108 Reviews conducted by the ARCC During FY2025, the ARCC reviewed the interim and annual financial statements for recommendation to the Board for approval. The ARCC’s oversight of financial reporting includes the review of changes in Financial Reporting Standards and discussions with the Management and the external auditors on the impact of current and impending changes on financial reporting by the Group. In the review of the financial statements for FY2025, the ARCC had discussed with Management the accounting principles that were applied and their judgement of items that might affect the integrity of the financial statements. The ARCC also reviewed, among other matters, the following key audit matter identified by the external auditors for FY2025: Key Audit Matter How this issue was addressed by ARCC Valuation of investment properties held either directly or through joint venture and investments at fair value through profit or loss The ARCC considered the valuation methodologies adopted by independent valuers in arriving at the valuation of the investment properties held directly or through joint venture and investments at fair value through profit or loss against those applied by other valuers for similar property types. The ARCC reviewed the reasonableness of key assumptions used in the valuations, including market rental growth, price per square metre, terminal yield, capitalisation and discount rates, by comparing them against current and historical rates and available industry data, taking into consideration comparability and market factors. Where the rates were outside the expected range, the ARCC sought confirmation from both the Management and external auditors to understand the effects of additional factors taken into account in the valuations and assessed whether the assumptions and market data used were reasonable in the context of the current environment. The ARCC was satisfied with the valuation process, the methodologies used and the valuation of the investment properties held directly or through joint venture and investments at fair value through profit or loss. Following the review and discussion, the ARCC recommended to the Board to approve the FY2025 financial statements. Corporate Governance ESR-REIT ANNUAL REPORT 2025
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