ASSET ENHANCEMENT INITIATIVES AND REDEVELOPMENT In FY2025, we successfully achieved Temporary Occupation Permit (“TOP”) for the AEI project at 16 Tai Seng Street, Singapore. This transformation increased the GFA by approximately 2,793 sqm and is expected to elevate tenants’ user experience and attract new high-value tenants. The newly enhanced asset has also achieved BCA Green Mark Gold certification, with the installation of rooftop solar panels and electrical vehicle charging docks slated for completion in FY2026. Since the successful completion of the AEI in July 2025, the Manager has secured an occupancy rate of approximately 50%, and is in advanced leasing negotiations with both new and existing tenants. The AEI is expected to deliver an estimated yield-on-cost of up to 6.0% on a stabilised basis. The AEI at 29 Tai Seng Street, Singapore is currently underway and is expected to complete by 1H2026 with a plan to elevate the property from a dated single-tenanted General Industrial facility to a Green Mark GoldPlus certified, High-Specifications Industrial property. The key scope of rejuvenation works include the refurbishment of main lobby and toilets, addition of new cargo lift, power upgrading works to support industries with higher energy requirements, Mechanical and Electrical (“M&E”) system upgrading works, as well as the conversion of Level 1 for potential ancillary Food and Beverage (“F&B”) usage. 2 Fishery Port Road is planned for redevelopment into a cold storage and food processing facility. The logistics asset has been decommissioned and is expected to complete in 2Q2029. The above AEIs are aimed at rejuvenating the existing portfolio to unlock value and deliver net asset value growth, particularly in the New Economy portfolio, as well as increase the attractiveness and efficiency of ESR-REIT’s assets to attract high-value tenants. ESR-REIT will continue to focus on organic growth initiatives by rejuvenating its assets and position them to stay relevant to industrialists’ evolving space needs. PORTFOLIO VALUATION ESR-REIT conducted independent valuations of its portfolio in FY2025. These independent valuations were conducted by CBRE Pte. Ltd., Colliers International Consultancy & Valuation (Singapore) Pte Ltd, Cushman & Wakefield VHS Pte Ltd., Edmund Tie & Company (SEA) Pte Ltd, Jones Lang LaSalle Property Consultants Pte Ltd, Savills Valuation and Professional Services (S) Pte Ltd, Jones Lang LaSalle Advisory Services Pty Ltd, Savills Japan Valuation G.K., and Colliers International Japan KK. In determining the valuation figures, the valuers have applied the following methodologies including the direct comparison method, capitalisation approach, discounted cash flows method and residual value approach to arrive at the open market value. As at 31 December 2025, the total valuation of ESR-REIT’s 70 properties was approximately S$4.86 billion13, lower than the previous valuation of S$4.95 billion as at 31 December 2024. The year-on-year variance was primarily due to properties with shorter remaining land lease tenures, the completion of two divested properties, and the conversion of a single-tenanted building into a multi-tenanted building following the expiry of the master lease at 11 Ubi Road 1. The overall decline was, however, partially offset by the completion of AEI at 16 Tai Seng Street and capitalisation rate compression for properties in Queensland, Australia, driven by increased investor interest due to the recent introduction of additional foreign ownership tax in Melbourne. Property Valuation as at 31 December 202413 (S$ million) Valuation as at 31 December 202513 (S$ million) Year-on-year Variance (%) By Asset Class Business Park 637.2 582.7 -8.6% High-Specifications Industrial 1,600.414 1,633.214 2.0% General Industrial 656.9 622.8 -5.2% Logistics 2,056.115 2,019.915 -1.8% By Country Singapore Portfolio 3,901.0 3,808.4 -2.4% Australia Portfolio 550.4 574.5 4.4% Japan Portfolio 499.2 475.7 -4.7% Total Portfolio 4,950.6 4,858.6 -1.9% 13 Includes the valuation on a 100% basis of 7000 & 7002 Ang Mo Kio Avenue 5 of which ESR-REIT holds 80% interest and 20 & 20A Tuas South Avenue 14 of which ESR-REIT holds 51% interest, but excludes the valuation of 48 Pandan Road which is held through a joint venture in which ESR-REIT holds 49.0% interest 14 Includes the valuation of logistics warehouses at 20A Tuas South Avenue 14 15 Excludes the valuation of logistics warehouses at 20A Tuas South Avenue 14 47 ESR-REIT ANNUAL REPORT 2025
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