13 The total amount available for distribution to Unitholders rose to S$176.1 million in FY2025, representing a 7.3% increase from S$164.1 million in FY2024. This growth was underpinned by an 11.6% rise in core1 distributable income to S$172.3 million, driven mainly by higher NPI. The increase was partially offset by (i) higher borrowing and perpetual securities costs, incurred largely to fund the acquisitions, (ii) noncontrolling interests attributable to the 49% holders of 20 Tuas South Avenue 14, and (iii) higher tax expenses. Consequently, FY2025 Core1 DPU and Total DPU stood at 21.440 and 21.914 Singapore cents, respectively, representing increases of 7.6% and 3.4% from 19.9302 and 21.1902 Singapore cents in FY2024. Core1 DPU accounted for approximately 98% of Total DPU, and going forward, distributions are expected to be driven primarily by income generated from core underlying operations. The results reflect the improvement in quality of earnings underpinned by sustainable revenue from our underlying operations. RESILIENT PORTFOLIO BACKED BY STRUCTURAL DEMAND As at 31 December 2025, ESR-REIT’s portfolio consisted of 70 quality and diversified assets (excluding 48 Pandan Road held through a joint venture) across key gateway markets, comprising 50 assets in Singapore, 18 assets in Australia, and 2 assets in Japan, with a total gross floor area (“GFA”) of 2.4 million square metres (“sqm”), as well as investments in three property funds in Australia. Our portfolio continues to perform steadily, with positive rental reversion of 11.7%3 in FY2025, supported by demand for Logistics (+12.4%) and HighSpecifications Industrial (+22.2%) assets aligned with New Economy trends, while 1 Refers to distributable income from underlying operations and excludes distribution from other gains. 2 Adjusted for the 10:1 Unit consolidation that was completed on 5 May 2025 for a like-for-like comparison. 3 Rental reversion for FY2025 would have been +9.2%, excluding the renewal of a particular 12-year lease at 7000 Ang Mo Kio Avenue 5. 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. occupancy remained stable at 91.1%, consistently above national averages. Leasing activities remained healthy, with more than 463,000 sqm in leasing transactions, comprising 328,220 sqm of renewals and 135,540 sqm of new leases, reflecting the effectiveness of our leasing team. The portfolio’s weighted average lease expiry (“WALE”) increased to 4.4 years, up from 4.2 years in the previous year. PORTFOLIO OPTIMISATION THROUGH DIVESTMENTS, REDEVELOPMENT AND AEIs We continued to rejuvenate the portfolio through selective divestments of noncore assets with short land lease and earmarking the sales proceeds to be recycled into growth opportunities. Divestments completed and announced during FY2025 were achieved at premiums to valuation and are expected to reduce the impact of short land lease decay on Net Asset Value (“NAV”), further improving the portfolio’s land lease profile and overall resilience. ESR-REIT ANNUAL REPORT 2025
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