Good morning, everybody and members of the public. Welcome to Mapletree Pan Asia Commercial Trust or MPACT's analyst briefing and live webcast for our results for the fourth quarter and financial year ending 31st March 2026. I'm Li Yeng, I have the pleasure of hosting today's results briefing. Allow me to introduce our speakers for today. They are Ms. Sharon Lim, Chief Executive Officer of MPACT, Ms. Janica Tan, Chief Financial Officer, and Mr. Koh Wee Leong, our Head of Investments & Asset Management. We'll be presenting our financial results, providing business development and updates, and sharing market insights. Following the presentation, we'll open the floor for Q&A session, where we invite you to ask questions or seek further clarification on our results. Without further ado, I will hand the floor over to our CFO, Janica. A very good morning. For FY 2025, 2026, this was a year of deliberate reshaping for MPACT. Three non-core assets were divested, two in Japan completed in August 2025. In February, we completed the divestment of Festival Walk Tower, the office tower of Festival Walk. All proceeds were deployed towards debt reduction, strengthening MPACT's financial position. In relation to the divestment of Festival Walk Tower, a loss of divestment of SGD 10 million and a balancing charge of SGD 8.3 million on the capital allowance previously claimed on Festival Walk Tower was recorded in fourth quarter FY 2025, 2026. Okay. Now, let me quickly go into the results. Fourth quarter, gross revenue and NPI were SGD 210.7 million and SGD 160 million respectively, lower by 5.5% and 5.9% year-on-year. This was largely due to lower overseas contribution, unfavorable FX stemming from weaker Hong Kong dollar and Japanese yen, and the divestment effect from the two Japanese assets and the Festival Walk Tower. Singapore's gross revenue and NPI grew 1.8% and 2.1% year-on-year respectively, led by VivoCity as well as from other office properties. OPEX wise, it's down 4.1% year-on-year, mainly due to reduced operation and maintenance expenses and lower utility expenses. The lower contributions from operations were partially offset by interest savings from lower interest rates on Singapore and Hong Kong dollar borrowings, as well as on loans repaid using the divestment proceeds. Distributable income for the quarter, SGD 100.2 million and DPU SGD [1.90], which were 3.3% and 2.6% lower as compared to fourth quarter last year. Without the one-off balancing charge which I mentioned earlier, the DPU would have been SGD [0.020], which is 4.6% higher year-on-year. Moving on to the full year results. Gross revenue and NPI were SGD 867.3 million and SGD 664.4 million, down 4.6% and 4.3% year-on-year respectively. Similarly, this reflects lower overseas contribution, divestment effect and FX impact. Singapore's gross revenue and NPI, excluding Mapletree Anson, which we divested in last financial year, grew 2.3% and 4.1% year-on-year respectively. Interest expense were SGD 186.8 million, lower by 15.3%, mainly due to interest savings from lower interest rates from Singapore and Hong Kong dollar borrowings and loans repaid using the divestment proceeds. The lower interest expenses, combined with the better Singapore contribution, more than cover the lower overseas contributions. Distributable income for the year, SGD 421.4 million, DPU SGD 0.0797, both marginally lower than last year. Without the balancing charge, DPU would have been SGD [0.0811], 1.1% higher year-on-year. This Singapore portfolio delivered a 4.1% higher contribution to NPI. Singapore portfolio now accounts for more than 60% to both groups gross revenue and NPI. VivoCity recorded a 7.6% growth in full year's NPI, despite the AEI disruption, anchoring Singapore's performance. We did a full year valuation at 31st March 2026. MPACT's total portfolio valuation were SGD 15.2 billion based on the independent valuation. On a same-store basis, this is 2.1% lower year-on-year. Singapore's valuation uplift of SGD 278 million or 3.1% year-on-year largely offsets the SGD 301.7 million operational valuation decline in the overseas portfolio. The overseas portfolio was further impacted by a SGD 301 million of FX effect resulting from a stronger Singapore dollar against Hong Kong dollar, Japanese yen and Korean won. Excluding this FX impact, the total portfolio valuation would have been broadly stable. The higher valuation of the Singapore portfolio was driven by VivoCity, which recorded a 5.4% uplift on a year-on-year basis, with the remaining Singapore assets holding steady. On the overseas valuation, these were lower year-on-year, driven by FX impact and softer market contributions in Greater China and Makuhari submarket of Chiba in Japan. Moving on to balance sheet. With the divestment and the lower valuation and, plus the lower borrowing, MPACT NAV per unit decreased from SGD 1.78 a year ago to SGD 1.73 at 31st March 2026. Okay. Moving on to capital management. Gross outstanding borrowing, SGD 5.7 billion. This is following the repayment of HKD loan with the proceeds from the Festival Walk Tower divestment. Leverage ratio improved to 36.5%, with the average cost of that decline to 3.16% per annum and whereby strengthening the interest coverage ratio to 3.2 times on a 12-month trailing basis. This improvement was driven by proactive debt management, supported by the lower interest rates conditions. The average time to maturity on debt profile was three years by the end of the financial year. By the end of the reporting period, MPACT has a financial flex of approximately SGD [0.9] million in cash and undrawn committed facility, ensuring sufficient liquidity for working capital and financial obligations. We will continue to ensure a natural balance sheet hedge by closely aligning the debt mix with the geographical distribution of MPACT's AUM where feasible. MPACT's gross debt profile remain well distributed, with no more than 23% of debt expiring in any financial year. Okay, we have started to work on the refinancing for FY 2027, 2028, and the SGD 265 million PERPS will be refinanced using bank borrowings, and this will bring our gearing post the refinancing of the PERPS to approximately 37.6%. On risk management, to shield against interest rate volatilities, we continue to keep our fixed rate debt above 30%. As at 31st March 2026, the fixed rate debt stood at 71.5%. Forex remains volatile against Sing Dollar, approximately 95% of our foreign source distributable income was hedged into Sing Dollar based on the rolling 4-quarter basis. Okay, on the total return. The total return for the year was 12%, comprises of 5.6% appreciation in capital and 6.4% in distribution. We remain focused on driving sustainable performance through market cycles. On this slide, it shows the distribution detail. DPU for fourth quarter was SGD [0.190]. Unitholders can expect to receive the distribution on 17th June, and the book closure date is on 28th April 2026. With that, I shall now hand over the time to Koh Wee Leong. Thank you. Good morning, everyone. I'll just run through some developments on the portfolio and give you a bit of color on the performance of the assets. On occupancy, you'll see that occupancy on a year-on-year basis remains largely stable, even taking into account the impact of the divestment of the three assets. That's largely driven by improvements at MBC, which has offset the lower occupancy in the China and Japan. For MBC, you will see that we have improved occupancy slightly. There have been a number of new signings at the property, that includes a fairly large IT company, which will be taking up a substantial amount of space, close to about three floors. That's a tenant that lease will commence towards the end of the calendar year. Some of the other leases will commence slightly earlier but still looking at July, August, September type of timeframe. Drilling down to the two slightly more problematic geographies. For China, occupancy remains fairly constant against December but has dropped against a year ago. That's largely driven by the macro economic factors in China, together with the significant amount of supply, particularly in Shanghai. That's caused the leasing to be fairly weak, and we can talk a little bit about the rental reversions in the next slide. For Japan, we have been seeing declining occupancies in the Japan portfolio, largely due to non-renewal of the master leases. We have already had two rounds where Seiko had left SII building, and we had NTT UD give up their master lease at MBP. Those were in the last two years. As at 1st of April, Fujitsu's master lease at FJM would have ended. This number at the 31st of March would have dropped down. This 71.5% as at 31st of March would have dropped down to 57.1%, if you took into account the ending of Fujitsu's master lease at FJM. Okay? For the other assets, the occupancy remains fairly constant and strong. Moving on to rental reversion. Rental reversion on the portfolio basis is flat. The Singapore properties improvement in rentals, particularly at VivoCity has helped to offset the weakness, continuing weakness at the level of China as well as in Japan. Moving on, lease expiry profile improved slightly from the previous year, particularly driven by lease renewals at the office properties. I think one thing. Go to the next slide. One thing that we should mention is that post the close of the quarter, we actually managed to renew one of the larger tenants at MBC. That's helped to push out the lease expiry profile because the lease was on a fairly long-term basis, more than five years. Moving on to the next slides. There's been a lot of questions around utilities costs and the impact of the Iran conflict. We have taken risk mitigation measures to try and limit the impact. Earlier in the month we had extended our utilities contract. If you recall, the Singapore utilities contract was originally signed to October of 2026, and we were looking for suitable opportunities to extend out the contract. Given the current market volatility, and given it was interesting to find out that we could actually extend the contract at substantially the same rate as what we had entered into for the current contract. That's given us a little bit of stability. Because of the longer-term uncertainties as well as the market's perception that this conflict will not be long drawn, we have locked in rate only for 1 year. For the period 1st November 2026 to October 2027, we have locked in rates at substantially the same as what we have currently, that we are currently paying for the Singapore portfolio. The second year we have locked rates float, and that's to potentially take advantage of changes in the market as they go forward. Certainly if things start to, if we have a bit more certainty as how things will be moving, whether up or down, then we have the option to fix the contract for the second year as well. Singapore accounts for about two-thirds of the utilities expenses for the portfolio. For the other assets, there generally are not so much opportunities to do what we have done in Singapore, which is to do long-term fixes on utilities rates. That being said, the other geographies tend to be a bit less, seem to have not seen significant increases in utilities rates, despite the fact that most of the geographies have fuel-related components in their utilities formulas, utility rate formulas that allow the utility providers to pass on some increases in fuel rates. That's largely due to the fact that most of the other geographies have got substantially less oil and gas in their electricity generation mix. We'll continue to monitor. One thing that, across the portfolio we will be doing is to reduce effectively, like, reduce electricity usage, whether that's by optimizing chiller performance, increasing set point for air conditioning or implementing later turn on and early turn off, yeah, for air conditioning and other building services. Hopefully that will allow us to limit the impact of the utilities increases going forward. Bear in mind, most of these measures are fairly incremental. We expect just something like 2%-3% improvement in electricity usage. Okay. Moving on. Let's talk through VivoCity. In terms of shopper traffic year on year, they've seen a good 3.6% increase, and our tenant sales is up 3.7%. Bear in mind that, throughout the early part of last year, a fairly large chunk of basement 2 down for asset enhancement. In the next slide, you can see the completed basement 2 asset enhancement. This was very substantial. Phase 1 had changed the kiosks on the, as you come out of MRT on the left side. On phase 2 was a conversion of some of the car park spaces to retail, and that's as you come off the MRT on the right side. Okay. That delivered a fairly healthy ROI of 10% and has definitely enhanced the retail experience as well as improved the tenant mix in the new basement 2. Moving on, we continue to refresh the tenants throughout the mall, both in terms of new concepts as well as getting tenants to revitalize their spaces. Previous quarter, Chinese New Year celebration was the key highlight for our A&P. That's drawn in quite a good amount of traffic. Because Chinese New Year was slightly late last year, we could have our Chinese New Year events run for a little bit longer, and we definitely see better performance on that basis. Moving on to Festival Walk. Shopper traffic, that we did see an improvement year-on-year, but tenant sales still remain fairly weak. I think Festival Walk is, while you will see that Hong Kong in general has had some improvement in tenant sales, in retail sales, that's largely been, we feel that that's largely been driven by improving tourism at in the territory. Fortunately or unfortunately, Festival Walk is not a tourist-centric mall. You will see that those improvements have accrued to retailers and retail malls in the Tsim Sha Tsui and Central area. Moving on. We do see a number of new tenancies in the mall, and this has helped to refresh the mix within the mall, especially on the F&B side. Okay. Shopper engagement is continuously key at Festival Walk, and I believe that that's actually contributed to improving the shopper traffic at the mall. These are some of the events that we have probably run at the mall. One positive development, we have done, this is a current ongoing space reconfiguration, a small AEI at Festival Walk. We reconfigured the space for one of the anchor fashion, fast-fashion tenants and split the space into six different concepts. The works are currently ongoing, and expect it to complete by second quarter. The outgoing rentals for the, the outgoing rent. Hello? Hello? It seems like my microphone is muted. Hello? Yes, I'm hearing you. Okay. The ROI that we expected to deliver will be close to 50% for this reconfiguration exercise. Okay. Last but not least, we'd just like to update that we have completed the restroom of Festival office component earlier in the quarter. Okay. Next in slide is just update on the program as of our tenancies. Okay. Thank you, Janica Tan and Koh Wee Leong. We're now ready to take your questions. For our analysts, I may couple you to raise your hand on the platform, and I'll unmute you when you can ask your question. We kindly request that you please state your name and affiliation before asking your question. For online participants, you may submit your questions through the text Q&A platform. First, we have Terence from JP Morgan. Terence, please unmute yourself and ask your question. Yes. Thank you. Congrats on the results. If I may ask on AEI plans, thanks for starting the AEI work at Festival Walk. Perhaps maybe you could share a little bit more as to whether you have further AEI plans for the broader Festival Walk and perhaps for VivoCity. The second question from me, you divested three assets this year. Gearing stands at about 36.5%. Even after the refinancing on the PERPS, you still do have a bit of gearing headroom left. I would like to ask whether you'll be looking to redeploy some of the proceeds into investments going forward. Thank you. Hi, Terence. In terms of asset enhancement, let's take the asset enhancement question first. I think we mentioned before, it's something that was quite surprising to us when we took over the Hong Kong asset. Development planning in Hong Kong seems to take a fairly long time. We have had a couple of, a number of asset enhancement plans, which we have been toying around with for the last 2 to 3 years. Some of them, it's taken quite a while to get approvals going. One key asset enhancement, which we are working very hard on, is actually the reconfiguration of the cinema at Festival Walk. I think we have mentioned before, the cinema trade in Hong Kong seems to be a lot weaker than here in Singapore. And we are concerned that there may be a shakeup in the industry and might result in some tenants weakening. Hence, we have been planning on what we can potentially do with the cinema space, and those are currently still ongoing. Once we are ready, we will make a room for you. Once we are ready to proceed with the asset enhancement, we will make the necessary announcement. For VivoCity, well, yes, we can move a little bit faster. The truth is that we have done most of the low-hanging fruits, right? If you recall, earlier asset enhancements that were done at VivoCity, you would have seen ROIs being a substantially higher number. The other thing that we are a little bit concerned about is that construction costs have been going up, aside from the AEI that we currently completed was already something like close to SGD 50 million in terms of costs. We are expecting that any AEIs that we will have to do in the future will be substantially more expensive. Those are decisions we will not take lightly. We are still evaluating what are the best things that we can potentially do to the mall. Bearing in mind that costs are going up, and that we have already done a lot, quite a lot of AEIs, right? Basically once every 2 years, and in some cases once every year, we have had AEIs at the mall over the last 10+ years. Looking at our gearing and acquisition potentials, I mean, if you talk to CFO, she will obviously want the gearing to go down even more. We have already done quite a little bit. We have done a bit on, quite a bit in terms of divestments. Singapore has also managed to cushion some of the reductions in valuation coming from the overseas assets on an operational basis. FX seems to be something that, FX is obviously something that we can not control. That's had a bigger impact on our valuation than we would have liked. Have we been looking at acquisitions? Maybe I can- Yeah, Sharon, go ahead. Maybe I help to chip in. Maybe I sum it up for you. In Hong Kong, short term, next year, the lease renewal for cinema is coming up. That's why we are actively looking at reconfiguring. Number one is to contain a smaller cinema. The rest we'll subdivide. Okay. That's the plan. Subdivide, majority will be F&B. The long run, which we have been taking a while, because of regulatory approvals, that is more for the basement. I think we shall not talk about that because a bit long drawn. Moving along to VivoCity. VivoCity this year, you will see we have revamped, continually revamped, now the drop-off, okay. The drop-off point is actually the back of VivoCity. Where we have reconfigured how the cars move and taxi and drop-off point. At some time, we are still exploring whether the back of VivoCity can become our another front. Nothing is firm, but I think that there should be good traction if we can get the right tenancies. Because we have always been using the back, the drop-off point like a back of a house. But technically, the car park flows actually pass through there, so it must be significant. It must be destinational trades that will be able to benefit from that location. We have not found that out, but I think it's a certain train of thought that we are trying to share with you. Okay. Moving along to what we -- our gearing is comfortable. Okay. It took us a lot of effort. I think we are very, very comfortable with our gearing. We'll continue to explore, as long as it makes sense to the portfolio. We'll be very careful in terms of certain countries. We will definitely avoid China for the time being. I think the weakness will still be continuing. Singapore looks like a good base. In terms of transactions, it's very limited. We will continue to explore. We'll be careful in terms of overseas market, in terms of acquisition. Yeah. Thanks. Thank you. May I invite Yew Kiang from CLSA to ask a question. Hi. Hi. Just two questions for me. I didn't quite get the MBC negative reversions. Can you explain on that? Secondly, when can we expect China and Festival Walk reversions to bottom? Seems like, with the AEI plans, at Festival Walk, this should drag on for a little longer. Is that correct? Okay. The MBC to me, I'll just chip in and after the details, the Wee Leong can handle. The MBC, I would say that it is close to flat. Like I always mentioned, changing over a tenant, We have our downtime is, will be way more than that. Three months out of 24 months, 36 months costs you more than [1 0]%. Okay. For MBC, they are big takers, and they are slow in taking up space. In a way, you hang on to your tenancy and we got good names. Okay. I'm not bothered when it's a -1%. Okay. I think it is a good number. If I change over tenant, I may get a slightly higher, but you don't see the downtime. You don't see the downtime in this calculation, and that will actually hurt your cash flow. Okay? China expect it to go down for this year too. Okay? I do not feel that it's actually strengthening. We are trying our very best in terms of hanging on to the tenants and trying different strategies, even fitting out certain areas because fit-out cost is not very expensive, basic furnishing costs, so that tenant can just take the back end and start operating. I would think that that is the only way we can just hang on in China. Okay? We are performing better. China, will we see the same magnitude of 31% for this year? Whoa. At least 10 over minimum. Okay. Okay. At least. Slightly improving. Okay. I really can't tell. Yeah. The numbers coming in China, as long as you got taker, you are happy. The vacancy rate is very, very high. Okay. I think I won't be too optimistic with you when it comes to our China assets. We just try to hang on to occupancy and control our own costs, and that's all we can ask for for China for the time being. Festival Walk with the AEI? Okay. Festival Walk AEI, if you're talking about its cinema, it's 2027. Okay. Oh, okay. Our work has to be starting run. Yes. Okay. Just one more last one. With the Japan portfolio occupancy slipping to 57%, right, I think is it fair to say divestments could take a while longer? If there are any plans to divest. Okay. If we can divest, we will divest. Okay. I think Japan, especially for Makuhari assets, is a tall order. We have done what we can as management. Number one, contain the cost. Number two, drop the bill as so that it's very negligible. The two buildings are two huge buildings. Adding up, we are talking about SGD 200-ish million. Okay. I think we need to put that into the magnitude in terms of the valuation that's carrying in our books. SGD 200 million is our problem assets, in SGD 200 plus, in Japan. That is Fujitsu and Seiko Building. Yeah. Okay. That's it from me. Thanks. Thank you, Yew Kiang. Geraldine from DBS Bank Yeah, hi, morning. Just wanted to ask on the Festival Walk divestment. Are you able to share the exit yield? Is it a low 2%? Has gearing already reflected the debt repayment from the divestment proceeds? The office yield was in the 3%, 3%-plus range, closer to 3.5%. You're asking whether the gearing has taken into account. Yes amount of debt, right? Yes. Yes. Yes. Yes, that's account. Okay. 36.5% after repaying the Hong Kong dollar loans using the proceeds from the divestment. Okay. Got it. Maybe one more on the just Festival Walk. Hong Kong tenant sales seems to be doing quite well this year. From what you are saying, are retail landlords a bit more asking in terms of rents, or should we still expect to see a lag time between sales and rents? Okay. I think the, you know, one small bright spot doesn't allow landlords to start moving rentals that significantly. The other things also that the sense is that a lot of this improvements last year was tourism driven, either by the events that have been ongoing in Hong Kong or the shift in travel patterns by PRCs from other countries through Hong Kong. That has concentrated the improvements. We feel that that's concentrated the improvement in tenant sales to the tourist, more tourist focused areas, Tsim Sha Tsui Central and Causeway Bay and the like. Those that landlords may be able to ask for higher rentals than they are currently. Bear in mind, the last three years, which is the typical duration of retail leases, Hong Kong has had a very rough time. That may not yield. Because of that, it's unlikely you'll see positive rental reversions coming through, whether it's our portfolio or others. Some people might be lucky, but we don't feel that's the case, right? Festival Walk still remains a mall that is very focused on the people who are living around and working around the Kowloon area, and it's not a tourist-focused mall. That improvement in the sentiment has not really translated down. What we have been more focused on is actually, right, improving the trade mix or rather optimizing the trade mix at the mall, getting rid of weaker tenants and bringing in concepts which will appeal to the people who are working around and living around the area. Okay. Okay, understood. Reversions will be in this ballpark for next year? Negative single to 10%. Yep. Yep. Okay. Okay, thank you. Thank you, Geraldine. Rachel from Macquarie, you may ask your questions now. Hello, good morning, Sharon and team. Can you hear me well? Yes. Yeah. Okay, great. Yep. Maybe my first question is on interest cost. What's your guidance for FY 2027? Could you give us a sense the PERPS rate versus the debt rate that you will be getting to refinance the PERPS? Interest rate guidance is, it will still be above 3%. You know, interest rate is very volatile, especially with the Middle East crisis. We, based on our estimate, it will still be above 3%, hopefully lower than what is currently we have here. It'll be a low 3. Okay, PERPS. Sorry. PERPS. Currently, the PERPS we issue at 3.5%, there's a CCS on it, so we are paying actually in fact, 2.5% on these PERPS. If I were to refinance this using borrowings that we have on hand, it will be thereabout the same as what we have been paying or slightly lower. It depends on how much I fix the drawdown at that point in time. It should be thereabout the same. Okay. Our cost has already hit the PERPS cost. Yeah. The 3.16%. Yeah. Okay. Got it. Can I just get an update on your Hong Kong rates? Is it still above the current Hong Kong rates? What do you mean above our Hong Kong rates? The current -- Hong Kong debt. Yeah, Hong Kong. Mm. Yes, we still have some high fixed interest rates swap, which hopefully majority of them will drop off in this coming financial year. Okay. Thank you. My next question is on just a follow-up on the Festival Walk AEI. If you were to take out the cinema space and get a higher rental, will you be able to then cover some of your negative reversions that's coming up from Festival Walk? Essentially, I'm trying to see whether your NPI will flatten out. We will not. We don't count, we separate the AEI and the rental reversion calculation. Okay? Will one shift the whole mall? I'd say no. Yeah. One AEI shift the whole mall NPI? No. Okay, lastly, now with your debt during or gearing that headroom, and HarbourFront redevelopment will be coming up in second half of the year. What are your thoughts on that? What are our thoughts in terms of. You are talking about investing? Yeah. Would that be any partnership with Yeah, with the sponsor, yeah. For the time being, no. Okay. What we are doing is just preparing for certain disruptions, which I think that has been well handled by the team. It's still a ROFR. When the time comes and they're ready, we will reassess the deal. Okay. All right, thank you. I'll jump back to Kate. Thanks. Rachel. Rachel, Janica here. I just want to correct myself. The 3.16% cost of debt is without accounting for the PERPS. Oh, okay. Okay. If you count the PERPS, it should be lower or? If I were to add on the PERPS, the 3.16% per annum will be lower. Okay. Got it. All right, thank you. Thank you, Rachel. Hi, Derek. Hi. Morning. Yeah. Yeah. Morning. Just sorry. Just follow up on the interest rate question, assuming current rates, what is the outlook for interest rates? Outlook for our- From 3.16% to what? It will be still above a three, a low three, hopefully maybe another 10 bits off. 10 bits off. You know, interest rate is very, very volatile. Maybe next quarter I can tell you another guidance. Okay. Now, for now it's about maybe about 10 bits off based on what, based on the current prevailing market rates. Okay. Can do. Just on the valuations for Festival Walk, I mean, local currency terms that was down close to 5%. Do you think the valuers were being pretty aggressive in bringing that down, given that it's fully occupied, I mean, outperforming the rest of the other overseas assets? I guess, does that clear the way for potential divestment of Festival Walk? Derek, if you look at net property income movement at Festival Walk, is that the 5% reduction in valuation is actually quite in line. It's actually fairly in line. We have also tried to see what the other valuation movements for retail assets in Hong Kong are. Not many of them are disclosed, but from the few that we can see, the majority of retail assets in Hong Kong have gone down 4-ish to as high as 9% over the last year. The 5% reduction for the retail asset is more or less in line with the performance as well as the market. Okay. Understood. Yeah. I mean, I'm just asking this. It, it's difficult to see the comparable transactions. I think Hongkong Land, they were talking like book value of 5%, but I'm not sure what's inside. Yeah, so I'll ask on it. Festival Walk. Yeah. Yeah. Thank you. Thank you. Thank you, Derek. Brandon. Hi, Brandon from Citi. Hey. Morning, morning. Just wanted to go ahead with Festival Walk, right? If you look at the tenancies for this quarter, it was up year-over-year. It's been close to like one or two years, right, since you've seen this improvement. Earlier you sound very skeptical, right? Is it correct to say that tenant sales hasn't exactly bottomed out for Festival Walk? I think one quarter doesn't make a trend. We are still continuing to closely monitor the performance of the mall and the performance of the tenants. There are some strong points and there are some strong areas. F&B is doing fairly well. You know, fashion, some of the tenants, tenant mixes, cosmetics and the like are still fairly weak in the mall. Those continue to drag down our performance a little bit. You know, this one quarter, we've had some interesting or other, not to say unexpected, but, you know, if you look at the, if you look at our jewelers, if you look at the gold fish shops in the mall, those have done extremely well and has definitely contributed to that improvement. Like I said, a few trades doing very well doesn't quite make the case that overall retail sales are improving within our particular market. We will continue to monitor. We'll continue to remix the tenancy such that we weed out a bit of the weaker tenants and bring in stuff that people want to spend at. Got it. Got it. Got it. Okay. Also just on back a bit similar to Derek's question, right? If you look at the latest valuations for Festival Walk, SGD 20.7 billion, right? That seems to be still like about 13% above the acquisition price, right? If you look at over the years, the reversions, it's still not great, right? Do you think at this point in time it's still looking a bit overvalued for Festival Walk? Based on notional price. Okay. Not on valuation, not on independent valuer's guidance. Yeah. Okay. If you look at the process, it's done by professional third-party valuers. Okay. That part, I don't think there's any form of interference or manipulation on our part. That's the market value determined by third party. If you talk about investment climate as per whether it's buoyant and whether this price is something that people will look at, I think overall, most of the investors are still very careful pertaining to Hong Kong. Okay. Your valuation is there, but investor appetite may be slightly a little bit more cautious than what we in a typical market. The two markets that I think investors very cautious is definitely Hong Kong and China is topping it. Yeah. I wouldn't say that our valuation is not correct. Our valuation is done by third party, but the investment climate is not as strong, in terms of the pool of investors looking and ready to put more money into Hong Kong and China. Got it. Okay. Hey, thank you so much. Thank you. Thank you very much, Brandon. Jonathan, you're up next. Yeah, good morning. Good morning, Sharon and management team. First question relates to MBC. You mentioned line one tenant secured during the quarter and then another big one also after the quarter. I presume both are new tenants. Could you give us some color in terms of the industry trade they are in, and then also the size of the lease that they have taken up? For the large tenant that came in after the quarter, if you include that, what would the level of occupancy at MBC be? Okay. The tenant after the quarter was a renewal. That was for more than 5 years. Rental reversion was actually just a little bit positive. That would have had no impact on the occupancy. Okay? The other tenant, which is a new tenant that took up about 3 floors and that's contributed to the improvement in MBC's committed occupancy, that's in the IT trade. Okay. Okay. Thank you. For the guy that renewed, could you give us like the industry sector? Also I have a follow-up on Japan. We're not able to talk on name, so. Okay. This hasn't contributed to our.. Okay. Okay. A follow-up question on Japan. I couldn't help but notice that the tenant retention is like 10%. Looks extremely low. Is that only unique to the quarter and then you see some, like, rebound after that? Could you comment on that and how that affects your outlook? The tenant retention in Japan, the low number is largely driven by Fujitsu. Master tenant at FJM, they are not extending the tenancy, so that whole building is going vacant because that tenant has moved out. It's a fairly substantial portion of our portfolio. If you look at our occupancy number, Japan now stands at 75%. With that, assuming, we take this FJM out of the equation, the occupancy will be then 57%. It's a fairly substantial impact on the portfolio and the retention rate is brought down largely because of this tenant. Excluding this sort of, high impact event, normally what would you expect tenant retention to be for Japan? It floats quarter to quarter. If you exclude this particular tenant, and we are probably looking, well, last, at last FY, we'll probably be around the 60+. No, actually, it's below. Maybe about 50% plus 60% mark. Okay. Thank you. Thank you for the detail. Yeah. I was sorry. Generally, we will expect the number to be a bit higher because in Japan, tenants tend to be a little bit stickier. Aside from the Makuhari assets, most of our other assets, tenants are a little bit stickier. But last year we did have one or two non-renewals in the other parts of the portfolio, which we've actually been managed to backfill the space, but that will actually contribute to the slightly lower retention than than we had normally expected. Yeah. Thank you very much for the detailed response. Thank you. Thank you, Jonathan. Terence Lee. Hello, Terence. Please state your surname. Yes, good morning. Terence Lee from UBS. Just a question on the one-off tax charge, the SGD 8.3 million. Let's say if you sell, manage to sell Festival Walk, the retail portion, should we expect another such one-off tax charge that would be flushed into the DPU? Unfortunately, yes. Is there a sensing for us to understand what kind of percentage or, you know, applicable tax rate that would be? Okay. I do not have that on hand now. I can get back to you. Basically, whatever that we charge off now is slightly a portion for the office part. Yeah. The allowance was claimed as Festival as a whole. We based on some formula to apportion the office part. Yeah. Of course, it's also subject to the tax office agreement on the way we apportion. Yeah. Oh, okay. I can get back to you on the amount, but I do not have that on hand, my apologies. Could we not just take the SGD 8.3 million divided by the divestment price for the office portion. No, no. -as a proxy? No, no. Okay. No, cannot. Yeah. Okay. I guess a separate question, can you remind us of the FX income hedge policy and at this juncture, like how far are forward rates for the coming year looking like, relative to spot? I guess particularly for Hong Kong dollar and JPY. I think Hong Kong dollar and JPY outlook is appreciating. I don't know how they are going to appreciate. Hong Kong dollar is depreciating. So far, whatever swap that we have on the books, I think both of them are not the swap, sorry, forward hedge. Both of them are majority out of money. Okay. Is it fair to surmise that there should still be continued FX related income with us into FY 2027? Based on the cash on hand, maybe there will be. You Yeah, that should be. Okay. You know, interest rate is very volatile. The reason why we do income hedge is actually to just protect and lock in the rates to ensure income stability. We are not actually speculating the market. That is, that it is a risk management. Whatever that the board's guidance, set on the threshold, we will just make sure that we monitor and we make sure that we lock in, to mitigate risk. It's not too much of speculating and trying to earn from the market. All our hedges is more risk management. Whether the currency will depreciate or appreciate further, we will still make sure that we hedge, the necessary threshold, the risk threshold as set by the board, to give us stability on the income. Uh- Of course, when we hedge, we look at the market and make sure that we don't go in at a rough time or a point in time where the market is really very rough. Yeah. I guess, all in, if I may surmise, the outlook for FY 2027 DPU. In terms of downside pressures, it's probably from the negative reversions from some of the overseas assets and a bit of pressure from potentially weaker FX rates. I guess on the upside forces, that appears to be lower rates for the portfolio, lower interest rates for the portfolio. I think we do not provide a forecast, but if you know, we have already announced, which is slow, and that's already a SGD 10 million to the books. Yeah. I'm not sure how. On the other hand, you can get a comfort that the income from Japan will be lower, although it's depreciating. I don't know whether that's a comfort or not. Okay. Got it. Thank you. Sorry. Just now, Jonathan asked about the retention rate, not including Fujitsu. It's not 55%. It's actually about mid-30s. That's due to non-renewals at MBP as well, where some of the remaining leases from the master tenancy, which expired 3 years ago, those leases have actually expired as well. Yeah. Got it. Got it. Thank you very much. Thank you. Yep. Thank you. We do have a question coming online, from online. It's relating to the impact of online sales on revenue, given that online players have been given heavy subsidies. If you look at online retail in Hong Kong, it's actually a very marked difference from within China. If you look at online sales penetration rate in Hong Kong, we are looking at probably in the 10% range. Whereas if you look at the same statistics in China, that's probably in the 40% range. If you look at Singapore, it's actually been stabilized at about just under 20% fluctuating on a quarter-to-quarter, month-by-month basis. It looks like online retail in China, sorry, in Hong Kong has been fairly stable. It, there is some inclination that the online retailers are being a bit more trendy, a bit more aggressive in Hong Kong. It might be, part of the reason is the proclivity of Hong Kong residents to not use online payments that much, also preference to shop physically. The truth is that the bigger chunk of the impact of retail sales in Hong Kong has been the leakage to Shenzhen. The ability for Hong Kongers to go across the border to shop has probably had a much bigger impact on retailers' performance in Hong Kong than the online impact. Thank you, Koh Wee Leong. Just want to double-check again. Harry, do you still have another question? Yes. just a follow-up to the earlier question. Janica, just on the part on the one-off tax issue, right? What is the rationale that this is slashed into the quarter's DPU as opposed to it being netted off against as a sort of net divestment proceeds? This is something that, we ask the same question to our tax consultant, okay? This is considered a operation issue because the allowance was being claimed and offset against the operation income. Now there is a fallback which should be against operation income. Actually, when we divest Mapletree Anson, there is also a similar kind of balancing allowance and charge. At that point in time it was allowance. An allowance will reduce our DPU because it's an allowance and we pay off the unitholder via capital distribution. Yeah, I guess that would have been my next question. Like, why not replace the, you know, like, make unitholders whole in terms of the cap distributions? You see it's different from Anson. Anson is reducing, but I'm not paying any money to the tax office. This is different. I'm paying a bit over SGD 1 million to the tax office, Hong Kong tax office. If I were to distribute, I am coming out another SGD 8 million to pay to the unitholder. By having said that, if this is considered a transaction cost, it would definitely net off or charged to a divestment gain or loss. When we claim the allowance, it's net off against the operational income. Now when there's a callback, it should be against operational income. Just to clarify, was there even a choice to distribute capital distributions to make unitholders whole? Capital distribution we can distribute, okay. Of course, taxable distribution, tax-exempt distribution, you must have the relevant income. Okay. Capital distribution we can if we want. Yes. It's just like if there's any gain or the proceeds from the divestment, if we were to distribute, we will distribute via capital distribution. Got it. Yes, we do have the choice to distribute. Because we are paying the tax office, we have only SGD 1.3 million. If I'm paying tax office and I'm paying unitholder, then we are effectively borrowing to pay. Okay. Got it. Thank you. Thank you. We do have one more follow-up from Brandon, from Citigroup. Brandon. Hey, just a couple of household matters, right? Can you share with us the occupancy costs for both FW and MBC? For both malls, occupancy cost ±20%. Okay, great. Okay, thank you. Terence from JP Morgan. Hi, Terence. Hey, thanks. Yeah, I just wanted to ask a little bit more on MBC. You are seeing occupancies improve on a Q-on-Q basis. Maybe could we get a sense of, you know, how soon could we see occupancies move back above, let's say a 95% handle? On a broader scale, has the war impacted demand for space in Singapore in terms of leasing, both on the office side and also on retail? Thanks. Obviously MBC is already above 95%. We expect throughout the year, occupancies will remain around the mid-nineties range, plus minus a little bit. In terms of leasings, leasing impact, what the war has introduced is actually uncertainty. What that causes tenants to do is actually to delay decisions, right? As it is before the conflict started, all of the tariff issues, as well as the uncertainty between U.S. and China, has already caused tenants to be cautious about taking up more space or to spend money on taking out spaces. That has continued. If anything, it's delayed decision-making a little bit more, right? In the past you were probably looking at tenants taking up space 6 months, 9 months, 1 year before they moved in from the point of signing a lease. Now, that's probably gone up by another 1-2 months, at 1-2 months. In some cases what tenants have been doing is to delay decisions, right? They know they have to make a decision within, they have to make a decision within the next 6 months. They don't have to do it now. They'll just wait another 3-6 months. That's really been the key. The other thing is that the impact of the war will affect construction costs, that will mean that the fit-out costs will likely go up. That will then make tenants a little bit more reluctant to move from space to space. To mitigate that, what we have tried to do is, as far as possible, if we do have departing tenants, and we do have a few, we have tried to retain fit-outs such that we can then, use those fit-outs for new tenants. That has really helped to push some of the occupancy across all the floors. In general, what the result of that is also that tenants are more reluctant to move. It actually helped to maintain our occupancy and improve the retention rate at MBC. Okay, thank you. Thank you very much, everybody. May I just do a quick check if there's any more outstanding questions from our participating analysts? If not, I would like to thank everybody again for your precious time and all your questions for today's results briefing. Should you have any other questions, please reach out to the investor relations team. Thank you again, and we wish you a great week ahead. Goodbye. Thank you.