Ascendas REIT - Annual Report 2021

Notes to the Financial Statements YEAR ENDED AT 31 DECEMBER 2021 30. OPERATING SEGMENTS For the purpose of making resource allocation decisions and the assessment of segment performance, the Chief Executive Officer, the Group’s Chief Operating Decision Maker (“CODM”) reviews internal / management reports of its investment properties. This forms the basis of identifying the operating segments of the Group under FRS108 Operating Segments. Segment revenue comprises mainly income generated from its tenants. Segment net property income represents the income earned by each segment after allocating property operating expenses. This is the measure reported to the CODM for the purpose of assessment of segment performance. In addition, the CODM monitors the non-financial assets as well as financial assets attributable to each segment when assessing segment performance. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly management fee, performance fee, trust expenses, finance income, finance costs and related assets and liabilities. Information regarding the Group’s reportable segments is presented in the tables below. Segment results Business & Science Park Properties Integrated Development, Amenities & Retail Properties High-Specifications Industrial Properties Light Industrial Properties & Flatted Factories Logistics & Distribution Centres Data Centres Total 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Group Gross rental income 491,429 399,366 57,446 57,770 123,839 123,112 77,820 74,773 221,146 217,864 96,118 39,341 1,067,798 912,226 Other income 70,076 62,672 2,765 5,669 20,303 23,869 8,580 9,509 36,163 30,655 20,840 4,860 158,727 137,234 Gross revenue 561,505 462,038 60,211 63,439 144,142 146,981 86,400 84,282 257,309 248,519 116,958 44,201 1,226,525 1,049,460 Property operating expenses (144,839) (128,865) (13,656) (17,391) (41,055) (42,059) (24,269) (24,550) (54,003) (55,067) (27,953) (5,282) (305,775) (273,214) Segment net property income 416,666 333,173 46,555 46,048 103,087 104,922 62,131 59,732 203,306 193,452 89,005 38,919 920,750 776,246 Net property income margin 74.2% 72.1% 77.3% 72.6% 71.5% 71.3% 71.9% 70.9% 79.0% 77.8% 76.1% 88.1% 75.1% 74.0% Unallocated – Gain on disposal on investment properties 23,994 5,390 – Finance costs, net (158,880) (159,489) – Other net expenses (87,092) (66,116) Net income 698,772 556,031 Unallocated net change in fair value of financial derivatives 64,832 (33,625) Net change in fair value of right-of- use assets (2,646) (1,515) – – (1,196) (735) (907) (802) (1,677) (2,386) (216) – (6,642) (5,438) Net change in fair value of investment properties and investment properties under development (54,294) 5,361 (11,614) (4,463) (4,972) (29,299) 16,575 (4,212) 362,734 (2,318) (25,184) 2,609 283,245 (32,322) Share of associated company’s and joint venture’s results 3,304 9,590 Total return for the year before tax 1,043,511 494,236 Unallocated tax expenses (86,472) (37,158) Total return for the year 957,039 457,078 Annual Report 2021 255