Welcome. Lots of familiar faces. I am super pumped. I'm really excited, and I'm really energized to be here today. Yes, experience is central. This is our new corporate slogan, and hopefully you'll see it across our portfolio from this point forward. You're also amongst the first to see our new Hongkong Land corporate video, which contemporizes our 135-year-old brand. To me, it epitomizes what you'll hear about the new Hongkong Land strategy: ambitious, dynamic, distinctive, and bold. I know most of you in the room, but for those of you who I don't, my name is Michael Smith. I'm the Chief Executive of Hongkong Land. Onstage with me is Craig Beattie, our CFO. A warm welcome to you all, thank you for joining us this morning. Today, we'll be sharing with you a new strategic direction of Hongkong Land, one of Hong Kong's most iconic businesses, with a 135-year legacy tied to the history of this city and the region. We'll go through the core pillars of the strategy, the financial targets we are setting ourselves, and how we will create an organizational culture and talent bench that will drive execution of this plan. Ultimately, most importantly, our aim is to drive improved, sustainable growth, in turn, deliver top-quartile returns for our shareholders. I want today to be interactive and a two-way dialogue. We'll have plenty of time for questions and answers, whether from the audience here or for those of you online. My first six months of the group has been hugely rewarding. I'm very proud of the way in which the team has rallied around the common cause of shaping the future of this great company. As someone who's worked in this industry for way too many years, I've held a deep admiration and respect for Hongkong Land. In my mind, it's the best of blue-chip Asian real estate companies. It has unique, world-class assets and developments in three of Asia's greatest cities, Shanghai, Singapore, and of course, Hong Kong. When I became CEO some 30 weeks ago, I commissioned a deep-rooted strategic review of our business. Through that process, we spoke to our internal colleagues, we conducted extensive interviews with our external analysts, shared stakeholders, analysts, many of you in the room, investors, industry experts, other players, we did extensive empirical and primary market research. Our aim was to be crystal clear about our competitive advantages, where we are strong compared to our competition, where we should allocate capital to deliver the best returns. The conclusion of that process is on the screen behind me. Our ambition is to be the leader in Asia's gateway cities, focused on ultra-premium integrated commercial properties. This ambition, this focus, this simplicity taps right into Hongkong Land's core DNA. We bought our first piece of land in Pedder Street, just down the road in 1889. This is what we do best, this is what we really want to continue to doing better. It's based on our 135 years of heritage of delivering world-class integrated commercial properties. There are few companies that can say that, even fewer who can still push the boundaries through projects like Tomorrow's CENTRAL and our project in West Bund in Shanghai. We will pursue this ambition based on our foundation of clear competitive strengths. We are a developer who adopts the highest standards of quality. We build really good buildings, and we manage them really well. That's our core competencies. We have a coveted portfolio of over 2,500 premium tenants. Across the region, there were 2,500 tenants in our portfolio, some of whom include the world's leading global and regional corporations, and the world's most prestigious luxury retailers. We have highly reputable strategic partners who are like-minded in their integrity and ethos, including our long-standing sister company, Mandarin Oriental, the world's most iconic five-star hotel brand. We have a brand that travels across geographies in this region with high-net-worth customers who know us and trust us, even through challenging economic times. When we take these strengths together, mapped against a comprehensive assessment of where the growth opportunities are across Asia, it crystallized the core elements of the new strategy we will pursue. Let me outline what those elements are. First, this is our flywheel that was in our announcement, firstly, we will strategically focus our growth. That means we will continue to invest in our core gateway cities, Hong Kong, Shanghai, and Singapore, we'll also look for new opportunities in other regional gateway cities. This is a process of following our tenants. If our tenants, if Mandarin, if a luxury retail brand wants to go to a new market, we should be their capital partner in that new market within Asia-Pacific. We will put our capital into the segment that we know best, the ultra-premium integrated commercial property assets. Secondly, we'll bring in new capital from like-minded partners to invest alongside with us, delivering an improved return on capital. Thirdly, we will recycle up to $10 billion of our balance sheet to fund this growth. This is an internally funded strategy. We're not reliant on external funds to achieve our goals. We will stop investing in our build-to-sell business, are fully committed to completing all existing projects To the highest standards, ensuring continuity and quality. Importantly, achieving this ambition doesn't mean a major capital raise in either debt or equity. This pivot will be fully funded by recycling capital from existing businesses. Fourthly, we are evolving our capital allocation framework with more discipline and an absolute focus on creating shareholder value. That includes establishing our new investment committee at the board, which we announced earlier this week. The majority of which are independent and highly respected members, including Ming Mei. Thank you all. Craig and I will now share more details of the pillars of our strategy and put flesh on the bone to how we're going to get there. We can get into some questions, which I'm sure you will have. Sarah's already asked a few, Craig. Thanks, Michael, good morning to everybody here. Let me delve a little bit more into some details behind the strategy. As you can see here, we have four main pillars to the strategy, I'll take a few minutes to go through each of these in turn. It's important to note that the four pillars will operate in a continual cycle as we intend to recycle capital and reinvest the proceeds on an ongoing basis. What we'll talk you through this morning are the key points in that strategy, a more detailed information pack will be uploaded to our website following this meeting. At the core of this strategy is the idea of growth delivered by focusing on our core capabilities, that is about tapping into the DNA of this business that Michael mentioned, our strong brand and track record of building and managing ultra-premium commercial-led mixed-use portfolios. This is where Hongkong Land's future growth will come from. In terms of where we will invest, we're going to expand our presence in Hong Kong, in Shanghai, and in Singapore. At the same time, we'll explore new opportunities in gateway cities in Asia, diversifying our portfolio geographically. We're not going to go into a lot of details about the cities now, but we see gateway cities as places with blue-chip tenants and luxury customers. Places that clearly benefit from the flight to quality trends that are being seen in prime real estate markets around the world. We already have clear examples of developing these projects today. Our US$1 billion investment here in Hong Kong in Tomorrow's CENTRAL, which will rejuvenate our retail offering and bring new office tenant amenities, helping to solidify our market-leading position in Hong Kong. It's also in boosting our economic moat around the central portfolio, providing earnings resilience. In Shanghai, our West Bund project, which is well underway and has a total developable GFA of 1.1 million square meters, it's a huge project, will really create a brand-new commercial hub and landmark in Shanghai. We've already started opening the first phase of that development this year, more to come in the years ahead. We're already looking at some new growth opportunities, we look forward to updating you on those shortly. To fund this strategy and generate cash for new investments in shareholder returns, we will actively recycle capital from three main sources. The first is in the build-to-sell inventory wind down. This is a strategic pivot for our business, meaning that no new investments will be made in the build-to-sell segment across the entire region. As residential inventory is sold to end users, surplus cash will come back to us, the bulk of this capital recycling will happen in the short to medium term. Let me be clear that we are committed to honoring all of our commitments on existing projects, we will finish everything that we have acquired. Despite market conditions remaining challenging in some places, we've made good progress in continuing to sell our inventory and recycle capital. The second pillar is in divestment of commercial assets for sale, where we will look to divest our medium-term lease assets, which principally comprise lifestyle retail malls in China. These assets will take time to sell as we have several projects under development, and leasing performance needs to stabilize before we maximize the proceeds. Third, and finally, is in mature asset divestments. Here we intend to become more flexible in recycling mature investment property assets into REITs and other third-party capital vehicles. We're fortunate that we have $32 billion of investment property assets on our balance sheet today, and that will grow further as we complete some of our projects in the mainland. We actually have a lot of recycling options across the group. While we are targeting $10 billion of capital over the next 10 years, the amounts generated will adjust from year to year with a greater share to be realized in the short to medium term. We estimate $6 billion will come from the wind down of the build-to-sell portfolio and the sale of the medium-term lease assets, and a further $4 billion from the recycling of existing investment property assets. Hongkong Land's got a really long track record of successful joint ventures. What will be different with this new strategy is that we will bring in third-party capital in a more disciplined and systematic way alongside Hongkong Land's own equity. We will also look to charge management fees to third-party capital providers during the development and asset management phases, providing Hongkong Land with a new source of recurring income. This approach will support our growth ambitions and also improve returns on equity. We intend to look at a range of third-party capital options depending on where an asset is in its life cycle. We anticipate Hongkong Land will own a 20%-50% equity stake in each capital vehicle whilst retaining management control. For our development assets, we will explore adding private funds to our traditional joint venture approach. Here, investors will earn a cash return from the development profits as completed assets will be sold into REIT platforms. Hongkong Land will both earn development profits from its sale to the REIT, but also developers management fees. Capital released from assets vended into a REIT or sold to a fund will be used to finance growth in gateway cities, as well as rewarding shareholders through buybacks and growth in dividends. Overall, to achieve our earnings and dividend growth targets, we plan to increase our assets under management from $40 billion today to $100 billion by 2035. Additionally and importantly, the proportion of third-party capital will rise from just over 20% to nearly 60% by 2035. To drive enhanced capital returns, invest in growth, we're also going to evolve our capital management principles, and there are four main areas here. First, our dividend. We aim for mid-single-digit annual growth in dividends per share, resulting in the doubling of our dividend by 2035 to $0.44 per share, and our projected growth in recurring income will underpin the dividend. Secondly, share buybacks. Here, up to 20% of proceeds from recycled capital may be reinvested in the buyback of shares subject to investment returns and market conditions. Thirdly, our debt levels. As you all know, we're a prudent and well-managed group, and we will continue to align our debt with our projected annual earnings, ensuring any changes in recurring earnings or capital recycled are accounted for to maintain a strong balance sheet. Finally, our credit rating. We are committed to maintaining our investment-grade credit rating with no anticipated need for a rights issue to fund this new strategy. Altogether, these measures create a solid foundation for Hongkong Land's long-term growth, profitability, and value creation for all of our stakeholders. Let me now hand back to Michael, who will go into a bit more detail about the corporate governance changes and organizational transformation before we get into your questions. Thanks, Craig. One of my goals has been to enhance our decision-making from the board level to our management team, ensuring that the decisions that we take are aligned with our strategic goals. As you may have seen, we are continuing to make big and important changes at our board level. We were honored to welcome Ming Mei, the founder of GLP, as an independent non-executive director. Ming brings extensive expertise and experience in the Chinese mainland market, but also in fund management. His list of LP relationships are very long, which will greatly benefit Hongkong Land. This is our third new INED appointment since 2022, so with Lincoln Leong and Stuart Grant, who was from Blackstone and Brookfield, ensuring our board is refreshed with a diverse range of skills and experience. Finally, as announced on Monday, we have a new chairman, our taipan, John Witt, in place for our board. All these changes serve to strengthen our corporate governance and board oversight. Operationally, we are transitioning to a sector-led organization and reporting structure, a shift that will be supported by the recruitment of new talent and the development of new capabilities. This change is not just about restructuring, it's about aligning our resources and expertise to better meet our strategic objectives. On the talent front, I'm pleased that we have secured a new chief investment officer to enhance our investment in third-party capital capabilities. This is somebody I've worked with for the last 20 years, and she's a force of nature. She'll be a very good addition to the firm. Additionally, we have appointed a new chief corporate officer to help manage our transformation objectives. In 2023, we introduced a minimum shareholding requirement for executive directors to better align management with shareholder interest. Looking ahead, we will announce a long-term incentive plan, which was part of our announcement, for our senior leadership will be the first time in 135 years that we'll genuinely be aligned to shareholder value, the senior management group. We are dedicated to running a best-in-class business with best-in-class partners, a best-in-class management bench, and all of these changes will help realize this vision. As I opened with our strategic ambition is to be a leader in Asia's gateway cities in luxury-based integrated commercial real estate. That means we focus on what we're good at, what we're known for, and where we have unique strengths. Underpinning that ambition is our commitment to enhance capital returns, to leverage new funding sources, and to deepen strategic partnerships to deliver increased value to our shareholders. Of course, our success will be measured by shareholders assessing our ability to recycle and reallocate capital, to drive profit growth, and most importantly, to enhance total shareholder returns. As you can see, we've set ourselves some very ambitious targets. In my 21 years of a real estate banker, I can't recall any other real estate company setting such ambitious targets. On these fronts, we will double our profits before interest and tax, we'll double our dividends per share. We will grow our AUM to $100 billion in a geographically diversified manner with meaningful participation from third-party capital, and we will actively recycle up to $10 billion of our balance sheet. While this is a 10-year plan, we are hungry for growth now. For those of you who know me, I'm not a passenger on a train. I like to drive the train. There's a lot of exciting initiatives that we hope in the short to medium term that we can announce to you. We are very focused on our core business at hand. We'll make sure that Tomorrow's CENTRAL retains its vibrancy and attractiveness for business and shoppers. We'll also make sure that West Bund delivers to our very high expectations. In conclusion, this is a really exciting time for our business and for our shareholders. I believe that when we wake up in 2035, our business will be significantly different, but still rightly revered for its exceptional placemaking in Asia's leading gateway cities. Thank you for your continued support, and I look forward to the journey ahead. Let's get to the questions that I'm sure you have. Thank you. Please, some questions. I'll stand. Sat long enough. Okay. Maybe at the back. Thank you, Michael. This is Sam Wong from Jefferies. I have two questions, if I may. First question is on the acquisition strategy, right? How are you going to balance the quality of asset and the return? In the ideal world, we get both, right? In reality, for any asset that is comparable with, let's say, the LANDMARK portfolio, we probably only get 3% cap rate. How are we going to strike a balance between the two? Secondly is on the dividend. With regards to the mid-single digit dividend target, right? How front-loaded or back-loaded it is? I would imagine for the first couple of years, it's more the investment period, right? Should we expect the DPS increment to kick in starting from the upcoming results, or it's going to be more- Okay, there's a lot of questions there. The first one, just I go back to the first one. You want us to explain how we are going to invest in this and grow earnings? Yeah. Okay. I think the third-party capital piece is really important to us. The many years that I've had in real estate banking, plus in my last job, getting enhanced returns through third-party capital is something that we haven't done before. That's going to be a big focus of the business in terms of how we can uplift our returns on capital. You're right. There will be a gestation period. These are going to be world-class projects, and there will be a period of time. We are quite lucky that over the next immediate term, we have many assets in China that are going to be completing. We have some of our Ring series. We have five Ring malls completing next year, different phases of West Bund. Suzhou is in 2026. I think the billion U.S. dollars of rent that we currently get could go to $1.4 billion without doing anything over the short term. That's very helpful in terms of how we can grow earnings and dividends on the back of that. On the second question was around- You're asking about the pace of dividend growth. I think the way that we think about this is ultimately what's going to underpin the dividend growth is the growth in recurring income. Michael Smith mentioned that even with our committed portfolio today, once we complete Tomorrow's CENTRAL, the West Bund project in Shanghai fully comes online, we're expecting actually quite solid earnings growth from there, an additional about $400 million in recurring income. We're quite confident that we can start to grow the dividend in the mid-single digit range in the near term, actually. I think the capital recycling piece is also helpful because as we take capital back, there will naturally be a bit of a time delay between taking that back and reinvesting in new opportunities, and we will use that cash in the interim to either return some to shareholders, partly fund the dividend, or pay down debt. A $0.01 increase in dividend is $22 million. I think that's something that we can do through all of these different avenues. It's well managed continue to drive the dividend growth over time. There's a few. Good morning, management. This is Raymond from HSBC. I've got three questions. Maybe the first question is actually about your very ambitious target as it relates to the company's ability to improve the profitability dividend to double in 10 years. For our expectation, should we expect it's going to be front-end loaded or back-end loaded? This is the first question. The second question is about the build-to-sell business. As you mentioned, there could be $6 billion of recycling, and some of that actually will be related to divesting or selling the existing inventory. Can you provide us more details of how should we expect? Would there be more asset sales for the entire project, or actually there should be more directly selling all the properties to the home buyers? That would be the second question. The third question next. It's actually about the collaboration with your companies and the entire group. Should we expect there will be more collaboration or partnership within your company with other sister company like Astra, Tacos, or even the parent company? Thank you. Firstly, we will be uploading a presentation which will have a lot more slides in this. For all the analysts in the room who want to update their models, there will be a lot more coming through. Why don't you answer the first one and I'll do the second. Raymond, I think I can recall all three questions, I'll have a go, okay? The first one was about, I think the phasing of the dividends and the earnings, right? I think it's right to say that the doubling of earnings by 2035 is naturally going to be more back-end loaded, because if you think about it, we mentioned already that with our committed portfolio, we've got some solid growth coming through. In terms of the doubling or the incremental dollar, about 40% of that will come from what we're doing in Hong Kong and Shanghai and Singapore already. I think in the medium term, you should expect to see that coming through. The remaining 60% of the growth will be made up of two parts. About half of it we anticipate to come from our profit share from investing in new gateway assets, and that will naturally probably happen in the second 5 years of the 10 years. The further half of the 60% is coming from projection out in terms of management fees and the recycling gains from putting things into REIT. A chunk of that will naturally happen in the second half of the decade. The dividend is a different story. I think here we are looking for sustainable growth, we are making a commitment to reward shareholders really commencing from the near term on that piece. I think that was the first question. I must admit, I've forgotten the second one. Why don't I go to the second? Your question was around the residential development build-to-sell. Just in terms of that business model, if you think about any residential developer, you need to keep feeding it. Whatever profits are generated from residential development, you tend to have to use those profits and go out and buy more land. As you saw in that slide, across 55 projects across different parts of Asia. In all of those, when the project is finished and we've sold the inventory, we'll go out and buy more land. The decision here is not to go out and buy more land. We're not spending that incremental dollar in the future of going out and buying more residential build-to-sell land. By making that decision as all of the inventory is winding down and coming back, that's the pivot. By making the announcement of no longer investing in that business enables us to bring back literally billions of dollars of inventory as it sells. I think t hat really underpins a lot of that capital recycling. A typical residential project naturally recycles within three to five years. We've moderated our investment in the residential business generally in the last two years because of market conditions. If you think about it, we're actually well through that sort of cycle. That's why I said earlier that we anticipate a lot of the capital recycling to be more front-end loaded from the residential piece because it will naturally come back. I think the third piece was on collaboration with the broader Jardine Group, Michael. Yeah. At our board, we had a two-day board session last week, which was amazing. It was a really great endorsement of what we're talking to you about today. At that board session, Laurent Kleitman, the new CEO of Mandarin Oriental and I, presented together, which is the first time that we've been together in front of a board. It was a real commitment of how we're going to collaborate. In terms of the group companies and Jardines, I think there's a huge opportunity for Mandarin Oriental and ourselves to grow together. That could be Mandarin-branded residences. We're not getting out of the residential business. If it's part of an integrated complex and there's a Mandarin-branded residence, we can transfer some of our residential development capability there. What we're not going to do is to buy an individual piece of land and build a condo. It's a slightly different format. Our CRM programs, there's just a whole lot of ways that I think we can do more, and grow each other's business. That's probably out of the Jardine group. Obviously, we do a lot with Jardines just in terms of everything else, but in terms of the entities within Jardines, I think there's a lot to do with Mandarin. Carl? Hi, thanks. Just want to get if there's a little bit more color regarding the $4 billion of capital that you plan to be recycled and maybe perhaps into REITs versus also the medium-term lease assets in China is, say, split between the two buckets out of the $4 billion. Related to that is, I think a common investor question this morning has been a lot of the Hong Kong REITs and also even Singapore REITs are trading at discounts to book value. Does it mean that you'll be prepared to sell at a discount to book when you try to inject these into REITs, or that may limit your choice of perhaps Singapore valuations are a bit better compared to Hong Kong's valuations? Why don't I start and then you supplement? Firstly, we have $32 billion of IP assets. Many of our peers over the last 20 years have moved their IP assets into REITs. If you think of a place like Singapore, most of Orchard Road now is in REITs. I think we have one of the last $5.2 billion portfolios of office assets sitting in Singapore that are not in a REIT. The fact that we've never done a REIT before gives us a lot of opportunity. There's a nascent REIT market in China. Ming Mei has GLP REIT, he's already listed a REIT in China. He has a J-REIT. There's a lot of opportunities for us to look at the different REIT markets and see where the best opportunities are for us. It's not lost on me that the Marina Bay Financial Centre One Raffles Quay, we built that with Cheung Kong and Keppel. Their two-thirds have both now been put into REITs. When they were put in REITs in 2012, they've both made about HKD 250 million of fees on their assets. We haven't, and we've owned a third of those. Just an observation, but it's not lost on us that that's probably not the wisest decision not being in a REIT. Maybe another observation just to round it out. I think as we all know, Hongkong Land's trading at about 70% discount to NAV, which kills us. Whilst the REITs in Singapore are trading at a discount, it's a narrower discount, as you know. We're not under any pressure to do anything unless the market conditions are supportive. I think there are opportunities to create value. My career has been a REIT evangelist, Link REIT and Keppel with Steve and a few others. There's different many ways that we could think about doing REITs without having to sell at a discount. Sarah? This is scary. Your stock price has opened up 10.5%. Oh, great not quite as soon anymore. That's good. Congratulations and thank you for caring. I guess I just wanted to clarify, Craig, what you said before. The REIT/fund plan might be sort of further down in the piece and then maybe a question for Mike, just in terms of how you think about You called out Singapore and those assets, and I think that makes a lot of sense, but how will you make the decision between, I presume funds are going to give you a better price there than a REIT, unless things change substantially. Will we ever get a REIT? Then how will you decide which assets go in and which stay? Would we see, for example, LANDMARK go into a fund or a REIT, and would you let go of that? Are some of them untouchable, that's going to stay on balance sheet? That's very good questions. I think on the timing, I was talking about the phasing. I was referring more to profits. In terms of the capital recycling and the establishment of third-party capital, we're starting that now. I think we need to start that now, Sarah, or else we'll never get to our double profit ambitions, frankly. I think as a team, we're very focused on near-term events and priorities. That's just to maybe guide you a little bit as to where we're focusing our time and energy. In my mind, to be a good steward of capital, there should be no holy grails. There should be no crown jewels. The fact, though, with Tomorrow's CENTRAL, we are spending a lot of money, as are our tenants, to grow that. There's a big development process that'll be ongoing for that. There are other parts of our portfolio in Hong Kong we value every six months by Jones Lang. That valuation is out there very publicly. If somebody wanted to come and speak to us about that value or a premium, we shouldn't ignore it. I think that's trying to answer the question, is that there should be no holy grails, and our valuations are out there. Everyone knows what we expect to receive for our properties. Okay. I think you've been putting your hand up a bit, sir. Thank you very much. This is Mark Leung from UBS. I think a few question on my side is, I think number one, we are still focusing on maybe great office, luxury retail, residential, and hospitality. Just want to check, what is the new yield on new developments yield on cost we are expecting if we are started to invest in right now? I think that's the first questions. Second question is regarding on the company shares. I think for asset-light model, it will require a lot of development opportunities, right? Do you see there's a lot of development opportunities in different Asian gateway cities, CBD areas? You mentioned maybe Shanghai, Hong Kong, and Singapore. What kind of example of Asian gateway city you are looking at? I think my last question is, I'm not sure management can reveal or explain why we set the target on AUM growth is about USD 100 billion. Right Why the profit is going to be double by that time. Is there any rationale behind, for example, what kind of management fee we are aiming to collect from the fund level, et cetera? Thank you very much. Do you want to answer that? I think in relation to the first point around returns, clearly it depends on which location we're focused on. Cap rates, people naturally tend to focus on the Central portfolio being sort of very prime 3%. If you look around the region, there are opportunities for higher yield. I think as Michael mentioned, from our point of view, that type of return can be boosted by being more proactive in terms of how we finance the project and also look to recycle the capital during the project. Historically, Hongkong Land has acquired a piece of land, built the building, and held it for generations, and it has created value over the long term doing that. In this way, we will boost our returns by being more flexible about vending assets as we develop them into REITs or other platforms, and then taking a yield there. The returns will fluctuate depending on market conditions and the city that we look at, because there are different return dynamics depending on where we're going. I think in terms of the cities that we're looking at, we mentioned the three that we're in today. I think in Hong Kong, we are investing in Tomorrow's CENTRAL. In terms of that incremental investment return that Hongkong Land is going to get from that is actually very compelling. I think we spoke about that at the time when we announced. In Shanghai, we've obviously invested a lot in West Bund, and we're starting to complete that in phases there. I think the other cities, I mentioned a little bit about blue-chip tenants and luxury customers and really key gateway cities. It's not much of a surprise that places like Tokyo and Sydney are kind of under review. No decision's been taken, we just need to keep looking at those markets generally. Yeah. Look, we're not naive about how difficult it will be to enter new gateway cities. If it's Tokyo or Seoul or Sydney, they're very well provided for by very large developers. I think some of our unique opportunities is Mandarin Oriental. We know that Mandarin has one Mandarin in Tokyo. I think they'd probably like to have two, and if they had two, I'd love to be part of it. I think there's opportunities for us to follow some of our luxury retail brands. We've had opportunities on the back of how well they know us here and how long we've had a relationship with them. I think that follow our tenant strategy is something quite unique to us. Also, we're going to have some pretty good examples to show people. We're going to be able to show them Tomorrow's CENTRAL, be able to show them West Bund. We're able to show what we've done in Singapore, which are pretty good landmarks to be able to use as case studies as to why we think we're the right party to come into an urban regeneration area or whatever that may be. Secondly, for us, there's also always opportunities for us to think about how strategically we can expand our core. We've got, besides our core three markets, we've got a great project in Wangfujing in Beijing. If an adjoining site came up to that and we could add scale to that project, we would. It's not just about buying a brand new greenfield site, it's how we can build more from what we already have and maybe expand the focus that we have of that particular project. Did we miss a question? Was there three? Yeah. I think the last one was how to recognize the numbers, like what should be the AUM, how is it translated into a couple of years, and into what kind of Yeah. I'm not going to disclose the sort of management fees that we've modeled out there. That'd be w hat we've done is we obviously know the fees that are typical in the market. I think, as I said earlier, we're looking to earn fees in a few ways. First of all, development fees. As we find new projects that will be developed, we'll find capital partners that will pay us a fairly modest fee, I guess, in terms of on the asset value, but a fee nonetheless. We'll also look to vend that completed asset into, say, a REIT or other fund structure and look to earn management fees throughout that period there. Actually, over time, as we build scale in this strategy, we are looking for a fairly reasonably sized management fee income stream to start to come through. Of that doubling of profit that we modeled out in the next sort of 10 years, I would say about 15% of that incremental $ is sort of assumed to come from management fees. My intention is that we never do a joint venture again without getting paid for it. We provide all the expertise, all the branding, everything, and we're not getting paid for it. That just doesn't make any sense to me. We're going to make sure we get paid for our worth. Please. Thank you. This is Cindy from Citi. Three questions. One is on your long-term incentive plan. Is there any more color on the details of that? I'm specifically curious about your mention of metrics linking to your share price. Exactly how does that work? Would you consider a share incentive plan? This is the first question. The second question is on your portfolio concentration, say with 100% AUM, we expect 70%-80% still concentrating in Hong Kong, Singapore, Shanghai, or a much more fragmented exposure by them. The third question is on your third-party investment team. I think you mentioned earlier you have on board a new chief investment officer. How about the team setup and when do you plan to start meeting with the party investors and start the whole process? Just the timeline of that. Thank you. We purposely put the LTIP statement in the announcement, which is good. We hope more is more. We really want to be aligned to everyone in this room. We want to be aligned to shareholder value creation and share price. That's something that's never been put in place in Hongkong Land, and I think it's long overdue, and it's really going to make sure everybody knows that the days of us just focusing on dividend and not really worrying about share price are gone. We're all going to be absolutely committed. I've told the team that every morning I want them to wake up and look at the share price and every evening wake up and all through the day, look at the share price. That's what I want everyone to be driven by, a real performance-based culture. The LTIP will help us, I think, all on the same journey together to drive the share price. Sorry, the second question? Second bit's about diversified portfolio. Maybe I've answered that a little bit. I think you saw on the slide that we're aiming to have no greater than 40% PBIT coming from any one particular city, and there's a particular reason for that. When you look at the share price of Hongkong Land over the very long term, it's very much correlated to Hong Kong prime office rents. A key part of this strategy is to really look to grow and diversify our portfolio so that we have a more balanced portfolio across different cities. Ultimately, we want to, as much as we love Hong Kong, we would like our share price to be influenced by a range of factors rather than just one. That's really where we're coming from about the diversification point. I think the final point was around teams. Yes. Our Chief Investment Officer has left the company that she was previously. She's announced that, and she's on gardening leave, and she will be joining in January the 6th. At that point, there's already some people we've got in the team that will be working with her. She's got a big job ahead because we've got big ambition. I think she's up to it, and she's really good at doing what she does. She's got great relationships. Working with Ming Mei, who's on our investment committee. Our future investment committee is John Witt, Ming Mei, and Stuart Grant. Just a fantastic group of people that's going to help us drive that business. I have three questions. The first question is related to the China exposure. On one hand, you sell down your, you to sell mainly in China, but on the other hand, based on the principle, this doesn't prevent you from investing in the key gateway city in China. What should we think about the China exposure, say after 10 years? Second question is related to the asset recycling. Do you intend to recycle capital up to $4 billion from the mature asset? Can you achieve this goal without, say, unlocking value of Central portfolio or monetization of the Central portfolio is the key to the asset recycle. The third question is relating to the investment mandate. You mentioned that you would like to invest in the key gateway city in the CBD. Based on this principle, would you invest in, say, in Hong Kong, in case of Hong Kong, outside of Central such as Causeway Bay? Just with our China business. To be clear, we've made a decision to no longer be in the build-to-sell residential business across the region. This is not a China. Although we do have a big exposure in China, this is not China specific. This is a pivotal decision away. We're not going to invest an incremental dollar in that business. We're going to complete what we are obligated to complete to the same standards that we have always produced, but we're not putting any incremental dollar into that business. In terms of China, West Bund is an $8 billion U.S. dollar project. Suzhou has a Mandarin Oriental and a lot of luxury brands have already signed up. Chongqing also has a lot of luxury brands signed up, and Beijing, Wangfujing we've had for six years. It's got a Mandarin and a whole bunch of really great retail tenants. Those are, in my mind, assets that qualify for luxury-based or ultra premium that we will want to hopefully stay with for forever. We're not by any means leaving China. I think the addition of all of those assets is in excess of $10 billion U.S. or something or thereabout. It's still a very meaningful portfolio, actually it's a core part of our future earnings. I think you're right to say that mainland China remains an area of focus, albeit in key gateway cities. There are not many cities that we will proactively look to expand, but they're still an important part of it overall. I think the second point was around Hong Kong assets and can you achieve the $4 billion without selling some of Hong Kong. I think we've got $32 billion of investment properties, of which a large part is Hong Kong. I think the $4 billion as a percentage of the $32 billion is about 13%. It's not a huge number overall. I wouldn't expect us to be selling down our Hong Kong portfolio in a big way at all because if you think about it, the success, the economic moat that we have around the portfolio is created because of being together. The way to think about it and what we tried to allude is with third-party capital, is that Hongkong Land will continue to manage all of its investments going forward. We may choose to bring in some investors alongside us, but in terms of the proposition that we offer to our tenants and customers, you shouldn't expect that to change overall. Sorry, what was your third point? The third point was around- Causeway Bay Causeway Bay. Look, we have $24 billion in this portfolio. That's a big concentration. I think this is where our expertise, where, 1889 when we first started, this is our core business. We are helping our sister company, Mandarin, with One Causeway Bay. We're the leasing, we're the property manager, the asset manager, and we'll continue to help them in that regard. That is their office building. I was going to make a comment about Central and Causeway Bay and CBDs. I won't go there. Maybe, Michael, we should take a couple of questions online as a few have come through. I think, just to be fair to everybody that's written in. Sirius from Bank of America, I think very similar question to you, Sarah, from you. Will Hong Kong portfolio be sold partially or put into a REIT? I think we've answered that in the rube already. A question from Hannah made at UTOP. How and where do you think you can be competitive in new markets outside of Hong Kong, Shanghai, and Singapore? Are you just focusing on developments? How do you get scale in each city? It's a great question. Again, we're not naive. We know all these cities are very tough. We do have Beijing, and we've also got a great project in Bangkok. We bought the British Embassy many years ago, and we're partnering with Central. Hopefully, that will have a Mandarin residences, it'll have a small office tower, it'll have some very high-quality luxury retail tenants in there as well. Even though it may not be deemed a gateway city, that meets a lot of our objectives of having an integrated ultra-premium property project. In terms of brand-new markets, we're going to have to study them. We're going to probably have to set up teams. If we're serious about Tokyo, we're going to have to have a rep office and spend a lot of time understanding that market. Again, ideally, whatever Mandarin does next, we do with them in that city. That sort of follow the tenant process into these new markets is really critical for us and really, I think, provides a point of difference that not others may have. Got a good question here, which is not a surprising question from Wen Han at Principal Asset Management. Given that Ming Mei from GLP has just joined, Michael, will Hongkong Land look to become a logistic properties and data center company going forward? I must say, in my last life, we acquired about $20 billion of data centers and warehouses across U.S. and Europe. I love the asset class, but it's not for us, just to be honest. There's no extension of what we do excellently. If we went into some sort of distant market and bought some warehouse land and told you all that it's Hongkong Land, therefore it's amazing, it really doesn't echo the same as what we're trying to achieve here. I also think those sectors are very late cycle, and pretty well everyone I know is a data center expert now. There's just not a lot of upside for us. We did, with our consultants, look at every single asset class, every single geography. There may be some elements for us to get into some adjacent areas. In West Bund, we have a lot of office buildings. Maybe we could convert one to medical office, and that could be something that could complete that ecosystem. We want to think about GBA, there's 110 million people, and how GBA evolves over time and be nimble enough to see where the new opportunities are and be the front of a sort of a new opportunity than rather being at the back end of a cycle. We have sort of preserved in our sort of balance sheet and projection, some capital allocation to being nimble and seeing what's the next thing that really we can go to LPs or go to ourselves and say, "This is an extension of what we do best," whatever that may be. Any questions from the floor? Raymond, you got a fourth one. Yeah. Sorry. Two questions here. Actually, just follow about the comments about the mature assets in your portfolios, which the previous analyst asked. Like, as you mentioned, many of China's assets, like your Suzhou, upcoming Chongqing, those projects, great projects, great potential. We can't knock three more. For us, what should we think of the going forward funds or REIT formation? Should we think of every asset in your existing portfolio, can we put into the public REITs or private REITs in the coming future, or actually some of them only? This is first question. The second question is actually about the capital allocation. Because one of the questions you mentioned in the slide is about the buyback. You mentioned about approximately up to 20% of the recycled proceeds can be paid as a buyback. Can you share a bit more detail on this one, whether it's from profit expectation, from asset sales or everything here, can you provide more guidance here? The last thing is, can you share with us a bit more about the current valuations of the China property development business here? Because there were some impairment change charges in the first half this year. Thank you. Let's start with the first one. Our medium-term lease assets, which have always been earmarked for sale, it's quite a substantial portfolio. There's like $3 billion when fully completed. There's a nascent China REIT market. GLP just happens to have one of the best China REITs, I understand. There's still, I think, a lot of progress that can be made in that framework. It will take some time for us to complete and stabilize those assets. If there was an opportunity to do a China REIT, we've got a great portfolio that's really well-built and really well managed that we could sponsor into that. If not, then it could be a private fund format. We have in total 8 REITs, I think. Chongqing is now in place. It's its third anniversary. Chengdu is now open, another five will open next year. It's a really neat little portfolio of assets that really cater well to their local trade area. They don't cater well to our strategy. They're not part of an integrated complex, but as a standalone, they could be a great portfolio that could be REITed. You were asking about impairment, I think, as well, which obviously was something that we did at the half year, which was really we reviewed our entire China build-to-sell portfolio given the challenging market conditions. You're right, there were a number of projects where we decided proactively to take some non-cash write-downs on those. The reason we did that was because as we continue to do, we adjust the pricing of our inventory to try and encourage sales and recycling. That was quite a comprehensive process, and we're not anticipating any further write-downs in the portfolio unless there are significant deteriorations in the market. We're hopeful that with the stimulus that's happened in recent weeks, and actually there's been a bit of a positive uptick on our residential sales in the Mainland in the last two or three weeks, that hopefully that sort of sets us on the right way. The whole objective of that was really just to get the capital recycled as proactively as possible. That Golden Week, the first week of October, we tripled the sales that we had done previously in the previous week. The one week was three times. It's come off again, but that first week was incredibly powerful for the residential sale market. Was there another question? Yes. It was about buyback. Sorry, apologies. We've done a lot of analysis and research about driving shareholder returns. That's been a big part of this review. The clear takeaway from that analysis is that actually, for long-term shareholder return growth, Hongkong Land needs to grow its business. We can do good things for shareholders, like grow the dividends and buybacks, which we are doing, but that by itself is not going to create long-term growth. Our number one focus is on growing the business. That's why we've outlined the key gateway city strategy. That's why we're trying to double the profitability. It's really from growth. I think we also recognize as part of our capital allocation framework, that if we look at things, particularly where Hongkong Land share price is trading today, we can't deny that that's an attractive long-term investment for shareholders to think about that. As we recycle the capital back, we are focused on recycling the capital in the short to medium term, we are subject to share price and market conditions, looking to invest some of that in the buyback of our shares. That's really how we kind of think about it, but it's really driven by returns, Raymond. There needs to be a compelling reason to buy back the shares over time, which we will continue to look at. It's not lost on us, though, to sell an asset at NAV and then buy back stock at a 70% discount. That's a great Happy Meal, right? That's something that we should be really focused on if we can do that. Hopefully we can do that. Kara? Hongkong Land obviously has always been known to be a great developer of premium assets. Since you have laid out this new strategy, do you plan to also acquire third-party assets that's already completed, or do you still predominantly want to focus on development of new projects? The second question is, $100 billion AUM, that's a very ambitious target. Would you want to acquire existing other managers to acquire AUM as part of that strategy? Yeah, great questions. The second one, no, I don't think we are in that marketplace. I think we want to organically grow. I think there's enough experience across myself, our new CIO, Ming Mei That we can organically grow. I think we've got $32 billion of IP that can seed funds, both public and private. I think we've got some unique points of difference that we should be able to organically grow that type of business. Our brand, I think, really does extend into it. Being a steward of third-party capital should be a lot easier for us to do than somebody who's never sort of done real estate before. Sorry, your first question was? You buying other people's completed assets. Oh, okay. Look, I think our preference would be to develop. I mean, that's what we do best. If we create REITs, those REITs may go off and do their own acquisitions, and they'll have their own board and their own management teams, and we may control the manager or control a big chunk of the equity. They will go off and do what they may need to do on their own volition, and they may. I think from our perspective, our model would much be better to develop to the quality that we develop. Maybe we bring third parties alongside that development process. We stabilize the assets, and then we put those assets into captive vehicles. It's a pretty simple model that's been tried and tested by others. We've got a lot of assets on our balance sheet. We've got a great development quality. We've got a great brand. I think if we put that together, we could be a really powerful business. Please. Thank you very much. I'm Carl Chan from JP Morgan. First of all, I like how you have our company logo on the picture over there. Oh, yes. JP Morgan. I didn't know it was sitting there. You noticed that. You are our biggest tenant in Hong Kong Central. Of course, we have a tenant there. Just two quick questions. One is about acquisitions, another is about disposal. For acquisitions, just curious, do you have any preliminary list or target of acquisitions that you may want to make in the near future? Do you have a preliminary list of, let's say, third-party partners that we want to collaborate with? Would that only be decided in the investment committee later? That's my first question. The second question is on disposal. How do you think about the appetite in acquiring your assets in perhaps mainland China, like commercial assets? Are we already in touch in some potential buyers on the disposal? And what kind of cap rate that we are thinking about? Thank you. Okay. Look, I think we've done an amazing job. I've been on board for 212 days, to be able to get to where we are now with quite a significant pivot, quite significant decisions made, full board endorsement, rebranding, all of the things that we've achieved. Now we can get on with our day jobs after this, hopefully, and execute on the plan. Bringing our chief financial officer on, I think, will be, and that won't happen- Chief Investment Officer. Chief Investment Officer. You're already on. You're here, Craig. Absolutely. My body disappears from the ground. This is when the circle opens up, you fall through the floor. Bringing the Chief Investment Officer on, I think at that point, she's going to be able to bring along a lot of LP capital, particularly across this part of the world, a lot of sovereign wealth, a lot of insurance companies, who we can at least start the debate and start the discussion of how we can collaborate. Look, we're not going to just wait for 12 months to do this. There's a lot of initiatives, as I mentioned, that we want to announce as quickly as we can that supports what we're doing. I don't want this to be just a theoretical, this is who we're going to be. I want to be able to have announcements out on a regular basis saying, "We said we'd do this, and this is what we're doing." That's really important. Your second question. Maybe just on the investment committee side that you mentioned, I think that is an important part of it. Engaging and working with our investment committee is a key part of the strategy going forward. I mean, a couple of weeks ago, we had two days with the board, we went through all the strategy, we went through some early ideas, the board's fully supportive. We do need to work through that sort of methodical process. There's a few things in the pipeline, but yeah, we'll need to go through that process. Any from the Okay. I'll throw you this hot potato, Mike. Thank you. Highway from UOB. Talking about the collaboration between Mandarin Oriental and Hongkong Land going forward, obviously, we're going to be working more closely together. Is there a possibility of the two entities doing something more concrete by merging? Good question. Look, I think Mandarin actually was spun out of Hongkong Land many years ago. We are and we continue to be incredibly close. There's a lot of areas of cooperation. Laurent has been on board for 12 months as an external hire. I've been on board for just over six. We really want to collaborate. That's what we want to do, is collaborate. We think there's a lot of opportunity for us to be a capital provider as their business grows. We already own four Mandarins. I think we own Jakarta, Macau, Landmark, and Beijing. We're building five Mandarins, so we'll have nine Mandarins on our balance sheet over by 2027. Maybe we can be third-party capital around that, and maybe we can help them do other third-party capital. That doesn't necessarily mean any type of merger. I think we want to elevate each other's businesses, we think there's a lot of ways that we can do that. A couple of questions online from Alvin at CLSA, who's asking about the buyback and the timing of it, I think I've addressed that question already. Hopefully, Alvin, you're happy with that. Then a question from Jagdeep and Naveen. It's a good question. Many of your industry peers listed in the region have also strategically pivoted towards introducing third-party capital and funds management. These companies have struggled to actually introduce new capital partners and grow AUM, particularly those with assets in China. What sets Hongkong Land's strategy and ambition apart? It's a great question, it's a new business, it's going to take a lot of my time and focus Our new CIO's focus. We wanted to get a lot of help from our investment committee, Stuart Grant and Ming Mei. I think our brand is quite unique. 135 years of history of being a steward of tenants, 2,500 tenants, $32 billion of investment property. I actually think by being late into this having the team that we're going to assemble around us, we'll actually add. We know how important it is, Ming Mei in particular at the board meeting, that if we go and become a steward of third-party capital, we have to asset manage, property manage lease even better than we do now. We have to really elevate because we're managing third-party capital. I think there's a whole cultural change and strategy change that we need to be part of as part of this journey. We're not naive, I've been around a while I know how these things work, I think we're going to make it a success. I think it's also our credibility. Without touching too much on others, we have very strong pedigree in think and operating prime properties. Having a very clear strategy about who we want to be, but also having the existing relationships with many of our tenants and partners already in place is also very important. I think starting from that strong position really does help us stand out. As Sarah said, the Goodman of ultra-premium, possibly. Mark. Thank you. I have a question, maybe specifically for Michael. I think you have a really long experience in industrial and logistic data center in terms of how the asset light is running. For Hongkong Land, we are going to have a different asset class, right? Maybe like retail and luxuries. What do you think will be the biggest challenges going forward for you to execute this kind of asset light strategy? No, that's a great question. I think the type of investor needs to be quite nuanced, right? We need to have investors, LPs, who want to come alongside us who really truly appreciate our brand and our expertise and what we can do. I think it's going to have to be much more longer-dated capital, maybe lower cost of capital that knows that we're building something unique, and we can sit there and show Hongkong Tomorrow's CENTRAL and West Bund and what we've done in Singapore, and show we can do this. If you want to be part of this for a long-term journey, we should be your partner. I do think it's the type of investor. I guess logistics, other asset classes, they're more sort of higher yielding, higher total return. I think the investors that we're going to have to attract will have to be more longer-dated, more sovereign wealth type people who want to be associated with these type of quality projects. I think unless there is anything further, Craig and I are going to stay around. There is a little booklet that we're all going to hand you all, so you can all put it in your pocket, which is. We had a branding consultant, VNCO, who we have taken from London who's never worked in Asia before and has been fantastic. Was responsible for the video, responsible for putting JP Morgan there by the eye. They had put this little booklet together which sort of explains and encapsulates who we are, who we want to be, and hopefully you can put in your pocket and take away and read about it. We'll have thousands of them distributed, I think is the plan. I think you're going to be handing out at the door, right? Otherwise, we're going to stay around and happy to mingle and chat and look forward to the future. Thank you for attending. Thank you