138 CapitaLand Ascendas REIT Notes to the Financial Statements 31 December 2025 (ii) Property tax objections and savings The Manager or its nominees are entitled to the following fees if as a result of the Manager’s or the nominees objections to the tax authorities, the proposed annual value is reduced resulting in property tax savings for the property: • a fee of 7.5% of the property tax savings, where the proposed reduction in annual value is $1.0 million or less; • a fee of 5.5% of the property tax savings, where the proposed reduction in annual value is more than $1.0 million but does not exceed $5.0 million; and • a fee of 5.0% of the property tax savings, where the proposed reduction in annual value is more than $5.0 million. The above mentioned fee is a lump sum fixed fee based on the property tax savings calculated on a 12-month period less the expenses incurred to obtain the property tax savings and is not payable to the Lease Manager if the Lease Manager’s objections are not successful or if the reduction in annual value results from an appeal to the valuation review board. 1.6 Fees under the strategic and asset management agreements (for the Australia properties) For strategic management services, the Group will pay Ascendas Funds Management (Australia) Pty Ltd (“AFMA”), a wholly owned subsidiary of the Manager, a strategic management fee of 1.0% per annum of the adjusted gross revenue of each property. Adjusted gross revenue means gross rental income and car park income (after deducting rent rebates and other tenant incentives amortised or otherwise) from the Australia Property, all penalties and liquidated damages from tenants (such as past-due interests, compensation for pre-termination lease) and amounts from any profit sharing agreements for sub-letting of an Australia Property and the additional property tax recovered from tenants, but shall exclude all other income earned by Ascendas REIT Australia such as (i) all other income earned from the Australia Property including, but not limited to, utilities income, car park income, sale of equipment, liquidated damages from contractors, rentals for fitting-out works for tenants and rental support and (ii) all goods and services tax collected from the tenants and licensees and rental deposits and other refundable security deposits to the extent that they are not set off against the sums due to the landlord. For asset management services, the Group will pay AFMA an asset management fee (to be mutually agreed between the Group and AFMA) under the individual asset management agreement. To the extent that the asset management fees payable to AFMA exceeds the fees charged to AFMA by third-party licensed real estate agents and results in a net positive balance for any financial year to AFMA (an “Excess”), the fees payable to AFMA under the strategic management agreement will be reduced by the Excess such that the total fee payable to AFMA under both the strategic management agreement and the asset management agreement, after taking into consideration the fees charged by the third-party licensed real estate agents, will not exceed the aggregate fee of 1.0% per annum of the adjusted gross revenue of the properties for which strategic management services and asset management services are provided. 1. General (continued) 1.5 Fees under the lease management agreement (for the Singapore properties) (continued)
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