20 CapitaLand Ascott Trust CLAS adopts a prudent and disciplined approach towards capital management to ensure financial flexibility in its funding structure and to mitigate concentration risk. As at 31 December 2025, 74% of CLAS’ total debt was funded by bank borrowings and the remaining 26% was tapped from the debt capital market. As at 31 December 2025, CLAS’ outstanding borrowings was S$3,190.1 million (2024: S$3,173.5 million) with an effective interest rate at 2.9% per annum (2024: 3.0% per annum). In total, CLAS has approximately S$822.3 million (2024: S$825.4 million) in sustainable financing. To hedge against rising interest rates, approximately 78% (2024: 77%) of the total borrowings were effectively on fixed interest rates. In May 2025, CapitaLand Ascott REIT issued S$260.0 million of fixed rate perpetual securities with an initial distribution rate of 4.20% per annum, with the first distribution rate reset falling on 28 March 2031 and subsequent resets occurring every five years thereafter. The proceeds were used to redeem the S$250.0 million perpetual securities on 30 June 2025 and repay the existing borrowings of the CapitaLand Ascott REIT Group. CLAS is a stapled group comprising CapitaLand Ascott REIT and CapitaLand Ascott BT. The aggregate leverage of CLAS as at 31 December 2025 was 37.7% (2024: 38.3%) with a debt headroom of S$2.1 billion1, providing it with the capacity to pursue growth opportunities including acquisitions, development and conversion projects. As at 31 December 2025, the aggregate leverage of CapitaLand Ascott REIT was 40.1% (2024: 40.9%), within the regulatory limit of the Monetary Authority of Singapore2. CLAS holds derivative financial instruments to hedge its currency and interest rate risk exposures. The fair value of derivatives for FY 2025 comprised financial derivative assets and financial derivative liabilities of S$117.7 million and S$13.7 million respectively. The net assets amount of S$104.0 million represented 2.1% of the net assets of CLAS as at 31 December 2025. 1 Before reaching aggregate leverage of 50%. 2 With effect from 28 November 2024, the aggregate leverage of a property fund should not exceed 50% of the deposited property. Financial Review Debt Maturity Profile Maturity S$’million Maturity S$’million 2026 497.4 2025 300.1 2027 385.0 2026 519.5 2028 694.6 2027 484.7 2029 864.5 2028 724.0 2030 & after 748.6 2029 & after 1,145.2 Total 3,190.11 Total 3,173.51 1 Net of unamortised transaction costs. CLAS maintains a well-spread debt maturity profile to minimise refinancing risks. About 16% of CLAS' total debt is due in 2026, and the Managers have commenced discussions to refinance the loan facilities ahead of their maturity dates. As at 31 Dec 2025 As at 31 Dec 2024 2026 2025 2027 2026 2028 2027 2029 2028 2030 & after 2029 & after 12% 22% 27% 23% 16% 16% 15% 23% 36% 10%
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