Ascendas REIT - Annual Report 2021

Enterprise Risk Management Material Risks Key Mitigating Actions Opportunities Investment & Divestment • Deployment of capital into loss-making or below-target return investments due to wrong underwriting assumptions or poor execution. • Inadequate planning to identify suitable divestment opportunities. • Evaluate all investments against a rigorous set of investment criteria which includes potential for growth in yield, rental sustainability and potential for value creation. • Board reviews and approves all major investment and divestment decisions. • Conduct rigorous due diligence reviews on all investment and divestment proposals where key financial assumptions are reviewed, and sensitivity analysis are performed on key variables. • Hurdle rates and weighted average cost of capital based on relevant risk adjusted input parameters, used as investment benchmarks are reviewed / updated annually and adjusted accordingly where necessary. • Integrate sustainability in real estate life cycle from the earliest stage of our investment, redevelopment and divestment processes. • Strong experience and track record in multi-sector asset and portfoliomanagement is our competitive advantage. • Capitalise on growth in segments such as e-commerce, logistics, digitalisation in the new economy. Regulatory & Compliance • Non-compliance to applicable local laws and regulations, including relevant data protection and privacy regulations, in the markets Ascendas Reit Group operates in. • Maintain a framework that proactively identifies the applicable laws and regulations, and embeds compliance into day-to-day operations. • Leverage in-house specialised teams inCLI such as compliance and tax to provide advisory services and updates on changes to laws and regulations. • CLI establishes group-wide procedures and policies to address the requirements of the applicable data protection and privacy laws through policies such as, Personal Data Protection Policy, GroupData BreachReporting& Management Policy, GroupVendorManagement Policy, Global Omnichannel Marketing Policy, Group Data Governance Policy and PDPAGroup Compliance Manual. • Keeping abreast on the changing regulatory landscape allows us to focus on the potential improvements in the various compliance areas. Ascendas Reit 152