Ascendas REIT - Annual Report 2021

Corporate Governance In particular, the procedures in place include the following: Interested Person Transactions 1 Approving Authority, Procedures and Disclosure S$100,000 and above per transaction (which singly, or when aggregated with other transactions 2 with the same Interested Person in the same financial year is less than S$15 million) • Management • Audit & Risk Committee (review at regular intervals) Transaction above S$15 million (which singly, or when aggregated with other transactions 2 with the same Interested Person in the same financial year is less than 3.0%of Ascendas Reit’s latest audited net tangible assets / net asset value) • Management • Audit & Risk Committee Transaction 2 which: (a) is equal to or exceeds 3.0% of Ascendas Reit’s latest audited net tangible assets / net asset value; or (b) when aggregated with other transactions 2 with the same Interested Person in the same financial year is equal to or exceeds 3.0% of Ascendas Reit’s latest audited net tangible assets / net asset value • Management • Audit & Risk Committee • Immediate announcement Transaction 2 which: (a) is equal to or exceeds 5.0% of Ascendas Reit’s latest audited net tangible assets / net asset value; or (b) when aggregated with other transactions 2,3 with the same Interested Person in the same financial year is equal to or exceeds 5.0% of Ascendas Reit’s latest audited net tangible assets / net asset value • Management • Audit & Risk Committee • Immediate announcement • Unitholders 3 1 This table does not include the procedures applicable to Interested Person Transactions falling under the exceptions set out in Rules 915 and 916 of the Listing Manual. 2 Either individually or as part of a series or if aggregated with other transactions involving the same interested party during the same financial year. 3 In relation to approval by Unitholders for transactions that are equal to or exceed 5.0% of Ascendas Reit’s latest audited net tangible assets / net asset value (whether singly or aggregated), any transaction which has been approved by Unitholders, or is the subject of aggregation with another transaction that has been approved by Unitholders, need not be included in any subsequent aggregation. The Manager has engaged BDO LLP (BDO) to carry out reviews on IPTs on a quarterly basis. As part of this engagement, BDO reviews, amongst other procedures, the maintenance of IPT registers, process of identification of IPTs, the comparables used for assessing if IPTs are undertaken on an arm’s length basis and on normal commercial terms, and that there is reasonable and valid documentation supporting the conclusions on IPTs. Guidelines and procedures established to monitor IPTs are also audited on a periodic basis. Role of the Audit & Risk Committee for Interested Person Transactions The Manager’s internal control procedures are intended to ensure that Interested Person Transactions are conducted at arm’s length, on normal commercial terms and are not prejudicial to Ascendas Reit and Unitholders’ interests. The Manager maintains a register to record all Interested Person Transactions which are entered into by Ascendas Reit (and the basis on which they are entered into, including the quotations obtained to support such basis). All Interested Person Transactions are subject to regular periodic reviews by the ARC, which in turn obtains advice from BDO, to ascertain that the guidelines and procedures established to monitor Interested Person Transactions, including the relevant provisions of the Listing Manual and the Property Funds Appendix, as well as any other guidelines which may from time to time be prescribed by the SGX-ST, MAS or other relevant authorities, have been complied with. The review includes an examination of the nature of the transaction and its supporting documents or such other information deemed necessary by the ARC. If a member of the ARC has an interest in Annual Report 2021 139