Can you hear us? If you can you give us a thumbs up? Okay, great. Thank you for joining us today. We know it is an early start, and we appreciate you for dialing in on time. We have the management team with us here today. We have our CEO, Choon Siang. Mei Lian, our CFO. Head of Investment, Jacqueline Lee. Head of Portfolio Management, Yi Zhuan, and the IR team here with us, we have Mei Peng, Tammy, and myself. We will keep things focused today, so we will start off with key highlights by Choon Siang before moving on to a Q&A. I will pass the time over to Choon Siang. Thank you, Allison. Good morning, everybody. Thank you for joining us today. I know it is bright and early for me, too. Feels like we have just spoken recently, and here we are back again. Today, we just announced business updates for the first quarter 2026. The numbers could be a little stale given that we have already spent some time talking about some of the transactions earlier. Also, obviously, we have reported advanced distribution. Some of you would have, if you set out your numbers from there as well, nevertheless, let us go through some of the operating numbers, and then we will take some Q&A. There are some exciting updates in this business update as well. We will walk through in the subsequent slides. First quarter net property income, very healthy, closed the quarter at SGD 314 million, up 8%. Of course, we have gone through a lot of changes in our portfolio, so we need to dissect the numbers a little bit. Overall, a very healthy set of financial numbers, as you would have seen from our advanced distribution anyway. Aggregate leverage, 38.5%, down 0.1 percentage points from the end of 2025. Average cost of debt has come down quite significantly from 3.2% as at December 31st, 2025 to March 31st, 2026. This quarter, in terms of cap market transaction, we issued SGD 300 million fixed rate notes due in 2031, which is a five-year note at 2.18% on March 10th, 2026. Portfolio occupancy, 95.2%, down 1.7% quarter-on-quarter. I will spend some time walking you through some of the reasons why the occupancy is down for this particular quarter. I do not think it is a portfolio-wide reflection. It is actually very tenant-specific. The top three contributors to the decline in occupancy is actually a tenant in Gallileo in Frankfurt. We have the largest contribution, in fact, contributed approximately half of the drop because by NLA, that tenant takes up quite a significant space, and that contributed. The rent on that tenant actually is not very significant. So the contribution was about 0.8% of portfolio occupancy. The rent contribution was actually less than 0.2%. So the impact on the financial is not as significant. Then the second, we have a tenant departure from Funan Office, one of the larger tenants that we have there. Also, the third tenant contribution is a tenant in Clarke Quay that is on the third floor, he is an event organizer. Fairly large space, as you can imagine, third floor of Clarke Quay, very little rent contribution. The financial impact is not as significant as the drop in occupancy suggests. We want to highlight that we are very actively marketing the space. Of course, we all know that MAC itself has some challenges in terms of leasing. We actually did improve the occupancy last quarter. I think when we highlighted last quarter as well, there is always some in and out in terms of the leasing momentum. We will be working quite hard to try to improve the performance for that particular asset. Clarke Quay, it is work in progress. The team is curating the tenant mix to try to dovetail with the completion of Canninghill. Getting some good traction in the leasing discussion, there could be some new names that will show up at Clarke Quay over the next few months. Also for Funan, the office tenant probably contributed about just slightly over 10% of the Funan Office occupancy. We are also actively marketing that space, which we think is transitional, and the office space is actually quite nice because it is fitted out, it should take us not too long to lease up that space. Those are the three main. It is actually very asset and tenant-specific. I think overall, the portfolio is still very healthy, as evidenced by the rental reversions, which is still very healthy at 4.4% for the retail portfolio. For the office portfolio, it is at 6.1% rental reversion. Quite in line with our guidance earlier to be trending around mid-single digits. Tenant sales per square foot up 2.2% year-on-year, fairly healthy. This includes the March numbers as well, even after the start of the Iran war. I think January and February numbers were very healthy, as you can see also from the national retail sales numbers. I think February they reported a 11% increase in year-on-year sales. Of course, there is some Chinese New Year effect, even if you combine the January and February sales, I think, overall, it was up about close to 4%, if I am not wrong. In our malls, we are up about 2.1% per sq uare foot, including March numbers. Next. Shopper traffic also very healthy, up 3.2%. Quite in line with the, I mean, slightly better than the tenant sales. In terms of the updates for first quarter AEIs that we have previously announced, I think they are all work in progress. Lot One, Raffles City, Tampines Mall, all progressing quite well. Divestment of Bukit Panjang has been completed at the end of February. In terms of utilities costs, I think we have been getting a lot of questions in all of our meetings over the last one month. I think I am happy to reiterate that our utilities costs, energy rates, are all locked in across our portfolio. For Singapore portfolio, we are locked in until end of 2026 at a better rate than what we locked in 2025, actually. This year we are actually expecting savings from our utilities costs. For our overseas properties, we are locked in as well until 2027, depending on which property, and 2028 for some other properties overseas. Next. I think we have spent some time over the last few days talking about this transaction already. I will not go spend too much time. We can take some questions as well. I think a lot of you have already had a session with us on this. The market reaction has been fairly positive, so we are quite happy with that. The placement was well oversubscribed at about, just almost 5x times subscribed, just below 5x. That allow us to upsize our placement from SGD 600 million. That's the key change from the last time we spoke. When we spoke it was based on a SGD 600 million equity offering. Now we have raised SGD 750 million, and at a tighter discount than what we originally assumed, which was 2.7%. The price that we did at SGD 2.30 was actually a 2.36% discount to the adjusted VWAP. All in all, very healthy demand for the offering. As a result of that, there will be some adjustments to the DPU accretion. Because of the larger equity offering, our accretion is at 1.7%. Of course, that also means that it allows us to lower our leverage to 38.7%. Previously we reported just slightly over 39%. That also means that it gives us larger debt headroom for other activities that we wish to pursue, at least going forward in the near future. Next. This is the key update for this quarter. We want to also report that we have actually started the process for the AEI at Plaza Singapura and The Atrium. I mean, we have been looking at this for a while. We are now confident to go out and announce this asset enhancement for a few reasons. Timing-wise, of course, this is not something that we take it quite lightly, asset enhancement. It's quite a substantial asset enhancement at SGD 116 million. We have always been quite deliberate in terms of the spacing of our asset enhancements, as you guys are familiar by now. We always try to time it with a minimal, or execute it in a way that has minimal impact on our cash flows. That has already started contributing to our numbers since February and March. Also that, in fact, give us the update in terms of financial performance. That was one of the key contributors to first quarter outperformance also, in addition to CapitaSpring and in addition to ION acquisitions. With Gallileo largely resolved and handed over to the tenant, we think that we are ready to take on another major AEI, which is Plaza Singapura. Most of you are familiar with the asset. It is an asset that has been around for a long time. If you look at the performance of Plaza Singapura on a per square foot basis in terms of rents and sales, there is some room that we can value add, when you compare it to some of the more neighboring malls in downtown, even within our portfolio. The idea is to elevate the positioning. There are some infrastructure upgrades that we are doing. There is also a tenant refresh that we are planning. We will also be probably looking at transforming some spaces into a more immersive experiential entertainment concept. This is something that we are exploring at the higher levels so that we are able to draw the crowd to the top floor. That's one of the key feature and objective of this particular AEI. The other thing that we wanted to achieve was also to dovetail with the URA's master plan. There is a plan to pedestrianize the Orchard Road stretch in front of the mall. We want to now plan for that, the seamless linkage between Plaza Singapura to the Istana Park that is right in front. We will be doing some upgrades at the front to extend the park experience indoors, so that it creates a more seamless connection between nature and retail. To minimize the disruption, we do plan to carry out the AEI in phases, with the mall remaining open and operational throughout this AEI period. Some of the pictures, I think in the next page, artist impression. Maybe go to the next page and show the pictures. There will be some improvements in terms of the facade. There will be improvements to the drop-off point, creating a better experience. The inside of the mall, we will definitely be upgrading to make the space a bit more open. The look and feel, and the tenant mix is likely to see significant changes, at least for the first and second levels, as well as the top level. Okay. I think the other thing that is interesting is also we are creating some of these bridges extending across. I think the idea is also because Plaza Singapura actually is quite a big mall. It's about 700,000 sq ft. The idea is also to create better movement across various parts of the mall. We have all these link bridges. Not only looks good from the Atrium area, but also facilitates the flow, creates a bit more vibrancy to some of the upper floors. That overall effect on the mall is a little bit more exciting and vibrant across every floor and not just focused on the- I mean, today we know that the basement for Plaza Sing is really doing very well. The ground floor is doing well. All we want to do is also to replicate the experience in the slightly quieter areas of the mall. Okay. In terms of the financial performance, let me touch on that. Gross revenue, we are up 8%, but of course, this includes the contribution from CapitaSpring, which previously was reported under a JV structure. MGI up three to SGD 314. Year-on-year, we are up about 7.9%. This also excludes one month of Bukit Panjang because we have sold it in February. There's a lot of movements within the numbers. Okay, next. In terms of capital management, I think we have highlighted a very healthy balance sheet now. We are at 38.5%, even with the acquisition and coupled with the equity offering. These are unlikely to change significantly. Interest coverage, very healthy, 2.8x. I think the key takeaway from this slide is that the average cost of debt has come down to 2.9% from 3.2%. Next. Well spread out maturity profile. I think we only have about SGD 450 million of loan left for refinancing for this year. The rest of the years are, I think, fairly healthy with next year we have about SGD 1 billion up for refinancing. In terms of occupancy, I think we spent a lot of time at the beginning talking about occupancy, so I won't belabor the point. If you look at our retail, actually, it's come down slightly, but I think the largest contributor to that drop was the Clarke Quay tenant I mentioned, but I think the financial impact is very small. Office, largely because this is a combined look, including Germany and Australia. We can have some detailed breakdown later, largely contributed by Germany. Integrated development is down slightly. There are some vacancies in, I think, this is Funan because it's included under integrated development. That's the drop that I was mentioning as well in the Funan tenant. Next. Top 10 tenants, no significant changes. I would just add that ECB, which we have put into the footnote, will feature as a top 10 tenant going forward. We're still in the process of handing over the last 2%, 3% of the. We haven't included it yet. Once it's 100% handed over, then we will start including it probably from the next quarter or the following quarter onwards. Next. Lease expiry profile. Generally still doesn't look too dissimilar from our previous. We have 11% up for expiry this year for retail, and 5% for office. Out of that, probably 4.3% of the retail and 1.6%, which is about 1/3 each, has been kind of resolved in advance negotiations. Next. Okay, healthy leasing activity. Despite the decline in occupancy, we still have a very healthy retention rate. For retail, it's at close to 90%. For office, about 70%. We have had quite a lot of new leases and renewed leases as well, about 339,000 sq ft spread across the various trade categories. Also for office, about 121,000 sq ft. Retail occupancy broken down into suburban, downtown. Downtown, as I mentioned, contributed primarily by the drop in Clarke Quay. Next. Rental reversion of 4.4% for retail, broken down into downtown and suburban. Downtown 3.9%, suburban 5.1%. Tenant sales 2.2%, as we mentioned, broken down into suburban growth at 3% and also downtown at 1.7%. Okay, next. I think we can. Just some of the highlights on some of the new retail concept that we have. Sio Pasta, which is a Michelin-recognized casual pasta concept that just opened in Raffles City. Shiseido at Tampines Mall. I don't know whether you guys have been to Tampines Mall. I think you can see the slow upgrade on the ground floor. We have also hoarded up the Isetan space. I think that's work in progress. We expect to probably finish that over the next few months. I think the ground floor area has been done in phases, so you can already see some of the new tenants showing up at the ground floor entrance area. Prada at Raffles City. We also have a new tenant at IMM, BYD, which is on the third floor. That's quite interesting because it's on the third floor and we have a massive car park at IMM, which are able to showcase some of their cars. Fairly interesting concept there. Okay, maybe we just move on. Okay. In terms of the office occupancy, as I mentioned, as you can see here from Germany, the significant drop in office is actually due to Germany, from 91% to 83%. Financial impact is, I think, not as significant as what the numbers suggest. Australia, actually, the occupancy has been healthy. As we have mentioned a couple of times, we think that the leasing momentum is picking up. Occupancy in Australia actually improved from 91.8% to 92.8%. Singapore, we have touched on. I think generally quite healthy. Slight drop due to the Funan vacancy. The good news is that our average rent continues to inch up from last quarter, SGD 10.95 to SGD 11.00, 2.2%. Although I'll just caveat that, of course, you guys are aware that we have just announced the sale of Asia Square Tower 2, which has a slightly higher average rent than our overall portfolio. This number could come down, but that's probably because it's not a like-for-like comparison once we take Asia Square out of the equation. Okay, next. Focus and outlook. I think overall we are still on a pretty good and healthy space in terms of outlook. I don't think anything significant has changed from our last update. Rental reversions continue to provide the organic growth. CapitaSpring, we are still benefiting from the contribution because it was only additional 55% was only included from 26th August onwards. This first half of the year, we are likely to see the accretion coming from CapitaSpring. Gallileo, our first quarter numbers have already started recognizing the income, so you can see it in the DPU impact as well. IMM already completed, performing well above our underwriting numbers. We are very happy with the outcome. If you go to IMM today, you will see that the look and feel of the mall is significantly different from what it was before. That was an area that we're very happy with. Okay. I think organic growth and also some of the contribution from the inorganic growth has really done well for us. Going forward, we expect this recent announcement on the divestment of Asia Square and the acquisition of Paragon to continue to build on that momentum with the 1.7% accretion. You can also see that our capital management Mei Lian's team has done a very good job in terms of our interest rate management. Over the last one quarter, we have brought the interest rate down from 3.2% to 2.9%. That's actually a very significant tailwind. Definitely helped to improve the bottom line performance, and we expect this to continue to contribute. As you can see, even in the second half of last year, we were still at 3.3%, 3.2% average. This 2.9%, even if it maintains, will be a significant savings compared to last year already. I think energy rates, we have talked about it. Okay. I think value-creating strategy, I think this is the same slide we talked about it earlier at both when we briefed on the transaction as well as at AGM. I won't spend too much time. I think the five pillars continue to drive our growth, organic asset enhancement, unlocking value through divestments, and driving growth. We have been very consistently unlocking value every year. In fact, we have been doing one divestment this year we did two divestments. Last year we did one, the year before we did one. We have been doing one high quality and meaningful, significant, highly accretive acquisition every year for the last two years as well. Okay. Capital management, of course, that's an important tailwind. All right. Sustainability, we are on track for most of our indicators. I think we won't spend too much time on that. Next, we'll just probably I think maybe we can start moving to Q&A. Yeah. Okay. Yeah, I think a few raised hands. Wow. Many. Yeah, I'm looking to have somebody other than Mervin. Unfortunately, he's still here. Mervin, please go ahead. Yeah. Congrats, Choon Siang, on an excellent set of results. Just a few questions. I think your prior cost of debt guidance was 3%- 3.1%, delivered 2.9%. Do you have an update for this year? On the Plaza Sing AEI, I'm personally quite excited by it. What will be the impact on occupancy, and is there any extra NLA you think you can activate, especially in front of the property, including the Istana Park? In terms of Iran war, have you seen any impact on retail sales given petrol prices are still pretty high today? Thanks. Okay. I'll take the easy third question. I'll have Mei Lian do the first question, Yi Zhuan can talk about the Plaza Sing AEI. In terms of retail sales in March, actually, we've not seen a significant impact. In fact, I think March sales is up year-on-year. It has decelerated in the sense that the growth rate for January, February is higher than the growth rate for March. March is still a positive growth rate compared to last year. It has surprised us as well on the upside. I think a couple of reasons. I think there's also some constraints in terms of flight capacity, maybe people are not traveling out as much, spending more. I think in the first few weeks of March, in terms of sentiment, I think maybe it has not affected sentiment as much, maybe the first two weeks, people are expecting the war to end quite soon. That could also be the reason. In general, I think, if you look at tourist numbers coming into Singapore, that has also improved year-on-year. Quite healthy tourism numbers. That has kind of provided lift probably for some of the numbers. I think so, quite a few confluence of factors that helped to drive the first quarter numbers. I think to your specific question on whether March numbers were down, no, they are still up compared to last year. How about April? Yeah. Oh, April? I don't think we have the April numbers yet. Yeah. Mei Lian can take the question on interest rate guidance, and then Yi Zhuan can take the AEI. Earlier on, when we looked at the interest rate guidance, we were saying around the 3% level. Given what we're seeing in the Singapore dollar floating rates movement in the past two months, it has generally been trending down. That kind of allowed us to look at an overall lower cost of debt of below 3%. Guidance for this year, again, based on the current levels, will be in the high 2%. That's scary. Yeah. Depending on where the rates go. Right now, I think there should be continued, looking at it year-over-year savings. Yeah. Are you seeing tighter credit spreads or just the same thing? For some of our loan facilities that are on floating rate, we have actually negotiated for tighter credit spread as well. That is around 10, 20 basis points. Mainly, the cost savings is really from the floating rate movement. Maybe Yi Zhuan. I'll talk about the PS one. During the course of the whole AEI, the reason why it kind of spread out a little bit now, because the work to be done in phases across the different parts of the property, it will largely remain open, and at any point in time, I think probably it's about 10%, 20% of the spaces that will be affected through the course of it. Nothing more. There will be a very small period where there's a bit of overlap that's probably closer to 30%, but most of the malls will be open, actually. The second part will be on the NLA question. Net, the NLA will be there about pretty much similar. While we create additional NLA on the ground floor and some of the spaces that we managed to identify, part of the AEI will also include compliance work and also a bit of upgrading works in terms of amenities, which will take a bit of the NLA away. Second part of it will be that, as we know in Plaza Sing, the back end of the mall actually is quite deep. Some of the spaces are pretty deep. Rather than taking a big anchor that doesn't generate that much rent, we may subdivide some of these to create higher value spaces. There's no impact on the commercial office section, right? At this point, there's no major impact on the commercial office side, the tower side. Most of the work in the tower side in phase I is actually more along the ground floor where the entrance arrival is. Okay. Excellent. Congrats on the results and recent Paragon acquisition. Thank you. Thanks, Mervin. Geraldine, yeah. Hi, Choon Siang, everyone. Good morning. Maybe just back to the portfolio refresh opportunities. Yeah. Choon Siang, maybe your thoughts on partaking in further development projects with sponsors. After Hougang Central, there's still some quota to work with. Will this be something that you are interested in or prefer to phase out a little bit? Okay. I don't know whether you're referring to the Bayshore. Yeah. Very sizable spot. I think the way we think about it is, firstly, we must like the location. I think Hougang was unique in the way because it was underserved, and it is in a very dense residential catchment, which we think a retail mall is very likely to succeed. Also the connectivity with the two major MRT lines and the connectivity to the industry certainly helps. The size recruits other significant competitors from coming in. Bayshore, I think we haven't looked at it in detail, to be honest, but no harm for us to look at it, but then it will come down to a matter of pricing, and whether we think that catchment makes sense for us. The other thing, that outcome makes a lot of sense for us because we don't have something in that area. Bayshore, of course, will be quite close to Bedok Mall. Bayshore is also in a slightly more private residential estate, so the residential catchment is not as deep as, say, somewhere like Hougang. If I'm not wrong, I think the retail component is also small. It's like 200,000 sq ft compared to Hougang, which is 300,000 sq ft, long story short, I think we will take a look. Question is whether we will consider. Well, I think we can consider we have room, but we also have to look at the impact. Obviously, there's no impact on DPU as well, we mentioned. There will be an impact on balance sheet. We have raised quite a bit of capital, to Hougang. We're deploying capital to Paragon, and now we are deploying capital to Plaza Sing. We have our hands full probably for the near term, but let's see the details of the project. Yeah. Thanks, Choon Siang. Maybe just one more on the tenant exit at MAC. Is it tied to the geopolitical hit means or the tenant was already thinking of an exit? Any divestment overseas, since you have done quite a number in Singapore already. Thanks for raising that question. I was waiting for the opportunity to answer that question. The tenant is actually all the airlines, and you know MAC is next to the airport. I think, unfortunately, it's not due to any geopolitics, it's not due to any rent reasons or whatever. It's due to the fact that they want to consolidate back at the airport, which is obviously a better location for airline. That's just unfortunate in terms of the business direction that the tenant took. That's where we are. In terms of divestment, yes, definitely we are looking at divestment, and I think, in fact, we've been talking about this the last business update and now the Iran war basically threw a spanner into the works when, because with interest rate expectations being slightly altered in the European area, it might make divestment slightly more challenging. Nevertheless, I think we are embarking on that process. We are starting to sound out and getting a feel on the ground to see whether there is an opportunity. Hopefully we'll have good news. Thanks, Choon Siang, for the color. It's not easy. I don't want to also raise expectations. Obviously, you guys know in this current environment, in Singapore, it looks like it's a lot easier for capital market transactions, but I think the same cannot be said for the European region. I think the number of capital market transactions that we've been observing in the market is few and far between, and not at the kind of sizes that we are looking at. Okay. Yeah. Thanks, Choon Siang, can imagine. Yeah. Good luck. Thank you. Rachel? Hi. [audio distortion]. Can you hear me well? Yes, we can hear you. Okay, great. Maybe just a first question on the reversions. I think it is moderated a little bit by first quarter. I was just wondering, what is your outlook for this year since there were some advanced negotiation on the leases that are expiring this year? Okay. Maybe Yi Zhuan, you want to take the question. Well, for the reversions, right, generally, I think Choon Siang mentioned earlier, for the full year, we are still looking around mid-single. Of course, with some of the uncertainties in the wider global uncertainties, we probably might be a bit cautious on it, and we will see how this trends. For the retail, actually, largely most of the reversals have been quite strong. I think it was a little bit pulled down by a very specific tenant in a unique location. By and large, I would say the retail reversions have been okay. Can you give more color on this specific tenant? Oh, it's more of like a change of use of a tenant into F&B and because of the location of the unit, it's actually not where the normal walkway is. That's the reason why for that, in that case, compared to the outgoing use, the reversion is a little bit on the downside on the sense. Oh, okay. Which mall is it? Yeah. Sorry. No, go ahead. Sorry. I think she said ask mall which mall it is. Oh, which mall? mall? It's [audio distortion]. Maybe I will also just add, I think while we have guided fairly healthy rental reversions, I think one more that may moderate because of I think Plaza Sing and [audio distortion] we are likely to go through AEI. We may have to moderate, because when you do an AEI, obviously in the course of discussion and lease renewal with tenants, we also have to be mindful that they will be impacted by the renovation going forward. We have to be a bit more flexible sometimes when it comes. Obviously, this is only during the transition. It could impact some of, specifically for Plaza Sing and [audio distoortion], I think. There could be some moderation in terms of rental reversion, which should not be unexpected, but I think the rest of the portfolio should be business as usual. There could be some impact because of that. Okay. Just moving to the office reversions. Now that you have sold AST2, do you expect that the reversions may channel in more? No, I don't think so. If we break down our reversions and contributions, I think they are quite evenly contributing. Removing AST2 should not make a significant impact. Okay. Got it. Maybe just on the tenant sales side, you mentioned that March was up year-over-year, but do you see any impact on the downtown malls? Are they impacted a little bit more from the war, Ukraine war? I think it was the reverse, right? I think our downtown did better than suburban, if I'm not wrong. I cannot remember. Okay. Yeah, for March. I think suburban, [audio distortion]. March. Yeah. I think downtown actually did better. If you strip out the numbers for March, I believe downtown we did better than suburban. Okay. Interesting. Okay, maybe just one last quick one, which is, on ACD contribution, how much are they contributing in first quarter, and how much more should we expect? How much are they contributing? Maybe you have the numbers. I have the numbers, but more on the top line, because we have to net off. Just in my mind, we have to net off the funding cost also. Can we get back to you on this? Yeah, because we have to net off funding costs and also provide for tax. Yeah. Yeah. I. Yeah. Okay. I think that contribution at the top line is probably maybe about, you want to say about SGD 1.5 million-SGD 2 mill ion a month, if I'm not wrong. I mean. Okay I'm trying to digest the DPU side and flow down the bottom line, we need to do some work around that. It's also been about 1.5-2 months. It's not a full contribution. We can come back to you. Thanks so much. Okay, thanks, Rachel. Can we move on to Li Jia Lin? Hi, it's Li Jia. Can you hear me? Yes, can. Just on the Plaza Sing AEI, the amount seems quite big. How confident are we in securing that 6-7% ROI? Also given that, does this also mean that any AEI plans for Paragon will be shelved back because of this? When I look at Atrium going down, Plaza Sing occupancy could also be impacted a little bit in terms of performance. It does seem like we are in a quite uncertain period. Quite a few major assets could be seeing a little bit of downtime. That's the first question. Second is on your retail. Suburban seems to be leading downtown. Do you expect this trend to continue? In terms of our reversions, and also tenant sales. Okay. I'll take the first question, then Yi Zhuan will take the second one. Okay. In terms of the expected return from Plaza Sing, you guys are familiar. We normally don't undertake AEI without a calculation of the financial return, we have put down here that we are targeting about 6%-7%. Question is whether we are confident of achieving. I think we have put it onto the slide. We would have put it there if we are not confident of achieving, that's one. Secondly, of course, nobody knows this AEI will take what years. It's also based on a certain assumption, I think. Based on our track record, if you look at some of the past AEIs in Singapore, like Raffles City, we've done IMM, we have done I think we safe to say we have firstly, met our underwriting and secondly, not just your underwriting, I think part of the AEI, the objective is also to transform the mall, to make it relevant and to make it suitable for the current case and environment and shopping behavior and the new consumer. All of that is also taken into consideration when we plan an AEI, I think there's no argument that Plaza Singapura has been without AEI for a while, I think it will definitely be helpful to rejuvenate the space. Also what we mentioned is also really to dovetail with We have been very deliberate about this. It's not just about, okay, improving the tenant mix, then make it better, it's also we want to also think a few years ahead what will happen to this mall when the pedestrianization of the mall, the road in front comes up. We want to be positioned when that happens. We will transform the area, we want to be there and ready when it happens. I think our portfolio is large. I think we can definitely cushion if there is a bit of downtime. Of course, when we try to do any AEI, we will try to minimize the impact to our cash flow, which is why it will be done in phases so that the downtime doesn't stretch beyond 10%-20% of the tenants or malls. Hopefully that answers your question in terms of whether we are comfortable. Yeah. Can I also check if the construction costs have been locked in? Yes. Even if construction costs escalates from now on, your target ROI 6%-7% is still- Yeah comfortable? Yes. Okay. Yeah. I think we have also been deliberately trying to upgrade slowly the various assets. I think you've seen that Raffles City was upgraded. Now we are moving on to Plaza Singapura. The question in viewers' mind is, okay, is Paragon next? Whether this, some people may think, okay, by the way you mentioned, if we are doing Plaza Singapura, doesn't mean we have no capacity to do Paragon. I don't think that's the case, and I don't want to pre-jump to conclusion that we are not doing anything. I think by what we mentioned, it's only been about four days since we announced. We want to go in, take a thorough look at what they have done. It's already an AEI plan in place. No harm and no skin off our nose to take a look at what they have planned. We will see whether the plan involves any, and how do in phases, whatever they have planned, or whatever we want to look at with fresh eyes. Obviously for us, we have to look at it from a portfolio-wide perspective and whether it makes sense for us, both on the asset level as well as the portfolio level in terms of cash flows. All of that will all have to be taken into consideration. In any case, I think Plaza Singapura starts third quarter of this year. Paragon completion will only be third quarter of this year, probably. By the time we take over, it's not like we're going to do AEI on day one. We will definitely have to review the performance, the asset mix, I mean the tenant mix. Then by the time, if and when we do take a decision to do anything, it'll probably be possibly one year down the road, we're not sure. I think let's not pre-conclude that it will or will not happen. I don't think I can answer that question right now. Okay. Second question is on the retail, the performance within suburban and- Yeah downtown. Yeah. For tenant sales, I would say that actually between downtown and suburban, if I just go back the past few quarters, sometimes it'll be downtown, sometimes suburban. Actually the two of them are really quite closely matched, and I expect that to go forward in this year also. Of course, naturally, given all these uncertainties in these few months, probably the suburban side, we'll probably see a bit more resilience as because of some of these higher costs, operating costs and lower lease over densification and stuff like that. Discretionary spending on large items will probably be a little bit held back for a while the day to day people still have to spend. I would say that's the kind of trend that we foresee further going forward. I think the related question to this was actually on the reversion side of things. By and large, I would say both retail and downtown, sorry, for both downtown and suburban, generally, we look at sustainable kind of reversion levels that we give to our tenants. Of course, with downtown, as I think, just like I mentioned earlier, when we do some of these AEI works, some of these impact short-term extensions and stuff that we may do to retain a tenant in the near term to time out the asset bit better may distort some of these reversion numbers that we may see. Okay. Thanks. It's just that I noticed your tenant sales have been quite soft in the past few quarters, reversions have been going up. Just wondering, a little bit concerned on occupancy cost. Yeah. I think on occupancy cost year-on-year, we are quite stable actually. This time around we are around 17.4%, which I believe is 0.1% lower than the previous year. Downtown op cost is higher than the suburban. Suburban, we are looking at high sixteens, which is quite actually in line with market and is actually quite sustainable. I think the other thing we wanted to also add that actually 2.2% sales compared to rental reversion of 6%, actually not that out of line because it's average over three years, actually it's quite in line with a 2% sales growth. I wouldn't actually say that it's not in line. Okay. Thanks. The last one is, do you disclose ION tenant sales? I think in the past quarters there was one small footnote. Maybe I missed that. Yeah. no, it's included. Last time we used to show a footnote, as in we stripped out the ION Orchard- Yeah -sales first because it was not like for like. Now ION we have owned it for a full year already. There's no need to strip out the effect of ION anymore. ION has contributed. ION is in 2025 and 2026 numbers now. this- Oh that includes the total sales from ION as well. Okay. Thanks, Choon Siang. Thanks, Li Jia. Can we go on to Brandon, please? Hey. Morning, Choon Siang. Just touching on a bit of occupancy. Could you sort of guide us a bit on the forward occupancy for the different retail office? When I look at this quarter's numbers, it is kind of quite low. In fact, it is like a four-year low when you look at retail office or portfolio. Is this something that you can sort of guide us or is this something that we should be concerned about? No. I think I spent some time trying to address this point. I expect this to be an issue, and to be raised, which is why I think I have addressed it right from the get go. It is actually unique to three specific assets that we have and very unique to three specific tenants. The financial impact is quite small, these are all low rent spaces. Actually, more than half of it is due to Germany, which does not affect our Singapore performance. I will not take this as a read-through on the portfolio, to answer your question directly. At the end of the day, if you look at rental reversion, it is still healthy, which means that we still have the negotiating leverage to negotiate for higher rents. It is unique to MAC Germany and unique to Clarke Quay. Clarke Quay, of course, is work in progress until Canninghill gets completed end of this year. If you look at it on a portfolio standpoint, should we sort of expect that 95.2% to sort of get back to your usual 96%-98% kind of range? No, I think we can expect improve. If you ask me whether this is the new steady state, no. The answer is no. I think we can expect this number to improve. For the simple reason, let's say for example, today we were to sell MAC, immediately improves and normalizes to that higher level. I would say that as a non-core asset, we shouldn't even use that as a contributor to look at normalized occupancy. Even if we were to include it, we do expect some of these vacancies are very transitory, frictional. We do think that the 95.2% is not a reflection of what we are able to achieve with the current portfolio. Are you comfortable to share the occupancy of those three unique assets? Yes. We can. I think MAC now we are just trending somewhere above 70%, 72%. Clarke Quay, 84%. Funan Office was 100%. I think one of the Towers now had one vacancy. What is Funan Office now? 87%. We are quite confident of leasing out that space. That's a very transitional vacancy. MAC could take us a bit longer, I think we will work hard to try to replace or work at divesting at some point. Yeah. Those are the three assets that probably contributed to this quarter's movement. One of which we are quite confident of re-leasing quite soon, hopefully. Okay. The two, I don't think will actually affect the financial because those are very low rent spaces anyway, although they are quite large and hence it contributes to the drop. Yeah. Got it. One more. Our financial performance is not being impacted. That's the bottom line. Okay. Great. Can you talk a bit on Bugis+? Historically, if you look at CICT, when you guys sort of amalgamate your assets and other assets. These assets usually get divested. Could we sort of expect the same for Bugis+ or there should be a wider plan for it given that you already own Bugis Junction? Sorry, I don't get your. What are you saying about Bugis+? I didn't quite catch your drift. Yeah. Historically, if you look at CMT, CICT, you guys tend to amalgamate the performance of certain assets under Other Assets, right? Then after that, subsequently we see you selling those assets. Should we expect the same for Bugis+? Is it a non-core asset in your view? No. I think the short answer is no. I think we have also shown that we can sell assets that are not in the Other category. It doesn't indicate anything. Now we report what is in Others. Nothing. Oh, he's saying- There was a period of time when there's only so much space, and there's only so many buildings you can squeeze into. Some of the smaller assets had to be parked under Others. Yeah. Okay. It's good to know that it's core. Okay. We shouldn't be. We love the Bugis area. Okay. It's actually a very vibrant area and coming out very nicely. In fact, I see it as a high-growth area going forward. Okay. I'll just end with one last question. If there are opportunities to acquire something that's pretty decent, is CICT sort of open to creating equity more than once a year? We try not to. I've been reminded by investors to try not to do that, so we'll try not to do that. Okay, great. Hey, thanks so much. Good weekend. Yeah, thanks. Thanks. Thanks, Brandon. Can we move on to Vijay, please? Yeah. Hi, morning, Choon Siang and team. Three questions from me, maybe I'll take them one by one. Firstly, in terms of the Funan, can you give some bit more color in terms of the tenant who has exited, what was the reasons, and how much downtime to expect for this property? It's not a tough question. I'll leave it to Yi Zhuan. You mean the tenant? Yeah. Funan. For Funan, the tenant, because Adidas moving, actually it's more of an issue of them trying to consolidate some of their space in terms of their efficiency, and their corporate planning. That was the reason for the move. How long do you expect? How long do we expect to backfill it? Well, okay. Typically, I would say that, if we start from scratch for a tenant. Because, okay, for Adidas, it's about 28,000 sq ft of space. There's a few ways we can do it. Maybe if we subdivide, then naturally the downtime is a bit shorter, at least for part of the space. For tenants usually of this kind of size, if they start to look for space, typically they'll be looking at it around 6- 9 months ahead of time, because they have to plan their move from their previous space. We are already starting to get some interest along the way, and it is really down to how they convert as well as how the negotiations with the other options that they have. It's hard to say for sure, but I would say probably half a year. Okay, got it. My second question is for sharing and solution, I think from a Clarke Quay perspective, it does look like the impact seems to be structural for some time. The asset went a major upgrade after COVID, but still seems to be having a lot more of tenant churn over the last one, two years. Maybe what's your thought on this asset, and would you be willing to divest it? Are you seeing tenant churn improve, since last year? Okay. I think Clarke Quay, I won't say is structural because we have not seen it in its stabilized state. There is definitely a structural difference between the construct of Clarke Quay and some of the other malls, for sure. Definitely slightly different positioning. Of course, it's not a natural mall per se. Of course, now currently it's impacted by Canninghill. I know we have been saying that for the last few quarters, but that is the reality, major construction. We do expect the vibrancy of the whole area will change once you have these few hundred residential units being filled up and two hotel blocks being completed. Hotels generally create around the clock footfall. We do expect, this is right across the road from them, definitely there will be some improvements. Whether the improvements will be enough will be one of your questions as well, once it becomes stabilized. We are confident that there will definitely be improvements once that happens. The challenge with the leasing discussion now is also, nobody will commit until they have seen the hotel being completed. That's the reality. If I were a tenant, no point for me to take the risk today. I might as well wait until six months later when the hotel is completed. A lot of the tenant churn is also because a lot of our tenants within Clarke Quay, some of the movements at the margins is also due to us bringing in shorter leases coming in to fill up the space, create the footfall and vibrancy to that area. We are doing a lot of things. We have a team that is very focused on marketing the asset, if you go to Clarke Quay, there are a lot of marketing activities going on every weekend. We have now [audio distortion] coming in on every Wednesday. We have just done a cycling crate competition, making use of Clarke Quay's natural outdoor roads to create a kind of a cycling circuit. Every time there's major sporting events, we have organized live shows and all that. We are making a conscious effort. It's not a natural place where there's natural footfall, we need to create a more destinational effect to bring in the crowd while Canninghill is being completed. After completing Canninghill, we do expect it to have more natural footfall. We are making very good efforts. To your second question on whether we will be open to divesting, we have demonstrated our willingness to divest anything, I think, if necessary. We've just divested two assets, one of which is fairly large and performing well as well. I think the question to that is, anything is possible, including Clarke Quay. Okay. please do not interpret that as we are divesting Clarke Quay. Okay. Very good question. Got it. If 10% premium, yes. That's what you are alluding to. Yeah. You hit the nail on the head. I think it's always a matter of pricing, right? I think the yield is still decent for Paragon based on the current value. Okay. My last question, I think in terms of energy rates, you mentioned that this year it's lower than last year. Maybe how low is it for this year compared to last year? If it normalizes, if you have to go for open market and purchase a contract for next year, should we have to expect a jump in terms of electricity cost and SP also going down? Oh, no. Thanks for that question. Actually, I also want to take this opportunity to highlight that next year, actually, we do expect utilities cost to come down further. The reason is because although it's not been locked in, we have achieved a better formula. The formula for utilities cost is always a function of certain input prices. Of course, oil price and gas prices are a key component of it. Even at today's price, if we were to enter into the contract, we are still achieving savings because of the better formula that we have achieved with our supplier. We do expect savings next year as well compared to this year. You're not impacted by external environment or even at the higher price, you can still achieve savings. Yes. No, we are impacted, but what we are saying is that at the same input price next year we will achieve savings because of a better formula. Okay. Got it. Thank you. Even though prices have gone up, we'll still achieve savings. It takes a very significant increase in the price of oil for us not to achieve savings for next year, and we are not anywhere close to that. This is based on the management contract you have signed with CLI? No, it's based on our contract with our energy provider, utilities provider. Oh, okay. Got it. Thank you. That's clear. Yeah. One thing is that we procure energy as a group, we do have quite a bit of negotiating power. For example, CICT plus the whole of CLI group, we are procuring energy as a bulk contract. As you can imagine, because given our size, we do have some negotiating leverage, we are able to lock in a better formula for next year. Okay. Thanks, Choon Siang. That's all. Thanks, Vijay. Can we go to the [audio distortion]. Hi, this is actually Derek from Morgan Stanley. Oh, Derek. Hi, Derek. I just assumed another identity. Yeah, by accident. No, just want to ask a couple of questions on the cost of debt outlook. I think, Mei Lian, it seems like you're alluding to about 10 to 20 basis points savings from the current 2.9%. Does that take into account, I presume, the debt pay down from using proceeds from the equity raise and when you take on fresh debt for Paragon? Is that all taken into account already? No. Depending on the fixed load assumption for the Paragon debt, we believe that there is some room in terms of floating rate, because we continue to see the movement over the past month, where floating rate has actually even gone below 1%. If this continue, there could be even more savings from that anchor. Yeah. We haven't taken into account the Paragon debt yet. Yeah. It will depend on the actual fixing structure. Is there a rough number that you could? Are we looking at 2.5%, 2.6%? I also assume you will be, in lieu of the action coming in, you will pay down debt first, right, with the equity raise proceeds? Yes, we will. Raise fresh debt. We assume that interest rate for Paragon debt is about 2.6%-2.7%. That could lower the average based on this assumption as well. That number actually looks high also compared to what you recently raised at 2.18%, right? Could that number also be a lower number for that? We will try to do better. The 2.18% was raised when the fixed benchmark was actually lower than current. Today, if we were to raise the bonds again, it may require slightly higher margin. It all depends on, first, the timing, second, the tenor that we want to lock in, and how much is going to be fixed and float. Generally, we try to keep on the overall basis, at least 70% of our debt portfolio on fixed basis. Understood. If you were to raise fresh debt right now, fixed, what would be the number? Well, probably, looking at the secondary trades, close to, say, 2.4%, 2.5%. 2.4%, 2.5%. Okay, got it. Thank you. Just last question, if I may. I got some investor queries on the equity raise. Why raise at the lower end of the pricing range given the robust take-up? Yeah. Okay. Let me just take that. Actually, I would say that this is the low end of the range. The low end of the range is 2.7%, you are right. Could we have raised it at, say, 2%? Possibly, the quality of the book could be different. Typically in an equity raise, you guys will be familiar. There will be three main types of investors. The first group are we call the real estate long-only investors. These are the buy and hold investors, because they like the assets. They are real estate specialists. They are long only. They buy because they want to achieve the yield that we provide and the growth that we provide going forward. There's the hedge funds, there is the private bank, who may or may not buy and hold, depending on the valuation, depending on the momentum, and depending on the market conditions. We typically try to allocate a larger part of the book to long-only real estate, because these are the investors that will stay with us and grow with us. Of course, looking at the book, to encourage a larger allocation to that was the reason why we decided to. Even with the decision, we also are able to bring everybody up from, say, 2.7% discount to 2.36% discount, which was the final price that we did at. If you look at all of the equity raised done in the last 20, I don't know, last five years, this is probably the tightest. I don't know whether I can think of a tighter. I don't think we can say that this is not a tight discount. I think we probably have been spoiling investors a little bit, because we went out with a very tight low end in the first place. Most equity offerings will not go out with a 2.7% at the very low end. They typically will go out with 3.5%, 4%. We are fairly confident of doing that, we are able to negotiate, because we also want to protect our own downside, and we are able to lock in the underwriting by the bank at 2.7%, because our last equity offering was done at 2.7%. Despite that very tight low end, we were able to tighten it further to 2.36%. I think the other consideration as we also upsize, it is actually very challenging to upsize the equity offering by 25% and still tighten the discount. Usually, you have to choose between the two, price or quantity. I think that is a very standard trade-off. You want better price, you have to sacrifice on quantity. You want a better quantity, you sacrifice on price. We are able to achieve both. I will not actually fully agree with the statement that we are not achieving a tight discount and we didn't. I guess the third thing I will also add is that, I think, could we have squeezed to, say, 2.2.1? Possibly, I think we also want to watch the after market performance. We want to make sure that the momentum is maintained. To ensure a strong market performance, you also have to allocate and price accordingly. I think if you look at the post-market performance, I think we do think that we did the right thing, and there is definitely some strong market outperformance following the EFR. Hi, morning. Just one question on full year DPU growth. Because of the upsize equity issuance and Asia Square Two that will come in before Paragon acquisitions, are the growth levers that you mentioned sufficient to offset this? What are the other mitigating factors on the capital management front, such that full year, you are still expecting DPU growth, right? Thanks. Sorry, can you summarize the question again? Yeah. Equity issuance was upsized. Yeah. That will drive dilution. Asia Square Tower 2 loss of income second quarter. These two will actually come in before your Paragon acquisition. Right? Full year, what are the mitigating factors, and are we still forecasting DPU growth? Thanks. I get what you're saying now. Firstly, there are two potential things. There are quite a few things. One is Asia Square divestment is unlikely to close before actually. Asia Square divestment is likely to close after Paragon acquisition because the buyer for Asia Square also needs the EGM, and their process takes a bit longer. We are expecting to close probably at least one to two months before them. Two months. Quite counterintuitive, but actually that is better for accretion, because before they close, we will have to do a bit of a bridge loan. If we borrow for one to two months, bridging, to bridge the funding gap before we divest Asia Square, that cost of funding is actually lower than the asset value, because you're still earning NPI as long as AST2 has not been sold, right? The asset value at 3% is still higher than the funding cost. Bridging loan, we will be borrowing on floating, which as Mei Lian mentioned, today is still very low at about, the SORA is what, 1% today? In a spread, you are probably saving a good 1% on the funding cost. Actually, it is more accretive. Fairly counterintuitive, but of course, you take a bit of a stretch on the balance sheet for that one, two months, but I think that is okay, as long as there is certainty on closing. That is more. It shouldn't affect-- That part of the equation shouldn't affect accretion, right? It can only improve accretion. Second part, I think what you are driving at is also the equity offering being done before the closing of Paragon. That will be dilutive. But of course, we will pay down debt in between. The net effect of both combined together, I think, is this dilute. See, we are buying SGD 3.9 billion. Typically, equity offering makes up a larger proportion of any transaction. But in our case, the equity offering, SGD 750 million, is only about, call it, 18% acquisition size. The dilution impact is actually very small, and it's only for about maybe about two months. We are not suffering that dire dilution because we will pay down debt. Based on my calculation, plus the accretion that we will get from SGD 2.5 billion, two months of bridging loan, actually, the net is positive. We will actually not suffer any dilution. If anything, we will still be fully benefiting from that 1.7% accretion for a year. Got it. Thank you. Thanks, [Shen]. We have Mervin, who seems like the last one to go. Mervin, please. Yeah. Just a question on the retail margins. They fell Q- on- Q and year on year. What's causing that given you have some interest cost savings? Interest cost savings will not affect retail margin because- Electricity cost, sorry. Oh. Why did margin go down? Yeah, I noticed the margin. Why did margin go down? Do we know? Let me think. Was there a change in the portfolio constitution? We sold off BPP, but that's for one month, shouldn't it. I think the reason is the top line came down slightly on a year-on-year basis because we started AEI. For example, I think, Tampines, because we did the AEI, I think the margin for Tampines came down, because of the top line dropped slightly. That's one of the key reasons, I think. The other reason, of course, is also Clarke Quay. Clarke Quay, the margins came down because of the significant drop in occupancy compared to last year. These two assets would have contributed to the margin compression. Any updates on Junction 8, given the change of more commercial? You mean, like, redevelopment plans? Redevelopment plans or will you take on the office component? Oh. Well, I think I don't think that will happen anytime soon. If anything, discussion with many stakeholders. We don't have the clarity now, but Junction 8 is doing very well in the meantime. Yeah, sorry. The short answer is no, we don't have anything to provide at this point. No update to provide with Junction 8. Yeah. Just back on the office portfolio, we hosted IOI Properties a couple days ago, and they said that we could push Asia Square Tower 2 rent towards SGD 13. Is that something you can do on average across your whole portfolio? Across our portfolio, that's a tough question because our portfolio obviously has different varying locations and age of building. Obviously, those in, I think IOI's building obviously is newer than ours. Asia Square, if you compare it to some of our portfolio, is also slightly higher, right? I mentioned earlier in my presentation that average rent for Asia Square Tower 2 is already higher than rent of our portfolio. I think if your question is whether we can do it for the rest of, I think selectively possible. We are seeing some of the renewals done at those levels for some of our spaces. I won't say that we can do it for the entire portfolio because there are also big anchor spaces in some of our portfolio. In terms of portfolio allocation, like how are you thinking about mix between retail and office? We now have a bit more retail. Yeah, no, I don't think it was deliberate. It was more, I think it's a consequence of some of the opportunistic decisions that we made. I don't think if you ask us whether, oh, do we design it to be this way? No, we are not deliberately trying to sell office to buy retail. I think we are quite happy with both asset classes. I think increasingly, the differentiation is not as important. I think what is important for us, given as much both the office and the retail component, is what is the most and best construct for our portfolio that will deliver the most stable and highest growth DPU for our unitholders. I think because we are already so big, so the stability is there. The question is how to drive the growth. I think people are more focused on underlying financial performance than the marginal movement between retail and office. Okay, excellent. Look forward to continued strong results and hopefully high share prices. Thank you. Thanks, Mervin. Looks like we have no more questions, I guess we'll end the session here. Thank you for your time. Have a good Friday and a good weekend. Thank you. Bye. Thank you.