CapitaLand Investment Limited

Hi, good morning. Thank you for joining us today. I'm Alison, happy to host you for CICT's full year results briefing. Sorry, apologies about the minor delay. We are very excited to have you with us today, whether you are with us in person or tuning in from your desk. So as per usual, today we'll start off with a presentation by our CEO, Chun Xiang, who will walk us through his key highlights. After that, we'll move on to the Q&A, where the management team will join us onto the stage to address your questions. So if there are some good ones, please save them for later. We'll try to get to as many as we can. And with that, I'd like to invite Chun Xiang onto the stage.

Hi, good morning, everyone. Thank you for joining us today. So we just announced our results this morning. Quite happy with the overall outcome of how last year went. A lot of things to go through today. So bear with us. I will spend just maybe about 10, 15 minutes just walking through the highlights. And then we can move on to Q&A, as Alison has mentioned. Okay, so first on the numbers, I think CICT delivered a very strong performance for the year, FY2025. Full year MPI, we grew by about 3.1% year-on-year to $1189.7 million. Second half MPI grew at a faster pace at 6.8% year-on-year to about $610 million. The strong growth was due to quite a few factors across the board. Strong asset performance across the portfolio and the step-up acquisition of the 100% interest in Capital Spring, which was completed on 26 August last year. Full-year distributable income rose 14.4% year-on-year, while second-half distributable income expanded 16.4%. Unit holders will be pleased to know that CICT's full-year DPU increased 6.4% year-on-year to $11.58. despite an enlarged unit base from the private placement in August last year. This was supported by a very strong second half, which provided uplift with a 9.4% year-on-year growth in DPU to $0.596. On the capital management front, we have been proactive, putting CICT in a very favourable position in terms of cost of funding. At the end of 2025, our aggregate leverage has improved to 38.6%, down 0.6 percentage points from 30 September, giving us greater financial flexibility. Our average cost of debt has declined to 3.2% from 3.3% three months ago. Versus the end of 2024, we are down by about 0.4 percentage points from 3.6%. This was supported by the easing industry environment and our refinancing efforts. Our current portfolio property value is at $27.4 billion, an increase of 5.2%. Operationally, our portfolio remains strong. Overall occupancy 96.9%, will 3.0 years. Rent reversions for both retail and office 6.6%, tenant sales per square foot up by 14.9% year on year, largely due to the inclusion of ION. Shopper traffic up 20.5% year-on-year. Excluding ION, tenant sales per square foot would have grown by about 1.2% year-on-year, while shopper traffic will be up 4.6%. The momentum was stronger in the second half, with tenant sales rising 1.9% year-on-year, excluding ION Orchard. In 2025 and year-to-date January 2026, we continue to execute our value creation strategy across acquisitions, divestments, AEIs and even development. These have strengthened the quality of our portfolio, enhanced income resilience and positioned CICT for sustainable long-term growth. I will cover more on the newly announced initiatives in the next few slides. In January 2026, we announced the divestment of Bukit Panjang Plaza for $428 million. The price is a 10% premium to the latest valuation and a 165% uplift over our purchase price in 2007. The exit yield was around mid-4% level. If we were to complete the divestment in end 2026, gearing would have fallen 1% to 37.6%. We expect to complete this divestment by the first quarter of this year. We will be embarking on the development project this year. We want the Hougang Central site through a joint bid which includes capital land development. This is the first major GLS site in the Pusin since 2019. We will own and develop the commercial component. The site is in a prime location, served by the existing North East Line and the upcoming Cross Island Line, and will be seamlessly integrated with a new bus interchange. Surrounding the site, there are established amenities, including schools, sports centre, community club and parks. We see this as a compelling opportunity to address the underserved demand in the precinct and to curate a retail environment that meets the needs of both residents and commuters. The total development cost for this project is about $1.1 billion, which translates to approximately $3,600 per square foot. and I expected yield on cost of over 5%. This compares very well with the recent retail transactions at the low to mid 4% level. And this will be a brand new mall built to our specifications. Taking into account inflation, the site's prime location, and the integration with the two MRT lines and the bus interchange, we believe the total development cost is reasonable for a high quality brand new mall. For reference, the capital value for our Bedok Mall is about 3,700 PSF, while some of the recent market transactions were done at above 4,000 PSF. We will be financing the development through both internal funds and external borrowings. Target completion is expected to be in four to five years. The development is strategically important for a few reasons. Firstly, it increases our exposure to Singapore, which remains our core market and a key source of stable long-term income. Secondly, the site is in a prime location in the heart of Hougang, with excellent connectivity, as I have articulated earlier, and a large residential catchment. Thirdly, this is a rare opportunity as well located suburban malls and transport nodes in Singapore are tightly held and rarely available. Through this development, we can establish a strategic foothold in the Northeast region and expand our retail footprint in Singapore. The development sits within a strong population catchment, one of the top highest in Singapore. There is also likely spillover demand from neighbouring towns like Covent, Punggol, Sengkang and Serangoon. Our JV partners will further expand this catchment by introducing 830 residential units to the mixed-use development. Hougang has only 2.8 square foot of private retail space per capital, far below the national average of 11.4. This presents an untapped potential, supporting the development's long-term prospects. Next, moving on to AEIs. This year, we'll be starting a new AEI at Capital Tower. Essentially, what we are doing is basically reposition our Level 9, which is this floor. some of the amenity space into a community space and create a higher yielding F&B space at the ground floor of the urban plaza. On level 1, we'll be introducing a two-story multi-tenanted pavilion with F&B offerings. On level 9, the space will be reconfigured to become the first workplace mental wellness centre in the CBD. The AEI works will be from third quarter 2026 to the fourth quarter 2027. An update on our ongoing AEIs. Galileo has completed a progressive handover of Phase 1, the office tower, to ECB. The target handover of Phase 2 is expected by this quarter. AEIs at Tampines Mall and Lot 1 and Raffles City are progressing well. On valuations, the key assumptions remain largely unchanged and cap rates remain fairly stable. Our portfolio property value grew 5.2% to $27.4 billion, largely driven by the step-up acquisition of Capital Spring and the strength of our Singapore portfolio. Germany's valuation went up after factoring in Galileo's AEI. I'll conclude my presentation here. Happy to take your questions after this. Thank you.

Thank you, Chun Xiang. Can we invite the management team onto the stage? Okay, now we have come to the Q&A segment. Before we dive into it, let me introduce the management team. So on Trinh Sang's right, we have Wong May Lien, our CFO. And to his left, we have Jack Min Lee, Head of Investment. And to Jack Min's left, we have Lee Jeon, Head of Portfolio Management. Okay, a few housekeeping rules before we start. We'll take questions one person at a time. We kindly ask that you keep your questions to two per turn. If you have more questions, we'll come back to you, as we know some of you always do. Those online, please type in your questions into the chat box. Okay, if you have questions, please raise your hands and we'll bring the mic to you. So I see Marvin. Go ahead.