Q2 25/26

Oct 29, 2025

Summary

Gross revenue and NPI declined year-over-year due to FX and divestments, but occupancy improved to 96.1% and developed markets remain resilient. China operations are stabilizing, with narrowing negative rent reversions and divestments progressing, while cost of debt is guided to remain stable at 2.7%.

Hi, good morning. Welcome to Mapletree Logistics Trust results presentation for the second quarter ended September 2025. We have the full management team here with us, Gene, CEO, Charmaine, CFO, and James, Head of Asset Management. To kick off the presentation, Charmaine, would you like to start? Morning, everyone. I will just take you through the two key highlights. Gross revenue is 3.2% lower year-on-year at SGD 177 million. This is mainly due to depreciation of currencies against Sing Dollar FX. We have the absence of contribution from divested assets. This is offset by revenue contribution from our AEI at 5A Joo Koon, now known as Mapletree Joo Koon Logistics Hub. That has achieved a committed occupancy rate of about 82% as of now. Lastly, we saw stable same store performance while there were lower contribution from China. This is offset by better performance from the other markets. This resulted in NPI being 3.3% lower year-on-year. DPU is 10.5% lower year-on-year at 1.815 cents, excluding the DG of SGD 6.1 million. Our DPU from operations is 4.8% lower year-on-year, but a positive 2.2% quarter-on-quarter. In terms of portfolio occupancy, that is 96.1% and improvement from 95.7% last year. Portfolio rental reversion, 46.6%, as we saw the negative rental reversion for China narrowing in 2Q. WALE stable at 2.7 years. Aggregate leverage 41.1%, slightly lower than 41.2% last quarter. Our average debt maturity is 3.6 years. We continue to hedge our interest rates, and about 84% of it is hedged in the fixed rate, while 75% of our income has been hedged in the Sing Dollar. Moving on to the results. Gross revenue is 3.2% lower year-on-year for the reasons highlighted earlier. Consequently, our NPI is 3.3% lower. On a constant currency basis, gross revenue and NPI would have declined by 0.9% and 1% respectively. Borrowing cost decreased mainly because of lower interest rate on our unhedged Sing Dollar and Hong Kong dollar borrowings, where we benefited from declining SORA as well as low HIBOR during the quarter. We also had some interest savings from the paring down of loans with divestment proceeds. This is partly offset by interest incurred on loans drawn down for the AEI, as well as replacement hedges at higher cost and higher interest rates for our JPY loans. DI is 9.6% lower, with a DPU of 10.5% lower 1.815 cents versus 2.027 cents last quarter, in 2Q last year. Excluding the DG of SGD 6.1 million, operating DPU is 4.8% lower, 1.815 cents versus 1.97 cents last year after taking into account a higher unit base. One half results. Reasons for the variances are largely similar to that versus, for the 2Q versus 3Q last year, including DG. Our DPU would have been 11.4% lower, 3.627 cents versus 4.09 cents, excluding DG of about SGD 11.8 million. DI is lower by 5.1% and resulting DPU from operations 6.1% lower at 3.627 cents versus 3.861 cents. Sequentially, 2Q versus 1Q, I think you saw a better performance. Gross revenue marginally higher, mainly coming from the contribution from our 5A Joo Koon AEI. Property expenses higher, mainly because I think we will take some time to cover the property expenses incurred at 5A Joo Koon as we continue to ramp up the occupancy rate and start collecting more revenue for the AEI project. Accordingly, NPI is just marginally lower. Borrowing costs lower because of the lower Hong Kong dollar and SGD SORA rates. Resultantly, our DI, SGD 98.2 million versus SGD 97.6 million and available DPU 0.2% higher, 1.815 cents versus 1.812 cents after accounting for a higher unit base. Moving on to the balance sheet. Our NAV stable, SGD 1.26. Leverage at 41.1% versus 41.2%. Interest cost came down marginally to 2.6%. We target to keep this at similar levels, about 2.7%-2.8% for the next two quarters. Depending on where the SORA market goes, we may benefit a bit more, but we are still looking about 2.7%. Our debt maturity profile remains well-steadied. Average debt duration about 3.6 years. We have about SGD 819 million of available committed credit facilities to meet our refinancing needs in the next 12 months. As mentioned earlier, we have hedged about 84% of our total debt into fixed rates, leaving the rest of the 15% in SGD and at JPY floating rates, which will benefit from all the floating rates movements. In terms of FX, we have hedged about 75% of our FX for the next 12 months with the SGD or derivatives in dollars. I'll pass over to James to bring you through the portfolio details. Hi, everyone. In terms of our portfolio update for Q2. This meeting is being recorded. This meeting is being transcribed. Revenue is supported contribution by the developed markets, which continue to be at 70%, which gives us the stability that we need. In terms of trade sectors, 85% of our revenue are actually serving domestic consumption, which remains resilient. Only 15% of our revenues are for exports. But as we have shared earlier, to U.S., our exposure is less than 5%. So there's limited risk to our portfolio. But we can't discount any indirect consequences on the tech to the sentiments of the market. Next, occupancy. Overall, our occupancy remains very resilient. It has improved from Q1, so now it's at 96.1% compared to 95.7% in 1Q. So in most of the markets, we continue to have 100% occupancy like, Australia, Vietnam, India, and Hong Kong. We see four countries registering positive occupancy rates. Singapore is one of them. As shared by our CFO, this is due to the easing up momentum at our 5A Joo Koon Circle, or now it's called the Joo Koon Logistics Hub. So the Q2 occupancy is 60%. Our committed leases is at 82%. So we should see this improving as we move along in the next two quarters. China also saw improvement in the occupancy rates, driven mainly by improvement in occupancies in the tier 2 cities. Japan was down primarily due to a lease expiry in Kuwana. So we are in the process of backfilling the space in the next one, two quarters. Korea saw improvement in occupancy based on a new lease in One Sangwon. Malaysia has also saw a slight improvement in occupancy because of a new lease in Tanjung Pelepas. Next. In terms of rent reversion, our overall rent reversion was 0.6%. Excluding China was 2.5%. In Singapore, it was 3.9%. Japan was zero, flat. Hong Kong, 0.7%. South Korea, 1.1%. Malaysia, 3.4%. China, -3.0%. Vietnam, 4.3%. And there were no lease expiries due in this quarter for two other countries, Vietnam and Australia. Yes. Australia and India. In terms of the lease expiry profile, we saw that in Q2, our lease expiries for the balance of this year is down to 16.6% compared to last quarter, which we reported 25.3%. 20% of our total revenue is contributed by the top 10 tenants, so there is no single tenant that contributes more than 4% of our portfolio, so there is no concentration risk. Next. In terms of active portfolio rejuvenation, as you know, we have announced three completed divestments in Q2, namely 31 Tanjong Lane in Singapore, Subang 2 in Malaysia, and Yeoju in South Korea. We have completed one in 3Q, mid of October, for the one in Wodonga. Okay. I will go through a couple of slides to update you on our green initiatives. In support of the group's long-term target of net zero emissions by 2050, Mapletree Logistics Trust has committed to achieve carbon neutrality for Scope 1 and 2 emissions by 2030. On this front, we are pleased to update that our target set for FY 2025, 2026 for solar generating capacity as well as green buildings. Year to date, we have reached, attained that target. For solar, we have already expanded our capacity to currently 56.4 megawatt peak against the target of 55. We are on track to hit 100 megawatt peak in 2030. If we take in to include third-party funded capacity, actually we are at 108 megawatt peak, which I believe should be the largest, if not one of the largest amongst Singapore REITs. For green buildings, we have already reached a 69% percentage for our portfolio by GFA. We hope or aim to reach 80% by the year 2030. For green financing, we have secured another SGD 300 million of new green and sustainable financing this year, and that brings it to a total of SGD 1.5 billion or about 27% of our total borrowings, up from 24% as of March this year. For green lease, we also continue to make good progress, tracking at about 59% currently for all our leases. We are also happy to note that our Benoi Logistics Hub, which was the first AEI in Singapore, was recently recognized as the only industrial logistics building under the BCA Green Mark 20th Anniversary Building Project. Now I will pass over to Jean to wrap up. Good morning, everyone. In terms of the outlook, I think, as all you are aware, the world economy has proven more resilient than expected with a lot of the front-loading of exports and AI investments. In terms of the trade tensions between the U.S. and China, it appears to be cooling down based on the latest development. However, I think this on-and-off tensions continue to create a lot of uncertainties and continue to cloud the global economic outlook, as well as keeping our business and consumer sentiments cautious. Operations-wise, you have heard from James, we have a slight uptick in our occupancy rate this quarter compared to last quarter, mainly coming up from Singapore with the progressive leasing out in ViachaKun, as well as China. Our negative reversions in China has been narrowing, and it is now at negative 3%. On the leasing outlook, from the occupancy and rent reversions, our China operations appears to be stabilizing. By region, in terms of the West and Central China, it seems to have bottomed. We are starting to see some higher signing rentals from some of the cities in the West, for example, in Guiyang and Kunming. On the Northern China rents, like I said earlier or before, we have already signed at very low rents. If the situation doesn't further deteriorate, we hope that whatever we have locked in continues to be stable. On the South, there will be a lot of upcoming supply, but for Mapletree Logistics Trust, we only have two assets, I think. So that's not a very big concern to us. The region that we are watching very closely that is of concern is actually the East China Greater Shanghai region, as the vacancy remains elevated and pretty high at around 26%. I think in a nutshell, if you ask me, when is the inflection point? Really, it is very hard for us to put a forecast. With the current weak domestic consumption, we think the excess supply will probably take at least another one to two years or more for it to be absorbed. Going to Hong Kong, the leasing market remains cautious with the ongoing slight uncertainty. However, to date, we have renewed or replaced about 90% of this FY lease expiry, and already the team is already starting to engage our bigger tenants for the coming FY lease expiries. Based on the earlier conversation, we think they will likely continue to renew with that. I think in terms of the rental reversions, it will likely to be flattish, taking into consideration the current vacancy levels. As for Korea, there is an elevated market vacancy of 16%. Although in terms of the supply pressure, it seems to be easing based on the current statistics. The flight to quality continues with some of our older specifications facing some leasing challenges and higher incentives. Back to Singapore, as mentioned by Theobu and James, we have already achieved a commitment rate of 82%, and we are looking to still target to achieve full occupancy for this AEI by this financial year-end. So Singapore remains a resilient market, but with more supply coming on stream these two years, we think the rent reversions will moderate to a low single-digit kind of growth trajectory. I have covered about 30% of AUM, and the rest of the 30% from the five countries like Australia, Japan, Malaysia, Vietnam, India remains resilient. On capital recycling, I mentioned before that we have identified a SGD 1 billion pipeline as potential assets for divestment as part of our portfolio rejuvenation strategy, and half of it will come from Greater China. So last year, we executed about SGD 210 million. To date, we have executed about SGD 60 million post-quarter closing. For the divestment target this financial year, we are targeting about SGD 100 million-SGD 150 million this financial year. On the divestment options for China, we are in discussion, and we have received a few interests from some insurance companies and SOEs on a few of our assets in China. So we are still in continued dialogue. As for the renminbi fund, it is something that we are exploring as a possible exit option. On acquisitions, amidst the tapering of interest rates, there are more opportunities out there, and yield spread seems to have improved for some of the countries. But we remain highly selective and disciplined in our acquisition process. We will be keen to increase our presence in our emerging markets like India and Vietnam, as it still offers a faster growth trend, and our AUM is still very small in these two markets. As well for Singapore, we are also still exploring AEI opportunities in our lease location in Singapore. With this, I think I wrap up my presentation and I will leave it for Q&A. Thank you. Okay. We are now open for Q&A. Okay, Mervin, you are first in line. Hi, Mervin. Yeah. Thanks, Yin Mei. Jean, congrats on the fabulous performance in China considering the difficult market conditions there. Very glad to see some signs of stabilization. Just on the China reversion, I think guidance previously was a flagship for next financial year. Are you maintaining that guidance or is any variation? Your occupancy, been able to hold it, low 90s actually increased this quarter. Any guidance on occupancy going forward? Second question I have is in terms of cost of debt guidance, thoughts for second half this year as well as FY 2027. Thanks. I will get Jim to answer that. Sure. On the first question on China rent reversion, yes, your observation on the raising of the negative rent reversion is coming up. We see that the next two quarters, we are still watching closely. It should improve, and we should flatten hopefully within the next two quarters. That's the outlook for China. And the occupancy, you were referring to China occupancy, did you? Yes. Yeah. I mean, the market vacancy is still very high, so you've done an amazing job holding it low 90s. Yeah. So we are still positive about our occupancy rates in China. As you can see, Q2 we improved one percentage point. So we reckon that, in the next few quarters, it should be hovering around this level, 94% or even better. Just to follow up on the reversions, you expect it to improve the next two quarters at least. But is there a chance that the 0% level rather than next FY 2027 could be fourth quarter? We are looking at perhaps in Q4, hopefully we can have a neutral position by end of the FY. We are still working very hard towards that. Okay. That is fantastic news. Okay, and the interest cost guidance. Thanks. Hi, Mervin. On the cost of debt, it was 2.7% last quarter. This quarter it declined slightly to 2.6%, mainly because we benefited from the lower SOFR rates as well as the low HIBOR rates at the beginning of the quarter, which has now increased. Moving forward, I think for the second half, we are looking at about 2.7%, but also a lot depends on where the unhedged rates will be. But at its current level is about 2.7%, and we will target to keep it stable for the next financial year. Okay, thanks. I will hand over the rest. Okay. Daryl from DBS, you are next. Hi. Good morning. Can you hear me? Yep. Yes. Hey. Good morning, James and Jean and team. Congrats on the stable results. Just two questions from me. The first one is on Joo Koon. I know you are getting fairly good committed occupancies. Just wondering whether for the remaining leases, from 60% to 80%, are you getting higher rents? At this moment in time, what is the income collected reflective in terms of occupancy level? We would expect that incomes for this asset should start to continue to improve in the subsequent quarter. That is the first question. My second question is on income hedges. I just want to get a sense about your hedging expiry for next year. Which are the currencies that we should be taking note of, and whether there is going to be any potential mark-to-market? I am watching, especially your Japan and Hong Kong hedges, something that could be a spend in the work. Just wanted to get this out of the way. Yeah, thanks. On the AEI, Joo Koon, the rentals, because we have now hit about 82% committed. The leases for the balance will definitely be higher than the present because this is quite typical. When you first start, there will be certain more incentives to start with to get the lease in. Then, as we improve the occupancy rates, the rents will go up. That is typically how we are marketing this project. Okay. Last quarter, how much have you collected out of the 60%? How much are paying each or- It is about SGD 1 million. It is about SGD 1 million with all the fitting out and rent free. Yes. Derek, I think in terms of the contribution from the new AEI, in 2Q itself, we collected revenue about SGD 1 million. But I think this is largely because a lot of the rent freeze and fit out fees were given in the front. You are right, we will see this contribution increasing for the next two quarters, and more of it in the next financial year. Oh, okay. That's good news. Okay, thanks for that. Okay. I think the hedges, right? Okay, for the next 12 months for JPY, we have locked in about 83% of our DI from Japan, at a rate of about less, about 90. Oh, okay. Yeah. That's a very good rate. We will enjoy it while it lasts. For Hong Kong dollars, 72% has been locked in. The rates are at about 5, almost 6. You mean everything expire now, right? Only part of it. For the next 12 months, yes. JPY, all 83% will expire by 12 months time. Mm. Okay. It will be mark-to-market. Yeah. Yeah, a lot of it is mark-to-market. Okay, for JPY, I think a bit more color, we have previously locked in for a longer period. If you look at beyond the 12 months, we have locked in about 56%. The mark-to-market rate for JPY would be lower, slower. But like for Hong Kong dollar and the rest of the currency, I mean, most of them will expire in the next 12 months. If you notice the swap cost, right, the hedging cost, it's gone up actually quite a fair bit in the last past half a year. The rates that we are able to enter into forward these days are not as attractive. Mm. Okay. Got it. That's all I need to know. Thanks. Good. Thank you. Okay, next, Rachel from Macquarie. Rachel, you can ask your question. Please go ahead. Can you hear me? Yes. Hi, can you hear me? Yeah. Okay. Hi. Good morning. Congrats on the China bottoming out or fastening up guidance. Two questions from me. Firstly, in terms of the interest cost, I think you are guiding that next year is going to be flat 2.7%. I am just wondering, how are your hedges like in terms of the interest rates versus the current rates? I think a lot of the rates are already recording lower average cost of debt. Are there still more lower rates debt in your books? That is one. My second question is on the China lease expiries, that is coming up this year, remaining of this year and next year. How much of those lease expiries are coming up from the East China assets? Last one, in terms of your divestments, are you seeing a pickup in interest in transactions now that the interest rates are actually lower? In terms of that, we should expect a faster pace of divestment. Charmaine, you want to start with interest first? Okay. I will go on the interest cost first. I think the first thing first, at an interest cost of 2.7%, I think that is one of the lowest in the market as of now. Color on the hedges that is falling off next financial year. For example, our Hong Kong dollar, the rate that is falling off, it is 1.7%. If I were to replace it with Hong Kong dollar IRS, that would be much higher. What we have been doing in the past one to two years is, when these really low rates in Hong Kong dollar and Aussie dollar comes up for replacement, we have actually replaced it with a cheaper currency. For example, CNH or SGD. I think to keep our interest cost at 2.7% next financial year, we will potentially replace this Hong Kong dollar debt that is expiring at 1.7% with maybe a Sing Dollar or a CNH loan, which would be similar levels at this expiring 1.7%. That is how we will try to keep our interest cost stable. Does that answer your question on how it is going to be at 2.7? If you look at the universe of rates as of now, I think the lowest that we can find would be Sing Dollar and CNH, and of course JPY too. With the new prime minister, I think maybe the rate of increase for JPY would be slower. But comparing against whatever is expiring, it would be similar levels. Okay, got it. How about your Singapore loans then? Will you still get some benefits from your Singapore loans? Okay. The Singapore rates that are dropping off are like 2%, maybe marginally lower. But we do not have any Sing Dollar due for refinancing in the next one, two years. I think I also mentioned earlier that in terms of the lower rate this quarter, we have benefited from the unhedged portion of the Sing Dollar loans. If SORA- decreases or lowers further, yes, we will benefit. Conversely, if SORA increases, then our 2.7% will probably increase to 2.8, 2.9, depending on where SORA is. Okay. Thanks for the comment. Rachel, so regarding your questions on divestments, with the lowering of the interest rate environment, the divestment activities, you are right that it is starting to pick up, and we are seeing more interest. Particularly, I think for our greater China portfolio that we are looking to divest, at least we are seeing some inquiries coming in. So right now it is about the discussion on the kind of pricing that the parties are looking at. From that perspective, on the China divestment process, compared to last year, it is slightly better. We are seeing interest. The other part that we have been trying to sell, like the older specs, like in Korea, Singapore, Malaysia, that one, I would say it would be a bit less sensitive to the interest rate environment, but more about whether the end user or the buyer finds our property relevant for their business requirements. Not that interest rate is not important, but I think more of whether the current specification suits their business needs. In a nutshell, I think that is what we are looking at now, like in terms of the current divestment pace. Okay. I hope that answers your question, Rachel. I will get James to answer on the lease expiry in China coming up from the east region. Rachel, I will get back to you before the end of this call. We are concluding. Okay, great. Thank you so much. Thank you. All right. Shall we move on to the next person? Okay, Brandon. Morning, Jean. Can you hear me? Morning, Brandon. Yes. Yeah, good. I just want to go back to the asset divestments in China. Yeah. The fund that you spoke about, are you talking about the private REIT or are you looking for C-REIT? That is the first one. No, it's the private one. It's private. It's the Lim Ming Zik fund. Oh, okay. For the timing-wise, this half a billion that you're looking to sell in China, can you roughly guide us on when we could see this being offloaded from the balance sheet? It is quite hard for me to actually give a guidance, but I think immediate for at least this one, two financial year, probably SGD 100 million. Okay, SGD 100 million in FY 2026. So another SGD 400 million in FY 2027. Yeah, but that one also includes the Hong Kong divestment that we are looking at. We are looking at trying to divest our Strata Title assets, and that is going to take some time because all the Strata assets, we will need to find a lot of individual owners. So that one will take a bit of time. Oh, okay. Basically, the half a billion that you see- It is greater China. It is Hong Kong and China. Oh, greater China. Okay. Yeah. Okay. In terms of the divestment premium or discount, can you give a guidance on that for both Hong Kong and China? We are looking at valuation. At valuation? Yeah. Okay. Just one last one to top it off, right? Just looking at some of the leases that you signed this quarter in China, I saw that some of these have been brought ahead to FY 2027, 2028. Does it mean that you are still signing pretty short leases in China? Okay. I think, generally, yes, the leases in China, it is still pretty short-term in nature. In terms of signing beyond 2 to 3 years, we are still seeing, but it's really very few. Overall, most of the tenants in China is still taking a cautious position, so still pretty short-term. But if you ask me, if I diagnose further, if you look at the renewals that we signed this year versus last year, in terms of the will, we are seeing some slight, very mild improvement. Yes. Compared to, that is why I'm saying that last FY renewal versus the first half of this FY renewal, in terms of the will, is slightly longer. Yep. Yeah. Okay. I hope that answers your question, yeah. Okay, that's good. Yeah, positive. Thank you. Bye. Okay. Su Anne from Goldman. Good morning. Hi, Sue-Anne Lim. I have a question on acquisitions. How are you thinking about funding? Is it coming purely from divestment, or are you now open to equity now that share price has increased? For now, it will still very much be the divestment pace, depending on how much capital we can recycle. Having said that, if there is a large portfolio that is very attractive, I think we do not rule out the option to tap the market. Okay, got it. Can you share more colors about the China divestment at valuations? I guess you have seen some office in SOE steep discount. Why is logistics holding up better? Okay. I think in terms of why we are seeking their valuation, I think that is something. That's why, if you notice, it is still taking. We are still trying to negotiate. We are still trying to negotiate. The other reason, I think if you look at, I forgot to add on that, in terms of the renminbi fund that we are looking at, right? We are actually working with our sponsor on this. So that's something that we are negotiating with them. Okay, got it. Thank you. Okay. Next in line is Derek Chang. Thanks. Hi. Good morning, everyone. Hi. Just a quick follow-up, I guess, on the divestment of the assets to the sponsor, right? Yeah. That is the development fund that they have. So will this be a potential, you divest and then you do a joint development with the sponsor? Or how are you thinking about this? No. It is more like, we have some assets in the balance sheet that we are looking to divest to this fund, and then the sponsor will be more like a LP. Whereas they will also look to get some capital partners in it. So we will not be having a stake in the fund. Yeah. It is not- Sorry. Yeah. It is not a development fund. We are just exiting our assets and put into the renminbi fund, which is an income fund. Oh, okay. So the pure exit. Okay. Yes. Okay. Understood. Thanks for that clarity. Yeah. On acquisitions, I think you mentioned earlier, India and Vietnam. These markets, I guess the yield spread is not too attractive, especially if you are looking to deploy proceeds from divestments. Are there other markets that you are looking at where yield spreads are more attractive? In terms of the yield, these 2 markets continue to be the highest from the yield perspective. Of course, I think in the other markets where we are starting to see interest rate coming down, for example, maybe Korea, in terms of yield spreads, it is a bit better. So maybe that is something that we will continue to look at, but it will really be very opportunistic. As for Australia, I think the rate has not really come down much, but it is something that we still continue to monitor. Yeah. What about Japan and Singapore? Singapore, we are looking at more AEIs, asset enhancement. Yep. I mentioned that we are actually exploring, in discussion to acquire a property that is adjacent to our current asset, and we are looking at amalgamation and doing a new redevelopment. For Singapore acquisitions, it will be more perhaps buying some old properties that is very near to our existing assets, and we are looking at redeveloping it. Got it. Japan? Japan. Yeah, no doubt the cost of debt is the lowest at low 2s. But if you look at the yield, it is actually very tight at 4% or below. From that perspective, if there is any potential acquisition, it will have to be via recycled proceeds. Got it. All right. Thanks so much. Yeah. Okay. Next we have Terence. Hi, this is Terence from UBS. For the China portfolio, do you mind sharing how under/over rented, the current in place rents stack right now versus market? And if you don't mind splitting between tier 1 and non-tier 1 type of classifications. Yeah. James here. Currently we analyze, in terms of mark-to-market, I think that's what you're alluding to, what percentage is now mark-to-market. So we scan through our leases in China, about 10% is yet not mark-to-market. So we need to see they would exist if the market remains at a certain, at this current situation without going down further or without going up, right? We have 10% of this exposure. But this 10% is not going to expire all within one year. So it's spread over the next three years or so. Okay, got it. I think just going back to the point on acquisitions. I think the earlier statement was focusing on India/Vietnam, but I am just thinking, why not just focus on Singapore, whereby you can avoid the FX issue, borrowing cost is also almost one of the lowest points in history. Whereas, I guess the preference for EM has, Q to date, proven to be quite challenging. Okay. I think for Singapore, because it is a very regulated and tight supply market, right? Definitely, if there are opportunities, we will definitely also take a look and evaluate. In fact, there were a few deals that we have seen, but I think, it is a bit challenging at this point in time, taking into consideration some of the expectation as well as the tenant that is left. So that is something that we will continue to want to pursue, but realistically speaking, it will be more opportunistic from that sense. So that is why I think in terms of acquiring a small property which is near to our existing one, for us to do the rejuvenation, it is something at least it is more achievable. But having said that, I think definitely we will still continue to pursue. It is just that I think in terms of modern Grade A specifications that is available after the moratorium of the JTC requirement, typically, we are looking at a very short land lease left. So it is something that I think we are cautious about, and we would prefer for Singapore to rejuvenate within an existing portfolio that we have. So far we have done 4 and 5 is our fifth successful AEI. Is it our fifth or fourth? Or fourth, sorry. Fifth is including the old Royal. It is our fourth successful AEI project in Singapore with good track record in terms of the leasing performance as well as in terms of giving us good returns. Okay. My last question is, maybe this is more big picture thinking. We are seeing REITs where through the period of high interest rates, surely the DPU had suffered. But even coming out of it, I think some of them are trying to shore up their capital buffers now. So we are seeing some examples of REITs, I guess, reducing fees in units now. So I guess the parallel being that for MLT, FY 2026 looks to have taken a hit. So when we formulate our thinking about FY 2027, is that also part of management's thinking that it is time to, I guess, rebuild some of these buffers? Yes, you are right. I have mentioned before, once our operation starts to stabilize, our DI starts to improve, we are looking at slowly taking back some of the fees in units and convert into cash. It is something that remains in our mind and we will do some conversion as and when our DPU is able to take it. I guess suffice to say, Adrienne, that I think the idea of divestments is limited gains and correct me if I am wrong over there, and I guess by extension also, if there are any gains, we probably won't see them being paid out. Yeah, I think we have just turned off the distribution of the divestment gains just a few quarters ago. If there is any future divestments with just very few million gains or very little gains, I think we will continue to actually keep that and strengthen our balance sheet for flexible financial agility for future acquisition. Having said that, if we are able to divest an asset that gave us a very huge gain, I think it is something that we are open to explore to give a bit of a divestment gain in future. Based on a lot of the divestment pipeline that we are looking at, we do not foresee that there will be a very huge gain over the original cost based on our current visibility. Okay, got it. Thank you very much. Yeah. Thank you. James here. Back to your earlier question, you asking in terms of the balance of this fiscal year or financial year, what expiries from East China is coming up? In our portfolio, East China consists of Zhejiang Province, Jiangsu Province and Shanghai. We have 19 properties in all in East China. Based on lease expiry, we have 36% due from East China coming off for the balance of the year. Of course, not all the 36% are going to expire just like that. Some could be an increase, some majority will be renewed. Hello. Sorry. Yeah. Did you hear me? Yes. You are saying the financial year is 36%? Balance. Yeah, the balance of the next two quarters. Yeah. Okay. These leases are mark-to-market already at current rents, right? Hello? No, there is still a small gap. Yeah. Still? Okay. Yeah. How about next year? Next year we are looking at about, for East China, about 25%-30%. Okay. Also saying that there's still some haven't mark-to-market. Yes. Yeah. Single digit, yeah. Percentage. Okay. Can I just ask one last quick question? In terms of your Renminbi fund, what is the fund size that you are expecting? I think it is something that is still in discussion. In terms of what I have guided, I say half a million is coming out from China and Hong Kong. From our perspective, I think in terms of the sale, the ad auctions for China, it is not a very large amount in that sense because I mentioned that half a B, right? A lot is also coming out from Hong Kong as well. Oh, okay. Yeah. This Renminbi fund is specifically for the China asset only now? Yes. That is what you are saying, right? Yes. Okay. Okay. The Hong Kong assets are still expected to divest to third party? Yes. That will probably take some time, because those that we have identified are strata title units. Meaning that, all the small units will take some time to get the right buyer. Okay. And typically, the buyer's interest would likely be from the business owners, rather than an USP kind of demand. Okay. Got it. Is there a timeline for the renminbi fund? Is it going to be this year or next year? We are looking at hopefully quarter four, but maybe most likely quarter one, next financial year. Quarter one next financial year. Okay. Okay, got it. All right. Thank you so much. Yeah. Okay, next we have Brandon. Hey, Jean, just a few follow-up questions. Just going back to China. Assuming that your China stabilizes, how big of an improvement in the earnings contribution you would see coming back from China? Because I think this quarter you are at 14%. In the good old days, you were at 20%, 21%. Any specific numbers you can give us? Brandon, it is a very difficult question to answer. I do not have a crystal ball. Unfortunately, I cannot give you the guidance. But what we are really trying to work on the ground is really, as you have seen for the first half, we are trying to really do that stabilization. There is still a fair bit, I think some of the, like Rachel has asked, how much is coming up from East China. So we still have for the East China, there are still some leases coming up. That is why I think it is very hard for me to give you a number at this juncture. Okay. Can you give a rough reversion guidance for FY 2026 in Korea and Japan? FY26. You are referring to next financial year, is it, Brandon? For the remaining- Or this year? Remaining second half. For second half If you can give 27, even better. Yeah, actually, I was going to say if it is next year then, can we check in again later another time in the quarter? FY26. Okay, FY 2026 second half, right? Okay. For which country again? Korea and Japan. Yeah. James, you want to take that? Yeah. Yeah. For Korea we believe next year or it will be- Second half of this year. Second half of this year. Second half of this year. Maybe full year. Maybe full year is easier. Then we can plan it ourselves. We are just advising you the second half of this year for Korea. It is still going to be around 1%. Yeah, it will be the low single digit. Around what we are seeing at the current second quarter. Yeah. In Japan, it should be quite similar as well. Not zero, but- Quite flat-ish. Flat-ish. Yeah. Probably, 0.5, that kind of range. Okay. Just one last one. You mentioned that equity is considered if it is a portfolio, right? When you say portfolio, is it more external or is it an amalgamation of your sponsors assets in India, Vietnam, Malaysia, everything, Australia even, all combined? If anything that is up for review and any opportunities, that is good. I do not want to rule out whether it is third party or it is IPT. Got it. Okay. Thanks a lot. Mervin, you have follow-on questions? Yeah. Just a follow-on for the Joo Koon Logistics Hub. When do we expect full cash flow contribution for the initial 60% committed level than 82%? Sorry, didn't get your question. When do we expect full contribution from the 82%? The initial 60% and then the 80%. Full contribution. Yeah. It should be in part of 3Q onwards. 3Q we will get the full 60%? Yes. Okay. Then the 82%. Part of 3Q. Because 2Q, some of the leases came in since September. Right? So we give them quickly or. Oh, then that means 4Q 2026 then you get at least a full 60. Full 4Q. Yeah, 4Q. Then the 82% will be middle next year, next financial year? 82% is likely to be part of 4Q. Oh, part of 4Q. Yes. Okay. Much better than my projections. On the HKTV lease Next year you will be expecting a full contribution. Basically the full year contribution we are expecting from April. Yeah, the full 82. Okay. On the HKTV lease, I cannot remember, was it renewed like a year ago or is it coming up again? What is happening with the lease? HKTV has extended with us over the last few years, so their leases are renewed with it. Was renewed I believe of last year. When does this expire? Typically it's a 3-year lease. 3 years. Okay. Final question from me. In terms of Australian net effective rents, especially for Melbourne, it's been quite weak. Your thoughts on Australian market at this point in time, and rental reversion guidance for Australia going forward? Yeah. For Australia, you're right. Melbourne, because of the supply, the rents are a bit soft to a single-digit. Similarly for Sydney it also has normalized to single digit rental growth. But for places like Brisbane, it's much stronger in terms of renting because of the demand and supply dynamics. So Melbourne is because of the, I wouldn't say oversupply, but new supply coming out on stream, that is causing the weakness in the rentals. But whereas Sydney- Yes. not so much new supply, so the rents are still quite healthy. But it is single digits rent growth, not so much of double digits rent growth which we experienced last year. In terms of your in-place rents for Sydney, Melbourne, and Brisbane, how does it compare to spot market rents at this point in time? How under-rented is it? Yes. For the leases, because the rents, the lease profile for Melbourne and Sydney, typically can be, most of the leases are between 3 to 5 years, so we can expect still upside when market rent is renewed. Mm-hmm. How under-rented would they be? Is it still 10%, 15% below market, or? I would say about 5%-15%, depending on the lease. We should still see income growth in that area. Inaudible. Brisbane, how under-rented is it? Brisbane is more or less at market rate. Okay. But that spot is still growing up, we were seeing more. Thank you. Okay, thanks. Bye. Okay. Thanks very much. Thank you. Okay, next we have Joy. Hey, morning. Jean team. Just a quick question from me. First of all, on lease tenure, other than China, are you also seeing other places that are shortening lease tenure because of all these trade uncertainties? For example, Vietnam. Not really, no. Yeah. There's still, in fact, sentiments on the ground is very positive. In fact when the, what do you call it? Lease expires, we have actually quite a number of prospects lining up. in our facilities. That shows the market is still very robust. In fact, I think the demand inquiries is very strong, and we do not have much space to fill up the vacancy. We don't have any vacancies in that sense. Yes. We have more demand than the supply that we have. Okay. Then just on that topic, from Chinese tenants moving outskirt to ASEAN- how much are you able to actually capture? Oh, we have captured, I think across our four locations. Singapore Singapore, Malaysia, Vietnam, and Hong Kong. In terms of flow, I guess, in recent where I think we are seeing a lot of flow into Vietnam. Outside of that, is there any other locations that you're seeing a sudden surge in demand? You mean out of the Asia Pac? Out of, yeah, Asia Pac. Oh, yes. Actually, they are looking for space in Middle East as well as in Europe. Oh, no, sorry. Not out of Asia Pac. I mean within Asia Pac. Oh. My- Oh, within Asia Pac. It is mostly the four countries that we have. Actually, Australia, we had as well. Yeah. Okay. Okay. Cool. Yeah, and I missed the early part of the discussion on the China fund. Okay. Can I just understand why there is no intention to do C-REIT? Okay. I think between the two, the C-REIT, the setup timeline is going to be very much longer. I think for C-REIT, one of the key conditions is that about 75- 85% or 85% of the recycled capital has to be in China. Oh, reinvestment. Yeah. All right. Yeah, I need to reinvest. That is why I think in terms of that exit option, the renminbi fund will be a bit more attractive to us. I think- Does that also apply- Mm-hmm. Yeah, go ahead. Sorry, go ahead. Oh, I think there was also. There was also a question about how much of the China assets that have been earmarked, as well as the Hong Kong assets have been earmarked for divestment, how much is for the fund? Not all will be going to the fund. In terms of the split between Hong Kong and China, it is about half. But out of the half that is coming out from China, not all will go into the renminbi fund. There are some that we are separately in discussions with some other interested parties. You will also rule out the possibility of doing a private REIT on the Shanghai Stock Exchange. I think that one, probably at this point in time, not within our planning horizon. But won't rule out. Okay. One step at a time. Okay. Got you. Thank you very much. That is all from me. Thank you. Okay. I think that we have come to the end. Thank you so much everyone for dialing in. Any more follow-on questions, please feel free to reach me. Thank you. Have a good day. Bye. Thank you. Bye bye. Thank you. Thank you.