CapitaLand Ascott Trust 170 Notes to the Financial Statements For the financial year ended 31 December 2025 Fair value hierarchy The fair value measurements for the investment properties have been categorised as level 3 fair values based on inputs to the valuation techniques used. The following table reconciles the net carrying value of the investment properties to the fair value. CapitaLand Ascott REIT Group CapitaLand Ascott BT Group Stapled Group 2025 $’000 2024 $’000 2025 $’000 2024 $’000 2025 $’000 2024 $’000 Carrying value of investment properties 6,724,519 6,556,284 437,746 419,331 6,771,365 6,561,673 Less: Carrying amount of lease liabilities (222,296) (240,546) (52,950) (60,036) (222,296) (240,546) Fair value of investment properties 6,502,223 6,315,738 384,796 359,295 6,549,069 6,321,127 Valuation technique and significant unobservable inputs The Stapled Group’s investment property portfolio is valued by external property valuers annually. External valuations are also carried out on occurrence of acquisitions. The fair values are based on open market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction wherein the parties had each acted knowledgeably and without compulsion. The valuers have considered the discounted cash flow and direct capitalisation methods (2024: discounted cash flow and direct capitalisation methods) in arriving at the fair value as at the reporting date. In determining the fair value, the valuers have used valuation techniques which involve certain estimates. The key assumptions used to determine the fair value of investment properties include market-corroborated discount rate, terminal capitalisation rate, capitalisation rate and revenue per available unit. The valuation of the Stapled Group’s investment property portfolio is discussed with the ARC and Board of Directors in accordance with the Stapled Group’s reporting policies. 4 Investment Properties (continued)
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