107 Annual Report 2025 Independent Auditor’s Report TO THE STAPLED SECURITYHOLDERS OF CAPITALAND ASCOTT TRUST (Constituted under the Stapling Deed in the Republic of Singapore) Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Valuation of investment properties, land and buildings and investment properties under development Note 4 – Investment properties Note 5 – Property, plant and equipment Note 6 – Investment properties under development Risk: The Stapled Group has portfolios of investment properties, land and buildings, and investment properties under development with carrying amount as at 31 December 2025 of $6,771.4 million, $888.7 million and $315.4 million (2024: $6,561.7 million, $909.8 million and $279.0 million) respectively. The fair values of the investment properties, land and buildings and investment properties under development are appraised by external property valuers. The valuation process involves significant judgement in determining the appropriate valuation methodology to be used, and in estimating the underlying assumptions to be applied. The valuations are highly sensitive to key assumptions applied, particularly those relating to discount rates, terminal capitalisation rates, capitalisation rate, revenue per available unit and gross development costs. How the matter was addressed in audit: We assessed the Stapled Group’s process relating to the selection of the external property valuers, the determination of the scope of work of the external property valuers, and the review and acceptance of the valuation reports issued by the external property valuers. We evaluated the qualification and competence of the external property valuers. We also read the terms of engagement of the external property valuers with the Stapled Group to ascertain whether there are matters that might have affected their objectivity or limited the scope of their work. We considered and involved our internal specialists to review and assess the valuation methodologies adopted against those applied by other valuers for similar property types. We evaluated the key assumptions and inputs used in the valuations, which included discount rates, terminal capitalisation rates, capitalisation rate, revenue per available unit and gross development costs by comparing them against historical rates and available industry data, taking into consideration comparability and market factors. Where the rates were outside the expected range, we undertook further procedures to understand the effect of additional factors and, when necessary, held further discussions with the external property valuers. We considered the appropriateness of disclosures in the financial statements, in describing the inherent degree of subjectivity and key assumptions in the estimates. This includes the relationships between the key unobservable inputs and fair values, in conveying the uncertainties. Other information CapitaLand Ascott Trust Management Limited, the Manager of CapitaLand Ascott REIT (the “REIT Manager”) and CapitaLand Ascott Business Trust Management Pte. Ltd., the Trustee-Manager of CapitaLand Ascott BT (the “BT Trustee-Manager”) (collectively, the “Managers”), are responsible for the other information contained in the annual report. Other information is defined as all information in the annual report other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
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