Annual Report 2025 207 19 Lease Liabilities CapitaLand Ascott REIT Group CapitaLand Ascott BT Group Stapled Group 2025 $’000 2024 $’000 2025 $’000 2024 $’000 2025 $’000 2024 $’000 Non-current 211,002 229,639 47,443 54,803 211,002 229,639 Current 11,294 10,907 5,507 5,233 11,294 10,907 Total 222,296 240,546 52,950 60,036 222,296 240,546 The investment properties of the CapitaLand Ascott BT Group included a right-of-use asset relating to the operating lease for Ariake Hotel on adoption of SFRS(I) 16/ FRS 116. AAGK, a subsidiary of CapitaLand Ascott BT, leases Ariake Hotel from Ascendas Hospitality Tokutei Mokuteki Kaisha, a subsidiary of CapitaLand Ascott REIT. SFRS(I) 16/ FRS 116 requires AAGK to recognise a right-of-use asset and lease liability relating to this operating lease. There is no impact for the Stapled Group as the intra-group transaction will be eliminated upon consolidation. Leases as lessee (SFRS(I) 16/ FRS 116) The CapitaLand Ascott REIT Group leases the land on which four (2024: four) of the investment properties were constructed. The leases have initial tenures ranging from 25 to 150 years (2024: 25 to 150 years). The CapitaLand Ascott REIT Group also leased the commercial podium under a 33-year master lease in Somerset Olympic Tower Property Tianjin. The lease liabilities are based on the fixed component of the rent payable under the lease agreement, adjusted for incremental rent which have been provided for in the agreement. The property was divested on 15 April 2025. Information about leases for which the CapitaLand Ascott REIT Group is a lessee is presented below. Amounts recognised in the Statement of Total Return CapitaLand Ascott REIT Group and Stapled Group 2025 $’000 2024 $’000 Lease under SFRS(I) 16/ FRS 116 Interest expense on lease liabilities 8,455 9,603 Change in fair value of right-of-use assets 10,622 10,494 Variable lease payments not capitalised in lease liabilities Variable lease payments which do not depend on an index or rate(1) 179 313 (1) The CapitaLand Ascott REIT Group manages certain units at one of the investment properties on behalf of third-party unit owners. The variable lease payments paid to these unit owners are based on a percentage of the net operational profit derived from the investment property. Such variable lease payments are recognised in the Statement of Total Return when incurred and amounted to $179,000 (2024: $313,000) for the year ended 31 December 2025. Amounts recognised in Statement of Cash Flows CapitaLand Ascott REIT Group and Stapled Group 2025 $’000 2024 $’000 Payment of lease liabilities 10,419 10,025 Interest paid 8,455 9,603 Total cash outflow for leases 18,874 19,628
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