GROUP CEO’S STATEMENT Dear Shareholders, For the year under review, the Group delivered strong financial and operational performance, reflecting the resilience of our core operating platforms and steady progress in executing our capital recycling and portfolio optimisation initiatives. In 2025, we secured approximately $2 billion in contracted divestments globally – a threefold increase over 2024. These divestments took place across various geographies and asset classes, comprising South Beach mixed-used development, Quayside Isle and City Industrial Building in Singapore, Millennium Hotel St. Louis, Comfort Inn Near Vail Beaver Creek and 1250 Lakeside in the US, and the Bespoke Hotel Osaka Shinsaibashi in Japan. To fuel our growth, we selectively deployed $1.7 billion in new investments, comprising three Government Land Sales (GLS) sites in Singapore as well as the acquisition of Holiday Inn London - Kensington High Street Hotel in the UK. Alongside these capital recycling initiatives, our core operating platforms comprising property development, asset management and hospitality continued to deliver resilient performance. DRIVING SINGAPORE PROPERTY DEVELOPMENT MOMENTUM Singapore remained a key growth driver for the Group in 2025. Together with our joint venture (JV) associates, we sold 1,657 units, including Executive Condominiums (ECs), generating a record $4.35 billion in residential sales value – the highest in the Group’s history – capturing a 13% market share of total developer sales in Singapore. The strong performance was led by two successful launches – The Orie in Toa Payoh and Zyon Grand near the prime River Valley enclave, which are 95% and 87% sold to date, respectively. Our latest residential launch in January 2026, Newport Residences, also met with healthy demand. Located on Anson Road in the CBD, the 246 ultra-luxury freehold residence is part of Newport Plaza, a 45-storey mixed-use landmark with Grade A offices, branded serviced apartments and restaurants. Marking the first city-centre launch of 2026, 57% of units were sold during the launch weekend, and the project is now 67% sold. To replenish our development landbank in Singapore, we successfully tendered for three GLS sites in 2025, comprising Lakeside Drive, Woodlands Drive 17 and Senja Close, and added a further site in early 2026 at Tanjong Rhu Road. Our selective land replenishment has resulted in a healthy launch pipeline of around 1,820 units in Singapore, including around 730 Executive Condominium (EC) units. In Q3 2026, we plan to launch our 570-unit Lakeside Drive project, elegantly named as Lucerne Grand after the famous lake in Switzerland. Located next to Lakeside MRT station and near Jurong Lake, the development will comprise five 17-storey residential towers with commercial space on the first storey. The development will benefit from the ongoing transformation of Jurong Lake District into Singapore’s largest mixed-use business district outside of the CBD, along with improved connectivity in the west with the upcoming Jurong Region MRT Line. ENHANCING PORTFOLIO VALUE THROUGH ASSET OPTIMISATION To strengthen the competitiveness of our portfolio and enhance tenant and shopper experiences, the Group continues to invest in asset enhancement initiatives (AEIs) across our retail and commercial properties to drive long-term value creation. City Square Mall (CSM), the Group’s flagship retail mall in Singapore, completed its phased $50 million AEI in 2025, which included a refresh of the basement floors, an expansion of its F&B offerings and the addition of new kiosk and atrium spaces. Apart from revamped interiors and a revitalised tenant mix, the AEI added about 26,000 square feet (sq ft) of Gross Floor Area (GFA) through space optimisation and incentive schemes. CSM has currently achieved a committed occupancy of close to 100%, supported by strong leasing momentum and visitor footfall. Post-AEI, renewed leases achieved a healthy rental reversion of 9.7%, reflecting the asset’s enhanced positioning. In 2025, we also completed an AEI at Republic Plaza Tower 2, upgrading the main lobbies and common areas, enhancing security features and installing energy-efficient fittings in line with the Group’s sustainability goals. Post-AEI, the office building has achieved 100% occupancy with positive rental reversions on both new and renewed leases. Beyond asset enhancements, the Group continues to unlock value through strategic redevelopment opportunities. By tapping onto Government incentive schemes, we have secured GFA uplifts for our two ongoing redevelopment projects – Newport Plaza and Union Square. Both projects are progressing well, with expected completion in 2027 and 2029, respectively. At Union Square Central, we have secured a new anchor tenant and achieved pre-leasing commitments of 52%, reflecting strong demand for well-located Grade A office space. We will continue to explore feasible redevelopment opportunities across our portfolio to drive further value creation. 16 | CITY DEVELOPMENTS LIMITED
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