Thanks for joining us in this briefing. We released our third quarter business updates this morning. Hope you had a chance to take a look at it. Before we jump into the session proper, a quick brief on the agenda for today. We have our CEO, Tony, to share the third quarter highlights. Following that, we'll have our Q&A segment. With us here today, we have the management team. In addition to Tony, we have our CFO, Wong Mei Lian, Head of Investment, Jia Ping, Head of Portfolio Management, Lee Yi Zhuan, Head of Investor Relations, Mei Peng. I'm Alison from the IR team, together with my teammates, Khalid and Chen Xiao. Let's dive into the briefing. I would like to invite the man of the hour to share his insights on the third quarter. Tony, over to you. Thanks, Alison. Not just the man of the hour. I think it's a team effort. Good morning, everyone. Thanks for dialing in. We have released our third quarter results this morning. I hope you had plenty of time to look at them. Before I start off, I thought I'd give you a little bit of context, in this number, that will be useful for you to look at through your analysis. Back a little bit, you also know that very well, we have been riding a little bit on the nice coattails of the reopening effect since the third last year, when we finished a stream, carrying the momentum in the first half. If you recall, I was a little bit more focused for the second half this year during the outlook that we've seen around the world with a fairly uncertain interest rate environment. I think the quarter turned out to be slightly better than what we stated, which helped set our ground strongly. Operating metrics continued to be very resilient, in fact, I would say quite effective, a early return to normalcy as in 2019. I think the impact coming in the second half of the year, what we enjoyed on the two week outlook in the first half will slowly be eroded as a result of higher base last year. No doubt we have resilient streams overall, the base effect in the second half will start to even out the performance for certain countries. Nevertheless, I think things that we could really take comfort is that the sequentially on the quarter to quarter remains fairly resilient, especially when we compare second quarter to third quarter, with the help, at least from a details side, our performance from China sequentially remains fairly flat between second and third quarter. On a higher base, having said that, this nevertheless gives us a little bit more confidence that hopefully fourth quarter will turn out to be better than what I have stated at the beginning of the year. Our team are sitting tight. We know that the environment is very volatile. Strategically, we need to be a little bit more defensive. We have done so. We've been very proactive in our cost management, proactive in our lease management. Hopefully, we'll be able to deliver a reasonably good outcome this year. As I mentioned earlier, I think our operating metrics have been pretty stable. Portfolio occupancy has gone up slightly on a compact view first half that we reported. We have seen also portfolio occupancy increase more or less across the board, with a slight dip in Australia. Rental growth continues to track positively, albeit at a slower pace as I mentioned before. Eventually, Q on Q, I think we are seeing a little bit of that disconnect. For the year, against the high base, we achieved a 4% tenant mix improvement compared to 6% last year. Financial-wise, third quarter for NPI level, we had a 3.6% year-on-year growth. You can see more or less across the board with a quite good performance coming up from our integrated facilities. Year to date, just right on to third quarter and the first half we reported, again, like I mentioned earlier, year-on-year is slightly lower compared to what we have reported this half. We expect that effect to continue to run for the fourth quarter. On the balance sheet side, I think we remain very prudent. We took at our leverage as well, not a little bit on the back of our distribution that was done in August. We'll be very prudent in our cash management, as I mentioned right from the beginning about the importance of cash management this year. Make sure that we would try to avoid unnecessary drawdown loans. Potentially, towards the fourth quarter, you can see a little bit easing of the leverage. The other metrics first, I think, the one to watch out for is, of course, the average cost of debt, it's been up a little bit by 2.1% compared to Q2. Debt duration, I think this one we mentioned before, this year more or less we are done with small amount of refinancing, which we can easily entice in our existing facilities. As in 2023, four quarters, the majority of the debt maturity will come in the second half of the year. Committed occupancy, I think overall, as I mentioned before, compared to first half, we are looking at very fair for the year. This one, nothing to shout about. It's just a reflection of our very proactive management of our tenant mix for the business. Running into things in four. In the box there, you could look at and find some of the key leases that we are in active negotiation and hope to close it either during hopefully in the first quarter, or if not, early part of next quarter. This one, I don't think I need to say much. I think we'll continue to see, no doubt, there's a little bit general overcast in the market. We'll continue to be able to sign new leases as well as renewal, that resulted in a higher occupancy. Interestingly, I think we are still hunting kind of an employer when we are talking from the market. Albeit decision-making may take a little bit longer time given the current economic environment. Nonetheless, we will continue to be proactively managing our leases running into next year. Rental reversion has been very encouraging. It makes up 7.8% on average compared to first half this year where it lies below that. We still continue to see a more robust uplift coming from downtown compared to suburban. Nevertheless, even suburban, we are seeing a quite healthy uplift in terms of rental reversion as well. These are just indication of the new. We continue to be able to bring in new to market into Singapore. Some of the names are flashed here on the screen. To a large extent, I think it's a reflection of the general retailer sentiment. On the back of a very healthy tenant mix we are seeing this year. We will continue to pursue new interesting concepts to our mall. Hopefully, our mall will always be able to differentiate ourselves from our competition. This one I won't talk too much. I think the trend is similar, we see a more significant uplift in terms of traffic as well, which is in line with what we see for the tenant mix in downtown. Tenant mix across the board, you can see these are the segments that we are seeing growth, not much different from first half. Interestingly, we've seen a little bit of a trend in terms of the kind of trade that do well in downtown and suburban are fairly differentiated. For instance, if you look at overall supermarket, you've seen a net decline. But actually, the decline comes largely contributed by the suburban with our downtown supermarket actually tracking a healthy 15%. In fact, it grew about 7%. So in a way, it is a reflection of the commuter trend of capturing. We're seeing more and more people go back to the office, downtown is a little bit crowded. The ticket size is smaller, but certainly it's providing a healthy boost in sales. We see more office people traveling into Singapore and hence, to some extent, you can get the feel of a crowded, even for basic necessity, quick consumer necessity products. On the other side, aggregation, naturally, you see most of the contribution coming from suburban. Just to give you a flavor. On the office side, we've also been able to sign new leases, mostly in Singapore, but also in Germany. But these are actually just in our general assets, not located in our properties. We continue to pursue that proactively. We're trying to find the best fit spot in terms of getting the most out of the building and the floor, property owner and the annuity for the market. Overall, the average rent also is tracking higher as a result of new leases signed and renewal. On the outlook, I wouldn't want to delve too much into property uncertainty anytime. This year is a year we need to be very, how to say, careful when we look at our performance. We certainly will still be looking for opportunities to bring uplift to downtown. When we look at AEI opportunity and we continue to do that, we need to make sure that we drive a very, very consistent cost management to ensure that we stay on top of the continuous improvement in the cost management. With that, I'll probably end here and happily open to any questions. You might seem to have questions. Okay, before going to the Q&A, some housekeeping rules to note. If you have any questions, please raise your virtual hand and then wait for your name to be called before unmuting yourself. Limit to two questions each round so that everyone can speak for airtime. If you have more questions, you are welcome to raise them in the next round. Alternatively, you can use the chat function to submit your questions. Please note that we will do a hard stop at 11:45 today as we have another engagement after this. Okay, with that, let's get started. I can see Mervin, as always, the first one. Mervin, you may unmute yourself. Yeah, thanks for the opportunity. First question is, wondering if you could give us a sense of what the occupancy cost- Sorry, Mervin, don't think we can hear you. Can you hear me now? We can hear, Mervin. Okay. Yeah. I was just wondering whether you could give us a sense what the occupancy cost is currently. Yeah. Obviously, I don't know whether people are trading down and the tenant sales growth is starting to slow down, to see, give us some sense how high you can push rents. My second question is, can you give us an idea what is the electricity cost currently on a per kilowatt hour basis, and whether it's expected to drop next year? The reason why I'm asking is because the NPI margins seem to have dipped Q and Q. I'm wondering whether that's electricity cost related. Thanks. Occupancy cost is still pretty healthy. For third quarter, we are about 16.9%, slightly higher from first half, which is 16.6%. I think we are still in a healthy range. Wait. It's a bit echoey here. On the utility rate that we are locked in, I think I mentioned before, second half is lower than first half. In fact, for 2024, on an average basis, you should expect it to be lower than the entire 2023 because of the high base, the high rate in the first half of 2023. That's one factor. I think the margin is a combination of a few things. It is generally, I think, of course, higher activity in a more high occupancy overall. We have, of course, a manpower cost that has gone up as well. I think the overall operating cost environment is elevated. We have not fully factored in some of the savings, which we hope we will be able to see as a result of our restructured PMA. That should come in gradually as we run the operation. Yeah. There's a little bit of minor movement in term of OPEX here and there. It's not 100% attributable to just the utility rate. Yeah. The electricity cost, how many cents per kilowatt hour will you be getting in 2024? Is it in the mid-twenties? What number would it be? We're locked in about SGD 0.397. Yeah. This second half is, I presume, mid-thirties. Second half SGD 0.397 as well. SGD 0.397 also second half? Yeah, same. Same. Okay. All right. Thank you. Next Rachel. Rachel, please unmute yourself. Hi. Morning, Tony. Thanks for the call. Yeah, this is so much better now. Right. Maybe just first question for me in terms of outlook on your reversions, both for retail and office. I think, Tony, you spoke that occupancy cost is still very healthy. Is there any chance out into 2024 we're still looking, what kind of reversions are we looking at? That's my first question. Yeah, I think we're still keeping a potentially single mid-digit reversion. We are working towards that. If you compare our occupancy cost now and back to pre-COVID day, I mean, there's still a gap. Generally, I think we're still in a fairly comfortable position, so long as, I think, we don't see a significant decline in tenant sales. That would be a major effect. Yeah. As of now, we hope things will ride through. The general economic outlook is a little bit cloudy. Hopefully, we see some green shoot. Naturally, I think that people are looking towards this part of the world and whether there will be real bottoming up of the impact from China, which is a big overhang now from most businesses in this part of the world. Although we see some mainland Chinese are coming back to Singapore gradually. We are hopeful. I think that would be a good base that would give some momentum in term of consumption. I think overall, the environment from a local business perspective, it still looks pretty healthy. Business-wise, on the ground, I think generally, of course, most companies will be planning ahead, depends on the outcome of course, the most renewed conflict that we are seeing now. Otherwise, many expect that may not have a significant spillover effect. Hopefully that's true. Then the business environment can resume in a more cautious, maybe a lot more optimistic way. Yeah. At the moment, I think it hinges on the entire business environment and of course, that will translate into whether the consumers still feel good. I think one quick takeaway we see healthy, at least in the domestic perspective, is that we are seeing a declining core inflation, I think, which is why you look at the overall rate impact vis-à-vis what you see in a major economy like the U.S. The reaction on the rates in Singapore has been a little bit more muted. That's, I think, one positive takeaway. We are a little bit cautiously optimistic in a sense. Hopefully, consumer with a few likewise going into 2024. How about office? Is it still the same mid-single-digit positive? Yes. I think we're still looking at a mid-single-digit kind of expectation. If you look at our expiry profile, no doubt, if you read some of the report, some consultants are putting a bit of caution in terms of outlook. We look at it, and we naturally compare that against our own portfolio, the outgoing rent this year. It's not very demanding. I think it is a rent level that hopefully could be supportable with a single-digit kind of reversion. Okay. Thanks, Tony. My second. Well, maybe Chuan, my colleague, can give you some flavor. Oh, sure. Yeah. Office. For office, I think, Sorry. Sorry. For office, I think we are looking against our outgo expiry numbers. I think largely what we are seeing in the expiry rents for next year, a lot of them are below the market rent of around SGD 11.85 based on CBRE number. I think that gives us a little bit of buffer and support when it comes to renewals, which is something that, come 2024, will be one of the key strategies in terms of defending our occupancy. Of course, I think right now what we would also see is in the first quarter next year when IOI starts to come on stream. There will be a little bit of fight in terms of new supply which might give a little bit of pressure in terms of rents. From our understanding, we don't think IOI is actually holding out their rents. I think it's generally okay. We have also seen shadow space. Encouragingly, this quarter, the shadow space available in the market actually came down quite a fair bit, and we will monitor this. I think it helps to further support that even though we think rent will be a little bit pressured in the next few quarters. It should still hold out in the longer run. Yeah. Yeah. Increasingly, you'll see more tenant would probably be a bit more careful about doing a movement. Given an outlook that's still up in the air. It's already reflected in our own performance. We see more and more tenant will tend to want to stay. Similarly, I think our landlord will try to strike a deal that's palatable both sides. I think that's probably you're gonna see that play out in the market in the next 12 months. Okay. Thanks for the colors. Very helpful. My next question is really on asset valuations. What are your thoughts? Have you changed since we spoke in second quarter? Given gearings is quite close to the 41% mark, at what levels of your gearing post the asset valuations review in year-end, would you then take an action to bring down your gearing? Yeah. I think our, no different from the tone that I set in the first half. Generally, I think Singapore valuation is not demanding. In fact, our peers reported for the retail space, the valuation's been pretty okay on the back of a higher reversion number. We expect a similar effect, at least for the retail side. Office side, we also don't think there will be a significant movement. Generally, there's not been a lot of transaction in the market, and most of the office landlord that reported results ahead of us would've already gave you some clue. Overall, I think office demand looks pretty healthy at the moment still. Yeah. Just like them, we are clocking a nice, healthy rental reversion. I would imagine overall Singapore portfolio would be fairly constructive. We'll see headwinds overseas numbers slightly. Last year, we've taken down some assets overseas in Germany, particularly Gallileo, because it's a little bit more risk because of an outgoing tenant with no clear potential infilling, refilling up, and the potential downtime. There has been a bit of taken off that effect. Towards the end of the year, we'll see how the number pan out. We expect cap rate may expand for Germany, likewise for Australia. That may translate into a valuation impact on the downside. Overall, as a portfolio, we may be able to retain in where we are, December 2022, with plus/minus here and there. I think there'll be some offsetting effect from the office numbers in Singapore. Yeah. Okay. Thanks. Just second part of the question, any thoughts of when you would take some action now that your gearing is at close to 41%? I think 40%, 41% is not ideal. If you track our number has been tracking around 40%, 41% thereabout. It fluctuate because on the one hand, you have distribution. On the other hand, you also have receipt, and the receipt isn't healthy. We try to manage cash flow carefully to keep it within the 40%/41% range. Valuation remains stable as where it is, then you would like to see the kind of range, right? We know that we'll be still looking for opportunity to look at any enhancement work to plan other avenues of revenue growth. That we'll continue to do that. Usually, it's backed with a healthy kind of ROI expectation. It will also be potentially valuation supportive. I think those are the things that we can do to help to maintain the fairly stable kind of gearing outcome. Of course, having said that, it certainly doesn't give us a lot of financial flexibility, having a 40%/41% kind of rate level at current interest rate level. At the appropriate time, we may look at some portfolio rationalization. Hopefully that could be one area to give us a little bit more financial flexibility to look at any kind of avenues to improve our revenue outlook as well. Yeah. Okay. Thanks, Tony. Thanks for the color. I'll leave others to ask questions. Thanks. Thanks. Thank you, Rachel. Vijay, please go ahead. Yeah, hi. Morning, Tony. Can you hear me? Yes. I can hear. Yeah. Morning. Just to follow up on the earlier questions. Did you try putting any of your assets in the market at this point of time for potential divestment? Was there any reverse inquiries for your assets which you considered? What kind of demand is there out in the market at this point of time? Yeah. We do not purposely put our asset out in the market. We certainly have dialogue with some third parties who have interest. Naturally, that may not lead to anything, but we're certainly open to discussion and see where we land. There are interests coming from different buying sector. Some of you probably know, there are some family offices are looking to get into this space. Those one potential pool of potential buyer. Family office is one. Even individual high net worth, there are. Ticket size may vary. Again, those are dialogues that we hear in the market, and also sometimes we get it from the agent that speak to us as well. I think it's a bit diverse, but it's not as wide as it used to be. Unlike in the past, you get a fair bit of private equity firms who are looking to deploy. Today, I would say we still likely more I would characterize it as improving in term of buyer-seller expectation, sentiment. We have seen some transaction out there. Ticket size seems to be also getting bigger since our en bloc transaction that's gone through. I think the market is slowly working its way through in term of where would be a transactable price. This is what we observe in the market. Jacqueline, maybe you want to add any colors? Maybe my colleague can give a little bit more colors. Invest activity in the market. Yeah. Can you all hear me? Yes. I think like Tony said, I think we are seeing a bit more pickup in investment activity in the last couple of months compared to, say, six months ago. Especially in the Singapore and Australia that we've picked up. In terms of our portfolio, I think we do receive inquiries. Like we said before, each inquiry, we always evaluate each asset according to whether what is the best value, best use case. Be it a divestment, AEI or redevelopment. We do constantly evaluate how best to dismantle. Yeah. Sorry, there's a lot of echo in the past few months. Sorry, there was a bit of echo in the last few sentences. It is. Investor activity has picked up in the last couple of months. As far as our portfolio is concerned, yes, we do receive inquiries and we will always evaluate each plan and then each asset according to what's the best value for that asset. Whether it's a divestment, AEI, redevelopment, et cetera. Got it. Would I be right in saying that the baseline would be at least at valuation or above valuation? You are not considering any divestments at discount, even if it is a non-core assets? Whatever divestment, if any, will have to be value accretive. We want to make sure that's the best value. Yeah. Okay. My second question is in terms of WeWork leases, has there been any negotiations or conversations going on in terms of what it is? Are they paying up on time so far at this point of time? What sort of rent clauses do you have for these leases? [inaudible] We're still in dialogue with We Work at this moment. We can't divulge much. Certainly, they're still our tenant, and they're still paying rent. That's all we can say. Can I just confirm, I mean, the rents were around SGD 7 per square foot when they were signed. Am I right in saying that? Many are confidential. We can't share the commercial term with our tenants. Okay. Thank you. That's all I have. Yeah. Thank you, JJ. May I, Shane? Please go ahead. Hi. Morning. Can you show us more colors on CapEx that you can reveal? Can you hear? Yeah. Can you hear me? Okay. Yeah, I can. We are still in discussion. In fact, in very detailed discussion with the prospects. In fact, all into the technical details, what are the specs required, because these are the necessary information that has to go into any kind of lease agreement. Where we are now, we are at the very late stage, discussion on those technical specs. Those specs will have implication on the CapEx that may be required. Some may have relevance to the base building effect. Some will have a spillover into an area that the tenant may be required to put up in place. I think those are technical details that are still working out on the ground at the moment. We certainly will share when we have something that comes to a finalization. Yeah. Okay. In the downtime, we still expect the same downtime, 18 months or so. Yeah. Okay. Got it. Given gearing, is it fair to assume that acquisition is off the table until we see some divestment, if any? Let me put it this way. In today's climate, we tend to be a little bit more defensive, which I've elaborated earlier, right. Defensive doesn't mean that we don't look at opportunity. Right. It has to be holistic. Naturally, the first thing we look at is whether the asset makes sense, then we start thinking about how best we can fund it. It could involve various options, which we have done before, whether we should recycle some capital. It's all a combination of some. I think those are the things that we cannot cast off our radar. From a posturing perspective, a lot of things have to come in alignment. The market be there must be a funding market available. Potentially, are we able to monetize the assets? I think all has to come into the equation. Yeah. We potentially may not get everything aligned on straight line, but if the majority of those conditions are in place, then we can really thought about a kind of inorganic transaction. Otherwise, we will be fairly defensive, trying to make sure that our assets work hard. We can also start exploring. Hopefully, the cost structure will come off, whether it makes sense to redevelop certain assets, which we've done before, and get into some kind of detailed analysis and study into various assets. Those are an important part of our portfolio construct. Yeah. In terms of opportunities, do you see more within the sponsor or third party? In fact, both sponsors don't have a lot to be here. Naturally, I think if you look at flows, you probably see more third party, and you may be aware there are some third party deals out there. They could be also competing if there's a buyer who are interested to look at our assets, they may be also represented to those potential buyer. Certainly, we look at the assets. If it doesn't make sense, we give it a miss. Yeah. We walk away a couple of deals before. Okay. Thank you. Thanks, Shane. I don't see any hands with any more burning questions. Yes, Brandon, please go ahead. Hey, morning to you. I just have one question on the tenant sales. Can you reveal to us the third quarter growth? Who? The quarter tenant sales. Oh, tenant sales. Okay. Yeah. Tenant sales of the quarter? Yeah, just the quarter alone, the numbers above are nine months. Just the quarter, is it? Yes. Brandon, can we get the figure? I don't have it. Year-on-year is quite flat, actually. Year-on-year is quite flat. I mentioned earlier at the beginning, sequentially, second quarter actually that we are seeing some growth. Okay. Last year, the quarter was high base. Okay. The reason I'm asking is, I think going into year-end and going into next year, looking at the trend the past two quarters, are you concerned that sales could be sort of slowing down? Fourth quarter would be critical. I think fourth quarter is usually the period where you see a lot more activity coming to school holiday. Next week, I think when all the exams are over, when the kids are back, you tend to see more crowd back to the mall. As far as I'm aware, I think the business convention are still active. October, November should be reasonably okay. December, you may see a little bit of slowdown as people are company winding down into Christmas. You have the festive sales that may give it a boost. My reading is that it will be potentially a little bit more muted. Hopefully, we can shift a flat year-on-year compared to last year, having a pretty high base last year. Given what we are seeing now from an economic front, there's still a bit of question mark how things will pan out in the next 12 months. It may translate into a little bit more cost consciousness in terms of discretionary spend. We do expect those necessity spendings to be fairly resilient. Yeah. The other point that to some extent will have impact naturally would be the inflation number. Hopefully that trend continue. Of course, headline is going down a little bit, 5%, but this will tend to be volatile. The core CPI seems to be trending downward, which means that there's probably be less pressure from the central bank to be even tighter in terms of their rate control. That may translate into a potential weaker SGD vis-a-vis other currency, because it's all a trade basket, right? As you probably know, the central bank, the way they manage the currency, the inflation is through the currency system. Hopefully, that will result in a bit of a positive uptake in terms of domestic staff spending. The irony in Singapore is that a strong SGD dollar would have an higher tendency to lead into a more leakage, sales leakage outward. With inbound traveler being less, at least visitor spend may not be as high. A slightly weaker SGD dollar may not be all too bad for the tenant sales in Singapore. Yeah. Okay. That's it from me. Thanks, Tony. Yeah. Thanks, Brandon. Next, Gary, go ahead please. Hi. Morning, Tony. Just wanted to follow up on the occupancy costs that you mentioned, that 16.9%. What would it be like for suburbs versus downtown? Okay. Suburb is about 15+%. Downtown is about 18+%. Yeah. In terms of the trend, is it trending up for suburb and downtown? For year-on-year, in fact, downtown is lower, suburb is lower also compared to last year, right? Q-on-Q Last year, we were in the mid 17% range as a portfolio. The suburban is more like 16%, and then downtown about 19-plus%. Yeah. That's why I mentioned from the onset, I think overall we're still in a relatively okay position from a tenant occupancy cost point of view. Naturally, I think we hope the sales will be able to sustain. Yeah. Right. For reversions, what would be your outlook like for suburb and downtown? We did not split that so clearly between suburb, downtown from a reversion expectation. Rather, we manage it out as a portfolio, which I alluded earlier. We try to manage it within a perhaps mid-single-digit kind of level next year. Right. Just maybe more broadly, would you expect downtown to outperform suburban next year in terms of rent reversions? If we continue to get that kind of momentum, we've seen a little bit of a slower inbound traffic from August, September, right? In fact, slightly lower than the previous quarter, but naturally higher than year on year. If that trend continue, naturally downtown will benefit more than suburban. That may translate into a better confidence level in downtown. Hence, the rental expectation may go up. Yeah. I think our trending is not very different from what URA has reported in the overall index, right? It seems to suggest the Orchard belt, the downtown location, the rent are moving faster. Yeah. Right. Understood. Just on the video, I think last quarter you mentioned, you were in talks with a large tenant, in negotiations with a large tenant potentially out there. Is that still on track or has anything changed? Yeah, we're still talking. That's why I mentioned, maybe you didn't hear me. Yeah We're still talking to the tenant. We are drilling down to the technical specs. These are important things that we need to know now before we can sign agreement. Yeah. Okay, great. Thanks. Yeah. Didn't catch that earlier. Just lastly, on all-in interest, on the interest rate, you did mention that the bulk of next year expires is in second half. Just wondering if you could still share any color on the interest rate outlook for next year. Mei Lian, you want to take that? We have no crystal ball. Yeah. We can only manage within our pool, right? Mei Lian can give you some colors, outlook next year. Sure. I can chip in. Yeah my view. Yeah. I would say that we don't expect to see that kind of magnitude of increase year-on-year versus last year. Yeah. We think that, in terms of the financing cost-In terms of credit margin, it will be still very competitive given what we've been seeing. Wow. Yeah. Yeah. In terms of liquidity, I don't think we're seeing any difference. We still remain accessible to a lot of the financing options, whether it's bond market or loan market. Yeah. If you're asking me to guide in terms of where our average cost of debt would be next year, it would probably be in the range of three half to high threes. Yeah. Okay. All right. Thank you. Thanks, Eric. Next, Mervin. Yeah. Just a question on rental reversions again. I had a look at the historical occupancy cost pre-COVID was between 18%-19%. Given labor cost pressures, is it possible for you to push it to 18%-19%, or will it be slightly lower than that going forward, assuming tenant sales is kind of where they are? I think tenant sales is critical. Tenant sales is on the larger base that will impact because that's going straight into the tenant's operating margin, right? We think it's sustainable and at this level. Whether it should move up to 18%-19%, yet to be tested. We certainly hope inflation number would taper down. That's the real test, right? Inflation number taper down, I think it will have some potential impact on their operating margin and hence whether the retailer, and every retailer, different retailer in the different sector will face different kind of cost pressure, would have a different way to react. I think I alluded before, my own assessment is that with a inflation number, hopefully not moving any further and just coming stay where it is, chances are you see some margin expansion for the retailer. Unlikely you'll see price will come down. That's how the retail market works, is tend to be quite sticky on the price. When it comes to adjusting price downward, tend to be slower. We up. That's the behavior of the retail. I think that if we can contain the overall cost structure in Singapore, potentially you can see retailer enjoying a bit better margin going next year. Yeah. That will give us some information whether the OCR is sustainable or can have some more room to go on. Yep. Just a question, Australian office occupancy, it dipped Q and Q. I noticed based on your appendix, the occupancy levels at North Sydney is close to 21%. Can you hold occupancy at these levels or you think it may drop further from here? I think there will be some potential frictional movement within each building. We would have tenant that would want to move on to other buildings, at the same time we also were discussing different prospects, new prospects, whether we can sign that in time. There could be a different timing. Overall, certainly in Australia, particularly in North Sydney where there are new supply that come in, there will be quite strong competition that we have to face now. Maybe Yi Zhuan, you want to give at on what, anything you want to give some colors? Probably just adding on to what Tony has shared. For Australia, I think the North Sydney properties are probably a little bit more under pressure in terms of occupancy. I think it is 100 Arthur, one of our tenants, is actually known to be moving on to another property. I think the team is actually actively talking, in talks with some potential replacements that can actually cover up quite a fair bit of that space. It is just a matter of when we actually manage to get a commitment versus the expiry, natural expiry. Some of these committed numbers, in occupancy might see some fluctuation in the interim. Directionally, I think nothing much overly to be concerned about at this point because it is just common trends that we see. In terms of incentives in the market, I think we also see the North Sydney site, because of the higher competition amongst the properties in the North Sydney precinct, right? We do expect maybe next year some of the incentives number and so as the void periods to probably take a little bit longer. I think right now we will have to work quite hard on the Australia assets for the North Sydney part. As for 66G, those that is on the Sydney side of things, I think things are actually a lot more stable. Just on 100 Arthur, this tenant that is leaving, when are they expected to leave and what percentage of building do they represent? Sorry, Murphy. Can you repeat your question? For the tenant that's expected to leave 100 Arthur, when are they expected to leave or vacate and what percentage of the building do they represent? Based upon the tenant lease, it's about 15%. I think right now it's over three floors, and we are in talks with replacements for around two-thirds of those. They are expected to leave end of November. Of course, we are in talks with something, because some of the issues we are resolving with the tenant ongoing. Okay. That's all from me. Thanks. Thank you. Yeah. Thanks. Maybe we need that in Sydney, which is 100 Arthur. That's the one that we need a little bit more time to fill it up. Of course, the outgoing tenant in November that Yi-Chuan alluded to, due to our space, we are currently in talk with a potential who will take it up. Their wanted space are out in the market now. At the same time, we are also in talk with other new tenants in other floors, whether we can close the deal. Hopefully, there will be competition in the market, as you probably know, that Yi-Chuan has also alluded. It's a question of whether we want to seal the deal and ride through this period of time or wait for better time and keep it vacant. This is a judgment call. Yeah. Certainly tactically, we are doing a lot of things to the assets. There's a general common preference now for main occupier, whether it's in North Sydney or Sydney. We are seeing it in ourself, they want to be in the fitted space. It's also a reflection of tenant not willing to spend the CapEx, right? They look at landlord to do the job. Then there are more flexibility when it comes to moving in at their own timing. We are trying to catch that window for the different buildings that we have, not just 100 Arthur, but as well as the other two buildings. Yeah. You here or Malaysia? Canada. Okay. Kai, what's up? Thanks, Martin. I don't see a raised hand, although I see Sutai's hand earlier. We can take one last question. Sutai, would you like to go or- Yeah. Okay, Mei. Thanks a lot for the opportunity. Hi, Tony. Maybe just two questions. First of all, just when we look at the Raffles City AEI completion, overall, the tenant mix has been pretty successful. Would you say at this point in time, what's your view? Is it like, has it been better than the performance? So far, the overall shopper traffic, in my view, still hasn't moved up accordingly to what you expect a post-AEI shopper traffic to be. Maybe it's because of the third quarter, we have a lot of car park closures and all of that nonsense. Perhaps going forward, you think it's reaching what you expect it to be the returns that you expected? That's the first question. Second one is that overall, in the next 12 months, maybe even slightly later than that, aside from rental growth in the Singapore portfolio, what would be the levers that you think can generate the better returns? Is this going to be divestments or acquisitions, based on what you see on your portfolio? Thanks a lot. I think Raffles City is panning out mostly what we hope to achieve in term of repositioning. In fact, we get quite good traction from return to more. We are not back to pre-COVID, that's for sure. Overall, generally, most of the property footfall has not gone back to pre-COVID. Variety of reason, work from home in Downtown. Tourist viewership is we are not back to pre-COVID. That's already one that I mentioned. In term of the trading performance, actually, it's gone through a significant uplift. Raffles City, I think we have brought in, and it's in line with our positioning, to move the Raffles City one, two notch higher than it used to be. That Robinsons space has been, in fact, give us the opportunity to do that. You have probably witnessed the way we have done at level 1. I stated before, we want to be the key location for the beauty, health, basically the beauty cosmetic. Essentially tapping on that space and anchor Raffles City as the lead location for any shoppers who want to look at that kind of product. We brought in a lot of variety of offering at a mid-higher level. That sort of set the base, because the kind of traffic they'll draw in will be different from what you used to see when Robinsons was around. That's one. Second, while we do the physical work and then fill up the space that has been affected by the AEI, the entire position of Raffles City entails more than that. That includes area that's outside of AEI. We are progressively making that trade and brand remix. You probably have seen some of the new brands that we brought in. The more recent one is Breitling, took up space that used to be occupied by Coach. That location, besides that, a few other key brand drivers that will be critically important to refuel the brand mix, one in Raffles City. The physical work, we have done most of it. The repositioning part, we are probably about 50% there. You expect to see the next 12 to 24 months, more in a way, a real renewal of some of the brands in Raffles City. Yeah. In term of how we want to, I think some part, I talked about it earlier, we would be a bit more defensive, right? I think defensive doesn't mean that we're not investing. We're investing carefully. We're investing into area that will help us to plan new avenue growth. That's a continuous effort that we have to just fine-tune our asset. We've done that. We've done Raffles City. Last year, we've done that at Clarke Quay in a large scale, and we'll continue to do that, whether it is large or small. We look at our individual assets, whether we should do it now, whether there'll be low-hanging fruit that we can tap, and those involve investment that would plant a seed for income stream going forward. I think that's going to be another good driver that we're looking at. Cost management is critically important. We are also looking at holistically, are there further cost driver that will be helpful in a meaningful way? We're studying different things at the moment on a portfolio wide. We can't divulge now. What we have executed in this year was to restructure the property management agreement when it became due, to make it more matching to the top line. The leasing cost used to be all undertaken by leasing costs. It's a manpower cost that goes into leasing the office and tenant. The costs are actually paid by the REIT. Now we have restructured that way so that the cost only comes in when the deals is closed, so it's more commission-based. I think there's a bit more matching on the top line and bottom line. We try to manage the cost that way. That was a major change this year. The other one that I talk about may involve a little bit more longer-term change, where the impact could potentially shift the amount of CapEx that we need to put in to maintain the building in a tip-top condition. Those are the things we are watching now. Very clear. Thanks, Tony. Yeah. Okay. Thank you for your questions. That is all the time we have this morning. Sincere apologies for the technical disruption. If you have further questions, please direct them to us, the IR team, and please do send us your report when published. Thank you, and have a good Thursday. Bye-bye. Thank you.