Cromwell Property Group Aktie

Thank you for standing by, and welcome to the Cromwell Property Group Half Year Results. [Operator Instructions]

I would now like to hand the conference over to Mr. Jonathan Callaghan, Chief Executive Officer. Please go ahead.

Good morning to everyone, and thank you for joining us today for Cromwell Property Group's results for the half year ending 31 December, 2025.

I open today's presentation by acknowledging the traditional custodians of the land from where this call is being hosted, the Gadigal people of the Eora Nation, and pay our respects to their elders past and present.

On Slide 5, we outlined some highlights over the 6-month period. Pleasingly, we have been able to deliver growth in key areas. Importantly, operating profit increased 1.5% on the prior corresponding period to $55.9 million. Additionally, since June last year, we've been able to grow assets under management by 13.6% to $5 billion.

Cromwell's investment portfolio, which continues to perform strongly with sector-leading occupancy of 97.2%, recorded a valuation uplift of $72 million. This valuation increase has driven an increase in the group's NTA, up 3.6% to $0.58 per security.

Our balance sheet remains in good shape. At 30.2% gearing, gearing remains at the lower end of our stated gearing range of 30% to 40%, and we have ample liquidity of $418 million to fund growth opportunities and capital expenditure. Our interest rate hedging profile is robust with 71% of our net debt being hedged at period end.

Over the past 6 months, Cromwell is pleased to have delivered on key pillars of our growth strategy outlined on Slide 6. This includes the launch of a new wholesale office fund to acquire 100 Creek Street in Brisbane, an asset benefiting from one of the most positive outlooks in Australian office. The capital raise is on foot and remains on track to raise more than $100 million.

Cromwell's Barton1 development in ACT is underway and is progressing on time and on budget and completion is expected in April 2027. We are currently looking for capital partners for this project, which we hope to introduce by completion. Preliminary discussions on this front are progressing positively.

In December 2025, we announced expansion of the Cromwell platform through the acquisition of Terre Property Partners. This platform brings strong industrial investment management and development capability to Cromwell as well as $560 million of assets under management.

Cromwell has taken a 19.9% stake in a portfolio of industrial assets managed by Terre Property Partners, currently called the Cromwell Industrial Partnership, which we'll describe in more detail later. The remaining 80.1% of this portfolio is currently owned by Straits Trading Company, a preeminent Singaporean investment conglomerate. Our intention is to recapitalize and grow this vehicle. This capital raise is planned to commence next week.

Turning to Slide 7. Despite the current interest rate environment, we believe the valuations have stabilized. This will support our investment portfolio as well as capital demand for income-producing assets and projects. Across the market, economic rents continue to comfortably exceed prevailing market rents. Research from CBRE shows office sector economic rents have increased by 50% to 70% since 2020, while industrial economic rents have risen by 60% to 90% over the same period.

At the same time, new development remains challenging for projects without cost and income certainty. As a result, the future supply line will be constrained. Between 2025 and 2030, supply is forecast to fall below 10-year average across every major sector, with the tighter supply emerging in shopping center and office sectors. Higher interest rates will continue to make it difficult for new speculative projects to commence and construction costs are expected to rise faster than inflation in every capital city.

This dynamic is particularly acute in Queensland, where major infrastructure projects are competing aggressively for already scarce labor, a story that we see driving demand for our 100 Creek Street, Brisbane capital raise.

Set against ongoing population growth and limited new supply, we see conditions that are supportive of a tightening commercial real estate vacancy, which in turn underpins the positive outlook for rental growth and capital demand.

I will now pass to Michelle, Cromwell's CFO, to provide an overview of the financial results and capital management for the half year.

Thank you, Jonathan. On Slide 10, you'll see that Cromwell reported an increase of 1.5% in operating profit to $55.9 million, supported by the continued strong performance of the investment portfolio, which recorded property valuation gains of $72 million during the period.

The group reported funds from operations of $55.3 million, equivalent to $0.0211 per security, reflecting a payout ratio of 71%. Net tangible assets increased to $0.58 per security, up from $0.56 per security at 30 June, 2025, largely due to the strong performance from the investment portfolio.

We are focused on maximizing the value of our investment portfolio, driving further improvements in NTA and the execution on our growth strategy, which, over time, should close the gap between NTA and our security price.

As Jonathan mentioned, our gearing is at the lower bound of our target range at 30.2%, giving us plenty of balance sheet capacity and significant headroom under our debt covenants. With $418 million in liquidity, we've got the flexibility to respond quickly to seize opportunities to deploy capital into growth opportunities as they arise.

71% of our debt is protected with derivatives, and this high level of interest rate hedging will continue to provide protection from increasing market interest rates over the coming years. At the same time, the construction of the hedge portfolio allows us to participate in interest rate falls, should inflation moderate, causing the RBA to reverse course.

Turning to the earnings table on Slide 11. Investment and asset management EBIT increased by 90%, supported by higher fee income from Cromwell's listed securities joint venture and fees generated from the ongoing Barton1 [indiscernible]. We are taking a disciplined approach to managing corporate costs, which have stabilized following the exit from Europe in calendar 2024.

Savings are also being delivered through reduced net financing costs, which have decreased from $28.9 million at 30 June, 2025 to $15.2 million for the 6 months to 31 December, '25, due in large part to the significant debt reductions realized from the European asset sales.

Slide 12 provides an overview of the movements in Cromwell's balance sheet over the last 12 months. Prudent deployment of capital, diligent asset management and pleasing improvement in market valuation sentiment, all drove growth on the asset side of the balance sheet, both on a total assets and an NTA per security basis.

Our balance sheet strength is a key competitive advantage, and we will continue to carefully manage liquidity and interest rate risk with the objective of supporting our expansion ambitions.

I'll hand back to Jonathan now to review the investment portfolio and investment management platform performance.

Turning to Cromwell's investment portfolio overview on Slide 14. Cromwell's investment portfolio of 8 wholly owned assets recorded positive valuation movements of $72 million over the 6 months to 31 December, 2025, with all assets being externally valued. This uplift was driven primarily by strong leasing outcomes at 400 George Street, Brisbane, along with modest portfolio weighted average market cap rate expansion of 8 basis points to 7.15%.

Portfolio occupancy remains high at 97.2%, providing a solid foundation for income performance. Notably, 68% of portfolio income is derived from our top 5 tenants, with approximately 40% coming from Australian government tenants across both state and federal levels outlined in the table on Slide 15.

Also on this slide, you can see the investment portfolio's lease expiry profile and changes to it since 30 June, 2025. The change to the 2027 expiry profile is primarily driven by government lease extension at 400 George Street, Brisbane.

To further underscore the high caliber of Cromwell's property team, our facility management team was recently recognized as the FM Organization of the Year by the Facilities Management Association of Australia, a very strong endorsement of the expertise and commitment embedded across our platform.

On the ESG front, the investment portfolio's GRESB green score improved by 12 points to 90 out of 100, driven by renewed Green Star certifications. This result is an 11-point outperformance against the GRESB average of 7.79, and reflects our continued focus on sustainability and operational excellence.

We have included some case studies you can read through on Slide 16 relating to capital works, which have assisted leasing and, in turn, valuation outcomes. As a fully integrated real estate management team, providing asset, property and facilities management, we focus on all aspects of real estate performance and tenant amenity, driving tenant retention.

Turning to Slide 18. Cromwell's investment management platform grew by $560 million to $2.8 billion over the half year to 31 December, 2025, following the acquisition of the Terre Property Partners industrial platform. The Cromwell Direct Property Fund has now commenced its wind-up process following the periodic liquidity event approved by investors in late 2025 and has already sold 545 Queen Street, Brisbane. Our 60% interest in Oyster increased by $24 million, largely due to valuation gains, while Cromwell listed securities were up $116 million.

We have provided further details on the acquisition of Terre Property Partners on Slide 19. The Terre Property Partners team brings to Cromwell a deep sector expertise and impressive track record and incredible knowledge of the assets they manage.

The Cromwell Industrial Partnership portfolio, outlined on Slide 20, comprises 7 high-quality logistics assets located across key hubs in Bayswater, Salisbury South and Port Adelaide. The portfolio maintains a strong occupancy rate of 98.4% and has a weighted average cap rate of 6.1%. This portfolio, comprising real estate largely development by the platform, delivers stable, dependable income underpinned by long-term and diverse tenant base.

Looking ahead, our strategy is focused on bringing new capital partners alongside us to accelerate growth. Together, this platform and portfolio forms key foundation for core -- a core pillar of the group's future growth strategy.

An update on our Barton1 development in the ACT is shown on Slide 21. It highlights the strong progress of this development. The project remains on schedule and within budget. We look forward to welcoming new capital partners into what will be a highly compelling investment opportunity.

Our near-term outlook on Slide 23 remains firmly focused on the ongoing expansion of our third-party assets under management. Growing our investment management platform is central to our strategy. We are progressing a strong pipeline of new products across the industrial and office sectors designed to meet the evolving needs of our capital partners while strengthening our presence across Australia's core real estate markets. Work will continue in the retail sector, which remains a focus.

Alongside organic growth, we will continue to deploy capital selectively to accelerate the expansion of our platform. Strategic acquisitions remain a key lever for scaling our investment management capabilities, and we are actively assessing opportunities that align with our disciplined approach and long-term vision.

Maintaining strong occupancy across our investment portfolio remains a crucial priority. Our active asset management approach, backed by targeted leasing campaigns and value-add initiatives, continue to support long-term income resilience. As we work to grow WALE and maintain high occupancy, our focus remains on delivering consistent high-quality outcomes for both tenants and investors.

We continue to manage the balance sheet with discipline. This means deploying capital in a measured and responsible way, preserving gearing headroom so we are positioned to act when compelling opportunities emerge. We are managing our financing proactively to protect interest costs and safeguard liquidity in the current interest rate environment. This discipline remains fundamental to our strategy and our capacity to continue to grow.

Finally, turning to guidance. The group reaffirms the expectation of an annual distribution of $0.03 per security for the 2026 financial year to be paid quarterly.

Thank you for dialing in today to hear our update. I'll now hand back to the operator to open the question-and-answer portion of this call.

[Operator Instructions] The first question comes from the line of Adam West with JPMorgan.

I'm just wondering on the 400 George Street asset, it looks like NPI is down 12%, but the occupancy has only dropped 50 basis points. I'm just wondering if you could provide some color around, I guess, the drop in the NPI from HY '25 to '26.

Sorry, Adam, the line wasn't good, but I think your question was about the fall in net property income for 400 George Street. Primarily, that's driven by the federal government left a reasonably large tenancy there. We have re-leased that space, but there is a hole between the tenant leaving and the new tenant arriving, and that's what's behind that.

Okay. That's clear. And I guess what were the leasing spreads on the old tenant leaving and the new ones coming in?

It's about 4%, 5%.

Yes. That's clear. And I guess my next question is just on 207 Kent Street. Do you just have some color, I guess, on the lease-up profile and how your level of inquiry on the assets is going?

It's ticking along. We're doing deals. At the moment, we're in a bit of a poorer performance period due to some handbacks, but inquiry remains reasonable. Inspections are happening. So it seems to be going okay.

It's just a little under 2,000 square meters in the last half. And we'll probably fit out another floor at least with some spec fit-outs, which seem to turn out fairly quickly once they're built.

Yes. That's clear. I guess just on to the Barton1 development. I'm just wondering what was the impact of development fees on funds management income for this half? And then, do you just have a guide around how much those development fee -- the development income is going to impact over the next half?

Well, we haven't landed on the timing for recognition of the fees.

Yes, the fees in this period were about $0.5 million.

Yes. It wasn't very much this half.

The next question comes from the line of Yingqi Tan with Morningstar.

Just a follow-up to your -- Adam's previous question on leasing spreads. Just wondering that 4%, 5%, is that positive or negative?

Positive.

Okay. Great. And just wondering what your incentive level was for the past 6 months and how it compared to the previous period?

Well, the [ legal 81 ] was 39%, remains to be seen what the incentive will be on the -- and the reversion will be on the option extension from the other government tenant at 400 George Street, Brisbane through determination. That made up the bulk of the leasing over the last 6 months.

As a general comment, we haven't noticed any sort of improvement or deterioration of incentive levels.

That's fair. And final one on Victoria Avenue. I saw that, in this half, you've included that in your AUM for the funds platform. Just wondering how that's going? Is the intention no longer to sell these assets?

It's not included in our assets under management.

It's included in the investment management total AUM because we're continuing to collect management fees on that asset while the sale process continues. So we're still expecting that it will complete this financial year, and we're assisting the purchaser with the satisfaction of CPs for the financing.

[Operator Instructions] There are no further questions at this time. With that, we conclude our conference for today. Thank you for participating. You may now disconnect. Thank you.

Welcome to the 2025 Annual General Meeting of Cromwell Property Group. My name is Gary Weiss, and I am the Chair of Cromwell Property Group. I'm also the Chair of today's Annual General Meeting.

I warmly welcome all Cromwell securityholders to the meeting, whether you're joining in person here at 308 Queen Street or through the online platform provided by our registry MUFG Corporate Markets. The Cromwell Board thanks all security holders for their participation.

Today's Annual General Meeting is held as a hybrid meeting. Cromwell is deeply committed to diversity and inclusion, and we believe the hybrid meeting format creates the most inclusive meeting environment for our very diverse security holders and stakeholders. To further promote engagement and transparency, we will upload an archived copy of the webcast to our website after the meeting.

To begin, I acknowledge the Traditional Custodians of the lands on which we meet today, and pay my respects to their Elders, past and present.

I would now like to introduce my fellow directors. Joining me here in Brisbane, we have, to my left, our Managing Director and Chief Executive Officer at Jonathan Callaghan. Next to Jonathan, we have Independent Nonexecutive Director, Lisa Scenna. And next to Lisa is Independent Nonexecutive Director, Joseph Gersh AM. And on my right, we have Independent Nonexecutive Director, Tanya Cox; and next to me, our Independent Lead Deputy Chair, Eng Peng Ooi. Via our conference call, we have Nonexecutive Director, Jialei Tang, who is joining from Hong Kong. Our Company Secretary, Michael Foster is here in Brisbane to coordinate the virtual component of our meeting. Mr. Nicholas Rozario is also present today. Nick is a partner of Deloitte Touche Tohmatsu, which is Cromwell Property Group's auditor.

Later in the meeting, you will have the opportunity to ask questions about the financial statements and the independence of the auditor in relation to the conduct of the audit.

As a matter of housekeeping for everyone here at the Brisbane meeting location, in the unlikely event that we need to evacuate the building, please follow the emergency exit signs and directions of staff to safely move down the stairs and towards our assembly area and Post Office Square. Please do not use the lifts.

Now I would like to formally open the meeting. I've been informed that a quorum for the meeting is present, and I formally declare the meeting open. To those here in person and those who have dialed in today, thank you and we welcome you to Cromwell Property Group's 2025 Annual General Meeting. I will give a brief introduction before handing over to Jonathan to provide some remarks.

The 2025 financial year marked a pivotal chapter in Cromwell's transformation. Thanks to the dedication and focus of our team, we have made substantial progress in simplifying the business and strengthening our financial position. The successful divestment of $1.6 billion of noncore assets, including a complete exit from our European platform, was a major milestone. These actions have significantly reduced group gearing and position Cromwell for sustainable long-term growth.

Before we get started, I would like to acknowledge Rob Blain, who stepped down from the Board in August. Rob has played a key role in Cromwell's evolution since 2021. And we thank him for his leadership and outstanding contribution. Pleasingly, Rob will continue to support the group and then advisory capacity.

In line with our streamlined operational model, we have elected not to replace Rob's position. And following a Board-level review, Board fees have been reduced by 22.9% in FY '26.

In June, ESR exited Cromwell's register, selling its 30.69% stake in 2 tranches. The first 10.8% was placed with a mix of institutional and high net worth investors. We thank you for your support and Cromwell strategy. The second 19.9% was acquired by Brookfield, and we welcome Brookfield on to the register and view their investment as an endorsement of Cromwell's direction and the significant progress we have made over the last few years.

Cromwell Property Group manages assets valued at $4.2 billion at 30 June 2025. Our in-house team looks after more than 170 tenants in Australia across 16 properties. Cromwell's investment portfolio continues to lead the sector with occupancy at 97.6%. Valuations are showing signs of stabilization, supported by proactive asset management and ESG enhancements to drive positive leasing outcomes, which underpin security holder returns.

Following our simplification, Cromwell's growth strategy is clearly defined. We are focused on core markets and sectors while diversifying our capital partnerships. Execution of that strategy is already underway, highlighted by 2 major initiatives. First, our office development in Barton and the ACT, which we plan to sell to a Cromwell managed vehicle. Secondly, the conditional acquisition of the Straits Industrial portfolio and management platform which we announced earlier today. Jonathan will share more details on these shortly. These initiatives mark important steps in strengthening Cromwell's investment management business. Cromwell is now a well-capitalized business with a clear vision. We are well positioned to pursue value-accretive growth opportunities as market conditions continue to improve.

Once again, thank you for your continued support and & in Cromwell Property Group. I will now hand over to Jonathan for a business update.

Thank you, Gary. Good afternoon, and thank you for joining us today. Operationally, our investment portfolio is performing exceptionally well. Occupancy is at a sector-leading 97.6%, and our weighted average lease expiry sits at 5 years. The team leased over 51,000 square meters during the 2025 financial year, including a 15-year pre-lease of the Commonwealth government at our Barton ACT development.

As Gary mentioned, FY '25 was a transformative year for Cromwell. We simplified our business and strengthened our financial position, completing $1.6 billion in noncore asset sales. This reduced group gearing from 38.9% to 28.2% in the 12 months to 30 June 2025. This strong foundation allows us to provide a distribution guidance for the first time in several years of $0.03 per security for FY '26, underpinned by secure stable income streams. Notably, 69% of our portfolio income is derived from government, Qantas and metro trains.

As Gary noted, following several years of transformation, the group's balance sheet is now well positioned to support upcoming growth initiatives. With low gearing at 28.2%, $504 million in deployable liquidity and streamlined funding structures, Cromwell is equipped to transition toward a capital-light investment management model.

Financially, Cromwell delivered an operating profit of $108.6 million, down 20% from FY '24 due to the European exit and a one-off fee in the prior year. Funds from operations were $105.7 million, equating to $0.04 per security with a payout ratio of 74.2%, up from 59.8% in FY '24. Net tangible assets were $0.56 per security, impacted by $97.4 million fair value decline in the investment portfolio valuations in the first half of the 2025 financial year, which was partially offset by a $3.5 million uplift in the second half.

Australian earnings remained strong with $157.4 million generated from the investment portfolio income and $8.4 million from the investment management fees.

We also made significant progress in cost management. Corporate costs were reduced by 14.5%, and net financing costs were down 40%. In June, we renegotiated our bilateral debt facilities, securing more favorable terms, greater covenant flexibility and extended duration. Our weighted average drawn credit margin improved from 1.8% to 1.3%, while our cost of debt remained stable at 4.9%.

We're proud of our ESG achievements with an 11% reduction in absolute emissions meeting our Scope 2 net zero targets and renewable energy targets. We maintain high NABERS rating across our investment portfolio and Cromwell Direct Property Fund. We have also launched our reflect reconciliation action plan, reinforcing our commitment to First Nations engagement.

Cromwell's investment portfolio comprises 8 assets valued at $2.1 billion. It is performing strongly as valuations across the market are stabilizing. The investment portfolio saw $3.5 million uplift during the second half of the 2025 financial year. Occupancy is at 97.6%, the highest in our peer group, up 3.5% compared to the 2024 financial year. The portfolio WALE sits at a healthy 5 years.

The top 5 tenants heavily weighted to government anchors the portfolio and contributed 69% of income. Leasing momentum continues with activity totaling more than 51,000 square meters over the financial year.

We have announced the start of our development of a new office asset in Barton, ACT, for a commonwealth government tenant. The government tenant has committed to a 15-year lease with an option to extend for another 5 years. The building will be a 19,800 square meters, fully electric and designed to achieve 6-star environmental ratings. We're targeting completion in 2027. This will be a very attractive project to bring in capital partners when the time is right.

In more recent news, Cromwell has entered into a conditional agreement to acquire a 19.9% interest in the Straits Real Estate industrial portfolio and its associated management platform, Terre Property Partners. This portfolio comprises 7 high-quality industrial assets valued at approximately $480 million located in key logistic hubs across Victoria and South Australia. The acquisition valued at approximately $48 million will be funded from existing group liquidity. It is expected to deliver stable recurring income to the group through distributions from our partial fund ownership and from management fees. We anticipate group income contribution of approximately 1% to FY '26 earnings with further upside as portfolio growth is achieved. This strategic acquisition aligns well with Cromwell's existing portfolio, enhancing asset and income diversification while strengthening our position through new capital partnerships.

As you may be aware, we recently announced the expected wind up of the Cromwell Direct Property Fund. The responsible entity for this fund has commenced the process of winding up the fund following the conclusion of its recent liquidity event. With withdrawal -- withdrawal requests exceeding 50% of units on issue, the fund will progressively realize its assets and distribute net proceeds to unitholders. The wind-up is not expected to materially impact Cromwell's FY '26 operating earnings, and the group distribution guidance of $0.03 per security remains unchanged.

Unitholders of Cromwell River Park Trust, which owns Energex House in Brisbane, voted in favor of a 2-year extension on 6 December 2024. Similarly, unitholders of Cromwell Property Trust 12, which owns 19 George Street in Dandenong in Victoria, voted in favor of extending the trust for a further 2 years to December 2027.

Looking ahead, our growth strategy is clear and will be executed with discipline. We will continue to expand our funds management platform through 3 channels: organic fund creation, scaling existing products and strategic acquisitions or mergers. We remain focused on traditional sectors of office, industrial and retail, where we have expertise and a strong track record of performance.

In the year ahead, Cromwell will leverage its strong capital position and improving market conditions to accelerate growth in our funds management business, driving recurring fee income through organic expansion and strategic acquisitions with capital partners. We remain committed to maintaining high occupancy across the investment portfolio through active asset management and tenant engagement, while ensuring prudent capital management to support strategic growth and long-term value creation.

The group's expected annual distribution guidance of $0.03 per security for the 2026 financial year remains unchanged. And I'll hand back to Gary now to undertake the formal part of the meeting.

Thank you, Jonathan. We now move to the formal part of the meeting. Cromwell Property Group is a stapled enterprise consisting of Cromwell Corporation Limited, which is referred to as the company, and the Cromwell Diversified Property Trust, the responsible entity of which is Cromwell Property Securities Limited. Cromwell Property Group securities are stable so meetings will be held concurrently. I will now address some meeting formalities.

Shortly, security holders will be asked to vote on 4 ordinary resolutions to be put to the meetings. In accordance with the Corporations Act, voting on each resolution will be conducted by a poll. I appoint Rachel Teo of MUFG Corporate Markets as the returning officer to conduct the polls.

I address the following comments to attendees here at the Brisbane meeting location.

Security holders and proxy holders who have registered to vote will have received a yellow voting card. You'll be asked to complete your voting card, and they will be collected at the end of the meeting. Only security holders or their duly appointed corporate representatives or attorneys and proxy holders are entitled to vote. For proxy holders, the for, against and abstained boxes will only be used to record open or discretionary votes that you represent. Directed votes will be counted as further the voting direction lodged. Nonvoting security holders will have received a blue nonvoting card, and visitors will have received a white visitor card.

Turning now to those attendees participating online, I make the following comments for your reference. Security holders and any proxy holders holding open proxies who registered to vote at today's meeting will need to click on the Get a Voting Card button and follow the prompts to receive an electronic voting card for each of your holding proxy holder appointment to enable you to cast your vote.

In line with statutory requirements, details of all proxies in respect of each resolution will be recorded in the minutes. Each Nonexecutive Director who holds Cromwell Property Group Securities has voted in favor of resolutions 2, 3 and 4. They have not voted on resolutions 5 and 6 because they are excluded from doing so by the provisions of the Corporations Act.

As Chair of the meeting, I intend to vote undirected proxies in favor of each of the resolutions.

The first item of business is advisory only, and you will not be able to cast a vote against resolution 1. Resolutions 2, 3, 4 and 5 relate to the company only. Resolution 6 relates to both the company and the Cromwell Diversified Trust.

Cromwell's security holders, proxy holders and security holder representatives will be provided with an opportunity to ask questions or comment on the resolutions. For security holders and proxy holders here at the Brisbane meeting, please signal for the microphone. Before asking a question, please do show your yellow voting card or blue nonvoting card, state your name and, if applicable, the name of each security holder you represent. For security holders and proxy holders participating online, you can ask a question by clicking on the Ask a Question button within the online platform and typing your question or comment on the box provided. Security holders and proxy holders can also ask questions verbally by phone. Information about asking a question by phone, including the number to dial to access the facility, is contained in the virtual meeting online guide. Please note that you may not vote by phone. Visitors are not entitled to ask questions, make comments or vote.

The business of today is set out in the notice of meeting sent to security holders. I will take that notice and all resolutions proposed today as having been read.

The minutes of the 2024 Annual General Meeting of the company were approved by the Board and have been signed as a true and correct record. Those minutes are available for inspection by security holders if required.

The first item on the agenda is the consideration of reports. Cromwell's 2025 annual report has been made available to security holders. It contains the financial report, director's report and auditors report for the year ended 30 June 2025. This item of business for consideration by the meeting is intended to provide an opportunity for security holders to raise questions on the report and on the performance of the group, generally. There is no vote on this item.

As I mentioned at the start of the meeting, Mr. Nicholas Rozario is present in Brisbane today. Nick as a partner of Deloitte Touche Tohmatsu, the financial auditor of the company for the 2025 financial year. Security holders have the opportunity to ask questions that are relevant to the conduct of the audit of the company, the preparation and content of the auditor's report, the accounting policies adopted by the company in relation to the preparation of the financial statements or the independence of the auditor in relation to the conduct of the audit of the company.

I confirm that we did not receive any written questions on these matters prior to the meeting. I now invite discussion and questions in relation to Cromwell's 2025 annual report and any questions for Nick as the company's auditor in relation to any of the matters mentioned. So does anyone have any question on resolution 1? Noel? Noel, I think just wait for the microphone so we can hear you.

Noel Ambler from the Australian Shareholder Association today, representing 16 shareholders and about 2 million shares.

Question really is for Jonathan. He gave a very interesting chat on what has happened in the past. But is it possible to expand upon what your plans for the future are. You've got to the stage now where you can do that. So something to interest us apart from what you've already told us.

Yes, sure. I mean thanks for the question, Noel. The strategy of the group is pretty clear. I think that what we want to do is really focus and use any capital that we have available to us to grow our investment management platform. So what does that mean? It means sort of a couple of things. The ways in which we use that capital, we can use it in a couple of ways. One, we could use some capital to co-invest or to see a fund for another client or another product for clients.

So for example, we could put $20 million in our $500 million -- $20 million in a $500 million fund and manage that $500 million fund and raise the other $480 million. That's one way in which we could use it. The other way in which we could use it would be to acquire small unlisted platforms. This -- a deal that we announced this morning at the acquiring the management platform Terre Property Partners is a good example of that. And what that does is that it brings -- that these acquisitions bring, it really brings a few things.

One is it brings an earnings profile because the businesses you acquire have management fees that they receive for managing their existing clients, but it also gives us a skill set. And what Terre Property Partners, in particular, brings us is really deep industrial experience that we're kind of lacking at the moment in this business. So it's a wonderful addition to our business, that particular skill set.

So that's what we're looking to use our capital for. What we're not probably going to do with it is really just buy an investment property and put it on our balance sheet and manage it for ourselves. That's probably not what we're going to do with our capital.

Thank you. Any other questions in the room?

No other questions.

Any online questions? No? And no phone-in questions?

Okay. So we'll now move to the second item of business. As this item of business relates to my reelection as a director of the company, I will vacate the chair in favor of our Independent Nonexecutive Deputy Chair, Eng Peng Ooi. Thank you.

Thanks, Gary. Before proceeding with Gary's reelection on behalf of the rest of the Board, we'd like to address comments we are aware of regarding overboarding concerns relating to Gary.

The Cromwell Board has full faith in Gary's leadership and time commitment to his role as Chair. This commitment is demonstrated by Gary's professional and productive working relationship with Cromwell's CEO and deep engagement on strategic opportunities for Cromwell. Over the last 3 years, Gary has attended 57 out of 58 Board meetings -- Board and committee meetings and only having missed a single 20-minute management update during that period due to being in transit at that time.

In unanimously supporting the reelection of Gary as a director of the company, the directors acknowledge Gary's current directorship aside from Cromwell and are of the view that they actually benefit Cromwell. In the director's view, Cromwell's benefit from the wide deep and contemporary government experience that Gary brings to bear on his role at Cromwell, given his current directorship as well as his extensive previous Board and Board commitments roles.

Moving on, the resolution relates to the reelection of Dr. Gary Weiss AM as a Director of the company. Dr. Weiss is Cromwell's Independent Nonexecutive Chair, and the notice of the meeting contains Gary biographical details. And resolution reads that Dr. Gary Weiss AM, who retires by rotation in accordance with the constitution of the Cromwell Corporation Limited and offers himself for reelection, is reelected as a director of Cromwell Corporation Limited.

The proxy count so far are displayed on the screen. I now invite Gary to give some comments to the meeting.

Thank you very much, Eng. Let me say that the journey that we've been on at Cromwell since I was first appointed to the Board has indeed been challenging. As unfortunately, many of you will be only too well aware, at the time I joined this Board, Cromwell had very significant debt. Indeed, going back as far as financial year '21 and '22 Cromwell owed $2 billion. Its gearing was well above the stated target ratio that had been announced to the market. And Cromwell also found itself in the position where 1/3 of its balance sheet was exposed to investments in Europe.

I'm very pleased to say that working closely as I have with my fellow Board colleagues and with Jonathan and all the team at Cromwell, we see Cromwell today having been substantially transformed. We have sold over $1.6 billion worth of assets over this time. We have reduced our debt down to just over $500 million. Our gearing today stands below 30%. We have a strong balance sheet, the envy of many other players in the property sector in Australia. We have a first-class management team. And I'm very excited about the opportunities that lie before Cromwell.

Today's announcement is but one example of, hopefully, more of these types of transactions that we're now able to do in the Australian market and our home market where we do believe we have a competitive position. And we look forward to -- and I look forward to playing a part in restoring the value that had been lost over the last few years and to try and restore not only security holders' asset position, but to grow distributions again over time.

Thank you, Gary. Are there any questions or comments on this resolution? Yes.

Noel, Australian Shareholders' Association again. The ASA is always concerned about the workload of our Chairman and directors generally. Gary, can you please reassure us of your workload responsibilities?

Reassured accordingly. Noel, thank you.

Any further questions? Okay.

No other questions, Eng.

Thank you. Cromwell directors unanimously recommend that security holders vote in favor of the resolution. Dr Weiss abstain from voting on the recommendation. If there is no further questions, please cast your vote.

[Voting]

There's another question. Sorry.

[indiscernible] shareholders. I'm a shareholder from homebuilt, and I have to express my disappointment. When you said you have any progress, what I see is a net [indiscernible] stopped down the last 2 years from $0.84 to $0.56 a share. And that's the reason a lot of people jumping out. I was too late for it.

Sorry. I appreciate the erosion of value. A significant proportion of the write-down in value related to the carrying value of assets in Europe. And we simply had to recognize that the assets on the open market were not worth the book value that they were carried at.

Secondly, as you would appreciate, with the increase in interest rates that we experienced post the COVID period, capitalization rates have expanded, and it's led to an overall decline in valuation through all properties of Australia, Cromwell included.

Would be nice if you kept it because the Australian dollar is nothing worse anymore, and you saw a nice European currency.

You raise a very good question, but fundamentally, the view of the Board was that Cromwell should never have been in Europe in the first place. So -- and over the period of involvement in Europe, the currency has swung around quite dramatically over that period, both positively and negatively. But thank you.

Any further questions? If not, please cast your vote. Thank you. I will now give the chair back to you, Gary.

Thank you, Eng. So we'll move to resolution 3, the reelection of Joseph Gersh as a director. The resolution set out in the notice of meeting. and details of Joe's biography are contained in the notice of meeting. The proxies are displayed on the screen. I now invite Joe to give some comments to the meeting.

Thank you, Gary. I won't detain the shareholders for too long by repeating what the Chair and Jonathan have said about the past several years. I'm very, very pleased that we've found the company now in the position that it's in.

The reason for nominating for a further period is that having been actively involved in what's going on in the past and responding to questions about the future, I would very much like to be involved in what happens in the future because I think it does have the potential to restore substantial value. I think it has the potential to be very interesting and hopefully, we'll achieve for the company and particularly for its shareholders, all that they would expect the Board to be able to do, given the opportunities which have now been created. So if I'm reelected, I look forward to participating in that process. Thank you.

Thank you, Joe. Any questions or comments on the resolution?

No online questions or comments.

Thank you. The Cromwell Directors unanimously recommend that security holders vote in favor of the resolution. Joe abstain from voting on the recommendation.

[Voting]

Okay. So we now move to item 4, which relates to the reelection of Lisa Scenna as a director of the company. Lisa is an Independent Nonexecutive Director of Cromwell, and the Notice of Meeting contained leases biographical details. I'll take the resolution as read. The proxies are displayed on the screen. I now invite Lisa to give some comments to the meeting.

Thank you, Gary. Good afternoon. My name is Lisa Scenna, and my career spans over 30 years in real estate infrastructure across Australia, the U.K. and other international markets. During my executive career, I worked for Westfield and Stockland in Australia in various roles. And whilst in the U.K., I worked for Langer and Morgan Sindall running their investment businesses. Since '19, 2019, I've been focused on my nonexecutive career. So in addition to Cromwell, I sit on the Ingenia Communities Board and Dexus Funds Management as well as in the U.K. Hardwood Property Group, Genuine Manufacturing and Gold Street Battery Fund. So my focus tends to be real estate, the built environment, funds management and infrastructure.

The last 6 years, Cromwell has been very exciting. It's been very busy, and it's also been very rewarding. And I would very much enjoy continuing working for and on behalf of shareholders, if so voted. Like Joe, I think I'd like to be here for when the business starts to kick goals in terms of having moved on from repositioning itself. So very much welcome the opportunity to serve again. Thank you.

Thank you, Lisa. Any questions or comments in the room?

No online questions or comments.

Okay. The Cromwell directors unanimously recommend that security holders vote in favor of the resolution, and to note that Lisa abstained from voting on the recommendation. Thank you.

[Voting]

Item 5 relates to the adoption of the remuneration report. The next resolution relates to the adoption of Cromwell's remuneration report for the year ended 30 June 2025. The notice of meeting contained commentary about the resolution. The resolution is set out in the notice of meeting. The proxy votes cast so far are displayed on the screen. I remind security holders that this vote is advisory only and does not bind the directors of the company or the company itself. The notice of meeting contains details of the Corporation's Act requirements in relation to voting on this resolution. Voting exclusions apply for this resolution, and those exclusions are stated in the notice of meeting. I've taken the notice as having been read. Any questions or comments on the resolution?

No online phone questions or comments either.

Okay. Thank you. Next item -- next resolution relates to the grant of performance rights to Jonathan Callaghan, Managing Director and CEO. The notice of meeting contained commentary about the resolution, and I'll take the resolution as read. The proxies are displayed on the screen. The notice of meeting contains details of the Corporations Act requirements in relation to voting on this resolution. Voting exclusions apply for this resolution, and those exclusions are stated in the notice of meeting. Are there any questions or comments on the resolution?

No online questions have come in [indiscernible].

Thank you. So if you could just now cast your vote. For shareholders and proxy holders participating online, please mark your electronic voting card and click on the Submit Vote button at the bottom of your card to lodge your votes. The Cromwell directors unanimously recommend that security holders vote in favor of the resolution.

Given online registration and voting open 30 minutes before the meeting started, the poll will remain open now for a further 2 minutes.

[Voting]

Okay. Just make sure everyone's voted that would like to vote. All right, Michael, good to go?

Almost.

Almost.

Thanks, Gary. 2 minutes have elapsed.

Okay. Thank you. Now that we've dealt with the specific business of the meeting, in accordance with the requirements of Section 250S of the Corporations Act, I would like to offer security holders the opportunity to ask any further questions or make any comments at all on the management of the company in addition to the questions and comments that have already been made. So the floor is open, and we invite any questions that any security holder may have of the Board management or anything else relating to Cromwell. Yes, Noel?

Thank you again, Gary. Noel, Australian Shareholders Association. Just a little question in regard to the predictions for the future. As you work from -- is the work-from-home attitude by people these days, is it likely to affect the way you are looking at your occupancy rates of your buildings?

The short answer is no. No, no. I feel any impacts of working from home that did occur, they've been felt already. I think that the attitudes were towards working from home and what that means are still evolving and still moving around. If anything, I would see a bit more demand as a result of changing working habits people coming back into the office more than anything else, but there still is some tension there, but I don't see any downside to demand as a result of that working-from-home dynamic.

Any other questions? Yes?

Not to be rude, but you will accept your performance rights?

I beg your pardon?

You will accept your performance rights? You progress in your performance.

Yes. Yes. To be clear, the performance rights, I still haven't earned them. And we'll see in 3 years' time if I earn them.

And if I could just make a general comment, Jonathan joined this group as part of the Board refresh a number of years ago, and inherited, as I said, a sprawling property group that was highly indebted. And over the period that we've been on this journey, and you can see the results today, we've absolutely cleaned up this company. It's in an excellent position to execute on an exciting future, and we would not be here today without the outstanding contribution of Jonathan and his team.

Are there any other questions?

No phone or online questions or comments either.

In the absence of any further questions, I now formally declare the meeting closed. The results of the poll for each of the resolutions will be announced via the ASX as soon as they are available. So thank you all for your attendance here today. We welcome your attendance. We welcome your involvement. And we hope that we will be able to deliver better results for all Cromwell security holders in the year ahead. So thank you for your attendance.

Thank you for standing by, and welcome to Cromwell Property Group FY '25 Annual Results. [Operator Instructions]

I would now like to hand the conference over to Mr. Gary Weiss, Cromwell Chair. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today for Cromwell Property Group's annual results for the financial year ending 30 June 2025.

I open today's presentation by acknowledging the traditional custodians of the land from where this call is being hosted, the Gadigal people of the Eora Nation. We pay our respects to their elders past and present.

During the 2025 financial year, we made significant progress in simplifying the business and strengthening our financial position. The successful sale of noncore assets, including the European platform and associated investments offshore marks a major step in streamlining our structure and as a result, significantly reduced group gearing.

Finally, we farewell Rob Blain from our Board, although he will stay on in an advisory capacity. Cromwell has elected not to replace Rob in order to align the Board structure with the group's streamlined operational model. We thank Rob for his outstanding service leadership and contributions to Cromwell's transformation.

ESR's exit from Cromwell's investor register was expected with the group deeming their investment to be noncore in early 2023. Their exit will help to promote increased liquidity and further diversification across the register, both of which should benefit Cromwell's trading price. Cromwell is now well capitalized and firmly focused on the Australian and New Zealand markets. With capital ready to deploy, we're ready to pursue value [indiscernible] growth opportunities as the market becomes more active.

We're optimistic about the road ahead with a clear path forward. Over the next financial year, our focus will be on delivering that growth, underpinned by secure income streams for our security holders.

I'll now pass to Jonathan to speak more about the financial year that's just ended.

Thank you, Gary, and good morning to everyone on the call today, and thank you all for dialing in.

As Gary mentioned, we've had an eventful year. These events are highlighted on Slides 4 and 5. Following the completion of $1.6 billion of asset and business sales, the Cromwell business has been greatly simplified. Cromwell now manages $4.2 billion of assets in Australia and New Zealand, underpinned by a secure stable income stream. This strong foundation allows the group to provide distribution guidance for the first time in several years, expected to be $0.03 per security for the 2026 financial year.

We are executing on our Australian growth strategy. The Barton, our ACT development announced in July, provide an attractive asset for our funds management business with a 15-year pre-lease agreement with a Commonwealth Government entity and impeccable sustainability credentials. Cromwell's investment portfolio occupancy is leading the sector at 97.6% with positive strides in reducing leasing risk over the 12 -- prior 12-month period. Income from the investment is stable with 69% derived from government Qantas and metro trains.

Cromwell has a solid platform and is in a strong financial position to move forward. Our platform gearing remains low and is expected to be 28.2% following the sale of our Chatswood asset, and we have $504 million in available liquidity to support our growth pipeline. In May and June 2025, ESR sold their stake in Cromwell in 2 tranches. An initial 10.8% was sold through a book build to multiple institutions and sophisticated investors. The second tranche of 19.9% was sold through an off-market sale to Brookfield. We believe the sell-down process reflects positively -- reflects positive interest in Cromwell's platform, strategic direction and value proposition.

On Slide 7, we call out some of the group's ESG highlights, and we're proud to share several key achievements across the group. We achieved an 11% reduction in absolute emissions, reflecting our continued commitment to environmental performance. Scope 2 net zero targets were achieved, marking a significant milestone in our decarbonization journey. Our renewable energy target was met supporting our transition to cleaner energy sources. High NABERS ratings were maintained across both the investment portfolio and Cromwell Direct Property Fund, demonstrating strong energy efficiency standards.

The launch of Cromwell's Reflect RAP shows our commitment to building a cultural awareness and long-term relationship with our First Nation communities. Our governance framework remains a core strength, deeply embedded across all areas of Cromwell's operations, ensuring transparency, accountability and long-term operational excellence.

I will now hand over to Michelle to review the financial performance of the year through 30 June 2025.

Thanks, Jonathan.

Turning to Slide 10. Cromwell reports today operating profit of $108.6 million, driven primarily by the strong ongoing performance of the investment portfolio. This number is 20% lower than FY '24 due to the European exit and a one-off fee received in relation to Campbell Park in FY '24. The group reports funds from operations of $105.7 million, which is equivalent to $0.04 per security. The payout ratio to FFO was 74.2%, up on FY '24 of 59.8%. Net tangible assets of $0.56 per security, with the fall from last June driven mainly by a fall in fair value of $97.4 million for properties in the investment portfolio in the first half of the financial year. Encouragingly, the value of the investment portfolio rose by $3.5 million in the second half of the financial year. We see this as a sign that the broader market has found a bottom for this cycle.

As you can see from this chart on Slide 11, Australian earnings remained strong with income from the investment portfolio up from FY '24 at $157.4 million and earnings from funds management at $8.4 million. The exit of the European platform impacted overall group earnings, but leaves the group with a clean balance sheet and firepower for growth. Corporate costs are down by 14.5% and net financing costs are down 40% over the financial year.

Outlined on Slide 12, gearing is expected to be 28.2% following the sale of our share of the Chatswood asset, down significantly from 38.9% only 12 months ago. Group net debt has been reduced by 68% since the group's asset sale program commenced in 2022. As you can see from the chart on the left of Slide 12, gearing is now below the group's target range of 30% to 40%. The group has liquidity of $504.3 million, providing strong capital reserves to support investments in value-accretive growth opportunities.

Turning to Slide 13. In June 2025, we successfully renegotiated our bilateral debt facilities, securing more favorable terms, greater flexibility and covenants and extended duration. As a result, Cromwell's weighted average drawn credit margin has improved significantly, down from 1.77% to 1.31%. This reflects the group's strengthened financial position underpinned by materially lower net debt and gearing levels.

Our weighted average cost of debt remained broadly stable over the financial year, sitting at 4.9% over the year through 30 June 2025. The debt expiry in FY '26 relates to the Chatswood joint venture, which we expect to complete in late September 2025. Debt expiries in FY '27 and FY '28 are well within manageable levels. Cromwell's hedging remains well within our target range, using option contracts as part of the hedge book to benefit from interest rate cuts as they occur.

I'll now hand to Rob to review the investment portfolio and funds management performance.

Thanks, Michelle. Good morning, everyone.

I'll start with Cromwell's investment portfolio. As Michelle mentioned, valuations appear to be stabilizing across the market with external valuations for our portfolio up $3.5 million for the second half of the financial year. Occupancy is 97.6%, the highest of our peer group and has improved by 3.5% over the 12 months to June. The group leased over 51,000 square meters of space during the financial year, including signing a new 19,800 square meter lease to the Commonwealth Government at our development in Barton, ACT, which, as Jonathan mentioned, we believe will be an attractive future funds management product. Weighted average lease expiry by income sits currently at a healthy 5 years.

As you can see on Slide 17, the tenant mix across Cromwell's investment portfolio continues to be strongly weighted towards government, providing a solid foundation of secure rental income. Our top 5 tenants, the Commonwealth Government, the Queensland government, the New South Wales government, Qantas and metro trains contribute 69% of total portfolio income. Alongside these, we are supported by a diverse range of other tenant types, ensuring healthy tenant diversification and resilience across the portfolio.

Cromwell's integrated leasing and property management teams have done an outstanding job enhancing our assets. By reworking space to support tenant engagement through learning hubs, meeting rooms and breakout areas, we've created environments that not only serve our tenants' needs, but can also deliver added value. These initiatives, along with lobby pop-ups and other targeted tenant activations have contributed to a strong uplift in satisfaction. We are proud to report an overall tenant satisfaction score of 90, up from FY '24 and well above the industry benchmark.

Cromwell's lease expiry profile continues to strengthen year-on-year, as you can see by the lease expiry profile on Slide 18. At 400 George Street in Brisbane, we have a heads-up agreement in place for 5 floors, which accounts for 55% of total portfolio FY '26 expiries. This is to a government-funded group, further reinforcing the portfolio's income security.

A key near-term focus area is 207 Kent Street in Sydney, where we're confident interest from prospective tenants will grow, particularly following the launch of the new tenant exclusive collab space. It's a compelling addition that enhances the building's appeal and supports our leasing strategy.

On Slide 20, as we announced in July, we've officially kicked off our first growth project, the development of our new building in Barton, ACT for our Commonwealth Government tenant. When the time is right, we intend to bring in third-party capital and move the asset into our funds management business. The government has committed to a 15-year lease with an option to extend for a further 5 years. The building will be just under 20,000 square meters, fully electric and designed to achieve 6-star environmental ratings. We are targeting completion in 2027.

Turning to our funds management update on Slide 22. Cromwell manages third-party funds of $1.3 billion across 6 separate funds. The Cromwell Direct Property Fund being the largest is valued at $537 million and manages 6 direct assets and 2 investments into other Cromwell funds. Leasing across the assets in CDPF remains positive during the financial year with space leased totaling just under 10,000 square meters. DPF has strong occupancy of 96.6% weighted to 56% to government and ASX-listed corporate tenants.

During July 2025, CDPF held a full liquidity event, which occurs every 5 years. We expect to know the outcome of that event at the end of September 2025. If greater than 50% of unitholders wish to leave the fund, we will proceed to realize the assets and ultimately wind up the fund. This may take some time. The unitholders in the Cromwell Riverpark Trust, which owns Energex House in Brisbane, voted to extend the fund term for a further term of up to 2 years to December 2026. This provides more time to allow us to achieve the best exit outcome for investors.

And I'll now pass back to Jonathan.

Our strategy remains focused on growing our fund and investment management platform, serving retail, wholesale and institutional investors through the investment and management of traditional real estate assets. This growth will be driven through 3 key channels. First, we'll focus on organic growth by creating new funds and mandates. Second, we'll grow our existing funds, product and assets through strategic partnerships and by leveraging our scale to boost returns. Lastly, we'll pursue opportunities to acquire or merge with other investment platforms, which will help us grow faster and expand our capabilities.

We will remain focused on traditional sectors of office, logistics and retail, given they fit well with our existing track record and provide scale, stable income and opportunities for value creation through active management and repositioning.

In the near term, we reaffirm our commitment to Cromwell's growth in a disciplined, orderly and value-accretive manner. We will deliver stable returns over the long term through prudent capital management with targeted deployment of our balance sheet central to our strategy. A key part of this is maintaining high occupancy across our portfolio, which supports income stability and enhances asset performance. This approach ensures we remain resilient in changing market conditions while positioning the business for sustainable growth.

As I mentioned previously, the group is providing distribution guidance for the first time in several years. Distributions are expected to be $0.03 per security for the 2026 financial year.

Thank you for dialing in today to hear our group update. I will now hand back to the operator to open the Q&A portion of the call.

[Operator Instructions] The first question comes from the line of Solomon Zhang with JPMorgan.

Maybe a question for Michelle. So just on your corporate cost line, that's come down quite a bit year-on-year and I guess, even more so half-on-half. So it seems like you're running at a run rate of just shy of $30 million per annum.

Yes.

It seems to be a bit less in terms of a corporate cost run rate than, I guess, what you previously steered to. Can you just talk through, I guess, what has changed there? And maybe provide a bit of a steer for '26? Are there some further cost benefits to come through there?

Yes, nothing wrong with your math there, mate. So the second half of the year was a bit over $14 million. So you can probably double that and come up to a number that's close enough for what a normalized full year looks like. Headcount has come down quite a bit. We're sitting around about 118 people down from a little under 150 a couple of years ago. Some of that had been happening over a period of years, but there was quite a few over the last year. And that's mostly been in attrition. So as people have been leaving, we haven't been replacing them. We've restructured a few teams, and there's been a few redundancies as well.

We're -- obviously, there's some corporate head costs that we were allocating to the European business, ballpark $4 million, so $3 million or $4 million. So people here that we're working on the European business. And so that shows up in corporate costs now. But we've been actively looking to reduce costs across the board. So most of it is headcount, but we're watching the pennies on everything. We're moving to one of our own buildings. So while there's a pay across the staple, effectively, rent for our Sydney office will be free until we can move on with the growth trajectory that Jonathan was talking about, and we'll have a better idea of how big we're going to be in Sydney in the longer term.

That's helpful. And I appreciate you putting in the Biden development time line and some additional details there. Just interested in when you'd be looking to bring in a capital partner in terms of that development time frame? And can you touch on perhaps your early discussions with capital so far, Jonathan and perhaps Rob?

We're sort of -- we've been open to approaches and discussions for a while now, Solomon. We haven't had the right approach yet. I think we're going to start putting a little bit more effort into it though this year, and we're sort of kicking off the process now. But we're really keen on getting the right partner, the right structure rather than rushing it because we're pretty confident we could sell it tomorrow if we wanted to. But we're just looking for the right fit for our business.

Yes. So probably more of a '26 story at this rate?

I would be happy if we had effectively by the end of this year, we had -- we've done a deal by the end of this year. That would be -- I'd be very pleased with that.

That's good to hear. And then just on CDPF, I'm assuming that you have received all the liquidity requests. I mean could you talk through high level whether you're at risk of hitting that 50% level where you'd sort of be looking to wind up the fund?

Thanks, Solomon. Look, I'll take that one. I think -- so we have to do a full audit because, obviously, the implications of moving across 50 are very different to being under. We've got high lease through, but I can't comment on them at the moment. The audit is due -- is being done by our registry boardroom. And you'll appreciate a lot of these are older investors that still submit paper [indiscernible] a fair bit of checking. We've already found a number of double ups. So I can't really comment until the audit is complete, which will be end of September.

Right. That makes sense. And you've done a good amount of leasing during this period and during this financial year. Could you just talk through some of the economics there, just re-leasing spreads, where incentives are sitting, perhaps just on your renewals as well as your new leases, I guess, ex Barton?

Yes, sure. I mean the key ones -- the key one that we've done just recently, which really is the main one since the half year was at 400 George. You'll recall there's 2 major expiries coming there, '27 and '28 being -- '26 and '27 being federal and then state government. So what we've managed to do during the course of the half is lease effectively the vast majority of that federal government expiry, which is during FY '26. That's about 7,000, 7,500 square meters. It's done on rental of about 995 gross and an incentive of just under 40% on a new 10-year deal. So that really brings back the near-term expiries.

I can go through -- I think the last -- the other big ones we talked about last time were obviously Bureau, which was done on a Melbourne incentive with over 50%. That was a 10-year pushout, and they were handing back around 6,000, 7,000 square meters of their 18. That hand-back doesn't actually come through until 2027. So you'll see that in the upcoming expiry, which we're working on right now. And then a couple of the other main leases at HQ were done around [indiscernible] in incentives.

[Operator Instructions] There are no further questions at this time. With that, we conclude today's conference call. Thank you for participating. You may now disconnect. Thank you.