Page 136 - ar2012

These notes form an integral part of the fnancial statements.
The fnancial statements were authorised for issue by the Manager and the Trustee on 28 May 2012.
1 General
Ascendas Real Estate Investment Trust (the “Trust”) is a Singapore-domiciled real estate investment trust constituted pursuant to
the trust deed dated 9 October 2002 between Ascendas Funds Management (S) Limited (the “Manager”) and HSBC Institutional
Trust Services (Singapore) Limited (the “Trustee”), as supplemented and amended by the First Supplemental Deed dated 16 January
2004, the Second Supplemental Deed dated 23 February 2004, the Third Supplemental Deed dated 30 September 2004, the Fourth
Supplemental Deed dated 17 November 2004, the Fifth Supplemental Deed dated 20 April 2006 and as sanctioned by Extraordinary
Resolutions obtained at a meeting of Unitholders duly convened and held on 28 June 2007 and as restated by the First Amending and
Restating Deed dated 11 June 2008, as amended by the Seventh Supplemental Deed dated 22 January 2009, the Eighth Supplemental
Deed dated 17 September 2009, the Ninth Supplemental Deed dated 31 May 2010, the Tenth Supplemental Deed dated 22 July 2010
and the Eleventh Supplemental Deed dated 14 October 2011 (“Trust Deed”).
The Trust was formally admitted to the Offcial List of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 19 November
2002 and was included under the Central Provident Fund (“CPF”) Investment Scheme on 15 October 2002.
The principal activity of the Trust is to invest in a diverse portfolio of properties and property related assets with the primary objective
of achieving an attractive level of return and long-term capital growth. The principal activities of the subsidiaries are set out in Note 9.
The consolidated fnancial statements relate to the Trust and its subsidiaries (the “Group”).
The Trust has entered into several service agreements in relation to the management of the Trust and its property operations. The fees
structures of these services are as follows:
(a) Trustee’s fees
Trustee’s fees shall not exceed 0.25% per annum of the value of all the gross assets of the Group (“Deposited Property”) (subject
to a minimum of $10,000 per month) or such higher percentage as may be fxed by an Extraordinary Resolution of a meeting of
Unitholders. Based on the current agreement between the Manager and the Trustee, the Trustee charges 0.03% per annum of the
Deposited Property. The Trustee’s fees are payable out of the Deposited Property of the Group monthly in arrears. The Trustee is
also entitled to reimbursement of expenses incurred in the performance of its duties under the Trust Deed.
(b) Management fees
The Manager is entitled to receive the following remuneration:
(i) a base management fee of 0.5% per annum of the Deposited Property or such higher percentage as may be approved by an
Extraordinary Resolution of a meeting of Unitholders; and
(ii) an annual performance fee of:
• 0.1% per annum of the Deposited Property, provided that the annual growth in distributions per unit in a given fnancial
year (calculated before accounting for the performance fee in that fnancial year) exceeds 2.5%; and
• an additional 0.1% per annum of the Deposited Property, provided that the growth in distributions per unit in a given
fnancial year (calculated before accounting for the performance fee in that fnancial year) exceeds 5.0%.
NOTES TO THE FINANCIAL STATEMENTS
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
136