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Notes to the financial statements
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Manager and the Trustee on 17 May 2010.
1. General
Ascendas Real Estate Investment Trust (“A-REIT”) is a Singapore-domiciled unit trust constituted pursuant to the
trust deed dated 9 October 2002 between Ascendas Funds Management (S) Limited (the “Manager”) and HSBC
Institutional Trust Services (Singapore) Limited (the “Trustee”), as amended by the First Supplemental Deed
dated 16 January 2004, the Second Supplemental Deed dated 23 February 2004, the Third Supplemental Deed
dated 30 September 2004, the Fourth Supplemental Deed dated 17 November 2004, the Fifth Supplemental
Deed dated 20 April 2006 and as sanctioned by Extraordinary Resolutions obtained at a meeting of Unitholders
duly convened and held on 28 June 2007 and as restated by the First Amending and Restating Deed dated 11
June 2008, as amended by the Seventh Supplemental Deed dated 22 January 2009 and Eighth Supplemental
Deed dated 17 September 2009 (“Trust Deed”).
A-REIT was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-
ST”) on 19 November 2002 and was included under the Central Provident Fund (“CPF”) Investment Scheme on
15 October 2002.
The principal activity of A-REIT is to invest in a diverse portfolio of properties with the primary objective of
achieving an attractive level of return from rental income and long-term capital growth.
A-REIT has entered into several service agreements in relation to the management of A-REIT and its property
operations. The fees structures of these services are as follows:
(a)
Trustee’s fees
Trustee’s fees shall not exceed 0.25% per annum of the value of all the gross assets of A-REIT (“Deposited
Property”) (subject to a minimum of $10,000 per month) or such higher percentage as may be fixed by
an Extraordinary Resolution of a meeting of Unitholders. Based on the current agreement between the
Manager and the Trustee, the Trustee charges 0.03% per annum of Deposited Property. The Trustee’s
fees are payable out of the Deposited Property (being all the assets of A-REIT, as stipulated in the Trust
Deed) of A-REIT monthly in arrears. The Trustee is also entitled to reimbursement of expenses incurred
in the performance of its duties under the Trust Deed.
(b)
Management fees
The Manager is entitled to receive the following remuneration:
(i)
(ii)
a base management fee of 0.5% per annum of the Deposited Property or such higher percentage
as may be approved by an Extraordinary Resolution of a meeting of Unitholders; and
an annual performance fee of:
• 0.1% per annum of the Deposited Property, provided that the annual growth in distributions
per unit in a given financial year (calculated before accounting for the performance fee in
that financial year) exceeds 2.5%; and
• an additional 0.1% per annum of the Deposited Property, provided that the growth
in distributions per unit in a given financial year (calculated before accounting for the
performance fee in that financial year) exceeds 5.0%.
120 Ascendas real estate investment trust