Newport Plaza I Singapore Artist's Impression The technology sector is expected to drive incremental demand for prime, centrally located assets with premium amenities, as companies are reinstating office-based work and relocating from city fringes to the CBD to attract talent. The Group’s office portfolio is poised to benefit from this “flight to quality", with active asset management, prudent cost management and energy-efficient initiatives enhancing rental growth and occupancy. The retail market is expected to remain stable due to resilient domestic spending and tourism recovery. Prime malls should sustain healthy leasing momentum amid limited new supply, while suburban malls are supported by essential and convenience spending, although with more modest rental growth. The Group will continue to drive value, focusing on tenant curation, experiential offerings and asset enhancements as key differentiators. Recent geopolitical developments have increased uncertainty in the hospitality outlook, with potential disruptions to travel and upward pressure on operating costs. The Group continues to closely monitor developments surrounding the Middle East conflict and the potential implications for its operations. While near-term volatility may arise, the Group remains focused on maintaining operational resilience and optimising its geographically-diverse portfolio through targeted refurbishments and disciplined capital management. FOCUS ON VALUE CREATION 2025 was a year of reflection, resilience and disciplined execution for the Group amid a complex operating environment marked by persistent macroeconomic uncertainties. Despite these headwinds, the Group stayed focused on advancing its strategic priorities. Aside from strengthening operational performance, the Group has also embraced capital market engagement as part of its transformation efforts. This ensures alignment with market expectations and the resultant feedback has offered valuable insights that will help shape the Group’s strategy. With the objective of maximising shareholder returns, the Group is actively reviewing its growth strategy, portfolio structures and capital allocation priorities. It has accelerated its value-unlocking initiatives and secured around $2 billion of contracted divestments in 2025. This underscores the Group’s commitment to crystallising value from mature and noncore assets, strengthening its balance sheet and selectively redeploying capital to drive growth. Looking ahead, the Group is entering the next phase of growth with renewed vigour and enhanced clarity. As the Group embarks on this value creation journey, it is well-positioned to deliver sustainable growth and maximise returns for its shareholders. ANNUAL REPORT 2025 | 89
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