As at 31 December 2025 As at 31 December 2024 Total Gross Debt (S$ million) 2,236.1 2,269.7 Debt to Total Assets (%)1 43.4 42.8 Weighted Average All-in Cost of Debt (%) p.a. 3.35 3.84 Weighted Average Debt Expiry (“WADE”) (years) 2.0 2.8 MAS Interest Coverage Ratio (times)2 2.5 2.5 Interest Rate Exposure Fixed (%) 68.4 74.8 Weighted Average Fixed Debt Expiry (“WAFDE”) (years) 1.9 2.0 Proportion of Unencumbered Investment Properties (%)3 72.2 72.4 Debt Headroom (S$ million)4 701.4 790.2 Undrawn Available Committed Facilities (S$ million) 160.9 235.8 KEY FINANCIAL INDICATORS 1 Includes ESR-REIT’s 49.0% share of the borrowings and total assets of PTC Logistics Hub LLP, but excludes the effects arising from the adoption of FRS 116 Leases. 2 Interest expense includes amortisation of debt-related transaction costs and distributions on perpetual securities but excludes finance costs on lease liabilities under FRS 116. 3 Excludes ESR-REIT’s 49% interest in 48 Pandan Road. 4 Assumes gearing limit of 50%. 5 Assuming the divestment of the portfolio of eight non-core assets announced on 15 December 2025 and the divestment of the Hotel Strata Lot at ESR BizPark @ Changi announced on 30 January 2026 were completed on 31 December 2025 and net proceeds were used to repay debt. ESR-REIT continues to strengthen its capital management framework, maintaining a disciplined approach to building a balanced and resilient capital structure. Our focus remains on preserving a robust credit profile, closely monitoring key capital metrics, and ensuring alignment with both regulatory requirements and internal risk thresholds. ESR-REIT’s capital structure remains healthy, with aggregate leverage at 43.4% as at 31 December 2025. The aggregate leverage figures for FY2025 and FY2024 are also disclosed on page 220 of the Financial Statements. While leverage has increased from the previous year, the REIT retains substantial financial flexibility, supported by S$701.4 million of debt headroom to pursue new growth opportunities, including targeted acquisitions, asset enhancements, and redevelopment projects. This proactive approach enables us to respond effectively to changing market dynamics, including interest rate movements, while fulfilling our financial obligations and supporting our strategic growth ambitions. By upholding prudent capital and risk management practices, we remain committed to safeguarding financial stability and driving sustainable long‐term value creation for our stakeholders. A key milestone achieved in FY2025 was the new Long Term Issuer Default Rating of ‘BBB’ with a Stable outlook awarded by Fitch Ratings. Securing this investment-grade rating provides external validation of ESR-REIT’s resilient business model, sound financial management, and disciplined approach to capital optimisation, while also broadening our access to global capital markets and diversified funding sources. The REIT has also announced the divestment of approximately S$439.1 million of non-core Singapore assets. Upon completion, sale proceeds will be used to repay debt, reducing gearing on a pro-forma basis to 38.5%5. This positions ESR-REIT with a more resilient balance sheet that supports swift execution of strategic initiatives while comfortably meeting upcoming refinancing commitments. On 28 November 2024, the Monetary Authority of Singapore issued revisions to the Code on Collective Investment Schemes to rationalise leverage requirements for the REIT sector, imposing a minimum interest coverage ratio (ICR) of 1.5 times with a single aggregate leverage limit of 50% applied to all REITs. ESR-REIT remains comfortably within these thresholds, with an ICR of 2.5 times. Capital Management 57 ESR-REIT ANNUAL REPORT 2025
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