Ascendas REIT - Annual Report 2021

WILLIAM TAY WEE LEONG CHIEF EXECUTIVE OFFICER In Conversation with CEO 1. In 2021, you acquired more properties overseas than in Singapore. Should we expect this to continue? Singapore remains a key home market for us. As an attractive pro-business gateway to Asia, the country continues toattract diverse and leading industry players from new economy sectors. Our Sponsor’s pipeline of business and science park properties worth more than S$1.5 billion is one source of growth for Ascendas Reit. Recently, we embarked on a transformational development together with CapitaLand Development to create a life science and innovation campus at the Singapore Science Park 1 to better capture demand from these sectors. Designed to achieve BCA’s Green Mark Platinum rating, this future campus can accommodate biomedical research and development activities. It will be integrated with retail and F&B amenities and have a direct sheltered connection to Kent Ridge MRT station when completed in 2Q 2025. In addition, Ascendas Reit has a good track record of developing built-to-suit facilities to support businesses in Singapore. The recently completed Grab Headquarters at one-north in Singapore is a good example of how we can partner companies in their business expansions. The overseas markets present a myriad of opportunities given the relatively larger size of their real estate sectors. Our teams are constantly reviewing potential transactions ranging from portfolio deals to single asset sales in new or existing locations that could enhance Ascendas Reit’s overseas portfolios. Our strategic focus is to pivot our portfolio to cater to business activities of the technology, life science and logistics industries. We have always avoided committing to a fixed proportion of overseas exposure as this would restrict our ability to capture accretive growth opportunities for Unitholders. There are good opportunities in all the markets that we have a presence today and we plan to scale up our portfolio through acquisitions and developments. 2. Capitalisation rates for prime industrial assets have compressed globally fueled by strong investor demand. How do you plan to acquire more properties that are DPU accretive? We continue to face strong competition in all our markets. To overcome this, we have widened our target markets to include both primary and secondary locations with robust fundamentals such as growing populations and well- connected transportation networks. A good example would be our acquisition of 11 last-mile logistics properties located in Kansas City, USA. The logistics sector in Kansas City has tremendous potential arising from its central location in Midwestern USA. From the city, 85% of the nation’s population can be reached within two days as it sits at the crossroads of major interstate highways and has 30% more interstate miles per capita than any other city in the USA.