48 STRATEGICALLY ADVANCING OPERATIONS REVIEW comparison method, capitalisation approach, discounted cash flows method and residual value approach to arrive at the open market value. As at 31 December 2024, the total valuation of ESRREIT’s 72 properties was approximately S$4.95 billion2, higher than the previous valuation of S$4.09 billion as at 31 December 2023. The overall increase was mainly due to the two newly acquired properties, partially offset by the divestment of non-core assets and properties that experienced diminution in value due to shorter remaining land lease tenures and expansion of capitalisation rate. PORTFOLIO VALUATION ESR-REIT conducted independent valuations of its portfolio in FY2024. These independent valuations were conducted by Colliers International Consultancy & Valuation (Singapore) Pte Ltd, Edmund Tie & Company (SEA) Pte Ltd, Cushman & Wakefield VHS Pte. Ltd., CBRE Pte. Ltd., Savills Valuation and Professional Services (S) Pte Ltd, Jones Lang LaSalle Property Consultants Pte Ltd, Cushman & Wakefield (Valuations) Pty Ltd, Savills Japan Valuation G.K., and Colliers International Japan KK. In determining the valuation figures, the valuers have applied the following methodologies including the direct Valuation as at 31 Dec 20232 (S$ million) Valuation as at 31 Dec 20242 (S$ million) Year-on-year Variance (%) By Asset Class Business Park 742.4 637.2 –14.2% High-Specifications Industrial 653.6 3 1,600.4 3,4 +144.9% General Industrial 755.0 3 656.9 3 –13.0% Logistics 1,943.9 2,056.1 5 +5.8% By Country Singapore Portfolio 3,251.5 3,901.0 +20.0% Australia Portfolio 670.0 550.4 –17.9% Japan Portfolio 173.4 499.2 +187.9% Total Portfolio 4,094.9 4,950.6 +20.9% PORTFOLIO REVIEW As at 31 December 2024, ESR-REIT holds interests in 72 properties, each located in key industrial clusters across the three countries in Singapore, Australia and Japan, with an aggregate gross floor area of approximately 2.5 million sqm. Key Portfolio Statistics As at 31 December 2023 As at 31 December 2024 Variance (%) Number of Properties 72 72 0.0% Gross Floor Area (million sqm) 2.1 2.5 +19.0% Net Lettable Area (million sqm) 2.1 2.3 +9.5% Portfolio Valuation (S$ million) 4,094.9 4,950.6 +20.9% Portfolio Occupancy (%) 92.8 92.3 –0.5% 2 Includes the valuation on a 100% basis of 7000 & 7002 Ang Mo Kio Avenue 5 of which ESR-REIT holds 80% interest and 20 & 20A Tuas South Avenue 14 of which ESR-REIT holds 51% interest, but excludes the valuation of 48 Pandan Road which is held through a joint venture in which ESR-REIT holds 49.0% interest. 3 21B Senoko Loop was reclassified from General Industrial to High-Specifications Industrial after its full completion of redevelopment works in January 2024. 4 Includes the valuation of logistics warehouses at 20A Tuas South Avenue 14. 5 Excludes the valuation of logistics warehouses at 20A Tuas South Avenue 14.
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