Ladies and gentlemen, thank you for standing by and welcome to Lendlease's HY 2025 Results Briefing. At this time, all participants are in listen-only mode. There will be a presentation followed by a question-and-answer session with management and Lendlease's covering research analysts. At which time, if you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I must advise you that this call is being recorded today, Monday, 17th of February, 2025. I would now like to hand the conference over to Mr. Tony Lombardo, Group Chief Executive Officer. Thank you, Tony. Please go ahead. Good morning, and thank you for joining the Lendlease's 2025 half-year results presentation. I'm Tony Lombardo, Chief Executive Officer and Managing Director of Lendlease. With me is Simon Dixon, Chief Financial Officer. Sitting here at Barangaroo in Sydney, we're on the land of the Gadigal people, and I extend my respects to their elders past and present. Today, I'll provide an overview of our half-year 2025 results. Simon will then talk through the financials before handing back to me. Then I'll cover our outlook. We'll then open for questions. Starting on slide four with our key actions to simplify Lendlease. In May last year, we announced a refreshed strategy to position Lendlease for financial success by leveraging our proven core strengths and competitive advantages. In less than nine months, we've made strong progress simplifying the group, reducing its risk profile, and recycling capital to be a more focused organization. First, we said we'd restructure the organization and reduce costs. We've adopted a new management structure across our segments, and actions promised cost savings to be on track to deliver the full run rate of our AUD 125 million target by the end of FY 2025. Second, we said we'd accelerate capital recycling with AUD 2.8 billion of initiatives targeted in FY 2025 to substantially reduce debt, return capital to securityholders, and strengthen the group's balance sheet. We've already announced or completed AUD 2.2 billion of transactions with ongoing processes and initiatives progressing, such as TRX Retail in Malaysia, our Ardor Gardens senior living asset in China, and our Retirement Living Investment in Australia, are all underway. Third, we've said we'd aim to divest international construction within 18 months. We've progressed this well ahead of the timeline with the completion of the U.S. construction sale and the recent announcement of the U.K. construction sale. Fourth, we've announced we would look to release further capital from international development. We've made early progress with the first land sales conducted by CRU at Elephant Park, and we're exploring further opportunities to accelerate and optimize the release of capital in international development through capital partnering joint ventures and land sales. And finally, we said we'd focus on the disciplined allocation of capital to both grow our underlying operations and return capital to securityholders with new growth initiatives launched in our investment management and development businesses. Our progress so far has been strong, and we've been moving at pace, particularly considering the scale of changes implemented across the group. I'll speak to our progress in more detail as we review our performance and operations for the period. We have focused on IDC as our core operations to simplify and refocus the business with the aim to deliver consistent, sustainable returns to our securityholders and have established the Capital Release Unit to recycle capital, balancing the speed of execution with economic outcomes. Starting with the first half financial result on slide six, operating profit after tax for the period was AUD 122 million, up AUD 133 million. Stronger operational performance across investments and development led to this increase, partially offset by construction and CRU. Difficult operating conditions in construction led to losses, predominantly across two projects, while in CRU, provisions were taken to manage risks on completed projects in relation to U.K. construction. Operating earnings per security were AUD 17.70, equating to a group operating return on equity of 5%. Our core operations of IDC delivered an operating return on equity for the period of 16.3%. Distributions per security of AUD 0.06 were announced, representing a payout ratio of 34%. The group returned a statutory profit for the period of AUD 48 million after allowing for AUD 74 million of negative investment property revaluations. Gearing of 27% was recorded at 31 December, noting AUD 1.7 billion of gross proceeds from announced transactions and apartment settlements at One Sydney Harbour are anticipated in the second half, with AUD 1.3 billion of these proceeds already received post-balance date. Simon will talk to our balance sheet position and capital management later in the presentation. On slide seven are a selection of key operational highlights across our investments, development, and construction segments. In investments, the New Life Sciences Joint Venture, Vida Partners, which has a focus on Australia and Asia, made its first portfolio acquisition in Singapore. Post-balance date, the group secured AUD 1.5 billion of new mandate wins across Australia and Asia. In development, we've reached practical completion on the second and third residential towers at One Sydney Harbour, and we secured capital partners to support our development activity, including a luxury residential project at One Darling Point and the launch of a new build-to-rent project in Victoria Harbour. We demonstrated our point of difference in residential developments with strong pre-sales across our key offerings in Sydney and Melbourne, and we announced the sale of Capella Capital, further simplifying the group as we refocused our capital and time on core real estate operations. In construction, we built on our strong backlog of work with the addition of Melton Hospital in Victoria and a number of new data center projects. It was also very disappointing during the period that we experienced construction losses predominantly on two projects, which I'll cover in more detail later in the presentation. Turning now to CRU's operational highlights on slide eight. As I mentioned, we've completed or announced AUD 2.2 billion of capital recycling to date, including the acceleration of the first CRU land sales. Sales of Australian Communities, US Military Housing, and Asian life science assets have now all completed, and we've announced the sale of our UK construction operations. When completed, expected in the second half of FY 2025, Lendlease will have exited from international construction. CRU has also completed the first of its joint venture projects, The Turing Building at Stratford Cross, London and Forum in Boston. One Java in New York and Habitat in Los Angeles also topped out in the period. We'll look to complete these projects with our investment partners next year and generate further fund growth through our development to core capability across both IDC and CRU. In line with our commitment to safety, our performance continued to improve. Our investment segment earnings highlighted on page nine are derived from funds under management and contributions from our directly held co-investment portfolio. Despite further valuation headwinds, we grew funds under management to AUD 50 billion, including AUD 900 million of new develop- to- core product. The group's co-investments increased by 6% to AUD 3.3 billion, primarily due to investments in Vida Partners, which undertook its first acquisition during the first half, growing funds to more than AUD 2 billion in the first six months of operations. The co-investments portfolio remains well diversified, with a primary weighting to workplace, retail, and residential assets. The co-investment yield, driven by underlying asset performance, improved to a gross yield of 4.4%. The investment distribution yield of 3% takes into account interest, taxes, and fees. Turning to development on slide 10, development completions of $2.3 billion increased on the prior corresponding period, including Residences Two and Watermans Residences at One Sydney Harbour. The business commenced $600 million of new developments, including a build-to-rent project in Victoria Harbour, Melbourne, alongside new capital partner Nippon Steel Kowa Real Estate. Our residential developments continue to perform strongly, with One Circular Quay due for completion in FY 2027, already 77% pre-sold by value. We have $3 billion of pre-sold apartments, which will settle over the coming years. Leasing activity picked up in the period with increased interest at Victoria Cross, North Sydney, following the opening of the Metro Station, which has activated the precinct. The building is now 25% leased. Practical completion is targeted for early FY 2026, with approximately 30% of NLA in active discussion. Also in North Sydney, Blue & William is now over 90% complete. In Melbourne, we progressed existing developments at Victoria Harbour by securing development approvals for three additional residential towers, while a build-to-rent tower was approved as part of our Gurrowa Place project at Queen Victoria Market. We've announced the post-balance date sale of Capella Capital, our infrastructure-facing PPP business, in order to further simplify the group and reduce future funding requirements. We continue to restock our Australian development pipeline, securing a new AUD 500 million residential project in Sydney, One Darling Point, alongside established partner Mitsubishi Estate Asia. Moving now to the construction segment on slide 11. Revenues for the period were down by 18% as a number of large projects were completed in FY 2024, and various projects have taken longer to commence. Over the past five financial years, our EBITDA margin has averaged 3.1% in spite of significant headwinds, including material construction cost inflation, subcontractor insolvencies, and productivity issues. While these headwinds continued into FY 2025, it is disappointing in the period to experience losses predominantly on two projects. These projects were secured in 2020-2021 timeframe and were fixed price. These projects have experienced material cost, construction cost inflation, supply chain insolvencies, and productivity issues. We are pursuing recoveries relating to these losses, which have not been taken into account in the result for the period. Growth in backlog revenues was strong, supported by new wins across health and data centers. Backlog revenue of AUD 6.2 billion remains weighted to government projects across social infrastructure and defense. This is up by 59% compared to the financial year end of FY 2024. This current new work secured is anticipated to have a lower risk profile, given a greater weighting to fee-based contracts, now representing 54% of go forward backlog, combined with a lower inflation outlook for the construction sector. We anticipate construction will return to profitability in the second half of FY 2025. Turning to CRU on slide 12, several large capital recycling initiatives have been announced, all completed to date, and strong value realization has been achieved. The sale of US Military Housing was completed post-balance date. The sale of Australian Communities was completed, and development activity included land and asset sales at Elephant Park, as well as the practical completion at a number of sites. We also continue to progress master planning of international development projects as we work with our partners to optimize value and accelerate the release of capital. We've substantially exited from the international construction across the U.K., U.S., and Asia ahead of expected timelines. I'll now hand over to Simon to talk through the financials. Thanks, Tony, and good morning, everyone. Starting with our financial performance for the group on slide 14. Firstly, the financial tables shown on this and the following slides have been presented under the group's new definition of operating profit after tax. This definition excludes only stabilized investment property revaluation gains and losses. CRU is also reported for the first time as a standalone segment. Moving to the result, segment operating EBITDA of AUD 375 million was up 39%, with a higher contribution from investments and development, partially offset by lower earnings from construction and CRU. Corporate costs reduced 61% to AUD 57 million for the period, primarily from the absence of redundancy-related restructuring charges that were incurred in the first half of 2024 and cost savings beginning to be realized as a consequence of actions taken throughout the half. Operating EBITDA of AUD 318 million, which includes corporate costs, was up substantially from AUD 121 million. Net finance costs increased 77% to $136 million due to higher average net debt and a higher average cost of debt for the period. First half of 2024 also saw a gain of $39 million from the buyback of sterling-denominated bonds. Excluding this impact, net finance costs would have increased 17% for the period. Tax expense was low at $9 million due to a low effective tax rate from the life sciences joint venture transaction and a high proportion of income derived from the Lendlease Trust. The group recorded both a positive operating profit after tax and positive statutory profit after tax for the period, with OPAT of $122 million, up from a loss of $11 million, and a statutory profit after tax of $48 million compared to a loss of $136 million in the prior corresponding period. Moving to the segment performance in more detail on slide 15, starting with the investment segment. Headline operating performance increased materially, with AUD 228 million of EBITDA recorded. This was led by AUD 130 million of other EBITDA from transaction profits relating to the life sciences joint venture. Management EBITDA from funds management activities increased 7% due to lower operating expenses benefiting from cost savings initiatives, including the removal of the regional management structures, which more than offset lower revenues. Co-investment EBITDA of AUD 49 million was stable. Moving on to slide 16. In the development segment, stronger completion activity contributed to AUD 138 million of EBITDA for the period and a return on invested capital of 14.9%, with settlement of Residences Two One Sydney Harbour delivering AUD 118 million of EBITDA. The third residential tower at One Sydney Harbour also completed in the period, with settlement and profit recognition to occur in the second half of 2025. A negative valuation movement of AUD 14 million from Victoria Cross also impacted this period's result. In the construction segment, revenue of AUD 1.5 billion was down 18% on the prior corresponding period, partly due to client decisions to delay commencements of some projects. EBITDA was materially down due predominantly to losses on two construction projects, as Tony discussed earlier. EBITDA margin was negative 1.6% compared to 3.1% in the prior corresponding period due to those projects. These impacts led to an approximate 5% negative impact to the EBITDA margin. Turning now to slide 17. Including the capital release unit, more than AUD 2.2 billion of capital recycling initiatives have been completed or announced to date. Noting accelerating the release of capital is the primary function of this segment. EBITDA of AUD 34 million was recorded, down from AUD 143 million. Australian Communities delivered AUD 142 million from the sale of projects and settlements, partially offset by a AUD 67 million loss from international construction impacted by provisions taken and related to completed projects in the UK construction business, a AUD 41 million loss from development properties, primarily due to negative revaluations, and lower earnings from investments held in CRU and retained engineering and services operations recorded in other EBITDA. Turning now to net debt on slide 18. The increase in net debt of AUD 3.8 billion includes AUD 1 billion of production spend in development, offset by settlements from One Sydney Harbour and other receipts, while in investments, capital recycling and new investments largely offset each other. CRU movements benefited from the first communities receipt and land sales in international development. There was a working capital unwind of AUD 0.2 billion in construction and a foreign exchange movement of AUD 0.2 billion, contributing to the increase in net debt. Cash proceeds of approximately AUD 1.7 billion from announced and completed transactions and apartment settlements to be received in the second half of 2025 equate to a pro forma first half 2025 gearing benefit of 10% and provide a clear path to deleverage the balance sheet. This comprises AUD 1 billion from Military Housing and communities and AUD 0.3 billion from apartment settlements at One Sydney Harbour that have already been received post-balance date, with further contracted cash inflows expected from apartment settlements and the sale of Capella. Moving to capital management and treasury on slide 19. While gearing of 27% remains elevated, strong progress on capital recycling is expected to see gearing materially decrease in the second half of 2025, moving down towards but remaining above the top end of the target 5% to 15% range, and is expected to be within the target range by the end of FY 2026. The group maintains strong available liquidity of AUD 2.6 billion, comprising AUD 1.8 billion of available undrawn debt and AUD 0.7 billion of cash and cash equivalents. Debt maturities are well balanced, with an average maturity of three years and no material maturities falling due in the second half of 2025. Maintaining our investment-grade credit ratings remains a priority, and these were reaffirmed by both rating agencies during 2024. Moving now to slide 20, which highlights our progress on cost initiatives. Over the past two financial years, the group has removed more than AUD 170 million from net overheads. We have substantially actioned a further AUD 125 million of annual cost savings announced in our May strategy and expect these realized savings to increase in the second half of 2025 before being fully realized in FY 2026. We are targeting net overheads of approximately AUD 475 million for FY 2025 and an exit run rate for net overheads of approximately AUD 400 million by the end of FY 2025. Additionally, we will continue to explore further cost savings as simplification initiatives are completed. I'll now hand back to Tony. Thanks, Simon. Moving now to slide 22, the operational outlook. In investments, pleasingly, we've secured a number of new mandates together with developed a core product that will support future fund growth. In addition, we'll look to leverage our capability to source and deliver new investment products alongside our investment partners as we strive to deliver the best outcomes for them, while regional cost saving initiatives are expected to support a sustainable EBITDA margin in the investments going forward. In development, the second half of 2025 will see further settlement profits from One Sydney Harbour as the final tower settles. We remain focused on leveraging our core capability to restock the pipeline, particularly beyond FY 2027, and are in advanced stages of potential securing up to AUD 20 billion of opportunities, including a large exclusive off-market project that we hope to secure and announce to the market shortly. In construction, despite industry headwinds and the very disappointing losses we experienced on predominantly two projects this period, we are positive on the go forward outlook. We have secured a backlog revenue of AUD 6.2 billion at half year 2025, materially up 59% on FY 2024. Revenues anticipated to increase to more than AUD 4 billion in FY 2026, projected to be a 30% increase on FY 2025. Fee-based work now representing 54% of secured backlog, construction inflation returning to pre-COVID levels, and a stronger preferred workbank of more than AUD 9 billion that provides a strong growth outlook for FY 2027 onwards. Most importantly, profitability is anticipated to return in second half 2025 onwards, with project losses fully recognized in the first half of 2025. EBITDA margins are anticipated to trend towards historical averages of 3%. In CRU, we remain committed to the FY 2025 target of AUD 2.8 billion of capital recycling initiatives, targeting a further AUD 600 million plus of recycling in the second half of 2025, subject to valuations. These include a number of transactions already underway. In international development, our targeted project completions over the next 18 months remain on track, and across the portfolio, we'll continue to explore opportunities to accelerate and optimize the release of capital. Finally, my management team and I remain focused on securing new growth opportunities, completing future capital partnering, joint ventures, and land sale transactions to optimize the group's balance sheet and improve the future outlook for the group. We'll provide a more fulsome update on our progress at the full year results. Moving now to Slide 23, the FY 2025 financial outlook. We are focused on growing and improving the performance of the investments, development, and construction segments. Guidance for the group's earnings per security remains unchanged, with $0.54 to $0.62 per security anticipated for FY 2025. While the composition for secured or highly probable earnings has varied, as is the nature of our business, the quantum anticipated remains broadly the same. A higher proportion is now expected from IDC, due largely to the inclusion of profit from the Capella Capital sale and a lower contribution from CRU, largely due to the removal of land parcels from the communities transaction. Earnings for the second half are supported by profits from the completion of the Military Housing sale and announced Capella Capital sale. Then, additional contributions are expected from recurring earnings in investment management, contracted development settlements, and anticipated margin from secured construction earnings. Those earnings, along with declining interest and other costs, support our outlook. Turning now to the group gearing. Gearing is expected to materially decrease in the second half 2025, moving down towards but remaining above the top end of the target 5% to 15% range, and is expected to be within the target range by the end of FY 2026. In closing, our results for the first half 2025 reflect significant progress in line with our refresh strategy announced last year, as well as a return to statutory profitability. We continue to move at pace to simplify the group and focus on improving our operational performance. Our priorities remain strengthening our balance sheet, returning capital to securityholders, and importantly, redeploying capital to grow future earnings in our core business. We'll now open up for analyst questions. Thank you. The line is now open to analysts. The first question comes from Simon Chan with Morgan Stanley. Hi. Good morning, guys. Hey, Tony, in your closing remarks, you seem pretty confident about the, at least in the term outlook, right, with Military Housing, Capella sale, etc. Just wondering, did you guys consider tightening FY 2025 guidance on the back of this, given it's still a pretty wide range in the scheme of things? Yeah, I think, thanks, Simon, for the first question. Look, I think the nature of our business, there is a level of volatility, and we think that continues to remain the same. There are a number of transactions the group is still working to secure. So at this point, we are very comfortable with the guidance range remaining unchanged. But as you have stated, that is correct. We've got Military Housing, we have the Capella sale, and we've had a number of initiatives that support that guidance outlook. Plus, just core to the business is around the investment management fee income, the co-investment income, our construction secured book. So I think at this point, we're staying unchanged, but as we progress some of the other initiatives, we'll be back to market to update on progress. Great. And just on asset sales, can you confirm that the original AUD 2.8 billion bucket that you had for FY 2025 remains broadly on track for completion? Because I noticed TRX Ardor retirement living is still outstanding. And you didn't really refer to that on slide 22 on the operational outlook for CRU. So can we get some comments there, please? Yeah. So, Simon, those three transactions, so TRX retail is underway, and so that process continues as we aim to conclude that process. Both the retirement in China and our Australian retirement assets, again, those processes are underway, so very focused as a management team. We've also clearly stated to the market we're looking to accelerate capital that sits in international development, so we are looking at other ways to release capital faster across that other part of the portfolio, so all those initiatives are underway, with the management team and I also very focused about how we optimize the rest of the international development capital. Great. Just the last one for me. AUD 1.5 billion of new mandate wins across Australia and Asia post-balance date. Can you articulate on those wins? Are there more opportunities in the pipeline, or was this one more ad hoc or good luck, etc.? No, these were mandates that we've been tendering for in the market that have come up. And so there's one in Australia, which we'll announce as we close that and have that launch in April. And another mandate we've secured from a key capital partner across Asia to invest across both Australia and Asia. So I think for the group, that's a focus of us is to grow that. Pleasingly, very low capital balances need to be invested alongside this capital. So that's what we will continue to focus on as the group aims to grow international investment management. That's great, Tony. Thanks. Cheers. The next question is from David Pobucky at Macquarie Group. Good morning, Tony, Simon, and team. Thanks for taking my questions. Just on the first line, in terms of the kind of nearer to medium-term earnings outlook, can you talk to some of the key items that you can see today that will drive earnings in FY 2026 and 2027, please? Maybe if you can talk to some of the key development projects that are expected to contribute? Yeah, I think we'll provide a more fulsome update, of course, for FY 2026 at the full year results. However, when I look at the go forward look at the business across investments, development, and construction, I think investments is underpinned by $50 billion of funds under management. I've highlighted that there's been new mandates won in the second half, so we anticipate that fee income to continue to grow going forward. There is good sustainable recurring income that we assume will grow into 2026. We're very focused as a team managing the cost base there and driving better performance from margins. In the construction space, we've highlighted that we see the construction book growing to $4 billion of revenue into FY 2026. We believe we will get back to our historical average EBITDA margins, circa 3% for the Australian operations, and with the AUD 6.2 billion of work we've secured, we feel we're well placed alongside the other AUD 9 billion of preferred work, so that puts the construction business in a good place. In Australia, we are very focused in the short term on the restocking of the pipeline, so there is some AUD 20 billion of more near-term pipeline that we've been focused on, and hopefully we can announce some of those transactions both off-market and on-market that will start to show the future pipeline for Australia post FY 2027, and as I highlighted, the One Circular Quay development has really progressed in terms of both execution of construction plus sales at 77% now pre-sold, and we're sitting on some AUD 3 billion of future apartment settlements in the book. Then finally, we anticipate both interest coming down as we reduce our gearing levels, and so we expect that to reduce. We've been very focused on the cost out, and we see our go forward overhead running at $400. It's hopefully a bit of a key snapshot of the things to look forward, but we'll provide a more fulsome update at the full year result. Thanks, Tony. Appreciate that. Just my second question around gearing and the potential launch of the buyback. Are you still targeting that $500 million initial quantum for the buyback? And maybe if you could provide a bit of color around how we should be thinking about the timing of that, please. Yeah, I might get Simon just to talk about gearing and our view on when we'll intend to announce the buyback. Yes, just certainly. Thanks, Tony. I mean, at the half, gearing did remain elevated at 27%, but there is a very clear pathway to deleverage the balance sheet with some of the capital recycling initiatives that have already been received. We've got AUD 1 billion in since post-half year end, and we have contracted settlements as well coming in, and we've also got the Capella sale and working through a number of other initiatives, so directionally, there's a clear pathway to deleverage the balance sheet. I thought the quote in the ASX was reasonably strong in terms of around intent, where we very clearly said on executing the AUD 2.8 billion of capital recycling initiatives. So that's the 2.8 in that first bucket that we called out all the way back in May 2024. And reducing our gearing, we intend to announce the securities buyback in accordance with the guidelines announced in our May 2024 strategy. What we need to look for as key triggers is just making some further progress on some of these key capital recycling initiatives, which Tony's just spoken to, whether it be TRX, Ardor Gardens, Retirement Living Australia, processes all well underway. And then one can refer back to the guidelines that we put out in May, where we talked about those conditions to launch a buyback. It is certainly management's intent to go through with that. And at that time, and there's no change, we sized it up at up to some 10% of capital, which was roughly AUD 500 million. Great. Thank you, Simon. Thank you, Tony. Your next question comes from Tom Bodor at UBS. Good morning, Tony and Simon. I just would be interested in you've talked about sort of construction in the core coming back to a profit in the second half, now that those loss-making projects have been sort of realized. What I'd be interested in, though, is just what's the risk retained on the non-core construction businesses that have been sold, and what are your expectations for that in the second half? Thanks, Tom. I'll answer, and then Simon, you can add any further color. But the way I would look at the construction international sales today, we've now completed on the US construction sale. We have maintained a level of tail risk. We do have provisions and insurances that we believe will respond to manage that risk going forward. On the U.K., which we've just announced, that sale we are targeting to complete in the second half of this year. We have realized and booked some provisions against tail risks and liabilities that we believe sat in the business as we were progressing the sale. We do expect some profits to be recognized on sale, but net neutral to the organization in terms of that tail risk exposure, so there is a level of tail risk that maintains going forward, but we do believe we're provisioned and have appropriate insurances in place to manage a large part of that international construction risk exposure. So to be clear, though. That perhaps, Tom, Is that one can take some comfort from the fact that they've been through both third-party diligence exercises, and of course, we're looking at things very closely with a view to understanding in a lot of detail any tail liability risk that we're retaining, so there's been sort of very thorough sort of project-by-project involvement by management. So never say never, but one would hope in terms of surprises that there is nothing out there that we're not currently aware of and tracking. Okay. So is it fair to assume that you've pulled the negatives into this half and from next half, there shouldn't be losses associated with those two businesses? I think that's a fair comment around the UK construction business, where we've pulled in some provisioning on some projects, which is subject to claim. Those claims sort of became more evident during the first half of 2025. So there's some provisioning being brought in around that. Based on the sort of the headline price, one would expect a modest profit to come through on the UK construction business. But again, we're working through and assessing the tail liability risks on that, which I'd expect there to be some. So I don't think it's quite as simple as saying all provisions booked in the first half and all gains in the second half, but certainly weighted to the first half in terms of provisioning. Yeah. No, I would just add we've done that work, as Simon pointed out, around the diligence thing as we've been divesting these businesses. I think we've spent a fair bit of time making sure we've covered off all the known risks and provisioned for those known risks. And with construction, you can never predict if there's any unknown things that do occur. But I feel we've done a fair bit of work, as Simon pointed out, to make sure we've taken the appropriate provisions in this first half. Okay. Thanks. Then just on the buildings completed in the period in non-core, the Turing Building and 60 Guest, what's the leasing on those two buildings? At the completion of the half, it was low, but on the Turing Building, it's pleasingly that we have now got to a position where we've signed a heads-of-terms with a tenant, which would see us securing over 30% of that building's lease. And also we are in some detailed negotiations with other potential tenants, so we should see that tick up in the second half. And the Forum, they're currently in market looking to secure tenants. So it's very low at this point in time, but very much seeking to improve that leasing for the Forum building there. Thanks. And just the last one on the co-investment yield, it went down from 3.1% to 3%. Just wondering when you expect that to sort of get towards, I think, the 4% that you're sort of targeting there. I think just in terms of the overall yield for the assets and just to make sure we've just given a bit of color. So the overall gross yield runs at 4.4%. And then the distribution yield from the organization runs at that 3%. That's taken into account taxes, interest, and other fees that do come out of that. So we've seen improvement overall on the gross. I would anticipate as we stabilize a couple of other assets and the like, we'll continue to hopefully see that move forward in the right direction, Tom. And I'll just add, obviously, interest rates and the interest rate cycle and the point we're at in the interest rate cycle are key inputs into that delta between the gross and the distribution yield. So to the extent that we see rates easing in certain markets, we should see that gap starting to close. Thanks. Your next question comes from Suraj Nebhani with Citi. Oh, thank you. Good morning. Just to add on Victoria Cross, I did note the small impairment that you've called out there. Is there any potential for, I guess, you guys to make a profit there once the leasing goes? You've also taken an impairment this half and last year as well on that one. Yeah. I think we are progressing on leasing. I mean, it's pleasing that we're at 25% leased now. As you point out, Suraj, we've got in discussions another 30%. What I would say is since the metro's opened and the speed to commute from Martin Place is five minutes to Victoria Cross and from Barangaroo, where we are, it's three minutes. I think it's really brought North Sydney into people's leasing priority, and it is one of the most sustainable, it is, I would say, the best sustainable office building in North Sydney. I'm a bit biased here, but I think we're creating a great product, and we're seeing a lot of strong interest. I think in the period, we've seen a slight valuation decrement based on current progress, but I do think there's some opportunity in the future to be able to secure some profit as we progress leasing. I don't know, Simon? I think that's right. I mean, the cap rate, I mean, the key inputs will be any movement in cap rate and also progress on leasing. As Tony mentioned, there seems to be good momentum building on leasing as the precinct is activated. It is a very, very high-quality product. The cap rate's currently sitting in market. So the extent that we see sort of outperformance on leasing or any compression of the cap rate would be very beneficial in the ability to deliver a profit in FY 2026 on that. And when exactly is the targeted completion for that one? Is it the first half, second half, or just trying to understand the timing of? Yeah. I think, Suraj, on that question, I think we'll be targeting to complete that towards the back end of the first half of 2026. I understand. Thank you. And just wanted to clarify on the construction side. You called out two projects. Can you give us a bit more detail on these? When were they signed? And I guess, how do you make sure you don't have such issues in the future? Yeah. I think I'll just say, and I will get Simon to actually add a bit more color on the work we've done across the broader portfolio. On predominantly these two projects, which we've experienced these losses, they were dated back to that 2020, 2021 timeframe, and they were fixed price. So construction as a sector has experienced material cost inflation. Bordering on hyperscale, we've seen buildings increase cost from, depending on the state, anywhere from 25% to 40%. And so I would say material prices, supply chain insolvencies, and productivity issues have been the key issues we have experienced over the last 24 months. And we always stated that inflation would impact us towards the back end of these projects. The one thing to note, we are pursuing recoveries on a number of these on the losses that have been incurred. We have not taken into account any of that in this period. But I might ask Simon just to add a further color just on some of the work we did across the broader portfolio. Certainly. And in front of that, I'll just point out for the second half guidance in terms of recoveries, we've taken a very conservative view on that as well. But in terms of the first half, following the identification of these issues and then the sort of normal course of business anyway, management conducted a very detailed review across all projects at 31 December. There is new leadership in the Australian construction team and business who were obviously heavily involved in that review. And the issues that were identified on those two projects are very much contained to those two projects. And just finally, the future workbook of the AUD 6.2 billion that's secured, we are up materially on the half, as stated earlier. It's up by 59%. The two key features on the future book is 54% of it is fee-based work, which has a lower risk profile. And secondly, from what we've seen over the last 12 months, we are seeing the construction inflation outlook return back to its historical levels of pre-COVID. I understand. That makes sense. And one final one on the development side, I think some of the commentary there seems to indicate a bit more progress on the, I guess, the advanced projects, the AUD 20 billion. You said you're either one or two of the partners in negotiation. Can you give us a bit more color, Tony, on this? Obviously, these are multi-year projects, but is there anything that's expected to come in near term on this or in terms of earnings and in terms of announcements as well? Yeah. Thanks, Suraj. I think on the AUD 20 billion that we are talking about and more advanced, a couple of things I would just want to highlight. Firstly, as a team, we've been focused both on off-market and on-market transactions. So there's a number of off-market deals that we do have exclusive positions now on, and a number of those are progressing. So I won't get into exact details on those as yet. However, what I can say, they are getting one in particular is getting closer to completion and which we'll announce to the market. It is in our core capabilities and strengths in delivering the right, what I would call, residential luxury development that's got the right mixed-use type properties. Then on-market deals, we are bidding for things such as Arden in Victoria, in North Melbourne there. It is a large scheme. We're one of four in that process. And here in New South Wales, we're also one of three on the Blackwattle Bay tender. And so I think that those types of opportunities, which are in market, are progressing. And so I think when [Lendlease] got the right skill sets and these are the right types of opportunities, we should be looking at as an organization going forward. Thank you. My next question comes from Richard Jones of JP Morgan. Oh, thank you. Tony, just the expected development expenditure in the second half, can you give us some color as to what that'll be both in development segment and CRU? And I assume Watermans is the only major completion. Yes. To your point, Richard, firstly, on the second half, we anticipate Watermans, that is correct, at One Sydney Harbour to complete. And so there is some circa AUD 400 million of settlements due to come through. We did get to practical completion on that tower at 31 December. In terms of CRU, also we do have in Singapore, PLG, which is an office building which we're doing in joint venture with Certis, and that should complete in the second half of this year. And the team are progressing on the leasings of their two big completions. And the second half for CRU, there is no major completions, but what you will see into FY 2026 is both Java and Habitat hit their completions. Sorry. And just from a balance sheet perspective, just interested in what the capital commitments that the group's making across the development businesses, both within Australia and within CRU. I think that detailed question we may just come back to because I just don't have that exactly on hand, but we'll come back to you, Richard, with the exact details. And the CRU, on CRU, it's the AUD 700 million which we called out just over 12 months ago to deliver the projects which were already underway, so under construction with joint venture partners. So we're working through that. In Australia, it's obviously depending on the projects secured for the second half. There's still a decent amount which will be coming out, particularly on One Circular Quay and Victoria. But again, that's sort of all contained within the expectations around the balance sheet at 30 June and the gearing guidance has been given. Okay. Thank you. And just any progress? I mean, obviously, you've called out the exit of the offshore land and inventory projects. AUD 1.2 billion of capital sits in that today. It's been some time since you said you will be exiting, and we haven't had any projects transacted. I just want to see if there's any definitive progress that you can call out on any of those projects. Yeah. I think in terms of the capital recycling, there were two categories. We clearly announced AUD 2.8 billion of capital we would recycle in FY 2025, and that really clearly covered six key transactions. In terms of the land holdings at the time of the strategy, there was some AUD 1.7 billion of capital, which has moved now because we've invested money in various joint venture projects. The key project that completed in terms of land sale was Elephant Park, which we closed for some AUD 190 million in that first half. So that's brought back 200 million in the 31st of December this year. What I have called out, we will continue to focus on capital release and try to accelerate that going forward. So we have prepared all of our land we 100% own and also working with our partners around the land management to ensure that we do drive and accelerate that release of capital. Just finally, I do want to touch on there has been a significant movement in FX in those balances in the period as the Australian currency depreciated pretty significantly against a number of other currencies. And that would have circa been about AUD 300 million that impacted the asset values and actually lifted that upwards in this period. Okay. One more quick one. Just Watermans, 74% pre-sold. It's now reached completion. Just what would your expectations be on the sell down of the remaining apartments? Yeah. So, I think at the moment, we're making strong progress. I think Watermans has got some circa 20-25 apartments remaining for sale. So, I think we've progressed the sales of that quite well. And the team are very much actively in sales mode both across that and across all of our residential projects which are currently in the market for sales. Okay. Thanks, Tony. Your next question comes from James Druce with CLSA. Yeah. Hi. Good morning. Just following on from Richard's question on cash outflows into the second half and beyond. What should we expect in terms of the provision unwind or anything from engineering? The provision unwind, just to get clarity, James, what are you asking there? Just the unwind of some of the provisions in terms of the cash impact. Sorry, across the construction part of the portfolio? Yes. So, in terms of I might just start firstly. So, we continue to progress the completion of Melbourne Metro and various other areas that we've provided. We anticipate it being probably circa around that AUD 100 million in the go forward 2026. And then in the second half of the year coming, we're probably going to about AUD 200 million that we're anticipating. But Simon. On the construction business with the U.S., it's largely unwound, so I don't expect any material movements there. In the U.K., as we work through and complete on that transaction, expectations are about AUD 100 million in terms of impact on cash. Okay. Fantastic. A really simple question. I think you actually said it in your remarks, but if you break down the AUD 1.7 billion contracted inflows in the second half, can you just provide that breakdown again, please? Sure, so you've got AUD 1 billion on the capital recycling that's already come in, so that's split roughly half-half between receipts from the community sale and the Military Housing sale. You've got the disposal of or the announced sale of Capella, which is roughly AUD 200 million. And then the balance there is apartment settlements that have been secured generally. That's the Barangaroo stuff. Okay. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Ben Brayshaw at Barrenjoey. Hi, Tony. Thanks for taking my question. I just wanted to clarify the three key CRU sales that you're targeting at TRX, Ardor Gardens, and Retirement. Have they been assumed to complete in the second half of this financial year? So, in terms of processes on the way, we do have those three key processes on the way. What we've assumed to complete in the second half is another AUD 600 million plus of transactions. So, we'll continue to run hard to close those. But in terms of our assumption around what's completing of those, we're assuming at least another AUD 600 million cash flow coming through in the second half across those. Okay. Perfect. And just when you look at those three projects in totality, how should we think about the carrying value? Are you confident in being able to recover the current book value for those three projects? Yeah. I think what we are targeting to be able to come out of those projects at the book value. I would say we're making progress on the TRX sale, and we're progressing both the other two, but we are assuming at book. And we always said we're going to balance value realization and getting that cash back in with the right economic outcome for our securityholders. So that's the balancing equation we need to really drive to close those three active deals that we've got on at the moment. And importantly, I mean, at book means no profit is included in the guidance, and similarly, no loss is included in the guidance. So, we're just assuming to get these back with the focus on recycling the capital. Okay. So, are you broadly saying that you think there's enough profit embedded in TRX to offset some valuation risk on the downside in the remaining two? Is that how we should potentially think about it? I think to the point we're saying we are targeting to realize value at book across all three. And to Simon's point that he just stated, there's no profits we've assumed that will come through or losses. So it's just making sure we balance and execute those transactions at the right level of speed for our securityholders. Great. Okay. Thanks for your time. There are no further questions at this time. I'll now hand back to Mr. Lombardo for closing remarks. Thank you for all joining the call. I just want to reiterate, our priority for the group has been to strengthen the balance sheet, return capital to securityholders, and importantly, redeploy capital to grow the future earnings in our core business. Thank you all for joining the call, and I look forward to speaking to various analysts later today. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.