Ascendas REIT - Annual Report 2021

The Manager’s Review of FY2021 Ascendas Reit also successfully raised gross proceeds of approximately S$420.0 million through a private placement in May 2021. Through the private placement, a total of 142,664,000 new Units were issued at a price of S$2.944 per Unit, representing a discount of approximately 5.2% to the volume weighted average price (VWAP) of S$3.1062 per Unit on the SGX-ST for the preceding Market Day. This is approximately a 33% premium to the NAV per Unit as at 31 December 2020. The proceeds used were in accordance with the stated use and in accordance with the percentage allocation in the relevant announcement dated 15 June 2021 in relation to the private placement. Key Debt Funding Indicators Indicators As at 31 December 2021 As at 31 December 2020 Aggregate Leverage (1)(2)(3)(4) 35.9% 32.8% Total Debt (S$ million) (1)(2)(3) 6,143 4,784 Fixed Debt as a % of Total Debt 79.4% 78.1% Weighted Average All-in Borrowing Cost (per annum) 2.2% 2.7% Weighted Average Term of Debt Outstanding (years) 3.5 3.7 Weighted Average Term of Fixed Debt Outstanding (years) 3.6 3.5 Interest Cover Ratio (5) 5.7 (7) x 4.3x Net Debt / EBITDA 7.8x 7.3x Unencumbered Properties as % of Total Investment Properties (6) 92.1% 91.7% (1) Excludes fair value changes and amortised costs. Borrowings denominated in foreign currencies are translated at the prevailing exchange rates except for JPY/HKD-denominated debt issues, which are translated at the cross-currency swap rates that Ascendas Reit has committed to. (2) Excludes the effects of FRS 116. (3) In accordance with Property Funds Appendix, Ascendas Reit’s proportionate share of its joint ventures’ borrowings and deposited property values are included when computing aggregate leverage. The ratio of total gross borrowings (including perpetual securities) to total net assets is 62.7%. (4) The Manager is of the view that the higher aggregate leverage as at 31 December 2021 will not have a material impact on the risk profile of Ascendas Reit as it is still within a manageable range below the MAS regulated aggregate leverage limit of 50.0%. (5) Based on the trailing 12 months EBITDA (excluding effects of any fair value changes of derivatives and investment properties, and foreign exchange translation), divided by the trailing 12 months interest, expense and borrowing-related fees. (6) Total investment properties exclude properties reported as finance lease receivables. (7) With reference to MAS Circular No. CFC 01/2021, the interest expense on lease liabilities was excluded as it is an accounting classification and does not reflect the serviceability of debt. Debt Maturity Profile (as at 31 December 2021) 1000 800 600 400 900 700 500 300 200 100 0 FY2021 FY2025 FY2028 FY2023 FY2027 FY2031 FY2022 FY2026 FY2030 FY2024 FY2029 FY2031 and beyond S$(million) 627 624 688 871 874 939 431 462 362 100 165 – Revolving Credit Facilities Committed Revolving Credit Facilities Term Loan Facilities Medium Term Notes 627 274 488 338 549 685 431 462 362 100 165 254 325 379 154 200 350 Diversified Financial Resources S$6.14 BILLION 46% 39% 5% 10% Ascendas Reit 36