ESR REIT Advances Portfolio Rejuvenation And Capital Recycling Strategy With Proposed Divestment Of Eight Non-Core Singapore Assets Totalling S$338.1 Million

(Constituted in the Republic of Singapore pursuant to a trust deed dated 31 March 2006 (as amended))

MEDIA RELEASE

For immediate release

• S$338.1 million Proposed Divestment, representing a 2.0% premium to independent valuation

• Portfolio quality enhancement, with land lease tenure improving from 43.3 to 44.8 years across the portfolio and WALE increasing from 4.1 to 4.3 years

• Reduced short land lease exposure of assets of <15 years from 13.2% to 11.8%1, reducing impact of land lease decay on NAV

• Pro forma leverage improves from 42.8% to approximately 39.2%, expanding debt headroom to approximately S$1,114.0 million

• Strengthened financial flexibility to embark on future value-accretive New Economy opportunities through AEIs, redevelopments and acquisitions

The Divestment Properties comprise: 46A Tanjong Penjuru, 86 & 88 International Road, 120 Pioneer Road, 21 & 23 Ubi Road 1, 24 Jurong Port Road, 13 Jalan Terusan, 60 Tuas South Street 1, and 43 Tuas View Circuit.

The Divestment Consideration represents a premium of 2.0% to the independent valuation of the Divestment Properties as at 30 November 2025.

Detailed information of the Divestment Properties is provided in the Appendix.

Commenting on the Proposed Divestment, Mr. Adrian Chui, Chief Executive Officer & Executive Director of the Manager, said, "The Proposed Divestment represents a disciplined and strategic step in our ongoing Portfolio Rejuvenation and Capital Recycling efforts. By realising value from non-core assets, we continue to reduce the impact of land lease decay in our net asset value ("NAV"). Through enhancing our balance sheet strength, ESR-REIT is better positioned to pursue new, value-accretive New Economy opportunities though asset enhancement initiatives ("AEIs"), redevelopments and acquisitions. The improvements in portfolio fundamentals, leverage and debt headroom underscore our commitment to delivering sustainable total returns to our Unitholders."

1. ‌Based on valuation as at 31 December 2024

   Proposed Divestment Enhances Portfolio Resilience and Financial Flexibility

   The Proposed Divestment is expected to enhance ESR-REIT's overall portfolio quality upon

   completion. On a pro forma basis as at 30 September 2025:

   • Portfolio weighted average remaining land lease will improve from 43.3 years to 44.8 years;

   • For the Singapore portfolio specifically, weighted average remaining land lease will improve from 31.0 years to 31.8 years; and

   • Weighted average lease expiry ("WALE") will increase from 4.1 years to 4.3 years

     
     
     
     
     
     

     As at 30 September 2025, 13.2% of ESR-REIT's portfolio comprises assets with remaining land leases of less than 15 years. Upon completion of the Proposed Divestment, this proportion is projected to decrease to 11.8%2, consistent with ESR-REIT's strategy to reduce the land lease decay impact on its NAV. Notably, four of the properties within the Proposed Divestment portfolio have land leases of approximately 13 years or less, and the divestment will meaningfully reduce ESR-REIT's exposure to such assets with short land lease tenures.

2. ‌Based on valuation as at 31 December 2024

   Assuming all net proceeds are fully utilised to repay existing debt, ESR-REIT's pro forma aggregate leverage as at 31 December 2024 will reduce from 42.8% to approximately 39.2% and is expected to increase ESR-REIT's pro forma debt headroom from S$790.2 million to approximately S$1,114.0 million, providing substantial financial flexibility to pursue future accretive investment opportunities. In addition, ESR-REIT's pro forma interest coverage ratio ("ICR") for the trailing 12 months as at 31 December 2024 is expected to improve from 2.5x to 2.6x, further strengthening ESR-REIT's capital structure.

   Pro Forma Financial Impact

   For illustration purposes, assuming that the Proposed Divestment was completed on 1 January 2024, the pro forma financial effect of the Proposed Divestment on ESR-REIT's Distribution per Unit ("DPU") for FY2024, will result in a -4.1% drop in DPU from 21.1903 Singapore cents to 20.323 Singapore cents, and the pro forma financial effect on NAV per Unit will result in an unchanged NAV per Unit of S$2.754. ESR-REIT's pro forma aggregate leverage as at 31 December 2024 will decrease from 42.8% to approximately 39.2%.

   More Information on the Divestment Properties

   The Divestment Properties were identified as part of the Manager's ongoing Portfolio Rejuvenation strategy to divest non-core assets in the portfolio, particularly those with short land lease tenures, to minimise the impact of land lease decay on NAV while supporting stable and growing distributions and NAV, and maintaining a future-ready asset portfolio. This approach aims to deliver sustainable total returns to the Unitholders of ESR-REIT.

   The Proposed Divestments are also a key component of ESR-REIT's Capital Recycling strategy, and aligns with its proactive asset management approach, providing financial flexibility to redeploy sales proceeds into new, value-accretive New Economy opportunities through AEIs, redevelopments and acquisitions.

   The Divestment Properties are located in Singapore and are sited on leasehold land with an average remaining land lease of 22.4 years as at 30 September 2025.

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   For media and analyst enquiries, please contact:

   ESR-REIT Management (S) Limited Lyn Ong

   Senior Manager,

   Capital Markets and Investor Relations P: +65 6222 3339

   lyn.ong@esr-reit.com.sg

   Sua Xiu Kai

   Manager,

   Corporate Communications P: +65 6222 3339

   xiukai.sua@esr-reit.com.sg

3. ‌Units and DPU figures have been adjusted for the 10:1 Unit consolidation completed on 5 May 2025

4. ‌Units and NAV figures have been adjusted for the 10:1 Unit consolidation completed on 5 May 2025

1. ‌The remaining land lease is calculated as at 30 September 2025

2. ‌This refers to the weighted average remaining land lease of the Divestment Properties as at 30 September 2025

3. ‌Based on the independent valuation of each of the Divestment Properties by the Independent Valuers as at 30 November 2025. Please refer to paragraph 3.1 of announcement titled

   "PROPOSED DIVESTMENT OF PORTFOLIO OF EIGHT (8) INDUSTRIAL PROPERTIES LOCATED IN SINGAPORE" announced on 15 December 2025 for further details

4. Any discrepancies in the total figures are due to rounding

ESR-REIT is a leading New Economy and future-ready Asia Pacific S-REIT. Listed on the Singapore Exchange Securities Trading Limited since 25 July 2006, ESR-REIT invests in quality income-producing industrial properties in key gateway markets.

As at 30 June 2025, ESR-REIT holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties with total assets of approximately S$5.9 billion. Its portfolio comprises 70 properties (excluding 48 Pandan Road held through a joint venture) located across the developed markets of Singapore (50 assets), Australia (18 assets) and Japan (2 assets), with a total gross floor area of approximately 2.5 million sqm, as well as investments in three property funds in Australia. ESR-REIT is also a constituent of the FTSE EPRA Nareit Global Real Estate Index.

ESR-REIT is managed by ESR-REIT Management (S) Limited (the "Manager") and sponsored by

ESR. The Manager is owned by ESR (99.0%) and Shanghai Summit Pte. Ltd. (1.0%), respectively. For further information on ESR-REIT, please visit https://www.esr-reit.com.sg.

ESR is a leading Asia-Pacific real asset owner and manager focused on logistics real estate, data centres, and energy infrastructure that power the digital economy and supply chain for investors, customers, and communities. Through our fully integrated real asset fund management and development platform, we strive to create value and growth opportunities for our global portfolio of investors. We offer our customers modern space solutions to realise their ambitions across Australia and New Zealand, Japan, South Korea, Greater China, Southeast Asia, and India, including a presence in Europe. Our purpose, Space and Investment Solutions for a Sustainable Future, drives us to manage sustainably and impactfully for the communities we serve to thrive for generations to come. Visit https://www.esr.com for more information.