3 Annual Report 2025 Delivering Stable Distributions In FY 2025, CLAS continued to demonstrate operational strength and deliver stable returns despite ongoing macroeconomic uncertainties. Income available for distribution increased 11% year-onyear (YoY) due to the increase in gross profit and higher non-periodic items1. Total distribution was S$233.5 million, after retaining S$23.2 million in non-periodic items to fund AEIs to drive future growth and/or for general corporate and working capital purposes. Correspondingly, Distribution per Stapled Security remained at 6.10 cents, in line with our commitment to deliver stable distributions. Gross profit increased 4% YoY to S$385.3 million, supported by stronger operating performance, contributions from our reconstituted portfolio, and uplift from renovated properties. These mitigated the impact of foreign currency fluctuations against the Singapore Dollar. On a same-store basis, excluding acquisitions and divestments in the financial year 2024 (FY 2024) and FY 2025, gross profit rose 1%. In FY 2025, revenue per available unit grew 3% to S$161. This was driven by an increase in our portfolio’s average occupancy from 77% in FY 2024 to 80%. CLAS’ portfolio valuation rose by 1.7% or S$130 million due to our stronger operating performance. Building a Stronger Portfolio CLAS continues to take a proactive approach to enhance the quality of our portfolio and income streams for long‑term sustained growth. This is achieved through accretive investments, strategic divestments and well‑timed AEIs to capture lodging demand. As part of our capital recycling strategy, we completed approximately S$300 million in divestments across China and Japan in 2025 at a significant premium to book value, unlocking over S$50 million in net gains. During the year, CLAS reinvested proceeds from previous divestments into approximately S$210 million of accretive acquisitions. These acquisitions comprised two hotels and three rental housing properties in Japan. CLAS also completed two AEIs in Paris and Seoul. In 2026 and 2027, CLAS has planned five more AEIs. The properties are The Cavendish London in the United Kingdom, Sotetsu Grand Fresa Osaka-Namba in Japan, Sheraton Tribeca New York Hotel in the USA, Citadines Place d’Italie Paris in France and Sydney Central Hotel in Australia. Additionally, we are redeveloping our 192-unit Somerset property in Clarke Quay, Singapore. Development is slated for completion in 2026 and the property is expected to open in 2027. Disciplined Capital Management Maintaining a strong financial position remains a key priority for CLAS. We hold an investment grade credit rating of BBB with a stable outlook by Fitch Ratings. We maintain a disciplined capital management approach by recycling capital from divestments, accessing debt markets judiciously, and upholding a well-staggered debt maturity profile. This strategy ensures that CLAS is well-positioned to pursue accretive opportunities while effectively managing risks in a dynamic macroeconomic environment. As at 31 December 2025, gearing stood at 37.7%, well within regulatory limits and providing ample debt headroom for growth. As at 31 December 2025, CLAS’ average cost of debt was 2.9% per annum and we expect it to be relatively stable in 2026. Interest cover is healthy at 3.0 times. Our exposure to foreign exchange movements is mitigated by our geographically diversified portfolio and hedging strategies. Creating Sustainable Value While macroeconomic uncertainties are expected to persist, CLAS’ diversified portfolio and proactive asset management ensure CLAS is well-positioned to navigate the evolving landscape. In our next phase of growth, we will further enhance the resilience of CLAS’ portfolio by strengthening our presence in key markets and recycling capital from divestments. In February 2026, we acquired three rental housing properties in Greater Tokyo, Japan, progressing towards CLAS' medium-term portfolio allocation of 25%–30% in the living sector and 70%–75% in hospitality assets. We remain disciplined in our value-creation strategy. This includes prioritising yield-accretive investments, undertaking AEIs for properties in prime locations, upholding operational excellence, and advancing sustainability efforts that drive long-term value. As we pursue these growth initiatives, CLAS is committed to delivering stable distributions through stronger core operating performance. We have the flexibility to distribute gains from past divestments to mitigate the impact of AEIs on CLAS’ income. As we mark CLAS’ 20th anniversary, we extend our deepest appreciation to our Stapled Securityholders for your trust and support; to our Sponsor, The Ascott Limited; to our operators for your strong partnership; and to our teams around the world for your dedication. We remain steadfast in upholding CLAS’ legacy of excellence and disciplined growth in the years ahead. Lui Chong Chee Chairman Serena Teo Chief Executive Officer Sincerely, 1 Relates to realised exchange gain arising from the settlement of cross currency interest rate swaps and repayment of foreign currency bank loans and medium term notes.
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