City Developments Aktie

Good morning, ladies and gentlemen, friends from the media, analysts and fellow CDL colleagues, a very warm welcome. My name is Belinda, and I'm the Head of Investor Relations and Corporate Communications at CDL. On behalf of the CDL management team, I'd like to warmly welcome you to CDL's Strategic Review Briefing 2026. This is the very first time we are holding our briefing right here at the Union Square Residences Sales Gallery, and we are delighted to have so many of you in this room this morning. Union Square is one of CDL's major integrated mixed-use redevelopment projects, and it is perhaps a fitting setup as we share the next chapter of CDL's strategy road map. So this is a hybrid briefing. We are also joined virtually via webcast by many members of the media, analysts and the investment community, and we thank you for joining us this morning.

For today's briefing, in line with CDL's commitment to environmental sustainability, we will not be providing any printed materials. Instead, I encourage you to scan the QR code that you see on the screen in front of you to download or view the strategic review materials. For those that are joining us on webcast, you may similarly be able to download these documents via our website. Now they include a press release summarizing some of the key highlights of our strategic briefing this morning and also a presentation deck that our Group CEO, Mr. Sherman Kwek, will be walking through very shortly. So for all the guests joining us, please similarly ensure that you have those documents with you.

Today's briefing will be in 2 parts. Our Group CEO, Mr. Sherman Kwek, will kick off with the presentation and delve a deep dive into the strategic review presentation outcomes, followed by later a Q&A session together with our management team. So without further ado, may I ask Sherman to please kick us off with the presentation.

Good morning, everyone. Wow, double mic. Yes, thank you all to the media and analysts for taking time to come to attend our unveiling of our strategic review. And I know it's been a long time in coming. As all of you would remember, I mentioned before, we appointed Teneo, our global advisory firm that advised us on this exercise last year, probably about September. And in the immediate few months from then, ensuing, they basically did an investors -- investor perceptions audit, right? And that was in order for us to garner as much feedback as we can from both sell-side and buy-side analysts and once that was done, it was primarily much of this year, I think that the management team, that the Board and many workshops that we've done with Teneo as well, we have gone in to really do a deep dive into our strategy and to refine what we would like to achieve in the next 3 years.

So without further ado, I'll take you through it. I'll try to be relatively brief and quicker with my presentation so that we leave more time for Q&A, which I'm sure lots of you have burning questions to ask. Okay. Our GET strategy that's been in place since 2018. Some people may be a bit disappointed saying, hey, why did you go back to the GET strategy again? The truth is actually when we embarked on this exercise, all of us went in with open minds. And in fact, the overriding sentiment back then was to, I think, do away with the GET strategy and come up with something entirely new. But throughout the past year, as we've been working on this, especially during many workshops and during the ongoing process, I think we found ourselves coming back much of the time to these 3 pillars that we had originally arranged in, right?

And even for me, right, even though I was the original architect of the GET strategy in 2018, but I was very willing to say goodbye to it. And obviously, we want to do what's best for CDL and all the shareholders. But because of the relevance that these 3 pillars continue to have, and also, don't forget, it's something that all of our staff, all my colleagues at CDL, we are all used to this, right? I mean we've been living and breathing this for the last 8 years. So we felt that actually we actually ended up concluding that was a very apt to stick with this strategy, but refresh it and enhance it with further clarity and targets and outcomes.

So just going through it again, as you all know, it's the 3 pillars are growth, which talks about how we build our development pipeline as well as how we further expand our presence on the commercial side, the hospitality side, the living sector, basically, how do we invest and deploy capital, how do we grow CDL. And there, you will see some of the achievements we've done over the last 8 years. We garnered more than SGD 26 billion of residential sales and greater than 15,000 units. On the enhancement part, also very intuitive. Basically, it's how do we unlock value from our existing portfolio, whether it's through AEIs, which we've completed 5 major ones, including, obviously, the biggest one was Republic Plaza. We've done City Square Mall. We've done our other mall in Phuket, Jungceylon. These are all very big major AEIs, Palais Renaissance.

So we really pushed the envelope to get some of these major AEIs done. And post AEI, actually, all these assets have been performing very well. Rental reversions have been strong. The second part is obviously the redevelopments, right? And primarily, this would comprise of 2 major redevelopments that I would say have unlocked tremendous value for CDL. All of you are sitting in one of them right now, which is this Union Square mixed-use development, which comprises of the residences, the office and the retail, which you can see from the giant model over there. And of course, we also have Newport Plaza, which is an integrated development, single tower, and that one was the former Fuji Xerox Towers, right? So we are also redeveloping that. And that should TOP by next year.

So we're actually very excited to see that project come along nicely. We've just done a site visit recently. So progress has been really well. And lastly, obviously, we've also spent invested capital to renovate our hotels in order to strengthen their market positioning. And so that's enhancement. And the last part is transformation, right? Yes, in the past, I think for transformation, we had a lot of different descriptions attached to it, right? I mean -- but now I thought we'll just simplify transformation essentially is really our capital recycling as well as our fund management, right? I mean these are the 2 things that will really drive and transform the company as we go along.

So with that in mind, the original debt strategy, I mean, we then, as I said, went through a very long and arduous process about how we would -- what are the priorities that we want to get out of this, right? And that will help us in terms of setting our future targets. So taking into account all the feedback that came from the investor perceptions audit as well as, obviously, I mean, we have to make a lot of judgment calls in it as a management and as a Board. After all, I mean, I would like to think that we know our business better than others. We have come up with these 4 priorities. I think so one of them is a sharper strategic focus.

Secondly, we want to be more proactive when it comes to our portfolio management. Thirdly, there is a measurable implementation road map, right, that guides us, okay? And we set it at a 3-year time frame because we believe that, that is -- the right way to look at it is not too long and yet it's not too short as well, right, where it cages you in and you don't have much room to maneuver, okay? I don't want us to rush to meet annual fiscal year targets just for the sake of it when it would not be -- may not be in the best interest for CDL. And lastly, a clear path to enhance shareholders' return -- shareholder returns. So this way, I mean, you can clearly see, right, I mean, that if we execute on this, where will we end up and what will we look like 3 years from now.

So as you've all probably already gone through the whole deck, I mean, this is our GET+ road map. 3, 4, 5, 6, we didn't intentionally come up with these numbers, but they just kind of fell into this nice sequence. So as mentioned, 3 years because I think that's the right time frame to look at it. I don't really like giving out annual targets, even though the last 2 years or so, I've given out annual divestment targets. But I think it's better to look at it from a 3-year time frame, which allows us to plan better, not to leave money on the table and to really ensure that we monetize our assets properly. 4 sectors, which won't come as any surprise to all of you, residential, commercial. Commercial obviously includes office and retail, hospitality and the living sector, right, which includes what we call PRS, private rented sector, that term actually derives from the U.K. It's known as multifamily in other parts of the world.

So it's basically apartments for rent, right? So living sector would include PRS, would include student accommodation, would include retirement housing. So anything that's for rent, but for people to live in, okay? So living sector. And then we come to the 5, which is $5 billion of new investments, and we have to keep investing, right? I mean, so that we ensure that we maintain our growth and lastly, $6 billion of divestments, and that's our capital recycling initiative. So diving into more granularity. So on top of our GET strategy, the PLUS stands for the 4 targeted outcomes for the so-called minimum of 35% or more in terms of the dividend payout on reported PATMI, that one we had announced earlier. So that will come as no surprise to all of you. The other 3 are targets that we are very focused on. For the L, it's obviously leverage. We intend to hit 55% leverage or thereabouts net gearing by around 2029.

We do need some time to delever, and you will be able to track our progress as we move along. And as I've always said, right, I think any business needs a certain -- a decent amount of leverage in it in order to enhance returns, right, especially for a developer. I mean, much of our leverage comprises of development loans, right? So this is very important for us because developments are bread and butter. So I think if we are using pure cash and insufficient leverage, I don't think it's good for our business. When I first took over as CEO in 2018, our net gearing based on fair value of our investment properties was less than 10%. Actually, I think it was 7% exactly. So -- and I don't think that was an efficient use of our balance sheet. So now I think if we can get it down to 55% -- sorry, when we get it down to 55%, I think this will be a very healthy level for us.

Thirdly, we have U which is unlocked. And this is where we are projecting that we have greater than SGD 1 billion of divestment gains that will contribute to our PATMI profit after tax and minority interest. And lastly, we have scale, right? Currently, I'll go into this in more detail later, but we have about SGD 5 billion of AUM, and we intend to double this and scale it up to SGD 10 billion by being much more focused on our fund management efforts. In terms of the 4 sectors, I mentioned earlier that we will focus on residential, commercial, hospitality living. This just gives you a snapshot of where we are in currently and what are the priority markets that we intend to focus on, right? So for the $5 billion investments that we have mentioned of new investments, these are the 4 sectors. These are the 4 sectors that we're focusing on and the priority markets below as well. I think it's important to show you how we're focusing as well.

There's one market where we are planning to do an orderly exit of almost all of our presence there, except for hospitality, and that's Australia. I think it's not a market that's really worked out too well for us. We have -- we went in, in 2015. And in total, I think we have about 7 development projects there. and 2 more projects that we didn't develop, but we have exited one, and we're going to exit another. So it's not a market that's worked out too well for us, and we have been unable to build scale. So it's a market where I think for the residential and the commercial and the living, we intend to exit. Obviously, it needs to be in a managed time frame so that, again, we don't leave money on the table, right?

We ensure that we properly monetize the assets and do justice to them. But that's one key thing on the cards. In terms of residential, I think the focus will be on Singapore and China, and I'll go into this in more detail. Yes, I know when you put China out there as everyone spooked. But again, right, I mean, we have to look at our business in the longer term, right? And we -- I've always believed in the value of being a well-diversified company. It's not good just to be exposed and fully concentrated in one market, no matter how strong you are in that market.

Then there's commercial where Singapore will be a key focus for us in terms of expanding our commercial presence. Hospitality, we will be streamlining the hospitality portfolio. And in future, if we do make investments in this sector, it will primarily be in key gateway cities. And lastly, the living sector, we have a really great portfolio in Japan. For instance, we have 40 operational PRS assets, multifamily assets in Japan, doing really well for us. So there may be further expansion on that front. And of course, in Singapore, we have some new assets coming up. For instance, we have the SA2 component, which is a stand-alone 35-storey tower that's part of Zion Grand. Then Newport will also have a new service apartment component. So all these will form part of our living sector.

Okay. When it comes to capital deployment, this is the [ 5V ] I talked about. We are doing our best to give you more so-called transparency and detail. So we've broken it out by geography. And you roughly know, I think the sectors that we are looking at. And this is basically 60% in Singapore, then there is another 30% that is shared between China and Japan, and there's a 10% for others, okay? Now I want to emphasize as well, right, that the $5 billion of new investments is a capital allocation framework, right? It's not a rigid quarter. Do we have to spend the $5 billion? No. Could it change? Yes. I mean, for instance, right, if -- I mean, a lot of these new investments will be opportunity led, right, be it Singapore or overseas. I mean, in Singapore, no one can predict with a crystal ball how many land tenders you're going to win in a year, right? On some years, CDL wins 1. On some years, we may win 3 or 4. I mean, it really depends, right?

I mean, likewise, overseas, right, I mean, we must find the right opportunity, and it must meet our risk-adjusted returns targets and other criteria before we will invest, right, be it in China or in Japan, right? And if we don't find the right opportunity, I mean, then maybe Singapore might actually become a bigger part of this $5 billion. So again, it's a framework to guide us and it's our road map going forward, okay? We know where we are willing to put capital to and to what sort of extent, okay? We know where we don't want to put capital to, but it doesn't mean that this is rigid and we have to spend this $5 billion, right? And also, as I said, it will depend on how we do with the rest of our efforts, right? If our capital recycling goes a lot faster and stronger than we expect, then perhaps this number might even grow, I mean, bigger than that.

So in essence, this $5 billion of capital is -- capital that competes against other priorities for CDL, right, such as deleveraging, such as enhanced return to shareholders. So really, it's things that have to be measured, I mean, accordingly. Now I come to the part that obviously, a lot of people are focused on, which is the $6 billion of divestments, right? And I think many of you who know us know that we are pretty conservative when we put down our projections. So this is something that we intend to exceed, okay, the $6 billion of divestments over the next 3 years.

Now some of you may say, hey, in the last slide, when you talk about new investments, you broke it out by geography, right? I'll come this slide, then you're breaking it out by sector or, let's say, asset class. I mean, simple, I think, again, at the end of the day, we have to do what's right for CDL. And I don't want to cause or trigger unnecessary market speculation, right? I mean if I were to break this out by geography and let's say, I plug a number from the air, I have 40% divestment coming from Singapore. Everybody will start speculating, oh, what are they selling in Singapore? Is it this building? Is it that? Is it this office? So I don't want that, okay? That's not good for CDL, okay, and does not allow us to retain the flexibility as well in terms of our capital recycling.

So I thought it's better to break it out by asset class, basically by sector. But still, I think this should give you a lot more clarity and transparency than what any of you have previously gotten from CDL, right? At least now you know, okay? In terms of our divestments, 30% will come from hotels, 40% will come from commercial. We have 20% from legacy residential, right? So legacy residential and others, okay? So obviously, no prices are guessing this will include that $800 million portfolio we had talked about before, that U.K. so-called legacy portfolio, but it also includes other stuff, right?

I mean even in Singapore, I mean, we have some legacy residential that we need to get going when it comes to recycling the capital that's been trapped there for quite a while, right? So an example is I probably shouldn't be quoting specific projects. But for instance, [ Clyton ] right? I mean in Clyton, we still -- as of the time when we created this slide, we still had 61 units there. I mean, we since sold 2, okay? But so we have 59. But this is an example, right, of stuff that kind of lingers along until you make a firm decision that we want to monetize it.

So there's a lot of legacy residential that we can put to work as well, right? And then we have a small amount in living that we need to clear. So an example is like I mentioned earlier, we have a living project in Australia that we'd like to sell. So these are the things we do. And then in terms of the potential pathways that we could achieve this, one is our outright divestment and the second part, which ties in with our fund management ambitions is obviously the seed suitable assets into managed vehicles. Now this is a one-off, okay? So please don't expect or ask us to repeat this disclosure again in the future. This is something that I think we've certainly never done it before, and I'm not sure any other developer has ever done this before where we decided to disclose at least for the next 3 years, what is -- what are the cash inflows we're expecting from our property development sales, right?

These are existing projects. We're not forecasting ahead and thinking that we're going to buy some land somewhere we don't already own. So in terms of the projected cash inflows, as mentioned there, these comprise of 3 things, right? One is future cash collections from contracted sales for our Singapore projects. So as you know, I mean, we collect payment in installments based on percentage of completion by POC. So as it constructs, I mean, we collect more payments. So these are cash that we haven't collected from buyers, but sales that we inked already, right? And this is from 2027 till 2029. We also have 5 unlaunched projects in Singapore. So naturally, we've had to make some assumptions. And I believe these were conservative assumptions about sales velocity, about ASPs, average selling prices, about the construction duration and period. So we've had to make some of these assumptions. And it also includes our 2 projects in China with a particular emphasis on Xintiandi, right, which I'll talk about more on the ensuing slides.

So I think the reason we wanted to just show this slide as well is because and the number just coincidentally worked out to be greater than $6 billion is just to emphasize, right, that I think a lot of times, people have asked us, right, why aren't your residential sales, strata title sales, let's say, in Singapore and all that, I mean, why are they included in your divestment, right? And I always tell them it's because it's not the right way to look at it. I mean when you buy a piece of land, I still got to spend a lot of construction costs and everything else to build it, right? So if I were to include in divestments, that would, a, make our divestment figure balloon into a massive number; and b, it would not be apples-to-apples with investments, right, which is purely capital you put out to, let's say, buy a piece of land or something. So our divestment figure of $6 billion does not include our so-called our residential strata title sales. Other than when it's legacy, as I mentioned earlier, right? But for all of our existing ongoing projects, it does not.

So we thought it would be helpful to share with you what is our expected cash flow from these property development sales over that 3-year period. Okay. So now digging deeper into what I talked about earlier from an investment standpoint. In Singapore, obviously, that's going to be our core market. We've already mentioned 60% of our new investment of the $5 billion will be focused on Singapore, okay? And that's primarily going to be government land sales, collective sales, off-market transactions. We've done all of the above. We will also -- we could also potentially redevelop existing assets that may yield a residential component. Example is this very project, Union Square as well as Newport, I mean, which is formerly pure office. And we currently have a launch pipeline of 2,200 units. So I think we are very comfortable, especially after our land replenishment for Tanjong Rhu as well as for Peck Hay Road.

So I think we're very, very comfortable where we stand in terms of our current pipeline. But we continue to I think this is a moving target. And obviously, we have Lucerne Grand, our project in Lakeside Drive in Jurong West. We have that launching this Saturday. So let's see how that goes, okay? If that substantially depletes our launch pipeline, then time for us to replenish. And for China, I mean, again, right, this is going to be very much opportunity led despite all the noise about China. And yes, China's real estate market is not in good shape, okay? It's under tremendous pressure. But there are still opportunities to be had. I mean -- and the proof will be in the pudding, okay? Currently, a lot of our hopes and expectations ride on our Xintiandi project in Shanghai, okay? This is a 51%-49% JV. We're the 51%, and we're the lead development partner on it. And this is a project that went through great lengths, great extent of effort in order to secure this site, last remaining prime piece of land, last remaining prime parcel in the Xintiandi so-called boundary.

And we are very excited about this project. As mentioned earlier, I mean, there are high expectations on it. So let's see how it goes. I mean we are targeting to launch -- there are in total 145 residential units. Number may not sound like a lot, but the quantums are not going to be small. Of that, we have 70 high-rise condo units in a single tower. And then we have 75 villas. Villas are basically landed properties, [indiscernible]. So -- and as mentioned, the quantums are not small. I mean, for high-rise, all units are above 400 square meters, okay? So these are very luxury units. And for the landed properties, they range from 250 to 700 square meters. So these are going to be -- these are going to be real trophy assets and iconic assets.

And I'm looking forward to the launch, I mean, in December. I mean, if all goes well, I mean, I don't like to jump ahead and make predictions, but hopefully, we are launching the high-rise, okay, in December and then the landed next year, the land that will be in phases. But if all goes well, I hope to have a full sellout, I mean, of our high-rise when we launch it on -- hopefully on day 1 or launch weekend. Let's see how it goes. Again, China real estate market may be in very bad shape, but there are certain spots where it's still -- the market is still doing very well and demand is still very strong. And for key districts within Shanghai and ours is in Huangpu District, right, which is arguably one of the most desirable districts. Demand is still very strong for luxury residential.

So let's see how that goes. I mean, just to throw out another figure from our Xintiandi project. I mean, if eventually, when we're done selling all the residential, and this is just the residential component, obviously, we have hotel and retail on it as well. But just on the residential component, I think we are expecting no less than RMB 15 billion of sales value, okay?

So let's see how that goes. I mean the high-rise will be the first test on the cards coming up in December. Okay. In terms of accelerating our exit, we have the legacy, the U.K. legacy platform that we described that we are comprising of development sites and also completed residential projects. We have previously disclosed that's about roughly SGD 800 million. We've already disposed some from it previously. So this is what's left. And as mentioned, in Australia, we currently are still left with 2 development sites, and we intend to proceed ahead to clear out the rest of our development portfolio there because, as I said, I don't think we can build sufficient scale in this market.

In terms of commercial, as mentioned earlier, I think this is a key area of focus for us, especially in Singapore, where we intend to continue to unlock value through active asset management and also redevelopment. As you all know, we have other potential redevelopment opportunities that we can explore. We did through a collective sale buyback Delfi, which is next to Orchard Hotel and Claymore Connect. So there's a potential there to look at how that can all sync up under a strategic development incentive scheme.

I mean, there is a City House, our venerable heritage iconic office building in the CBD, which could qualify under the CBD incentive scheme. So there are various things that we are looking at. But as I mentioned in earlier briefings, don't forget, right, every time you embark on a major redevelopment of an existing asset, right, firstly, you lose all the rental income from that building, okay? And secondly, there's a lot of capital put forward towards building out, right? Or you take on massive amounts of development loans, right? I mean, to build out the project. So you don't want too many happening at the same time. Otherwise, it will just put lots of strain on us, right? And then my cheering will go up further and everybody will complain.

So I think it's about pacing it out. And currently, as I said, we have 2 major redevelopments going on, Union Square and Newport. And I think that's good, okay? I mean that's something that we're very comfortable with. So -- and below, you can see what's our existing NLA, net lettable area as well as the development pipeline that's coming up. In the U.K., you will know that we previously tried to list our 3 office properties. Well, back then, we only had 2 office properties, 125 Old Broad Street and Aldgate House, and we were teaming up with a third party to list a REIT in Singapore that was going to be comprised purely of U.K. office and commercial assets. But that REIT didn't materialize. Subsequently, we acquired St. Katharine Docks and it's a fantastic property, freehold as well. So we have 3 freehold office assets -- commercial assets, sorry, because some of them include retail components, 3 freehold commercial assets in the U.K., okay? And the value of that would be about GBP 1 billion.

So I need to take -- we've been taking a close look at how we should proceed ahead with this. And I think at the end of the day, we have to wait until market conditions are appropriate. So for now, it's all about monitoring these assets, ensuring that we continue to optimize their performance. But we will let you know when we decide to do a big initiative involving them. And as mentioned earlier, I think we intend to exit from the commercial side of Australia as well. Currently, we own this 50% direct stake in 330 Collins Street, and we are co-invested alongside a fund that we also have a stake in. We are also an LP in that fund. So this one, I think we need to ensure that it's an orderly exit so that, again, we obtain the right exit price for the building. So this is still a work in progress.

Moving on to hospitality. This is our global portfolio, a total of 165 hotels, which includes 2 hotels that are coming online in the next 12 months. And if you want more clarity, those 2 hotels are basically the Sunnyvale hotel that we -- that is a redevelopment of an old property that's in the U.S. and the Moxy Hotel, which is part of CanningHill Piers, our project there. So 165 hotels, close to 48,000 rooms. And we have -- if you include CDL Hospitality Trust as well as M&C New Zealand, we have 88 owned hotels. And then we have 67 franchise hotels that primarily deals with the Middle East and Africa region, where we have done a master franchising deal with a local party. So they are so-called franchising our brand and expanding it. So that's the 67 hotels. And then these -- the are MHR managed hotels. So these are hotels that we don't own, but we manage for third parties. So these are branded under our stable of brands like Millennium, all that. So these are 10 hotels.

Now to dive into -- and sorry, as shown on the right, we have put a tailored approach for each asset to maximize asset value. And it's because as we look through our entire portfolio, and trust me, we went through every single hotel. There is no one size fits all. Every asset requires a different action plan when it comes to monetizing value, be it optimizing it, be it improving the performance, repositioning it or divesting it. So if I go into the next slide, just focusing on the assets that we own and obviously, keeping in mind that CDLHT as well as MCHNZ are both listed entities on their own with their boards and management. So let's focus on the ones that CDL owns, okay, directly. So these are the 54 hotels, right? When I say directly, includes M&C, right, which is also our 100% wholly owned subsidiary. So posting on the 54 hotels, these hotels as of 31st December 2025, these hotels have a value of $8.6 billion, okay?

And looking at it, we decided that, okay, let's take some initial steps towards really trying to unlock value here. So we have set aside about $5 billion of assets that are actually doing very well, okay, could be doing better, but we are heavily focused on the operational side in order to ensure that these assets continue to perform better. And then we have the enhanced part, which is about 20% of portfolio. So these assets currently, there could be assets that are not in good shape, that are very worn down. So these assets need to have potentially more time, more capital spent on them, okay? And there's identifiable upside. And after we are done with enhancing, you can see that we put 2 arrows there, right, meaning that these assets could either go into the core bucket or they could go into the divest bucket. And then you have the last bucket, which is divest. And so that one is our confirmed. We want to divest $1.8 billion of currently mature noncore underperforming hospitality assets, which is the same description we use on the rest of our divestments, the other mature, noncore underperforming.

So -- and again, some people may complain and say, why not more? But as I said, right, it's a step at a time, right? I mean this is a portfolio. We've -- much of which we've held for several decades. And again, we don't want to leave money on the table. We want to ensure that we properly unlock value and we optimize value for each and every asset. So it really is a tailored approach. And as mentioned earlier, right, I mean, the alpha lines and enhanced as well, right, because once we enhance it, it could go either way. Then comes the living sector. This living sector is actually a sector that we have built up a lot of expertise in.

And yes, it is -- when we initially adventured into the living sector, it was meant also to form our seed assets for our fund management ambitions, and it still currently is the case. It's just that some of them we may have to nurture for a bit longer. We may have to stabilize over a period of time before we eventually can turn it into a fund management -- managed vehicle. But you can see there, basically, the 2 sectors where we have strong -- we have experienced strong results, and we want to continue growing our presence is Singapore and Japan.

In the U.K., yes, you can see there, we have 1,505 PRS units as well as 2,368 student accommodation beds or PBSA, as we call it. I mean that one, I mean, especially when interest rates were high, I mean, those came under pressure. So we're continuing to review the portfolio. In the meantime, we are obviously placing a lot of emphasis on the operational part of it, right? I mean, because these assets were really got to drive them perform better. So this is something where we need to enhance operations. And finally, as mentioned earlier, in Australia, we intend to exit.

Okay. Now we get on to the transformation part, right, which is our fund management, okay? And this is -- yes, we've been asked this before back in 2018. I said, okay, we'll set a target then in 5 years, we'll achieve USD 5 billion didn't happen, okay? And I've already addressed this at the recent half year results briefing where I took responsibility. I said that I think one of the problems is that we want to go into fund management, but yet we kind of like one foot in, one foot out. You know what, it's time for us to really be focused, right? I mean if this is going to become a core part of our business and a key pillar, okay, especially in terms of how we drive and accelerate our capital recycling, we need to make this a bigger part.

Currently, what is our SGD 5 billion of AUM, right? It comprises of CDL Hospitality Trust and IREIT Global. Those are the AUMs there, okay? And we also have invested in some funds where we are part of the so-called part of the GP or fund manager. So we've taken in a little bit there. In terms of rules, okay, I mean, I think this is how we will account for our AUM in the future, right? I mean we're very strict with ourselves. So I think if we are 50% or more of the fund manager or we derive 50% more of the asset management fees, we will count in the entire amount into our AUM, right? So like in the place of these 2 REITs, we're 100% of the manager for CDLHT, and we are 50% of the manager for IREIT Global. I mean, we're taking the whole AUM. And if we are less than 50% of the fund management company or take less than 50% of fees, we've just taken a proportionate amount of the AUM or the gross asset value.

So that's how we choose to look at it. And I think we need to further accelerate, especially on the private equity side. I think we need more private funds to augment. And we have some coming up in the pipeline, okay? I didn't mention this earlier, but some of you may say, a, your divestment efforts are going so slowly this year. Well, it's been a difficult year. Again, at our half year results briefing, I mentioned, right? I mean, look at what's happened throughout this year. It's been such a turbulent year. And we've had the Middle East crisis and that war is still going on today with retorts back and forth. So it's really not been an easy environment for us to get our divestments done. But very much like actually 2025, where you saw that in the back half, we got very, very active. I hope to see the same appear this year. We obviously have a lot of things that are in advanced stages of negotiations. So with any luck, hopefully, we'll be able to make some pleasant announcements that hopefully will surprise some of you in the remaining months of this year, especially under this fund management part.

So I look forward to unveiling more as we progress along. And we're going to have a dedicated platform, okay, for this fund management entity. Actually, we already have a wholly owned subsidiary. It's called CDL Real Estate Asset Managers. So for short -- I didn't come up with the name. So for short, it stands for CREAM. So we might actually use that entity because CREAM actually already has a capital market services license, a CMS license -- so -- but it really will be a dedicated platform. We will hire in a CEO and management team that will be accountable for the AUM growth, accountable for the P&L of that unit, accountable for the fee income and the investor outcomes, right?

So this will be a very dedicated and it will be governed by an investment committee at some stage. Will I be in investment committee? Maybe, maybe not. We will unveil more, as we progress throughout this year. But it is something we want to focus heavily on, right? And we believe that our so-called proprietary -- I mean, our inherent abilities as a developer, as an owner operator make us -- put us in a very advantageous position, okay, and gives us a proprietary pipeline by which we can approach this.

And so the right side is basically the target. We intend to double our AUM from the existing $5 billion to $10 billion within the next 3 years. Hopefully, if all goes well, hopefully, we get there sooner than 2029, okay? But again, let's see how things go. And as I mentioned before in previous briefings, right, I think it's -- we will never be fully asset-light, okay? That's not the DNA of CDL, okay? I mean we are an asset owner. We currently have $36 billion of assets on our balance sheet. We'll never be asset-light, but we do need to make part of our company more asset-light and more nimble, okay? And this will also help to drive growth in our return on equity, right, our ROE. So therefore, fund management is as well as strong capital recycling are the key ways for us to achieve this, right? So we need to ensure and so by doing fund management well, it will ensure greater capital efficiency. It will grow our recurring fee-related earnings as well as it will give us a higher ROE, as mentioned earlier.

And I'm not going to go into too much detail on this slide, but as what I mentioned earlier, we have over 60 years of experience. I mean, CDL has been around a long time, okay? And we built up deep knowledge and expertise in all of these domains, right? I mean, site acquisitions, property development from end to end, right? I mean, in terms of property sales and in terms of leasing, in terms of asset management, hospitality operations, I mean we have certainly honed our skills over the last few decades. And I would say we are very competent at what we do. And we've done many partnerships and JVs in the past. So I think this lends it up very well in order to give a boost to our fund management ambitions.

And again, this is more of a road map just showing you how it's going to be done, right? We can originate deals either by seeding our own assets from our portfolio into managed vehicles or new acquisitions, okay? So the extra AUM that's going to come doesn't necessarily all come from CDL's own portfolio. It may be new acquisitions that we manage on behalf of others. If we do go into a fund, so far, I've been very disciplined when we've been negotiating the current deals. I mean, I do not want us to be a substantial stack a part of the LP stack. So my personal preference is to ensure that we are 20% or less of -- in terms of the LP stack for any PE fund that we set up and manage, right? Because this then is a true divestment, right? I mean if you're going to be like 80% of the LP stack of the fund, then you're just selling to yourself actually.

So we can originate stuff, then we will syndicate it out to third-party capital. We will obviously earn fees and then we release capital that we can then redeploy into higher-yielding investments, high-yielding opportunities or pay dividends or pay down debt. So many uses for capital to be redeployed. This is something we just thought we'll touch on only because there were a lot of questions on this as well, especially when we announced it at our AGM earlier this year. This is basically the CDL performance share plan. And it's a share-based incentive framework that aligns senior management remuneration with long-term value creation for shareholders.

So if you look at the so-called performance conditions, right, I mean, I would say they're very much aligned with our new GET+ strategy as well as what we need to do, right, in order to maximize shareholder value. So this is total shareholder return, earnings per share, ROACE, return on average capital employed as well as greenhouse gas emissions reductions, right, which is, I think, our corporate social responsibility that we have to do. And so I feel that our interests are heavily aligned, especially for management.

So on the last slide, just to recap, although I've spoken at length about everything earlier. This is what I think we want to focus on the 3, 4, 5, 6; 3 years, 4 sectors, $5 billion of investments and $6 billion of divestments. And again, we want to put achievable numbers on there. So hopefully, especially with regards to divestment, we can surprise on the upside. And the plus part of the GET+ is the payout leverage unlock and scale.

Okay. Thank you very much. Sorry. I actually ran on for much longer than I should have. Don't worry, there's no so-called cutoff time for the Q&A. So please ask all the questions that you have. Thank you.

Right. Thank you so much, Sherman, for that very comprehensive well, okay. Commercial break while I see all your hands. Just give you a commercial break while we set the stage up for the Q&A. So while we prepare the stage and as we bring up the chairs, I mentioned that we are holding the corporate briefing here for the very first time at the Union Square and any of our sales gallery actually because we want you guys to have a look at the mixed-use development that's coming out. Some of you remember many years ago, you were here at this actual show fab where we're showing you CanningHill Piers. At that time, it was only a vision, yes. So if you look at it on the right-hand side, you actually see CanningHill Piers in its full glory that's going to come up, and it should be completing sometime end of this year. So can you visualize that?

On your left, sorry, on my right, yes, on your left and my right. But can you imagine what you see there eventually will come into fruition. So that's a very exciting thing. And I think this is why it's very fitting that we are discussing CDL's next chapter of value creation in the heart of an area that we have been actively shaping and rejuvenating the cityscape and in particular, the Singapore River. Yes. So maybe I think I will ask the management team to take their seats. I see all the hands very excited. Give me an opportunity to... okay I see all that hands.

Randy has requested to take 1, 4, 2.

Of course, yes. Yes please.

Okay. Great. Thank you, Randy.

Thank you. So let me allow me to introduce the management team. We are all laughing because the people on the webcast can't really tell, but I have a lot of hands here already. But let me just quickly introduce the management panel for those who are -- so in the center, we have Mr. Sherman Kwek, our Group CEO; on the right, Eik Sheng, our Group COO. Next to me is Mr. Chia Ngiang Hong, our Group General Manager; Ms. Yiong Yim Ming on my furthest left is our Group CFO. And well, not you, but somebody that you may have seen, but we've asked him to join on the panel is our CIO, Gerald Yong, okay?

So yes, I will start very shortly with the Q&A. So please stand by. My colleagues are around the room. And also for those who are joining us on webcast, you too can participate in this Q&A by tapping on the question tab on your screen.

So let's go. First, I shall go in the third row. Let's start with Mervin.

Mervin from JPMorgan. Congrats on the Strategic Review. I think it was quite great ambitious to set a 3-year time frame. You start taking the easy route out with 5 to 7 years, you want to call it. And I appreciate the details on the hotel business. A lot of investors thought that was a secret cow that you never touched. So congrats on that. Maybe can we start with the hotel segment? Obviously, 20% looking to enhance then 20% to divest. But can you give us some details in terms of the expected RevPAR increase, GOP margin improvement that you expect over that time period?

Second question I have in terms of assuming you achieve all this in 3 years' time, bottom line, what do you expect in terms of uplift and profitability for the whole group, potential dividend increase over the medium term from here. I think everybody wants to see what the bottom line if you are successful with all these initiatives.

Yes. Thanks Mervin for your question. I'll take the hotel piece. I think how we're looking at it is not so much on the RevPAR increase because we're weighing both heads, right? We are both the operator through our own brand, Millennium and Hotels Resorts, but we're also looking at more specifically at the hotel owner. So I think what we've done here is we've broken that down into different buckets. And we stated here that there is a core segment that we intend to keep. And the other 2 buckets, of course, to optimize, which may take a bit longer than the 3 years, depending on whether the redevelopment further enhancement works. And of course, the last bucket is the one that we're all focused on, which is the next 3 years, which hotels would be in the divestment list.

How we are looking at it is more in terms of -- we also shared our KPIs on this ROACE, right, which is returns on the capital employed. So by selling these hotels, we do expect that, that return will improve because some of these assets are -- I would say, it's a mix between mature assets that are already doing well and also some which are not pulling their weight. So I think we have identified these, and it will be a process to sell these. Unfortunately, I cannot name which hotels they are going to be, but we will focus on these hotels over the next 3 years.

Okay. Maybe I moved down.

I think Mervin also asked what kind of PATMI uplift we're expecting from this. So the hotel divestment pool is 2 parts. One, of course, is more the mature assets as well as, so to speak, not so performing assets. I would say net-net, they kind of offset each other in terms of our NOI contributions. I think overall -- I think overall-wise, I mean, if we look at $1.8 billion, clearly, I think we are streamlining. So with that, of course, I think we do expect decrease in central costs and of course, decrease in financing costs. So that kind of offsets us and you don't -- we are not really looking so much into investment into new hotels. So in terms of PATMI uplift, I would record it will improve that segment maybe by about 10%.

How about the overall do you see the profit?

Overall to the group, I would think in terms of quantum-wise, it should not be more than $10 million to $20 million.

Okay. Maybe Xuan.

This is Xuan from Goldman. I have 2 questions on execution. First is on time line. I guess some of these divestments are not new. So I assume that the team has been working on it for some time. Given that the strategic review is out, can we actually expect execution on the $6 billion to be more front-end loaded? And if not, what are the reasons? Second is on U.K. and Australia divestments. The market is quite challenging. So if this don't come into fruition by year 3, what is your plan B?

Xuan, thanks for that question. Look, I mean, this list of $6 billion, right? I mean, something we've come up with over the past few months. And obviously, I mean, there's been a lot of discussion and assets have moved around. And I would say that some of the deals may be front-loaded, but essentially, right, I mean, we took a 3-year time frame to it. So we looked at what we could reasonably divest within 3 years, right? So I wouldn't necessarily say that everything will be front-loaded. Yes, there may be some big wins or quick wins early on. But we do need 3 years, right? I mean, to divest $6 billion. I mean, unless you want me to just go on a fire sale and sell everything, which obviously nobody wants, right? It's not in the best interest for CDL shareholders.

So we will need time to get these divestments done. I do not believe, looking at the list that we have that there is any divestment we can't do within the next 3 years. So there won't be any left over that we can't do. And again, without revealing too much because obviously, I mean, we -- management still needs some flexibility here. I mean our actual divestment is bigger than $6 billion, okay? So sometimes there may be a case where one asset is taken out and another is put in. So I do not see us not meeting this $6 billion target. And some of these properties may not be easy to sell in the current environment. But you never know. I mean sometimes even in a difficult market, a certain -- an investor may have a different intention for the asset or they may want to redevelop it into another asset class, which is faring better.

So you'll be surprised, as you probably know already, even for our hotels, we've sold hotels away. I think at the briefing, I last talked about how we sold away our Millennium Hotel in Millennium Harvest House in Boulder, Colorado, right? I mean that asset was almost long forgotten about -- has been losing money, but someone wanted to convert it into student accommodation because it's -- and so yes, we made a very substantial gain selling that asset. I think we sold it for $85 million and made $80 million because on our books of $5 million. So this is an example of, yes, conditions may not be great in certain markets, but sales can take place as well. Now I mean, are we -- I mean, I obviously want to maximize the value we can obtain for each divestment. And so I will not sell at fire sale prices or prices that don't make any sense at all. But are we willing to take losses for certain parts of the portfolio like the U.K. legacy properties or that?

Possibly. I mean, I think we have to be realistic. I mean when we sold Ransomes Wharf, the previous slide that we announced in -- as part of the U.K. legacy platform, I mean, we took a small loss on that. I think it's about GBP 10 million, right, or thereabouts. So sometimes, you know what, I mean, you've got to take the good with the bad. And I think we are practical, but yet at the same time, we will not leave money on the table just so I can tell all of you, a, I met my target, right? That, I think, would not be fair to CDL.

Okay. Maybe Vijay, I'll take that first, and then I'll come back to the media. Let's just go with Vijay first.

Vijay from RHB. I have 3 questions. Maybe I'll take it one by one. First, in terms of the $6 billion divestment target, is that a baseline? Or is it a ceiling based on your portfolio, which you have assessed at this point of time? And how does this target compare with your FUM growth of $10 billion? Suppose you divest an asset to fund management, would you count it as you have met the target of $6 billion? And would you be growing your portfolio via REITs or private funds in the future?

Okay. So Vijay, your -- sorry, maybe I should take a question in time. Your first question was the $6 billion. Actually, I had answered that to Xuan when she asked earlier. The $6 billion is something that we see as very achievable. In fact, the overall divestment list that we have is bigger than that. So that, for me, is a floor. It's not a ceiling, okay? So it's a target I have to hit, we have to hit, okay? And hopefully, far exceed if we can, okay? But we will hit it. Your second question is, okay, if we were to seed some assets in the fund management, as mentioned earlier in my presentation, not all of the fund management's so-called doubling in AUM will come from our own assets, okay?

Some of them may be new acquisitions. And without revealing too much, wait and see because we've already been approached by certain parties that like what we have, our expertise, all that and willing to do fund structures with us on new acquisitions, right, stuff that neither party already owns, right? So we may be looking at that. So I would say that, yes, if we were to seed an asset into a fund vehicle, and as I mentioned earlier, we will not be holding too much equity in any fund that we invest in, preferably not more than 20%. So I will see that as a real divestment. We are divesting that just into a vehicle that preferably we will be managing. So that will count. But that will be a portion of the $6 billion only. It won't be all of it. So...

And maybe.

What was your third question, sorry?

How are you planning to grow your fund management? Is it like a REIT or a private fund, how you are looking at? And what does it mean for your existing REITs?

No, it just means that, I mean, we are going to set up -- we're going to really form a proper fund management entity, although we do have a fund vehicle, but we really want to hire, I think, a best-in-class team, okay, a CEO and his team who's going to really drive our fund management ambitions. We're going to ensure that we closely monitor and add further value to the REITs that we manage as well as set up potential private funds and when the capital market conditions are right, potential new REITs as well.

Quickly, my second and third question, in terms of commercial management -- on commercial growth in Singapore, the investments, would it be organic like Union Square Residences or you're looking at M&A? And lastly, maybe what's the Board views on the overall strategic review? Any comments from the Board as it is?

Yes. In terms of commercial expansion in Singapore, it could be both. It could be redevelopment of an existing asset. It could be acquisition of a new property. So we're always, I think, on the lookout for accretive deals that fit in with our strategy. And in terms of the Board views, I mean, this is -- this strategic review, I mean, was the outcome of it. I mean, and everything you see here today, I mean, was approved by our Board unanimously. So yes, this is something that management spend a lot of time putting this together. And as mentioned earlier, we are really grateful to our advisers, Teneo as well. I mean, many workshops and the process has lasted basically for much of this year. But yes, I mean, this is something that is Board approved. So thank you.

Okay. Let me just take one question from [indiscernible]. Maybe if you could pose your question, please.

I have a couple of questions for you today from Bloomberg. The first is you've broken down the $6 billion by asset class. How much of it will be sold to outside buyers and how much seeded into your own vehicles to grow AUM? And then also curious to know, CDL has fallen short of divestment targets before. What are the consequences if you miss the $6 billion? And a question for the Chairman. Does the Chairman want to lay out a succession plan? And can he commit to letting Chairman succeed him?

Okay. So the first question was about how much of that $6 billion will go into managed vehicles. Again, in my answer to Xuan and Vijay, I mean, we don't really disclose to that granularity. I think, again, we need to leave some flexibility for the team, right? I mean -- and we will shift and move according to market conditions. But part of that $6 billion will definitely make it into managed vehicles, okay? But as I mentioned, not all. How much of it, I mean, let's wait and see, okay? Anyway, you have the -- basically, what I presented today is like a report card, right, for management. So you have the next 3 years to monitor our performance and hold us accountable for what we've said today. And again, we'll be releasing periodic updates. Anyway, I mean, we do -- every half year, we do in-depth updates to the media and analysts. So you'll be able to see are we moving closer towards our targets? Are we executing in the right direction? So I think that's where we'll be measurable. The second part of your question, I'm sorry.

If you miss your target what happens?

Yes. divestment. Again, I think the problem with that is when you do annual divestment targets, right? Yes, last year, we were able to hit $2 billion, okay, and everyone rejoice. But it's not healthy. I think that annual divestment targets, then you'll be hard-pressed to hit it. And again, I didn't -- I had some sales in hand, but I didn't want to do them because I will be leaving money on the table. And those assets I felt were worth a lot more than the prices that we're getting. So that's why we give a 3-year timeframe. And as I mentioned earlier to Xuan and Vijay, this is a floor, not a ceiling. So this is the minimum that we're going to do over the next 3 years and fully confident that as a team, we're going to make it happen.

So -- and the last one, really, I apologize since our Chairman is not here, I cannot answer on his behalf about succession planning. But thank you for that question.

Actually, if I can just add on, the ExCo is remunerated both on STI as well as LTI. So the LTI slide was flashed earlier on with the 4 indicators for divestments is also part of our STI target. So yes, we will be penalized for not missing the divestments, if that's a question.

Okay. Let me go to the next row. Okay, I see. Maybe first, shall we go with Rachel?

I'm Rachel from Macquarie, thank you for giving such a detailed presentation. Just want to clarify a few points. In terms of your dividend payout, how should I think about it? I mean you showed that you have $1 billion of gains from potentially contribution to your PATMI and your dividend payout is more than 35%. So should I just easily assume your $1 billion and 35% will be paid out for dividend payout? Or would you then prioritize your leverage first before you pay out your dividends and just a bit of clarity on that.

My second question is really on the living sector. I remember you said that you wanted to divest some money of your living sector into the fund. But when I look at your $6 billion of divestment target, the living sector is only 5%. So just wondering, was that seeding included in that 5%. It seems a little bit small amount yes.

I'll do the dividend first. Dividend payout, I think we have put 35%. That's minimal. I know you guys are computing a $1 billion divestment gains and imputing that to $0.30. So I will just give a few parameters to that. Number one, $1 billion, I think, is conservative, if you ask me. Number two, if you look at divestment, I think we have already committed 35%. So in terms of divestment proceeds, which I'm sure will come in as one of the questions later. Of course, I think when we have divestment proceeds, our first priority will be to return debt. So of course, to return that, especially those in natural currency. So say I stop by U.K., of course, I retire my U.K. debt. And then after that, basically, because we do central treasury, everything goes to retiring net debt to start with. And no, we don't really need the divestment proceeds to pay dividends. So effectively, we always look at at least $1 billion EBITDA.

So I think the operating proceeds from that would pay for rejuvenation of our projects for financing costs as well as for dividends. So the proceeds is kind of the linked. So I think really, I think what drives us is the gains where we want to really dedicate that we will pay a minimum of 35% of PATMI.

Rachel, on your question for living sector, good catch, we have allocated 5% of the $6 billion that was worth about $300 million only, right, alluded to your question. Yes, we have a portfolio of $3.7 billion, including pipeline AUM, especially for some of the hot asset clusters in Japan. I think we mentioned before, there are a lot of interested parties. We may have done it earlier or during the 3 years. So that just hear from us in due course.

Yes. So Rachel, an answer to your question, it's not included in that living sector part of it.

Maybe just one follow-up in terms of the dividend payout because you put more than 35%, right? Under what circumstances would you think about paying out more than that 35% -- any parameter?

Well, that will depend on various factors, including, obviously, our financial performance for that fiscal year. You may remember that last year, for FY 2025, we paid out 40%, right, of PATMI. I think we had a strong tally of $2 billion of divestments. Our operations were doing well. So I think it really depends. And ultimately, this is subjected to the approval of our Board. So it's something that we review annually. But we certainly want to reward our shareholders for coming along with us on this ride as we grow, as we enhance, as we transform and with all the plus outcomes. So we certainly will try to reward them as much as possible.

Okay, Derek, and then I'll come back to the rest, Derek and then Brandon. Okay. All right. Derek, you.

I just had a few questions. First one is on your hotels, right? I think you mentioned that about $5 billion worth of hotels is well performing. I'm just wondering whether -- could you give us a bit more color and metric around what you mean by well performing, maybe ROACE or yields that you think to be fairly -- you are fairly happy about. Then at $1.8 billion that you would like to enhance, is it going to be still be hotels? Or is it going to be a different type of asset class? So this is my first question.

Second question is on investment. You mentioned about $5 billion that you would like to deploy. And a large part of that is Singapore. Can I assume that to be above what you typically do on a BAU basis? So for example, the group is participating in a lot of land tenders. So this $5 billion, is it on top of what you usually do? And could you give us a sense of where or what asset class is most interesting?

And last but not least, I'm just wondering whether as you achieve all your targets, where would we -- should we be pinning ROE or your return on assets in the medium term? That would be very helpful if you could give us some guidance.

Thanks, Derek. I'll take the hotel question. You're right, under the core portfolio, we have identified a couple of assets which are -- I would say they are very hard to replace, right? I mean they are assets that have generated very good income for us. If we were to sell them, I think naturally, we also divest for very high profits. But I think we're thinking of them in the long term that they will continue to appreciate and these are likely in very key locations that have further capital appreciation ahead of them as well.

So I think that's how we're looking at it. And of course, they generate a key part of our recurring income as well. For the enhancement bid, I would say it's also a mix. We have some assets which we identified -- after we've done the works, we retain as hotels. And in our slide, we've shown that it could go either way. It could either be then be divested or it could go back into our core portfolio. But there's also a mix of assets which are earmarked for redevelopment. And in those, it's, I guess, still open-ended as to what they may become. Some of them may still have a hotel component, but with other asset classes inside as well.

Okay. Then on your second question, which was -- sorry, what was your -- new investments, yes. So for new investments, the -- of the $5 billion we mentioned $3 billion would be focused on Singapore. That is business as usual. So that is us going for land tenders in Singapore. And so we anticipate deploying about $3 billion into new land tenders/, as I mentioned earlier, right, GLS, collective sales, off-market acquisitions. It will be a combination of these, but primarily will be GLS driven. And lastly, I think probably we're not in a position right now to give any projections on our ROE. I know we have done so in the past, and we said we strive to meet like our ROEs that are in the high single digits. But as things are still in flux and this is -- all this is work in progress, right? And we've got a lot to execute on over the next 3 years. Let's see where we get to before we assess again what is a reasonable and sustainable ROE that we can achieve for the longer term.

And if I can just add, I think we have said that recycling gains is part of our PATMI, right? And that goes forward because we are a real estate developer. So -- and for divestment, we have a long list of the $6 billion, of which it comes in a few buckets. Of course, some of the legacy ones where, of course, you expect huge profit margins. Some of the nonperforming ones, obviously, I think Sherman alluded that we could possibly be willing to share the loss. So these recycling gains also kind of have a big part to play in what the profit is for the year. It depends on what we recycled during the year. And so the ROE kind of is also cyclical frankly.

Moving forward Yew Kiang.

Yew Kiang from CITIC CLSA. First question, I hope it's not too sensitive. China investments into residential, do you have any existing new partners that you can share? And how will this strategy right, be different from the past strategies that you have employed? Are you putting in place any IRR targets or investment framework to give some kind of confidence to us? Second question is on the AUM target of $10 billion. I recall that previous years, you also had that situation. Unfortunately, there was a very high environment and sort of thwarted everything. But right now, it's a bit of a deja vu that we are also in this same kind of environment. So what lends the confidence and other than the fact that we have a new investment committee in place?

Yes. First part of the question on China. I mean, currently for our Xintiandi side, we are a JV with this Lianfa, which is part of a bigger group Lianfa, which is C&D. So a very, very big group, one of the largest SOEs in Xiamen, okay? We have worked extremely well with them. They have been great partners and given us lots of support, although we're the lead development manager, but we work closely with them. We tap on their expertise. In the past, I mean, most of our projects in China, be it Chongqing, be it Suzhou and even now also business park in Shenzhen, I mean, we are the sole developer there. I mean we are the sole shareholder and developer. But I think going forward, it will be more partnership driven. So I think we will see good partners that we work well with.

So already, even with our current partner, Lianfa, we have already talked about how -- I mean, if the proof will be in the pudding, right? I mean, if the Xintiandi project launches and sells well, I think we intend to do more partnerships together. After all it's very expensive to buy land in Shanghai right now, right? I mean one piece of land there can easily cost you SGD 2 billion and above, right? So I think we definitely want partnerships, okay? And we feel very comfortable, I think, with Lianfa. And of course, we have also partnered with other people in the past, right? In Chongqing, I mean, we have partnered with [ Vanke, Danke. ] Of course, they are now currently under a different set of pressures. So -- but it won't be difficult, I think, to find a good partner, especially one that is well capitalized.

So as I said, Lianfa is one of them. So it's something that we will continue to embrace in terms of this partnership model. And again, as I mentioned earlier, right, I mean, let's look to see how our Xintiandi project performs before we take a firmer view about what we're going to do in the future, right? Obviously, if the project doesn't sell well or tanks or something, then that's not going to be a lot of confidence for management and especially not to the Board to approve future investments, right? Yes, we do have -- we have very detailed targets internally, IRR, risk-adjusted returns, profit margins, hurdles, everything governing both local and all of our respective overseas jurisdictions. We don't disclose these targets, but we do hold ourselves closely to them.

Are these targets much higher than in the past, like maybe 5 years ago?

I would say so. I mean these targets have to be higher in the past because, obviously, we're trying to lift CDL's performance, okay? So the targets -- some of them have to be moderated a bit, okay? Like, for instance, in Singapore, right, if you're going to have very, very high expectations and targets, right, I may end up losing every GLS tender, right? So in some cases, targets have been moderated a little bit. In overseas cases, yes, because they are risk-adjusted returns. I mean, I think we have raised the bar for what would qualify for our investments. So again, the proof is in the pudding. Let's see what happens when we launch Xintiandi. And like as I said, in Australia, when things haven't worked out, we will take the bold move to exit from the development and the commercial side of the market. So I think these are things that we continue to monitor on a regular basis, and we are not -- we will not hesitate to make the right decision for the group.

Second question on the fund.

Your fund management, he was saying what gives us confidence now, if I can paraphrase those to the $10 billion.

Other than the fact that you have a new investment committee in place dedicated ones.

I mean, again, back then, when we embarked on this fund management thing, firstly, we had no -- we didn't really have that many so-called seed assets on the -- okay, sorry, let me rephrase that again. Back then, we had not gone into the living sector yet, right? Now by going to the living sector, and you've seen, right, we have built up -- we have $3.7 billion of AUM in the living sector. I would say that gives us a lot more seed opportunities than we previously had. So already, we have a big basket to draw from. Then also when we first embarked on the fund management, we back then didn't have any clear divestment plans or targets. We didn't know what we could sell and what we couldn't sell within the group. Now we're very clear, right? I mean we have a detailed list, right? I mean, internally that we refer to that we know because we deliberated over all these assets over the last like 9 months, right?

So we know what we want to sell. And therefore, we know what -- which assets would be suitable to be seeded into managed vehicles. So I would say that right now, we're in a much more advantageous position, okay? We can draw on CDL's existing balance sheet. We know exactly what we can -- what support we can play with. We can -- and we can also draw on the living sector, which we built up over the years into a very sizable portfolio. And as mentioned earlier on the slides, which you have also reiterated, we'll be setting up a dedicated management team to really drive this forward. So there will be full focus and accountability for getting us to our AUM targets and making our so-called fund management ambitions materialize.

Okay. I'm mindful of the time because we're already 1.5 hour in, but let me just quickly take one question from the virtual then I'll come to you, Thomas, okay? So we have [indiscernible] from Straits Times. 2 questions. Can we have some clarity on plans for M&C's leadership and growth? And the second question is, what are the hotels earmarked under the $1.8 billion divestment?

Okay. I'll take this question. So for M&C, earlier what I mentioned was they remain our operator, our own subsidiary that will drive the operator hat. And regardless of the ownership of these hotels, the intent of M&C is, of course, to continue to grow our Executive Chairman has also been very vocal about this, that we want to expand our footprint across globally as well. And obviously, we will continue to focus on key gateway city hotels, right? Those are really where we play to our strengths. We're not so much an island resort hotel, but we have several brands. I think going forward, we will focus on which are the hotel brands that we are strongest in. And in terms of the leadership, actually, over the last 15 months, we have hired a new CFO as well as a new Chief Commercial Officer.

So we do intend to raise the bar in terms of where we can execute. And to do that growth of management is not so easy, right? It's not tomorrow, I can go and get 100 contracts in China. We do know that there are several things we need to do internally to structure ourselves for that kind of growth. Traditionally, we've always been the owner operator, which is a very different. So I think that's something that we do have plans internally, how we will transform ourselves towards that kind of growth. As for the hotels earmarked, I think what I shared earlier is that I can't share anything on this list, but we do have a list internally, and we will need -- we will work on this list over the next 3 years.

Okay. Moving. Thomas, if you can take and then after that, Brandon, yes.

[ Thomas ] from [indiscernible]. I just have some broad question on your China project. So for Xintiandi, you acquired the land in 2024. Do you have any time line for the launch of this project? And do you have any fallback plan if the outcome is not that ideal? And also, I noticed that you will focus on upper tier cities in China. Do you have any like plan to expand to other cities in addition to your current portfolio?

Thomas, yes, we acquired -- well, we won the land tender in November 2024, but actually, by the time we took the land was like in sometime in early '25 last year, basically. So obviously, I mean, development projects, the most strenuous part is getting your permits, your planning permits, your construction permits, all that, right? So we've been working on that over the last 1 year plus. And as mentioned earlier, actually, we're planning to launch the high-rise residential tower in December this year, should make it by December. I mean, because we had to get the whole foundation, everything all done first, right, and get to ground zero, but should not be an issue. For the villas, because those will be progressively so-called attaining their so-called sales permit.

So those will be released in phases from -- starting from next year onwards. Do I have a fallback plan? No. I mean -- and the reason, no is because I'm still very confident and so is our JV partner, Lianfa, that we should see very strong sales. All you have to do is look at all the projects around us that have sold, okay? The most more recent one was [ Shreyon's ] Phase 6, right, [ Twilio, ] right? And you'll see, right? I mean, they also had record prices, full sellout kind of thing. So in 1 day, I think. So let's see what happens. I -- as I said, we'll know pretty soon in a couple of months.

What kind of buyers? We're expecting Shanghai, high net worth buyers. So you can't really take foreigners, obviously. And it's still difficult for non-Shanghainese who don't have a Shanghai Huoke to buy, right, because you need to have -- to be eligible to buy, you need to so-called have evidence of pay taxes for 1 year or 2 years. I mean there are various requirements. So primarily be high net worth Shanghainese that will buy. I mean, we kept it more broad. I mean, initially, we're going to say Tier 1 cities, but Tier 1 cities, which also now has become a murkier definition because Tier 1 cities is really just Shanghai, Beijing, Guangzhou and Shenzhen, right? But we made it upper tier, so just to keep it a bit more flexible. But for now, I mean, Shanghai is still our key focus. And because after we got this piece of land in Shanghai, I think we have built up a very strong report with the local government there.

So I think the Shanghai government has -- we're very grateful. They've constantly showed us a lot of projects, some of which are very attractive. And while the residential market has gone through a massive shakeout in China, right? But it's also worked well for us because, firstly, I mean, there are a lot less so-called cashed up developers, right, going for land tenders. Now it's really a lot of state-owned entities. I mean, state-owned enterprises, SOE developers and all that. A lot of privately held developers, as you know, are quite cash strapped. And so it's made the tender environment more palatable, especially if the quantums are big.

And secondly, as you know, China has also been slowly changing their rules. But in a way, these rules are becoming more like Singapore as well, right? I mean, so actually, it fits us very well because we have been living and developing in this manner for the last 6 decades, right, over 6 decades. So actually, it's an environment that suits us very well as well. So yes, I mean, actually, the market is something that we still keep a close eye on. But again, let's see how our existing Shanghai project performs, Xintiandi project performs before we make any further aspirations.

Okay. I'll just take Brandon.

Just 2 questions. When we look at this $1 billion divestment gains, right, and we compare that against this $6 billion of sales, the divestment premium seems pretty modest. Can we take it that a lot of the gains will be coming more from your hotels given that the U.K. assets are likely going to be divested either, like you said, at loss or even at carrying value? So that's the first question. The second question is related to hotel. I think earlier, we did speak about this OpCo/PropCo strategy. So during your analysis of your hotel portfolio, was there ever a possibility that you're looking to sort of divest the M&C brand? Or should we say now that you've given not to do that, should we expect some CapEx that you need to spend on improving your loyalty program and things like that for M&C.

Okay. I'll address your first question, Brandon, and then I'll leave [indiscernible] to address your second one. And very good questions, actually, I have to say. So no, you cannot assume that much of those divestment gains will come from hotels because, again, right, if you look at our divestment makeup, right, hotels are only 30% of it. So there's a lot coming from other sectors that will contribute the gains. Yes, I agree. I mean, $1 billion to you may not look like a very big number. But again, don't forget, as I mentioned earlier, I think we want to ensure that whatever numbers we put down are achievable. No point us overpromising and underdelivering. So -- and we did put the greater than $1 billion, right? So I'll leave it to your imagination. But I think we definitely want to ensure that whatever numbers we put up today to you, right, throughout the entire deck are achievable and it's strongly backed with concrete analysis, assets, everything behind it. So -- but yes, the gains are not going to just come purely or substantial or the bulk of it from hotels. I mean it will be quite spread out.

Yes. And on the second question about the OpCo-PropCo, that's indeed something that the Board and the management have been looking into as well. And what I shared earlier about the OpCo is that we are looking at it more from the structuring it such that there is an OpCo mindset because previously, it's kind of intermingled. So we can do really well in terms of asset returns. But actually, if you strip out just the OpCo metrics of it, actually, we may not be doing as well. So which is why we always wanted that owner operator hat, right? But I think there is an opportunity for us to improve how we are doing as an OpCo. And part of that is that we do need to scale up for OpCo to make sense, right?

And if our intent is to continue to manage our own assets, at least for the key ones, then we definitely have quite a bit to do. And that was what I was alluding to earlier about the restructuring as well. So we are looking at it from the operator lens. Whether we will exit or we will list OpCo, that is all things which are not being considered at this point in time. I think there's always something in the future if we want to talk about it. But as of right now, there's no such intent. We are looking at it firmly as an operator hat and how we can do better as an operator.

Okay. I'm very mindful of time. So let's just try and keep the questions very tight. Alex, why don't you go, and then I will take some on the back.

[ Alex from CNE. ] My question is for Mr. Sherman. Bigger picture sort of perspective, the strategic review promises sharper focus and greater accountability. What do you think shareholders should look at over the next 12 months to judge whether GET+ is actually delivering? And how can shareholders be confident that any potential individual leadership differences don't get in the way of these institution level priorities we've seen set aside today?

I was thinking about your second question, and I forgot the first one. Memory is obviously not...

A bit linked. The first one is just the idea of the sharper focus and greater accountability. And what should shareholders look at in the next 12 months, say, to judge whether there is delivery on these?

Thanks, Alex. So as mentioned earlier, I think everything we put up today serves as a report card for us as well, right? I mean we -- and we think that's fair, okay? I mean all of our investors and shareholders and analysts, I mean, should have a way to measure whether we're progressing in the right direction, whether we're on track to meet our targets. And every -- anyway, every half year, we make periodic updates and we make announcements as and when we see deals, whether it's acquisition or divestment. So I think as we go along and especially at every full year, you get a lot of detail, right, from us and from our annual report, you'll be able to see whether we are moving in the right direction, whether we're executing on our strategy, whether we're hitting the targets that we put up. And of course, the GET+, the plus outcomes are all there, too. And some of those outcomes will so-called translate directly into maximizing shareholder value and enhancing shareholder returns. So I think let's see how we progress along there, and that will stand as our so-called assessment and report card year in, year out.

And on the second part, yes, I mean, what happened last year was unfortunate, but it's something that we hope not to ever see happen again. And right now, as I mentioned earlier, I mean, the Board is united on the strategic review. I mean, they approved everything I've shown you today. I mean -- and this is something that the Board and management are aligned on. So I think we want to go forth and really focus on execution, as I quoted in the press release, as I made a quote in the press release, I mean, this is something where we really have to ensure we have unwavering focus on the execution because it's all fine and good for us to put up this whole thing up there. And assuming all of you are happy with it, I mean -- or most of you are reasonably pleased with it. I mean the next part is even harder, right? We have to ensure that we execute on it and we deliver everything that we said we're going to deliver. And I'm confident we will, but let's let time be the judge. So thank you.

Okay. I'm going to take [indiscernible], and then I'm just going to give the last question to move later.

[indiscernible] from BofA. Just one quick question. In terms of scaling the AUM, how should we look at the REIT platform given that it is a little bit hard to scale with the lack of the scale as well as maybe the cost of capital. So wondering if it's going to be largely private platform led there.

Thank you, [indiscernible]. Actually, for -- REITs are a very good vehicle to embrace as well, right? I mean they are the public format as compared to private funds. And yes, REITs have more constraints. Obviously, I mean, REITs strive to do accretive deals. So -- and they may be constrained on the leverage part as well. Most REITs try not to go above 45%, at least for S REITs. So yes, I mean, different from private funds, but REITs also play an important part of the capital puzzle. And we certainly want to see how we can further strengthen the 2 REITs that we manage and co-manage. I mean -- and we want to see how we can be more active sponsors is something I mentioned before, right? I mean, so like for CDL Hospitality Trust, how we can be more active sponsors to them. So it's -- some of the divestments may actually be very suitable for the REIT as well.

So it's something that we will explore. But in essence, I think we want to grow these 2 REITs. I mean, since we have this valuable opportunity to manage the 2 REITs, right? I mean I think there's a lot more growth that can come out from the 2 REITs. Maybe the REITs also do need some adjustment internally. Like, for instance, IREIT is going through a fairly rough time right now, especially with their concentrated exposure in commercial assets in Germany and Spain and retail assets in France. So I mean, there's some portfolio adjustments going on. But ultimately, I mean, we want to work with the management team there to ensure that these REITs come out stronger and more resilient than ever. And again, it does not preclude new REITs that we could potentially do, okay? But yes, we also need to accelerate the private funds part. We have been -- we haven't really done any private funds in the past. So that aspect, I think we really need to get going at a quicker pace.

Okay. Thanks. Wilson?

Wilson from Jefferies. Just following on Yew Kiang's question on fund management. Sherman, I think you mentioned you want the fund management to be a core key pillar of the business. What proportion of earnings would you envision this segment to contribute to the group? And I guess, near-term major milestones to watch for this. I think you mentioned potentially a new private fund launch by end of the year as well as maybe a new fund management CEO appointment by the end of the year. Are those things that we will be looking to watch for in terms of near-term milestones.

Yes. I think a very good question, Wilson. A little bit premature for me right now to comment on how much contribution I can expect from the fund management. Obviously, we have some internal projections, but I think rather not share it at this moment. Needless to say, I mean, I think we certainly need to scale up the AUM, hopefully exceed $10 billion before 2029. And we need to keep a close eye on the funds as well -- on the fees as well. Currently, I would say, for REITs, I mean, you are probably looking at about 30 -- anywhere between 30 to 45 basis points on gross asset value as management fees. And for private funds, usually, it's done off committed equity. It's about maybe 80 bps for core all the way up to 150 bps for opportunistic. But we will have to strike a balance. And in fact, our 2 REITs right now are around there as well, they're between 40 to 50 bps of AUM or GAV. So I think we have ensured that as we move forward, the right fee structure is put in place, and this gradually starts becoming a stronger part of our recurring income.

Okay. I'm going to have to bring this to a close. So Mervin, if you could pose your last question, please.

Maybe 2, if I may. Just in terms of the $6 billion to be divested, what's the current PATMI contribution? And then also for the hotels, the 20% that you want to enhance, what's the CapEx related to that? And I presume that's the proceeds will be used from the divestment to fund that. And then the final question for me to Sherman. Thanks for the presentation, but you are independently financially well off. You don't need this job. But what keeps you like the fire in the belly to be working so hard coming out these plans, receiving all the big bets from investors from the press.

Mervin, I hope that's not your sort way of asking me to go in an early retirement, right?

So I can see the fire in the belly, the passion. What's keeping you so motivated to work so hard. If you can just share -- I mean people want to know why you -- what's motivating you and what they can deliver, obviously?

Okay. Thank you, Mervin. Most interesting question I certainly received in my career and on stage as well in front of media and analysts. Again, I think I've always been driven by the fact that I want to perpetuate the legacy of our family legacy, especially my grandfather who's had a very deep and meaningful influence on me when I was growing up. So you can see that even in Republic Plaza, we have -- when I did the AEI for RP, I've done a whole area on the ground floor called the Founders' Gallery, right, which tells you about his life, how he's built up the Hong Leong Group as well as correspondingly CDL, which he took over. And the principles and beliefs that he embodies and the values that he embodies. So that's been a key driving factor for me. And obviously, I mean, for all of us, I mean, men and women, we are in a certain part driven by achievement as well. I mean we want to have a certain career achievement. Does the career define us all? No, at least not anymore for me.

Last time I used to think career was everything in life and it's the be it and all. But after I think you start having family and kids, I mean, you realize that there are other aspects to life as well. So while I'm still unable to strike a work-life balance, okay, very bad at that. But I would say that certainly, this is important to me. We set out on this journey before. And again, this is very -- something that has a lot of meaning for me deeply, especially because of my grandfather's legacy. So this is something that I want to see through. Maybe at some point, I will take your advice and consider early retirement. Unfortunately, I'm not. I trust when you deliver people want you to stay in 3 years' time.

Unfortunately, I'm not -- I can't live up to the image that you painted. I'm not rolling and go and flush with cash and flying on private jets and yachts. No, I don't have that lifestyle and don't have the financial means to back that up. But yes, it's passion for what we do. It's the mission that we all embody with us, and I'm sure [ ES ] is the same as well, being a family member. And even Mr. Eik Sheng, Gerald, they've all been with the group for a long time. I shall mention how long. Otherwise, they will scold me and say, "Hey, you reveal our age, but they've all been with the group for a long time, okay? And we all care deeply and passionately about CDL, right? I mean it's a company that we've come to regard as our house, as our family. Our colleagues have become almost like family members to us. So yes, we only want to see the best happen at CDL. We want to act in the best interest of all shareholders and ensure that we continue to maximize value and returns for everyone.

I'll leave the other questions, which arguably are as difficult as mine to and Eik Sheng and Yim Ming.

Just ended there. I think on the hotel, on the enhancement bid, the CapEx, we are, of course, still working on those. So some of them are redevelopments as well. So the planning is still ongoing. So I can't really give you an answer to those. But except we do forecast it will take longer than 3 years anyway. So once we have more clarity, of course, we can try and share more details on those.

Last question for CapEx as well, I think we usually make it a practice, a good practice that they fund their CapEx out of the operating cash flow. So very frankly, that is not so big a concern, unless, of course, it's a big overhaul that then we're looking at refinancing CapEx. But usually, it can be financed out of the free cash flows for hotel. Then as to the PATMI for the $6 billion, I know it draws a lot of attention, right? But really, if you look at it, if you cannot really look at CDR in a very linear pattern. So when I really look at the pool of assets that we have available for divestment, of which we selected a $6 billion, which we are very confident of. So it comprises many, many things, right? I mean it can comprise like [indiscernible] that's currently not -- is still in building stage. It can obviously comprise the U.K. legacy, which we know are probably at a slight loss making. And of course, it can comprise the hotel $1.8 billion portfolio, which has an NOI of, I mentioned earlier, thereabouts about $30 million, $40 million.

So it cannot really be linear across this way. So giving the PATMI -- also what I'm trying to say is that the $1 billion divestments that we have definitely to me very is conservative. But the PATMI from the $6 billion divestment, that number really does not make sense because some of them are from assets that's like land banks, like.

Can we say it's minimal and actually to be EPS accretive because you're paying down debt, which is more expensive than the earnings contribution? Can we say that?

Yes, that's a fair comment to say, yes.

Anyway, we look forward to the continued passion. And I hope in 3 years' time, everyone -- everybody wants you to stay on.

So on that note, right, Mervin, the best is yet to be. So ladies and gentlemen, we have indeed had a very extensive conversation this morning. So we have come to the end of the briefing. I would like to thank all of you for your patience. Thank you to all the webcast audience who have joined us. Refreshments are available. Please stay back. And for those who want to tour our show flat, I have my colleagues at the back of the room who are more than happy to bring you around. So on that note, stay watching on this day. Thank you, ladies and gentlemen, have a good day.

Good morning, ladies and gentlemen, friends from the media, analysts, bankers, investors and fellow CDL colleagues.

My name is Belinda, and I'm the Head of Investor Relations and Corporate Communications at CDL. On behalf of the CDL management, welcome to CDL's briefing on its unaudited financial results for half year ended 30 June, 2026.

Now, this is a hybrid briefing format, with both in-person here at the M Hotel Singapore and those joining us virtually on the live webcast. Thank you for being here. I know it's a very busy financial reporting season and to see so many in this room brings us much joy. So, thank you all for being here.

So for today's briefing, in line with CDL's commitment to environmental sustainability, we will not be providing printed materials. Instead, please scan the QR code on the screen to download several documents that were uploaded on SGXNet this morning. They include a copy of the detailed financial results statement, a press release summarizing some of the key highlights of our performance, a presentation deck that the management will be using in a very short while. Now, for our guests that are joining us virtually, you would similarly be able to download these documents, which are available on the CDL website.

I would like to introduce you to the CDL management panel. In the center, we have Mr. Kwek Leng Beng, our Executive Chairman; and followed by our Exco Members. On his right, Mr. Sherman Kwek, Group CEO; on his left, Mr. Kwek Eik Sheng, Group Chief Operating Officer; then followed by Mr. Chia Ngiang Hong, Group General Manager; and nearest to me, Ms. Yiong Yim Ming, Group Chief Financial Officer.

Now the format today, briefing is in 2 parts. We will kick off with a presentation of some of the key highlights of our performance, followed later by a Q&A session.

So without further ado, I would like to invite Mr. Sherman Kwek, CDL Group CEO, to kick start the presentation. Mr. Kwek, please?

Hi. Good morning, everyone. Thank you, Belinda, for the introduction, and thank you for making time to come over.

As Belinda has mentioned, I know it's a busy day for all of you with several earnings announcements coming out today as well. Happy to take you through our performance highlights for the first half. Yim Ming will then take you through financial highlights, the ops review for your perusal. And if you have any questions, let us know.

Performance highlights, really happy to be here to share some strong results for our first half. You will see that our revenue is up over -- slightly over 60%, and our PATMI is up more than 3x or 230%. Primarily, this has been driven by our strong Singapore Property Development segment. So, we have several projects that really did well for us and we recognized revenue on -- and they were built at a faster pace. So, revenue and profit recognition came in faster as well.

Obviously, one is Lumina Grand, as we've mentioned up there, that's an EC in Bukit Batok West Avenue 5. So, that has been completed. And therefore, under the prevailing rules, we recognize full revenue and profit. Other contributors that were strong were Newport. Newport Residences was launched at the beginning of this year and is now over 80% sold. And because of that project, as you know, we delayed the launch because we were going to launch right as we're going to launch the 60% ABSD on foreigners was announced, right? So, we held back on that. And as a result, the launch is delayed by quite a while. So because of that, the building completion has gone on much faster. Therefore, we are also recognizing good revenue from there.

And lastly, many of our other Singapore projects continue to have steady sales. Norwood Grand, we had a bit of a slow start with Union Square Residences, which is quite a pity because it's in such a beautiful mixed-use development and in a really great fringe CBD location, but glad to see that sales have really started to pick up as well over the last couple of months. And you'll see that across the board, all of our core operating segments have shown strong operating results.

As I mentioned earlier, Newport Residences was a great launch for us. And then we've had a very resilient performance with so-called the commercial portfolio, comprising office and retail. We're still doing really well and trading above actually the market average. And the U.K. commercial has held steady, too.

On the residential market in Singapore, I think this year, we've continued to see a good, stable price growth. So far, I think year-to-date, it's about 1.4% according to the URA private residential price index. And the volume has been about slightly over 4,000 units year-to-date, about 4,100. Are we going to hit the 10,000 that the market did last year? May not. I think it's -- and primarily, it's because there's been less launches in the first half this year. So, let's see how the back half stacks up. But I think we should get within the range of maybe 8,000 to 10,000 by the time we end this year. But yes -- so it's been a really good start for us and actually underpinning our entire first half has been a strong Singapore property development revenue and profit.

Noticeably absent from this, our capital recycling gains. We have certainly pushed hard for the first half this year. But I think with a lot of different factors such as the Middle East conflict, which continues to be quite prolonged and rages on, as well as the fact that we've seen a lot of turbulence here and there. I mean, the U.K. went through their own political upheaval with the change of government and all that. So, I think that has dampened a bit of investor optimism in the first half. But I see that momentum coming back now. So, our divestments will probably be more weighted on the second half.

I'm not sure whether they will complete in the second half or into next year. But certainly, there are several in the pipeline, and we hope to be able to share more exciting news on that. But as mentioned at previous analyst and media briefings, I mean, capital recycling is going to be a core part of our DNA and our business as usual in future. So, we really got to get that ramped up, and that will really provide a stronger base for our results.

Going into the next slide, we have our NAV and shareholder returns. So, you can see that predominantly, I think NAV and RNAV are pretty stable. This year, we declared an interim dividend of $0.06, which is double what we declared for the half year of last year. And obviously, we have made a commitment to the market that we will hit a minimum of 35% dividend payout. So, we're leaving it more for the full year. And share price performance, and this was as of year-to-date as of 30th June, but obviously, we are all very pleased to see the rally today.

Our segment analysis and if you look at the fair value, I mean, our assets have ticked up slightly from $35 billion to $36 billion. And business segments or the IP, DP, there are some changes in terms of geography as well. But predominantly, I think that really fluctuates depending on how much DP we have at any one point in time. You will notice that this year, we haven't made any significant investments. Neither, as I mentioned earlier, have we made any significant -- sorry, we haven't made any significant divestments. And in terms of investments, we have mainly made 2, and those are the 2 GLS sites that we acquired in Singapore. And one is Tanjong Rhu Road and the other is Peck Hay, which is Scotts Road based of CanningHill area. So, these are -- this is the completed project, Lumina Grand at Bukit Batok West Avenue 5, I mentioned.

Norwood Grand, 92% sold and just TOP-ed earlier this month, so about 2 weeks ago. And then our upcoming project completions for the rest of this year, we have CanningHill Piers, our JV with CapitaLand, as well as the Myst and both are substantially sold. As mentioned earlier, the only investments we made this year were the 2 GLS sites in Singapore and added together with the rest of our land bank, I think we have a healthy launch pipeline of 2,200. We're comfortable with this level, and that positions us well going forward. And we obviously look forward to unveiling Lucerne Grand. That's in Lakeside Drive in -- out in Jurong West and will have magnificent views. And I really hope the project will be well received.

We're doing just a little bit of marketing here for the project. So, you can see it's 5 towers, 17 stories each. And we think we designed it well, and it's directly connected to the Lakeside MRT station. So, there's always a very important amenity that buyers look at nowadays. So, please spread the word in October when we launch this, hopefully, this will garner a strong reception.

This just shows you a little bit about our 2 projects that we are -- legacy assets that we are redeveloping, which all of you are very familiar with now. One is Newport Plaza, which is the name of the whole development, which was the former Fuji Xerox Towers. And then the other is Union Square, which is the former Central Mall, Central Square that whole development there. So it's coming along nicely, both of them. And as I mentioned earlier, Union Square Residences, the sales have also caught up really well. And we're really excited.

The office market continues to remain strong. So, when these 2 office assets are ready, so for Newport Tower, it will be in second half of next year. That's the office component of Newport Plaza. That will be second half of next year. So, that will add about 220,000 square feet of NLA to our portfolio. And the Union Square will be sometime in 2029, and that will be 250,000 square feet. And obviously, pre-leasing efforts are strongly underway and very encouraged so far by the feedback.

And our hotel portfolio has also bounced back really well, and we've taken the opportunity to continue to revamp some of our assets. So, you can see that the Millennium Knightsbridge Hotel, I mean, renovations are underway, Kings Hotel as well. And then we continue to build out the M Social Hotel in Sunnyvale that has a targeted completion towards the end of this year. And we've also finished the renovation for this Millennium Premier Hotel in Times Square, which is part of the Broadway Hotel. So it's a smaller component of it, a more premier upscale component of it. So, that's just been completed in June. So, we're excited to see that. So far, some people I know have stayed there already, and they're really pleased with it. So, great that we're refreshing our portfolio as we move along.

Just a bit about our industry and sustainability recognitions. And last slide before I hand over to Yim Ming. Obviously, the thing on everyone's mind is when is your strategic review coming out? I know we've taken quite a while on it. We wanted to put -- we wanted to really spend enough time to make sure that we do a thorough review and ensure that we have a proper road map, how we're going to implement the whole strategic -- the whole refreshed strategy and how we're going to get there and ensure that every number that we share with you towards the end of September is properly backed up by how we're going to get there, what's the asset makeup within it. So, very excited to share that with you.

It's more or less complete. I mean, the strategic review got approved by -- final approval by the Board yesterday, but we just need to tweak a few more things and, of course, create some nice pretty infographics to go with it. So, we thought we'll just give ourselves a little bit more time. But yes, suffice to say, it's really -- we're really excited and eager to share this with you at the end of September. So, all good to go here.

Next up, I'll pass it to Yim Ming for the financial highlights. Thank you.

Thank you, Sherman. Good morning, ladies and gentlemen.

I'll start off with a segmental analysis. So, this revenue growth across all segments, increase of 61% in first half of '26. EBITDA stands strong at $694 million, increase of 25.9%. I'm very pleased to report that PBT and PATMI has both roughly tripled, rising to $404 million and $302 million, respectively.

So, let us delve a little bit deeper into each metric. For revenue, the group posted revenue of $2.7 billion for first half of '26, up from $1.7 billion in first half of '25. So the property development segment remained the largest contributor, with revenue surging 167%. So as Sherman has mentioned the various contributors, and we all know that revenue from Singapore development projects are recognized based on the percentage of completion method. The strong construction progress across these projects also supported the accelerated recognition of revenue during this period. So, kudos to our project team for their excellent execution and for maintaining strong momentum across our projects.

For hotels, the hotel segment delivered a 6.4% increase in revenue, supported by a 4.9% growth in RevPAR. RevPAR growth was recorded across all regions with Singapore up 4%, U.S. up 10% and Australasia up a strong 14%. The strong performance in Australasia was driven by New Zealand hotels, which recorded improvements in both occupancy and room rates. This was partially offset by rest of Asia, where RevPAR were impacted by softer performance in KL, Jakarta and Manila.

Hotel revenue was also boosted by the acquisition of Holiday Inn London, Kensington High Street, which we always call HIK because the name is pretty long. So, we acquired the hotel in December 2025. Hotel has performed strongly since acquisition, achieving an impressive 96% occupancy and is now the largest contributor in the U.K. portfolio. So overall, for hotel, the segment performance reflects broad-based RevPAR growth across our key segments, together with strong contribution from our newly acquired hotel.

Moving on to investment properties. They also delivered a 3.2% increase in revenue, notwithstanding divestments of the Bespoke Hotel Osaka Shinsaibashi and 1250 Lakeside in Sunnyvale last year. So the growth was driven by higher contributions from our U.K. commercial properties, Jungceylon, our mall in Phuket, as well as the living sector in Singapore and the U.K. These stronger contributions more than offset the revenue from the divested assets, once again demonstrating the resilience and continued growth of our investment portfolio.

Now, we move on to EBITDA. EBITDA stood at $694 million, a strong growth of 26% year-on-year. So, as I mentioned this before, EBITDA is an important measure of the group. We look at it for cash generation capability, as well as a key metric that we monitor closely. Our target is always an annual EBITDA of $1 billion, which supports healthy cash generation. So excluding capital recycling gains, all 3 core segments recorded higher EBITDA. So the strong EBITDA was again underpinned by our property development segment, supported by income visibility from our successfully launched projects.

You can see property development EBITDA, they doubled year-on-year. And other than the projects that we mentioned in revenue earlier, JV projects also contributed to this EBITDA. This included The Orie, CanningHill Piers and Kassia. For hotel operations, EBITDA increased by a strong 27% year-on-year. They are supported by higher revenues as well as disciplined cost management.

GOP margin remained resilient at 30%, broadly in line with first half of '25. In key markets of Singapore and London, GOP margins remained particularly strong at 35% and 42%, respectively. As mentioned earlier, New Zealand had good revenue improvement, and this flow along to GOP margins. Australasia GOP margins also expanded from 33% to 35%. So the combination of revenue growth, resilient margins and disciplined cost management drove this hotel operations' EBITDA.

For IP, which is investment properties, EBITDA was slightly lower in first half '26 due to lower capital recycling gains. Just a refresher, for first half of '26, we have recycled Quayside Isle and several strata titles -- strata units in Fortune Centre vis-a-vis '25, where we had a huge recycling gain of City Industrial Building. So importantly, excluding capital recycling gains, the EBITDA contribution was still broadly comparable year-on-year. This once again reflects the underlying performance of our commercial properties as well as our living sector.

I'll move on to PBT. So it improved 189%. So, one interesting fact point is that in property development, takes up 57% of revenue, but 84% of PBT. So the PBT variations are largely -- explanations are largely similar to EBITDA, but it's impacted, as we know, by financing and depre. So, net finance costs decreased significantly by 47% to $145 million. This is supported by an 11% reduction in net interest expense as well as a favorable swing in exchange. The group recorded an exchange gain of $38 million in first half '26 versus an exchange loss of $63 million in first half of '25. I want to highlight that these exchange differences are unrealized translation differences from intercompany loans. They do not represent underlying operating cash flows.

For property development, while the segment delivered a stellar performance, I also want to reiterate that the profits from this segment are inherently lumpy. As we all know, it's dependent whether there's key project milestones, whether there's an EC, there's a handover for overseas, as well as the progress of project completions.

Hotel operations, a significant turnaround. They reversed from a loss of SGD 84 million in first half of '25 to a profit of SGD 42 million in first half of '26. This improvement was largely driven by 2 things. One is the newly acquired HIK, and two is a favorable exchange position from exchange loss in '25 to a gain in '26. This is largely from intercompany loans. So for investment properties, PBT decreased also due to lower capital recycling gains. I sound like a broken record, but it's worth reiterating that CDL accounts for our investment properties at costs. So, what you see in these financial statements has no fair value gains. Instead, they record a depreciation of about $68 million.

Just moving on to capital management. So, we continue to maintain very strong and robust financial fundamentals with a well-balanced debt maturity profile. Gearing stood at 75%, is an increase of 4% over 31 December, '25, largely attributable to the acquisition of the 2 GLS that we have acquired this year as well as $144 million of CapEx on our investment properties, largely for Newport and Union Square.

So looking ahead, we expect healthy cash flows from 4 projects that will achieve TOP this year. Lumina Grand achieved TOP in April, Norwood in August, and we're expecting The Myst as well as CanningHill Piers to TOP in 2026, and these project completions will support the cash generation.

Liquidity position has continued to be very strong, $2 billion of cash, $4.9 billion of committed undrawn credit facilities. So, we have definitely sufficient financial headroom. For all the other metrics, I think interest -- average interest has dropped and then it's now at 3.4%. I know one of the favorite question is what -- where do we see where we end the year at? We have articulated previously, we hope to end the year no higher than 3.5%. So to all the bankers in the room, please help us achieve this objective.

So as shown, the last one is just basically on hedging. So, we don't do any speculative. So, you can see our loans match with the assets that we have, and we have an overall natural hedge about 76% across the key markets. So, financial position in a nutshell, we reiterate we have a strong liquidity position, diversified financing sources and we definitely exercise prudent financial risk management.

So with this, I hand over back to Belinda.

Thank you, Yim Ying and Sherman. We would now like to move to the second part of today's briefing, which is the Q&A. So, please feel free to ask your questions. My colleagues are standing around the room with microphones. And if you have any questions, please raise your hands, and they will come to you. The only thing we request is if you could let us know who you are, introduce yourself and the organization that you represent.

[Operator Instructions] So may I have -- I see pens pointing here. So, maybe let me just take the first question. Tabitha, maybe you kick us off.

Tabitha from DBS here. Congrats on the strong results. My first question is on divestments. So, your progress appears to have been slower than expected this year. Can we expect a more accelerated pace of capital recycling over the next 6 to 12 months? And which assets are in the pipeline? Any of the U.K. legacy assets that you identified previously?

Yes. As I mentioned earlier, we see it as divestments will be weighted more in the second half of this year. But having said that, right, I mean, some of them, especially some are fairly significant divestments. I mean, we are in very advanced stages, but they may not close by this year, so some may trickle into next year. But yes, I mean, as Yim Ming mentioned earlier, I mean, we did record Quayside Isle as a divestment in our accounting. But I don't count that as this year because I already announced it as part of our divestment amount for last year when I presented to all of you our full-year results because I announced it in December, but it only completed in January.

So therefore, to me, this year, we haven't done any divestments and other than some -- a few strata title units at Fortune Centre. But yes -- so that really emphasizes the urgency for us to kick it up for the back half of this year. And plus with regards to going forward, I mean, because I think you mentioned, is it 12 to 18 months or something? But anyway, all that we will share more when we release our strategic review outcome end of next month. That will cover our whole capital recycling efforts for the next few years. And yes, we don't generally have a practice of, I think, disclosing what the assets are. But suffice to say, you're right on the dot. I mean, the legacy U.K. land bank that we had showed earlier, I think the last time when we announced results, we said we had this $800 million of U.K. legacy assets. Those are certainly on the cards, too.

And my second question is on Singapore residential. So, you've been very active in land banking, but with the recent GLS bids at such elevated pricing, will you still continue to look at GLS or en bloc is something that you will consider given the latest measures?

And also on EC projects, you have been working very well for the group and you have 2 upcoming projects not subject to the new rules. But has your stance on participating in the EC market changed?

Yes. We -- look, prices have always been high for GLS sites, right? I mean, any good site that's well located, has strong connectivity will always be hotly contested. So, we will continue to participate. We just have to do so in a disciplined manner. And let's see where we get to. As I mentioned in previous analyst briefings, I think we also need to watch what our pipeline looks like. I mean, we don't want to go back to a point in time like in early 2018 when I had 4,000 units in the pipeline and then suddenly some cooling measure comes out and then our share price was really wrecked.

So, I think we have an optimal pipeline land bank number in mind. So, I think we'll always try to ensure that we replenish on a timely basis because as all of you know, right, I mean, I can reduce our gearing and also save -- conserve more cash by not investing, but it hurts you down the road when you don't have revenue and profits coming in. So, we'll continue replenishing. We continue to look at good land sites. We are privileged to have won 2 this year. We participated in quite a few.

And obviously, the one recent one was Bayshore, where this large consortium that we were leading, I mean, we came in second. So, that was a bit of a pity. But we'll continue to look at future GLS. And likewise, we will look at en blocs as well. I previously mentioned to the audience that en blocs are usually not our preferred method because it's a much more longer cumbersome process, right, to get through the en bloc and there may be more studies that you may need to do, whether it's traffic impact assessments and stuff like that. But it's still something we'll keep in mind. I mean, there are a lot of very, very nice, well-located legacy or agent assets.

So if the opportunity comes up and the pricing is within a range that we deem acceptable, we would certainly be keen to go for it, too. And as for EC sites, yes, the new EC sites will certainly come under a different set of rules and that will moderate things. But having said that, I mean, that will be evident in the bid prices for the land. So, we will also continue to participate, but we will have to obviously moderate what we bid for it.

Okay. Can I move to the next question, please? Okay. Maybe let me take Xuan.

This is Xuan here from Goldman. First question is on the Newport office in Union Square. Can you share what is the CapEx and yield on cost? And beyond this project, are you actually prepared to undertake more redevelopment? Or will you only embark on those when these 2 are completed?

Yes, Xuan. I'll let Yim Ming talk more on the costs. But yes, we are willing to undertake more redevelopments as and when. I think it's appropriate and obviously accretive for us. As mentioned at the full-year briefing to all of you, I mean, we have a few other assets that could potentially go under different schemes. I mean, Newport is under the CBD incentive scheme, where we had a 25% uplift. Union Square is under the strategic development incentive scheme. So, that was a 67% GFA uplift. So we have, for instance, 2 other potential projects that fit under each scheme.

So, there's the City House, which can still go under the CBD incentive scheme. Then there's also -- you remember, we en bloc-ed Delfi. I mean, we own a large part of it, but we bought out the remaining minority shareholders. And so now with full control of Delfi. And obviously, CDL Hospitality Trusts has Orchard Hotel and Claymore Connect, the mall next door. So, that is a potential project that could go under the strategic development incentive scheme as well. So yes, but as mentioned at the full-year briefing, I don't want too many redevelopments going on at the same time because every time you do it, you lose the entire rental income and it's several years of heavy CapEx as you build out these big integrated mixed-use developments.

Yim Ming?

Never really divulge it, but okay. So the PDC for Newport as well as Union Square, I'm talking about the commercial elements. They are in the range of about $1.1 billion and $0.9 billion thereabouts. So, this is based on market prices of the land. So as we all know, Newport was our previous Fuji Xerox. So this $1.1 billion actually reflected the market value of the land at the point of transfer. So clearly, the embedded value is what we have not yet unleashed, which we will, should we do any other capital movements, yes.

So out of which, I think -- I mean, I've mentioned earlier on this time around, in fact, for the last 1, 2 years, we have spent significant CapEx on these 2 properties. So right now, I think the remaining commitments for these 2 properties is also fairly minimal. It's probably in the range of sub-400. You guess yourself.

Okay. Can we move on to the next questions, please? Any hands? Or everybody is very happy with the results. We can go for lunch now.

Okay. Maybe I move to [ Dexter ]. Is it Dexter? Yes.

Can I ask quickly on the -- so obviously, the property development have done very well. You have mentioned obviously about land cost. But what's your sense of the Singapore property market now? Do you think this is the best that we have? Or do you think there's still like -- from what you're planning, is there a long way still to run in terms of prices, in terms of the health of the market right now? Or you're a little bit more conservative on? That's my first part. I'll ask the next one.

Yes, I think the market has entered into a more stabilized phase. As mentioned earlier, I mean, year-to-date price increase for private residential according to URA Index is 1.4%. I think we'll probably end the full year maybe somewhere between 2% to 3% price growth. And I think that's very normal, right? I mean, you keep track with inflation costs and obviously, our development costs have risen as well over the years.

So, I think -- and the units transacted, I mean, whether we hit 8,000 or 10,000 end of this year. I think it's been a very -- it's a very -- there are indications of a very stable market. So far, I'm quite pleased with it. And this is in line, I think, with where the government would like to see the residential market be as well. So yes, we continue to be optimistic about it. I mean, this is our bread and butter.

CDL, we do property development very well. And obviously, Singapore is our strongest market because it's our home ground. So, we will continue, I think, to execute in this market and continue to be on the lookout for the right opportunities and the right GLS land tenders to participate in.

And just 2 more follow-ups. One is on your gearing. You have already made it a priority, but it's gone up again, albeit for the GLS. Is there actually a concrete plan to reduce that target? What the plan is? And on terms of the -- in terms of your strategic review, obviously, you wanted to do in June -- announced it in June. What's the reason for delay? And is it safe to assume that the whole Board has unanimously approved it?

Yes. So, I'll address the gearing one first. Gearing has ticked up, unfortunately, because obviously, we've bought these 2 GLS sites, which we are very excited about. We think they are good purchases, but it does add to our gearing. So it's not at a level that we're comfortable with. I mean, 75% is high. But the good thing is that you will hear -- and again, sorry today that we will be short on details, but you will hear at our strategic review, unveiling of our strategic review outcomes end of next month, how we have a concrete plan to bring it down, a very concrete plan backed by assets and numbers to bring it down to a level that I would think everybody should be very happy with, but we will talk more about that end of next month.

And your other question, strategic review, yes, Board has approved it unanimously yesterday. So really grateful to the Board for standing behind what has been many, many months of work, right? I mean, actually close to a year since we started this. But we still need to tweak certain final parts. I mean, because as management, right, we have to ensure that everything we put out there, we can absolutely deliver. So, there's still some final tweaking we need to do.

Obviously, I was joking earlier about the pretty infographics and all that. But there is a little bit more work to be done to get the whole plan concrete and in shape. So, that's why we needed a bit more time as well. And also, obviously, we're also very busy running the business. So, we thought let's put it at the end of September, so they will give us time without having to rush and put out something that may be slightly unfinished.

Okay. Maybe since it is there, why don't I just take [ Jovi ], then I'll come to you, Kiang, then I'll come that way. So Jovi, maybe let me take your first.

I'm Jovi from DAH Singapore. Just 2. New Grade A office supply is tight in the coming years. Can I just confirm how leasing is progressing for the office space at Newport Plaza and Union Square? Are you able to share any figures?

And I think building on Dexter's question, do you see any new launch prices hitting $4,000 psf?

Orchard Boulevard tender just opened this morning, for example.

Mr. Sheng, why don't you take both questions? But having said that -- I know. I mean, I may look like a bad guy for throwing the tough questions at him. Okay. I'll take the first one, Jovi. I mean, we don't tend to share too much about our pre-leasing efforts. And obviously, pre-leasing really ramps up strongly the closer you get to completion. But having said that, we did share at our -- when we unveiled our full-year results of 2025 that obviously, we are at a 52% pre-lease for Union Square because that was a one single large tenant. But suffice to say, both of them actually, it's been very encouraging. I mean, tenants have been interested, a mixture of large tenants and smaller tenants. But yes, sorry, we don't typically share pre-leasing commitments until we get closer to when the buildings about the TOP.

As for whether resi will hit $4,000, I will let Mr. Sheng answer that.

Actually, $4,000 benchmark is not high actually. Some of the Orchard Boulevard property is already $5,000 plus. So, I think depending on the location and the type of property, the quality, I would expect the new launches to be on the high [ $3,000 ], those in very good locations, right, the Orchard Boulevard you mentioned. Yes.

But you may remember, Jovi, that I mean, the record was set by the mark, right, at Paterson, and that was $6,800 plus per square foot, right? And obviously, there are other developments that have hit $5,000 plus. But whether you're asking whether $4,000 becomes the norm, I mean, that's not for me the case. But there will be some luxury high-end projects that will hit or cross $4,000.

Okay. I'm going to just move back to the front, Yew Kiang first and then after that, pass to [ Rachel ].

Yew Kiang from CLSA. I'm glad to see the higher interim dividend despite the absence of any significant divestment gains. And then I think Sherman alluded that bulk of it will be coming in second half. But if the divestment doesn't come through, is there a risk that your full-year dividend for this year is going to be lower than the previous year?

So, Yew Kiang as mentioned, our dividend policy is now based on a dividend payout ratio, right, minimum of 35% of PATMI, right? So it's whatever PATMI is. So yes, there is a risk. I mean, if we don't hit the same kind of $600 over million like last year, there's a risk the absolute amount will come down, but not the ratio. Last year, we paid out 40%. So, I mean, this year, we could pay out minimum 35%, maybe more. So the ratio will be -- has a floor, but the amount could come down if we don't hit the same thing. So, I mean, we'll just pay out whatever our PATMI is with or without capital recycling gains in there.

Okay, Rachel?

Good to see the share price drop. Actually, just following up on Yew Kiang's question. In second half, do you have any more residential properties that you can recognize to support your second half numbers?

We do, but it's definitely not as strong as first half. First half, we had Lumina Grand, which is the EC TOP. And I can tell you in first half, Norwood as well as Myst had a very high percentage of completion in excess of 90%. So, what we have is going to be our rock-solid Newport, which is more than 80% sold. Currently in June, it is about 50-odd percent completed. So, we'll see the project -- progress of completion by year-end. But relatively, the first half, yes, it will be smaller.

Then my next question is really on hotels. So, I think some of your peers are thinking of paring down their stake. I know it's a bit different for your City Dev hotel portfolio, but what are your thoughts about hotel?

We are planning to share more at the strategic review outcome unveiling end of next month. But maybe I'll turn it over to Eik Sheng, if you wish to talk about our thoughts about our hotel portfolio?

I mean, for the first half, I think, of course, t's still quite volatile, right? I mean -- and because we have such a diversified portfolio, net-net, what we did see is that we have still performed better than 2025. And even though there were some hotels in regions which were impacted, we saw other regions take up the slide as well.

So, I think that's the benefit of having a very diversified portfolio. That kind of principle, I think we will continue to maintain. But I think we will have more to share at a strategy review. I think we can't share too much details at this point.

Just trying to tease it out.

Thank you, Rachel. Well, good to see you again. It's been a while.

Let me just take some questions on the webcast, which is similar to in line with what Rachel just mentioned. So most of the question here is from [ Kotin ] of [ Falcon ].

Most of your competitors are shifting to an asset-light with higher certainty of profitability and cash flows. So under this strategic review, what uniquely distinguishes CDL to stride in the Singapore market? And then the -- so that's the first part.

And then the second part is capital recycling. When others are disposing, what kind of metrics or what kind of thoughts you have when you want to maybe capital recycle? What are the priorities that you will put beyond value and time?

Yes. So for understandable reasons, I will skip the second question because I think we will address that more when we have more concrete details to share. In terms of first question -- and I think I mentioned this to many of you before, I mean, we will never be a fully asset-light company. That's not in our DNA. I think we -- asset ownership is a big part of CDL's DNA, including doing heavy property development. But as I've mentioned before, I mean, and now we're up to $36 billion of assets, right? I mean we do need a portion of our balance sheet to be a bit more asset-light, so we don't get too top heavy.

So yes, I mean, the way to do it is to have a disciplined and systematic capital recycling program that goes on year in, year out. As we are buying new stuff, we should be also divesting some of our either non-core or matured or underperforming assets as we go along. And this cycle should continue alongside with our investments, our continued investments for growth.

On the topic of capital recycling, I also have another question from Vijay of RHB, which is joining us on webcast. In some way, it's related. So, I guess you can use her response. But the first part is the -- can we have an update on fund management segment? The FUM growth has been slow and short of the $5 billion target? And what are your plans for the FUM growth? That's the first one.

But the second one is a little bit more operational. Can we have an update on the living sector portfolio? The PBSA in U.K. segment seems to have softened. So, what's your view on the portfolio performance for the living sector?

Yes. Again, I'm sorry to be such a cop-out, but we will address more details at the -- when we have the session on the strategic review. But fund management is going to play a much bigger leg, a much bigger role for us going forward. Currently, I mean, roughly speaking, our AUM in the fund management side is about SGD 4 billion right now, primarily comprised of the 2 REITs that are CDLHT, as well as CDL Hospitality Trusts as well as IREIT, where we are a co-manager. So primarily comprised of these 2 REITs as well as a few small private gigs. But having said that, I mean, we do have plans to substantially grow this. And obviously, we're going to have to put a much stronger setup in place to ensure we can get there. But yes, we will unveil more details on that next month. What was the other...

Living sector portfolio, in particular, PBSA U.K.

Yes. I mean, of all of our living sector, which currently is mainly in the U.K., where we do the multi-family, which is PRS as we call it. So the U.K. PRS, Japan PRS and U.K. PBSA. I mean, Japan PRS has been the strongest. Our 40 assets, they are really doing exceptionally well. We're seeing strong rental growth. Occupancies are almost full. U.K. PRS has been improving. It was off to a slow start. We were a bit disappointed that it's been improving.

Unfortunately, U.K. PBSA has been a bit of a drag for us. I would say, currently, our yield on cost for the 6 PBSA we own is about 4%. It's not great. I mean, we wish it was higher. U.K., the entire PBSA market has been under some pressure and some structural challenges. And I think I've mentioned earlier to all of you before as well. I mean, with all this conflict going on or trade tensions between China and the U.S., we thought more students from China will go to U.K., but that didn't really happen also.

So, I mean, the U.K. PBSA sector is very dependent on foreign students, especially to drive performance. So yes, that's been disappointing, but we'll continue to monitor. I mean, our exposure is not huge. I mean, yes, I mean, 6 assets, not small, but it's not like a large portfolio of like 20, 30 properties either. So it's manageable for now. But again, we are reassessing all this with a view to taking a decision on whether to expand or shrink or completely divest the portfolio.

Okay. Good. I'm going to move forward. Okay. Let's go with Wilson first. Wilson then Brandon.

Wilson from Jefferies. Just a question on Singapore land banking. So, I think, Sherman, you mentioned how you're looking to replenish but not really overdo it. Is there like a comfortable level of Singapore land bank you are hoping to sustain? And I guess related to that also, what would be the implied kind of steady-state churn rate or number of launches you'd be seeing out of the land bank per year?

And just lastly, on a similar vein, within your Singapore land bank, any preferences for specific regions over others?

Wilson, very sorry to give you a cop-out answer again, and this is not related to strategic review, but very good questions, but we don't typically want to share too much here because, again, it's information that could be used against us, right? Once people know what's our optimal land banking amount, what regions we prefer, what's sort of our churn rate or target churn rate every year. I don't think this is good for us to share this publicly. So, apologies for that.

Okay. Maybe we'll move down to Brandon.

I wouldn't ask anything to do with the SR. So, just on the results for first half, we saw that the hotel numbers were quite strong. I think earlier, it was mentioned that there were some cost savings. Could you let us know what these cost savings are? And also if we were to take away the ForEx gain from SGD, what would be the core EBITDA and PBT growth of the hotel side? Because when I look at the GOP margin, it seems kind of flat year-on-year, right?

Your question always must be very difficult, right? So the exchange that the hotel segment has -- okay, it's a little bit convoluted because it spans over different segments. So, while we always associate M&C as hotel, they are not only in hotel. They do have investment properties as well as others. But looking at where we are for hotel operations -- so the PBT reversed from $84 million to $42 million. So the $42 million included exchange in the range of about $30 over million.

So the underlying performance is still positive. But having said that, I also want to reiterate that for the first half of the year, usually, that's not the strongest part for hotel. We all know that the winter months, the Europe hotels as well as the U.S. hotels don't do as well. So it's not exactly linear. The second half would look a lot better.

Okay. And my second question is with regards to the investment sentiments for U.K. and Japan. So, obviously, the interest rate environment hasn't been that favorable. So, could you maybe just share some color on what buyers are thinking right now?

Sorry, Brandon, buyers regarding, relating to?

Relating to your potential sale of the U.K. development sites and Japan. I mean, you don't have to tell me whether you can sell. It's more like I just want to understand how is the market doing.

So if you really look at -- I mean, clearly, we all know that our clear divestment, we have highlighted the U.K. legacy. And we have done in U.K. -- we're heavy in U.K. Our total assets in U.K. is about 13% and of which, of course, I think we have obviously 3 chunks, right? I mean 4 chunks, hotels, which are doing very well; living sector, which is very resilient. U.K. commercial, clearly, I think that was something that we tried to put in a REIT and that has been stalled for a while.

And of course, the last one being the development portfolio. So, development portfolio is the part that we are looking, obviously, to actively -- this legacy, we have indicated. No strings attached, we're trying to do that. The buyers are largely -- we all know, is going to be -- a large pool of is likely to be Middle Eastern. And clearly, in the current climate, of course, I think there's a few risks, right? I mean, firstly, in Middle Eastern, we all know that the monies -- of them being able to take money is not exactly the easiest. That's number one.

I think forever, there's this interest rate. They are saying that, obviously, the interest rate hike invisible, you could possibly squeeze better earnings. I think distressed sales is quite evident today, but we are not in a state of a distressed sale. I mean, we still believe that we have very good assets, especially Pavilion. But yes, the natural buyer pool is naturally more of the Middle Eastern.

Yes. Just to add to that, I mean, yes, we will not take whatever price is on the table just so we can meet our divestment targets. I think we don't want to leave too much money on the table. And from time to time, we do get offers for assets within this legacy land bank. But if it doesn't hit our required targets, we won't sell it. While I am urgent to want to -- under some urgency to want to divest it, but again, I mean, I can't do that to CDL, right, by leaving too much money on the table. And some of them have good potential. It's just that it's -- it will take too long for us to go and try to unlock or recognize the potential.

Regarding Yim Ming, what she mentioned, she's not wrong. I would say -- I mean, actually, many of these development sites, a natural buyer also would be a U.K. developer. And we have been in talks as well. But again, she's not wrong in saying that it's Middle Eastern money because if you look at the site we sold last year, Ransomes Wharf, that was the London Square, a U.K. developer, which is owned by Aedas anyway, which is -- sorry, owned by Aldar, which is a Abu Dhabi developer. So yes, maybe much of the money comes from the Middle East, but that's not the only pool. I mean, we have been in talks with U.K. developers, too. So, I think that's also a very natural buyer for some of the sites, especially if they already have there a strong development team and network within the U.K.

Okay. I'm mindful of time. So, I'm just going to take one or last 2 questions. So, I'm just going to pass to Mervin first.

Mervin from JPMorgan. Maybe we can move to Slide 21. I have phrased it in the past, but we have a lot of U.K. debt. I noted that you issued an MTN program where you can issue perps. Rather than waiting for any U.K. land bank disposal, should we not issue some cheaper perps to pay off this more expensive U.K. debt or take on more thing of that considering your yield on cost from PRS is 4%, which probably doesn't -- PBSA, sorry, that doesn't cover perhaps the U.K. borrowing cost? What are we doing in terms of the capital management.

So you're right. I mean, by debt, we do a little bit of cross-currency swaps where we borrow in SGD and then we do a cross-currency swap to U.K. to service our debt. We service our U.K. debt of which -- if you look at U.K. debt composition, the fixed ratio is possibly lower. We kind of missed the window back in 2018, 2019. There was never a perfect window to do that, except at the expensive price.

So having said that -- so we have been doing what you suggested. But to open that a little bit more, that still leaves you with a currency risk. That's not exactly what we were trying to usually posture. So, while GBP has been a lot more stable relative to USD comparing the last 2 years, it still ends up with some exchange exposure, which we possibly might not really want to do that. So typically, every time when it comes close to the refinancing, we do look at every debt closely. We will look at all the instruments, whether it's cheaper to refinance using the natural loan -- natural currency whether it's cheaper for us to do a cross-currency swap or basically just leave the exchange open and borrow in SGD.

A simple -- I mean, very simply, I think everybody would think that I can borrow it sub-3%, issue bonds sub-3%, issue Singapore perps up 4%. And in U.K., that is possibly almost 5%. Why don't you just do that with an arbitrage? But very frankly, the exchange movements, we have done that in the past, it's very easy to tip over with a 1%, 2% savings. So the savings in real is possibly in the range of about 1% to 1.2%. So it's still a risk movement if you ask me.

I'm asking because CDLHT has achieved 3% depreciation from issuing perps to reduce borrowing costs. Anyway, we can discuss this offline.

Yes. So, perps pricing is typically about 1% higher than traditional debt. So, we have done bonds, very frankly, at low 2s -- mid-2s, sorry. So it is still a little bit pricey for us. Yes, it does make the metrics look better. It does make your U.K. numbers look a bit better if I were to attribute a lower financing cost. But very frankly, if we want to do that, I will just keep issuing a lot of SGD bonds and basically have a more open exposure of currency risk. And since we are very, very clear that U.K. legacy is what we want to divest, I think we can still give it some time for another 1, 2 years, yes.

And final question for me. I presume the hotel is still considered core part of the business, but maybe I don't know if Sheng want to talk about where is the greatest opportunity within the hotel business?

I think we're not giving anything away, but we've always done pretty well in the Gateway City hotels, where I think we see both strong demand and, of course, the capital appreciation in terms of the value of the assets that we have. So, I think that's probably the winning formula that we've had through the years, especially when we do divest them, right? I mean, we've seen in the past with Millennium Seoul Hilton, recently with the Bespoke Osaka as well. So, I think that's likely. I mean, I don't think we would change that formula for now, but I think there's only so much we can share at this point. Yes.

Yes. So just to add on to that, Mervin, I mean, yes, hospitality will still remain a key part of our business. Portfolio may get streamlined, but it is -- continues to be a key leg of our business and does contribute strongly when it's managed well.

Okay. I'm mindful that we are just heading into lunch time. So if there are any more burning questions, if there are -- there is burning questions. One more. Okay. It has to be burning Xuan.

I'll give you that last question then.

Xuan here from Goldman. Just a quick question on the share performance plan. Can you share what is the key indicator that's tied to it? And is there any max limit of what can be issued each year?

I think it's not a maximum limit that I recall. But in the past, when we had it at the AGM, we also flagged that the dilution is very, very minimal, right? I mean, we are issuing out of the treasury shares that we have bought back. And as to the KPIs, we have not released what they are exactly to the public. But I think it's safe to say that they are tied to the long-term goals of the company. And going forward, they should be tied to the KPIs of the strategic review as well.

And any way to close off, I think for the shares, right, don't worry, we're not paid that much. The dilution impact is so immaterial that it is not -- definitely not completed. Yes.

Okay. All right. If that is the case, I just want to ask if the panel has any closing remarks or..

I look at the big picture. It is not quite often that we look at everything in single isolation. What we want is to be the best of its kind. And I will not hesitate to do that. Of course, some of the strategy that I'm going to have, I cannot tell you now because it is impossible to share some of the foresight. So, I wish you well.

Thank you very much.

Thank you, Chairman.

So, [Foreign Language]. I think that's the thing, right? So stay tuned, stay with us. At the end of September, we'll also be sharing more.

So ladies and gentlemen, we have really come to the end of the briefing. And on behalf of the CDL management and my fellow colleagues in the room, so thank you so much for attending. Thank you to all the webcast audience as well for your support. For those at the hotel, there are refreshments outside. I hope it suits your lunch time.

So, please continue to stay with us and catch up with us over coffee outside. Thank you so much.

Good morning, ladies and gentlemen, friends from the media, analysts, bankers, investors and fellow CDL colleagues. My name is Belinda, and I'm the Head of Investor Relations and Corporate Communications at CDL. As we are still within the Chinese New Year celebration period, so I take this opportunity to wish everyone in this room, a happy healthy and prosperous year ahead. [Foreign Language] So on behalf of the CDL management, welcome to CDL's briefing on its unaudited financial results for the full year ended 31st December 2025. Now this is a hybrid briefing format with both in person here at the M Hotel Singapore and those joining us live on webcast. and joining us virtually. So thank you all for being here with us this morning.

For today's briefing, in line with CDL's environmental sustainability conviction, we will not be providing printed materials. Instead please scan the QR code on the screen to download or view the following documents that were uploaded to SGXNET as well as our website before trading this morning. Now on this website, you will find a copy of the detailed financial statement. A press release summarizing the key highlights of our FY 2025 performance presentation deck that the management team will be using in a very short well. So for all our guests joining us live on webcast, you will similarly be able to download these documents, which are available on CDL website. I would like to introduce to you our CDL management panel. In the center, we have our Executive Chairman, Mr. Kwek Leng Beng. On his right, we have Mr. Sherman Kwek, our Group CEO, on Chairman's left is Mr. Kwek Sheng, our Group Chief Operating Officer; and on his left, Mr. Chia Yang Hong, our Group General Manager; and nearest to me, Ms. Yang Yin Ming, Group Chief Financial Officer. Now the format of today's briefing will be in 2 parts. We will kick off with a presentation of some of the key highlights of our performance followed later by a Q&A session with our panelists. So without further ado, I would like to invite Mr. Sherman Kwek, our Group CEO, to kick start the presentation. Sherman, please.

Good morning, everyone. Good to see you here again. It feels like the last analyst briefing was a long time ago, but really it's every 6 months, and happy to be here, albeit every year I see you, I have less hair but good to see you all. And this year, obviously, we're going to have a more positive and upbeat results to report. So we started off with a slide that shows you, I think, the key achievements that we did last year as we committed to everyone we were going to accelerate our capital recycling -- and we're happy to announce that we have achieved $2 billion in divestments -- and we were very selective in our acquisitions. So really, what we invested were in 3 GLS sites in Singapore as well as a hotel in London, in Kensington.

And at the same time, I mean, you can see that last year was a very strong year for us in the Singapore local market. In terms of residential sales value, we achieved $4.35 billion, which is the highest in our group 63-year history. So we're really pleased with that. The 1.657 number includes ECs as well. So if we use the corresponding number released by the URA, including ECs, it's about a 13% market share, shall be higher if we excluded ECs because last year, we sold more non-ECs and last year, it was good to see that the market came back with more stability and strength. Last year, the total developer new home sales was about 10,800 with a modest price increase of 3.3%. So this has really outpaced the 3 years preceding that where annual volume is about 6,000 to 7,000 and of course, the high was in 2021, right, when we saw about 13,000 new home sales and a price growth of close to 11%. So actually, we like that. I mean we think that that's a sign of a more stable, healthy market where moderate price growth, but the volumes have really come back and we've also seen that the core central region, the CCR has also come back in favor. I mean there were a couple of years where really the RCR and the OCR will getting all of the action. But last year, it was good to see that CCR was finding favor. Again, I think it's a change in lifestyle.

And of course, whichever region you're talking about, I mean bulk for the buyers tend to be Singapore and majority, Singaporeans or PR. So there's a very small percentage of foreigners buying. And that's same with Newport residents as well, which our profile later. And across our commercial portfolio, you can see that Singapore office, Singapore retail and, of course, are also sizable U.K. commercial, which is the 3 commercial buildings we have there, all showing very stable and strong occupancies. And our hotels managed to eke out a higher -- slightly higher RevPAR, even though globally, the performance was quite mixed last year.

So in terms of our FY 2025 financial highlights, we have revenue of $3.6 billion, which was a 9.7% increase from the year before. And obviously, we have a really nice PATMI of around 630 , up over 200%. PATMI have been high [indiscernible] Yes, so called even closer to $800 million, not for the fact that we thought it would be a prudent time to do some impairments. So we did $155 million of impairments and for impairments and foreseeable losses, mainly for our 2 China commercial properties 1 was this Shenzhen, which is a business part and business parts are primarily office in nature. So the commercial market is really struggling very badly in China, which should not come as any surprise to all of you. And then the other 1 is also for commercial complex in Shanghai. So that was a bit of a pity, Otherwise, we really could have reported an even stronger set of results. But Nonetheless, we're still happy at where we have been our NAV and our -- well, I'll use the NAV, the 1 where fair value IPs and hotels, I mean, is narrowing. I mean -- despite the fact that we did a lot of capital recycling last year and had contracted divestments of $2 billion. But NAV has gone up because as we sell and especially above book value, we're really crystallizing a lot of value. And obviously, that goes into retained earnings, which drives up the NAV. So really glad to see us narrowing this gap and unlocking the value and as some of you would have seen this morning when we released our results, I mean, hopefully, the dividend comes as a nice -- as a welcome news to our shareholders. We proposed a final dividend -- ordinary dividend of $0.25. So added to the 3 that we paid in the interim, it's $0.28. And which is a 40% payout ratio. And at the same time, we've also committed to a new dividend policy because in the past, it was -- while as management, we had always articulated that we will try to pay out 1/3 every year. But was really never formalized in our policy. So we thought, I think it would be a good thing to really show our commitment to sustainable shareholder return. So we will pay a minimum of 35% of reported PATMI every year. And share price last year really has rebounded nicely. I mean, of course, we had some of our own internal issues in the earlier part of the last year, but we're glad that we managed to get them resolved. And despite the macroeconomic challenges we pushed forward.

Global portfolio. Obviously, the 1 worth looking at is the bottom line because that's where we fair value, so you get a full sense of our assets line. Singapore has always makes up around half of our asset base with the rest spread towards U.K., China and others. Yes. So as mentioned earlier, I mean, we are really strong hard to ensure that we recycle capital at a higher pace, especially since we wanted to try to bring our gearing down. Gearing did go up in the end because we ended up winning more GLS in Singapore than we expected. And of course, we had that hotel acquisition but all in all, Gearing is at a manageable level, and we will target in the midterm towards bringing it down in a very significant manner.

So just to give you a snapshot of the last couple of years from 2023 to 2025, what our capital recycling focus has been like. most years, the blue bar, the investments acquisitions will usually surpass the yellow bar. But last year, we were fortunate. I mean, where the gold bar actually was higher, and again, that was because of our efforts to accelerate our recycling. Two things I want to mention here. So 1 some of you would have heard me say this before, is that the gold bar includes all the land we buy in Singapore. But obviously, when we develop into residential and sell the individual units, that's not in the blue bar. So it's a bit of a mismatch and it works against us in a way, but it's a way to be very disciplined, okay?

The second thing to mention is that sometimes you will see now results financially. I mean, in our accounting, there may be some difference in terms of when the acquisitions or divestments happen, but we don't double count. So an example is [ STN, ] right? I mean we signed the land tender with the government and were awarded the land in December 2024, but we only made payment like in January, right? So I count that in our acquisitions in 2024. But cash-wise, the cash only left our balance sheet and therefore, financially, P&L-wise as shown in 2025.

Likewise, last year, as you know, we announced a bevy of divestments and all were completed in 2025, except for Keyside arm, okay, in Sentosa. That 1 was -- so when the deal goes hard, when I sign and it goes hard, we show it as a divestment. So that was in December last year, so just 3 months ago, but we actually completed in February. So again, a bit of this accounting mismatch, but we -- as I said, we don't double count. So we show that strictly in the year that we announced it, that's the year that gets shown at, but sometimes on the P&L may be a bit different.

This is our Singapore residential launch pipeline. So really happy that we have a launch pipeline of 1,820 and we look forward. I mean to, hopefully, replenishing a little bit more land this year, even though we are very fortunate to have won 1 of the first few tenders of the GLS tenders of the year, which is [ Tangzhong Ru, ] which is an amazing location, and we're very excited to unveil our project there. And that's a 90-10 JV with our main contractor, [indiscernible] and as you all know, the other sites were acquired last year, which is Woodlands Drive 17, Senja Close and Lakeside and Lakeside will be launching in the second half of this year. And you can also see some of the launches on the right-hand side that we had launched 2 last year, 1 this year, 1 was the Orito and that has done really, really well above our expectations. The Zion grant, which also did really well. So I was very relieved and pleased to see that. And of course, a new port which thankfully has also done well, which we launched in January.

So this is a Newport residence. This is part of a mixed-use complex, used to be the Fuji Xerox tar. So we're revamping it into residential at the top, service departments in the middle and office in the lower 1/3 of it. And it is freehold and really glad that I think we have achieved good sales average pricing that we've achieved so far. I know there's been a bit of confusion in market because the [ 337 ] is actually what we've priced it at and target to achieve for the whole project. But -- so currently, it's around 3,200 thereabout. So that's the actual pricing. So sorry if there was a bit of confusion the way we wrote the news release. But really excited about this project, we really designed it to be a super luxury -- ultra-luxury residence. And of course, I'm still waiting for that -- that unique by the contact us to buy that very special penthouse unit that 13,000 square-foot single-story penthouse unit with dedicated lift just for that unit and dedicated car parks as well. So Hopefully, we will secure that buyer in the course of the next few months.

Then there's our commercial property, which our commercial properties in Singapore have been very resilient. The last couple of years, the office and retail markets have been very stable, both from a rental and occupancy perspective. So good to see that our buildings are doing well as well. One big news was the strong pre-leasing commitment that we did at Union Square Central, which is the former Central Mall, and we bought Central Square next or from Fast Hospitality Trust. Magee, it was total of 3 sites amalcamated it together. And developing this new mixed-use development. That's going to be very exciting when it's done. So the office component, we have leased up 52% to a single tenant, a government agency. So really happy with it for a very long lease. And -- but the project will only complete in around 2029, so a couple more years to go.

And then we have also driven AEIs. As you all remember, in 2018, we did the AEI for Republic transfer, Tower 1. So including the lobby and everything, that was really big works. That took us 18 months and around $60 million to get that AEI done. So that was a very, very tough effort, but really happy. We've seen very positive rental reversions after doing that. And so we thought we can't leave out its young smaller sibling, which is Repaplaza Tower 2. So we've done that now and more or less completed AEI just progressively doing the Lyft modernization. So really happy with that to and committed occupancy is 100%. Then the cities were more where we also went through a big AEI. I hope some of you have been to see it since we've completed and very excited with the mall and how it looks now, and it seems to have received a very positive feedback from all the visitors.

Global hotel portfolio, and we continue, I think, to look towards refurbishing some of our hotels that are located in strong locations so that we can continue to optimize our portfolio. So -- we have M Social Resort Penang as well as Social Hotel in New York Downtown, both of which used to be branded Millennium. So these are the hotels. And then, of course, we have ongoing development in Sunnyvale, which is in California. -- and that's for a 263-room hotel as well as we are currently undergoing the AEI for this Millennium Hotel that we have in Knightsbridge on Sloane Street.

Global living sector portfolio, it's gone down slightly because we did sell off our Sunnyvale PRS. So the Sunnyvale multifamily asset. So it's around 3.7% now versus 3.9% before Sing dollars, but it's still a sizable portfolio I have to admit, we have not monetized it as fast as we should have really us building up this was, firstly, a diversification for CDL, other than doing our usual residential for sale and offices and retail for lease. This was something that was -- the living sector is something that we really believe. And then -- it's something that plays up to our expertise, right, of development -- property development, asset management as well as hospitality, right, service. So we really focused on investing in this sector over the last couple of years and I built it to actually, I would say, a very good scale -- and there are many assets in there that are performing very well. But we did this not only to enhance recurring income and diversify asset class, but really was also to seed our fund management. So I have to admit the fund management efforts have been slower than we would have liked. But we are very, very focused on that. So this year, I hope to really accelerate that. So I can come back with good news to you by the time the half year results swing around. So -- but it's a very, very good and nice portfolio for us and lots in there that we can play around with from a private and a public markets perspective.

I thought I'd just put up this slide also because I realized that in reading the analyst research reports, many of you occasionally will write about these sites. So -- and yes, this is what we call legacy. It's not super old, but it is from acquired between 2013 and 2017, okay? And it's -- there's an external development manager that's managing all these projects. And we have to say that this portfolio has underperformed. So therefore, we endeavor to recycle this as quickly as we can. You will see that we have sold Ransoms Wharf -- so we did that at the end of 2024. So we're happy that was sold for about GBP 70 million. But -- and then of course, Sydney Street was a development where it's 9 units, and we have gradually sold that. And so all those 9 units are sold out. But there are all these other sites that we have to clear out, right? There's [ per billion ] road, which is currently operating as a car park. And that 1 should give us a very strong gains because we are receiving a lot of very outsized offers for that property. It's very near the Harrods. Then there's a Stag Brewery, which is a 1 million square foot of land development in Richmond in London. Stag Brewery is probably the site of this brewery operations, hence called stage. It's in Mortlake, Richmond. So this one, as you all would have seen in the news as well, last year in 2025, we finally got planning approval after 10 years. So -- it's -- now that we got the planning approval, we want to -- definitely, we don't want to build it out. So we're going to move to see how we can monetize this as quickly as we can. Development house is actually an office building that has permits for redevelopment. But we are assessing, again, how best to unlock value there. Teddington Riverside is a bit said, it was a land that we bought and then we actually have built out and completed the buildings with a total of 224 residential units, but unfortunately, 148 remain unsold. So -- it's something that we really have to accelerate more and some things we're looking at are potential bulk sales of the units to buyers that may be interested -- so -- and then the lastly, CheshanStreet is a very upmarket place in Belgravia, -- but -- it's 6 units, but again, took a very long time, and we only sold half of it. So -- so again, all this with ransoms, it was almost close to $1 billion. So now it's about , it's about $800 million that's sitting on our balance sheet. So this is something that we are very committed to unlocking the value there and monetizing it. So I just wanted to flesh this up since I know it's been mentioned quite a few times.

I won't spend too much time here. But last year, we were also grateful to have received industry accolades. And we did make a sizable donation us in partnership with our Chairman, Queen. So together, we donated the SIT, and there's an administrative building there named in favor of him, in allo of him. And of course, we also launched the CDL EcoTain City Square Mall, which has been very, very popular with a lot of visitors, especially those with interest and sustainability. And of course, the rest of the accolades on the right.

As mentioned earlier, we endeavor to give sustainable shareholder returns. I -- this was some of the feedback that we have gotten from investors, which is why is there no clear dividend policy articulated. So I think we really discussed it as a management and a board, and we decided that, look, let's really commit to paying minimally 35% based on our reported PATMI, of course, this year, for 2025, we have decided to do a 40% payout ratio. And I think, yes, I mean, there are some companies out there that probably have more aggressive dividend payout ratios. But I think we also need to ensure that we leave some flexibility. There's always a balancing act between us using the cash to pay down debt or to deploy for new acquisitions and investments. So we thought will give us some flexibility. But at least it's a floor and it's a commitment to our shareholders, and it's something that's sustainable, right? I mean if I -- go out announcing some super high number. It may come back to TripMomin the future. So yes, we're happy to announce a total dividend of $0.28 for the year and a record TSR last year 62%. -- last slide for me before I pass the Yim Ming, we continue, okay, to look towards our value creation and our value unlocking. We have to continue to drive forward with our capital recycling. As I've mentioned to you all before, this is not a one-off that we're going to do for 1 year or 2 years. From now on, capital recycling to be every much a part of our business as property development and asset management, right? I mean we don't just develop properties to sell or manage our office and retail portfolio. I mean we're also in the business of investment, right? I mean, things like our Osaka Hotel, we buy it. And 2 years later, we sell it for 60%, 70% above valuation that's a sign of a good investor, and we will not hesitate to monetize opportunities like that. So really, we have the capital recycling is business as usual for us. And to me, it's it's core, okay, because it's part of what we do. And in portfolio optimization, we continue to optimize and see where are the geographies and asset classes we need to be in.

Fund management. As I mentioned earlier, something we do need to pay more attention to and put in more effort into accelerating need to continue to keep our eyes focused on the ROE, although that's more of a midterm thing because I need all the other pieces to fall in place and then ROE will take care of itself. Capital management, we are still prudent about managing our cash, our gearing recurring income. We continue to drive that, and that's been helped also by our living sector portfolio. Diversification is still important. Singapore is an important market to us. We'll always remain probably our biggest market but we do need to have a diversification across geographies and asset classes and of course, sustainability, right, something we have to do our part for the world. And I guess before I hand it over to Yim Ming also, I may as well just mentioned this since it's also people in the market have gotten wind of it is that sometime in around September, last year, we engaged a global advisory firm to help us do a strategic review of our entire strategy and operations. We are still in the process.

The first step that they did was do an investor perception audit, so reach out to a slew of our buy side and sell side in order to really get feedback for us, right? How are we viewed by the market, by shareholders, by investors, by analysts, where are the perception gaps? And this feedback has been extremely helpful and has allowed us to then journey on together with them and are so for management and the Board to really go on this journey where we want to come up with something that will be -- that will close this perception gap. And that will give you even better guidance as to where CDL is heading towards and allow you to measure us and hold us more accountable for what we say we're going to do. So we're still in the process, so I can't talk too much about it.

But in terms of time line, I hope that by no later than the middle of the year, by June, no later than June. I hope we will be able to announce something to everyone.

Okay. Thank you very much on to Yim Ming and I'll field your questions in Q&A later.

Thank you, Sherman. Good morning, ladies and gentlemen.

So I'll start off with this chart. So pleased to report there's growth in all 3 operating segments across all 3 key metrics, Revenue, EBITDA and PBT. And 3 is my favorite number. Okay. For revenue, the group reported a 9.7% increase in revenue for FY 2025. This slide shows revenue by each segment. While PD contributes 33% to total revenue in FY 2025. The increase in revenue is actually attributable to this segment, which increased by 24%. The steadfast execution and successful sale launches are commendable, and our Singapore PD segment delivered a stellar performance. Projects that contributed included the Mist Norwood Grand and Union Square residences as well as the sale of ransomware and the office component of 1 city center in Suzhou. Joint ventures are equity accounted for, and the revenue do not include these JV projects. On a like-for-like basis, the revenue from these JV projects would have contributed $1.8 billion to 2025 revenue. Hotel operations ticks up 46% of total revenue and increased 1.7% in FY 2025, following a 1.3% increase in RevPAR. The increase in RevPAR is due to Australia and New Zealand portfolio, New York hotels, rest of Europe with the acquisitions of Houghton Paris Opera in May 2024 and holiday in Kensington in December '25. One outstanding hotel -- it's also in U.K., which is a bit more Minar. Please go visit day if you visit the U.K. This more than covers the power performance in Singapore, where RevPAR decreased 5.5% due to -- not the other hotels that we didn't do as well as Beijing hotel, which has weaker or because of the China economy slowdown. For investment properties, the revenue is driven by higher contribution from City Square Mall as well as Tongchuang Shopping Center in Pukit, following -- reaping the benefits of our AEI programs. [indiscernible] $5 billion for FY 2025, 43% higher than 2024. EBITDA demonstrates strong cash generation and is one focus area we look at very closely. Our target is typically a $1 billion annual EBITDA for healthy cash generation. This outperformance $1.5 billion EBITDA was due to our capital recycling gains. PD property development EBITDA increased 81% to $261 million for 2 other than projects earlier mentioned for revenue contributors. The other JV projects that contributed to EBITDA included the fully sold EC Copen Grand, which optinTOP this year, Kenning, the Orica as well as Temporent. .

For FY '25, Sherman mentioned, we made a $8.5 million of foreseeable losses. For hotel operations, EBITDA increased 35% for FY 2025. This EBITDA included capital recycling gains from JW Marriott and comfort in -- excluding such capital residement gains and impairment write-backs. -- hotel operations EBITDA dropped slightly by about 5% with cost pressures as GOP margins fell 1.4% due to weaker performance largely in Singapore and Rest of Asia.

For investment properties, they are the biggest contributor to EBITDA, contributing 46% of total EBITDA. This segment saw substantial capital recycling gains, offset by impairment losses relating to 2 commercial properties in China, 1 of which is slated for sale and has been transferred to asset held for sale. Notwithstanding the our resilient performance of our commercial properties and the growing living sector reflected about 8% of performance in this asset performance.

Next, we'll move on to PBT by segment. The explanations are largely similar to EBITDA earlier. PBT more than doubled to $772 million. Once again, investment properties is the biggest contributor. And all 3 segments reported improvements in PBT versus FY 2024. This can is peak. For hotel and investment properties, they improved by 33% and 145%, respectively. And property development improved multiple force. This is due to the fact that profits from property development is lumpy in nature. So in last year, there was no EC TOP. There was high financing costs, and there was construction delays. 2025, we have a TOP for 1 of the EC as well as very good construction progress and the softer financing environment. PBT is impacted by financing costs. On financing costs, our gross interest expense has decreased by 12% to $520 million. We hope to see this trend further down in 2026, sounds like Broken record, we depreciate our investment properties and in challenging circumstances like today with where we encounter valuation headwinds. I think this conservative accounting policy of depreciating does benefit in its benefits. On capital management, continue to have strong and robust fundamentals. We have a balanced debt expiry and currency profiles for bonds expire in 2026, we will look to issue new bonds. Gearing at 71% vis-a-vis last year at 69%. So we mentioned other than the $1.7 billion acquisitions for 3 GRS in the hotel. We also paid for Syntiant site as well as CapEx on our investment properties. So this is offset by our recycling efforts of IB that Sherman mentioned earlier.

Cash of $2.1 billion with uncommitted undrawn credit facilities of 4.2 very, very strong position. But if you wonder why is the cash drop from $3.1 billion to $2.1 billion is because we have set it money in December 2025 to pay for Syntiant. So interest cover also improved to 3.6x on the back of stronger EBITDA. So for fixed debt, we are at 44% down. 70% of Singapore debt is actually fixed and 11% of GPP debt is fixed. So this puts us in an advantageous position. We are able to assist better opportunities or rate cuts by the Bank of England. Average borrowing costs went down nicely to 3.7%.

And the last slide for FX risk, we do not take speculative position. We do a lot of natural hedging. So we're very comfortable with a 77% natural hedge. I think if 1 were to ask, why is the renminbi hedge is a little bit low, and we all know that we cannot borrow for land in China, which is why that's a slightly bigger exposure for in. So other than that, we acknowledge there's challenges in USD currency, there's volatility, but we are managing it. It's definitely within our risk tolerance levels as well. So with that, I hand over back to Belinda.

Thank you very much, Sherman and Yim Ming for the presentation. We would like to move to the second part part of today's briefing, which is the Q&A. Please feel free to ask your questions, and my colleagues are standing around the room with microphones. And if you have any queries, those who are joining us on webcast, you may post your questions by clicking on the question tab. So before asking your questions, may we please request that you introduce yourself and the organization turn that you represent. Okay. So I'm going to just go straight into opening up the floor. Okay, I have a Mervin first.

I'm Mervin from JPMorgan. Congrats on the strong results and strong share price performance, which I think reflects the market's confidence in your leadership Sherman. Two questions from me, how we can maximize value, improve the operations. Is there anything particular feedback that resonates with you the most? And where is the main perception gaps. Second, question is on cost of debt, a significant drop to 3.7%. Any guidance for this year? And if you were to sell your U.K. assets, the $800 million, how much is the current U.K. debt at this point? .

Yes. I mean we received a lot of very detailed feedback, which was extremely helpful and some from the analysts seated in this room, those who the firm picked. And -- there were many more gaps, perception gaps than we realized. So -- and I think certainly, 1 of the things we look towards doing is rightsizing our portfolio as well as ensuring that we retweak our so-called capital allocation priorities from a geography and an asset class perspective. So that's something we're still in discussion. I mean -- and there may be some changes that may be coming up. And also, of course, I think 1 of the things that came through very strongly from this exercise was on the disclosure side. While I think I've traditionally viewed us as a company with pretty good disclosure. I think we've been pretty open and transparent about all of our activities and our results and the things we are doing and our strategic priorities. But certainly, one thing that we could do better, I think it's to provide more sign post more way finding for investors to show them how we're going to progress forward in the next couple of years. And to really -- so that they can really figure out for themselves if CDL executes on everything that they have laid out, okay, what will the CDR of 3 years or 5 years from now, what would that look like? And do I like what that looks like, right? So that can also form part of an investor -- so-called determination of whether to invest in our stock. So I think that's the fair thing to do is to provide a stronger guidance and more concrete numbers behind it. So these are the things that we kind of got out from it. Yes, on a more macro -- on a more micro level on the strategy side, there are also quite a few things feedback that I think we take very seriously. Obviously, we can't talk too much about it right now, but it will probably involve rebalancing some of our portfolio, too.

Second one, I think, Yim Ming, you can take.

Yes. For cost of debt guidance, I don't expect anything more than 3.5%, and that's probably conservative. And for U.K., that portfolio, I mean we do central treasury as we have said many times. So we will obviously -- unless we have some good investments would obviously go towards reducing that in entirety. .

Okay. On the first row, maybe Derek take yours off and then move the second one. .

I guess just on the results itself. A bit of a good record Pete, but just a bit of noise over there. If you strip out all the one-off investments impairments, et cetera, what is the core Padme and we could be -- that we are looking at? That's first question. .

Okay. Derek, -- before I let Yim Ming answer that, I just want to emphasize again okay, which I had mentioned just now, I think it's not I don't think it's appropriate to look at these so-called capital recycling activities as a one-off because firstly, as I mentioned, it's going to be business as usual for us going forward. If I so aside from developing property and managing our office and retail. I mean if I invest well in something and I sell it 2 years later for a big profit, so that doesn't count towards my earnings. I mean -- as I said, CDL is also a good and astute investor. Yes, I mean, we've had some steps over the years, but generally, I think we've done well on our investment. So I think we really shouldn't keep seeing that as noncore. And likewise, on the flip side, right, I mean, if I invest in a commercial property in China, and it does really badly, and I take impairments and write-downs. That should be held against me. We should be held as a management team accountable for what we've done, right? If we keep stripping off all these one-offs, right, then then it will be very easy. I'll just focus on doing property development and everything else is noncore, right? So again, I would be careful about how we use that term. But I get where you're coming from. So maybe I'll let Yim Ming answer that.

So sorry. doesn't that like the question clearly Yes. By having said that, yes, .

So we reported about $330 million of PATMI. So if I were to exclude divestments as well as impairment losses, which have made substantially, it's probably in the range in -- so as we mentioned, from a management perspective, we don't look at that as a key performance measure. We really look at EBITDA and we look at reported PATMI and ROE. So I guess that probably contextualize us how we look at things as well. .

Yes, that's fair. I mean to your point as well, you are going to link dividend payouts to reported PATMI also. But I guess with you going forward, will you give -- and you alluded to more corporate governance as well. Would you I guess, formalizes the divestment targets in your outlook? .

Yes. So capital allocation as well as divestment targets are part of this internal strategic review that management and the Board will go -- is going through with this advisory firm. And so therefore, we are excited by midyear to hopefully announce something that will be well received by shareholders and investors. .

Okay. And just 1 last question if I may on -- we put the U.K. development -- U.K. legacy platform, $800 million. Mortlake step brewery is in there as well. So can you just take it that you are planning to divest entirely .

Short answer, yes, Derek, the intention is to divest that whole portfolio -- so we are working on it. I mean, some of that stuff, as I said, 1 has already divested the site for GBP 70 million [indiscernible] . So but we will accelerate the so-called the monetization of this portfolio. This year, certainly, we want to accelerate this faster. .

Okay. Let me just move to the second row, Shan, maybe you'll go first and then I'll move down. .

This is Shan from Goldman. Just a follow-up on dividends, right? -- the $0.25 as soon as ordinary. And is that absolute laon that you will keep going forward? Because that actually implies $220 million, which is above your core PATMI. So then -- the second question is then on divestment. Is that also your underwriting assumption that there will be a minimum level of divestment gain going forward?

Shan. So or in -- just for a second, like. It was about dividend, sorry. I was thinking about your second question. And then Saigon the first one. Okay. So the dividend -- the final dividend is $25 million, but added to the interim, it's 3, right? So it's $0.28 for the year. So a 40% payout ratio. And you are asking?

So most companies will keep the ordinary flat. That means that same model is .

I got a ton. I went through 1 of those moments when I was thinking about something else Yes. In the past, CDL had this habit, right, of declaring a lot of so-called special dividends, right? Our interim is special. There there's a special final and ordinary final I mean I think we discussed it at length at the board yesterday and management's recommendation is to probably do away with this terminology or special. I mean, it's really not that special. I mean we've committed to it now. our dividend policy, right, of a minimum of 35% or more. So I think anything within that range should not be considered special. It's something that we have committed to doing. So it's an ordinary dividend. Now if we were to do some means to be seen, it depends how unlike another developer who has made a Board announcement. I will not be pegging our dividend to the like growth divestment value or something. But again, our reported PATMI captures all that in, right? So I think that's a very fair metric to use when we have pegged our dividend policy to it. .

So -- and the second part was since I was still in twilight zone wine just now. Yes. So I've answered that as well, right?

So Yes. Okay. Okay. Sorry. My second question is on NAV and RMB -- if I compare this to number for against 2019 number, NAV has declined 9%, but RNAV is up, I think, about 9%. -- against 2019. Can you help us reconcile this number? What that has been developed up so significantly. And just 1 last question on net gearing, right? If I take a look at your net gearing is actually trending up. this goes against what you mentioned earlier about midterm deleveraging plans. So can you share what are the near-term goals over the next 12 months?

Okay. I'll take the gearing question, then I'll pass it to Yim Ming . So thank you, Sean. So for the gearing, as mentioned earlier, I mean, we were fortunate to have won more less sites than we expected. So 3 last year, and land is not exactly cheap in Singapore. But the good thing is that, I mean, all this gearing is on your balance sheet for a finite time, right, as you develop. I mean this gearing will start to progressively go down anyway. So we don't see that something alarming. And yes, I mean, that hotel acquisition at the end of last year, about SGD 480 million, I mean, that certainly pushed up our gearing by quite a bit around 3 percentage points. But -- but putting that aside, I mean, as you yourself mentioned, then, it is a midterm target. I know I did say that we want to get the gearing down. But ultimately, I also don't want us to be too fixed on the gearing because I think every property developer is different. Yes, they are Hong Kong property developers where gearing is in the teens or the 20s but different strokes for different folks, I suppose. And for us, I mean, our midterm target is to get the gearing down to at least around 60% -- but in the interim, right, I don't want to -- just because of gearing then, okay, let's not tender for land in Singapore. Let's not buy anything else. We'll just keep divesting I think that we'll do a great disservice to our growth strategy because no matter what, we still need to keep growing -- so -- but the gearing will come down over the next few years. That's certainly a commitment I've made -- but yes, it did actually track up. So I do understand the rationale for your question. So -- but yes, thankfully, not by a lot, and it will start to trickle down as we progress further with our capital recycling and continue to be selective about the acquisitions we make. Yim Ming, do you want to address the NAV?

You're really sharp. But the NAV for IP, I mean, if you notice, right, the NA for IP has gone out slightly, largely because of our China portfolio. So if you look at valuations wise, for our 2 China portfolios -- our China commercial properties, valuation has actually come in probably in the range of about at least 10% lower than the previous year. So they probably accounted for that. But overall, RNAV has gone up, I think, largely also because of South Beach. I mean, very frankly, that has improved our base NAV for one, and our hotels valuations actually came in also a little bit better this year versus last year. But if I can just add on the NAV, I know it's a key focus that many people look at whether this number is real. I just wanted to assure the audience that for these NAV calculations, firstly, for the IP portions, they are mostly externally valued. -- but we don't announce all the valuation reports because we're not a REIT. So they are either -- for the Singapore properties, they actually mostly external value all overseas properties are actually also excellently valued, and we use people like Cushman, et cetera. As for the hotels, after we privatize MC in 2019, we had the ability to value all the hotels. So while the hotel valuations are not the most recent, but in 2020, we did to clean about 90% of our hotel portfolio. So progressively, we just keep doing valuations. So suffice to say that I think the valuations number, we stand by it, basically supported by most external valuations. .

Congrats Joy from HSBC. Just following up on Sean's question on dividend. So given that the PATMI can be quite volatile depending on recognition and divestment -- how much would you want to keep your dividend more volatile? Or you want dividend to be a bit more stable? How should we think about the linkage to PATMI itself? Second question, just in terms of divestment targets. You singled out U.K. portfolio for potential divestment. Is there any other obvious segments that you want to sort of divest -- thank you

So on your first question, Joy. By the way, welcome. -- your first question, yes, I mean, we -- because the dividend policy is pegged to reported PATMI. So something that we will have the endeavor to try to keep it as stable as possible. Yes, last year, 2025 was a record year. So it's -- we're going to have to work very hard to try to keep the levels up. That's why I said, right? This capital recycling has part of our business as usual and it can't just be a one-off. And the good thing is that we have a sizable portfolio, and we continue to invest as well, right? As I said, the Osaka's 1 example, the hotel bespoke Shinsaibashi. I mean that was 2 years ago, and -- and now we have monetized that. So it's something that we will have to continue doing. And there are various levers we can pull to get this done. So yes, it's work in progress for us. You will see that at the end of my presentation that slide with all the nice bubbles around it, but 1 of them is recurring income, right? I mean it's also a key focus for us, and that's why the living sector has played a strong role too, albeit it's also a seed for fund management ambitions because property development is very lumpy, right, with the exception of Singapore, where it's progressive. And other than ECs, all of our overseas development revenue comes as a 1 shot at the end just like ECs, right? So this causes a lot of lumpiness in our earnings. And therefore, we do need a lot of strong recurring income to hold that up to -- and of course, we have to be careful how we invest because impairments and provisions for foreseeable losses can also take a hit on the PATMI, right? So Ultimately, it is a tough job for management. I mean, but we are committed to making this happen. And yes, in the medium term, we hope to really even out so that it's a stable and growing PATMI. .

So that's one. Then the second thing is in terms of divestments, you mentioned about you mentioned about -- I mean, we mentioned about the U.K. development legacy land bank. Of course, we also mentioned about the China commercial properties that we would hope to clear off our balance sheet. And aside from that, yes, there are many other divestments in the pipeline. We don't typically share our divestments, but I can only tell you that it's across geographies and across asset classes. And it would include Singapore as well. So yes, various initiatives that we're pushing forward with. Thank you, Joy. I'm glad I wasn't in the twilight zone for that question.

Okay. I'm going to -- I'm just going to move down quickly this row first and complete this row. Dairy, then after that, Brandon and other Terrane.

Derek from DBS. I've got 2 questions. So my first question is on the relationship with the board. -- as we look to focus on 2026, your strategies, divest invest, could we assume that relationship between management and board you are like Cannavinterms of wanting to take the company forward. So I just wanted to hear your thoughts on that. And second thing is on the land banking. We've been seeing how foreign developers coming in also in Singapore. And I think while the group has been tibiting very actively. I'm just wondering whether are you sensing exuberance in the pricing in the market currently? And if any, how should we think about you adding more land in 2026 Yes. That's all

Thanks, Derek. Went straight for the nail on the head, heading in the nail on the head with that first question. Yes, relationship is a very core deal and very harmonious right now amongst management and together with the Board, I do understand the basis of your question. Last year, we did have some internal issues and of course, some kind of unsightly public disputes, but glad to say that's behind us now. And as a management and Board, I mean, we are trying to really move forward expeditiously so that we can really unlock more value from CDL at a quicker pace. So that's one.

In terms of land banking, the truth is, Derek, I mean, over -- this is not the first time we are seeing -- I mean, over the years, there have been some exuberant years where you see a lot of foreign developers come into the market as well. There was I remember all these Chinese developers, [ Bank ] or they were all coming into our market to also build, right? And of course, many contractors have also now become developers themselves. So it's nothing different from what we've seen, I would say, over the last decade or 2. So we -- land tenders are always competitive, especially if it's a nice plot of land. You're never going to escape with a very low or attractive land price. I think it's always going to be competitive. So I think we have to be just disciplined in how we bid and put our best shot forward. Winning the Tanjong rule side does take some pressure off us because at least we've already got 1 land replenishment done. We will certainly take part in more land tenders this year. But of course, I also have mentioned before that I don't want us to get to the point where overly burdened by a very huge pipeline in Singapore. And should something change, be it locally, i.e., property measures, or for -- in terms of the global macroeconomic conditions, that may severely change the market dynamics and leave us so-called may leave us so-called struggling, I mean, with a larger burden than we would like. So I think we would like to just keep our land bank in prudent -- I mean we will replenish it in a prudent manner, but I think we'd like to keep it at sustainable levels that will not put undue pressure on the company. But certainly, we are glad to have on Tanjong rule, and we will continue to participate in more tenders this year.

Sorry, Sherman, since on that same topic, we have a question from Golar online. And on that same topic, she was asking about capital allocation. And therefore, since what you say that your capital allocation will largely be with the salable land banking? Or would it be other asset classes? .

Yes. Again, as the last few years, I have been the last 2 years, and it was accidental initially. But since 2024 and 2025, I've kind of given out divestment targets. You'll notice that annual divestment targets, you noticed I didn't do it today because, again, I'm waiting for -- I'd like to have this strategic review probably done, and then we'll give our proper targets then not just for divestments, but also for capital allocation for capital deployment.

Brandon?

Sherman and team. Just 3 questions. The first one, are you able to share a bit more on your hotel strategy as of now. I think we have sent you divesting a pretty decent Japan hotel very good premium then subsequently, you bought something very nice in London. So is there a particular strategy? Are you looking at probably like percentage you're going to sell a percentage of managed under maybe link in M&C and percentage you're looking to manage on the third party. Yes. That's my first question.

The second question will be a bit more on the U.K. development platform. So just to confirm, right, if you were to sell the entire $800 million, will it be recognized under revenue or you would recognize sort of a divestment gain or loss below the gross profit level, Yes. That's my second question.

And the third one would also be a bit on divestment -- so we have seen you divesting a very big number in FY '22 and '25 as well with MHS and South Beach. So for this year, are there any really chunky stuff there that we could see you divesting or maybe something like City Square more even like some decent hotels in U.K. or in New York -- why don't you take the

I'll do the easiest one, obviously, so for the U.K. development platform, we -- our original genesis of going in was actually for development sites. -- yes, it's part of our development property will be recorded under revenue, not under other income. .

I think on the hotel on the hotel one, we of course, we do have a review of that as well ongoing. And as you can see, it's not just noncore hotels that we're selling. Sometimes it's also getting the right offer. And if we think it's attractive enough, we do -- we are open to divesting right? So we do have 2 heads. One is a operator. And the other, of course, is the asset owner. So we do have a 2 head strategy. And I think as the operator, we ideally want to have more hotel contracts, especially in gateway city hotels. Today, we're pretty pleased with what we have in terms of where we are represented across different geographies which is very useful in terms of having such a volatility in the market, right? I mean 1 market is down usually and our market picks up this slightly as well. So we definitely want to continue that kind of diversification. But at the same time, I think where we're going is that it doesn't necessarily need to be an invested asset that we must hold ourselves. So on the operator side, I think we're also trying to get ourselves structured for more hotel management contracts and try to grow more through that route as well.

So if you ask me where we can split between the internal and external one? Today, I think, of course, it's majority internal. We have a few external contracts, but albeit those are quite significant ones. We have external contracts with Granier Type Singapore, Stregas and addition. So I'm not able to give you a firm split as to how much we intend to keep in-house and external. But basically every project we look at, we do decide like is it better managed in-house. And I mean some of the considerations can be how many hotels do we already have in that city, right? So we do take all that into account before we decide whether we want to go external internal morning.

Brandon, welcome. And thank you for your kind comments as well. So just to round up, -- as mentioned earlier, I mean, I don't want to share too much about -- I can't share too much about our divestments. And typically, we don't share specific divestment targets. It's interesting. You mentioned like City Square Mall and all this. So thank you for the ideas. But we are taking a very rigorous look and have been at our entire portfolio globally, including in Singapore. So I mean we hope that the ability to surprise on the upside. After all, I don't think any of you expected us to sell South Beach last year. So now that doesn't mean you go and say, "Oh, they're going to sell Republic Plaza or something. That's not going to happen okay? But we are looking -- taking a hard look at our whole portfolio. So as I mentioned, the divestments will spread across geographies, including Singapore as well as overseas. So -- let's see what we come up with. Yes, I mean South Beach is a hard act to beat because it was a big asset. I mean -- but we are thankful and fortunate to have a diverse portfolio. .

Okay, Wilson and then after I'll go to Terence and [indiscernible].

The management as Wilson from Jefferies. Just 2 questions. The first on fund management progress, which Sherman mentioned earlier that you hope to accelerate. So just could you share any early thoughts on considerations you have in building up the fund management platform and whether you be considering new platforms, existing public private? And the second question is back to the legacy U.K. development platform, the $800 million worth of carrying value sounds like there is being prioritized to recycle as quickly as you can? Or would you say it's fair to expect like within the next 12, 24 months, this will be totally fully recycled. Thank you.

Somehow, I guess, people really want us to commit to certain targets. And once -- and the reason I'm hesitant is because once I throw something out, right? I do want to walk back from that. But okay, to address your second question first, Wilson, first of all, U.K. development platform my aim is to monetize that all of it this year, but I will say it's not easy, I mean, but that's our aim. I mean -- so let's see if we can hit our own internal targets. For the fund management side, as I mentioned earlier, I mean, it's something wished we had paid a bit more attention to it and accelerated the efforts there. As you know, the last time we tried was to inject our U.K. properties and IPO in a REIT listed in Singapore. So -- that was a big colossal effort. And when that didn't go through, I mean, I think we kind of focused on other things. But really, it's now time to monetize more of our, for instance, our living sector portfolio of $3.7 billion that I put up earlier. I have to say that it will be mostly in private platforms, private formats. I don't think the capital markets are suitable for some of the assets that we have. And for the ones that we wanted to listen in the in a public format like the 3 commercial buildings in the U.K. are now still not the right time. So I think need a while more before the office sector and the capital markets come back in favor. So probably focusing more on the private side. But we do have a lot, I mean, that we are in a lot of discussions on some of our assets. And also, as I said, in addition to this, I mean, we thankfully do have 2 public platforms under fund management. So 1 is obviously CDL Hospitality Trust. And that we are also looking at how we can be a better sponsor to the -- and the other is, of course, Irene also listed on the exchange. I mean so these 2 REITs, I mean, we are also paying a lot closer attention to see how we can work better with the REITs. .

Okay. I'm mindful of time. So I just want to have to take 2 more here, and then I got to move over to the media group. So yes, maybe Terence, you kicked off. .

Is Terence from UBS. Just in the spirit of clarity, what is the time line for midterm defines for ROE and gearing? And relatedly on ROE, I think it's good that you're guiding for PATMI growth and the dividend policy is also welcome as well. But I think the equity denominator would still grow over time by a faster pace, making it harder to grow ROE. So then is it fair for us to expect a capital reduction exercise ensure you mentioned outsized dividend? And specifically also, is that likely is there a likely consideration to be in the same time frame as we think about the first question on ROE and net gearing. .

I have a last one, if I may. Residential, the margins on the consolidated projects look a bit low. -- think it's 4.7% versus 10% in the last year. The question is why? And perhaps a comment on the recognitions and margins outlook for 2026. Thank you.

So I'll address your question first, Terence. I again, because I want to wait until the proper juncture. So when our internal strategic review is completed before I really give you a time frame. But I think you would have heard me in previous and things I have thrown out ROE target, a midterm ROE target of 8%, okay? It's not easy for us to get there, as you mentioned, right, the shareholder equity component is very big. So -- but therefore, it's something that we will really need to drive our fund management at a faster pace if we aim to get there, right? I mean -- so that's 1 way of really lifting our ROE. So we do need to be more efficient -- and we -- I can't comment on like capital reduction on that at the moment, margins. You want to talk about it, Yim Ming?

Yes. Actually, for the margins, if you exclude the foreseeable losses that we made for China properties, I need to give credit, our residential margins actually improved between the 2 years. So when they calculate the 4%, I believe that has been factored in the foreseeable losses. And that's actually the main reason. So I think in terms of margins, very healthy, I would say, yes. Okay. Thank you. .

Vijay, the last time I'm going to move over to the media team. .

Vijay here from RHB. Maybe just 2 quick questions. Firstly, on Delphi Archer, there was a plan to unlock value for our strategic developments. Maybe any update on that? And my second question is in terms of Singapore residential land banking, I see you are a bit more active in terms of EC sites. Maybe can you give a bit of idea? Is it a derisking strategy and risk versus returns on EC versus private site, some color on that. Thank you. Did you

Sorry Vijay, did you say unlock strategic divestments?

No. Delphi Orchard, there was a...

Delfi Orchard I see Yes, Delphi Orchard into. .

So thank you -- so in terms of your question, the first 1 about value. That is 1 way as well is by really doing so-called our portfolio optimization. So that's the enhancement part, right, of our GET strategy. And it's really looking at our existing assets and seeing how we could really enhance and unlock the value there. So we are doing 2 redevelopments at the moment. One is, as I mentioned earlier, Newport resident -- Newport Plaza, which is the entire complex that used the Fuji Rock stars, the other is Union Square. So we will continue to drive forward with this. But at the same time, you also have to understand that I've got to keep our gearing and our cash in mind. I started all the redevelopment projects at the same time, so there's also like we could redevelop City house, we could apply for a CBD incentive scheme of 25% bonus GFA and redevelop that. We can also, as you have mentioned, we unblock Delphi. I mean -- and it wasn't a lot of money because we owned a substantial part of it. But if we amalgamated that with Claymore Connect behind Orchard Hotel, that would also become a very sizable mixed-use development. And we have already gone some steps along the SDI, the strategic development incentive scheme. But I do not want to start these projects anytime soon because they now have 4 ongoing re-development projects, right? Already the existing 2 will finish in 2028 and 2029. And then top up another tool, and I will have loss of income as well when I demolish those buildings, it will put a huge strain on the group. So I think there's something we need to pace out and I cannot do it all at once. So that's one. Sing resi, you asked about EC. Yes, EC has certainly been the flavor of the day for the last, I would say, 24 months, all developers have gone very aggressive for EC. I think because EC has always been a very attractive product that allows upgraders to eventually get into the private residential market when the EC finishes it's minimal occupation period, right, so it becomes fully private. So great and then the income ceiling was formally lifted, as you know, from 14,000 to 16,000 and there's been talk about potentially lifting it further. So ECs have really been a very attractive way for upgraders to enter the private market and and it's been in high demand, which hence has driven very aggressive bidding in the last 2 years now. So we have -- we do participate in EC sites as well, and we have been fortunate to win EC sites along the way, including 2 last year. But that doesn't mean that's all we look at. I mean as I said, Tanjong rum, I mean, it was a nice win for us, and that's near Kaland all that. I mean it's a great area to be in. So that's not easy. So I think we will continue to look at sites that are well located and that have locational attributes that we feel will be very attractive to buyers. .

Okay. I'm going to quickly move over to the other side of the room. I see Dexter. Dexter why dont you take the question from the meeting?

Dex from Limburg news. 2 parts. First part this question on the U.K. and China. I know you took markdown there as well. Can I clarify if you guys are playing by opto sell both the U.K. and China assets, how much discounting are you expecting if you all really want to sell? Because as you mentioned, the capital markets in very soft in those 2 parts. The second one, you mentioned before you wanted to U.K. REIT, and I think you mentioned that just now as well. So is the plan on the shelf for now? And -- in terms of private funds, are you talking about setting out a private fund within CEO? And the third one, in terms of strategic of your core businesses,

Firstly, in terms of our divestment I mean, we will go through meticulously right into our portfolio, especially for our noncore and underperforming assets. across all asset classes, right? I mean, be it residential, commercial or hospitality, and we will divest assets that make sense. You all remember in 2024, I think we divested a hotel in broader Colorado, right? I was not even Denver is broader and people -- I'm not sure how many people hotel and border. And then we divested for about and at a gain of about SGD 80 million, right? So -- so it's things like that, right? I mean we look at it fairly. And in some cases, we try to always divest above, obviously, our book value, okay? -- but it may not always be possible. So the flip side is looking at if you keep holding on to the asset, right, how much are you emerging in terms of the cash? I mean, is it loss making? How much debt is on the asset the U.K. development portfolio that the legacy portfolio are put up. I mean that was -- before we sold ransom sales was around SGD 1 billion at the height of the interest rate environment in the U.K. I mean, we're paying 6% interest a year on that whole portfolio -- so that's a lot of waste of money. That's $60 million a year. So I think we ransoms, we divested and evincis going to probably punch me once I say this, but that was at a slight loss. It was about GBP 10 million, I think. So -- but you know what, I mean, you take the good and the bad, right? I'm removing quite a bit of debt off my balance sheet as well. So as we go forward, we assess each asset on the individual basis. Same with China right now is really bad time. You've seen other developers that have exposed to China as well. If you -- I mean, we are still confident in our residential sites, especially our Sinn, right? -- that should do very, very well, exceptionally well. But yes, commercial is uninvestable right now in China. So is going to be challenging for us to divest these. We may have to take some haircuts on it. But the head count is too big. I mean, the good thing about our group is that we do have some holding power as well. I mean, as I've always said to you all before, I don't want to divest just for the sake of meeting divestment targets that are committed to, right, and leaving lots of money on the table. I mean, that is a poorer outcome for CDL if I do that. .

Secondly, on private funds, you're asking whether the funds would be within CDL? Well, when I say private funds, I'm referring to starting a private equity fund that would third-party capital. CDL may be part of that capital stack, maybe an investor as well, an LP in the fund, but it would be a small one. I mean, we would not exceed like 10% or 20% of the fund. I mean we may have to put our money where our office, right, if we're going to start a fund. But it will be largely external funds that we would hope to attract because that's true monetization of assets, right? If I sell the asset in the fund, and I'm 80% of the fund, then what am I doing, right? So that is my intention for the fund management side, private funds.

Strategic view does it include management? Thank you for trying to work me out of a job. I appreciate that Dexter. So -- but I hope it doesn't include management. I mean, if it does, then I'll accept whatever conclusions it comes to, but it does not include reviewing the Board or management. I mean, this is really focused on our strategy. focused on our guidance, focus on our portfolio and asset base. I mean -- so things that really matter the CDL. Yes, I understand Board and management, important to CD as well. But that is up to the shareholders to decide. So.

Quickly to around 2 things then. Obviously, you said last year was a year of reflection. Looking at the U.K. portfolio, what do you think went wrong there in the first place? And secondly, can I ask since the Chairman does have strategic -- edition for the company. What do you think of the review? And do you have a vision of what the strategy would look like. .

Sorry, on your first question, you asked me what went wrong, where --

The U.K.

The U.K. portfolio, high interest rates...

The U.K. portfolio as in the legacy land bank. So I think back then, I mean, it was before my time as well. So it's understandable that that we wanted to get into U.K. developed market, but we had to get an external manager because we did have a team on the ground. So I understand. I think some of the things that went wrong some of the sites were potentially at above market values. So as you know, it always starts with getting a good land price, right? If your land price is wrong, it's quite difficult to catch up subsequently. It's quite challenging to catch up. And so that's 1 of them. And secondly, I think some of them the development manager underestimated the complexity of development permits as well, which is why the whole process has been so lengthy and drawn up -- so I would say those are some of the lessons learned as well for CDL as well. So going forward, obviously, now we have our own U.K. development team. So if we do undertake developments at least, we have our own team on top of it, although team is not involved in that because that 1 is exclusively under the development of a third-party manager. So again, it's things like that we work towards resolving and unlocking the value there or at least unlocking the capital there. so that we can put it to a better use. I as I said, again, I mean I can pass the mic to our esteemed Chairman to answer, but I really don't think it's necessary because at this stage, not of us can comment much on the strategic review, right? In fact, I probably already said more than actually I said today. So if you want to ask him what does he think of the process that he like it or not like it. I mean I don't know how he's going to answer that considering we are not supposed to comment on it because it's going to be a very comprehensive review. But as I've answered your question earlier, suffice to see, right? I mean Board and management are not under the review. So let us know if you like us to be under the review as well. I'll put that out for consideration. If you don't think we're doing a good job. So

Okay, moving quite a long because I know that some of you have to go to the RADARS launch in a short while. So let me just move down to anybody in the friends from the media that is over on this side. If there's any questions pertaining to that? No. Then I had 1 also from Golar from the Edge online, which has to do with City Plaza. I'm not sure if Mr. Sherman will want to comment like like what are the chances of that? And active sales mandate, what is the expected proceeds from the Board denials if it does happen. .

Actually, it's attractive side. I think the -- we are very sparse shareholder in the complex. So they managed to get 80% is some ground. I believe there will be some interest from the potential investors, and I wish him for luck. Thank you. .

So just to clarify, we do have about 16 units on -- is there no there is a funding question. Okay. I'll just give this to the last 1 on the .

Yes. This -- can you give us a hint of what's the current value for U.K. office portfolio at this point in time? The reason why I ask is, if you add up the $800 million the U.K. land bank, Moxi to be sold to CDL HT $475 million. Your PRS, $3.7 billion. That's a relo to $5 billion. So can we say we have in excess of $5 billion to be sold over the next 3 to 5 years. .

Very, very astute and very good, Martin. As I said, again, we won't comment on the targets. Anor, we confirm what you just mentioned, but you're certainly very steel analyst.evening. .

So carrying value of the 3 properties that we have right now is about GBP 870 million. .

So it's GBP 870 million. So that's approaching EUR 6 billion. .

Okay. I'm going to scan the room for more time. Is there any more funding questions on the room, the floor. If there's not, then is there any other comments from the panelists at this -- he will bring this briefing to a close. So thank you very much, everyone, for coming. There's also refreshments being served outside. And for those that are joining us on webcast, thank you very much for taking your time this morning, and we hope to see all of you soon, very soon again. Thank you very much, and have a good year ahead. .