From left to right: MR. ADRIAN CHUI Chief Executive Officer and Executive Director MS. STEFANIE YUEN THIO Independent Non-Executive Chairperson 12 Message to Unitholders Dear Unitholders, FY2025 underscored the importance of resilience in a macroeconomic landscape where the global economy continued to navigate uncertainties and evolving market dynamics. While inflationary pressures moderated across major economies for much of the year, the global business environment remained challenged by geopolitical tensions, shifting trade flows and continued ambiguity around the trajectory of interest rates. Against this backdrop, ESR-REIT remained focused on disciplined execution and proactive portfolio management. Throughout the year, we continued to strengthen the quality and resilience of our portfolio while positioning the REIT to capture opportunities in key logistics and industrial markets. Since the introduction of our “4R Strategy” in FY2022, we have taken deliberate steps to improve portfolio quality, earnings sustainability and financial resilience. These include the acquisitions in FY2024 of the freehold ESR Yatomi Kisosaki Distribution Centre in Japan and a 51% interest in 20 Tuas South Avenue 14 in Singapore, which has a rare remaining land lease tenure of 44 years. These acquisitions have further deepened our presence in key gateway markets and increased our exposure to high-quality logistics assets. At the same time, we have continued to actively rejuvenate our portfolio in Singapore through the completion of several Asset Enhancement Initiatives (“AEIs”), which have modernised our assets and sharpened their competitive positioning. Throughout the years, we have also maintained a disciplined approach to capital recycling through the divestments of a significant number of non-core assets with short land leases to progressively improve the overall quality and reinforce the longterm sustainability of our portfolio. Having executed these initiatives over the past few years, we believe ESR-REIT is now anchored on a strong foundation, enabling us to enter the next phase of growth with confidence and to pursue sustainable value creation for our Unitholders. FY2025 FINANCIAL PERFORMANCE Our FY2025 financial performance reflects the benefits of the strengthened foundation and portfolio optimisation efforts over the past few years. In FY2025, Gross Revenue stood at S$446.0 million, representing a 20.4% increase from S$370.5 million in the previous year, while Net Property Income (“NPI”) increased 25.6% to S$328.7 million, compared to S$261.7 million in FY2024. The growth in gross revenue and NPI were driven primarily by income contributions from ESR Yatomi Kisosaki Distribution Centre and 20 Tuas South Avenue 14 (acquired on 15 November 2024 and 29 November 2024, respectively) and +11.7% rental reversions from lease renewals – the fourth straight year of positive rent reversions. This was further supported by income contributions from 7002 Ang Mo Kio Avenue 5, 21B Senoko Loop and 16 Tai Seng Street, which completed their AEIs in 3Q2023, 1Q2024 and 3Q2025, respectively. ESR-REIT ANNUAL REPORT 2025
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