The lease expiry profile of CLAS’ master leases, based on their gross rental income, is shown in the chart below. Lease Expiry for Master Leases1 (as at 31 December 2024) 19% 3% 7% 4% 67% 2025 2026 2027 2028 2029 & beyond 1 Percentage of gross rental income for master leases expiring at respective years over the total gross rental income for all master leases. Excludes lyf Funan Singapore as the acquisition was completed on 31 December 2024, and no rental income was recognised in FY 2024. The weighted average remaining expiry (by valuation) of CLAS’ 28 master leases is approximately 11 years. The weighted average lease expiry (by valuation) of the three master leases that were renewed, along with the master lease of lyf Funan Singapore entered into in FY 2024, is about 14 years. Management Contracts With Minimum Guaranteed Income Management contracts are entered into between CLAS and the operators and managers of our properties. Guests then lease the units directly from CLAS, including our subsidiaries (for properties outside of Japan) or other entities acting on behalf of CLAS (for properties within Japan2). An MCMGI enables CLAS to capture the upside during a market upturn, while the minimum income guarantee from the operator mitigates downside risks. As at 31 December 2024, 12 of our properties across Australia, Belgium, Ireland, Singapore, Spain and United Kingdom are on MCMGI. The weighted average remaining term of CLAS’ MCMGI is around 15 years. Longer-stay Accommodation CLAS’ longer-stay accommodation comprises rental housing and student accommodation properties. Rental housing and student accommodation are counter-cyclical lodging asset types with long average length of stay of two years and one year respectively. Given the long leases and high average occupancies, longer-stay accommodation provides CLAS with income stability and resilience through market cycles. As at 31 December 2024, CLAS has 23 rental housing and nine student accommodation properties. Growth Income For FY 2024, approximately 37% of CLAS’ gross profit was from growth income sources, which are management contracts of serviced residences and hotels. Management Contracts of Serviced Residences and Hotels Under a management contract without minimum guaranteed income, the income stream to CLAS is dependent on the operating performance of the property. In a market upturn, properties under management contracts provide the greatest growth potential. 28 of our operating serviced residences and hotels across Australia, China, Indonesia, Japan, Malaysia, The Philippines, Singapore, USA and Vietnam are on management contracts. Note: A waiver from the Monetary Authority of Singapore was obtained in relation to paragraphs 11.1(c) (iv) and (v) of the Property Funds Appendix regarding the disclosures of lease maturity profile and weighted average lease expiry for properties under management contracts, subject to the following disclosures: (1) the average length of stay of guests of properties under the management contracts (combined for both management contracts with and without minimum guaranteed income) for current year and past five years; and (2) the weighted average remaining term of the MCMGI. FY 2024 Gross Profit by Contract Type Stable Income Growth Income 63% 37% Gross Profit S$370.9 million Contract types with a fixed / minimum rent component Master Leases France 8% Japan1 6% Germany 4% Australia 3% South Korea 3% MCMGI United Kingdom 12% Singapore 5% Australia 2% Ireland 2% Belgium 1% Spain 1% Management contracts of longer-stay assets Student Accommodation USA 10% Management contracts of serviced residences and hotels USA 13% Australia 8% Vietnam 5% Japan 4% Singapore 2% The Philippines 2% Indonesia 2% China 1% Malaysia <1% Rental Housing Japan 6% 1 Includes Eslead College Gate Kindaimae, a student accommodation property in Japan under master lease. 2 In Japan, CLAS’ interests in properties are indirectly held as trust beneficial interests through the godo kaisha and tokutei mokuteki kaisha structures and Singapore special purpose vehicles. 23 Annual Report 2024
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