OPERATIONS AND MARKET REVIEW Upon the successful completion of the asset enhancement initiative (AEI) at Republic Plaza Tower 2, the asset continued to see robust leasing demand. Both new and renewal leases were secured at positive rental rates, underscoring the asset’s improved market positioning. The Group’s retail portfolio4 achieved a committed occupancy of 97.6% as of 31 December 2025, well above the island-wide rate of 93.7%3. This outperformance reflects resilience and sustained tenant demand even in a selective retail leasing environment. For the year under review, the Group secured approximately 181,000 sq ft of new leases and renewals in its retail portfolio. City Square Mall recorded a high occupancy of 98.7%, supported by continued footfall recovery and strong leasing momentum following the completion of its AEI in 1H 2025, which added around 26,000 sq ft of GFA, and almost reached full committed occupancy by year-end. Post-AEI, the mall has continued to perform steadily, delivering a healthy 9.7% rental reversion on renewed leases. Occupancy at Palais Renaissance was 95.1% and the asset continues to attract luxury retail and beauty concepts, supported by strong tenant retention and favourable lease renewals, reflecting its positioning and relevance within the Orchard Road sub-market. China As of 31 December 2025, the Group’s China office portfolio recorded a committed occupancy of 27.6%, compared with 58.6% a year earlier, mainly due to the significant expansion in net lettable area (NLA) following the completion of several more office buildings in Hong Leong Technology Park Shenzhen, which increased NLA by 67,183 sqm. The office rental market in China continues to remain challenging. On 3 February 2026, the Group completed the divestment of Yaojiang International, a 4,000 sqm office building in North Bund, Shanghai, for RMB 94.1 million (approximately $17.2 million). The transaction is in line with the Group’s disciplined capital recycling and portfolio optimisation strategy, enabling the redeployment of capital towards opportunities with stronger return potential while maintaining balance sheet resilience. The Group will continue to actively review its China portfolio and pursue initiatives to enhance long-term resilience. Thailand Jungceylon Shopping Center in Phuket maintained a resilient committed occupancy of 92.8% as of 31 December 2025, supported by strong positive rental reversion of 18.5%. Phuket’s tourism stabilised with a modest 1.3% year-on-year (y-o-y) increase in visitor arrivals for the full year, although Chinese tourist arrivals have yet to return to pre-pandemic levels. Whilst Jungceylon Shopping Center’s footfall has broadly recovered to pre-pandemic levels, the post-pandemic tourist profile has shifted towards lower average spending per visitor. UK The Central London office leasing market outperformed expectations in 2025, with leasing activity forecasted to reach 10.2 million sq ft, around a 6% increase from 2024 levels and slightly above the 10-year average of 10.0 million sq ft. Benefiting from the ongoing shift towards well-located Grade A space, the Group secured over 250,000 sq ft in renewals, lettings and under-offer transactions in 2025, representing about 24% of its NLA. As of 31 December 2025, the Group’s UK commercial portfolio's committed occupancy rose to 91.1%, up from 79.5% (as of 31 December 2024), with y-o-y improvements across all assets – 125 Old Broad Street (from 79.6% to 92.9%), Aldgate House (from 75.8% to 98.6%) and St Katharine Docks (from 81.0% to 87.0%). Republic Plaza Tower 2 I Singapore 4 Comprises retail only properties and the retail component within integrated developments. Includes Sengkang Grand Mall (in accordance with CDL’s proportionate ownership). 86 | CITY DEVELOPMENTS LIMITED
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