will elaborate on later. We continue to maintain a robust capital position amid the challenging and volatile macro outlook, through disciplined capital management, Effective interest cost control and maintaining an optimal fixed rate hedge ratio. This enabled us to lower our average all-in borrowing cost to 3.4%. Overall, our financial position is robust with net gearing at 23.9%. Now, moving on into more detail on key operational and financial highlights. We retain high occupancy levels in our retail portfolio. In Singapore and Australia, we achieved near full occupancy and double-digit positive rental reversions during the period. Meanwhile, the office and logistics portfolio remained steady, supported by high occupancy and leasing demand amid competitive supply. We have benefited from a lower highball locally and have prudently managed our interest rate exposures, with expectations of diverging monetary policies across APEC. Asset valuations continue to diverge across markets, reflecting lower market rents in Hong Kong and Chinese mainland, while holding up better in Singapore and Australia. I'll now turn to the portfolio breakdown. As of March 2026, total valuation of the LR portfolio stood at HK$216 billion, down about 4% year-on-year. Core retail and kapak assets continue to form the backbone of the portfolio, accounting for 90.4%, with the remaining 9.6% comprising other assets including offices and logistics. Geographically, Hong Kong and the Chinese mainland retail remain the key markets, representing around 82% of the portfolio value, while international retail assets in Australia and Singapore make up around 8%. Looking more closely at valuation adjustments, movements were mixed across the portfolio. Non-retail assets generally recorded more significant declines, while international retail assets saw valuation gains, particularly in Singapore and Australia. Ongoing weakness in rental performance across Hong Kong and the Chinese mainland has weighed on valuations, while stronger rental trends in international markets have supported valuation stability in local currency terms. We expect valuations to continue to normalize over the coming months, given their lagging nature relative to underlying performance and market conditions, with changes reflecting the prevailing operating environment. Our capital position remains robust, supported by disciplined capital management, effective interest cost control, and a high fixed rate hedge ratio. As of end March, net gearing remained at a healthy 23.9%, while average borrowing cost improved to 3.4% through proactive interest rate and financing arrangement. During the year, we refinanced around HK$25 billion at very competitive rates at unprecedented credit margins, including the pricing of US$600 million senior unsecured notes at a coupon rate of 4.875% in February. This extends LinkGrid's debt maturity profile and further diversifying our funding sources. Our fixed debt rate ratio is within the prudent range of 50-70% at 60%, reflecting our continued careful management of interest rate exposure and heightened uncertainty over future rate movements. Over the past 12 months, total debt increased slightly from $53.5 billion to $56.7 billion, partly due to currency translation effects. Our debt maturity profiles remain healthy, with the average standard lengthened to 3.5 years, and well staggered over the next 12 years. Strong A-range ratings across all three agencies support favourable funding terms and future financing flexibility. With that, I'll now hand over to John for the portfolio highlights. Thank you all.