201 CORPORATE GOVERNANCE REPORT Integrated Annual Report 2025 Summary of Key Risk Movements (Q1 → Q4) Q1 → Q2 (Improvement Phase) Residual impact reduced across key investment and divestment risks, reflecting progress in activities and stable operational conditions. ESG-related risk increased modestly due to early-stage green energy initiatives. Overall, the REIT recorded an improved risk posture. Q2 → Q3 (Deterioration & Expansion) Q3 introduced significant new exposures, expanding the risk universe from 6 to 12 risks. These included: • capital-raising challenges, • failure to execute acquisitions/disposals, • tenant concentration dependency, • competitive REIT landscape pressures, • solar PV and chiller project delays. These new risks carried Moderate to Very High impact ratings, resulting in a higher overall risk baseline despite stability in some Q2 risks. Q3 → Q4 (Stabilisation) Operational risks improved due to progress in ESG project execution. However, strategic risks particularly transaction delays, concentration risk, valuation pressure and funding constraints remained High to Very High, anchoring the REIT’s overall impact profile at an elevated level compared with Q1. Mitigation Actions Undertaken and Planned The Manager continuously implements mitigation measures aligned to the REIT’s risk appetite and strategic priorities. Strategic Mitigation • Establishment of a MIC to monitor execution for key acquisitions/disposals • Enhanced due diligence and technical advisory for complex transactions • Development of a portfolio rebalancing roadmap – in progress Financial Mitigation • Strengthening capital readiness through proactive refinancing • Maintenance of funding headroom dashboards and liquidity buffers • Continued engagement with financial institutions and capital market stakeholders • Investor communication to support sentiment and unit liquidity Operational & ESG Mitigation • Setting up Project Management Team with tenant to oversight Solar PV and chiller replacement projects • Embedding Green Lease clauses and decarbonisation plan Valuation & Asset Resilience Mitigation • Asset health diagnostics across ageing assets • Prioritised AEI planning aligned to yield, ESG and valuation uplift • Integration of ESG considerations in acquisition/ divestment analysis Market & Sentiment Mitigation • Quarterly benchmarking against peer REITs • Clear IR positioning on DPU outlook and sustainability progress • Publication of a REIT Strategy Outlook to strengthen transparency and investor trust STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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