Frasers Centrepoint Trust

Good morning, everyone. Welcome to Fraser Centrepoint Trust's full year 2026 financial results briefing. We are pleased to have announced a very strong set of results with a TPU of 12.35 cents, a new high for the REIT since our listing in 2006. I have with me today the management team, Mr Richard Ng, our Chief Executive Officer, Ms Annie Kuang, our Chief Financial Officer, Ms Pauline Lin, Managing Director of Investment and Asset Management. Without further ado, let us commence today's briefing.

Thanks Judy. Good morning everyone. Next slide Judy. As Judy mentioned just now, we are very happy to share with you this set of results. She mentioned this $0.1235 is the new high that we have achieved. It comes across from all sides of things, from the organic growth, from the AEI that we have done, completed at D1 and also recently completed Alkang Mall and also all the other cost-saving initiatives etc that has given us this set of good results. So just going to run through very quickly in terms of distributions to unit holders. It's at 252.2 million, 8.2% year-on-year increase. Distribution per unit is 2% year-on-year increase as mentioned. Capital management, aggregate leverage, you can see there are two numbers there. And the reason is because of just a one-day difference in timing, right? Because when we divested White Sands, the funds came in on the 30th of September itself. So there was a slight delay before the funds could be placed back to the bank. And that's the reason why we showed two numbers. So as of now, our gearing is at 36.8%. Cost of debt has also come down significantly compared to last year. 60 bps dropped from 3.8% to 3.2% today. And in terms of the performance of our portfolio, I think there's a lot of questions around, you know, what do we see the business on the ground? And we're happy to share again in terms of committed occupancy, it's almost 100%, still at 99.7%. Rental reversion again came in very positive at 6.6%, though we have shared or kind of guided to a mid-singer, so we kind of outperformed there as well. We have also been quite active in the market with some proactive capital recycling. We divested white sands, as all of you would have known, and also divested into a development project at Bayshore Drive. That, again, is going to provide us with a new pipeline due for completion in 2030. I mentioned a little bit about AEI. Of course, the completion of Alkang Mall AEI at the ROI of around 8%. So it's again coming in higher than what we have mentioned or what we have actually guided. We guided about 7%, so we came in again higher, just like what we did for Tampines One. So the team on the ground has put in a lot of efforts on this. AEI next is going well for the Phase One. Again, some of these details will be shared with you later on. But the other thing that some of you may have also seen is we have signed an MOU with NLB on this space, what we call the homepage at Causeway Point. Later on, we have a video to share and also Pauline will share a little bit more details on our AEI for Causeway Point. Next. Okay, just a very brief sharing on the overall retail outlook in the market. I'm not going to go into the GDP and inflation numbers. All you guys will verse in that. For retail sales, I just wanted to highlight that, especially for F&B sales, if you look at it in Singapore overall, there's a growth of 0.3%. But for FCT, our F&B sales actually grew by 2.4%. Again, this is slightly different narrative because we see a lot of articles, a lot of announcement on closures, consolidations on F&B, which is true. I think it's happening in the market. But again, I don't think it's something that is generic that's happened in every part of Singapore. So, you know, just wanted to highlight the fact that the F&B operators in our malls are still doing very, very well. So we have a growth of 2.4%. Some of the top performing trade categories for, you know, for this full year results include jewelry and watches. Of course, you know, you know that gold prices have been going up. That's one reason. And the other reason is also, you know, the fact that people are also coming back to buy some of these products. Education continues to be very strong. This is an area we see a lot of opportunities for us to continue to expand this particular trade in some of our malls. And as mentioned just now, F&B is still doing very, very well at our portfolio. Next slide. In terms of the supply side of things, we have tabulated this from an extract from CBRE report. So if you look at from 2026 to 2029, if you just focus specifically on the suburban supply, we are looking at about 490,000 square feet. But these are broken down into many different shopping centres, malls, because some of them are actually quite small, you know, 48,000, 24,000. I suppose probably one of the largest could be around 130,000 in Chincharu. So pretty much a smallish type of malls, not the ones that you're expecting to have, that you are seeing in our portfolio. So again, limited supply, limited competition. The next segment is going to focus on financial highlights and I'm going to pass over to Annie. Annie, over to you.

Thank you, Richard. Good morning, everyone. Let me take you through the financial highlights. FY26 gross revenue and NPI rose 8.7% and 11.5% year-on-year respectively. due to a full six months contribution from the acquisition of North Point City South Wing, which was completed in May 2025, as well as the higher passing rate across most malls. Correspondingly, you can see that the distributions to unit holders increased by about 3.3% to $127.2 million in FY2026. and this also take into account that we retain about 3 million distributable income for EEI and other working capital. On a full year basis, the MPI is about 50.7% year on year as a result of full year contribution from North Point City South Wing, coupled with the organic growth from the existing portfolio. Distribution from JV is also lower this year due to the absence of the one-off dividend that was paid last year. Distribution to unit holders increased 8.2% and this excludes the $7.6 million which we retained for AEI and the working capital purposes. So together with the $4.6 million that was retained, so for the year we retained about $7.6 million. So with this, this brings us the total DPU about 12.35 cents, which is about 2.2% higher than last year. Next slide, please. The MAV increases to 2.32 cents, mainly because of the fair value gain that was recognised for the investment properties, as well as the change in the fair value of the financial instruments. Next slide, please. We are pleased to report on the healthy financial matrix with the lower cost of debt in FY26. So as mentioned earlier, the aggregate leverage is at 38.7%. It is further lowered to 36.8% after you take into account the repayment of borrowings with the divestment proceeds that came in after year end. At year end, yeah. The interest coverage ratio increases to about 4.37 times as a result of fair value gained. And our cost of debt for full year is 60 basis points lower than last year, which is at 3.2%. The percentage of fixed debt is at 68.6%. With the post-year end repayment borrowings, the percentage of fixed debt increases to about 75.1%. Next slide, please. We have established a loan facility for the borrowings that are due in FY2027 and the loan will be refinanced to FY2032. With this, there is no more refinancing for the whole FY2027 and you can see that the debt maturity profile is well staggered with the weighted average debt to maturity of 3.41 years. There's also no more than 30% borrowings due in any single one year. So with the 75% borrowings already hedged into fixed rate, there is a minimal impact from the increased interest rate. So our guidance for next year is the rate stay at current level will be about 3.3%. Next slide please. Yeah, the aggregate appraised value for the total portfolio, including the proportionate share of the two property index and waterway point increased by about 1.7%. This is mainly because of the stronger performance across all assets, as well as the AEI uplift from the organ more. The capitalisation rates used by the independent valuers remain unchanged from previous year. Yeah. Next slide. The DPU of 6.214 cents for this period 2.5 will be paid on the 27th of November 2026. With this, I will hand over to Pauline for the portfolio highlights.