14 Message to Unitholders This disciplined approach ensures that capital is continually redeployed into higher quality assets that remain relevant to structural demand drivers, while enhancing the long-term sustainability of distributions and NAV. DIVESTMENT OF NON-CORE ASSETS In FY2025, ESR-REIT continued to enhance overall portfolio quality with the completion of the divestments of two non-core assets with an aggregate value of S$16.7 million at 2.3% above valuation, and announced the proposed divestment of eight non-core assets with an aggregate value of S$338.1 million at 2.0% above valuation in December 2025. These assets were characterised by factors such as: (i) short remaining land leases (four of which have less than 13 years remaining land lease); (ii) smaller asset sizes; (iii) limited potential for AEI or redevelopment; and/or (iv) outdated property specifications. Completed Divestments • 79 Tuas South Street 5, Singapore (1.5% above valuation) • 1 Third Lok Yang Road and 4 Fourth Lok Yang Road, Singapore (3.5% above valuation) Announced Divestments (2.0% above valuation) • 46A Tanjong Penjuru, Singapore • 86 & 88 International Road, Singapore • 120 Pioneer Road, Singapore • 21 & 23 Ubi Road 1, Singapore • 24 Jurong Port Road, Singapore • 13 Jalan Terusan, Singapore • 60 Tuas South Street 1, Singapore • 43 Tuas View Circuit, Singapore Furthering on the strategy of divesting non-core assets, ESR-REIT also announced the proposed divestment of the non-core Hotel Strata Lot at ESR BizPark @ Changi at valuation of S$101.0 million in January 2026, while retaining ownership of the business park, retail and convention centre components, preserving the core income-generating components within the integrated development. Following the release of our FY2025 financial results, we unveiled our new Total Return Strategy, which seeks to deliver sustainable income growth alongside long-term capital appreciation. This strategy targets total Unitholder return of approximately 8-10% supported by active portfolio management, organic growth via redevelopments and major AEIs and disciplined capital allocation over the next five years. ESR-REIT ANNUAL REPORT 2025
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