2 CapitaLand Ascott Trust Chairman and CEO Message Lui Chong Chee Chairman Non-Executive Independent Director Teo Joo Ling, Serena Chief Executive Officer Executive Non-Independent Director Dear Stapled Securityholders, 2026 marks the 20th anniversary of CapitaLand Ascott Trust’s (CLAS) listing on the SGX-ST — a significant milestone that reflects two decades of disciplined growth, resilience and a resolute commitment to delivering long‑term sustainable returns to Stapled Securityholders. 20 Years of Growth and Resilience From our beginnings as a Pan-Asia REIT in 2006 with 12 properties across six countries, CLAS has steadily transformed into a leading global lodging trust. As at 31 December 2025, we have built a well-diversified portfolio of 103 properties across 16 countries. Since our IPO, CLAS’ distribution income has grown at a compounded annual growth rate (CAGR) of about 12%, underpinned by our healthy operating performance and our proactive portfolio and capital management. We have delivered a total return of over 250% to Stapled Securityholders. A key differentiator of CLAS is our diversified portfolio that balances stability and growth. Spanning across geographies, asset classes and contract types, this diversity enhances our resilience. Over the years, we expanded into new markets and strengthened our foothold in key gateway cities across Asia Pacific, Europe and the United States of America (USA). We also broadened our exposure to the living sector by investing in rental housing and student accommodation. In the financial year 2025 (FY 2025), stable income sources – master leases, management contracts with minimum guaranteed income and living sector assets – contributed 65% of total gross profit. Growth income from serviced residences and hotels under management contracts accounted for the remaining 35%. One of the pivotal milestones in our 20-year journey was the successful combination of Ascott Residence Trust and Ascendas Hospitality Trust in 2019. This strategic merger consolidated CLAS’ position as the largest lodging trust in Asia Pacific and provided the scale, financial resilience and operational flexibility that enabled us to navigate the unprecedented challenges of the COVID-19 pandemic. We have been disciplined in reconstituting our portfolio to enhance returns. We continue to divest assets that have reached optimal maturity and redeploy capital into higher‑yielding, accretive investments. This ensures that our portfolio remains high quality, future-ready and aligned with evolving lodging trends. These efforts are supported by ongoing asset enhancement initiatives (AEIs) that uplift our properties’ value and income potential.
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