Ascendas REIT - Annual Report 2021

Business Model Three-Pronged Strategy Undertaking disciplined value-adding investments through acquisitions and development of high- quality properties. Optimising Ascendas Reit’s funding structure and costs. Maintaining an effective system of risk management and internal controls. Maximising organic growth potential and returns of the portfolio through active asset management. The Manager works closely with the asset and property managers in carrying out these principal strategies and the relevant activities. • Regular reviews of Ascendas Reit’s debt and capital management, and financial policy • Diversifying sources of funding, managing interest rate risk, liquidity risk, credit risk and foreign currency risk • Monitoring Ascendas Reit’s exposure to various risk elements and externally imposed requirements in the markets it operates in by closely adhering to clearly established management policies and procedures • Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Ascendas Reit’s strategic direction • Creating an acceptable balance between the benefits derived from managing risks and the cost of managing those risks • Acquiring income-producing properties leased to established customers • Acquiring high-quality properties with strong income stream and/or asset enhancement potential • Developing build-to-suit projects to cater to prospective customers’ operational requirements and specifications • Selective development/ redevelopment to capitalise on the Manager’s development capabilities • Sourcing of overseas investment opportunities to strengthen portfolio diversification and resilience • Proactive marketing and leasing of spaces to achieve a healthy occupancy rate • Providing high standards of property and customer services • Enhancing operational efficiency and optimisation of operating costs • Carrying out asset enhancement initiatives PROACTIVE PORTFOLIO MANAGEMENT PRUDENT CAPITAL & RISK MANAGEMENT 1 2 3 DISCIPLINED VALUE-ADDING INVESTMENTS Ascendas Reit 18