Ascendas REIT - Annual Report 2021

Corporate Governance OUR ROLE We, as the manager of Ascendas Reit (Manager), set the strategic direction of Ascendas Reit and its subsidiaries (Ascendas Reit Group) and make recommendations to HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of Ascendas Reit (Trustee), on any investment or divestment opportunities for Ascendas Reit and the enhancement of the assets of Ascendas Reit in accordance with the stated investment strategy for Ascendas Reit. The research, evaluation and analysis required for this purpose are coordinated and carried out by us as the Manager. As the Manager, we have general powers of management over the assets of Ascendas Reit. Our primary responsibility is to manage the assets and liabilities of Ascendas Reit for the benefit of the unitholders of Ascendas Reit (Unitholders). We do this with a focus on generating rental income and enhancing asset value over time so as to maximise returns from the investments, and ultimately the distributions and total returns, to the Unitholders. Our other functions and responsibilities as the Manager include: (a) using our best endeavours to conduct Ascendas Reit’s business in a proper and efficient manner; (b) preparing annual business plans for review by the directors of the Manager (Directors), including forecasts on revenue, net income, and capital expenditure, explanations on major variances to previous years’ financial results, written commentaries on key issues and underlying assumptions on rental rates, operating expenses and any other relevant assumptions; (c) ensuring compliance with relevant laws and regulations, including the Listing Manual of Singapore Exchange Securities Trading Limited (SGX-ST) (Listing Manual), the Code on Collective Investment Schemes (CIS Code) issued by the Monetary Authority of Singapore (MAS) (including Appendix 6 of the CIS Code (Property Funds Appendix)), the Securities and Futures Act 2001 (SFA), written directions, notices, codes and other guidelines that MAS may issue from time to time, the tax rulings issued by the Inland Revenue Authority of Singapore and relevant tax authorities on the taxation of Ascendas Reit and where relevant, its Unitholders, and the United Kingdom's Alternative Investment Fund Managers Regulations 2013 (as amended) (AIFMR); (d) attending to all regular communications with Unitholders; and (e) supervising Ascendas Services Pte Ltd (for properties located in Singapore), CapitaLand Australia Pty Ltd, CL International Management (UK) Limited, CapitaLand International (USA) LLC (for properties located in Australia, the United Kingdom/Europe and the United States of America respectively) and third party managing agents (collectively known as the Asset / Property Managers) which perform the day-to-day property management functions (including leasing, marketing, promotion, operations coordination and other property management activities) for Ascendas Reit’s properties. The Manager also considers sustainability issues (including environmental and social factors) as part of its responsibilities. Ascendas Reit’s environmental sustainability and community outreach programmes are set out on pages 20 and 21 of this Annual Report. Ascendas Reit, constituted as a trust, is externally managed by the Manager. The Manager appoints experienced and well qualified personnel to run its day-to-day operations. The Manager was appointed in accordance with the terms of the trust deed constituting Ascendas Reit dated 9 October 2002 (as amended, varied or supplemented from time to time) (Trust Deed). The Trust Deed outlines certain circumstances under which the Manager can be removed, including by notice in writing given by the Trustee upon the occurrence of certain events, or by resolution passed by a simple majority of Unitholders present and voting at a meeting of Unitholders duly convened and held in accordance with the provisions of the Trust Deed. Ascendas Reit 110