On behalf of the Board of Directors of the H-REIT Manager and the HBT Trustee-Manager (collectively, the "Managers"), I am pleased to present our Annual Report for the financial year ended 31 December 2025 ("FY 2025").

STRENGTHENING OPERATIONAL MOMENTUM AND COMPLETION OF MAJOR ASSET ENHANCEMENTS

CDLHT closed FY 2025 with improving trends as the operational impact of major refurbishment works began to recede, with 2H 2025 net property income ("NPI") growing 3.5% over 2H 2024, notwithstanding a full-year NPI decline of 4.1% yoy.

The full-year NPI decline was primarily attributable to a more competitive hospitality environment in our key markets which led to broader RevPAR moderation, as well as the temporary disruption from large-scale renovations at W Hotel and Grand Millennium Auckland. Higher operating costs also weighed on performance. Excluding these two assets, NPI would have grown 0.3% for FY 2025 and 6.3% for 2H 2025, a creditable performance by the wider portfolio. With the multi-year renovations now complete, both assets are well-positioned to enhance their competitive standing and support portfolio growth over time.

Reflecting the lower full-year NPI, total distributions for FY 2025 amounted to S$60.9 million, representing an 8.9% decrease yoy, with DPS declining 9.8% to 4.80 cents.

During FY 2025, CDLHT took proactive steps to strengthen its financial position, reducing overall funding costs and bringing gearing to a more prudent level. This provides a degree of resilience as CDLHT enters 2026 amid a more uncertain external backdrop, with geopolitical tensions, volatile oil prices and inflationary pressures presenting headwinds for the global hospitality sector.

On the balance sheet, total portfolio value grew 0.8% yoy to S$3.4 billion as at 31 December 2025, supported by valuation gains across the Singapore, Europe, and Oceania portfolios.

MARKET REVIEW AND OUTLOOK

Performance of the Singapore Hotels in FY 2025 was shaped by a more challenging demand backdrop for much of the year, with conditions only recovering in the second half. Performance in 1H 2025 was measured against an elevated base in 1H 2024, when Singapore hosted a series of high-profile events, including six sold-out Taylor Swift concerts and Coldplay shows, that materially lifted visitor arrivals and hotel demand. This was compounded by softer corporate demand amid heightened global economic uncertainty in 1H 2025.

Operating conditions improved in 2H 2025, supported by a firmer events calendar that helped partially offset the earlier weakness, although elevated room supply continued to exert pressure on room rates. Key demand drivers included the World Aquatics Championships, the Formula 1 Singapore Grand Prix, and concerts including Blackpink. During the year, trading was also partially constrained by reduced room inventory due to renovations at W Hotel, though works were strategically paused during peak periods to minimise displacement. Overall, the Singapore Hotels reported a 1.6% yoy increase in RevPAR for 2H 2025, while RevPAR for FY 2025 declined 6.2% yoy.

Singapore received 16.9 million international visitor arrivals in 2025, a 2.3% yoy increase⁽¹⁾, though arrivals remain below 2019 peak levels amid headwinds from the strength of the Singapore dollar, geopolitical uncertainty, and a more measured rebound from key source markets. Notwithstanding this, tourism receipts have shown encouraging growth, reaching a record S$23.9 billion for the first nine months of 2025, up 6.5% yoy, placing full-year receipts on track to meet or exceed the Singapore Tourism Board's projection of S$29.0 to S$30.5 billion for 2025⁽²⁾.

Singapore's tourism proposition continues to develop, underpinned by a robust MICE pipeline and the Tourism 2040 roadmap focused on higher-value visitation. Meaningful leisure and infrastructure capacity was added in 2025, including the opening of Rainforest Wild, the launch of the Singapore Oceanarium, and the completion of the Marina Bay Cruise Centre facelift which expanded passenger capacity from 6,800 to 11,700⁽³⁾.

Looking ahead, Disney Adventure, Disney's first Asia-based cruise ship, homeported in Singapore from March 2026⁽⁴⁾. With capacity for more than 6,000 passengers, it is expected to drive cruise-led arrivals and broader tourism spending. Singapore is also set to host a four-night BTS performance in December 2026, the group's longest run in Asia outside Korea and Japan⁽⁵⁾, further demonstrating the city's ability to attract high-profile events with positive spillover effects for hotel demand. Over the longer term, the ongoing expansion of the Integrated Resorts and the development of Changi Airport Terminal 5 should further reinforce Singapore's position as a premier regional hub for leisure, business and MICE travel.

Against this backdrop, CDLHT is well-placed to bolster its Singapore presence. The forward purchase of Moxy Singapore Clarke Quay, a 475-key lifestyle hotel expected to achieve TOP by end-2026 and commence operations in 1H 2027, will broaden the portfolio's appeal across customer segments and strengthen CDLHT's foothold in one of Asia's most coveted hospitality markets. Upon completion, CDLHT's Singapore room count will grow from 2,555 to 3,030 keys.

In New Zealand, Grand Millennium Auckland recorded a 3.0% yoy decline in RevPAR for FY 2025, as new room supply continued to outpace demand, with performance further affected by room enhancement works from April to December 2025. While trading conditions remain competitive, key demand catalysts are emerging. Visitor arrivals in 2025 rebounded to around 90% of 2019 levels⁽⁶⁾, with further upside anticipated from the Government's NZ$70 million major events and tourism package⁽⁷⁾. The opening of the New Zealand International Convention Centre (NZICC) in February 2026, located near the hotel, together with the City Rail Link commencing this year with a station nearby the hotel, are expected to boost MICE demand and enhance accessibility. In addition, the one-year NZeTA trial (effective 3 November 2025), allowing visa-free entry for Chinese visitors travelling from Australia, is anticipated to further support inbound tourism⁽⁸⁾. With the multi-year refurbishment now complete, Grand Millennium Auckland is poised to capitalise on these emerging demand tailwinds.

In Australia, the Perth Hotels delivered RevPAR growth of 24.9% yoy in FY 2025, driven by a strong events calendar and a robust performance at Ibis Perth with the availability of newly refurbished rooms in early 2025. Looking ahead, Western Australia's continued investment in tourism infrastructure - including Perth Airport's A$5 billion Master Plan redevelopment, featuring a new runway and expanded terminals - is expected to strengthen medium-term connectivity and capacity⁽⁹⁾. With its comprehensive refurbishment completed in February 2025, Ibis Perth is well-poised to capture demand going forward.

Supported by resilient inbound demand, the Japan Hotels delivered an 8.7% yoy increase in RevPAR in FY 2025, achieving record full-year ADR and RevPAR of ¥12,459 and ¥11,613 respectively. Inbound visitor arrivals reached an all-time high of 42.7 million in 2025, with visitor spending also hitting a record ¥9.5 trillion (approximately S$77 billion)⁽¹⁰⁾. Looking ahead, JTB forecasts a 2.8% moderation in inbound arrivals for 2026⁽¹¹⁾, reflecting a normalisation of post-pandemic demand, as well as a decline in Chinese visitor arrivals amid ongoing diplomatic tensions. Against this backdrop, performance of the Japan Hotels is expected to be more measured relative to the exceptional levels achieved in the past few years.

In the Maldives, the two resorts recorded a collective 10.0% yoy decline in RevPAR in FY 2025, amid rising resort supply and higher tourism taxes. Following its rebranding as The Halcyon Private Isles Maldives, Autograph Collection on 1 November 2025, the resort is expected to benefit from Marriott's global distribution platform and loyalty network, expanding its reach across new demand channels. While 2026 will represent a transitional period as brand awareness develops among trade partners and guests, the rebranding positions the resort for stronger performance over the medium term.

In the UK, Hilton Cambridge City Centre, The Lowry Hotel and Hotel Indigo Exeter recorded a collective 1.2% yoy decline in RevPAR for FY 2025⁽¹²⁾, reflecting softer leisure demand and muted corporate activity. Performance was supported by the inflation-linked rent escalation at voco Manchester - City Centre, which increased 3.4% to £2.74 million, as well as the first full-year contribution from Hotel Indigo Exeter. While trading conditions remain pressured by a challenging macroeconomic backdrop and elevated costs, a robust pipeline of events and concerts is expected to underpin visitation.

In the living assets sector, The Castings (UK BTR) and Benson Yard (UK PBSA) delivered their first full-year contributions in FY 2025. The Castings progressed through its ramp-up phase during the year, achieving physical occupancy of 90.3% as at 31 December 2025, and is expected to deliver a more stabilised level of NPI from 2026 onwards. Benson Yard performed well, with an average occupancy of 90.4%⁽¹³⁾ for FY 2025 and committed occupancy of 94.1%⁽¹⁴⁾ for Academic Year 2025/2026. The property's strong operational standing has garnered various awards, cementing its reputation in the Liverpool student accommodation market.

Pullman Hotel Munich recorded a 3.2% yoy decline in RevPAR, due to a softer events calendar in the second half of 2025 and subdued corporate demand. Looking ahead, operating conditions remain mixed. The absence of major biennial and triennial trade fairs in 2026 and the closure of the Munich Olympic Stadium for renovation until spring 2027 may constrain event-driven demand in the near term. Summer concerts at the nearby Allianz Arena are expected to generate incremental visitation and partially offset these headwinds.

In Florence, Hotel Cerretani Firenze recorded an 11.8% yoy decline in RevPAR for FY 2025, reflecting a normalisation of performance following an exceptionally strong 2024 and the impact of increased room supply. While the market has become more competitive as post-pandemic demand moderates, underlying visitation interest remains intact.

The broader operating environment has become more uncertain as geopolitical headwinds intensify. The reinstatement of broad-based tariffs by the US administration, alongside the escalation of conflict in the Middle East involving the US, Israel and Iran, has heightened concerns over slower global growth. Prolonged instability could elevate fuel and travel costs, disrupt aviation connectivity, and weigh on business sentiment, corporate travel budgets and discretionary spending. While the year began on an optimistic note with expectations of yoy improvement, these developments have introduced uncertainty to our near-term outlook. The full impact on the portfolio will depend on how these geopolitical developments unfold.

UNLOCKING VALUE THROUGH STRATEGIC ASSET ENHANCEMENTS

Asset enhancement remains a key lever for driving long-term value across CDLHT's portfolio. The Managers take a disciplined approach to identifying and executing asset optimisation opportunities, working closely with operators to enhance the competitiveness and earnings potential of our properties.

FY 2025 marked the completion of several significant multi-year renovation programmes. Following the completion of Ibis Perth's extensive renovation in early 2025, Grand Millennium Auckland and W Singapore - Sentosa Cove both concluded their phased refurbishments during the year, setting CDLHT up for improved operating performance ahead.

At Grand Millennium Auckland, the completion of public area upgrades, atrium bar refurbishment and two phases of room renovations, marked the conclusion of a comprehensive multi-year transformation. Combined with earlier enhancements to the ballroom, all-day dining restaurant and lobby lounge, the hotel has been substantially revitalised to enhance its market appeal in a very competitive Auckland hospitality landscape.

At W Singapore - Sentosa Cove, the phased renovation of all guestrooms has now been completed, rounding out a broader programme of upgrades that included the lobby, ballroom and restaurant earlier. The fully refreshed property is well-placed to augment its positioning within the luxury lifestyle segment, particularly as competitive pressures in the market intensify.

We will continue to invest in our own portfolio and capitalize on asset enhancement initiatives to ensure that our properties have a competitive edge in the market place.

PROACTIVE AND DISCIPLINED CAPITAL MANAGEMENT

Maintaining a robust financial position remains a key priority for CDLHT, providing both stability and flexibility to navigate evolving market conditions and pursue growth opportunities. As at 31 December 2025, our gearing ratio stood at 37.7%⁽¹⁵⁾, with a debt headroom of S$819.1 million⁽¹⁶⁾.

In November 2025, CDLHT established a S$1.5 billion Multicurrency Debt Issuance Programme, providing a scalable and flexible framework for future capital raising. Under this programme, H-REIT raised S$250.0 million through two tranches of perpetual securities - S$150.0 million at 3.7%⁽¹⁷⁾ in November 2025 and S$100.0 million at 4.0%⁽¹⁸⁾ in February 2026 - with proceeds applied to repay existing borrowings. On a pro forma basis, had the second tranche been issued within FY 2025, gearing would have been approximately 34.7% as at 31 December 2025. This capital raising activity strengthens our balance sheet ahead of the expected completion of the forward purchase of Moxy Singapore Clarke Quay in early 2027.

On interest rate management, CDLHT entered into S$358.0 million of interest rate swaps during FY 2025 to hedge against rate volatility on its SGD borrowings. CDLHT will benefit from interest savings in 2026 from the retirement of higher-cost GBP and USD borrowings funded by the perpetual securities issuances.

Our financial resilience is further supported by a strong and flexible balance sheet. Unencumbered assets represented 95.7% of total property value at year-end, providing continued access to favourable financing terms and preserving financial flexibility.

In line with our commitment to sustainable financing, S$427.0 million, or 82% of facilities maturing in FY 2025, were refinanced as sustainability-linked facilities, bringing total sustainability-linked facilities to approximately S$1.1 billion at year-end. This reflects a deliberate effort to align our financing strategy with CDLHT's broader sustainability commitments.

PROGRESSING TOWARDS A SUSTAINABLE FUTURE

CDLHT continued to make meaningful progress on its sustainability agenda in FY 2025, with tangible advances across energy efficiency, building performance and responsible operations.

Several properties achieved notable sustainability milestones during the year. Ibis Perth received the Eco Tourism Australia Sustainable Tourism Certification, while Grand Millennium Auckland was awarded the Qualmark Gold Sustainability Award, reflecting strong operational commitments to responsible tourism. In Europe, Hotel Cerretani Firenze improved its BREEAM rating to "Very Good", representing a tangible step forward in building performance and environmental management.

On the energy front, the newly installed solar panel system at W Singapore - Sentosa Cove is now fully operational and is expected to generate approximately 500 MWh of renewable energy annually and supply around 5.6% of the hotel's total energy needs. This brings CDLHT's total portfolio renewable energy generation to approximately 1.5 GWh in FY 2025, contributing to our broader goal of reducing the portfolio's carbon footprint over time.

On the governance front, CDLHT was named joint winner of the Shareholder Communications Excellence Award (REITs & Business Trusts Category) at the SIAS Investors' Choice Awards 2025 for the second consecutive year and placed tenth in the Singapore Governance and Transparency Index 2025 (REIT and Business Trust Category). These recognitions affirm our commitment to transparency, accountability and meaningful investor engagement.

A fuller account of our sustainability progress, including targets and initiatives underway, is set out in the Board Statement within the Sustainability Report.

CONCLUDING REMARKS

As CDLHT progresses through 2026, we benefit from several supportive tailwinds. These include the completion of renovations at a couple of our major assets, alongside a more stabilised income stream from The Castings as it moves beyond its initial ramp-up phase. CDLHT also anticipates meaningful interest cost savings following the repayment of higher-cost borrowings through the perpetual securities issuances, supported by a generally lower interest rate environment.

That said, we remain mindful of the uncertain geopolitical backdrop and its potential impact on travel demand and business sentiment. The Board and management will continue to monitor developments closely, and we are prepared to respond as the situation evolves.

Looking ahead, we remain committed to disciplined capital management, targeted asset enhancement, and delivering sustainable long-term value for our Stapled Security Holders. With gearing at a prudent level and the balance sheet on firm footing, CDLHT is on track for the expected completion of the forward purchase of Moxy Singapore Clarke Quay in early 2027, which will mark a further addition to the portfolio. The Managers also continue to review the portfolio for opportunities to recycle capital and unlock value for Stapled Security Holders.

APPRECIATION

On behalf of the Boards and management team, I would like to express my sincere gratitude to our Stapled Security Holders for their continued trust and support. I am equally grateful to our lessees, operators, business partners and service providers worldwide, whose expertise and collaboration have been integral to CDLHT's continued success.

I am pleased to welcome Ms Eng Chin Chin and Mr Richard Anthony Johnson, who joined our Boards on 21 February 2025 and 23 January 2026, respectively. Their extensive experience and business acumen will be valuable assets to the Boards, and I look forward to their contributions in the years ahead.

Dr Foo Say Mui (Bill) and Mr Kenny Kim retired after nine years of dedicated service on the Boards. Both have made significant contributions to CDLHT through their experience, sound judgement and unwavering commitment. On behalf of the Boards, I extend our deep appreciation for their invaluable guidance over the years.

I would also like to thank my fellow Board members for their counsel and leadership, and the management team and staff of the Managers and H-REIT Trustee for their commitment and contributions in advancing CDLHT's strategic priorities.

We look forward to welcoming our Stapled Security Holders at the Annual General Meetings on 24 April 2026.

Chan Soon Hee, Eric
Chairman
Dated as of 23 March 2026