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Notes to the financial statements
The Trustee and the Manager will deduct tax at the reduced concessionary rate of 10% from distributions
made out of A-REIT’s taxable income that is not taxed at A-REIT’s level to beneficial Unitholders who are
qualifying foreign non-individual investors. A qualifying foreign non-individual investor is one who is not
a resident of Singapore for income tax purposes and:
(i)
(ii)
Who does not have a permanent establishment in Singapore; or
Who carries on any operation in Singapore through a permanent establishment in Singapore,
where the funds used to acquire the units in A-REIT are not obtained from that operation.
The reduced concessionary tax rate of 10% will expire for distributions made after 31 March 2015 unless
this concession is extended.
(g)
Distribution policy
A-REIT’s distribution policy is to distribute 100% of its distributable income to Unitholders, other than
gains on the sale of properties that are determined by IRAS to be trading gains, and unrealised surplus on
revaluation of investment properties. Distributions are usually made on a quarterly basis at the discretion
of the Manager.
(h)
Issue expenses
Issue expenses represent expenses incurred in the issuance and placement of additional units in A-REIT.
The expenses are deducted directly against Unitholders’ funds, as stipulated in the Trust Deed.
(i)
Revenue recognition
Rental income from operating leases
Rental income receivable under operating leases is recognised on a straight-line basis over the term
of the lease, except where an alternative basis is more representative of the pattern of benefits to be
derived from the leased assets. Lease incentives granted are recognised as an integral part of total rental
income over the term of the lease.
Other income
Other income is recognised when the right to receive payment is established, after services have been
rendered.
(j)
Expenses
(i)
Property operating expenses
property operating expenses are recognised on an accrual basis. Included in property operating
expenses are fees incurred under the Property Management Agreement which are based on the
applicable formula stipulated in note 1(c).
Where A-REIT has the use of assets under operating leases, payments made under the leases are
recognised in the Statement of Total Return on a straight-line basis over the term of leases.
130 Ascendas real estate investment trust