178 CapitaLand Ascendas REIT Notes to the Financial Statements 31 December 2025 Group 2025 $’000 2024 $’000 Utilities expense, telephone charges, security deposits, M&C services and reimbursement of expenses to related companies 10,116 8,595 Divestment fees paid / payable to: - the Manager 2,200 564 - the subsidiary of the Manager 450 324 Trustee fee paid 2,824 2,777 Reimbursements and receipts on behalf to the Property Manager 1,296 870 27. Financial Ratios Group 2025 % 2024 % Expenses to weighted average net assets1 - including performance component of Manager’s management fees 0.99 0.96 - excluding performance component of Manager’s management fees 0.99 0.96 Ratio of expenses to net asset value2 5.30 5.57 Portfolio turnover rate3 4.84 0.08 1 The annualised ratio is computed in accordance with guidelines of the Investment Management Association of Singapore. The expenses used in the computation relate to expenses at the Group level, excluding property related expenses and borrowing costs. 2 The ratio is computed based on the total property expenses, including all fees and charges paid to the Trustee, the Manager and related parties for the financial year and as a percentage of net asset value as at the end of the financial year. 3 The portfolio turnover rate is calculated in accordance with the formula stated in the Code on Collective Investment Schemes. The calculation of the portfolio turnover ratio was based on the lower of the total value of purchases or sales of underlying investment properties of the Group divided by the average weighted net asset value. 28.Financial Risk Management Financial risk factors The Group’s activities expose it to market risk (including currency risk and interest rate risk), credit risk and liquidity risk. Risk management is integral to the whole business of the Group. The Manager has a system of controls in place to maintain an acceptable balance between the benefits derived from managing risks and the cost of managing those risks. The Manager also monitors the Group’s risk management process closely to ensure an appropriate balance between control and achievement of business objectives. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s strategic direction. The Audit and Risk Committee of the Manager oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the Group’s exposure to those risks. The Audit and Risk Committee’s oversight role is supported by CapitaLand Investment Limited Internal Audit Department (“CLI IA”). CLI IA undertakes both regular and ad-hoc reviews of controls and procedures, the results of which are reported to the Audit and Risk Committee. The following sections provide details regarding the Group’s and Trust’s exposure to the above-mentioned financial risks and the objectives, policies and processes for the management of these risks. 26. Significant Related Party Transactions (continued)
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