Robinsons Land Unsp/Adr

Ladies and gentlemen, good afternoon and thank you for joining us in our first quarter annualist briefing. Joining us today are President and CEO, Ms. Michael Orobri Aragon-Gobio, Secretary Vice President and General Manager for Malls and Destination Estate, Divisions, Mr. Faraday Ndigo, our Chief Financial Officer, Mr. Kirby Tang, and our Chief Strategist, Ramon Rivero and the rest of the IRT. Presenting us today is Mr. Kermit Tan and also Mr. Ramon Rivero. After the presentation, we will open the floor for a Q&A session. Before we proceed, I'd like to draw your attention to this disclaimer for a couple of seconds. We encourage you to review our discussion and refer to our official findings for more detailed information. Now, let's start the presentation. Mr. Currie, you may begin.

Robinson's Land remains committed to strengthening its diversified portfolio and broadening its nationwide footprint through developments that support sustainable growth and long-term value to Asia. Robin's plan delivered solid financial results and sustained its growth momentum in the first quarter of 2026. RLC's consolidated revenues rose 11% year-on-year to 12.28 billion pesos, supported by solid contributions from both the investment and development portfolios. Operating profitability remained healthy, with EBITDA increasing by 5% to 6.59 billion pesos. Growth was tempered by higher utility expenses due to a lower comparative cost base in the first quarter of 2025. The subsequent power rate adjustments were implemented in the second quarter of 2025. Core earnings momentum remained strong as net income expanded by 9% to 4.4 billion pesos. The faster growth versus even net was mainly driven by lower financing costs due to repayment of debt, and a reduced effective tax rate, following the additional batch of asset infusions into RCR in the third quarter of 2025. Meanwhile, net income attribute above the parent increased 2% to 3.54 billion pesos. The comparatively slower growth was primarily due to the higher minority ownership in RCR, which increased to 44.33% from 36.13%. following the block placement of RCR shares made in January 2026. Recall that last year's initial block placement was conducted in April of 2025. Turning to our balance sheet, total assets increased by 4% to P286 billion as of the end of the first quarter, meaning driven by higher cash balances from strong operating cash flows and proceeds from our block placement of RCR shares. Total liabilities rose modestly by 1% to P91.39 billion, primarily due to the time of payments related to ongoing projects and operating expenditures. Meanwhile, total equity strengthened by 6% to P194.99 billion, while parent equity increased by 5% to P184.91 billion, largely driven by the additional equity reserves recognized from the recent block placement. total interest-bearing debt remained steady at 39.55 billion pesos. Coupled with a higher cash position, this resulted in a further improvement in net debt equity to 9.64%, reinforcing the strength of RLC's balance sheet and conservative leverage profile. From a cash flow perspective, cash and cash equivalents increased to 21.72 billion pesos, mainly driven by its robust operating cash flow and complemented by a successful 7 billion peso block placement in January 2026. During the quarter, RLC deployed 3.25 billion pesos in capital expenditures to support ongoing developments and expansion initiatives, resulting in positive free cash flow of 4.47 billion pesos. Morales maintained its low debt level from year end 2025, with total debt at 39.7 billion pesos. The lower debt base was achieved through debt repayments made last year, which were supported by strong positive operating cash flows and additional liquidity generated from knock placement proceeds. Around 72% of the borrowings are fixed rate, providing stability against interest rate movements, while 28% are floating. The debt portfolio consists of 24 billion pesos in bonds and 15.7 billion pesos in long-term bank loans, with an effective interest rate of 5.7%, and weighted average maturity of 1.7 years. Overall, RLC continues to maintain a healthy and manageable debt profile, supported by strong cash generation and disciplined capital management. RLC delivered another strong quarter in the first quarter of 2026, building on its full-year momentum. Consolidated revenues reached 12.28 billion pesos, representing an 11% year-on-year increase driven by the strong performance of both our investment and development portfolios. Event lab grew by 5% to 6.59 billion pesos, with growth moderating relative to revenues mainly due to higher utility costs, following power rate adjustments implemented subsequent to the prior period, which resulted in a lower utility cost increase in the first quarter of 2025. E-mits grew by 4%, with growth tempered by higher depreciation charges arising from newly operating assets. These are namely Pagalian Mall, GDF Tower 2, and Iladilo Tower 3 offices, New Star Hotel Cebu, and the newly completed warehouses in Talamba and San Fernando. Meanwhile, net income increased by 9% to 4.4 billion pesos, unfacing even the growth mainly due to lower interest expense and a lower effective income tax rate following the infusion of additional assets into RCR during the third quarter of 2025. Net income attributes of the parent grew by 2% to 3.54 billion pesos. The more modest increase was mainly due to higher minority interest in RCR according to 4.33% this year versus 36.13% last year, following the successful 7 billion pesos worth of block placements of our RCR stake in January of 2026. Compared to the previous quarter, revenues declined due to the seasonally stronger holiday-driven performance in the fourth quarter. Despite the softer top nine, event-line even only decreased marginally, reflecting the efficiency of the company's operating performance. Meanwhile, net income attributable to parents increased by 7% quarter-on-quarter, mainly driven by lower interest expense and lower effective income tax rates following the previously mentioned asset infusion to RCR. RLC's portfolio remains strategically uncomfort on its investment portfolio, which continues to be the company's primary driver of revenues and earnings. For the first quarter, The investment portfolio contributed 75% of consolidated revenues and accounted for 85% and 81% of consolidated EBITDA and EBIT respectively. The mall's division remained the largest contributor within the investment portfolio. Mall revenues increased mainly due to rental escalations across existing properties, resulting in the same mall rental growth of 4% year-on-year, alongside contributions from newly opened pavilion malls, and higher amusement revenues, even if the growth was moderated by higher power rates, while even growth was further tempered by additional depreciation of the new one. Meanwhile, the development portfolio accounted for the remaining 25% of consolidated revenue and contributed 15% and 19% of consolidated EBITDA and EBIT, respectively driven by the group's organic residential product. Residential revenues increased mainly as more contracts from prior years reached the existing threshold, coupled with higher percentage of completion recognition from ongoing projects. An EBIT grew at a faster pace than revenues due to lower marketing and advertising expenses, sustaining a positive momentum for the development portfolio. A more detailed discussion of each business unit's performance will be presented in the succeeding slides. In January 2026, Robinson's Land successfully completed its fifth block placement of shares in RCR, selling approximately 946 million RCR common shares through an overnight accelerated block placement at 7.40 centavos per share, generating gross proceeds of 7 billion pesos. The transaction was well received by the market and increased RCR's public flow to 44.18%. further improving trading liquidity and broadening the investor base. While proceeds from the placement were used to strengthen RSS's liquidity position and support debt reduction. Overall, the transaction demonstrates RSS's continued ability to unlock value from its investment portfolio through disciplined tactical recycling initiatives. RCR was recently included in the recent Philippine Stock Exchange Index, or PSEI, becoming one of its newest constituent effects in February of 2026. In addition to the PSEI, RCI is also included in several major indices, such as the PSE Dividend Yield Index, MSEI, FTSE, Russell, which enables its visibility among global institutional investors. Overall, this milestone reflects the convenient growth, liquidity, and market relevance of RCR. further strengthened its position in the Philippine capital markets. RCR continues to play an increasingly significant role in RLC's consolidated financial performance, supported by its expanding portfolio and growing recurring income base. During the quarter, RCR generated 3.32 billion pesos in revenues, accounting for 27% of RLC's consolidated revenues. It did then increase by 40% year-on-year, to 2.75 billion pesos, while net income rose by 34% to 2.37 billion pesos, mainly driven by the infusion of nine malls heated last year, which further expanded RCR's income-generating capacity. Net of minority interest, RCR contributed approximately 51% of RLC's net income attributable to Peren, highlighting its growing importance within the group's earnings mix. The dividends per share increased by 6% year-on-year, reflecting RCR's continued ability to deliver stable and growing shareholder returns. As of the first quarter of 2026, RCR's portfolio comprises of 38 premium assets with 17 office properties and 21 malls, strategically located across 25 unique locations nationwide with a gross usable area of 1.15 million square meters. Portfolio occupancy remains strong at 96%, while weighted average lease expiry stands at 4.03 years. In terms of tenant mix, retail tenants account for 47%, EPOs at 46%, with a balance coming from traditional offices and CPs, reflecting a well-diversified and resilient tenant base. Overall, RCR continues to be a vital contributor to RLC's recurring income and serves as a strategic platform for future asset monetization and capital recycling. I now turn you over to Mr. Ramon Rivero for the operational highlights for our business unit.

Thank you, Mr. Kerwin Tan, and good afternoon to everyone in the call. Moving forward to our business unit's performance, for the first quarter of 2026, our mall's business delivered strong results. Revenues increased by 7% to 5.06 billion pesos, primarily driven by 5% growth in rental revenues to 3.73 billion pesos, with same mall rental revenue growth at 4%, coupled with sustained improvement in foot traffic across our portfolio. Profitability also strengthened. EBITDA rose to 3.08 billion pesos, while EBIT reached 2.17 billion pesos, representing 3% and 2% growth respectively. Operationally, we maintained a 94% occupancy rate ahead of the industry average of 92.3%. Today, Robinson Smalls spans approximately 1.7 million square meters of feasible space, reflecting continued tenant confidence and the resilience of consumer activity across our markets. Beyond retail, our office portfolio continues to provide another strong pillar of recurring income, supported by stable demand from the BPO sector and our focus on well-located office developments. Our Robinson's offices segment also delivered solid performance. First quarter revenues increased by 8% to 2.17 billion pesos, primarily from the contributions of newly operational offices in Bridgetown, GDF Tower 2, and Iloilo Tower 3, as well as the completion of additional work table centers in GDF Tower 1 and Robinson Summit Center. However, growth in EBITDA and EBIT was partially tempered by higher repairs and maintenance and increased power rates, with EBITDA at 1.71 billion pesos and EBIT at 1.40 billion pesos, both growing 6%. Occupancy in our same office spaces improved by 100 basis points to 86%, continuing to outperform industry levels, supported by new tenant take-ups. The VTO sector remains our anchor, accounting for 82% of total occupancy, while our weighted average lease expiring of 4.13 years continues to provide strong visibility and stability for our recurring income. Complementing our commercial portfolio, our hospitality segment continues to benefit from the recovery in travel and tourism, with improving occupancy and stronger guest volumes across our brands. For Robinson's Hotels and Resorts, our first quarter performance was particularly strong, with revenues reaching 1.72 billion pesos, up 14% year-on-year. Growth was mainly driven by improved operations of Philly Urban Resort and the Westin Manila, alongside contributions from the newly opened NuStar Hotel Cebu. Operationally, system-wide remit flagged year-on-year at 66%, reflecting steady demand and stable tourist arrivals for the first quarter of the year. Profitability also improved. with EBITDA rising 10% to P537 million and EBITDA increasing 6% to P294 million, supported by better operating leverage as demand continued to recover. And importantly, around 74% of total revenues now come from our international brands, luxury hotels, and our own brand Philly and Nuscar. reflecting our strategic shift towards higher-yield hospitality assets. With our investment portfolio, we continue to strengthen our logistics and industrial platform, which played an increasingly important role in supporting the country's growing supply chain and e-commerce ecosystem. For our logistics and industrial facilities, we continue to see steady progress. For the first quarter, revenues reached P269 million, reflecting sustained demand for well-located logistics assets. Operationally, the segment delivered strong results with EBIT at P250 million and EBIT at P194 million, underscoring the efficiency and resilience of our logistics platform. As of year end, we operate 15 industrial facilities located across key strategic logistics hubs, maintaining an 84% occupancy rate, which reflects the continued expansion of logistics and supply chain activity in the country. Moving on toward development portfolio, for the first quarter of 2026, we generated 3.74 billion pesos in net sales from both organic and joint venture projects, reflecting a 319% year-on-year increase. Realized residential revenues strengthened in the first quarter, increasing 39% year-on-year to 2.72 billion pesos, driven by revenue recognition from prior year sales that reached the equity threshold, coupled with a higher percentage of completion recognition from ongoing projects. Profitability also substantially improved due to lower marketing and advertising expenses. EBIT rose 55% to 754 million pesos, while EBIT increased 58% to 715 million pesos, reflecting stronger operating leverage as revenue recognition accelerated. Additionally, equity earnings from joint ventures contributed 181 million pesos, reinforcing the diversification of our earning space. For destination estates, we generated 161 million pesos in property development revenues, mainly from deferred land sales to our joint ventures, reflecting the steady monetization of our development pipeline. EVIT reached 82 million pesos, while EVIT stood at 72 million pesos, demonstrating consistent performance from our estate development activities. During the first quarter, we spent 3.25 billion pesos in capital expenditures align with our strategic development pipeline across malls, hotels, offices, logistics facilities, land banking, and residential projects. This disciplined investment approach supports long-term growth and portfolio diversification. For future plans, We are on track to significantly expand our portfolio through 2030 under our Vision 52550, with malls reaching 2.4 million gross feasible area, offices growing by over 50% to 1.28 million GLA, and logistics more than doubling to 600,000 gross feasible area. Our hotel portfolio will likewise grow, with room capacity increasing by 35% to 5,681 keys. Per calendar year 2025, Robinsons Land is declaring its highest dividend per share at 1 peso per share. reflecting the company's continued strong earnings performance and commitment to shareholder returns. This brings our dividend payout ratio to 36%, likewise the highest on record and well above our stated policy of maintaining at least 20% of recurring net income. This milestone reflects the company's strong earnings performance disciplined capital management, and commitment to delivering consistent shareholder returns. As we conclude, we recognize that we continue to operate in an environment shaped by global uncertainties, including geopolitical tensions and energy-related pressures. However, this is not unfamiliar territory for us. We have navigated multiple cycles in the past and resilience remains deeply embedded in our organization. We move forward with discipline and focus, confident in our ability to navigate volatility while continuing to deliver sustainable long-term value. This ends our presentation and we are now open for your questions. Thank you.

Some housekeeping rules for the question and answer session. Ask a question, please either raise your hand or put it in the Q&A box. When your name is called upon, you can start your question. Our first question comes from Francis. Francis Paul from BPI. Thanks, Ron.

Thanks, Ron. Good afternoon, everyone. First of all, I would like to check if I'm audible.

Yes, we can hear you, Francis.

Thank you. So I have three questions. So my first question is about RCR. For the first quarter, any color on the rental rate reversal for renewed office and mall leasing?

It's flat for the offices. And for the malls, it's actually higher.

Thank you for that. For my next question, for RLC, take-up grew threefold, led by the joint venture pre-sales, if I'm not mistaken. I'm just curious now, can you provide more color on what happened in the pre-sales during the first quarter and what RLC did differently during this period, this time around, to achieve this growth compared to the previous period? particularly on the joint ventures?

Hi, this is Mayabel. For the joint ventures, it's really mirroring marketing initiatives that our organic sales force has been implementing, and this has proven to be very successful. Notably, we prefer to roll out packages that are terms-based rather than going for deeper discounting. So that has proven to be likewise successful for the joint ventures. For our organic projects, our focus is really on clearing our RFO inventory. In the previous quarter, we were able to clear out much of it, and As we completed two more projects, we are adding to the ARCO inventory, so that will remain to be our focus as we clear that out also in the succeeding quarters.

Thanks, Ma'am Maibel. Just a follow-up on the joint venture number. Can you provide color or, if ever, any information, which projects contributed mostly to this, to the joint venture number?

So, two key projects that contributed to this were, number one is Aurelia in BGC, that's our joint venture with Shangri-La, and also the Delaris in Bridgetown, which is our joint venture with Hong Kong Land. So, there was a bigger push for the sellout as both are, well, So earlier, we started to turn over, so we saw increased selling of remaining units, and the same is true for Valeris as we are nearing completion.

Thank you so much for that, caller. For my last question, I guess this is more on the Robinson Smalls. As we know, of course, there's lingering macro pressures, which is which might affect the sentiments on the malls. So on mall footfall, can you provide any indicators? Are there any indicators that you could provide for the month of March and April regarding mall footfall and tenant sentiments?

For mall footfall, what I have is for the first quarter and for April. For the first quarter, we're up same malls at 5%. were up versus last year. And March would be about 5% as well. But for the month of April, we see it sustained basically. It's sustained levels. For football. For football.

And the other was on... I think it's also the reduction in the off-season.

Sorry. For 10th and 10th.

For 10th and 10th, it's Dina from Robinson's College. The affected ones are their lengthy stores. But for malls, since it's because of the high temperature summer, it's working for us. Yeah, it's working for the malls.

Okay, Francis. Thank you, sir. Okay. Next question will be coming from Jalene Garza of JP Morgan. Jalene, you may ask the question.

Hello. Good afternoon. Thank you for acknowledging Ray's hand. My first question is actually a follow-up on the JV pre-sales. Can you give us some idea whether or not you've seen this similar strength going into second quarter? And what is your outlook with regards to the impact of Middle East conflict with your premium JV projects? And if you have the data, can you also please share the unsold inventory level for the JV projects alone? Thank you.

So, Julie, hi. So, we see the performance of the GEDs to be sustained at least for April and early part of May. With the Middle East conflict, it might soften, but it's too early to really say what it will be or how it will unfold for the GEDs. We have combined all of our GEDs inventory of 11.2 billion.

Okay, got it. Thank you, Ms. Meibel. My second question is on the power cost. It was discussed earlier that that's been the driver of slower EBITDA growth for both balls and offices. Can you give us an idea about how this will be tackled going forward? Do you have intention to implement changes in common area charges, or how should we think about the higher cost? coverage of renewable usage for RLC compared to peers? Any guidance on that margin trajectory for both office and malls?

Yeah. Well, for our power cost, we are under retail electricity supply, so we contract directly with power producers. We have some expiries coming in this June. So by July, we expect power rates to actually be even better. So from a certain rate, we have a reduction in power rates by about 10% around July. It should be felt in July. And then, of course, we have our solar panels as well in our roofs. I think currently we're about 30, over 36 megawatts already combined. For the walls alone, yeah. And yeah, we have also energy conservation efforts that are ongoing for different properties. Then James Harco will answer for the office. James?

Yeah. Hi, Julian. Good afternoon. James from offices. So for offices, we're actually ongoing study of the increase of common area utility rates. I'm seeing an average of a 5% increase. And in terms of energy, we're actually most of our Metro Manila offices are ready on 100% renewable energy. So we're contracted up to 2030. So that move has kind of made us stable in our electricity costs. So we just need to work on the provincial buildings right now.

Thank you, James.

So all considered, can you say that there could be some expansion or recovery in margins? in the leasing, both malls and offices, given potential change in cost of charges for office and then recontracting of RES supply at malls?

Yes, there should be some improvement of the cost with regards to that, yes.

Okay, understood. Thank you. My last question is on the dividend payout. It's been the record high at 56%. Is management in a position to guide us? What to expect for 2027? And if there will be any changes on the frequency of declaration? Thank you.

Thanks, Jeline. This is an offshoot of our positive free cash flow, complemented by successful dock placements that we've done last year. But with the rate the performance is going, we think this can be sustained going forward.

How about your appetite for further expansion and transition from annual declaration to maybe semi-annual or quarterly?

We're open to it. But as of the moment, we are initially declaring just one task per share activity.

Thank you.

Thank you, Julie. Next question on the raise hand will be coming from Clark C., Apprentice Partners. Clark?

Good afternoon. I'd just like to ask first if you can hear me.

Yes, Clark, we can hear you.

Thank you. So, I'll ask some questions which are sort of follow-ups from the items already asked by Julie and Francis Paul. So, For the JD residential business, let me just confirm, you mentioned earlier you instituted some packages and these are really changes to the payment scheme rather than discounting. Did I hear correctly? Right. Right. Okay. And could you give us an idea of what this change is? What is the change in payment scheme?

It's a combination, Carl, of lower down payments and some extensions on the payment amortizations.

I understand. Sorry, I didn't hear that part. Could you repeat that?

We are opting to protect margins rather than giving out deeper discounts in order to remove the inventory.

Thank you. Now, also you mentioned that Aurelia contributed a good amount, I guess, in the first quarter on reservation sales. Now, let me confirm if these, let's say for the sales you made of Aurelia in the first quarter, did they already contribute to earnings in the first quarter? Because it's a completed project, right?

Yes, it did contribute to revenue.

Already contributed. Got it. On the mall business this time, you would mention that say mall revenue or rental revenue growth was 4%. From what I recall, this was roughly 7% last year. So it looks actually like a slower number to me relative to last year. Again, 7% or 8% is a good number. Could you discuss what happened? You know, why it might be slower, or at least, is it just a high base effect?

Yes, high base effect.

Okay. With respect to the utilities this time, let me ask a couple of things. It was mentioned during the previous briefing that 80 plus percent of the utility requirements of the company, if it's a leasing business, was already locked in until, I think, end 2027. Is that still the case now?

It varies, but we have certain contracts that give us opt-out options if we find a better rate in the middle of the contract. So one of them has a June 2026 opt-out option, which allows us to get a better supplier rate. But a large chunk is as well locked in. As mentioned earlier, for offices, we have a renewable energy until 2030. Let's track it.

I understand. So, actually, it's because you actually have options to opt out in case you can find a better deal. Okay, that's right. And you are saying that right now, it looks like there are available better deals. And I ask because I would imagine the Iran conflict has caused fuel prices to go up. But you're saying that there are good deals in the market.

Yes, I think the increase is mainly on the oil, but I think the coal and renewable energy and other sources are actually not as affected.

Understand. And actually on the Middle East, the conflict in the Middle East, have you seen, it sounds so far as if you haven't noticed any impact, but please correct me if I'm wrong there. So I would be interested if you've noticed any impact on your operations and looking ahead, do you plan to make any adjustments to your plans?

So April, we see it, So, it's the latest last year. So, it's about that big thing for April.

And again, looking ahead for any of the segments or the company overall, are there plans to make adjustments on anything?

I think amongst the business units, possibly what would be most impacted on would be the residential segment. So that's why we intend to continue with the focus on targeting the end users because we anticipate that the speculative investments might be affected by this Middle East conflict as Filipinos or locally there's a wait and see on higher investments, higher value investments. Otherwise, for the malls, we see for now, for April, it's a flat performance offices. We already locked in our contracts. Hotels, we're actually benefiting from both of the recent ASEAN and then also Balikatan. So our hotel is doing very well, and we're seeing increased contribution from our F&B. And then, also for, back to the whole, really, as the dollar, as the peso is depreciating, it actually benefits us in a number of ways. The OSW remittances are sustained, so as it trickles down to consumption, It also helps the mall in a significant way. And as corporate offices in other countries try to pursue cost savings, then it also benefits our office business.

Okay. I'll ask about construction, if I may. If, you know, the prices of raw materials have gone up, if you're experiencing supply chain issues, is there any slowdown in construction?

Yeah. So I think that also I'm reading the chat box. There's also a similar question, so I'll answer both your question and the one of Lucy's. First is contractors initiated the negotiation of contractors. There have been a couple of contractors who have signified the plan to adjust their costs or their prices, but nothing has really been pursued. It's more like an advanced communication to us. Having said that, as we have some contract packages, we were pleasantly surprised to find that some of the previously quoted prices had gone down. And I think this is an offshoot of the general slowdown of other developers. So from a supply-demand framework, if the demand is less, then of course the contractors and suppliers would now have less power to price up their goods and services. What was the other question? So, yeah. So, I think I answered them. Some notes go down on our part, and we've been... Sorry, you were also asking about the... The other prices, so for cement, which is an owner-supplied material for us, we have been able to lock in the prices until the end of the year. The other supply inputs, like rebar and aluminum, we've seen increases as well. However, because of our discipline in budgeting for contingencies and also our ability to leverage our pricing power, given the scale of our construction requirements, we have been able to cover those incremental costs.

I understand. Thank you. Those are all of my questions. Okay, moving on to another form of question from the Q&A. First one from Nikki Pranko. First question, is the 36% free out ratio answered? Number two, a residential project answered also. So Pranko, we've answered both first and second question. And then another question from Renz of CSEC. Number three, other than the payout ratio hike, any other corporate value? For RCR, sorry, when is the next planned asset infusion and any details as to size and properties involved?

For RCR, the next planned asset infusion will probably be announced in the next three months. So this is more likely to be most and we probably would do more infusions, more than one infusion this year. This all depends on market conditions as well.

Okay. And then again for RANS, what specific project through GP does the National Sales take up? Answer it already. Answer it. Okay, that's okay. How about number two? Could you provide more call to our investor appetite for RCR shares as we win the $7 billion?

Well, the RCR shares at 55%, right? So this provides ample room for subsequent infusions and should drive investor appetite to be higher. Yeah.

And then one more question from Amanda Nye. Hi, how does management think around balance sheet management? Example, allocation operating cash flow, debt versus equity to fund, Apex. What gearing levels are optimal?

Yes, our gearing, we have a healthy balance sheet right now. And as mentioned earlier, we have a, 21 billion pesos in cash reserves, right? So we feel it prudent in terms of capital allocation is that in the meantime, when we are waiting for projects to be built to us or capital spending has to be made, we find it prudent to pay off debt first. But if there's a need where there are available avenues for us to allocate capital accordingly.

on injecting asset into RCR again from Mandalay?

Well, at the end of the day, it's, the yields is basically, is a function of interest rates, right? So, currently, we still find the yields to be attractive for RCR, and we will still continue pursuing injecting more assets into RCR. As I mentioned earlier, the injection of assets into RCR benefits us in two ways. We are able to crystallize the value of RLC by monetizing these assets. And secondly, because of the REIT framework, we are able to obtain tax incentives, which will thereby increase our bottom line for RLC.

Thank you, Mr. Kerwin. Again, if you have questions, please use the raise hand. or the Q&A box. If there's none, if there's no more further questions, I will now hand you over to Maybel to give her closing remarks.

Good afternoon again. Thank you for joining us today. While we spent this call reviewing our recent financial metrics, I think that these results are unique, best appreciated when viewed as the outcome of a strategic foundation that we obtained years ago. Our performance this quarter is a clear validation of the soundness of the foresight and intentionality that we've established at TEMS. We made the deliberate strategic decision early on to pivot our portfolio toward higher early income and the disciplined accumulation of deep cash returns. Today, the foresight of that move is evident. Our cash position has reached an all-time high, establishing a risk management strategy. This early pivot was further strengthened and crystallized to our Vision 52550. By adhering to this mission, we have gained the flexibility to navigate market volatility, the conviction to deliver on our commitments, and the confidence to pursue emerging opportunities. Our aggressive capital recycling strategy continues to optimize our balance sheet, enhancing profitability through RTR, and further blocking the intrinsic value of our company. Most importantly, the sustained financial strength has allowed us to deliver a milestone in shareholder returns, a 1% per share dividend distribution, the first in RLT's history. Our investment portfolio continues to deliver resilient recurring income, supported by rental escalations, strong tenant performance, and operational efficiencies across our malls, offices, hotels, and logistics facilities. This stability is a direct result of our long-term commitment to high-quality recurring revenue streams. Simultaneously, our development portfolio is gaining momentum as more projects reach completion and revenue recognition stages. We remain focused on strategies that strengthen the sustainability and profitability of this segment, ensuring it complements our broader investment goals. Amid current global uncertainties, RLT remains steadfast. Our ability to sustain earnings momentum is not a matter of chance, but the results of a diversified portfolio, disciplined financial management, and a long-term operating approach that we have refined over the decades. Headwinds and market disruptions are not new to us. We have successfully navigated multiple economic cycles through prudent decision-making and a strong focus on sustainability and resilience. The disruptions we see today simply allow us to activate the risk mitigation measures while also presenting opportunities that we are well-positioned to capitalize on. This is an approach that continues to shape how we manage the business today. With a strong balance sheet, healthy liquidity, and stable cash flows, RLC is well-possessed to continue delivering sustainable long-term value for our shareholders. Thank you for your continued trust and participation.

Thank you, Ms. Michael, and thank you, everyone, for your participation. You may now all disconnect.