Q4 25/26

Apr 30, 2026

Summary

Gross revenue and NPI declined year-over-year due to divestments and FX, but adjusted DPU from operations rose. Portfolio occupancy improved to 96.9% with positive rental reversions, and new acquisitions and AEIs are expected to offset higher interest costs. China remains a risk, but other markets show resilience.

Hi, good afternoon. Welcome to the fourth quarter results briefing for the financial year ended March 2026. This is Mapletree Logistics Trust. I will hand over the session to Charmaine Lum. This meeting is being recorded. Sorry about that. To kick off the presentation. Charmaine, please. Hi. Thank you for taking the time to attend our briefing. I'll take you guys through the four key results as well as the key highlights before passing on to the rest of the team to take you through the rest of the slides. So for 4Q FY 25/26, for this quarter, our gross revenue and NPI are lower by 1.7% and 0.9% year-on-year, mainly because of absence of contribution from our divested assets as well as FX. In terms of DPU, we are declaring SGD 0.01819. This is 7% lower year-on-year. If we are to strip out the divestment gains from the DPU from last year, DPU from operations at SGD 0.01819 is actually 0.9% higher year-on-year and 0.2% higher quarter-on-quarter. In terms of portfolio occupancy, we are slightly higher at 96.9% versus 96.4% last quarter. Portfolio rental reversion is a positive 3.3%. If you are to exclude China, that's a positive 4.2%. WALE stable at 2.5 years. In terms of factor management, aggregate leverage is slightly lower, 40.6%. We managed to keep our interest costs stable at 2.6%. About 83% of our total debt has been hedged into fixed rates, and 75% of our income for the next 12 months have been hedged into Sing Dollars. If we move on to 4Q FY 25/26 versus 4Q last year's result, revenue is 1.7% lower. This is mainly due to the absence of contribution from divested assets. We continue to face currency weakness in certain currencies, although this is partly offset by appreciation of Malaysian ringgit as well as Aussie dollars. The currency impact is also partly mitigated through hedging. The lower gross revenue is actually mitigated by contribution from our completed redevelopment of Mapletree Joo Koon Logistics Hub at our AEI and higher contribution from Singapore, Japan, and Vietnam, offset by lower contribution from China. We remain conscious of our cost containment and for property expenses, we are slightly lower, 6.3% lower. Although this is offset by contribution from Mapletree Joo Koon Logistics Hub. If you are to exclude the impact of divestments and FX, gross revenue and NPI would have increased by SGD 3.6 million and SGD 4.1 million. In terms of borrowing costs, slightly lower, 3% lower, mainly due to lower base rates on our SORA rates, interest savings from repayment of loans with divestment proceeds, partly offset by interest incurred on loans drawn from four of our AEIs that is recognized in the P&L post Practical Completion, as well as replacement of hedges at higher cost and higher rates for JPY loans. All in, DI to unitholders is 6.1% lower, and our available DPU is 7% lower, 1.819 cents versus 1.955 cents. If we are to strip out the DG as mentioned earlier, it is 1.819 cents versus 1.803 cents. That is 0.9% higher. 12 months this year versus 12 months last year, revenue and NPI both lower, mainly for the same reasons as 4Q. Absence of contribution from divested properties. Regional currency weakness, which is mitigated with hedging as well as mitigated by full clear contribution from acquisitions in the last financial year, as well as contribution from our AEI. Higher contribution from Singapore, Japan, Vietnam, Malaysia and Hong Kong offset by lower contribution from China and South Korea. Excluding the impact of divestments and FX, gross revenue and NPI would have increased by SGD 6.1 million and SGD 5.4 million. Similarly, gross revenue, borrowing cost is lower, mainly due to lower base rate on unhedged Sing Dollar as well as Hong Kong dollar loans. Interest savings from repayment of loans with divestment proceeds partly offset by interest incurred on loans drawn for the AEI and capital expenditure, as well as replacement hedges at higher cost and higher base rates for JPY loans. Accordingly, our DI to unitholders is 8.9% lower. If we are to strip out the DG component, adjusted DI to unitholders was actually 2.5% lower and adjusted DPU from operations is actually 3.4% lower. 7.262 for the full year versus 7.519 cents last year. Moving on to quarter on quarter results. Gross revenue is slightly lower, mainly due to currency weaknesses as well as absence of contribution from divested properties, mitigated by higher contribution from our AEI at Joo Koon. Property expenses increased slightly due to higher repair and maintenance expenses. All in NPI is slightly lower by 0.4%. Borrowing cost, slightly lower by 1.7%, mainly due to 4Q being a shorter quarter than 3Q. Amount distributable to unitholders, higher by 0.3%, resulting in a higher DPU of 0.2%, which is 1.819 cents versus 1.816 cents. Moving on to the balance sheet. You will see our investment property is higher than last quarter, mainly due to two key reasons. One would be the completion of our India acquisition of about SGD 66 million. That completed on the 27th of March. We also have some reval gains, which resulted in the higher investment properties amount. I think Wan Kwong Weng will take you through the valuation assumptions later. Total debt is higher due to additional debt taken to fund the India acquisition. Finally, offset by lower net translated loans due to weaker JPY, Hong Kong dollar, and US dollar against the Sing dollar. Resultantly, NAV is stable at SGD 1.22, same as last quarter. Leverage for 3.6% and managed to keep our interest cost at 2.6% for this quarter. Moving on to our debt maturity profile. Our debt maturity profile remains well staggered, with a healthy average at duration of 3.6 years. We have about 2% of our debt that is due for refinancing in the new financial year. We have sufficient committed credit facility of SGD 700 million on-hand to refinance that due in the new financial year. In terms of the interest rate and FX management, we remain disciplined with our hedging policies. About 83% of our total debt is hedged or drawn in fixed rate. Of that fixed rate component, about SGD 700 million are due for refinancing in the new financial year, so we expect to replace this at higher cost. Together with the macro uncertainty and risk of higher rates, we expect our interest cost in the new financial year to be at about 2.7%-2.8%. In terms of FX, we will continue to hedge our FX. As of this quarter, we have about 75% of our income for the next 12 months that has been hedged into Sing dollars or are derived in Sing dollars. I will pass the thing over to James for portfolio update. Thanks, Charmaine. I will now go through the portfolio update. In terms of the portfolio, it remains stable in 4Q. Developed markets continue to account for 70% of our portfolio by AUM and revenue. There is only a slight increase for India contribution in 4Q from the latest acquisition in Mumbai. We have a diversified tenant base of close to 1,000 customers who are handling mainly consumer-related goods. Majority of the tenants, about 85% of our revenue, are serving domestic consumption. Only about 15% of revenue are serving the export, import market. Pleased to announce that in 4Q, we had a set of strong operational results. We have an occupancy increase of 0.5 percentage points to 96.9% in 4Q. Can you speak closer to the mic, please? Can you just speak closer to the mic? Thank you. Five of our MLT countries registered positive occupancy increases, while the other four maintained the full occupancy in 4Q. For rent reversions, we posted 3.3% positive rental reversion as compared to 1.1% in 3Q. Excluding China, it was 4.2%. The lease expiry for FY26 went up to 36% by NLA. In 3Q, it was 32.8%. This was contributed mainly from the leases from China that we renewed and replaced in 4Q, which had a WALE of less than one year. Overall rent, is at 2.5 years by NLA. As of March 31, our top 10 tenants remain stable, contributing 19.7% of our overall gross revenue. Now I will ask Wan Kwong Weng to Yeah. Position. Thanks, James. First talk about the accretive acquisition. Last month we announced the successful completion of acquisition of a freehold Grade A warehouse in Bhiwandi, Mumbai. The purchase price is about SGD 15 million. It is 100% occupied by two of the Indian leading listed online e-commerce companies. There's a long lease of 3.9 years. And it's newly completed in August 2025 with modern Grade A specs. Moving on, the next slide. As you all know, we have been actively doing recycling and selective divestments. So for the full year, last year in FY 25/26, we have actually managed to divest six assets at an average premium to valuation of 20%. Next slide. The portfolio valuation, as you can see from the charts here, our latest valuation is for SGD 13 billion. It's about 1.6% lower than last year of SGD 13.3 billion. And this is due to a few reasons. First, like I mentioned earlier, we have divested fixed properties last year. And then, of course, due to the strengthening of SGD, there's a currency loss of about SGD 300 million. And this is offset by a few positives. And the first is we have a positive net value gain of about SGD 47.8 million. And then we have also completed our Paya Lebar Quarter project, and of course, the acquisition of the new asset I mentioned earlier in Bhiwandi, Mumbai, India. So a bit of color on this fair value gain of SGD 47.8 million. Most of the countries actually we have seen a fair value gain except for Thailand and Hong Kong, where the market is still in transition and recovery phase. Next slide. The last slide is what we usually presented. Okay. Now I just quickly take you through a couple of slides on the sustainability front, what are progress that we have made. Pleased to say that we have hit all the major KPI for the year. Also, the self-funded capacity was up 24% to 58.9 MWp, against our target of 55. And as for the total solar, because of a rather strong ramp-up in China, it increased 85% year-on-year to now 131.8 MWp. And with that, we are pleased to say that we have now three countries that have neutralized Scope 2 carbon emissions, they being Malaysia, China, as well as Hong Kong. Then for green buildings, similarly, our target was to achieve 60% green certified space by GFA and we hit 66%. And for green lease, likewise, we have made good progress increasing from 51% to now 64%. As for green financing, we achieved or rather we secured SGD 300 million of new green financing during the year, and that contributed to about 28% of our total borrowings. That's a quick sum-up. I now hand over to Jean to wrap up. Okay. Good evening all. I think amid all the tariff headwinds and the global uncertainty, MLT, as you have seen from the presentation done by Charmaine and James, we have posted very resilient operational results. You have seen high occupancy, and then you have also seen us achieving occupancy rate that is above the industry average. For example, like China, this quarter we are about 94.2%, and then industry average is still primarily around the 80s region. And also reversion higher this quarter with China assets posting a negative low single digit, but that has slightly moderated from last quarter. I think importantly, DPU for operations have shown stability for consecutive four quarters. Next is actually on the Middle East conflicts, which is resulting in higher oil prices. We're not seeing any significant impact in terms of the MLT operating cost as the net electricity cost is currently negligible, less than about 2% of our property expenses. In terms of leasing demand, it has remained stable so far. We have not seen any meaningful evidence of pullback in demand or any delay in decision-making for now. But having said that, I think tenants with the higher cost pressures, they are likely to face some weaker operating margins. From what we have gathered so far based on our interactions, I think tenants are currently focusing on optimizing the energy usage, enhancing the operational efficiency, and passing down the cost to their customers where possible. But having said so, I think with the Middle East crisis evolving, we remain closely monitoring for any second-order effects that could actually influence the business and consumer sentiments as well as the leasing demand. I think a lot of you are probably waiting for the outlook on the China. I think in terms of China, what we are seeing now, it appears that there are signs of stabilizing, bottoming out, and we expect that the negative rent reversion to continue to narrow. But I think really it will take some time to turn to zero. If you look at some of the recent news, I think incrementally it's more positive and hopefully it will spur the domestic consumption. You look at the China retail prices, it has reported some of this growth after 10 months of decline. The PPI turned positive last month, reversing three years of decline. I think in terms of the current oil shock, China seems to have weathered it pretty well. I think largely due in part to their diversification of their energy mix as well as they have also increased their focus on green energy. In terms of the market supply and demand by region, it remains that the west and central China seems to have bottomed. In fact, I think for some of the lower tier cities like Guiyang, Kunming, we are seeing stabilization. In fact, some higher rents being signed. In terms of the south, there's going to be a rising supply, but we have limited exposure, only two assets, and they are still having high occupancy. In terms of region, north and east China, greater Shanghai, it is still a concern due to the high vacancy. But I think in terms of the expiry profile in the coming year, we have very little coming up from the north. Though we have more coming up from the east, but we think that in terms of the absorption, we expect the east region to recover faster due to the higher consumption power. So I think that's the outlook on China. For Hong Kong, in terms of the leasing sentiment, it remains cautious, but if you look at the retail sales, it seems to have bottomed up and residential housing also seems to be on a recovery mode. But in terms of the supply, we have seen that the market vacancy is increasing. So we already started engaging our tenants for the upcoming expiries. The prelim discussion is most likely they will renew, but I think the rentals would probably be, in terms of outlook, would be probably very modest kind of reversion outlook. So I think that sums up some of the key market outlook that I have. Maybe I think I'll leave it for Q&A. Okay. We now start the floor for Q&A. Can we have Mervin? Hi, Jean and team. Thanks for the call and congrats on the results. I noticed the adjusted operating DPU first year-on-year increase in over three years, and as you mentioned, four consecutive quarter of Q on Q improvements, so very excited by that. Just on China, I think you seem to be pushing out the time period when the reversions head towards zero. I think previously you guided fourth quarter or first quarter 2027. Do you have a time when that zero number will appear? Second question I have is, any updates in terms of divesting some of your China properties to your sponsor's RMB fund? Has the sponsor raised money for that RMB fund and timing of these divestments if possible? Thanks. Okay. I think on when it will turn neutral, I think we're probably looking at another three to four quarters in terms of turning neutral for the reversions in China. Your next question on the China divestment. So far based on the 1B that we have identified, we've done about SGD 217 million to date. In the current financial year it's 100 out of 270 and in the pipeline that we are looking at, we are targeting about 200 to 300, and that includes the RMB fund that we are currently working on. There has been some delay and right now we are looking at the second half of the new financial year to actually sign some binding documents, primarily because there has been some change in the LP partner and the new replacement LP partner is undergoing due diligence at the moment. I think hopefully by second quarter, we can look at the China divestment coming on stream. Okay. Sounds good. Let others ask questions. Okay, Derek. Hi. Good evening. Can you hear me? Yes, Derek. Hey. Hi, Jean and team. Congrats once again. I think a stable set of results. I am looking forward to that. My first question is on your reversions. I noticed that Hong Kong is also tapering off. I think you are guiding that it will likely flatten out. But just wondering, whether if you look forward to the next financial year, will Hong Kong turn negative or is any other country that you think we should be a bit more cautious about at this moment? That is my first question. Okay. Yeah, Derek. I think in terms of reversions, for now the negative reversions will be pertaining just to China. For Hong Kong, we are not seeing negative reversions at this point in time or in the new financial year. It is most likely a very modest kind of reversion. Like maybe 0.5% kind of region that we are looking at, that we are aiming at currently. I see. Okay. The rest of the market. Yeah. Mm-hmm. Sorry, go ahead. Sorry. Yeah. The rest of the market remains good. Okay. Got it. My next question is on your asset recycling. You mentioned you want to sell SGD 200 million to SGD 300 million. How about acquisitions? Could you give us a sense of your acquisition strategy for the next financial year? Okay. I think for acquisitions, right now, our target markets are still the countries that are beneficiaries of the supply chain diversification. We are looking at Vietnam, Malaysia, India. That is still the strategy that we are looking at to actually increase our presence in this structurally growing market. At the same time, I think in terms of Singapore, we are also looking at some opportunities in Singapore. But it still remains pretty opportunistic. For Singapore, if you recall, we have so far been focusing more on the organic growth in terms of Asset Enhancement Initiatives. We have just completed our Joo Koon last year, and right now we are planning for our fifth one in Singapore, and that is going to come up in the east of Singapore. It is something that we are looking at organically to grow the Singapore portfolio. For Korea and Australia, I think in terms of the yield spread, it is very tight. Particularly for Australia, I think it is very difficult for us to do any accretive acquisitions. We are looking at RBA, looking at a high inflation, we are planning for a rate hike. Korea is something that we are still exploring, but it depends on how strong is the acquisition. For Japan, though the interest rate outlook is on the rising trend, but if there are opportunities that shows organic growth or more better rent reversion or built-in escalation organic profile, I think we are open to pursue as well. Okay. Got it. Sorry. Thank you very much. Sorry, just last one. Interest cost. I think Charmaine has done a great job. 2.6% it's been flat. How much more can she hold it at this level? Or should we be pricing in some increase? Yes, you should be pricing some increase. Thank you for emphasizing that I've been able to keep it at 2.6%. I guided earlier that we have about I think that on the interest cost front, we are facing higher interest costs in a lot of the currencies. We have about 700 million of hedges that will be falling off, so these will have to be replaced. So included in this 700 JPYs that are locked in at 0.3% base rate or 1.7% AUD base rate. All these would have to be replaced. We'll see how we manage the portfolio. We will tweak the currencies around a little and target to keep it at about between 2.7% to 2.8%. Yes, we are forecasting it to grow in the new financial year. Okay. Got it. That's all from me. All right. Thank you. Thank you. Next we have Rachel. Please go ahead. Hi. Good evening. Can you hear me well? Yes, we can hear you clearly. Okay. Yes. Great. Thank you. Thanks for the presentation and congrats. Good to see the growth in DPU. A few questions from me. Firstly, your reversions, especially for Singapore, has been quite strong. So any guidance on your reversions for the coming year? I will let James answer. Yeah. Rachel, yes. Last quarter, we registered quite a high and good reversion because of our tech supply for big new warehouses, and we had a few expiries which was renewed in our ramp-up warehouses in 76 Pioneer Road, Jurong Logistics Hub and Benoi. So that helped us to push up the reversions. So in the next few quarters, depending on the lease expiries in the various quarters and whether they are older properties or ramp-up properties, we are still very confident to maintain between, say, 3%-5% range, positive reversion. Okay. Sounds good. All right. Then maybe my next question is on the Mapletree Jurong Logistics Hub. Yeah. Very good that you are fully leased out. But how much of the income has been recognized in the fourth quarter, and how should we look at in terms of rental income coming through in FY27? When will we see the full income coming through? We will see the full contribution coming in the second half of the new financial year. Okay. Fourth quarter was very minimal, is it? Fourth quarter, we are looking at about SGD 3 million. SGD 3 million? Yes, SGD 3 million. Mm-hmm. Or SGD 2.7 million or SGD 3 million, round up. Mm, okay. Then maybe just to follow up, if you're expecting some increase in interest expense, do you think that the rental income from this Mapletree Joo Koon can offset the increase in interest expense? Yes. In terms of the interest expense that Charmaine has mentioned, SGD 2.7 million to SGD 2.8 million, yes, we should be able to absorb that. Yes. If you're looking at the additional income, the full year contribution from Joo Koon itself would be sufficient to offset the higher interest cost. Mm, sounds very good. Okay. All right. That's all from me. Thank you. Okay, next we have Tan Chien. Please go ahead. Hi. First question is on the lease expiry of 36%. How much is China? The earlier rent reversion guidance, 3%-5%, has that already taken into consideration China at zero to slight negative? Tan Chien, for 36% of lease expiries falling next year, China is contributing for about 35% of that. Right. On the rent reversion, it is a portfolio basis, right? Including China. The 3.3% includes China. Sorry, I mean the reversion guidance of 3%-5% for next year. That is for Singapore. That is for Singapore. Oh, Singapore. That is for Singapore. Right. Okay. The guidance for this China, it is actually still in the low negative single digits territory for China. Okay. Do you have a portfolio reversion guidance? No, we typically don't do that because, as you can see, it's nine markets. Okay. Then on the divestment, how are you thinking about the deployment of proceeds? Is it to acquisition, debt repayment, and also on Perps, any plans to pare it down? It's expiry in November this year, right? Yeah. I think if you look at what we have done last financial year, our recycled proceeds have been channeled to the AEI. They are also 5H Joo Koon AEI as well as rechanneling to acquisition. I think looking ahead, while we are waiting out for any acquisitions, meanwhile, definitely the recycled proceeds at first would go down to pare down the debt from recycled proceeds. That would be the first thing that we would do, and thereafter, we will see in terms of the opportunities that we have to rechannel our funds. So what we have done last year is to the existing asset as well as to the AEI. So we would look at the similar approach. For the Perps, maybe Charmaine. I think divestment proceeds, other than that, it also depends on the timing of the divestment proceeds. Yes, we have a batch of Perps that is coming due for refinancing. With the divestment proceeds, depending on our leverage at that point in time, we could look at refinancing with Perps or a mix of Perps or and debt. Okay. Got it. Thank you. Okay, next we have Brandon. Please go ahead. Good evening. Just want to touch a bit on the lease expiry profile again. Please sort of share with us the split by region for this 20% of expiries in China for FY 2027. Okay. Jean? I think for FY, in the new FY, in terms of the expiry by region, the majority is coming out from the East, followed by Central, and then North. East, we are looking at about 45% out of the 20% due. Central, we are looking at about 28%. North, about 16%. Then for West and South, 4% and 7%. That the breakdown in terms of the lease expiry profile for the new financial year in China. And what's the rough retention rate that you're looking at? Right now, if we look at, so far historically, we have about 90% success rate. If you look at for lease expiry for the past two, three years, our expiry had been hitting about 30%, and we managed to retain them. That's why in terms of occupancy, you have seen that it's still maintaining very high. So in that sense, we have been able to achieve a high success rate. That's why our occupancies remain pretty resilient. Got it. Okay. I also want to go back to your comment on the acquisitions in those supply chain diversification countries like Malaysia, Vietnam, and India, right? Is it correct to say that this will be mostly coming from your sponsored pipeline? And a follow-up question is, if you look at the way the currencies in these places are growing, especially for India, even though you get a pretty strong reversion, but they're all eaten up by the depreciation in the FX. Why do you still want to look at these markets? That's my first part, yeah. Okay, I think in terms of these three markets, is it because of sponsor? I think it's also because where if you look at the supply of Grade A assets in these three markets, it is generally a little bit more limited in terms of the sponsor aspect. Opportunistically, there may be some coming out from third party, but it has been pretty on a smaller scale. Also in terms of access to sponsored pipeline coming out from these three, we have the access to check on. To your question on this FX, I think, in terms of where possible, we will adopt the natural hedging by taking on the onshore loan. Just to give an example, in the recent India acquisition, what we have done is, we have increased the natural hedge by taking on a 40% loan onshore. That helps to mitigate in terms of some of the FX movement. Where possible, I think from the income hedge perspective, where the hedging cost makes sense, I think we will try to also lock in some to actually mitigate the FX risk. I think, if we look at more on the deal attributes, I think in this case, in terms of the markets where we are looking at structural growth, these are the three markets that are showing potential, giving higher growth, having a higher GDP, compared to the rest of the Asia. Particularly, if we look at this India acquisition, we are looking at some inherent attributes that cannot be replaced. We are looking at an asset that is in a very good location, prime logistic corridor, and it's a free asset. Admittedly, in terms of FX, if we look at the last 12 months, indeed, Indian Rupee has been very volatile. I think due to the global headwinds. But if we take a more medium to longer term outlook, stripping out the 12 months impact, taking a 5 to 10 year kind of depreciation trend outlook, we are looking at about 3.5%, more on the medium to longer term horizon. If you look at the rental growth that is in this market, again, I pick the example, the recent one that we did in Mumbai, we are looking at about 5% rental growth. I think in terms of underlying rentals compared to where some of the newer tenants are signing, there's actually a 10% kind of reversion opportunity. Currently, it's about 10% below the market rent because one of the tenant there recently expanded into a nearby warehouse where they are signing rents that's 10% above what they have locked in this asset. I think that there are some trade-offs, indeed. But I think if you look at more on the medium to longer term horizon, that presents some growth opportunities in that sense. All right. Okay. Yeah. Yes. Okay. Hey, thanks so much. I will go on to the next one. Thank you. Okay. All right. Okay. Next, we have Derek Tan. Hmm? Sorry. Oh, Joy. Joy? Hey, can you hear me? Yeah. Thanks. Just two quick questions. First, can you share in terms of the hedged FX rate for this FY and also what can we expect for the hedged FX for next FY? Sorry, do you mean what they hedge at or what the hedge ratio is? Yeah. Can you share what are the rate that you are hedged at for your key currency for FY 2025/2026, and what can we expect for 2026/2027? 2025/2026. Okay. 2025, please. The next 12 months. Should be for next 12 months, right? 2025/2026 is over. You refer- Yeah for the next 12 months. For the next 12 months. If you can share what was for the last 12 months, that will also be very helpful for us. Okay. We will come back to you. Let us take a look at what we have. At the data we have. Okay. Do you have any other? Okay question? Yeah. The second question, can you confirm earlier you mentioned about the China fund. Did you mention that there is a change of LP? Yes. Can you give the background of the LP that decided to drop out and the LP that are currently doing duty? I think it is a pretty sensitive info. I think what we are able to share at this point in time is that we have found a replacement LP, and they are right now in duty. We are progressing, hopefully towards signing some binding in the second quarter of the new financial year. Okay, cool. That is helpful. That is all from me. Okay. Next, we have question from Dale. Yeah, thanks. Thank you, Renee. Hi, Jean and team. Congrats on the result. Just wanted to check, you guys have so many things going on, and then potentially higher interest rates. Just wondering in terms of FY 2026, 2027, where should we be looking, your DPU. Should we be expecting some form of growth or should it be flat base? Okay, Dale. Okay. Golden question. Okay. Not sure you can share. Oh, sure. I think looking at what we have achieved in the past four quarters, the base case outlook that we are looking at is also around SGD 0.018 per quarter. This is barring any major economic downturn as well as significant movements in terms of the FX as well as the interest rate. We mentioned earlier in terms of there will be organic growth from countries like Singapore and then the three smaller markets, Vietnam, India, Malaysia. The Joo Koon AEI will also be contributing in the second half, and with that should help to offset the higher interest cost that Charmaine has guided earlier, the 2%-2.8%. So net-net, we are looking at a pretty flat DPU. Okay. Fair enough. Yeah. Okay. My second question is, I think earlier you did share that with all this rising oil prices, rising utility, you guys are quite insulated. Yeah. But not sure if the second order impact, because in logistics, I am assuming freighting costs would be a major thing for your tenants, right? So are you seeing any specific group of tenants or any specific regions that are at risk of higher costs or being out of business? Okay. I think from the 3PL tenants, what they are trying to do, the larger ones, they are trying to pass on in terms of the higher air and shipping costs via imposing some fuel surcharge. Also some of the larger tenants, they are able to pass on some of the cost to their end customers based on their contractual agreements. But I think what will probably have a bit of struggle is probably the smaller ones. They may face the margin squeeze from their operating costs. So that is on the 3PL. I think we do have a very small number where they are importer and exporter of food products. They are also trying to pass on to their end customers. So I think right now, where possible, they are trying to pass down. But I think the other smaller group which we are probably also monitoring closely is those maybe our cold storage tenants. Although we do not have a lot, but because they are typically high consumption users, so that is something that we will remain watchful. Yeah. Okay. Probably now it is still a bit too early, right, to tell? Yes. Yeah. Okay, got it. We are still discussing. Yeah. Okay, got it. That is all from me. Thank you. Thank you. Okay, next we have Vijay. Yes, go ahead. Yeah, hi. Good evening. Two questions from me. Firstly, in terms of India acquisition, would you be able to provide the NPI yield for that? What is that? NPI yield. NPI yield is 7%. Okay. Because I mentioned it is about 10% below market. If we look at the current market, it is probably 7.7% range. Sorry, you bought the asset at 10%? Okay. Based on the market rents, it should be 7.7. Yes. Because right now the renter that is locked in, it is 10% below market in terms of the rent. Second question is, in terms of some of your shorter lease assets in Singapore, the 5% of your portfolio which is below 20 years, have you been able to increase the authorities in any of these? What should we expect for some of these lease which the land lease are coming closer to below 20 years and closer to 10-year marks? Okay. I think for those with short land lease, where possible, for assets with redevelopment potential, we have been trying to engage the authorities for some potential lease extension. Some of the assets that are under the 10-year mark, we are still talking with the authorities. What we are working on is potentially, we need to secure or find a good end tenant in terms of their business plan and financial projections to discuss with the authorities. So where possible, we will try to have that land lease extension. We have also tried to buy back some of the shorter land lease, but because of the nature, it is a bit more opportunity stick and it depends on the profile of the users that it is looking at. Because typically, these assets that we have in Singapore, these are mostly pertaining to Singapore, the short land lease, are very small, older type of generation kind of industrial assets. So we are still sourcing for tenants or buyers that actually find such a facility suitable for their business operation. Vijay, I hope that answers your question. Okay. As long as you have a tenant backing, I think authorities are ready to extend the lease. If there is a good business plan, they remain prepared, provided that the region or the vicinity that we are looking at is not subject to their master redevelopment planning. Okay, got it. Thank you. That is all I have. Brandon, you have a follow-on question, right? Hey, yeah. Just wanted to go back to the divestment part, can I just confirm that your FY 2027 target divestment amount is SGD 200 million-SGD 300 million? Yeah. Over the past six months, your divestment momentum seems to have significantly slowed. Is it because you were spending all your time on China and that got delayed, or is it because the environment has just become tougher itself? No, I think what we have wanted was the China divestment, so that has been delayed. So in that sense, you are right, is that we were working on the China piece. Whether the buyer sentiment has died down, I think, no. Because if we focus on the China market, in fact, we still continue to see interest from buyers. It is just that there is a pricing disparity that we are looking at right now. In terms of interest level, in fact, we have a bit more compared to last year, but the pricing disparity remains the same. Having said that, there are some which are looking at a bit narrower price gap. I think that's something that we are also exploring. The goal is still to sell at full value though? Yes. Okay. And just to close off the loop on your reversion guidance, can you just share with us what we could see for Japan, Korea, and Malaysia for FY27? Yeah. James, you want to take that? For Japan, the 4Q, we recorded 6.2%, it may seem very high, and that was coming from two leases. One of them was a long lease of five years, so it is mark to market for the one. Looking at this trend, for the next few quarters, there could be a couple of leases that we see could be renewed similarly. So the guidance that we can advise for the revenue guidance the next two quarters could be between 3%-5%. Korea could be closer to three. Okay. We talk improvement, yeah. Because we think the market is picking up. Okay. Hey, also just one more thing on the redevelopment that you just mentioned. Can I just confirm that it's the two Changi South plots which you buy? Could you give us some absolute value or in terms of timeline, when you intend to start this? In terms of the timeline, we are looking at next year, more the second half of the year. Yeah, middle of next year. Yeah. In terms of the quantum, it is about SGD 200 million range for now. Yeah. We are still fine-tuning the numbers, but I think, in terms of the implementation timeline, it's the second half of next year. Got it. Okay. Hey, thank you so much. Okay. Hi, Derek Tan, please go ahead. Hi. Thanks. Jean, I think you're earlier alluding to the second-order impact amongst your tenants. Could you break that down across the markets? Because obviously, I think Southeast Asia, India would be more vulnerable and maybe even Japan. Any thoughts on those markets and maybe Singapore as well? I think right now, what we are looking at is more the tenant sector. I think I mentioned earlier, in terms of the 3PLs, the larger ones and the smaller ones, the level of margin squeeze that they will face. So more from the tenant perspective that we're looking at. But if you look at it on the country level, I think right now, on the government level, some of the countries like China, Vietnam, Malaysia, they are either having some form of fuel subsidy or cutting in terms of their import fuel levy to kind of cushion that. I think right now it's still a bit too early for us to quantify in terms of the leasing demand, but I think that's what we are seeing right now. Okay, and what about Singapore? Is there anything you can share? Singapore, in terms of like Jean has shared, I think- Sorry, James, you're a bit faint. Yeah, sorry. Like what Jean has shared earlier, the larger logistics companies definitely have more muscle to pass on their increased costs for transportation at least. Because transportation costs typically is 60%-70% of the logistics cost. The balance could be warehousing and some packaging costs, et cetera. So, 60%, 70% of the transportation cost for 3PLs are able to be passed on by most of them through surcharges for their transportation. Again, we also receive feedback that some of them may take time to negotiate, right? Because some of the contracts are fixed for, say, 2, 3 years. By and large, the bigger boys are able to pass on the cost to their customers, right? It's the smaller boys that, they've less resources and less power to negotiate, right? So their margins would definitely be squeezed. Okay. The other thing. Sorry, James, go ahead. The other thing that, from our observation, there is no significant increase in demand for short-term space from the shipping disruptions, whether it is for inbound or outbound to the Middle East. We did not see the so-called spike in short-term demand, right, requiring short-term spaces. That is one observation that we see. Okay. So no just-in-case demand. That is all I ask. Thank you. Okay, Rachel? Hey, hi. Just some follow-up. When you mentioned the AEI is second half of next year, means it is financial year, is it? Financial, calendar year. Calendar year. Okay, it's 2028. Huh? No, next year. Oh, next year 2027. Sorry. Yeah. Sorry. Yes. Okay, correct. My next question is on Hong Kong divestment. Is the Hong Kong asset divestment included in the SGD 200 million and SGD 300 million, and any update on potential Hong Kong divestment? In terms of Hong Kong divestment, for the part of the SGD 200 million to SGD 300 million, we're still trying to divest one more mid-sized one. That one, we are still working on it, but I think we are also having some very small shorter title units that potentially may have some interest. While we are trying to actually sell the larger ones, at the same time, we are seeing some interest on our shortest units, which are very, very small units. Yeah. Rachel, I hope that answered your question. Yeah. Okay. Last one on China. The reversions, I think last time you guided that it will break even soon but didn't. Is it because the east market is worsening a little bit? Are you seeing a bit more supply coming through? No. I think in terms of the north and east, the vacancy remains high. Also with the high proportion of our expiry coming out from east, so we remain a bit cautious and watchful. We would want to see how our expiries in terms of negotiation are panning out for the first quarter, because right now in terms of the renewal cycle, it is getting very, very short. In terms of short leases, quite a number of our China tenants are still doing pretty short leases. In that sense, the visibility on the rents that we are signing, it is very dynamic. Mm. Understand. Any improvement in demand at all or still the same? Absorption rate we see in the east has improved. No doubt there's still a large supply, but the east China, some tenants that we see, because of the higher consumption power, the absorption is quite pretty strong. Yeah, I think if I can point out some color on the improvement in occupancy Q4 versus Q3, the improvements are largely coming from the east, central, and west region. Yeah. So, that is the sign that we saw in the fourth quarter. So there are improvement occupancy coming up from these three regions. Mm. Okay. All right. Thank you so much. Thanks for the color. Thank you. Hi, Andy. Please go ahead. Hi. Evening, Jean and team. In terms of valuations, can I just get some clarification? Like for example, your China reval was only down by about 1.5% and rental reversions was more negative throughout the year. Hong Kong as well, it was marked down, but your reversions was generally slightly positive. Then for Vietnam, strong uplift. Cap rate looks like the same, so was it driven mostly by rental, increases assumptions? And overall, do you expect some Cap rate expansion for this new financial year, especially in markets like Australia, for example? In terms of Vietnam, it went up a bit, is largely coming up from the organic growth in terms of the rental growth. In terms of Hong Kong, it is actually coming up from some expansion that we are looking at. Some Cap rate expansion happening in Hong Kong. For this set of numbers, in terms of expansion, we are seeing it in Hong Kong and then two coastal assets in Korea. In terms of the compression, we are somehow seeing it actually happening in Australia, Malaysia and India. The rest of the improvement are largely coming up from the better rents. Okay. How about for China? For China, it is mainly due to the lower rents. Why were the assets not marked down by more? Because the reversions was more negative, compared to the 1.5% that we saw that was impacted. Is it based on the assumption that the rental will improve heavily, like materially? Yeah, I think what the valuers do, they basically, if you are familiar with valuation, they do a DCF over the 10 years. So they actually have a view of where the market rent is. So like what you said, the rental reversion is there, the negative rental reversion. However, the valuers will take a view of when the lease is expired and it is renewed, where will be the market rent? Then how will it grow going forward over the 10-year period. Okay. So they will have baked in some recovery over the medium to longer term. Would that be a right assumption? Yes, that's right. Okay. And another question, in terms of AI for logistics. I'm just thinking from a landlord perspective, do you need to provide any AI or do you need to use any AI to entice tenants or are the AI tools, et cetera, driven mostly by the tenants themselves? Well, in terms of AI, what we see is they already started using, if you consider AGVs, autonomous guided vehicles. They are already being operated by some of our e-commerce companies and e-commerce distributors based in Hong Kong. So the requirements are basically flat floors, very flat floors, which we need to develop and build our lease space. And secondly is the power supply. So power supply has to be adequate to cater or to be upgraded to cater to the extra power usage to drive this automation equipment. So in terms of AI, well, it's more the hardware to be built there that our tenants have deployed. Okay. Thank you. Okay. That brings the end of the Q&A. Thanks very much. Please send me questions you still have. Okay. Thanks. Bye. Thank you all. Bye-bye.