Understanding how climate change could affect our assets is essential to protecting the value and resilience of our portfolio. Our physical climate risk assessments give us a clear, asset-level view of exposure to weather-related hazards – informing how we plan, invest and operate in a changing climate.

In FY26, we completed detailed physical risk assessments across 27 assets spanning our office, retail, industrial and healthcare portfolios. Marsh supported the assessments with climate hazard modelling, drawing on independent climate datasets and downscaled projections aligned to AASB S2 scenarios. Assessments are refreshed on a rolling cycle to reflect updated climate data and changes in our portfolio.

The assessments identified flood, heat stress and water stress as the most significant weather-related perils across our portfolio, with exposure varying by asset, location and time horizon. These portfolio-level insights support our site risk assessment program, prioritising assets to undertake tailored risk profiles setting out current and projected hazard exposure, along with practical adaptation considerations.

Where elevated risks were identified, we are integrating adaptation actions into asset plans and capital budgets. At Waterfront Brisbane, we have embedded flood resilience into the development design to manage projected sea level rise and storm surge. At Royal Randwick in Sydney, cooling and shading upgrades are supporting customers and visitors during periods of extreme heat. In drought-exposed regions, we are prioritising water efficiency initiatives at assets including Carseldine Central in Queensland.

By assessing physical risk at an asset level and embedding findings into how we manage our portfolio, we are strengthening the resilience of our assets and the long-term value we deliver for investors, customers and the communities in which we operate.