Ascendas REIT - Annual Report 2021

The Manager’s Review of FY2021 • Overall portfolio occupancy remained high at 93.2%. • Achieved positive rental reversion of 4.5% for leases renewed in FY2021. • Completed a total of three asset enhancement initiatives (AEIs) in Singapore and Australia at a total cost of S$23.3 million to upgrade building specifications, improve amenities and enhance customer experience. • As at 31 December 2021, there were seven on-going developments, redevelopments and AEIs with an estimated combined cost of S$685.2 million. • Completed S$2,115.4 million worth of acquisitions and developments: – 11 data centres located across key European data centre markets for S$904.6 million; – Remaining 75% stake of Galaxis, a business park property in Singapore, for S$534.4 million; – A suburban office located at 1 – 5 Thomas Holt Drive in Sydney, Australia for S$284.0 million; – 11 last-mile logistics properties located in Kansas City, USA, for S$207.8 million; – A built-to-suit development for Grab’s Headquarters in Singapore, for S$184.6 million. • Divested a total of four logistics properties and one business park property in Australia and Singapore, which generated total sale proceeds of S$247.9 million. • Total valuation of 217 properties 1 was S$16,293.7 million. Same-store valuation 3 of 192 properties improved by 3.4% y-o-y to S$13,953.0 million largely due to cap rate compression in Singapore, Australia and the UK. 1 Excludes 25 & 27 Ubi Road 4 and iQuest@IBP in Singapore which were under-going redevelopment as at 31 December 2021. 2 Refers to equivalent yield for UK logistics properties, which reflects the current level of return on property investments in the UK. This excludes properties which were valued based on discounted cash flow method only. 3 Same-store valuation comprises 192 properties, excluding divested properties, newly acquired/completed properties and properties under redevelopment during FY2021. DISCIPLINED VALUE-ADDING INVESTMENT AND PORTFOLIO DIVERSIFICATION PROACTIVE PORTFOLIO MANAGEMENT Portfolio Occupancy As at 31 December 2021: 93.2% As at 31 December 2020: 91.7% Total Assets +17.2% As at 31 December 2021: S$17.7 billion As at 31 December 2020: S$15.1 billion Portfolio Capitalisation Rate (217 properties 1 ) 5.67% Portfolio Rental Reversion FY2021: 4.5% FY2020: 3.8% FY2021 FY2020 Singapore 5.82% 6.01% Australia 4.86% 5.62% USA 5.90% 5.79% UK/Europe 5.64% 2 5.81% 2 As at Dec 2021 Dec 2020 Singapore 90.2% 88.4% Australia 99.2% 97.4% USA 96.7% 97.5% UK/Europe 94.5% 92.9% 34 Ascendas Reit