NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025 6 INVESTMENT PROPERTIES (CONT’D) Divestments and reclassification to held for sale Pursuant to the Previous Disposition Mandate, during the financial year ended 31 December 2024, the Group completed the divestment of Capitol for US$117.0 million less seller credits, to a third-party purchaser on 28 October 2024 (U.S. time). In addition, the Manager announced the divestment of Plaza on 20 February 2025 for US$51.8 million less seller credits, and the property was classified as asset held for sale in the Group’s statement of financial position as at 31 December 2024 at the carrying amount of US$43.7 million. During the financial year ended 31 December 2025, the Group completed the divestment of Plaza on 25 February 2025 (U.S. time), as well as the divestment of Peachtree for US$133.8 million less seller credits Peachtree on 27 May 2025 (U.S. time). On 30 March 2026, the Manager announced the Proposed Divestment of Figueroa for US$92.5 million less seller credits. Accordingly, the property has been reclassified to asset held for sale at the estimated net sale consideration of US$85.7 million as at 31 December 2025. The fair value measurement of the Group’s investment properties at the reporting date are estimated based on the measurement of objective of IFRS 13 Fair value measurement i.e., to reflect the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions. Depending on the future market conditions, and the commercial considerations of the Manager and the Trustee in procuring the sale of the Group’s properties under the terms and conditions of the above-mentioned Recapitalisation Plan and Master Restructuring Agreement, the actual subsequent sales proceeds from the Group’s properties may be different from their fair value measurement estimated as at 31 December 2025 provided in the list above, and whose information on fair value hierarchy, the valuation techniques and inputs applied are provided below. Measurement of fair value (i) Fair value hierarchy As at 31 December 2025 and 31 December 2024, investment properties, were stated at fair value based on independent valuations undertaken by Cushman and Wakefield of Texas, Inc., except for Figueroa which has been reclassified to held for sale at the estimated net sale consideration. The independent valuers have the appropriate professional qualifications and recent experience in the location and category of the properties being valued. The fair values were generally calculated using the income approach. The two primary income approaches that may be used are the Discounted Cash Flow (“DCF”) and the Direct Capitalisation Method (“DCM”). DCF calculates the present values of future cash flows over a specified time period, including the potential proceeds of a deemed disposition, to determine the fair value. DCM measures the relationship of value to the stabilised net operating income, normally at the first year. Both the DCF and DCM approaches convert the earnings of a property into an estimate of value. The market or direct comparison approach may also be used, which is based on sound considerations for similarity and comparability between properties. Considerations may include geographic location, physical, legal, and revenue generating characteristics, market conditions and financing terms and conditions. The final step in the appraisal process involves the reconciliation of the individual valuation techniques in relationship to their substantiation by market data, and the reliability and applicability of each valuation technique to the subject property. The valuation methods used in determining the fair value involve certain estimates including those relating to discount rate, terminal capitalisation rate and capitalisation rate, which are unobservable. In relying on the valuation reports, the Manager has exercised its judgement and is satisfied that the valuation methods and estimates used are reflective of the current market conditions. The fair value measurement for investment properties has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used. / 124 / EXPANDING HORIZONS
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