Climate Disclosures

The buildings sector contributes to roughly one‑third of global greenhouse gas ("GHG") emissions and faces increasing exposure to both physical risks – including more frequent extreme weather events, heat stress, and flooding – and transition risks arising from accelerating decarbonisation policies, stricter energy‑performance standards, and evolving market expectations. For AA REIT, understanding these risks is critical to safeguarding long-term asset value and ensuring operational continuity. By conducting a climate‑risk assessment and integrating insights into our overall risk management processes, we continue to build a portfolio that is prepared for a rapidly changing climate landscape.

This year, we further strengthened our alignment with the enhanced climate-reporting requirements by the Singapore Exchange (“SGX”) which incorporate IFRS Sustainability Disclosure Standards issued by the ISSB. As part of these efforts, we expanded our disclosures on the identification, assessment and management of our climate-related risks and opportunities (“CRROs”). The table below details these disclosures in line with the four pillars of the ISSB framework which has been adopted by the Task Force on Climate-related Financial Disclosures ("TCFD").

Pillar	AA REIT’s Response
Governance	The Board provides oversight and strategic direction of the management of our material ESG matters, including climate-related considerations. It is supported by the Audit, Risk and Compliance Committee (“ARCC”) which oversees the governance, risk management and implementation of our sustainability strategy. In FY2026, we updated the ARCC’s Terms of Reference, defining its key roles and responsibilities which include: Review and approve AA REIT’s sustainability strategy, policies, targets and roadmap to ensure material ESG topics are relevant to the REIT’s business and stakeholder expectations; Review AA REIT’s risk appetite, tolerance threshold and senior management responsibilities with respect to environmental and climate-related risks and opportunities, including trade-offs, over the short-, medium- and long-term, and ensure such risks and opportunities are considered in the REIT’s risk profile, strategic plans and impact and mitigation actions; Oversee the implementation of approved ESG strategies, including the designation of personnel or sub-committee responsible for managing ESG risks across AA REIT’s portfolio; Review the integration of ESG risks, including climate-related risks, into AA REIT’s Enterprise Risk Management ("ERM") framework and related policies; Assess the adequacy of resources allocated to support the execution of AA REIT’s ESG strategies, targets, policies and ensure operational capacity for ongoing compliance; Ensuring that Board members and senior management possess or are provided with sufficient understanding and training to effectively oversee and manage environmental and climate-related risks; Evaluate the effectiveness of stakeholder engagement efforts, including tenants, employees, suppliers, contractors, unitholders, investors, regulators and local communities, and review responses to sustainability-related feedback and queries; and Where applicable, ARCC to raise climate-related issues to the Board for further deliberations. The management, represented by the SC, is responsible for the management of the REIT’s sustainability strategies, objectives, initiatives and targets. This includes: Developing an environmental risk management framework and incorporating it across investment decisions and portfolio construction; Ensuring ESG commitments align with the environmental risk profile set by the Board through short-, medium- and long-term targets; Establishing an internal escalation process for managing environmental risk; and Providing regular updates to the Board on material environmental risk issues, including progress against metrics and targets and mitigation measures where required. ESG-related metrics are being considered within senior management remuneration framework and annual performance evaluations, reinforcing our commitment to sustainability and accountability. Please refer to the “Sustainability Governance” section on page 100 of our Annual Report for more information.
Strategy	Management has integrated environmental and climate-related risks into the existing enterprise risk management framework, ensuring it is systematically identified, assessed and managed. Additionally, it embeds environmental risks in investment decisions and across the portfolio and manages material risks. AA REIT has identified various climate-related risks and opportunities which are detailed in pages 109 to 114 of our Annual Report. Management has expanded disclosures on AA REIT’s responses to the climate-related risks and opportunities identified through the qualitative assessment of the climate-related transition and physical risks across all properties. The assessment considered short-, medium- and long-term horizons in line with SGX recommendations to align with ISSB S2 requirements. Please refer to page 132 for details on the parameters applied within the climate scenario analysis. We will be conducting an updated quantitative climate scenario analysis in the near future to deepen our understanding of the most updated physical and transition risks that may impact our portfolio.
Risk Management	The SC meets every quarter to discuss climate-related risks and opportunities, oversee sustainability initiatives and review its performance. The Board periodically reviews the existing ERM policy to ensure that environmental and climate-related risks are appropriately integrated and addressed. We provide training and development programmes aimed at strengthening the environmental and climate-related risk competencies of our employees and Board members. Overall, AA REIT adopts a structured approach to identifying, assessing and managing climate-related risks within our overall risk management framework. These risks are evaluated based on their nature, likelihood and potential impact, and prioritised alongside other enterprise risks. Looking ahead, we remain committed to continuously enhancing our processes for identifying, assessing, prioritising and monitoring climate-related risks in line with evolving regulatory expectations and industry best practices. Please refer to pages 109 to 112 of our Annual Report for more information on AA REIT’s climate-related risk identification and assessment process.
Metrics and Targets	The 'Energy and Emissions' section of this report outlines our energy consumption and reduction targets, as well as our Scope 1, Scope 2 and Scope 3 emissions. Please refer to page 115 of our Annual Report for more information. AA REIT currently has a long-term SBTi-aligned target of 42% reduction in Scope 2 emissions by FY2030 and is exploring additional metrics and targets to measure relevant environmental risks and opportunities. Please refer to page 115 for more information on AA REIT’s long-term targets. AA REIT’s climate-related targets are set based on absolute gross GHG emissions (Scope 2), where we monitor progress against our FY2030 target of a 42% reduction from our FY2020 baseline. Where renewable energy instruments, such as Renewable Energy Certificates (“RECs”), are utilised, these are applied in accordance with recognised market-based accounting approaches for Scope 2 emissions. As at the reporting period, AA REIT does not utilise carbon credits as part of its decarbonisation strategy. Should our strategy evolve to include carbon credits in the future, we will disclose the specific verification standards, credit types, and the proportion of the target met through such instruments. AA REIT continues to align with industry best practices in strengthening our data collection and analytical capabilities to support more robust portfolio-level assessments over time. Climate-related capital expenditure and investment initiatives are integrated within the REIT’s overall capital management and asset enhancement plans. Annual capital expenditure budgets are established at the asset level and may include ESG-related investments, such as energy efficiency improvements and sustainability enhancements. AA REIT will progressively enhance our approach to assessing, tracking and disclosing such investments.

Identification of CRROs

To identify where specific risks may emerge or intensify, compare outcomes under varying pathways, and prioritise management actions accordingly, AA REIT undertook a qualitative risk assessment and scenario analysis in FY2023 to evaluate potential climate‑related impacts across our portfolio. This assessment applied the following parameters:

Parameter	Scope
Climate Scenario	Transition Risks Network for Greening the Financial System (“NGFS”) Net Zero 2050 scenario NGFS Current Policies scenario (business-as usual (“BAU”) scenario) Physical Risks NGFS Net Zero 2050 scenario NGFS Hot House World scenario (BAU scenario)
Time Horizons	Short‑term: within the next one year, up till 2027 Medium‑term: within the next two to five years, up till 2030 Long‑term: within the next five to 25 years, up till 2050
Scope of Coverage	The analysis covered the entire AA REIT portfolio of assets in Australia and Singapore.

Parameter

Scope

Climate Scenario

Transition Risks

Network for Greening the Financial System (“NGFS”) Net Zero 2050 scenario
NGFS Current Policies scenario (business-as usual (“BAU”) scenario)

Physical Risks

NGFS Net Zero 2050 scenario
NGFS Hot House World scenario (BAU scenario)

Time Horizons

Short‑term: within the next one year, up till 2027
Medium‑term: within the next two to five years, up till 2030
Long‑term: within the next five to 25 years, up till 2050

Scope of Coverage

The analysis covered the entire AA REIT portfolio of assets in Australia and Singapore.

Management of Climate-Related Risks

The climate-risk assessment highlighted distinct transition and physical risks affecting AA REIT’s portfolio. To strengthen our climate resilience, we have mapped targeted response measures to each risk identified.

Risk Type	Extent of Impact	Description	Examples of Possible Impacts	Response
Transition Risks
Regulatory and Policy	Medium to High	The risk of loss resulting from failure to comply with laws, regulations, contracts or court decisions relating to the impacts of climate change.	Mandatory climate-related disclosures (and stricter sustainability reporting requirements), which can result in additional costs as companies monitor their carbon emissions. Mandatory national carbon tax scheme, which can result in higher operating costs due to the increased price of fuel, energy and waste disposal.	AA REIT captures relevant data and works with stakeholders to improve the quality and timeliness of that data. AA REIT keeps abreast of regulatory updates to ensure timely compliance with reporting requirements. AA REIT invests in energy efficient and renewable solutions across its properties. AA REIT seeks to increase the number of properties that are certified under the Building Construction Authority ("BCA") Green Mark Scheme, where commercially feasible. AA REIT utilises RECs as part of our decarbonisation strategy to manage Scope 2 emissions in line with our SBTi commitments.
Reputational	Low to Medium	The risk of damage to an organisation's image and brand due to its actions or perceived inaction on climate-related issues.	A perceived lack of climate action could dampen investor confidence and decrease the availability of funding.	AA REIT manages potential reputational risks through regular and robust stakeholder engagement. Please see pages 100 to 101 of our Annual Report for more information on AA REIT's stakeholder engagement efforts. AA REIT is managing the signing of leases to be green leases, which require tenants to adhere to sustainable fit-out requirements. In FY2026, more than 60% of new and renewal leases signed were green leases. AA REIT monitors and reviews our sustainability performance and disclosures on an ongoing basis. Where appropriate, we implement initiatives to support the achievement of our climate-related targets, including those aligned with SBTi.
Market	Low to Medium	The risk of financial loss resulting from market changes.	Properties in locations vulnerable to climate change may lead to reduced occupier/tenant demand, customer base and/or asset value. Inability to meet or keep up with market expectations for sustainable products may result in losing competitive edge.	AA REIT integrates market-related risks into our investment approach. AA REIT monitors evolving market expectations for sustainable and high-performance assets and integrates sustainability considerations into asset enhancement and operational strategies to maintain competitiveness. AA REIT invests in green solutions such as EV fast-charging stations in Singapore to cater to tenants' and visitors' demands.
Technology	Low to Medium	The risk of obsolescence or increased operational cost resulting from the failure to adopt new technologies or business practices that address the impacts of climate change.	Delaying the implementation of new technologies that have the potential to address energy, emissions, water and waste demands may lead to loss in market share and stranded assets. Neglecting the adoption of green solutions may lead to increased energy and operational expenditures in the long run.	AA REIT collaborates with ecosystem partners to adopt sustainable technologies such as smart meters to monitor electricity consumption, solar panel installations and water efficient fittings. AA REIT progressively implements energy efficiency initiatives including initiatives such as regenerative lift systems and innovative cooling solutions such as solar reflective coatings, to enhance asset performance, reduce energy demand and manage long-term operating costs.
Physical Risk
Acute	Medium	The risk of extreme weather events, such as flooding and fire, that cause property damage and business disruption.	Higher costs may be incurred to weatherproof the assets and business.	AA REIT reviews insurance plans in line with our climate risk assessment to ensure adequate coverage for critical assets. AA REIT considers physical risks in the Due Diligence ("DD") process for future acquisitions.
Chronic	Medium	The risk of long-term, persistent impacts of climate change on an organisation's assets, operation and supply chains.	Higher costs associated with refurbishing assets, preventative measures and property insurance premiums.

Management of Climate-Related Opportunities

Through the assessment, AA REIT has also identified a range of climate-related opportunities and developed targeted response measures to effectively leverage them.

Opportunities Type	Description	Examples of Possible Impacts	Response
RESOURCE EFFICIENCY	Improving energy and resource use efficiency for properties within the portfolio	Reductions in operating costs Reduced emissions Enhanced reputation	Completed Phase 1 of rooftop solar photovoltaic installations across six properties in Singapore and has progressed to Phase 2 with installations completed across three additional properties. The REIT will further expand its solar deployment under Phase 2B, covering two more properties. These initiatives form part of its broader solar roadmap, with ongoing consideration for further expansion under Phase 3. Enhanced energy efficiency through the implementation of smart LED lighting systems across selected properties. Energy efficiency initiatives including progressive implementation of regenerative lift systems across selected assets. Strengthened water management practices, including the adoption of water-efficient fittings and attainment of Water Efficiency Building (Basic) certification at selected properties. New smart metering system at 16 properties in Singapore provides real time energy usage insights. Enhanced sustainable mobility infrastructure through the installation of EV fast-charging stations across selected properties. Deployed innovative cooling solutions, including solar reflective coatings across selected assets.
ENERGY SOURCE	Transitioning to renewable and low-carbon energy sources	Lower energy costs Reduced carbon footprint
PRODUCTS AND SERVICES	Development of products and services that capitalise on shifting consumer preferences	Increased market share Competitive advantage	AA REIT works towards increasing the number of properties that are certified under the Green Mark Scheme to better align with the BCA's national climate targets.
MARKETS	Exploring new markets for sustainable financing	Increased funding flexibility for asset enhancement initiatives and growth Linkage of financing costs to sustainability objectives	Secured its first unsecured SLL of up to S$400 million and A$150 million, with margin reductions tied to the achievement of sustainability targets. The facility supports funding flexibility for AEIs and growth, while directly linking our financing costs to ESG performance. In FY2026, we achieved the sustainability performance targets under the SLL, demonstrating our continued alignment between our financing strategy and our sustainability objectives. Post year end, AA REIT also successfully sealed its second unsecured SLL facilities comprising S$450 million and A$160 million term loan and revolving credit facilities, alongside a separate A$115 million unsecured syndicated facility which includes a green loan tranche tagged to Optus Centre, which holds a 5.5 star NABERS rating. These facilities reinforce our commitment to integrating sustainability into our capital management strategy through financing structures linked to carbon emissions reduction, solar energy deployment and the adoption of green leases.