The directors present the strategic report for the year ended 31 December 2024.

During the year ended 31 December 2024 the Company generated revenue of £9.45m (2023: £9.88m).

Interest rate and Valuation risk

The Company faces strong headwinds from the interest rates remaining high, with SONIA rates moving from

5.19% at the start of 2024 to 4.70% by the end of 2024. This high level of interest rates is not expected to

decrease and the Company expects interest rates to remain high through by the end of 2025. Whilst this shows an improvement, this regardless is a larger increase vs the historical rates of c3% which poses an ongoing risk. This is mainly due to double digits inflation in the UK from 2022 to 2024. The full extent of how long inflation will remain high remains to be seen. With a higher than expected interest rate and several global conflicts, asset cap rates may be affected.

Following high interest rates, transaction volumes in the London market have dropped, any transaction will

have increased asset cap rate effects whereby purchaser will want discounts on asset purchase prices. Since

management has no intention to sell at this present moment, there is still high confidence that the valuation

will not stay depressed for too long as London is still a key market in the world.

• Tenants overdues - the company together with its agents Helix take an active view in communicating to tenants on its overdues, amounts exceeding 30 days, reminders are sent and communications with tenants intensify to find out their reason for the delays in payments. Amounts exceeding 120 days are provided however it is still imperative for the management as well as Helix to seek a solution. For tenants that are badly affected by national lockdowns, management has opted to provide rent free reliefs in exchange for extension of lease agreements.

• Renewal rate - to obtain higher renewal rates if the lease is under negotiations.

• Minimise write-off of debts - to obtain zero write-offs unless absolutely necessary as in the tenant has absolute grounds not to pay rent or service charge. We will allow write-offs only when consulted with legal agents.

• New tenants - to obtain higher renewal rates as compared to the outgoing tenants.

Performance against these key performance indicators has remained broadly consistent this year compared to the prior year.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of property investment in the United Kingdom. No changes in the principal activity are anticipated in the future.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of SML Strand Property Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors' Report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the company’s member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s member, those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member, for our audit work, for this report, or for the opinions we have formed.

SML Strand Property Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Intertrust Group, 1 Bartholomew Lane, London, England, EC2N 2AX. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000's.

The financial statements have been prepared under the historical cost convention, except for the revaluation of Investment Properties. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of the objectives, policies and processes for managing capital;

• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

• the effect of financial instruments on the statement of comprehensive income;

• comparative period reconciliations for investment property;

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• for financial instruments, investment property measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value

Where required, equivalent disclosures are given in the group accounts of Sinarmas Land Limited. The group accounts of Sinarmas Land Limited are available to the public and can be obtained as set out in note 18.

Ttruehe directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Losses reduced from £47 million in the year ending 31 December 2023 to £12 million in the year ending 31 December 2024 and the company has net assets of £21 million. The ability of the company to continue as a going concern is dependent upon the continued support of its ultimate parent company, Sinarmas Land Limited, which has agreed to provide the necessary financial assistance in order for the company to meet its financial commitments as and when they fall due over the next 12 months from the date of signing the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

In accordance with IFRS 16, our revenue recognition policy for rental revenues is designed to reflect the accurate economic substance of our leasing arrangements. With revenue derived from leasing arrangements recognised over the life of the lease on a straight-line basis with an adjustment to revenues to recognise the direct costs associated with obtaining a lease spread over the length of the lease.

Our policy ensures that rental income is recognised in a manner that represents the pattern of benefits derived from the leased asset and is reported in our financial statements, providing transparency and consistency with the IFRS 16 leasing standard.

Income presented within the financial statements relates to both rental incomes and service charge income, with the latter having a corresponding expenditure entry which is inline with our terms within the leases issued to tenants.

Investment property is measured initially at cost, including related transaction costs. After initial recognition, investment property is carried at fair value. Fair value is based on active market prices, adjusted, if necessary, for any differences in nature, location or condition of the specific asset. If this information is not available, the Directors use alternative valuation methods such as recent prices on less active markets or discounted cash flow projections.

Changes in fair values are recorded in the statement of comprehensive income.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting period end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting period end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The Company reviews its investment property fair value at each reporting date. The Directors use valuations from independent valuers in its assessment and estimates discounted future cash flows and rental yields.

The Company reviews the ageing analysis of receivables on a regular basis. Unless specific agreement for late or alternative repayment is in place, the Company provides in full for any trade receivables that are 120 days past due. However, in certain cases the Company may also consider receivables to be in default based on observable internal or external information. Amounts due from group companies are provided for at a rate of 0.10% which is based on Moody's Investment Grade for intercompany receivables. A considerable amount of judgement is required in assessing the recoverability of receivables, including credit worthiness and collection history of counterparties. Deterioration in the counterparty's financial conditions may affect allowances for credit losses.

The average monthly number of persons (including directors) employed by the company during the year was:

SML Property Strand Limited is part of the Sinarmas group, which is within the scope of the OECD’s Pillar Two model rules. Pillar Two legislation has been enacted in the UK and is effective for the year ended 31 December 2024.

Under the legislation, the group (under Income Inclusion Rules or UK MTT) or the local UK entity may be liable to pay a top-up tax for the difference between the GloBE effective tax rate for each jurisdiction and the 15% minimum tax rate in 2024. This would be collected in the UK via its domestic top-up tax (DTT).

Transitional relief has been introduced based on the group’s country-by-country reporting obligations. If the criteria are met, no top-up tax will be charged for the tax jurisdiction in question, and there is no need to prepare the full calculation of top-up tax. More detailed work will be performed prior to tax return submissions but, based on preliminary country-by-country-reporting for 2024, the group considers that the UK is within the scope of the transitional Safe Harbour rules.

The group also applies the exception to the requirement to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in FRS 102 section 29.

Under the cost model, the historical cost of the company's investment property at 31 December 2024 was £112,355,000 (31 December 2023: £112,355,000).

The financial statements reflect a director’s valuation of investment property. In arriving at their valuation, the directors have given consideration to an internally produced discounted cashflow valuation, as at the balance sheet date, and a third-party expert valuation, commissioned by the debt provider for the purposes of debt securitisation and based on the comparison method of valuation. The third party valuation was as at 21 May 2024 and estimated the value of the property at £138,500,000. Having given consideration to these two valuations, the directors estimated the market value of the property at the balance sheet date as £138,500,000.

The fair value measurement falls within Level 3 of the fair value hierarchy per IFRS 13.

The market value of the property has been adjusted to the carrying value by deducting tenant lease incentives, with the market value of the property being prepared on the basis of market rent being achieved year on year, however to avoid double counting the lease incentives offered we have adjusted the value as follows:

The company has an external loan agreement which currently includes certain cash restrictions.

The restrictions include a balance of £32,701,000 (2023: £20,413,000) which is included in non-current assets to be reserved within its DSRA bank account, for the purpose of covenant compliance. The directors have considered the company's obligations under the the agreement and have ensured compliance with the cash restriction in place.

The restrictions also include a balance of £2,620,000 (2023: £4,664,000) which is included in current assets to be reserved within its DSCR reserve bank account, for the purpose of interest cover. The directors have considered the company's obligations under the the agreement and have ensured compliance with the cash restriction in place.

On 24 June 2022, the company's parent company, SML Strand Limited, entered into a bank loan agreement of £121,420,000 with Deutsche Bank AG, which was secured over all the assets of the parent company, including the share capital of the company. The loan bears interest at SONIA plus a margin of 1.65% per annum. The loan is repayable within five years from the date of utilisation.

On 6 July 2022 all obligations under the loan, including the security held by Deutsche Bank AG, were reassigned to the company.

The results shown in the financial statements indicate technical breaches of the company's financial covenants.

However, for the Loan to Value (LTV) breaches during both the current and prior year the company has deposited into the DSRA bank account to cover the LTV shortfall and for the interest cover breaches the company has deposited into the DSCR reserve bank account to cover the interest cover shortfall, in accordance with the relevant clauses in the loan agreement. Refer to the restricted cash policy (see note 11 to the financial statements for further details).

The Company earns rental income by leasing its investment properties to tenants under non-cancellable operating leases.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

Included within trade and other payables is an amount of £29,401,000 due to the parent company (2023: £19,781,000). The balances are interest free and repayable on demand.

Also included within trade and other payables is an amount of £3,272,000 (2023: £2,128,000) for management fees due to the ultimate controlling party, Sinarmas Land Limited.

The immediate parent company is SML Strand Limited, a company incorporated in Jersey.

The ultimate controlling party is Sinarmas Land Limited, incorporated in Singapore. The group financial statements can be obtained from the registered office at 108 Pasir Panjang Road, #06-00 Golden Agri Plaza, Singapore 118535.