On the international front, to replenish our residential land bank in China, we acquired a rare mixed-use development site in Shanghai’s prime Xintiandi area for RMB 8.94 billion (approximately $1.66 billion), with our partner Lianfa Group Co., Ltd, in November 2024. Up to 77% of the site’s Gross Floor Area (GFA) can be used for residential, with up to 19% for commercial purposes and 4% for public amenities. ENHANCEMENT Enhancing asset value and driving operational efficiency To enhance asset value and drive operational efficiency, we continuously explore avenues to maximise our asset portfolio through asset enhancement initiatives (AEIs), asset repositioning and redevelopment opportunities. In June 2024, we officially reopened Jungceylon Shopping Center, our retail mall in Patong, and the adjoining M Social Phuket hotel in Phuket, Thailand, following a major AEI. Both properties have performed well, with Jungceylon achieving a committed occupancy of 90.3% as of 31 December 2024 and a strong rental reversion of 50% on renewed leases over the previous leases signed during the pandemic. Phuket’s tourism continued to rebound with total arrivals up 23% year-onyear (y-o-y), reaching 99% of pre-pandemic levels, which boosted the mall's foot traffic by 30%, while the hotel registered strong performance during the peak season. In Singapore, we completed Phase 1 of City Square Mall’s AEI, refreshing the basement floors, adding new kiosk spaces and more F&B offerings. Phase 2, focusing on the upper floors, is slated to be fully operational by 1H 2025. Even during this period, the mall maintained a strong committed occupancy of 95.7% for unaffected areas. The revamped mall will feature a diverse mix of new-tomarket retailers and refreshed shopper touchpoints for an elevated shopping experience. To unlock value from our asset portfolio and realise GFA uplift by tapping various incentive schemes, we are redeveloping our former Fuji Xerox Towers into Newport Plaza, as well as the former Central Mall and Central Square properties into Union Square. When completed in 2027 and 2029 respectively, these two mixed-use developments will enhance our recurring income. TRANSFORMATION Transforming via strategic investments, fund management and innovation To future-proof our business, we continue to prioritise Environmental, Social and Governance (ESG), harness innovation, optimise internal efficiency as well as transform our portfolio. In 2019, we started expanding into the global living sector which includes asset classes such as the Private Rented Sector (PRS), which are multifamily apartments for rent, and Purpose-Built Student Accommodation (PBSA). Today, we have around 4,600 PRS units and 2,400 PBSA beds, with a total Gross Development Value (GDV) of $2.6 billion across the UK, Japan, Australia and the US. In 2024, we grew our Japan PRS portfolio with the acquisition of four properties: Roygent Saitama Shintoshin (115 units) in Saitama City, Splendide Namba Quartre (104 units) in Osaka, Escenario Akasaka (30 units) in Tokyo and City Lux Tsurumi (183 units) in Yokohama. The Group also completed the forward-commitment investment in Splendide VII, a 264-unit PRS asset in Osaka, bringing our Japan PRS portfolio to 40 assets with a total of 2,246 units. During the COVID-19 years and also post-pandemic, the living sector has proven to be one of the most resilient. As of 31 December 2024, our portfolio achieved a committed occupancy of over 90%. By building scale in this segment, we are focused on achieving two objectives – strengthening our recurring income as well as having a strong base of assets that can be spun off into new platforms that augment our fund management strategy. Prudent capital management and strong investment discipline will remain key tenets of the Group. We will strategically deploy funds for new investments while accelerating divestments to recycle capital. APPRECIATION I wish to express our earnest gratitude to all our shareholders, investors, customers, business partners and stakeholders. Our pledge to the highest standards of corporate governance and transparency is the Group’s guiding principle as we work to rise above challenges. We will continue to embed these practices in our operations and decision-making processes, prioritising the interests of all stakeholders with the aim of maximising value. To our Board of Directors, the Management Executive Committee and Senior Management team, your guidance, leadership and dedication are deeply appreciated. And to all my colleagues, your hard work and commitment set us apart. It is your collective hard work that transforms our vision into results, ensuring that we move forward with passion and purpose. SHERMAN KWEK Group Chief Executive Officer ANNUAL REPORT 2024 OVERVIEW 17
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