16 Message to Unitholders This next phase of growth is underpinned by a pipeline of visible and executable opportunities to enhance value through redevelopments, AEIs, selective acquisitions and continued portfolio optimisation, while maintaining prudent leverage and financial discipline. Together, these initiatives position ESR-REIT to deliver high quality earnings and sustainable total returns while remaining resilient across changing market conditions. ESG STRATEGY ESR-REIT recognises that strong ESG practices are integral to sustainable value creation and we remain committed to embedding ESG considerations into our operational strategies to deliver long-term returns for our Unitholders while contributing positively to the environment and the communities which we operate in. On the environmental front, we continued to make meaningful progress in advancing our decarbonisation and solar energy initiatives, with solar capacity across our Singapore portfolio increasing to 21.2 MWp in FY2025 from 15.5 MWp in FY2024, supported by the integration of the newly acquired asset at 20 Tuas South Avenue 14, and we remain firmly on track to achieve our target of 30.0 MWp of installed solar capacity in Singapore by FY2030. We also expanded our green building certification coverage significantly during the year for our Australia portfolio, resulting in all 18 assets achieving ‘Green Star’ certification. In addition to the two assets in the Japan portfolio which have already obtained green building certification, there were five additional certifications secured in Singapore, our portfolio now comprises 39 green-certified properties, a significant achievement as compared with 18 in the previous year. In addition, we also made steady progress in supporting low-carbon transport adoption through the installation of electric vehicle chargers at six of our properties in Singapore. On the social front, ESR-REIT remains committed to making a positive impact in the communities in which we operate through active engagement and support for community development initiatives. In FY2025, we partnered with local organisations to deliver meaningful programmes such as Lunchtime Rescue Vegetable Distribution Initiative, Milk and Diapers Initiative, and Beach Clean-up Exercise, contributing approximately 770 hours of staff volunteerism. This significantly exceeded our target of 500 hours and built on the strong momentum from FY2024, where 568 hours of staff volunteerism were recorded, underscoring our ongoing commitment to being a responsible corporate citizen. In FY2025, ESR-REIT achieved a score of 82 points with a 3-star rating in the GRESB Real Estate Assessment, which is a marked improvement from the score of 73 points with a 2-star rating in FY2024, reflecting enhancements in our ESG management and disclosures. During the year, we also refreshed our Sustainability Policy to align with evolving regulatory expectations and industry best practices. ESR-REIT recorded zero material incidents of non-compliance with socio-economic or environmental laws, underscoring our continued commitment to transparency, accountability and ethical conduct. As we look ahead, ESR-REIT will continue to strengthen the integration of ESG considerations across our operations to balance environmental stewardship, social responsibility and robust governance with our growth objectives. We believe that this disciplined and forward-looking approach will support long-term operational performance and create enduring value for our Unitholders and stakeholders. For more details on ESR-REIT’s ESG journey, please refer to our Sustainability Report available on our website: https:// esr-reit.listedcompany.com/ar.html. OUTLOOK As we step into FY2026, ESR-REIT is in a resilient position. The deliberate steps we have taken to optimise our portfolio, enhance asset quality and earnings, and strengthen our balance sheet are beginning to bear fruit. This is reflected in the improvements achieved in FY2025 across revenue, NPI and, consequently, DPU. Building on this strong foundation, we will now sharpen our focus on reducing land lease decay impact on NAV to a manageable level, delivering sustainable, quality earnings growth for our Unitholders, while preserving the operational discipline and execution excellence that we have worked hard to establish. Looking ahead, the operating environment is expected to remain characterised by macroeconomic and geopolitical uncertainty. Interest rate visibility remains limited, with inflationary pressures showing signs of persistent stickiness and policymakers signalling a cautious stance that could include the possibility of rates remaining higher for longer or potentially increasing. In addition, rental growth may moderate in the near term as new supply comes onstream and occupiers adopt a more measured approach to expansion amid evolving market conditions. Furthermore, the impact of the conflict in the Middle East and evolving global trade policies and tariffs remains highly ambiguous. In particular, potential sector-specific tariffs, such as those relating to semiconductors could have far-reaching implications for global supply chains and manufacturing activity. Given Singapore’s role as a key hub for electronics, advanced manufacturing and semiconductor-related industries, such developments may influence business investment decisions and space utilisation strategies across parts of the industrial ecosystem. At the same time, ongoing ambiguity surrounding the legality of the implementation of the U.S. Administrative tariffs, on top of the proposed hike in tariffs in early 2026, has added a further layer of uncertainty for the global economy, making it more challenging for businesses to plan capital ESR-REIT ANNUAL REPORT 2025
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