CapitaLand Ascendas REIT

Good evening, welcome to Capital Land Ascendas REIT first half 202C briefing. I'm Johanna from the Investor Relations team. Thank you for joining us today in person at Capital Tower and remotely via Zoom. Please note that this briefing is recorded and will be made available on our website. We'll start shortly with a presentation by Director of Investor Relations, followed by questions and answers with our management team. I'm pleased to introduce the panel this evening. Mr William Tay, our Chief Executive Officer. On his right, Ms Koo Lee Sze, Chief Executive Officer. Mr James Goh, Head of Portfolio Management for Singapore. Finally, Miss Serene Ong, Head of Investment and Portfolio Management International. If you have any questions, please raise your hands and the microphone will be passed to you. Please try to keep to two questions each time and if you would like to supplement with more, we will circle back to you. For those online, you may post your questions on the chat box. With that, I will hand over the time now to the highlights of the briefing.

Thank you Johanna and thank you and welcome to everyone joining us online and physically for Clare's mid-year results briefing. So Clare delivered a resilient set of results for the first half of 2026. Distributable income was higher by 8.6% year-on-year at $359.4 million, while the DPU remained stable at $7.482. The higher distribution was due to the acquisitions completed in 2025 and 2026, as well as the better performance from existing properties. So these two factors more than offset the impact of about 500 million of divestments completed in 2025. The portfolio occupancy is 89.1%. So this figure includes two new properties that were completed in the second quarter. So they are Somerville Logistics Centre in the US as well as 27 IBP in Singapore. So if we are to exclude the completed properties, the portfolio occupancy would be 90.3%, which is a similar level to the previous quarter of 90.5. Rental reversions remain positive. So for the first half of the year, the average portfolio rental reversion is the same, which reflects continued demand for our quality properties. And for the second quarter specifically, The rental reversion is 5.2%. On capital management, the gearing declined to 39.7% from 42% the previous quarter. This followed the equity fundraising in the first half. To recap, the equity fundraising was to fund acquisitions and we repaid some debt. So it was a $600 million private placement as well as a $300 million preferential offering, both of which were well oversubscribed. For the first half of 2026, the cost of that is 3.5%. This is a similar level to the first quarter and 20 basis points lower than the first half of last year. Our portfolio rejuvenation strategy remains to grow and enhance the value of Clare's portfolio, so it's anchored on accretive acquisitions, selective redevelopments and developments, As well as Discipline Divestment For the year to date, we have executed on all three In the first half of the year, we completed more than $1.1 billion And these are 9 quality properties in Singapore, the US, Europe as well as Japan So as mentioned, we completed the redevelopment of 27 IBP As well as the development of Somerville Logistics Centre And lastly in July Kinchuan Telecommunications Complex Kinchuan Telecommunications Complex Kinchuan Telecommunications Complex Kinchuan Telecommunications Complex Kinchuan Telecommunications Complex Kinchuan Telecommunications Complex On the financial performance, comparing the first half of this year against the first half of last year, gross revenue and NPI increased by 6.7% and 6.2% respectively. This is due to acquisitions completed last year as well as this year, and the better performance from the Australia portfolio. So as mentioned, it has offset the impact of the divestments completed in 2025. Distributable incomes are 10% higher and DPU remains stable at 7.482 cents. After accounting for the larger unit base, mainly due to the equity fundraising in the first half of this year as well as the first half of last year. Comparing this first half of this year versus the second half of last year, similarly gross revenue and NPI increased by 2.8% and 2.2% respectively. Similarly acquisitions as well as the better performance of the Australia portfolio drove the increase and offset investments. Distributable income increased 3.5% but the DPU was slightly lower by 0.6%. It's mainly due to the larger unit base. So Claire had actually Advanced distribution of 3.75 Singapore cents on the 30th of April. So for the period from 2nd of April to 30th of June, we have declared a DPU of 3.732 cents. Unit holders can expect to receive this distribution around the 8th. In addition to the properties that we have acquired in the first half of this year, we are in the process of completing the acquisitions of two logistics properties in Singapore for about a total purchase constituting $600 million. So this brings the total year-to-date acquisition value to about $1.8 billion. Going through the list of these properties, you will notice that 10 of the 11 acquisitions are actually logistics and data center assets. So these are asset classes that Claire wants to continue to use. And about half of the value of the acquisition value are properties in Singapore. Because Singapore is a key market for Claire, and even as we build a globally diversified portfolio, Singapore is a geography that we continue to invest in. So just to look back to December 2022, the Singapore portfolio value was about $10.1 billion. As of today, currently 30th of June, it has increased by about 30% to $13.1 billion. So we have continued to invest strategically in Singapore 2023 is about $2.7 billion of acquisitions and just in 2026 alone we will be completing about $883 million Going into a bit of details about the REIT asset 27 IBP So we doubled the GFA as well as the NLA At the same time, we have also transformed the property into a modern business-based asset. It features your efficient column-free floor plates. We have also added amenities such as a sky-trip facility. The property is BCA Greenmark Platinum certified and is going to be directly connected to the future Jurong Town Hall MRT station. It's very close to the Jurong Lake District. which is envisioned to be the largest business site of Singapore's central area. The current committed occupancy is about 19%. We are in discussions with our prospects and durings are ongoing, so approximately 20% of NLA is in discussions. Somerville Logistics Centre is a modern logistics asset in Charleston, South Carolina. This asset widens and diversifies our US logistics portfolio, which is mainly currently in Midwest markets. Marketing is in progress and similarly viewings and lease discussions with prospects are ongoing. The current list of ongoing projects as at the end of June is 5, with a total estimated cost of $507.2 million. We are working on a couple of other redevelopments in Singapore as well as overseas, and we will be sharing more details in future quarters when the details have been finalized. Just to highlight a new asset enhancement initiative that we are doing in Austria. So this AEI is at 125 Thomas Hall Drive. This property has three buildings and we are currently doing some asset enhancement works at one of the buildings. Besides refreshing the lobby, adding new amenities, we are also making the property more suited for multi-tenanted occupancy. The AEI is going to cost about 10 million Sing dollars and it will be completed in the first half of next year. Moving on to capital management, as shared earlier, the gearing has come down to 39.7%, slightly higher than 6 months and 12 months ago. It's mainly because of higher borrowings to fund investments, while our total assets have also increased to about $20.9 billion. The adjusted NAV per unit has also increased to $0.224 as of end of June. Our financial metrics remain strong. So the ICR is 3.5 times. Our percentage of fixed rate debt is 70.1%. And our debt maturity profile is 2.5 years. On Natural Hedge, we maintain a high level of about 73% for overseas investments. With our latest investment into the Japan Data Center, we want to refresh everyone's memory that CREF portfolio now is diversified across markets. So Singapore remains the majority at 65%. Australia, the US, and UK, Europe each contributes about 9% to 12%. Japan currently is at 3%. In terms of asset class, it remains well diversified across the three main sectors. Business Space and Life Sciences, Logistics and Industrial and Data Centres. I'll move into occupancy. So we'll explain a bit about the individual geographies occupancy starting with Singapore. So the overall Singapore portfolio occupancy is 90.1%. This includes 27 IDP which is in the leasing up phase. If you are to exclude 27 IVP, the overall portfolio occupancy actually remains stable quarter on quarter at 90.6%. For the US, similarly the decline quarter on quarter was due to the addition of Somerville Logistics Centre. If you are to remove this newly completed property, the portfolio occupancy actually remains stable at 85.9%, which is 20 basis points higher than the previous quarter. This was mainly due to some new take-ups in property. In Australia, the decline was due to a lease expiry at 125 Thomas Hall Drive. So this is the business space property in Macquarie Park in Sydney, where we are doing the AEI. So conversion works are underway. And actually we have already found a commitment for the 60% of the vacant space. while we continue to market 40%. Otherwise, the logistics portfolio in Australia, the occupancy remains stable and healthy at about 92.9%. Lastly, for UK Europe, the occupancy remains stable at 93.1%. There is a property that we shared last quarter that we are going to be redeveloping. So it has been decommissioned this quarter, meaning the third Q, and I will be sharing details in the future coming quarters. Exclude this property, the occupancy actually remains at about 98.99%. On rental reversions, it remains positive across all asset classes and geographies, and more importantly, we have revised the guidance to the single-digit range. Previously, it was mid-single-digit. I'll move on to closing. In terms of outlook for global environment, according to the IMF, The growth in 2026 is expected to be slower than 2025. But for us, Claire, that's why our strategy remains relevant. So our portfolio remains diversified across five developed markets. And these markets have healthy fundamentals. So more importantly, with our strong balance sheet, we have flexibility. The portfolio remains resilient and with our clear growth strategy, we believe that Clare is well positioned for stable and sustainable returns. That brings me to the end of my presentation. Before we move to the Q&A segment, I would just like to pass the time over to William for him to share a few words.

Thanks for coming.