Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $35.2 million, down from $38.4 million in Q4 2024. Core FFO was $0.19 per share compared to $0.18 per share in the previous year [17] - For the full year 2025, total revenues were $147.6 million, down from $164.9 million in 2024. Core FFO was $0.78 per share, which included approximately $0.09 per share of lease terminations [19] - Adjusted EBITDA for 2025 was $69 million, compared to $82.8 million in 2024 [19] Business Line Data and Key Metrics Changes - In 2025, the company completed over 900,000 sq ft of leasing, following 1.1 million sq ft in 2024, indicating an improving market backdrop [4] - The average weighted average lease term (WALT) for new leases signed in 2025 was nearly 10 years, with an overall average WALT of 7.5 years for all leasing activity [5] - Cash rent spreads for Q4 renewals were up 12.8%, although overall 2025 rent spreads were down 7.1% for the year [6] Market Data and Key Metrics Changes - The lease rate improved by 600 basis points year-over-year to over 80% at year-end, and occupancy rate improved by 500 basis points to 78.7% [6] - The company entered 2026 with scheduled lease expirations totaling $11.4 million of Annualized Base Rent, significantly lower than $16.2 million in 2025 [7] Company Strategy and Development Direction - The company is undergoing a strategic options review process to explore pathways to unlock shareholder value [4] - Orion is shifting its portfolio focus from traditional suburban office properties to dedicated use assets (DUAs) such as medical, lab, and government properties [10] - The company aims to improve portfolio quality, lengthen WALT, renew tenants, and fill vacant space while managing leverage prudently [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the standalone prospects of the company and expects Core FFO growth in 2026 and beyond [15] - The leasing momentum is seen as constructive, with a robust pipeline of over 1 million sq ft in discussion or documentation stages [7] - The company anticipates that the market will gradually recover, which may lead to improved renewal rent increases [41] Other Important Information - The company reduced G&A expenses by more than 10% and expects annualized savings of about $1.8 million [12] - A quarterly cash dividend of $0.02 per share was declared for Q1 2026 [27] - The company has maintained significant liquidity of $145.9 million as of December 31, 2025, to support ongoing leasing efforts [21] Q&A Session Summary Question: Is the leasing pipeline seeing improvement? - Management indicated that the leasing pipeline has improved due to both market conditions and increased leasing momentum, although numbers can be volatile quarter-over-quarter [31] Question: What is the historical success rate of the leasing pipeline? - Management noted that the success rate has significantly improved over the past two years, with a notable increase in leased space from previous years [32] Question: Can you provide details on the Barilla transaction? - The Barilla transaction was brokered and includes both office and R&D space, with approximately half of the asset dedicated to test kitchens and R&D [34] Question: What is the pace of vacant property disposals? - Management stated that while significant activity occurred in 2025, future disposals will depend on the assessment of current vacancies and their leasing potential [39] Question: What opportunities do upcoming lease maturities present? - Management expects Core FFO to grow as the portfolio stabilizes and as they rent up properties, although renewal rent increases may vary based on market conditions [41]

Core Viewpoint - CapitaLand Integrated Commercial Trust (CICT) has demonstrated strong financial performance and strategic growth initiatives, including a focus on portfolio enhancement and new development projects, while maintaining a solid occupancy rate and healthy debt profile [1][18]. Financial Performance - For 4Q FY2025, CICT reported a gross revenue of S$427.6 million, reflecting a year-on-year increase of 7.8%, while net property income rose by 12.2% to S$315.5 million [5][6]. - For FY2025, gross revenue reached S$1,619.2 million, a 2.1% increase from FY2024, with net property income growing by 3.1% to S$1,189.7 million [7][9]. - Distributable income to unitholders for FY2025 increased by 14.5% to S$860.9 million, supported by improved performance and strategic asset management [10]. Portfolio and Occupancy - CICT's portfolio includes 21 properties in Singapore, 2 in Frankfurt, and 3 in Sydney, with a total value of S$27.4 billion [1]. - The overall portfolio occupancy rate remained strong at 98.7%, with retail properties at 98.7% and integrated developments at 97.7% [11][20]. - Positive rental reversions were recorded for both retail and office properties, with rental reversion rates of +6.6% [12]. Debt Profile - CICT's aggregate leverage improved to 38.6%, with an interest coverage ratio of 3.7 times and an average cost of debt reduced to 3.2% [13]. - The debt maturity profile is well-spread, with only 6% and 10% of borrowings due for refinancing in FY2026 and FY2027, respectively [14]. Strategic Developments - A consortium led by CICT won a tender for a mixed-use site at Hougang Central, which will include 835 residential units and over 430,000 square feet of commercial space [2][4]. - The divestment of Bukit Panjang Plaza for S$428 million will provide capital for debt repayment and future investments [3]. Distribution to Unitholders - The distribution per unit for FY2025 increased by 6.4% to 11.58 cents, with a distribution of 4.61 cents for the period between 14 August and 31 December 2025 [16][17].

Financial Performance - Gross revenue for FY2025 decreased by 6.5% YoY to S$206.5 million, while net property income (NPI) fell by 10.0% YoY to S$148.8 million, primarily due to the upfront recognition of supplementary rent from lease restructuring in FY2024 [5] - On a proforma basis, after adjusting for supplementary rent, gross revenue and NPI for FY2025 were 1.1% and 0.1% higher YoY respectively [5] - Distribution per unit (DPU) for 2H FY2025 increased by 1.8% YoY to 1.80 cents, with distributions expected on 24 September 2025 [6] Capital Management - The Manager agreed to divest Jem office for S$462.0 million, which will be used primarily to repay borrowings, reducing aggregate leverage from 42.6% to approximately 35% [3][10] - As of 30 June 2025, gross borrowings stood at S$1,664.3 million with a weighted average debt maturity of 2.6 years, and approximately 86% of total committed debt facilities were sustainability-linked [7] - The interest coverage ratio (ICR) improved to 1.6 times from 1.5 times as of 31 December 2024, with a weighted average cost of debt at 3.46% per annum [8][10] Operational Performance - The portfolio's committed occupancy rate was 92.1% as of 30 June 2025, with a well-spread lease expiry profile [9] - The retail portfolio maintained a strong occupancy rate of over 99% and achieved a positive rental reversion of 10.2% [12] - Positive rental uplift of 1.7% was recorded for commercial Building 1 and 2 in Milan, reflecting annual rental escalation [14] Portfolio Valuation - As of 30 June 2025, the portfolio valuation increased by 2.2% YoY to S$3.76 billion, supported by a positive outlook for Singapore assets [11] - The core Singapore portfolio, including Jem and 313@somerset, delivered robust operational performance in FY2025 [15]