CLAR’s effective approach to capital management was evident in its strong balance sheet which enabled the REIT to mitigate the adverse impacts of interest rate volatility and exchange rate fluctuations. Adequate liquidity allowed CLAR to execute its acquisition and redevelopment plans to support growth in FY 2025. The aggregate leverage was 39.0% as at 31 December 2025, a slight increase from a year ago mainly due to higher borrowings to fund investments. The Manager is of the view that the higher aggregate leverage will not have a material impact on the risk profile of CLAR as it is still at a healthy level. The Manager will remain prudent and disciplined in managing CLAR's capital profile. CLAR’s total debt of approximately S$7.6 billion comprises borrowings in Singapore Dollars, US Dollars, Australian Dollars, Great Britain Pounds and Euros. Despite the continued highinterest rate environment and higher borrowings, CLAR’s weighted average all-in debt cost was lower at 3.5% per annum (p.a.) for FY 2025, compared to 3.7% p.a. in FY 2024. The Interest Coverage Ratio (ICR) stood at a healthy 3.6 times, well above the statutory and bank loan covenants. Additionally, based on stress scenarios, CLAR's ICRs remain comfortably above statutory limits and financial covenants; (i) a 10% decrease in EBITDA would result in an ICR of 3.3 times; (ii) a 100 basis point (bps) increase in weighted average interest rate would lead to an ICR of 2.8 times. A high level of natural hedge of approximately 76% is maintained for CLAR’s overseas investments of about S$5.8 billion, to minimise the effects of adverse exchange rate fluctuations. The use of foreign currency denominated borrowings to match the currency of the underlying assets safeguards CLAR’s net asset value (NAV) per unit which was stable at S$2.21 after adjusting for the amount to be distributed. CLAR’s robust financial metrics are underpinned by our proactive refinancing and capital raising strategies to preserve our strong balance sheet and prudent capital structure. Refinancing of debt ahead of their maturities are proactively explored to manage liquidity risks. In FY 2025, approximately S$0.8 billion of debt was refinanced and termed out with fresh tenures ranging from five to 10 years. This included a S$300 million subordinated green perpetual securities and a S$700 million 7-year green bond which also increased CLAR’s green financing commitment to approximately S$3.3 billion1 or about 44% of total borrowings. Consequently, only 12% of CLAR’s total borrowings would mature over each of the next two years, lowering CLAR’s refinancing risk exposure. The private placement conducted in FY 2025 to raise S$500.0 million of gross proceeds to fund investments and repay debt was met with strong demand. It was approximately 4.1 times covered by new and existing investors. A total of 202,430,000 new units were issued at a price of S$2.470 per unit, representing a discount of approximately 5.2% to the volume weighted average price of S$2.6059 per unit for trades done on the Singapore Exchange Securities Trading Limited for the preceding market day on 27 May 2025. The issue price is also a premium of approximately 12.3% to the adjusted NAV per unit of S$2.20 as at 31 December 2024. The use of proceeds was in accordance with the stated use in the announcements of CLAR dated 29 May 2025 and 11 August 2025. With prudent financial policies and a stable operating track record of consistent income generation, CLAR continues to maintain its A3 investment grade credit rating from Moody’s. CLAR is well positioned to seize investment opportunities when they arise given the large debt headroom of about S$4.2 billion before the aggregate leverage reaches the regulated limit of 50.0% by the Monetary Authority of Singapore (MAS). Debt Maturity Profile Total Borrowings (S$ million) Diversified Financial Resources 848 (12%) 815 (11%) 300 (4%) FY 2034 FY 2032 FY 2031 FY 2030 FY 2029 FY 2028 FY 2027 FY 2026 FY 2025 254 388 239 882 (12%) 453 100 660 1,213 (17%) 208 347 250 137 942 (13%) 569 346 915 (12%) 880 100 980 (13%) 156 300 456 (6%) Medium Term Notes Committed Loan Facilities Revolving Credit Facilities Green Debt 1 Including Green Perpetual Securities of S$300 million. 53% Term Loan Facilities 11% Revolving Credit Facilities 36% Medium Term Notes S$3.3 billion1 Annual Report 2025 19
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