ESR-REIT Annual Report 2024 21 New Board Sustainability Committee to provide strategic oversight on ESG policies and implementation Environmental • Implementation of the Decarbonisation Roadmap for the Singapore portfolio with actionable plans and focused targets • Embarked on the development of Decarbonisation Roadmaps for overseas portfolios in Australia and Japan Newly Certified Green Buildings: Upgraded • ESR BizPark @ Changi (Hotel) — Upgraded to BCA Green Mark Platinum from Gold • 30 Marsiling Industrial Estate Road 8 — Upgraded to BCA Green Mark Platinum from Certified BCA Green Mark “Platinum” Building • 20A Tuas South Avenue 14 BCA Green Mark “Positive Energy” Building • 120 Pioneer Road • 13 Jalan Terusan • 5 & 7 Gul Street 1 • 160A Gul Circle BCA Green Mark “Super Low Energy” Building • 128 Joo Seng Road • 8 Tuas South Lane Solar Harvesting Programme: • Target set to reach a total solar power capacity of 30 MWp for the Singapore portfolio by FY2030 • Solar power capacity for the Singapore portfolio reached 15.5 MWp in FY2024 with the commissioning of the new solar photovoltaic panels installation at 51 Alps Avenue Green Building Certifications Total of 18 properties with green building certification (increased from 10 in FY2023): • Singapore (Green Mark and LEED) — 15 properties • Australia (Green Star) — 1 property • Japan (CASBEE) — 2 properties Social • Achieved 568 hours of staff volunteerism hours in FY2024 • Participated in Beach Cleanup Initiative at East Coast Park, together with Kembangan-Chai Chee Community Centre and PAssionWave • Participated in SG Her Empowerment (SHE) Annual FundRaising Party • Provided enrichment lessons for underprivileged youths from Kembangan-Chai Chee, in conjunction with our tenants at ESR Bizpark @ Chai Chee, Artlette Art Studio and The Music Works • Continued the Lunch Time Rescue Vegetable Distribution initiative twice a month on a rotational basis • Achieved 84.2% employee satisfaction rate with 93.9% response rate in the annual employee satisfaction survey • Enhanced Tenant Engagement via a Responder Plus Programme held in conjunction with SCDF to raise awareness on First-Aid and Emergency Preparedness Governance • Achieved GRESB score of 2 Star (73 points), an improvement from FY2023 (66 points) • Updated Sustainability Policy, and established new Sustainability Information and Data Governance Policy, and Renewable Energy Certificates Management Policy • Zero material incidents of noncompliance with socio-economic or environmental laws Gearing 42.8% High fixed rate hedge of 74.8% Cost of debt 3.84% per annum S$235.8 million of committed undrawn revolving credit facility available for refinancing Well supported by 11 lending banks Debt headroom of S$790.2 million2 FY2025 expiring loans refinanced ahead of time at lower margins Entered into inaugural Sustainability-Linked and Green Loans in FY2024 RECAPITALISED BALANCE SHEET FOR FUTURE GROWTH CATALYSTS CONTINUED ESG COMMITMENTS 2 Assuming gearing limit of 50%. From 28 November 2024, the Monetary Authority of Singapore issued revisions to the Code on Collective Investment Schemes to rationalise leverage requirements for the REIT sector which imposes a minimum interest coverage ratio (ICR) of 1.5 times with a single aggregate leverage limit of 50% will be applied to all REITs.
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