SUSTAINABILITY & GOVERNANCE 110 SUSTAINABILITY REPORT Economic Performance As a leading hospitality trust, sustaining economic growth remains essential to the long term viability of our business. Our key economic priorities are to optimise risk-adjusted returns for our Stapled Security Holders and to deliver distributions that are commensurate with portfolio performance. A summary of FY 2025’s financial performance, including operations, revenue, and expenditure, can be found on pages 198 - 200 of our Annual Report. Our management team works towards these economic goals through the following strategies: Asset Management Acquisition Capital Recycling Capital and Risk Management 1 2 3 4 Acquisition Growth Strategy • Pursue quality assets with growth potential • Pursue asset class diversification within the lodging space and promote income stability • Adopt a medium to long-term perspective to ride through market cycles • Partner with or tap on potential pipeline from M&C/CDL Asset Management Strategy • Work closely with master lessees, hotel/ property managers and/or operators to maximise asset operating performance and cash flow • Implement asset enhancement initiatives to optimise asset potential • Operate and invest in alignment with relevant ESG standards Capital Recycling Strategy • Evaluate divestment opportunities periodically to recycle capital for better growth prospects and returns, rebalance portfolio and/or unlock underlying asset values • Continually improve quality of portfolio Capital and Risk Management Strategy • Maintain a healthy balance sheet • Enhance financial flexibility by maintaining diversified sources of funding • Manage exposure arising from interest rates and foreign exchange through appropriate hedging strategies 1 2 3 4
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