FY2025 Results Release Financial Statement

1. CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2
2. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION 3
3. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY 4
4. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS 6
5. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 8
6. OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2 25

1. CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

1. 1. 6 months ended 31 December 12 months ended 31 December

1. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION

1. 1. Group Company

1. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY

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The Group

Attributable to equity holders of the Company

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1. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY (continued)

1. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

Twelve months ended

31 December

1. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

1. 1. The following significant non-cash investing activities were excluded from the consolidated statement of cash flows as they did not involve movements of cash or cash equivalents:

1. 1. Certain advances from joint ventures as at 31 December 2024 were settled through non-cash distributions declared by the joint ventures, amounting to $9,718,000.
   2. In connection with the Group's fund investment during the financial year, advances to joint ventures of $5,822,000 were reclassified to investments in joint ventures pursuant to a capital restructuring.
2. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

1. General information

1. 1. Far East Orchard Limited (the "Company") is listed on the Singapore Exchange and incorporated and domiciled in Singapore. These condensed interim financial statements as at and for the six months and full year ended 31 December 2025 comprise the Company and its subsidiaries (the "Group"). The principal activities of the Company are investment holding, hotel operations and property investment. The principal activities of the Group are investment holding, ownership and management of hospitality properties and purpose-built student accommodation ("PBSA") properties, property development and property investment.

1. Basis of preparation

1. 1. The condensed interim financial statements as at and for the six months and full year ended 31 December 2025 have been prepared in accordance with Singapore Financial Reporting Standards (International) ("SFRS(I)") 1-34 Interim Financial Reportingissued by the Accounting Standards Committee and should be read in conjunction with the Group's annual financial statements as at and for the financial year ended 31 December 2024. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last annual financial statements for the financial year ended 31 December 2024. The accounting policies adopted are consistent with those disclosed in the Group's annual financial statements as at and for the year ended 31 December 2024 which were prepared in accordance with SFRS(I), except for the adoption of new and amended standards as set out in Note 2.1. The condensed interim financial statements are presented in Singapore dollar, which is the Company's functional currency.

1. 1. New and amended standards adopted by the Group

1. 1. 1. On 1 January 2025, the Group has adopted the new or amended SFRS(I) and Interpretations of SFRS(I) ("INT SFRS(I)") that are mandatory for application for the financial year. Changes to the Group's accounting policies have been made as required, in accordance with the transitional provisions in the respective SFRS(I) and INT SFRS(I). The adoption of these new or amended SFRS(I) and INT SFRS(I) did not result in substantial changes to the Group's accounting policies and had no material effect on the financial statements.

1. 1. Critical accounting estimates, assumptions and judgements

1. 1. 1. In preparing the condensed interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2024. Estimates, assumptions and judgements are reviewed on an ongoing basis and are based on historical experience and various other factors, including expectations of future events that are believed to be reasonable under the current circumstances. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next interim period are included in the following notes:

• • • Notes 9 and 10 - Valuation of investment properties and land and buildings classified under property, plant and equipment using significant unobservable inputs
    • Note 11 - Impairment assessment of goodwill: key assumptions underlying recoverable amounts

1. Seasonal operations

1. 1. The Group's businesses are not affected significantly by seasonal or cyclical factors during the six months and full year ended 31 December 2025. E. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (continued)

1. Revenue

1. 1. 6 months ended 31 December Group 12 months ended 31 December

1. The Group derives revenue from the transfer of goods and services over time in the following major revenue streams: 6 months ended 31 December Group 12 months ended 31 December

1. *Other related parties and the joint venture comprise mainly companies which are controlled by the equity holders of the Company's ultimate holding company.

1. Profit before income tax

5.1 Significant items

31 December

Group

12 months ended

31 December

2025 2024 Increase/ (Decrease)

2025 2024 Increase/ (Decrease)

The following items were credited/(charged) to the income statement:

E. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (continued)

1. Profit before income tax (continued)

   1. Significant items (continued)

1. 1. 1. 6 months ended 31 December Group 12 months ended 31 December 2025 2024 Increase/ (Decrease) 2025 2024 Increase/ (Decrease) The following items were credited/(charged) to the income statement: (continued) $'000 $'000 % $'000 $'000 %

1. 1. 1. Interest income from bank deposits declined for the six months and full year ended 31 December 2025 due to lower bank deposits and reduced interest rates.

1. 1. 1. Interest expense on bank borrowings, after including effects of cash flow hedges, increased for the six months and full year ended 31 December 2025 due to the expiration of a low-rate fixed interest hedge on certain borrowings in December 2024.

1. 1. 1. Government grant income declined for the six months and full year ended 31 December 2025 due to lesser grants received from the Singapore government.
      2. Impairment charge was recognised on a mixed development held for sale in the UK based on its net realisable value. The net realisable value was derived with reference to indicative market price as at 31 December 2025.
      3. A one-off gain on the acquisition of additional interest in a property joint venture in Singapore was recognised during the full year ended 31 December 2025 as the purchase consideration was lower than the fair value of the additional share of net assets acquired (Note 8(b)).
      4. A one-off gain in relation to the re-measurement of the Group's previously held 49% equity interest in Homes for Students Limited was recognised following completion of the second stage of the phased acquisition (Note 8(c)).
      5. A gain on disposal of a hotel property in Perth, Australia of $5,867,000 was recognised in 2024 subsequent to the completion of the sale in December 2024.
   2. Related party transactions

1. 1. 1. There are no material related party transactions apart from those disclosed elsewhere in the condensed interim financial statements. E. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (continued)

1. Income tax (credit)/expense

1. 1. 6 months ended 31 December Group 12 months ended 31 December Tax expense attributable to profit is made up of: Profit for the financial year: 2025 2024 2025 2024 $'000 $'000 $'000 $'000 - Current income tax 3,268 4,245 8,981 7,877 - Deferred income tax (2,014) 4,906 (2,047) 4,811 1,254 9,151 6,934 12,688 (Over-provision)/Under-provision in prior financial years: - Current income tax (1,944) (1,168) (2,566) (1,168) - Deferred income tax - 447 - - (690) 8,430 4,368 11,520

1. Cash and bank balances

1. 1. For the purpose of presenting the condensed interim consolidated statement of cash flows, cash and cash equivalents comprise the following: Group 31 December 2025 31 December 2024 $'000 $'000 Cash and bank balances 178,749200,888 Less: Bank deposits pledged  (17,915) (21,694) Cash and cash equivalents per condensed interim consolidated statement of cash flows  160,834 179,194 Please refer to Note 19 for the effects of acquisition of businesses on the cash flows of the Group.

1. Investments in associated companies and joint ventures

1. The Group holds a 36.5% interest in FE UK Student Accommodation Development Fund ("the Fund"). The Fund was established in August 2024 and achieved its final closing in June 2025 with total committed capital of £96.0 million. The Group's investment is accounted for as a joint venture.

1. As at 31 December 2025, the Group had committed £35.0 million to the Fund, of which £10,826,000 (approximately $18,754,000) was injected as capital. The remaining committed capital, based on the Group's proportionate interest, amounted to £24,174,000 (approximately $41,876,000).

1. On 24 January 2025, the Group through its wholly owned subsidiary, acquired additional 6.7% interest (the "WS Acquisition") in Woodlands Square Pte. Ltd, ("WSPL") for $25.0 million from one of its joint venture partners ("Seller"). 26.6% interest in WSPL held by Seller was sold to the other existing joint venture partner ("Partner"). Subsequent to the WS Acquisition, the Group's interest in WSPL increased from 33.3% to 40.0% while the Partner holds the remaining 60.0% interest. As the purchase consideration was below the fair value of the additional share of net assets acquired, a one-off gain of $9,122,000 was recognised in "Other gains/(losses) and impairment losses - net" (Note 5.1(d)). With the loss of joint control following the Partner's increase in interest in WSPL to 60%, WSPL was reclassified from a joint venture to an associate.
2. On 30 September 2025, the Group completed the second stage of the phased acquisition of its interest in Homes for Students Limited ("HFS"), increasing its equity interest from 49% to 84% and resulting in the Group obtaining control over HFS. As such, HFS was reclassified from an associate to a subsidiary and the Group's previously held equity interest in HFS was remeasured to fair value, with reference to the purchase consideration, resulting in a gain on remeasurement of $19,783,000 that was recognised in profit or loss under "Other gains/(losses) and impairment losses

1. - net" (Note 5.1(e)). Further details of the acquisition are set out in Note 19. E. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (continued)

1. 1. Investments in associated companies and joint ventures (continued)
2. On 21 June 2024, the Group announced that Far East Opus Pte. Ltd. ("FEOpus"), a joint venture entity in which the Group holds a 20% interest in, was served with legal claims in the High Court of Singapore on 31 May 2024 by some unit owners ("claimants") of SBF Center, a commercial development completed in 2016. FEOpus disputes these claims and believes they are without merit. As announced on 10 June 2025, FEOpus succeeded in its appeal to strike out one claimant's application. As this was a test case, subject to any further appeal, the Court's findings on the law will be binding on all the other claimants. On 24 July 2025, the claimant in the test case filed a further appeal against the Court's decision. The matter is currently before the Court of Appeal.

1. Even if the claimants are successful in their claims, the maximum potential financial exposure estimated is not expected to have a material impact on the Group's financial position and ability to continue its existing business operations. As at 31 December 2025, no provision has therefore been made on the claims.

1. In March 2022, a claim was lodged against a subsidiary of a joint venture, Toga Hotel Holdings Unit Trust ("Toga Trust"), alleging underpayment of rent for a lease, wrongful termination of the lease and repudiation of the lease. As at 31 December 2024, no provision has been made as the legal advice obtained by the joint venture entity indicates that it is not probable that a material liability will arise. In September 2025, subsequent to a court judgment issued against Toga Trust, a one-off recognition of the liability in relation to this claim has been recognised accordingly.
2. During the financial year ended 31 December 2025, the Group extended advances of £350,000 ($608,000) to a joint venture developing a purpose-built student accommodation project in Bristol, UK. The Group will provide additional funding of £408,000 (approximately $706,000), if called.

1. Investment properties

Group  Company

Valuation processes, techniques and inputs used in Level 3 fair value measurements

The Group's investment properties and land and buildings classified under property, plant and equipment (Note 10) are measured at fair value using valuation techniques that incorporate significant unobservable inputs and are therefore categorised as Level 3 in the fair value hierarchy. The valuation techniques applied include sales comparison, discounted cash flow, and income capitalisation methods.

In assessing whether the fair values remained appropriate, management considered whether any movement in market data, such as discount rates, capitalisation rates, changes in underlying cash flows or sales comparable adopted in the valuations are reasonable. There have been no significant changes in the valuation methodologies used by the valuers compared to the last financial year-end.

As at 31 December 2025, the fair value of the investment properties amounted to $1,030,534,000 (31 December 2024:

$1,011,382,000).

1. Investment properties (continued)

1. 1. Reconciliation of fair value measurement to valuation report
   2. Group  Company 31 December 2025 31 December 2024 31 December 2025 31 December 2024 $'000 $'000 $'000 $'000 Fair value of investment properties based on valuation report 1,031,6121,012,410 158,000147,200 Less: carrying amount of accrued receivables  (1,078) (1,028)  - -Carrying amount of investment properties 1,030,5341,011,382 158,000147,200

1. Property, plant and equipment

Group

Year ended 31 December 2025Beginning net book value Currency translation differences

Acquisition of businesses (Note 19) Additions

Disposals Transfers

Reversal of impairment loss (Note 5.1)

Revaluation adjustments

- other comprehensive loss Depreciation charge (Note 5.1) End of financial year

As at 31 December 2025

Cost Valuation

Accumulated depreciation and impairment losses

Net book value

As at 31 December 2024Cost

Valuation

Accumulated depreciation and impairment losses

Net book value

As at 31 December 2025, the Group's carrying value of property, plant and equipment included right-of-use assets amounting to $57,079,000 (2024: $64,412,000).

Company

During the financial year ended 31 December 2025, the Company acquired property, plant, and equipment amounting to

$591,000. No right-of-use assets were acquired, and disposed assets with carrying value of $1,000.

1. Property, plant and equipment (continued)

1. 1. Valuation processes, techniques and inputs used in Level 3 fair value measurements
   2. The Group engages external, independent and qualified valuers to determine the fair value of the Group's land and buildings classified as property, plant and equipment, on an annual basis and whenever their carrying amounts are likely to differ materially from their revalued amounts, based on the properties' highest and best use. At the end of each financial reporting period, management assesses whether the fair values of the Group's properties remain appropriate and engages external, independent and qualified valuers when deemed necessary. The valuation techniques applied incorporate significant unobservable inputs and the resulting fair value measurements are categorised as Level 3 in the fair value hierarchy. External valuers were engaged for all valuations of the Group's properties as at 31 December 2025. The valuation techniques and key unobservable inputs used were consistent with those applied in the previous financial year. As at 31 December 2025, the total freehold and leasehold land and buildings of the Group amounted to $455,758,000 (31 December 2024: $466,604,000).

1. Intangible assets

1. 1. Intangible assets include goodwill on acquisitions, acquired management contracts and customer relationships. Goodwill includes (i) $37,257,000 allocated to the Management services cash-generating-unit ("CGU") within the Group's hospitality business and (ii) $62,957,000 arising from the acquisition of Homes for Students Limited ("HFS"), under Operations within the Student Accommodation business (Note 19).

1. 1. Goodwill of $37,257,000 is allocated to the Management services cash-generating-unit ("CGU") within the Group's hospitality business. For the impairment assessment as at 31 December 2025, the recoverable amount of the Management services CGU was determined based on fair value less cost to sell ("FVLCTS"), which was computed using the average of the values derived Discounted Cash Flow method and Guideline Public Company method (Level 3 valuation techniques) based on management's estimates. For further information, please refer to Note 23(a) in the Group's annual financial statements for the year ended 31 December 2024.
   2. Goodwill and identifiable intangible assets were recognised on the acquisition of Homes for Students Limited following the completion of the purchase price allocation exercise. The residual goodwill is subject to annual impairment testing. As at 31 December 2025, management has assessed that the recoverable amount of goodwill arising from the acquisition approximates its carrying value given the completion date is close to year-end. Further details on the goodwill and identifiable intangible assets are disclosed in Note 19.

1. 1. Based on management's assessment of the recoverable amount as at 31 December 2025, no impairment charge was recognised.

1. Borrowings

1. 1. Group  Company

1. The secured bank borrowings of the Group and the Company are secured over certain bank deposits, investment properties and property, plant and equipment. E. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (continued)

1. Share capital

1. 1. Group and Company

1. The Company has not issued any convertibles nor holds any treasury shares as at 31 December 2025 and 31 December 2024. The Company's subsidiaries do not hold any shares in the Company as at 31 December 2025 and 31 December 2024. There were no sales, transfers, disposal, cancellation and/or use of treasury shares and subsidiary holdings as at 31 December 2025 and 31 December 2024.

1. Dividend

1. 1. A first and final dividend of 4 cents per share and a special dividend of 1 cent per share amounting to a total of $24,455,000 relating to 2024 ("FY2024 Dividend") was approved at the Annual General Meeting held on 25 April 2025. On 4 July 2025, 1,840,557 new shares amounting to $1,846,000 have been allotted and issued to the eligible shareholders who had elected to participate in the Scrip Dividend Scheme in respect of the FY2024 Dividend. Dividends amounting to $22,609,000 have been paid in cash on 4 July 2025. A first and final dividend of 4 cents per share amounting to a total of $19,510,000 relating to 2023 ("FY2023 Dividend") was approved at the Annual General Meeting held on 25 April 2024. 1,341,401 new shares amounting to $1,343,000 were allotted and issued on 5 July 2024 to the eligible shareholders who had elected to participate in the Scrip Dividend Scheme in respect of the FY2023 Dividend. Dividends amounting to $18,167,000 were paid in cash on 5 July 2024. At the upcoming Annual General Meeting, a first and final dividend of 4 cents per share amounting to a total of $19,638,000 will be recommended. These financial statements do not reflect this dividend, which will be accounted for in equity attributable to equity holders of the Company as an appropriation of retained profits in the financial year ending 31 December 2026.

1. Capital commitments

1. 1. Capital expenditures contracted for at the balance sheet date but not recognised in the financial statements are as follows: Group 31 December 2025 31 December 2024 $'000 $'000 Investment properties 3541,105 Property, plant and equipment  5,891 9,652 6,245 10,757 Capital commitments as at 31 December 2025 and 31 December 2024 for property, plant and equipment relate mainly to refurbishment works for a hotel in Perth.

1. Net asset value

1. 1. Group  Company Net asset value per ordinary share based on total number of issued shares 31 December 2025 31 December 2024 31 December 2025 31 December 2024 as at the end of the year $2.87$2.84 $2.34$2.35 E. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (continued)

1. Fair value measurements

1. 1. The table below presents assets and liabilities recognised and measured at fair value and classified by level of the following fair value measurement hierarchy:

1. 1. quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
   2. inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e., derived from prices) (Level 2); and
   3. inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

1. Fair value measurement disclosure of other assets that are recognised or measured at fair value, can be found in Note 9 and 10.

1. The Group's policy is to recognise transfers into and transfers out of fair value hierarchy level as at the end of the reporting year. There were no transfers between Levels 1, 2 and 3 during the year. The fair values of current financial assets and liabilities carried at amortised cost approximate their carrying amounts. Derivative financial instruments Derivative financial instruments comprise interest rate swaps designated as cash flow hedges of floating rate borrowings. These instruments are measured at fair value at each reporting date and are classified under Level 2 of the fair value hierarchy, as their fair values are determined using valuation techniques with observable market inputs, including forward interest rates and yield curves. Financial asset, at FVOCI For the investment classified as FVOCI, it is an unlisted equity security measured at fair value at each reporting period. The Group estimates the fair value of its unlisted equity security classified as FVOCI based on its share of the investee company's net asset value ("NAV"), which is a significant unobservable input. NAV is determined by reference to the attributable net assets of the investee company based on the latest available financial statements, adjusted, where applicable, for valuations of the underlying investment properties held by the investee determined primarily by independent and professional valuers. Management reviews the appropriateness of the methodologies used to determine NAV, and evaluates the appropriateness and reliability of inputs (including those developed internally by management) used in the determination of NAV. E. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (continued)

1. Segment information

1. 1. For the year ended 31 December 2025, the Group has updated its reportable segments and restated the comparatives to better reflect the business activities of the Group and in accordance with how the Group's Group Chief Executive Officer assesses the operating segments' results. With the expansion of the Group's student accommodation business following the acquisition of Homes for Students Limited, a UK-based operator, the reportable segment under the student accommodation business has been expanded into two segments to include both the property ownership and operations segments. The freehold and leasehold land of a hotel in Singapore is classified under the property development segment, as it is held for future use. Further, certain corporate expenses have been re-classified under the respective reportable segments to better reflect the costs supporting the business segments. The Group operates its hospitality business across three segments.

1. 1. Management services

1. 1. The management services segment includes all of the hospitality properties that the Group manages directly in Singapore, Japan, and Malaysia.

1. 1. Operations

1. 1. The operations segment includes leased properties in Singapore, Japan and Australia and the Group's investment in Toga Hotel Holdings Unit Trust and the REIT Manager of Far East Hospitality Trust.

1. 1. Property ownership

The property ownership segment includes hospitality properties located in Australia, Germany, Denmark, Malaysia

and Japan that are owned directly by the Group or through the Group's investments in joint ventures.

The Group manages its student accommodation business across two segments.

1. Property ownership

1. The property ownership segment includes properties located in the United Kingdom that are owned directly or held through a joint venture by the Group, and including those under development, that are held for rentals and/or longterm capital appreciation. The segment also includes the Group's investment in a student accommodation development fund.

1. Operations

The operations segment comprises the Group's investment in a United Kingdom-based operator of purpose-built student accommodation, which is accounted for as an associate prior to 30 September 2025 and subsequently consolidated (Note 8(c)). The operator is principally engaged in the management of student accommodation assets specifically designed to serve the housing needs of students.

The Group manages its property business across two segments.

1. Development

1. The development segment includes all unsold completed properties that are held through either joint ventures or joint operations, medical suites that are held for sale and the mixed development that are held for sale in the United Kingdom, as well as land held for future use. Rental income, if any, from the leasing of properties held for sale is included under the investment segment in the reports reviewed by the Group's Group Chief Executive Officer.

1. Investment

The investment segment includes medical suites that are held for rentals or/and long-term capital appreciation.

There was no revenue from transactions with a single external customer that accounts for 10% or more of the Group's

revenue for the full year ended 31 December 2025 and 2024.

Hospitality Student accommodation Property Total

Management

services Operations

Property ownership

Property

ownership Operations Development Investment 

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$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

18. Segment information (continued)

Investments in associated

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(b) During the year ended 31 December 2025, the Group acquired property, plant and equipment amounting to $2,000 under Corporate assets segment.

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Hospitality Student accommodation Property Total

18. Segment information (continued)

Investments in associated

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(b) During the year ended 31 December 2024, the Group acquired property, plant and equipment amounting to $49,000 under Corporate assets segment.

1. Segment information (continued)

1. 1. Geographical information
   2. The Group's business segments operate in five main geographical areas:

• • Singapore - the Company is headquartered and has operations in Singapore. The operations in this area are principally the management of hospitality properties, hotel operations, property development, property investment and investment holding.
  • Australia - the operations in this area are principally the management of hospitality properties, hotel operations and property ownership.
  • United Kingdom - the operations in this area are principally student accommodation, property development and management of student accommodation properties.
  • Japan - the operations include management of hospitality properties, hotel operations and property ownership in Japan.
  • Other countries - the operations include hotel operations and property ownership in Malaysia, Germany and Denmark.

• • Revenue 12 months ended