180 CapitaLand Ascendas REIT Notes to the Financial Statements 31 December 2025 28. Financial Risk Management (continued) (b) Market risk (i) Currency risk The Group operates in Singapore, Australia, Europe, the UK and US. Entities in the Group regularly transact in currencies other than their respective functional currencies (“foreign currencies”). The Group’s exposure to fluctuations in foreign currency rates relates primarily to its bank borrowings and medium term notes that are denominated in foreign currencies as well as investments in nonSingapore properties. The foreign currencies giving rise to this risk are mainly Australian Dollar (“AUD”), British Pound (“GBP”), Euro (“EUR”), Hong Kong Dollar (“HKD”), Japanese Yen (“JPY”) and US Dollar (“USD”). The Group monitors its foreign currency exposure on an ongoing basis and manages its exposure to adverse movements in foreign currency exchange rates through financial instruments or other suitable financial products. The Group and the Trust enter into CCS with banks to manage currency risk. In relation to foreign currency risk arising from investments in non-Singapore properties, the Group and the Trust had borrowed in the foreign currency of underlying investments to achieve a natural hedge. The Group and the Trust had also entered into forward exchange contracts to hedge the cash flows from overseas investments (Note 13). . The Group’s currency exposure is as follows: SGD $’000 AUD $’000 GBP $’000 EUR $’000 USD $’000 HKD $’000 Net $’000 Group 2025 Financial assets Cash and fixed deposits 49,589 24,972 37,289 36,642 60,952 – 209,444 Trade and other receivables1 37,810 5,713 74,518 3,777 7,137 – 128,955 Finance lease receivables 27,965 – – – – – 27,965 115,364 30,685 111,807 40,419 68,089 – 366,364 Financial liabilities Trade and other payables2 (216,392) (15,359) (140,979) (4,862) (80,597) – (458,189) Security deposits (219,388) (226) (4,259) – (5,210) – (229,083) Lease liabilities (573,761) – (13,388) (17,627) – – (604,776) Loans and borrowings – Gross (3,438,960) (844,273) (479,010) (452,586) (1,721,446) (399,314) (7,335,589) (4,448,501) (859,858) (637,636) (475,075) (1,807,253) (399,314) (8,627,637) Net financial liabilities (4,333,137) (829,173) (525,829) (434,656) (1,739,164) (399,314) (8,261,273) A dd: Net non-financial assets of foreign subsidiaries – 120,366 479,010 452,586 – – 1,051,962 Less: Net financial assets denominated in the respective entities’ functional currency 4,333,137 724,564 183,356 (16,370) 1,825,102 – 7,049,789 Less: Cross currency swap – – – – – 399,314 399,314 Currency exposure – 15,757 136,537 1,560 85,938 – 239,792 1 Excludes prepayments and tax recoverable. 2 Excludes rental received in advance and GST / VAT payable.
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