Frasers Property (TQ5) investor relations material

Strategic rationale and objectives

• Optimisation advances the next phase of the hospitality strategy following FHT privatisation in 2025, enabling greater flexibility and value creation through active asset management.

• Capital is recycled from divested assets and reinvested into higher-return opportunities, supporting disciplined capital allocation and recurring income.

• Asset categories are defined by risk-adjusted return and growth potential: stabilised, potential, and non-core assets.

• 100% ownership of Fraser Suites Singapore enables redevelopment of the Valley Point site for long-term value.

• Transaction structure aligns property and operating company ownership, removing legacy obligations and providing flexibility for asset maximisation.

Transaction structure and asset reallocation

• Stabilised assets are sold, reducing the effective stake from 63.28% to 0%, unlocking S$1.1b in capital.

• Assets with potential are retained in partnership with TCCA, with FPL's stake reduced to 49.95%.

• Non-core assets are held for opportunistic divestment within 24 months, with FPL maintaining a 62.38% stake.

• Fraser Suites Singapore is acquired to facilitate redevelopment, increasing FPL's stake to 100%.

• Transaction steps result in a more focused, capital-efficient hospitality platform and continued asset management fee income.

Financial impact and shareholder value

• Portfolio is transacted at a 6.7% premium to the latest independent valuation and 1.6% above the implied take-private valuation.

• On-balance sheet hospitality assets decrease from S$3.7b to S$2.5b, while AUM remains at S$4.2b.

• Pro forma improvements: EPS up 3.4%, NAV per share up 1.3%, ROE up 0.1 percentage points, and net gearing down by 3.3 percentage points.

• Transaction delivers reduced net gearing and positive effects on key financial metrics.

• Divestments are executed at above-valuation pricing, reflecting favourable terms for shareholders.