Notes to the Financial Statements For the financial year ended 31 December 2025 9. DERIVATIVE FINANCIAL INSTRUMENTS (CONT’D) Master netting or similar agreements The Group’s interest rate swap and forward foreign currency exchange contract transactions are entered into under International Swaps and Derivatives Association Master Agreements (“ISDA Master Agreements”) with various bank counterparties. The derivative financial instruments presented above are not offset in the statement of financial position as the right of set-off of recognised amounts is enforceable only following the occurrence of a termination event as set out in such ISDA Master Agreements. In addition, the Group and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously. As at 31 December 2025 and 31 December 2024, the Group’s derivative financial assets and liabilities do not have any balances that are eligible for offsetting under the enforceable master netting arrangements. 10. TRADE AND OTHER RECEIVABLES Group Trust 2025 2024 2025 2024 $’000 $’000 $’000 $’000 Trade receivables 6,293 5,035 560 263 Deposits 3,404 3,364 666 702 Other receivables – Subsidiaries – – 59,461 40,336 – Joint venture 343 358 343 358 – Related parties 1,464 3,519 – – – Unrelated third parties 7,882 13,790 384 2,639 9,689 17,667 60,188 43,333 Financial assets carried at amortised cost 19,386 26,066 61,414 44,298 Capitalised costs 815 815 815 815 Prepayments 2,674 3,719 215 242 GST receivable – 29,855 – – Total trade and other receivables 22,875 60,455 62,444 45,355 Trade receivables are non-interest bearing and are generally on 14 days credit terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Other receivables are non-trade related, non-interest bearing and repayable on demand. The Group’s primary exposure to credit risk arises from its trade and other receivables. The Group has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Concentration of credit risk relating to trade receivables is limited due to the Group’s large number and diverse range of tenants. The maximum exposure to credit risk for trade and other receivables is represented by the carrying amount at the reporting date. 181 ESR-REIT ANNUAL REPORT 2025
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