Financial Data and Key Metrics Changes - The company reported operating earnings of $0.25 per security for FY 2025, in line with guidance, and forecasts earnings and distributions for FY 2026 of $0.255 per security, reflecting a 2% growth over FY 2025 [4][5][31] - The net tangible assets (NTA) per security as of June 30, 2025, is $4.59, consistent with the previous half-year results, with minor impacts from swap movements [5][12] - The portfolio delivered a 3% like-for-like net property income growth, with 54% of income being CPI linked [5][10] Business Line Data and Key Metrics Changes - The portfolio consists of a diversified real estate portfolio valued at approximately $5.5 billion, with an occupancy level of 99.9% and a weighted average lease term (WALT) of 9.3 years [3][22] - The company completed $715 million of new interest rate hedging, with 89% of debt hedged as of June 30, 2025, and an average forecast hedging of 72% for FY 2026 [6][14] Market Data and Key Metrics Changes - The portfolio value is on average 18% higher in June 2025 compared to June 2020, driven by contracted and market rental growth [7] - The average cap rate of the portfolio is 5.4%, reflecting no change over the past twelve months [21] Company Strategy and Development Direction - The company aims to provide stable and secure income while targeting both income and capital growth through a diversified portfolio leased to corporate and government tenants [30] - Active curation and asset recycling are ongoing to enhance portfolio quality, with a focus on acquiring accretive strategic assets [14][30] Management's Comments on Operating Environment and Future Outlook - Management believes valuations have troughed and expects some cap rate compression and valuation growth in the coming period due to a lower interest rate environment [33][89] - The company is optimistic about tenant demand across various sectors, particularly in retail and industrial, with long leases in place [72] Other Important Information - The company has maintained net zero Scope one and Scope two emissions for assets under its operational control and has installed 8.9 megawatts of solar across its portfolio [28][29] - Moody's reaffirmed the company's Baa1 investment grade credit rating [7][13] Q&A Session Summary Question: Regarding acquisitions and balance sheet capacity - Management indicated that current gearing is within the target range and expressed confidence in future valuation growth due to expected interest rate cuts [33][89] Question: On the Department of Defense acquisition and market rents - Management is negotiating to extend the lease and sees potential for the property to become a long-term asset [36][52] Question: On cost of debt and margins - Average margins remain just under 1.5%, with no significant changes expected [42] Question: On acquisition opportunities and market conditions - Management noted that while there are limited high-quality long-term opportunities, they remain active in the sale and leaseback space [46] Question: On the ALE portfolio and rental expectations - Management believes the ALE portfolio remains under-rented and is confident in its value [84]