US In 2025, the US economy increased 2.1% YoY primarily reflecting increases in consumer spending and investment according to the US Bureau of Economic Analysis. The IMF estimates that the US economy will expand by 2.4% in 2026. Core CPI rose 2.6% for the 12 months ending December 2025 which was unchanged from November 2025. In January 2026, the US Federal Reserve maintained the target range for the federal funds rate at 3.50% to 3.75%. While inflation remains slightly elevated, available indicators suggest that economic activity has been expanding at a solid pace. As at 31 December 2025, CLAR’s US portfolio was valued at S$2.0 billion, comprising Business Space & Life Sciences and Logistics properties. The portfolio is expected to grow to approximately S$2.2 billion with the addition of DHL Canal Winchester and the completion of Summerville Logistics Center in 1Q 2026. The Manager remains selective on investment opportunities to expand CLAR’s logistics presence and continues to focus on proactive asset management to enhance operational performance. CLAR’s US portfolio has a long WALE of 4.6 years with approximately 2.6% of the portfolio’s gross rental income due for renewal in FY 2026. UK/Europe The UK economy is estimated to have increased by 1.3% YoY in 2025, following growth of 1.1% in 2024 (source: Office for National Statistics). The IMF estimates that growth is expected to remain steady at 1.3% in 2026. In December 2025, the Bank of England’s Monetary Policy Committee lowered the Bank Rate by 25 bps to 3.75% as inflation had eased and is expected to fall back towards the target of 2% in the near term. The European Union (EU) economy was estimated to have grown by 1.6% YoY (source: European Commission). According to the European Commission’s Autumn Forecast, the EU economy is projected to grow at a rate of 1.4% in 2026. The European Central Bank has kept its key interest rates unchanged since June 2025 as it is determined to ensure that inflation stabilises at its 2% target in the medium term. As at 31 December 2025, CLAR’s UK/Europe portfolio was valued at S$1.7 billion, comprising Logistics and Data Centre properties. The Manager plans to redevelop a data centre as well as a logistics property in the UK, and will capitalise on future opportunities to enhance the portfolio quality through acquisitions, redevelopments and AEIs in the UK/Europe. Conclusion The outlook for global economic growth continues to be clouded by continued uncertainties surrounding tariffs and geopolitical tensions which could weigh on economic activity. The stability of CLAR’s performance is underpinned by its diversified and resilient portfolio that is anchored in Singapore. With a strong balance sheet and healthy liquidity, CLAR is well-positioned to leverage growth opportunities to deliver sustainable returns and generate additional value for Unitholders. Independent Market Report 2025: Read more about the economic and industrial property market trends and outlook of CLAR’s markets in the Independent Market Report 2025 available at https://investor.capitaland-ascendasreit.com/ar.html. Annual Report 2025 37
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