Chairman's Message
Dear Shareholders,
On behalf of the Board of Metro Holdings Limited (“Metro” or the “Group”), it is my pleasure to present our Annual Report for the financial year ended 31 March 2026 (“FY2026”).
During the year, Metro’s property division continued to be negatively impacted by China’s prolonged property sector headwinds, while the challenging retail landscape in Singapore continued to weigh on the performance of our retail division. Despite these ongoing challenges, Metro remains committed to navigating the current environment while positioning our business for the future. We are pleased to propose an ordinary final dividend of 2.0 Singapore cents per share, as a clear expression of our appreciation to our loyal shareholders for your continued and unwavering support.
In FY2026, Metro embarked on several initiatives to strengthen resilience, unlock value and optimise our portfolio. These included the divestment of our 26% stake in Boustead Industrial Fund (“BIF”), a portfolio of 15 industrial, business park, high-spec industrial and logistics properties across Singapore to UI Boustead REIT, and the divestment of Dalyellup Shopping Centre, a retail property in Western Australia which is part of our 30%-owned joint venture Australian portfolio with Sim Lian. As at the end of FY2026, our balance sheet remains healthy, with net assets of S$0.9 billion and total assets of S$1.8 billion. Net gearing1 stood at 0.16x, with S$435.9 million of cash and cash equivalents and short-term investments.
FINANCIAL REVIEW
The Group reported a loss after tax of S$203.1 million for FY2026, as compared to a loss after tax of S$224.7 million for
FY2025. This was mainly attributable to non-cash fair value and impairment losses arising from our China real estate
exposure. The Group’s property division continued to be negatively impacted by China’s prolonged property sector
headwinds, which resulted in: (1) fair value loss (net of tax) of S$88.2 million mainly from the China properties held
under associates and joint ventures; (2) share of loss of S$65.0 million from its 20.5%-owned associate Top Spring,
primarily arising from fair value losses (net of tax) on investment properties and operating loss (including impairment losses on its properties held for sale and its receivables); and (3) impairment loss of S$30.2 million on the amounts
due from associates mainly from its co-investments with BGO. The Group also recognised fair value losses of S$10.7
million mainly from its investment in MGSA. These were partially mitigated by contributions from Singapore, the UK
and Australia properties held under associates and joint ventures of S$16.2 million.
Metro’s retail division reported a loss after tax of S$11.4 million in FY2026 compared to a loss after tax of S$6.9 million in FY2025. This was mainly due to lower revenue, lower gross margins and higher impairment loss amidst the challenges confronting Singapore’s retail sector.
In FY2026, the Group’s revenue decreased from S$104.5 million in FY2025 to S$97.7 million in FY2026, due to lower sale of property rights of the residential development properties in Bekasi and Bintaro, Jakarta, and lower sales from Metro Paragon and Metro Causeway Point by S$4.2 million.
PROPERTY INVESTMENT AND DEVELOPMENT
Navigating Challenges, Positioning for the Future
In FY2026, Metro maintained a diversified portfolio of high-quality assets in resilient sectors and markets. Our key
investment properties of Metro City, Metro Tower and GIE Tower in China as well as our properties in Singapore, the
UK and Australia have remained resilient amidst challenging conditions.
Singapore
Singapore’s office market remained underpinned by limited new supply and low vacancy levels in the first quarter
of 2026, with rents rising across most segments alongside sustained occupier demand for quality office space.
Emerging occupier preferences for cost efficiency and operational flexibility have, in some cases, led tenants to
consider alternative locations outside the CBD, particularly where quality space remains available2. Asia Green, our premium Grade-A office towers at the Tampines Regional Centre, continued to achieve a high occupancy rate of approximately 98.7%, as at 31 March 2026.
At the prime Orchard Road area, a trend of flight-to-quality continues as occupiers prioritise high-specification workplaces to support talent attraction, retention and evolving workplace strategies3. As at 31 March 2026, a total of five retail units and nine office floors at VisionCrest Orchard, our 20% stake in the freehold Grade-A commercial property, amounting to approximately 93% of the total strata title area have been sold.
In March 2026, the Group’s 26% interest in BIF was divested to UI Boustead REIT at an agreed property value of approximately S$765.7 million. The total net sale proceeds of S$116.0 million will enable Metro to recycle capital into strategic opportunities.
China
The ongoing property market downturn has weighed on leasing demand for our properties in China. Metro City and
Metro Tower in Shanghai, and GIE Tower in Guangzhou, reported an average occupancy of 70.5%4 (74.3%)5.The
Atrium Mall in Chengdu and Shanghai Plaza in Shanghai achieved occupancy of 90.1%4 (88.0%5) and 88.0%4 (84.9%5) respectively. The three office buildings in Bay Valley are 70.3%4 (68.65) occupied. Leasing is expected to remain
challenging amidst swelling supply and ongoing economic challenges. Shanghai’s office market remained under
pressure in 2025 and elevated vacancy levels are expected to persist into 2026, keeping the Shanghai office market
firmly tenant‑favourable in the near term. The Group’s associate, Top Spring, our co-investments with BGO and our
other investment properties held under associates and joint ventures will continue to be subject to the persistent
market headwinds in China and Hong Kong.
Indonesia
In Jakarta, all five Bekasi towers and both Bintaro towers have topped off. Fully-paid units are gradually being handed
over and sales continue to be underway. Still-high borrowing rates, weak economic sentiments and the dwindling
middle class will continue to pose headwinds for sales efforts in these projects.
United Kingdom
In November 2024, Metro increased our equity stake in Fairbriar from 25% to 50%. Fairbriar owns and develops the Middlewood Locks mixed-use development which is an award-winning regeneration project that has created a thriving and vibrant new neighbourhood at the Western gateway to Manchester City Centre. Handover of units under ‘Railings’, i.e. Phase 3 of the development, has commenced after practical completion in November 2024, with approximately half of the 189 residential units sold or reserved as at 3 April 2025. With a gross development value of approximately £1 billion, Middlewood Locks will provide 2,215 new homes, and an additional 1,000 new homes or one million square feet of commercial space (including offices, hotel, shops and restaurants).
In the UK, Metro owns a 30% stake in Paideia Capital UK Trust, which owns a portfolio comprising six freehold quality
PBSA properties across Warwick, Bristol, Durham, Exeter, Glasgow and Kingston. The portfolio was valued at £136.0
million4 (£149.0 million5), reflecting a softer valuation environment amidst more cautious capital market conditions
and downward pressure on capital values6/sup>, with occupancy at 97.8%4 (99.3%5).
In Manchester, handover of the sold units under Phase 3 of Middlewood Locks, ‘Railings’, is in progress following
completion in December 2024. Approximately more than half of the total 189 units have been either sold or reserved. In London, asset enhancement and refurbishment works are progressing well at Metro’s 50%-owned freehold office
property at 5 Chancery Lane. The development marked its topping out in March 2026, a key construction milestone
for the completion of the building’s extension. Completion remains on schedule and is expected by the end of 2026.
Upon completion, the asset enhancement works are expected to increase net lettable office space by approximately
25%, from about 80,000 square feet (“sqft”) to 100,000 sqft. In Sheffield, the Group’s Endeavour, Sheffield Digital Campus, a Grade A freehold office building certified with EPC A
and BREEAM Excellent, was handed over to British Telecom in July 2023 to commence a 15-year lease. Australia Following the divestment, Metro’s Australia portfolio with Sim Lian comprises 17 freehold properties, including five
office buildings and 12 retail centres across New South Wales, Victoria, Queensland and Western Australia. As at 31
March 2026, the total appraised value of the portfolio was A$1.4 billion (approximately S$1.2 billion). The portfolio
has an occupancy of 93.9%4 (92.9%5) and a WALE of approximately 4.7 years4 by income (5.0 years5). RETAIL Gross profit decreased by S$2.0 million from S$2.6 million in FY2025 to S$0.6 million in FY2026 mainly due to lower
gross margins and increased costs arising from the highly competitive trading environment. In view of the continuing
challenges faced by the retail segment, the Retail Division recorded a higher impairment loss on its right-of-use and
fixed assets of S$6.7 million as compared to S$4.1 million made in FY2025. OUTLOOK The outlook has weakened amidst the ongoing energy supply shock, which is expected to weigh on global growth
momentum. The Organisation for Economic Co-operation and Development (“OECD”) has projected global growth
of 2.9% for 2026 and 3.0% in 2027, easing from 3.3% in 2025, reflecting a more subdued growth outlook9. The Federal Reserve noted that inflation remains elevated, in part reflecting increases in global energy prices, and
that uncertainty about the economic outlook remains high amidst ongoing geopolitical developments10. Following
stronger-than-expected inflation data, investors have increasingly anticipated that the U.S. Federal Reserve may need
to resume interest rate hikes towards the end of the year11. Persistent inflation, higher-for-longer interest rates and
heightened geopolitical uncertainty are expected to continue to weigh on investor confidence12. Against a backdrop of subdued domestic demand and heightened geopolitical uncertainty, China has set a lower GDP
growth target of 4.5% to 5.0% for 202613, representing a continued moderation in its growth outlook and among the
lowest levels in recent decades. Near-term inflationary pressures are beginning to build, with consumer price index
inflation rising to a 37-month high of 1.3% in February 202614, amidst rising input and energy costs. However, underlying
demand conditions remain weak, reflecting continued softness in consumption and property-related sectors. While the Chinese government has introduced targeted fiscal and monetary support measures, these are expected to
cushion downside risks rather than drive a strong cyclical recovery, with structural challenges in the property sector
continuing to weigh on growth momentum15. The office market continues to grapple with oversupply, with average office face rents across 10 major cities projected
to decline by approximately 8.0% year-on-year16. In Shanghai, despite some recovery in leasing activity towards the
end of 2025, underlying demand remained weak relative to supply, with the citywide Grade A vacancy rate remaining
elevated at 23.6% as at the end of 2025, reflecting persistent supply-demand imbalances. Looking ahead, with
approximately 1.3 million sqm of new Grade A office supply scheduled for completion in 2026, elevated vacancy
levels are expected to persist17. China’s economic slowdown and swelling supply of office space have triggered more landlords to grant longer rentfree periods of more than one year, cut rents or resort to substantial subsidies to retain tenants or attract new ones.
In some instances, tenants only need to pay for property management fees. The Singapore economy grew by 4.6% on a year-on-year basis in the first quarter of 2026, moderating from the 5.7%
growth in the previous quarter. On a quarter-on-quarter seasonally-adjusted basis, the economy contracted by 0.3%,
a reversal from the 1.3% expansion in the fourth quarter of 202518. Reflecting the relatively resilient start to the year,
the Ministry of Trade and Industry (“MTI”) has projected full-year GDP growth of 2.0% to 4.0% for 202619. Notwithstanding the positive growth momentum at the start of the year, the external environment has become
increasingly challenging. Heightened geopolitical tensions and elevated energy prices are expected to weigh on
economic activity over the coming quarters, particularly for outward-oriented economies such as Singapore12. Within the office market, rents rose across most segments in the first quarter of 2026, supported by relatively tight
supply conditions and sustained occupier demand for quality office space. While global economic uncertainty may
influence occupier decision‑making in the near term, demand for core premium and Grade A quality office space is
expected to remain resilient, underpinned by tenants’ preference for well‑located and higher‑specification assets20.
Despite the ongoing uncertainty and the potential for office demand to moderate in the near term, the limited supply
of quality office space is expected to continue to support rental levels21. Under the URA Draft Master Plan 2025, the Tampines Regional Centre area is set to evolve into a more integrated livework hub, with upcoming mixed-use developments, an enhanced transport interchange, and improved pedestrian
connectivity, reinforcing its role as a key decentralised business node22. While leasing activity remains concentrated in
the CBD, limited islandwide supply and the need for occupiers to balance cost considerations may support demand
for well-located, high-specification assets in regional centres over time21. Singapore’s retail sector continues to face a challenging operating environment, with consumer sentiment weighed
by inflationary pressures and a potential economic slowdown23. Department store sales continue to face headwinds,
reflecting cautious discretionary spending. Retail sales are expected to remain subdued, as cost pressures, global
uncertainties and outbound spending continue to weigh on domestic demand24. Indonesia’s economic growth is expected to moderate amidst a more challenging external environment, with the
OECD projecting GDP growth of 4.8% for 2026, down from 5.1% in 2025. Elevated energy prices and heightened
trade uncertainty are expected to weigh on business activity and household purchasing power, with headline inflation
projected to increase to 3.4% in 2026 from 1.9% in 20259. Indonesia’s residential property market remains subdued,
characterised by limited price growth, soft demand and weak residential construction activity, with buyer sentiment
affected by high borrowing costs, a weakening middle class and competition from landed homes benefiting from
favourable tax incentives25. In its April World Economic Outlook, the International Monetary Fund (“IMF”) has projected a decline in the UK’s real
GDP growth from 1.3% in 2025 to 0.8% in 202612. This represents one of the sharpest downward revisions among
Group of Seven economies. Inflation is expected to rise temporarily towards 4.0% before returning to target by the
end of 2027, as the effects of higher energy prices fade and a weakening labour market continues to exert downward
pressure on wage growth. A record 619,360 applications were made to UK universities by the January deadline for the 2026/27 academic cycle,
representing a 3.0% increase from the previous year, with international student applications rising by 5.0% year-onyear to 124,830. Investment into the UK’s PBSA sector reached approximately £4.3 billion in 2025, an increase from
the previous year, supported by continued investor interest and transaction activity. Supply of PBSA is expected to
remain constrained while demand indicators remain strong, underpinned by a persistent supply-demand imbalance26. Manchester is the UK’s second-largest economic centre and is expected to remain supported by economic growth
over the period from 2025 to 2028. By 2028, Manchester’s local economy is projected to be more than £2.9 billion
larger than in 2024, driven by continued expansion in the technology and professional services sectors27.
Manchester remains an attractive city to live and work, underpinned by a growing population base and continued
inward migration. At the same time, the supply of new housing remains constrained, with development activity
affected by planning, cost and regulatory considerations28. This imbalance between demand and supply is expected
to continue to support underlying demand across both the rental and owner-occupier segments, although growth is
likely to moderate in line with broader market conditions29. In the UK, green-certified office buildings are increasingly sought after by firms committed to sustainability, potentially
leading to higher rental growth in markets with limited availability as demand outstrips supply30. The OECD forecasts Australia’s GDP growth to improve modestly to 2.3% in 2026 and 2.4% in 2027, up from 2.0%
in 20259. The Reserve Bank of Australia (“RBA”) initially increased the cash rate from 3.60% in January 2026 to 3.85%
in February 2026 in response to persistent inflationary pressures31. Given that elevated fuel prices are expected to
continue to exert upward pressure on inflation, the RBA further tightened monetary policy in May 2026, increasing the
cash rate by 0.25 percentage points to 4.35%32. The RBA has indicated that inflation is likely to remain above its target
range for some time, with risks tilted to the upside amidst persistent cost pressures and elevated global energy prices.
While monetary policy settings are now more restrictive, the RBA has maintained a cautious stance, noting that the
future path of interest rates will depend on the evolution of inflation and economic conditions. For the Australia office sector, new CBD office supply over the next five years is expected to be significantly lower,
at around one-third of the level delivered over the previous five years, which is likely to support a gradual decline in
vacancy rates and rental growth. Following an initial expansion, capitalisation rates are expected to stabilise in 2026,
with early signs of tightening as investor sentiment improves, rents recover and new supply remains constrained,
supporting modest compression over the medium term33. The Group’s portfolio of long-term and short-term investments, held at fair value through profit or loss and other
comprehensive income, will continue to be subject to volatile fluctuations in their fair value. The Group is exposed
to the effects of foreign currency exchange rate fluctuations, primarily in relation to Chinese Renminbi, Hong Kong
dollar, United States Dollar, Sterling pound, Indonesian rupiah and Australian dollar. Where possible, the Group
seeks to maintain a natural hedge through the matching of liabilities, including borrowings, against assets in the
same currency. In Conclusion Amidst these uncertainties, Metro will exercise caution and prudence while taking proactive measures to maintain
strong capital management discipline, including preserving cash, optimising cash flows and liquidity. The Group will
continue to actively manage its cost of funding in a higher-for-longer interest rate environment, including through
the use of derivative instruments to hedge underlying interest rate exposures, where appropriate. We will defer
uncommitted capital expenditure and implement cost saving measures, while maintaining a strong liquidity position
comprising cash and banking facilities. Metro intends to actively manage its existing investment portfolio to optimise returns and capitalise on new strategic
opportunities to enhance shareholder value. In terms of our asset management strategy, we will prioritise critical
asset enhancement. In view of the challenging conditions, Metro will continue to focus on enhancing operational efficiencies within its retail
division to navigate Singapore’s evolving retail landscape, while also driving its retail transformation through strategic
partnerships as well as curated lifestyle zones and experiential retail formats to enhance customer engagement. As we navigate these complex economic conditions, we remain focused on strengthening our portfolio across
geographies and asset classes, while maintaining a disciplined balance sheet to position us to capture opportunities
as they arise in the future. The Board and Management will continue to actively uphold robust capital management
practices and diligently manage our investment portfolio to safeguard and enhance shareholder value, while steering
the Group towards sustainable long-term growth. PROPOSED DIVIDEND The proposed dividend for FY2026 reflects our sincere appreciation for the steadfast support of our shareholders over
the years. ACKNOWLEDGEMENTS Together with my fellow Board members, we remain committed to navigating the Group through ongoing challenges
we are currently facing, and positioning Metro for the future. TAN SOO KHOON 22 June 2026
In Australia, Metro, together with our joint venture partner Sim Lian, divested Dalyellup Shopping Centre, a freehold
retail property in Western Australia, to an independent third party in November 2025 for approximately A$35.8 million
(approximately S$30.4 million7). The divestment marked Metro’s maiden property divestment under the Australian
joint venture and is in line with the Group’s portfolio reconstitution and capital recycling efforts.
Amidst the challenges confronting Singapore’s retail sector, Metro’s Retail Division reported lower sales from S$96.5
million in FY2025 to S$92.3 million in FY2026 from Metro Paragon and Metro Causeway Point, the two department
stores in Singapore.
The global economic outlook for 2026 remains uncertain amidst heightened geopolitical tension in the Middle East,
which has increased the risk of disruptions to global supply chains and financial markets. Disruptions to shipping
through the Strait of Hormuz have significantly heightened energy supply risks, triggering a severe energy shock that
poses substantial headwinds, particularly for energy-importing economies in Asia8.
Metro continues to operate under challenging conditions, in a macro-environment marked by trade tensions, the
imposition of tariffs and extremely high levels of policy uncertainty, with strong headwinds across key markets.
Majority of the Group’s property exposure is in China, which continues to be affected by a protracted property market
downturn and slowing economic growth that are in turn weighing on business and consumer confidence, investment
plans and employment.
To reward our loyal shareholders, the Board has recommended a final dividend of 2.0 Singapore cents per ordinary
share, considering the Group’s anticipated capital requirements and reinvestment needs amidst an uncertain and
challenging macroeconomic environment.
On behalf of the Board of Directors, I would like to extend my sincere appreciation to our loyal shareholders, dedicated
employees, valued customers, business partners, associates, and stakeholders for their continued support over the
years.
Chairman 1 Net debt/equity
2 Savills, Singapore Office Briefing Q1 2026, April 2026
3 CBRE, Singapore Real Estate Market Outlook, February 2026
4 As at 31 March 2026
5 As at 31 March 2025
6 CBRE, Purpose-Built Student Accommodation (PBSA) Index, November 2025
7 As at 6 November 2025, AUDSGD = 0.85
8 UOB House View 2Q 2026, 2 April 2026
9 OECD Economic Outlook, Interim Report March 2026, 26 March 2026
10 U.S. Federal Reserve, FOMC Statement, 29 April 2026
11 Reuters, “Markets begin eyeing a Fed rate hike around the turn of the year”, 15 May 2026
12 IMF World Economic Outlook, April 2026
13 Reuters, China sets lower growth target amid weak demand, 5 March 2026
14 Reuters, China inflation hits 37-month high amid rising costs, 9 March 2026
15 Bloomberg, China stimulus seen cushioning slowdown, not driving rebound, 17 March 2026
16 CBRE, 2026, China Real Estate Market Outlook, February 2026
17 Savills, Shanghai Office Market Q4/2025, February 2026
18 Ministry of Trade and Industry Singapore, Singapore’s GDP Grew by 4.6 Per Cent in the First Quarter of 2026, April 2026
19 Ministry of Trade and Industry Singapore, MTI Upgrades 2026 GDP Growth Forecast to “2.0 to 4.0 Per Cent”, February 2026
20 Colliers, Q1 2026: Premium leads rental growth Singapore, March 2026
21 Cushman & Wakefield, Marketbeat Singapore Office Q1 2026, March 2026
22 Urban Redevelopment Authority, Draft Master Plan 2025 (decentralisation strategy and regional centres)
23 Department of Statistics Singapore, Retail Sales Index and Food & Beverage Services Index, February 2026
24 Cushman & Wakefield, Marketbeat Singapore Retail Q1 2026, March 2026
25 JLL, APPD Market Report Article, Jakarta, 12 February 2026
26 Knight Frank, UK Student Market Update, February 2026
27 Manchester City Council, Our Manchester Strategy 2025-35 Report
28 CBRE, UK Residential Forecasts Q1 2026, March 2026
29 CBRE, UK Real Estate Market Outlook 2026, January 2026
30 CBRE, UK Sustainability Index – Results to H1 2025, September 2025
31 Reserve Bank of Australia, Statement by the Monetary Policy Board: Monetary Policy Decision, 3 February 2026
32 Reserve Bank of Australia, Statement by the Monetary Policy Board: Monetary Policy Decision, 5 May 2026
33 CBRE Pacific Real Estate Market Outlook 2026, 27 January 2026