Financial Review and Capital Management Proactive and Prudent Capital Management Key Financial Indicators Total Gross Loans and Borrowings US$311.4 million Undrawn Facilities US$141.0 million Aggregate Leverage 38.6% Weighted Average Interest Rate 5.01% p.a.3 Weighted Average Debt Maturity 3.4 years4 Percentage of fixed rate or hedged from floating-to-fixed rate loans 76.2% Sensitivity analysis on the impact of changes in EBITDA5 and weighted average interest rate on UHREIT’s Interest coverage ratio (“ICR”): ICR6 (times) For the financial year ended 31 December 2025 2.4 a) 10% decrease in the EBITDA 2.1 b) 100 basis point increase in the weighted average interest rate 2.0 Funding and Borrowings As at 31 December 2025, UHREIT’s gross borrowings amounted to US$311.4 million (31 December 2024: US$303.0 million). The Group has US$141.0 million of undrawn facilities available to meet its future obligations. All of UHREIT’s borrowings are U.S. dollar-denominated, providing a natural hedge for its U.S. investments and income. To mitigate interest rate risk exposures, 76.2% (31 December 2024: 73.6%) of the total gross loans and borrowings are fixed rate loans or floating rate loans that have been hedged using floating-for-fixed interest rate swaps. The Group will continue to benefit from the existing interest rate swaps until the maturity of these swaps. The weighted average interest rate on loans and borrowings for the financial year was 5.46% (31 December 2024: 5.63%). Excluding upfront debt-related transaction costs and revolving credit facility, the year-to-date average interest rate is 5.01% (31 December 2024: 5.17%). Aggregate leverage, as defined in the Property Funds Appendix set out within the CIS Code, declined to 38.6% as at 31 December 2025 (31 December 2024: 38.9%). The Manager continues to adopt a prudent approach towards capital management, closely monitoring the Group’s cash flow position and working capital requirements to ensure that there is adequate liquidity to meet its short- and medium-term obligations. As at 31 December 2025, the weighted average term to maturity of UHREIT’s loans and borrowing was 3.4 years (31 December 2024: 2.4 years), assuming the exercise of loan extension options. As at 31 December 2025, the Group’s cash and cash equivalents were US$20.5 million. Net cash generated from operating activities for FY2025 was US$43.4 million, mainly from cash received from NPI. Net cash used in investing activities for FY2025 amounted to US$6.8 million. This included mainly cash of US$13.4 million deployed for capital expenditure relating to investment properties during FY2025 and US$17.0 million used in acquisition of Dover Marketplace. This was offset by net cash of US$23.1 million received from the divestment of Albany Supermarket in January 2026. Net cash used in financing activities amounted to US$30.4 million. 3 Exclude upfront debt-related transaction costs and revolving credit facility. 4 Assuming the loan extension options are fully exercised. 5 EBITDA is computed as the trailing 12 months earnings before interest, tax, depreciation and amortisation (excluding effects of any fair value changes of derivatives and investment properties, and foreign exchange translation) as defined in Appendix 6 of the Code on Collective Investment Schemes (“the CIS Code”) revised on 28 November 2024. 6 ICR is computed based on the definition set out in Appendix 6 of the Code on Collective Investment Schemes revised on 28 November 2024. 31 ANNUAL REPORT 2025
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