CapitaLand China Trust

Good morning, everyone. Welcome to CRCT's 1Q2026 Analyst Briefing. I'm Sue Yi, Investor Relations for CRCT. With me today, we have our CEO Jerry, CFO Joanne, CFO Designate Ling Tong, and Head of IPM Liu Hong. For this meeting, we'll start with a brief presentation, followed by a Q&A session. So if you have a question, please use the raise hand feature and I'll direct the time to you. So with that, Jerry, please go ahead.

Thanks, Sherry. Welcome everyone to CLCT's first Q2026 Business On Date. Thank you again to make some time this morning to attend this presentation. This is a business update, so I think it will be relatively short. There will be more Q&A time later. So CLCT, we are the first and largest China-focused asset. So now, of course, we also have connectivity to the CREIT market through us jointly listing the CREIT on the Shanghai Stock Exchange, our sponsor. Our current total assets is $4.5 billion. We have eight retail malls, five business parks, four logistics assets. and most of our assets are in tier 1 and tier 2 cities. Distribution yield using FY2025 DPU with the unit price now is roughly about 7 over percent right that reflects some of the unit price movement from the broad market winners after the start of the Iran war in terms of our asset allocation you can see that relatively unchanged our retail is still our largest and most resilient asset class 70 percent of gross rental income that's that's the biggest part and then the remaining 30% is what we term as more new economy so business parks 27% and logistic parks smallest at 7% in terms of the different segments generally speaking The retail has been showing relatively more resilient with our AEI effects starting to flow in Q1 of this year. Logistics stabilized, of course, with some rent resets that we have done in 2025. And business parks, you would see that continue to have weak demand. So overall portfolio gross revenue and MPI dropped about 5% and 3% respectively. and that's mainly due to the divested reparting effect so encouragingly on the same store basis you'll see that our portfolio gross revenue are marginally negative at minus 0.4% year on year and NPI actually increased 1.3% year on year if we dissect further for retail Again, on the headline revenue, it declined by 7.2%, but again, mainly due to the loss of Yu Hua Ting's revenue, which alone was about RM21 million. So without that, if you exclude that on a same-store basis, the drop net narrows to minus 0.5% year-on-year. The other effect for retail is that the completed AEIs started to provide us with new revenue flow. That's about RM5 million per quarter. And it was somewhat offsetted by some of the weakness, continued weakness we see at Singnan, Grand Canyon Mall, and Aitan Mun Tun. For VEP and logistics, when we combine together, the revenue is relatively flat year on year. What we have done, of course, we continue to focus on operating efficiency. Our operating costs, on a year-on-year basis, we reduced by 3.7% on a same-store basis. Next, if you look at some of the retail operational statistics for FirstQ, continued growth in traffic and tenant sales. You can see traffic grew by 3.3%, tenant sales grew by 5.5%, and both of these statistics are generally faster than we have seen on in terms of growth than the average of full year 2025 over that full year 2025, which grew about 2% for the full year 2025. But really, we are continuing the strong momentum that we saw for Q2025. Overall, Opcos healthy, 17%. Again, there's a slight drop in Opcos, and that's due to the good, healthy sales growth that we have seen. Trade categories that have done well. FMB 4.2%. That's not a surprise. It has been a big category for us. Again, last quarter I shared the same trends are driving this FMB segment. We introduced new high-performing trading brands, which are two factors for shoppers. Growth also was broad-based. You have old local favourites, Japanese sushi chains and bakeries all doing well. IT up 8.5% that's again boosted by consumption voucher as far as we mentioned we expanded more digital brands during our AEI in ShareFool and Wangxin you know brands like Huawei continue to do very well in our malls Jolien watches plus 8% again driven by the trend to invest in gold Toys and Hobbies again a standout plus 59.6% this quarter continued popularity of the collectible toys market. So again, PopMart was 100 over percent up, you know, year on year. Miniso, again, did very well with the MinisoLand and ShareFull going strong. They are up about 58% in terms of sales growth. The other categories that are not in the slide, but I can share a little bit, Last year, we did a lot of supermarket AEIs. So the supermarket upgrading did well. So those powered our supermarket category. Actually, it's there in the right-hand side. We had strong sales from there, 80 million renminbi. So the growth there is, of course, double-digit. Since last year's supermarkets, some of them have closed down. and once they were opened, this market drove good traffic growth at the three malls that they were opened at. Another category that did well, sporting category, we also opened at Decathlon in Rock Square and a very good Antalco and Shein store in Shui Fu. So the sporting category this quarter also did very well, plus 46%. One real surprise for me is that the fashion category actually turned positive this quarter it was positive 1.4% it's more positive and growth was driven by the stronger malls. Some of the names that have been growing well, Washington, which is basically winter wear, thermal wear, and perhaps it's driven by the winter season. It had a strong overall growth of about 40% sales growth. While one quarter isn't a trend yet, but certainly this is encouraging because we have had many quarters where we have not seen fashion had a positive sales growth. In terms of occupancy, our moors continue to have high occupancy. So this water, we had 97% with almost all moors above occupancy of 95%, except for Sinan, which is, of course, we continue to reposition. In terms of reversion, similar levels to 2025 at about minus 2%, with two anchor renewals affecting our reversion number. we are doing some anchor renewals in Nohomola and Aiton Muntun Business Park occupancy is at 86% slight drop from fourth Q2025 usually leasing momentum in the first Q is usually slower but our business park assets continue to outperform our sub markets this is quite generally softer environment for business parks We see improvements in CISO and Ascendance Innovation Hub, but there are decline in some of the other assets. For example, AIT, Ascendance Innovation Powers, obviously dropped, mainly due to one of the BPO tenant that did not renew upon expiry. We are looking to do that. Hangzhou Phase 1 and 2, challenging market which we shared before supply-wise. Occupancy drop were from two bigger e-commerce clients that pre-terminated that took up about 4% space of Hangzhou 2. Previously we also shared that for Hangzhou 2, we had some ex-master list service office service office lease that we took back that's about 55,000 square meters and then where we sub-lease now from about 70% last year we are now up to 74% backfill right so we'll continue to backfill that space overall business parts are reversions at minus 11 we are of course prioritizing occupancy through actively trying to retain our Tenants and conversion of the new leasing pipelines. You can see that actually this quarter, we did do quite a lot of leases, almost 60,000 square meters of renewals and new leases in first queue. So we are working hard at it. Logistics part, smallest part of our portfolio, 3% of GRI. We can confidently say that I think the logistic portfolio has stabilized. We further improved in Chengdu, driving that occupancy of that asset to 96.2% and also improving the overall logistic portfolio to about 99%. So we feel that, you know, rents have almost bottomed up in this logistic portfolio. We aim to continue to achieve full occupancy at this level. capital management before i hand it off to uh to talk about it uh i i would like to just highlight that uh in terms of our average cost of debt uh this quarter we have managed to cut it down from from 3.3 where we ended off the year in 2025 to 3.1 right benefiting our efforts for monthly financing and the overall uh you know uh constructive rate environment in both sing dollars and running fee So for this quarter, the combined efforts, we managed to translate a loan interest rate savings of about $2.9 million. So that's about 18% year-on-year drop. So overall income.

Thank you, Jerry. So capital management remain a core strength and priority for CLCT. So our focus is actually very clear. We wanted to maintain a healthy balance sheet and then actively lowering our cost of borrowing and protect distribution stability across the cycle. So as at March 2026, our CLCT step level is slightly higher than one quarter ago following our distribution. That has resulted in aggregate leverage of 41.4%, which still remain comfortably within the regulatory limit. More importantly, like what Jerry has just now highlighted, we actually have achieved year-to-date average cost of debt of 3.1%. This represents 40 basis point reduction year-on-year and 20 basis point reduction versus full year 2025. These are tangible outcomes from active actions taken early in 2025 when we proactively refinanced and shifted funding from higher-cost single-dollar debt into lower-cost remitted debt. And also, we have increased our proportion of remitted denominator debt, which has strengthened our balance sheet against the Fx movement. So as we deliberately balance our Sing Dollar and Renminbi debt mix to stay flexible across various macro condition, I want to highlight that in the small table on the upper right corner, that actually shows our distribution sensitivity on Sing Dollar and Renminbi interest rate movement. We now have more floating debt floating rate debt in RMB in SingDollar. This actually positioned CLCT to benefit from monetary easing in China, while being better shielded from any potential volatility in SingDollar interest rate, given the global macro environment. And with lower borrowing costs, that has also strengthened our credit profile. Our interest coverage ratio has improved to 2.9 times Under stress test scenario, whether 100 basis points increase in average cost of borrowing or 10% decrease in our EBITDA, our ICR, interest coverage ratio, is able to remain comfortably above 2.3 times, well above various regulatory thresholds. CLCT's debt maturity profile also is very well-stackered. with annual refinancing capped at around 25% of our total debt. That is to manage our refinancing risk. The only offshore bond that is maturing in 2026 is Renminbi 600 million, 3.8% FTZ bond, which is due for refinancing in Q4 2026. While CLCT has sufficient committed bank facility to refinance this bond, But we see this as a good opportunity for us to further diversify our cost of funding, as well as to refinance our debt at meaningfully lower costs. So we will actually keep unitholders informed about our refinancing efforts in the following quarters. So finally, we have strengthened our natural hedge. Our randomly denominated debt now represents about 60% of our total borrowing. including other hedging instruments, we have around 78% of our total debt in Lemming B denominated form. So in summary, our capital management strategy is to deliver a very clear and measurable outcome for our union holders. Lower cost of debt and stronger resilience to interest rate and FX movement. This effort underpins our distribution stability and provides CLCT with long-term growth capacity. Over to Jerry.