Ascendas REIT - Annual Report 2021

Enterprise Risk Management Material Risks Key Mitigating Actions Opportunities Sales & Leasing • Strong competition, poor economic and market conditions, and shifts towards hybrid / flexible work arrangements post-COVID-19 pandemic are some key factors that may result in decline in new take-ups or key tenants not renewing their leases, adversely affecting the leasing performance of Ascendas Reit Group’s properties. • Establish andmaintain a diversified tenant base and sustainable trade mix. • Proactive tenant management strategies to understand and address customers’ changing needs. • Proactive tenant management strategies in line with the market positioning of the properties are in place. • Maintain positive relationships and rapport with tenants to build loyalty with Ascendas Reit Group’s properties. • Plan asset enhancement initiatives (AEIs) to maintain relevance and appeal of Ascendas Reit Group’s assets. • Reposition / convert aging assets to ensure portfolio remains relevant and fit-for- purpose. • “Core and flex” approach to cater to a variety of tenant requirements in a post- pandemic environment. Annual Report 2021 153