186 CapitaLand Ascendas REIT Notes to the Financial Statements 31 December 2025 28. Financial Risk Management (continued) (d) Liquidity risk Liquidity risk is the risk that the Group or the Trust may encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Trust’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Manager monitors and maintains a level of cash and cash equivalents deemed adequate to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a reasonable period, including the servicing of financial obligations. The Group strives to maintain available banking facilities at a reasonable level to meet its investment opportunities. The Group has in place various credit facilities, a Multicurrency Medium Term Note Programme with a programme limit of $5.0 billion and a Euro Medium Term Note Programme with a programme limit of $7.0 billion (Note 14). The following are the expected contractual undiscounted cash outflows of financial liabilities, including estimated interest payments and excluding the impact of netting arrangements: Within 1 year $’000 After 1 year but within 5 years $’000 After 5 years $’000 Group 2025 Derivative financial assets Interest rate swaps (net-settled) 3,801 2,278 – Cross currency swaps (net-settled) – 7,142 12,669 3,801 9,420 12,669 Non-derivative financial liabilities Loans and borrowings 1,880,496 4,427,138 1,629,601 Trade and other payables1 458,106 - 83 Security deposits 79,173 101,009 48,901 Lease liabilities 42,277 155,907 1,015,205 2,460,052 4,684,054 2,693,790 Derivative financial liabilities Interest rate swaps (net-settled) – (41,414) (16,411) Cross currency swaps (net-settled) (26,333) (8,766) (9,888) Forward contacts (gross-settled) - Inflow 22,769 – – - Outflow (23,533) – – (27,097) (50,180) (26,299) 1 Excludes rental received in advance and GST / VAT payable.
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