A DECADE OF ENABLING BUSINESSES ANNUAL REPORT FY11/12

Transcription

1 A DECADE OF ENABLING BUSINESSES ANNUAL REPORT FY11/12

2 A DECADE OF ENABLING BUSINESSES THE GROWTH RINGS OF A-REIT Growth rings in a tree trunk signify radial growth as the tree produces new layers of wood gradually and continuously, forming a beautiful pattern over time. Each ring tells a story of challenges, steadfastness, and victory that bring about a new season of growth. At A-REIT, we have continually and vigorously grown such rings. Rings that make us sturdy through the winds of changing times, edifying our growth as a proactively evolving business.

3 A DECADE OF ENABLING BUSINESSES THE EARLY WOOD Listed on 19 November 2002, A-REIT began with a portfolio of eight properties (AUM of S$636 million). With a clear vision and a team of unified minds, A-REIT began its course of creating a sustainable vehicle for real estate investment. This fuelled the initial growth ring to emerge thereafter.

4 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/ THE RING MOMENTUM Enhancing the portfolio with quality investments, A-REIT was the first S-REIT to embark on development projects on its own balance sheet when the regulations were revised by the Monetary Authority of Singapore. Disciplined investments in quality projects, proactive asset management as well as prudent capital and risk management continued to form the core of the business, enhancing its momentum of growth.

5 A DECADE OF ENABLING BUSINESSES WIDER RINGS STRONGER PRESENCE Successfully emerging from the challenges of the global financial crisis, A-REIT continued to fortify its market leadership position, diversify its portfolio and magnify its market presence to deliver on its mission of providing predictable distributions and achieving long term capital stability for its unitholders.

6 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/ & THE GROWTH GOES ON... Through the continued focus on our three-pronged strategy, A-REIT has indeed grown rings of achievements over the years marks A-REIT s first overseas foray with investment into China with a view to serve A-REIT s growing base of local and international customers. Total number of properties has grown to 102 with AUM of S$6.6 billion as at 31 March It is with this persistent and continued focus in our strategies that A-REIT withstands the test of time to deliver paramount work so as to build more rings in the coming years.

7 A DECADE OF ENABLING BUSINESSES 7 TABLE OF CONTENTS About A-REIT A-REIT Structure A-REIT s Competitive Edge Significant Events Financial Highlights Chairman s Message Manager s Report Board of Directors The A-REIT Team The Property Manager A-REIT s Portfolio Business & Science Parks Hi-Tech Industrial Properties/Data Centres Light Industrial Properties/Flatted Factories Logistics & Distribution Centres Warehouse Retail Facilities Independent Market Study (Singapore) Independent Market Study (Beijing & Shanghai) Enhancing Relations Investor Relations Corporate Governance Financial Statements Statistics of Unitholdings Additional Information Glossary Corporate Directory Any discrepancies in the tables and charts between the listed figures and total thereof are due to rounding. Where applicable, figures and percentages are rounded to one decimal place.

8 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 8 A-REIT S MISSION TO DELIVER PREDICTABLE DISTRIBUTIONS AND ACHIEVE LONG TERM CAPITAL STABILITY FOR UNITHOLDERS

9 A DECADE OF ENABLING BUSINESSES 9 ABOUT A-REIT Ascendas Real Estate Investment Trust ( A-REIT ) is Singapore s first and largest listed business space and industrial real estate investment trust ( REIT ) with a diversified portfolio of 101 properties in Singapore and 1 property in China. The China portfolio comprises a business park property in Beijing. The focus is to cater to higher value-add industries such as IT and software companies as well as corporate headquarters of multi-national companies and large local corporations. A-REIT s portfolio comprises the following segments: BUSINESS & SCIENCE PARKS HI-TECH INDUSTRIAL PROPERTIES / DATA CENTRES LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES Suburban office, corporate headquarters as well as research and development space Vertical corporate campus with high office content combined with high specifications mixed-use industrial space Low office content combined with manufacturing space / stacked-up manufacturing space LOGISTICS & DISTRIBUTION CENTRES WAREHOUSE RETAIL FACILITIES Warehouses and distribution centres Retail frontage with warehousing facility A-REIT has a customer base of over 1,100 international and local companies from a wide range of industries and activities, including research and development, life sciences, information technology, engineering, light manufacturing, logistics service providers, electronics, telecommunications, manufacturing services and back-room office support in service industries. Ascendas Funds Management (S) Limited ( AFM ) is the manager of A-REIT (the Manager ). The Manager s objective for A-REIT s properties is to provide sustainable returns to unitholders of A-REIT ( Unitholders ) through a three-pronged strategy of: Value-adding investments comprising development as well as acquisition of income-producing properties with strong underlying real estate fundamentals; Organic portfolio growth through proactive portfolio and asset management; and Prudent capital and risk management.

10 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 10 A-REIT STRUCTURE UNITHOLDERS HSBC INSTITUTIONAL TRUST SERVICES (SINGAPORE) LIMITED (TRUSTEE) PROPERTIES Trustee s Fee Acts on behalf of Unitholders Investment in A-REIT Distributions Management Fees Management Services 18.1% Net Property Income Ownership of Assets Property Management Services Property Management Fees ASCENDAS FUNDS MANAGEMENT (S) LIMITED (A-REIT MANAGER) (Reports to AFM Board of Directors) 100% ASCENDAS GROUP 100% ASCENDAS SERVICES PTE LTD ( ASPL ) (PROPERTY MANAGER) (Reports to ASPL Board of Directors) Responsible for strategy formulation in relation to Responsible for execution of STRATEGIES CAPITAL & RISK MANAGEMENT Equity funding Debt funding Interest rate risk management Foreign exchange risk management Optimise capital structure PROACTIVE PORTFOLIO MANAGEMENT Portfolio positioning and strategies Supervise execution of asset management activities Responsible for execution of VALUE ADDING INVESTMENTS Yield accretive acquisitions Built-to-suit projects Development REVENUE MANAGEMENT Occupancy improvements Rental rates improvements EXPENSE MANAGEMENT Efficiency improvements Cost management PROPERTY MANAGEMENT Property maintenance service Site staff management OUTCOME Stability Growth CUSTOMER CARE Customer retention Customer satisfaction TOTAL RETURNS Predictable Income Capital Stability

11 A DECADE OF ENABLING BUSINESSES 11 A-REIT COMPETITIVE EDGE Stability & Sustainability A-REIT offers stable and sustainable earnings as it capitalises on its three core strategies to drive performance: prudent capital and risk management, disciplined and value-adding investment and proactive asset management. Building upon our strengths, we seek to create a competitive edge to differentiate ourselves, to fortify stability and sustainability within the portfolio. Diversity and Depth A-REIT is the largest business space and industrial REIT in Singapore with a portfolio diversified across five segments of the suburban business space and industrial property market. As a result of its disciplined investment strategy, A-REIT owns a portfolio of well-located properties with optimal specifications to cater to the diverse and intricate real estate needs of its existing and prospective customers. A good balance of longterm and short-term leases provides stability and potential for rental growth within the portfolio. Market Leading Position A-REIT is focused on the suburban business space and industrial properties with a committed sponsor, Ascendas Group which has a proven track record of more than 20 years of experience in this industry. A-REIT has established itself as the market leader in most of the segments that it operates in since its listing in 2002, growing from eight properties (asset under management ( AUM ) of S$0.6 billion) in 2002 to the current 102 properties (AUM of S$6.6 billion). Operations Platform Ascendas Services Pte Ltd, A-REIT s Property Manager, has a dedicated sales/marketing, leasing and property management team of over 130 people, all of whom possess in-depth understanding of this property sector and its customers needs. Development Capabilities A-REIT is the first Singapore REIT ( S-REIT ) to undertake development projects on its own balance sheet in 2006, enabling Unitholders to enjoy the benefits of potential development upsides. To date, A-REIT has completed 10 development projects, achieving a total revaluation gain of about S$273.5 million or 36.7% over the total development cost, demonstrating the Manager s ability to achieve valueadded investments for the portfolio through its development capabilities. Customer Focus A-REIT has a track record of customers growing with us and have consistently maintained a high customer retention ratio when leases are due for renewal. With proactive asset management and leasing strategy, A-REIT is looking forward to serve its tenants in their spatial needs in Singapore and China through the provision of quality business space. Size Advantage A-REIT accounted for 9.5% of the market capitalisation of the S-REIT sector as at 31 March In FY11/12, it accounted for about 10.3% of the trading volume for S-REITs on Singapore Exchange Securities Trading Limited ( SGX-ST ), making it one of the most liquid REITs in the Singapore market. A-REIT is amongst the five highest ranking non-constituents of the Singapore Straits Times Index by market capitalisation. A-REIT is also included in major indices including the MSCI Singapore Index, FTSE Mid Cap Index as well as ishare FTSE EPRA/ NAREIT Asia Index.

12 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 12 SIGNIFICANT EVENTS APRIL th Announced results for financial year ended 31 March 2011: Net property income grew by 6.1% year-on-year ( yoy ). Achieved revaluation gains amounting to approximately S$344.8 million 23 rd 3 Changi Business Park Crescent was awarded Green Mark (Gold) Certification by Singapore s Building & Construction Authority JUNE th Awarded business park site at Fusionopolis for S$110.0 million 28 th A-REIT s Annual General Meeting and Extraordinary General Meeting were held. All resolutions were approved JULY 2011 Mr Tan Ser Ping, CEO of AFM, was voted Asia Pacific Best CEO for Property Sector in the Institutional Investor 2011 All-Asia Executive Team survey 8 th Acquired A-REIT s 6th property in International Business Park, Nordic European Centre, for S$ million 18 th Announced results for the three months ended 30 June 2011: Net property income grew by 1.6% yoy 20 th Development of Four Acres Singapore, a built-to-suit leadership training facility, for Unilever Asia Private Limited at Nepal Hill 21 st Awarded Bronze Award for A-REIT s Annual Report FY10/11 in the REITs & Business Trusts (Best Annual Report) category at the Singapore Corporate Awards 29 th Mr David Wong retired as Chairman of the Ascendas Funds Management (S) Limited and Mr Koh Soo Keong, an Independent Director, was appointed Chairman OCTOBER rd Acquired Ascendas Z-Link (A-REIT s maiden property in Beijing, China) for RMB million (approximately S$61.8 million) 11 th Winner of FIABCI Singapore Award Industrial Category for the development of 1, 3 & 5 Changi Business Park Crescent awarded by FIABCI Singapore Awarded Merit Award in the Mature Markets - Market Disclosure Category at the 2011 APREA Best Practices Award 17 th Announced results for the six months ended 30 September 2011: Net property income grew by 4.7% yoy 27 th Awarded winner of Most Transparent Company Award 2011 in the REITs Category at the SIAS Investor Choice Award 2011 DECEMBER th Awarded Certificate of Excellence in Investor Relations awarded by IR Magazine Awards th Acquired Corporation Place and 3 Changi Business Park Vista, A-REIT s 6th property in Changi Business Park, for a total purchase consideration of S$179.0 million JANUARY th Announced results for the nine months ended 31 December 2011: Net property income grew by 7.0% yoy. Achieved 5.8% and 1.0% growth for 3QFY11/12 distribution per unit ( DPU ) and year-to-date 3QFY11/12 DPU respectively, despite a 10.8% increase in units base AUGUST th Appointment of Mr Teo Eng Cheong as Independent Director of the Board of Ascendas Funds Management (S) Limited

13 A DECADE OF ENABLING BUSINESSES 13 SIGNIFICANT EVENTS FEBRUARY rd Issued S$200.0 million 10-year medium term notes due 2022 at a coupon of 4.0% per annum MARCH th A-REIT s Extraordinary General Meeting for the proposed acquisitions of Cintech I to IV was held. All resolutions were approved 29 th Completed acquisitions of Cintech I to IV for a purchase consideration of S$183.0 million APRIL th Announced results for the financial year ended 31 March 2012: Net property income grew by 8.5% yoy. Achieved 7.0% and 2.5% growth for 4QFY11/12 DPU and FY11/12 DPU respectively, despite a 10.9% increase in units base. Achieved revaluation gains amounting to approximately S$224.5 million 23 th Issued 10 billion 12-year medium term notes due 2024 at a coupon of 2.55% per annum. The medium term notes have been swapped into Singapore Dollars upon issuance to eliminate any foreign exchange exposure MAY rd Launched private placement of 150 million new Units at an issue price of S$1.99 per new Unit (6.0% premium over net asset value ( NAV )) to raise gross proceeds of about S$298.5 million to fund committed investments. Placement was oversubscribed and saw strong participation from 65 new and existing institutional investors from Asia, Australia, Europe and the United States 15 th Runner-up for FIABCI PRIX D Excellence Awards 2012 for the development of 1, 3 & 5 Changi Business Park Crescent awarded by International Real Estate Federation (FIABCI) 24 th Senoko awarded Green Mark (Gold) Certification by Singapore s Building & Construction Authority

14 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 14 FINANCIAL HIGHLIGHTS S$503.3m GROSS REVENUE (S$m) S$368.3m NET PROPERTY INCOME (S$m) FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 S$281.7m TOTAL AMOUNT AVAILABLE FOR DISTRIBUTION (S$m) DISTRIBUTION PER UNIT (cents) (1) FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 NOTE: (1) Annualised based on actual DPU of 2.78 cents for the 133 days ended 31 March 2003

15 A DECADE OF ENABLING BUSINESSES 15 FINANCIAL HIGHLIGHTS 102 properties S$6,564.4m NUMBER OF PROPERTIES IN PORTFOLIO TOTAL ASSETS (S$m) , , , , , , , , ,020.7 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 S$1.88 NET ASSET VALUE PER UNIT (S$m) (1) FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 NOTE: (1) Before adjustment for distributable income not yet distributed.

16 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 16 FINANCIAL HIGHLIGHTS Competitive Yield Returns A-REIT yield for IPO Investors (1) 15.4% Weighted Average Industrial S-REIT Yield (2) 7.3% FTSE S-REIT Index (2) A-REIT yield as at 30 Mar 12 (3) 6.2% 6.7% FTSE ST Mid Cap Index (3) 4.8% FTSE Straits Times Index (3) 3.6% CPF (ordinary) account (4) 10 year Government bond (5) 2.5% 2.3% Bank fixed deposit (12 months) (5) Interbank overnight interest rate (5) 0.3% 0.03% NOTES : (1) Based on A-REIT s IPO price of S$0.88 per unit and DPU of cents for FY11/12 and closing price of S$2.02 per unit as at 30 Mar 2012 (2) Based on Bloomberg as at 31 Mar 2012 (3) Based on A-REIT s closing price of S$2.02 per unit as at 30 Mar 2012 and DPU of cents for FY11/12 (4) Based on interest paid on Central Provident Fund ( CPF ) ordinary account from 1 Jan to 31 Mar 12. Source: CPF Website (5) As at 31 Mar 12. Source: Singapore Government Securities website As at 31 Mar Total gross borrowings (S$m) Total Unitholders funds (S$m) 2, , , , , , , , , , , , , , Aggregate leverage (1) 36.6% 35.2% 31.6% 35.5% 38.2% 37.3% 36.7% 30.2% 28.9% 19.6% Unit price (S$) (2) Number of Units in issue (m) 2, , , , , , , , NOTES : (1) Includes total borrowings and deferred payments on acquisition of properties (2) Based on respective closing prices on the last trading day of the financial year

17 A DECADE OF ENABLING BUSINESSES 17 FINANCIAL HIGHLIGHTS Number Of Properties & Total Assets 8, , ,000.0 CAGR of 30.0% (Total Assets) Total Assets (S$m) 5, , , , , , , , , No. of properties 1, , , , , As at As at As at As at As at As at As at As at As at As at 0 31 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 12 Total Assets (S$m) No. of properties Units In Issue & Distribution Per Unit Distribution per Unit (cents) CAGR of 6.6% (Distribution per Unit) , , , , , , , , , , , ,000.0 Units in issue (m) FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 Units in issue (m) Distribution per Unit (cents)

18 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 18 CHAIRMAN S MESSAGE A-REIT TODAY IS THE LARGEST, PROBABLY STRONGEST, BUSINESS SPACE AND INDUSTRIAL REAL ESTATE INVESTMENT TRUST LISTED ON THE SGX-ST. Koh Soo Keong Chairman

19 A DECADE OF ENABLING BUSINESSES 19 CHAIRMAN S MESSAGE A Decade of Enabling Businesses It has been a decade since the listing of A-REIT on the SGX-ST in November A-REIT has grown from an initial portfolio of eight properties in Singapore (AUM of about S$0.6 billion) at IPO to a portfolio of 102 properties (AUM of about S$6.6 billion) as at 31 March 2012, representing a compounded annual growth rate ( CAGR ) of approximately 30.0% in AUM over this period. A-REIT today is the largest, probably strongest, business space and industrial REIT listed on the SGX-ST. This achievement is especially commendable, as in the last decade, we have seen major challenges such as the SARS epidemic in 2003 and the global financial crisis in But disciplined execution of our three core strategies of prudent capital and risk management, disciplined investments and proactive asset management paved the way to A-REIT s sustained leading position in the S-REIT market. On behalf of the Board, I am pleased to present the results for the financial year ended 31 March Enabling Businesses A-REIT s customer base has grown from 321 companies in 2002 to more than 1,100 companies across 20 industries as at 31 March The ability to attract, retain and grow our customer base lies in A-REIT s offering of a wide variety of business and industrial space across five segments of Business & Science Parks, Hi-Tech Industrial, Light Industrial, Logistics & Distribution Centres and Warehouse Retail Facilities as well as our constant strive to deepen our understanding of the spatial and operating requirements of our target customer community. Enabled by our Customers Customers are the lynchpin of our business. It is with their interest in mind that we continuously review and refine our processes and customer service programmes to stay ahead of competition. With the support of our customers, A-REIT s same-store portfolio occupancy stands at a healthy 96.4% compared to 96.0% a year ago while occupancy for the multitenanted buildings improved to 92.8% from 92.1% in the prior year. This compares well with the portfolio occupancy rate of 82.5% at IPO. A-REIT also maintains a healthy profile of long and short term leases (62% and 38% by portfolio value respectively). With this, it is able to capitalise on the current state of the property market and achieve positive rental reversion on the short term leases upon their renewal, while the long term leases provide stability and predictability in earnings for the portfolio (with about 32.2% of such long term leases having pre-agreed rental escalation pegged to CPI). Weighted average lease term to expiry ( WALE ) remains high at 4.0 years. Investment Enabled From eight properties at a total AUM of S$0.6 billion to 102 properties at a total AUM of S$6.6 billion in 10 years this was achieved through disciplined, focused and consistent investment activities: Value-adding acquisitions of properties with good fundamentals via sale-and-leasebacks (since 2003) and multi-tenanted properties (since 2005) Excluding the IPO properties, development projects completed over the years and new acquisitions in FY11/12 (which are recorded at valuation on date of acquisition), total investments made since IPO has been S$3.0 billion versus market valuation as at 31 March 2012 of S$3.8 billion, representing a total unrealised capital gains of S$0.7 billion or 24.6% appreciation on purchase price. Asset enhancement exercises for selected properties within A-REIT s portfolio were undertaken to further enhance marketability and / or maximise the plot ratio of the property to bring about higher value-add to the portfolio. Complemented with Built-to-Suit ( BTS ) development (since 2006) A-REIT was the first S-REIT to undertake development projects on its own balance sheet in 2006, enabling Unitholders to enjoy the benefits of potential development upside. To date, 10 development projects have been completed at a total development cost of S$745.2 million and these have achieved a total revaluation gain of about S$273.5 million or 36.7% over total development cost. Value-adding investments in China (since 2011) In 2011, A-REIT announced its first overseas investment in China with the forward purchase of a business space property in Shanghai. With this, the Manager can serve

20 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 20 CHAIRMAN S MESSAGE A-REIT s customers in their real estate needs in Singapore and China as well as provide Unitholders access to real estate markets where they could not access efficiently on their own. The Manager will continue to seek yield accretive investment opportunities and with potential capital appreciation. A-REIT s portfolio will remain predominantly Singapore-based assets in the foreseeable future. Selective Government Land Sale ( GLS ) Development (since 2011) To widen its product offerings and enhance its presence in strategic micro-markets to serve a diverse customer base, A-REIT participated in selective GLS tenders during FY11/12. In FY11/12, A-REIT committed a total investment amount of about S$946.4 million comprising five acquisitions of income producing properties, three development projects (two builtto-suit and a green field development at Fusionopolis) as well as five asset enhancement projects. FY11/12 also marked A-REIT s maiden foray into Beijing, China with the purchase of Ascendas Z-Link, a business park property in Zhongguancun Software Park. The property is 100% occupied by prominent tenants such as Baidu, Inc.com and Raisecom Technology Co., Ltd, further enhancing A-REIT s customers base. Capital Market Enabled A-REIT, like most S-REITs, distributes 100% of its amount available for distribution. Its growth, therefore, has to be funded partly by equity. This requires the support of its unitholders who have the final say on whether the proposed growth plan is to be supported or not. Proactive and prudent capital management has also enabled us to achieve a diversified source of funding as well as a fine balance between the cost and tenure of debt. A-REIT issued two tranches of notes as part of the Multicurrency Medium Term Note Programme established in March A S$200 million 10-year fixed rate notes was issued in February 2012 and a 10 billion 12-year fixed rate notes was issued in April A private placement of 150 million units was launched in May 2012 to raise approximately S$298.5 million to fund committed investments. The issue price of S$1.99 represents a premium of 6.0% over A-REIT s NAV per Unit of about S$1.878 as at 31 March 2012.

21 A DECADE OF ENABLING BUSINESSES 21 CHAIRMAN S MESSAGE Consequently, A-REIT s aggregate leverage decreased from 36.6% to 32.1% immediately after the private placement with a weighted average cost of debt of 3.34%. The weighted average term of debt was further extended to 4.6 years compared to 3.4 years as at 31 March 2012 due to repayment of the shortterm revolving credit facilities pending the deployment of the proceeds for their intended usage. Since IPO, A-REIT has completed ten secondary equity fund raising exercises. Together with revaluation gains on properties acquired and developed over the years, the NAV of A-REIT increased to S$1.878 per unit as at 31 March 2012 compared to S$0.89 per unit at IPO, notwithstanding that an additional 1.5 billion units were issued during this period. Market capitalisation of A-REIT has grown from about S$0.5 billion at IPO to S$4.2 billion as at 31 March A-REIT remains the largest business space and industrial REIT listed on the SGX-ST. It accounts for 9.5% of the market capitalisation of the S-REIT sector. In FY11/12, it accounted for about 10.3% of the trading volume of S-REITs on the SGX-ST, making it one of the most liquid REITs in the Singapore market. A-REIT is also included in major indices, namely: the MSCI Singapore Index, FTSE Mid Cap Index as well as ishare FTSE EPRA/NAREIT Asia Index. A-REIT s corporate family rating of A3 is the highest corporate rating amongst industrial S-REITs. Looking Ahead The US economy has shown tentative signs of recovery, but the world is still concerned with the sovereign debt problems of certain European countries, rising inflation and the possibility of significant slowdown in some major developing countries. Singapore Government has projected a GDP growth of between 1% to 3% for We will persist in our focus on the core fundamentals of our business. In the medium to long term, the Manager remains committed to pursuing quality and sustainable yield accretive investments. In addition, the Manager will continue to review its existing portfolio to ensure relevancy and suitability of the properties to A-REIT. The Manager will continue with its tested strategies to further consolidate A-REIT s market leadership position, its portfolio and market presence to deliver yet another year of stable returns. In Appreciation A-REIT s success would not have been possible without the concerted effort of many parties. First, I would like to thank my fellow Board members for their invaluable advice and contributions throughout the year. We are especially grateful to my predecessor, Mr David Wong who had been chairman of the Board since April 2008 until his retirement from the Board in July On behalf of the Board and Management, I would like to thank him for his significant contribution to A-REIT during his stewardship. His invaluable counsel and wisdom shared over the past years has helped to steer A-REIT into becoming what it is today - the largest business space and industrial REIT in Singapore. We are also very grateful to our tenants and business partners for their unwavering support, which has been the basis of the success of A-REIT over all these years. On behalf of all Unitholders, I would also like to extend our sincere appreciation to the hardworking team at AFM, the Manager of A-REIT, for their dedication and discipline in pursuing the core strategies that underlie the success of A-REIT. Last but not least, I would like to thank you, our Unitholders, for your trust and confidence in us, and for your investment in A-REIT. With unwavering focus on our enduring values and core strategies, I am confident that we will be able to capitalise on the opportunities that are available in a challenging business environment and continue to deliver another year of steady performance. Koh Soo Keong Chairman 28 May 2012

22 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 22 主席献词 十年不懈, 服务企业客户群腾飞瑞资自 2002 年 11 月在新加坡证劵交易所 (SGX-ST) 上市以来已经走过了十个年头 腾飞瑞资从首次公开募股 (IPO) 时的八栋房产 ( 资产总额约 6 亿 3600 万新元 ) 不断发展壮大, 截止至 2012 年 3 月 31 日已拥有 102 栋房产的投资组合 ( 资产总额约 65 亿 6000 万新元 ) 在这个过程中, 资产总额的复合年增长率 (C A G R ) 约为 %. 今天的腾飞瑞资已然是新加坡证劵交易所最大 也很可能是最强的商务空间及工业房产投资信托基金, 取得这样的成绩着实可喜 在过去的十年里, 我们经历了重大挑战, 如 2003 年的 SARS,2008 年的全球金融危机 但是我们凭借审慎的资本和风险管理 自律的投资以及积极的资产管理这三个核心战略铸就了今天的腾飞瑞资, 使其成为新加坡房产投资信托市场的领头羊 本人谨代表董事会呈交腾飞瑞资第十财政年 ( 截止至 2012 年 3 月 31 日 ) 的年度报告 致力服务企业客户群腾飞瑞资的客户群已从 2002 年的 321 家公司增长到 1100 家公司, 涵盖 20 多个行业 我们能够吸引并留住客户, 保持客户群不断增长, 是因为腾飞瑞资为客户提供了范围广泛的商务和工业房产, 包括了商务园和科技园 高新科技产业 轻工业 物流和配送中心, 以及大卖场设施等五个类别 同时我们还不断进取, 进一步加深对于目标客户群体的空间与运营要求的理解, 为客户提供更优质的 更灵活的空间解决方案 客户成就了腾飞瑞资客户是我们企业发展的关键 从客户利益出发, 我们不断审视与改进企业的运作以及对客户的服务质量, 以保证领先于竞争对手 有了客户的支持, 腾飞瑞资的整体物业出租率由去年的 96.0% 上升至 96.4%; 同时多租户建筑的出租率从去年的 92.1% 增长到 92.8%, 与上市时的 82.5% 的出租率相比甚佳 腾飞瑞资还保持着长期与短期租赁项目的合理组合配套 ( 各自占资产组合价值的比例分别为 62% 和 38%) 借助这种组合模式, 腾飞瑞资能在市势上扬时通过对短期租赁户在续租时提高租金, 增加组合的回报率, 同时长期租赁项目则确保稳定和可预测的资产组合收益 ( 大约 32.2% 的长期租赁项目的租金升幅是与消费价格指数挂钩的 ) 截止至 2012 年 3 月 31 日, 资产组合的加权平均租赁期限是 4 年, 继续保持在较高的水平 通过投资, 自我优化十年内, 资产总额从 8 栋房产的 6 亿 3600 万新元增长到 102 栋房产的 65 亿 6000 万新元 这样的成就是通过自律 目标明确 坚持不懈的投资行为取得的 : 增值的收购活动 : 收购房产并回租给出让方 ( 自 2003 年起 ) 收购多租户楼盘 ( 自 年起 ) 除去上市时的房产, 多年来完成的自建项目以及 2011/12 财政年度新的收购 ( 以收购日评估价记录 ), 上市后的总投资为 30 亿新元,2012 年 3 月 31 日这些投资的市值为 38 亿新元, 未实现的资本增值为 7 亿 4300 万新元或投资成本的 24.6% 同时, 腾飞瑞资也在现有的房产中选择适合的物业, 进行翻新 增建或改建, 进一步加强其适销性和 / 或扩大容积率, 以实现更高的价值增长 量身定制的开发项目 ( 自 2006 年起 ) 从 2006 年开始, 腾飞瑞资成为首个自行开发项目的新加坡房产投资信托基金, 从而让单位持有人能够从中分享开发项目的增值潜能 时至今日, 已完成了 10 个自建项目, 开发总成本为 7 亿 4520 万新元, 总升值收益为 2 亿 7350 万或总开发成本的 36.7% 中国的投资机会 ( 自 年起 ) 腾飞瑞资的首次海外投资项目是在中国上海预购一项商务园房产 目的是为了让腾飞瑞资可以更好地为它的客户群服务, 以满足客户在新加坡和海外的空间需求 同时, 投资中国也可为不能有效直接投资中国的信托单位持有者提供一个投资中国房产市场的机会 基金经理将继续寻找能增值的投资和潜在资本增值的投资机会 新加坡房产在投资组合中将继续保持主导地位 开发新建项目 ; 选择性的投资于政府出让土地项目 ( 自 2011 起 ) 为了提供更优越的项目 拓宽经营的物业种类 以及加强在战略微观市场的份额, 腾飞瑞资在 2011/12 的财政年度选择性的参与了政府出让土地的招标. 在 2011/12 财政年度, 腾飞瑞资的总投资额为 9 亿 4640 万新元, 包括 5 项收益型物业的收购 三项开发项目 ( 两个量身定制项目, 以及在启汇园的自建项目 ) 以及 5 项物业增值项目 2011/12 财政年度, 腾飞瑞资首次进入北京市场, 购买了中关村软件园内的 Ascendas Z-Link 该物业已 100% 出租, 租户为百度 瑞斯康达等大型信息技术企业, 这进一步扩大了腾飞瑞资的客户群

23 A DECADE OF ENABLING BUSINESSES 23 主席献词 成就了腾飞瑞资腾飞瑞资, 和多数的新加坡房产投资信托基金一样, 将 100% 的收益都分发给投资者 因此, 其业务成长所需要的资金, 有部分必须由股本投资组成 这就需要单位持有者的支持 因为, 他们对基金经理所提出的发展计划能否通过拥有最终发言权 审慎的资本管理也使得基金来源多元化, 形成了良好的债务成本和债务期限的平衡 2011/12 财政年度发行了两项债券, 包括 2012 年 2 月发行了价值 2 亿新元的 10 年固定利率债券, 和 2012 年 4 月发行了 100 亿日元的 12 年固定利率债券 这两项债券, 皆属于 2009 年 3 月成立的多种货币中期票据计划的一部分 此外, 为了筹集 2 亿 9850 万新元的资金支持新的投资项目, 腾飞瑞资于 2012 年 5 月发行 1 亿 5 千万新单位, 发行价为每股 1.99 新元, 较腾飞瑞资在 2012 年 3 月 31 日每单位 元的净资产价值高出 6.0% 自上市以来, 腾飞瑞资已完成 10 项股本集资活动 加上多年收购和开发的房地产的升值收益, 腾飞瑞资的单位净值由上市时的每单位 0.89 新元增长至 2012 年 3 月 31 日的每股 新元, 虽然期间还增发了 15 亿个新单位 增发后, 腾飞瑞资的总杠杆率从 36.6% 下降到 32.1%, 加权平均债务成本为 3.34% 由于部分资金用于偿还短期循环借贷, 加权平均负债期限从去年的 3.4 年增加到 4.6 年 展望未来美国经济虽有初步复苏的迹象, 但全球经济仍然受到欧洲国家外债问题, 居高不下的通货膨胀, 和一些主要发展中国家的经济增长速度放缓所带来的困扰 新加坡政府预计 2012 年新加坡的国内生产总值增长幅度将保持在 1% 到 3% 之间 我们将一如既往地把工作重点放在我们核心业务方面 从中期至长期的发展来看, 经理人始终致力于追求高质量和可持续性的增值投资 另外, 基金经理也会继续审视企业现有的房地产投资组合以确保其相关性, 使房产能适应基金发展 经理人将继续实行其久经考验的核心战略, 用以加强并巩固腾飞瑞资的市场领先地位, 使资产组合更加多元化, 提高市场份额, 从而在新的财政年中实现基金的稳定收益 致谢腾飞瑞资的成功离不开多方的齐心协力 首先我要向各位董事致谢, 感谢大家在一年当中为基金提供的宝贵建议和各自所做的贡献 其中, 要特别感谢前任主席, 黄昌福先生 自 2008 年 4 月以来他一直担任董事会主席直到 2011 年 7 月退休 多年来, 他宝贵的建议和卓越的智慧带领腾飞瑞资前进, 成为今天新加坡最大的商务空间及工业房产投资信托基金 我谨代表董事会和管理层, 感谢他在任职期间对腾飞瑞资的重大贡献 此外, 还要特别感谢我们的租户和商务合作伙伴, 感谢他们对腾飞瑞资坚定不移的支持 这些年来正是有了他们的支持才有腾飞瑞资的成功 腾飞瑞资的市值已从上市时的 5 亿新元增长到 2012 年 3 月 31 日的 42 亿新元 腾飞瑞资已然是新加坡证券交易所最大的商务空间及工业房产投资信托基金, 约占该行业市场总值的 9.5% 在 2011/12 财政年度, 腾飞瑞资占新加坡证交所新加坡房产投资信托基金的股票交易量的比例大约为 10.3%, 这使其成为新加坡股票市场上股权流通率最高的房产投资信托基金之一 我还要代表所有单位持有人向在 AFM( 基金经理公司 ) 辛勤工作的团队和管理层表达我们真挚的谢意, 他们在实施基金核心战略过程中所表现出的奉献和自律精神为腾飞瑞资的成功奠定了基础 最后, 也是最重要的, 我要感谢你们, 我们尊敬的单位持有人, 感谢您对我们的信任和信心以及对腾飞瑞资所做的投资 腾飞瑞资还被列入各大主要市场指数中, 包括摩根斯坦利新加坡指数 富时中型股指数, 安硕富时亚洲指数 此外, 腾飞瑞资企业评级为 A3, 是新加坡工业房产类的投资信托基金中最高的企业评级 我们会毫不动摇地秉持基金持久的价值信念, 将工作重点放在基金的核心战略上 由此我可以满怀信心地说我们有能力在一个充满挑战的经济环境中抓住发展机遇, 并继续在新的一年中创造稳健的业绩 許思强主席 2012 年 5 月 28 日

24 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 24 MANAGER S REPORT A Decade Of Sustained Growth Total number of properties grew to 102 properties (as at 31 March 2012) from eight properties at IPO (22 November 2002). AUM increased from S$0.6 billion to S$6.6 billion in the same period representing a CAGR of 30.0% p.a. Total amount available for distribution increased by CAGR of 38.2% to S$281.7 million DPU increased by CAGR of 6.6% despite a 3-fold increase in the number of units issued NAV grew from S$0.89 per Unit to S$1.878 per Unit as at 31 March 2012 The above were achieved with a stable aggregate leverage (average 33% since listing) 2012 is the 10th anniversary of A-REIT s listing on the SGX-ST. The Manager is pleased to report the highlights for FY11/12 and to reminisce over some significant milestones of the journey travelled in the last decade:

25 A DECADE OF ENABLING BUSINESSES 25 MANAGER S REPORT Total amount available for distribution 120 CAGR of 38.2% (Total amount available for distribution) No. of properties % % 38.2% 35.5% 35.2% 36.6% 28.9% 30.2% % 19.6% FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/ Total amount available for distribution (S$m) No. of properties Total amount available for distribution (S$m) Aggregate Leverage Sustained Financial Performance FY10/11 % change over FY10/11 FY11/12 % change over FY02/03 FY02/03 Gross Revenue (S$m) % ,107.5% 22.8 Net Property Income (S$m) % ,132.1% 16.5 Amount Available for Distribution (S$m) % ,753.3% 15.2 Total Assets (S$bn) % 6.6 1,000.0% 0.6 NAV per Unit (S$) % % 0.9

26 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 26 MANAGER S REPORT Prudent Capital Management - Five diversified sources of funding versus a single source of debt in FY02/03 - Improved capital structure efficiency - aggregate leverage of 36.6% as at 31 March 2012 versus 19.6% as at 31 March Weighted average term of debt of 4.6 years versus less than three years in FY02/03 FY11/12: - Aggregate leverage reduced to 32.1% immediately after private placement on 3 May 2012, pending deployment of fund for intended usage % of interest rate risk hedged for the next 4.2 years - A3 corporate family rating by Moody s. Highest rating amongst industrial S-REITs Disciplined Investment Pioneered sale-and-leaseback transactions, built-to-suit development projects and leveraged on development capabilities to value-add to portfolio: - Total investments of S$3.62 billion made since IPO; unrealised capital gains of S$890 million or 24.5% on purchase price were recorded FY11/12: - S$545.4 million in acquisitions of income producing properties - S$248.2 million in development projects - S$152.8 million in asset enhancement projects Proactive Asset Management - Well diversified portfolio over five segments of the business space and industrial property market. An increase from two segments (Business & Science Park and Flatted Factories) in FY02/03 - Occupancy for multi-tenanted properties and portfolio of 92.8% and 96.4% respectively and a WALE of 4 years as at 31 March At IPO, occupancy rate was 82.5% and WALE of 2.34 years FY11/12 Accolades: 1, 3 & 5 Changi Business Park Crescent was awarded Runner-up for FIABCI PRIX D Excellence Awards 2012 by the International Real Estate Federation (FIABCI) A-REIT was awarded the Winner of the Most Transparent Company Award 2011 in the REITs category at the SIAS Investor Choice Awards 2011 A-REIT s FY10/11 Annual Report was awarded Bronze in the REITs & Business Trusts Category at the Singapore Corporate Award A-REIT was awarded Certificate of Excellence in Investor Relations awarded by IR Magazine Awards 2011 A-REIT was awarded Merit in the Mature Markets - Market Disclosure Category at the 2011 APREA Best Practices Award 5 Changi Business Park Crescent and Senoko were awarded Green Mark (Gold) Certification by Singapore s Building & Construction Authority 1, 3 & 5 Changi Business Park Crescent was named the Winner in the Industrial Category of FIABCI Singapore Property Awards 2011 Mr Tan Ser Ping, CEO of AFM, was voted Asia Pacific Best CEO for Property Sector in the Institutional Investor 2011 All-Asia Executive Team survey FY11/12: - Positive rental reversion of between 5.2% and 15.7% across all segments of portfolio - On a same-store basis, occupancy rate for A-REIT s multi-tenanted portfolio grew by 0.7% point to 92.8% yoy versus 92.1% while portfolio occupancy increased to 96.4% yoy from 96.0%

27 A DECADE OF ENABLING BUSINESSES 27 MANAGER S REPORT A Decade Of Enabling Businesses FY11/12 has been a fruitful year for A-REIT. A-REIT maintains its market leadership position in the Singapore business space and industrial REIT sector with total assets and market capitalisation of S$6.6 billion and S$4.2 billion respectively. This represents a CAGR of 30.0% in AUM since its listing 10 years ago on the SGX-ST. Gross revenue crossed the half-billion dollar mark, increasing by 12.4% yoy to S$503.3 million. This was contributed largely by the completion of development projects and acquisitions during the financial year. However, this increase was offset by higher operating expenses caused mainly by higher electricity charges and land rent, resulting in a net property income increase of 8.5%. To help defray the escalation in operating expenses, service charge was increased by 8.0% with effect from 1 July 2011 but gradually implemented over the course of 12 months. A-REIT s amount available for distribution grew 13.6% in FY11/12 while DPU increased 2.5% to cents for the financial year despite an 10.9% increase in its unit base. Since its listing in 2002, A-REIT has achieved a CAGR of 6.6% in DPU despite a 3-fold increase in the number of units in issue. Occupancy rate improved from a year ago, on a same-store basis, to 92.8% and 96.4% for its multi-tenanted properties and portfolio respectively. Positive rental reversions of between 5.2% and 15.7% were achieved across all segments, reflecting the resilience and strong underlying fundamentals of the portfolio. These are results of the Manager s proactive asset management. Portfolio organic growth of 4.7% was achieved in FY11/12. Business & Science Parks Hi-Tech Industrial / Data Centres Light Industrial / Flatted Factories Logistics & Distribution Centres Warehouse Retail Facilities S$m FY11/12 FY10/11 FY11/12 FY10/11 FY11/12 FY10/11 FY11/12 FY10/11 FY11/12 FY10/11 Gross Revenue Operating Expenses Net Property Income Breakdown of Net Property Income : Investments made in FY11/12 Properties held > 1 year Organic growth (%) 9.6% 3.4% 0.5% 3.4% 3.6%

28 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 28 MANAGER S REPORT Enabling Growth: Prudent & Proactive Capital Management As at 31 March 2012, A-REIT has an aggregate leverage of 36.6%, despite making nearly S$1.0 billion worth of new investments during the financial year. A-REIT s Debt Maturity Profile (After Issuance Of 12-Year Notes In April 2012 And Private Placement In May 2012) A-REIT issued two tranches of notes under its S$1 billion Multicurrency Medium Term Note Programme (the Programme ) established by A-REIT on 20 March A S$200.0 million 4.0% notes due 2022 was issued in February 2012 while a tranche of 10.0 billion 2.55% per annum notes due 2024 was issued in April The Japanese Yen notes have been immediately swapped into Singapore Dollars upon issuance to eliminate any foreign exchange exposure for A-REIT resulting in gross proceeds of approximately S$153.7 million. Amount of debt (S$m) S$450 S$400 S$350 S$300 S$250 S$200 S$150 S$132 S$395 S$300 S$104 S$375 On 3 May 2012, the Manager issued 150 million new units to raise approximately S$298.5 million to fund committed investments. The issue price of S$1.99 per Unit represents a premium of 6.0% over A-REIT s net asset value per Unit of about S$1.878 as at 31 March The fund raising exercise was oversubscribed and saw strong participation from 65 new and existing institutional investors from Asia, Australia, Europe and the United States. Consequently, A-REIT s aggregate leverage decreased from 36.6% to 32.1% immediately after the private placement pending the deployment of proceed for their intended use. A-REIT s weighted average term of debt was further extended to 4.6 years compared to 3.4 years as at 31 March 2012 with a average cost of debt of 3.34%. S$100 S$50 0 S$19 S$ S$ S$ Term Loan Facility (RMB denominated) Committed revolving Credit Facility Exchangeable Collateralised Securities Medium Term Note (JPY denominated) Medium Term Note Commercial Mortgage Backed Securities Term Loan Facility S$ S$ S$ Debt Profile After equity fund raising exercise in May 2012 After notes issuance in April 2012 As at 31 Mar 12 As at 31 Mar 11 Aggregate leverage 32.1% 36.6% 35.2% Total debt (S$m) (1) 2, , ,893.0 Fixed rate debt as a % of total debt 70.9% 62.2% 55.8% 71.3% Weighted average all-in funding cost (2) 3.34% 3.04% 2.83% 3.46% Weighted average term of debt (years) Weighted average term of fixed rated debt (years) Interest cover ratio (times) Unencumbered properties as % of total investment properties 58.6% 55.3% Notes: (1) Excludes deferred payments of purchase price of properties (2) Including annual maintenance costs and amortisation of establishment cost of loans

29 A DECADE OF ENABLING BUSINESSES 29 MANAGER S REPORT Diversified Sources Of Funding 1% 5% 20% 31% 14% Term Loan Facility (RMB denominated) Committed revolving Credit Facility Exchangeable Collateralised Securities Medium Term Note (JPY denominated) Medium Term Note Commercial Mortgage Backed Securities Term Loan Facility 1% 5% 14% 14% 15% 20% 31% 14% 15% Enabling Customer Choice: Disciplined & Yield-Accretive Investments Disciplined and value-adding investment in properties with good fundamentals is an important component of our success. We have relied on a wide variety of ways in executing our investment strategy: acquisitions of income-producing properties, selective development of high-quality properties as well as asset enhancements to existing properties to add value to the portfolio. A-REIT s portfolio has grown from eight properties (total assets of S$636 million) in FY02/03 to 102 properties with a total asset of about S$6.6 billion on 31 March In FY11/12, about S$946.4 million of investments were committed: Total Investments in FY11/12 Value (S$m) Acquisition of income producing properties Development projects Asset enhancement projects Total Investment in FY11/ Investment committed in prior FY - Forward Purchase of a Business Park Property at Jinqiao, Shanghai, China Investment amount yet to be funded It is a mandatory requirement to revalue the portfolio once a year. On 31 March 2012, the portfolio recorded a net appreciation of S$224.5 million over the latest book value on revaluation of its investment properties and investment properties under development. The portfolio weighted average capitalisation rate compressed marginally to 6.6% from 6.7% a year ago.

30 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 30 MANAGER S REPORT A wider range of properties to serve our customers We continue to seek out income-producing assets with good fundamentals and locations that complement A-REIT s existing portfolio. During the financial year, the Manager completed the acquisition of seven properties, including A-REIT s maiden acquisition in Beijing, China. These acquisitions are: Segment Property Purchase Price (S$m) Business Park Nordic European Centre Completed in July 2011 Description: Located within the International Business Park, Nordic European Centre is a 7-storey business park building easily accessible via major expressways such as the Ayer Rajah Expressway as well as the Pan-Island Expressway. It is located within the Jurong Lake District masterplan area which will be developed into a major commercial and leisure hub. This is A-REIT s sixth business park property in the International Business Park and is 82.4% occupied as at 31 March Business Park 3 Changi Business Park Vista 80.0 Completed in December 2011 Description: Easily accessible via the Pan-Island Expressway and the East Coast Parkway, 3 Changi Business Park Vista is A-REIT s sixth property within the Changi Business Park, one of the two business parks in Singapore. It is a 6-storey building with a gross floor area and net lettable area of 18,388 sqm and 15,261 sqm respectively. The occupancy is about 95.0% as at 31 March Science Park Cintech I to IV Completed in March 2012 Description: Located within Singapore Science Park I, Cintech I to IV are a portfolio of four properties sited on three land titles. These properties are easily accessible via the Ayer Rajah Expressway and conveniently connected to the central business district in Singapore, being approximately a 15-minute drive away. The portfolio of properties has an occupancy rate of about 94.8% as at 31 March 2012.

31 A DECADE OF ENABLING BUSINESSES 31 MANAGER S REPORT Segment Property Purchase Price (S$m) Hi-Tech Industrial Corporation Place 99.0 Completed in December 2011 Description: Easily accessible via the Ayer Rajah Expressway, Corporation Place is located at the junction of Jalan Ahmad Ibrahim and in the established Jurong industrial estate. It is situated at the fringe of the proposed Jurong Lake District and within a 5-minutes drive from Jurong Regional Centre. It is a 7-storey high-specification industrial building with a gross floor area of 76,185 sqm and a net lettable area of 57,645 sqm and is 79.6% occupied as at 31 March Business Park (China) Ascendas Z-Link 61.8 Completed in October 2011 Description: Located in Z-Park, Zhongguancun ( 中关村 ), Ascendas Z-Link is a 3-storey multitenanted business park building with four inter-connecting blocks and one level basement car park. It is currently 100.0% occupied by prominent tenants such as Baidu, Inc. and Raisecom Technology Co., as its major tenants. A-REIT has committed to a forward purchase of a business park property in Shanghai, China for a purchase consideration of approximately S$117.6 million. Sited at No. 200 Jinsu Road, Jinqiao Export Processing Zone ( JEPZ ), Pudong New District, Shanghai, China, on a land area of 31,952 sqm, the property is expected to have gross floor area of approximately 79,880 sqm. Based on market studies and local government statistics, demand for business space within the JEPZ has been strong. We intend to market the property through its network of existing tenants as well as leveraging on Ascendas operating platform in China. Completion of the transaction is expected in 1H We believe that A-REIT s investment in China will have the following benefits to A-REIT s Unitholders: 2. Seeking yield accretive investment opportunities with potential capital appreciation upside; 3. Providing access to real estate markets where Unitholders could not access efficiently on their own; and 4. Providing Unitholders with a geographically diversified portfolio and an opportunity to ride on growth in the China market. A-REIT s portfolio will remain predominantly Singapore-based assets in the foreseeable future. For investments in China, the initial focus will be on major tier one cities such as Shanghai as well as Beijing and in the segments of Business & Science Parks as well as Warehouse Retail Facilities. 1. Allowing A-REIT to support its growing base of over 1,100 customers to serve their real estate needs through the provision of one-stop real estate services to A-REIT s customers in Singapore and in China;

32 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 32 MANAGER S REPORT Cost Efficient Option for Larger Users A-REIT is the first REIT in Singapore to undertake development on its own balance sheet. To-date, it has completed 10 developments, achieving a net revaluation gain of about S$273.5 million or about 36.7% over development cost. Leveraging on our development capabilities and expertise, A-REIT has completed a built-to-suit development for FedEx Singapore and embarked on another two developments during the financial year. These developments are fully owned by A-REIT. 1. Completed Development: FedEx Singapore Regional Hub at 90 Alps Avenue To further enhance A-REIT s varied space propositions and increase our presence in the one-north region, A-REIT tendered and was awarded a land parcel at Fusionopolis (one of the three hubs in the one-north region), for S$110.0 million in June The site is currently under development into a suburban business space facility comprising 60% business park space and 40% office space with a total gross floor area of about 25,510 sqm designed to cater to tenants in the Infocomm Technology ( ICT ) and media industries as well as research and development activities in the Physical Sciences and Engineering sectors. Upon completion expected in 3Q 2013, this development will be A-REIT s third property in the one-north region. 3. Development in progress: Unilever Four Acres Singapore Located in the eastern part of Singapore and in close proximity to the Airport Logistics Park of Singapore, the development is a part 1-storey, part 2-storey air cargo express logistics facility. The Manager completed the development in January 2012 and achieved a net revaluation gain of about 28.0% over its development cost of S$37.9 million. The facility has been pre-committed by FedEx Singapore for a period of 10 years with annual rental escalation and an option to renew for another two terms of five years each. 2. Development of business space at Fusionopolis Development in progress Artist impression The Manager embarked on the development of Unilever Four Acres Singapore in July 2011, a global leadership development centre at Nepal Hill, within the one-north region at an estimated development cost of S$32.3 million. This development will be the Unilever s second in the world and first in Asia and is expected to train up to 900 people a year. Upon completion expected in 1Q 2013, the facility will have a total gross floor area of about 9,180 sqm comprising a three-storey training block, a one-storey business and recreational centre and 10 black-and-white conservation bungalows. Maximising returns Entering into A-REIT s 10th year of listing, we continue to pursue ways to rejuvenate A-REIT s existing portfolio to further enhance the marketability and/or maximise the plot ratio to capitalise on the full potential of A-REIT s properties when the opportunity arises. During the financial year, we have embarked on the following asset enhancement initiatives: Artist impression of Fusionopolis development

33 A DECADE OF ENABLING BUSINESSES 33 MANAGER S REPORT 1. Installation of internal courtyard at Techview (Completed in May 2011) 3. Re-development of Senoko at 1 Senoko Avenue (Completed in Feb 2012) To enhance the attractiveness and value of the property, the Manager reconfigured selected floors within Techview through the creation of an internal courtyard on the upper levels of the building at a cost of S$4.3 million. This enhancement brought natural light into the premises and thus enhances the marketability of the space. When the planned Downtown Line ( DTL3 ) Mass Rapid Transit ( MRT ) station is operational by 2017, Techview will have a station exit within its compound. 2. Repositioning 10 Toh Guan Road for higher value use (Phase 1 completed in Jan 2012) The Manager has completed the re-development of Senoko, creating an additional gross floor area of 34,519 sqm through the maximisation of plot ratio from 0.6 times to 2.5 times. Positioned as a food hub for the food & beverages industry to address the relative shortage of suitable food processing space in Singapore, the facility is currently 27.8% occupied with another 33.3% of space under different stages of negotiation. In addition, the leasing pipeline has a list of enquiries for 4,719 sqm (10.6%) of space. The Manager is optimistic of its leasing prospects. 4. Maximisation of plot ratio for 9 Changi South Lane Asset enhancement in progress Artist impression A two-phase asset enhancement initiative, Phase 1 of the asset enhancement at 10 Toh Guan Road has been completed within budget and on schedule with 57% of the space pre-committed to a leading lifestyle company. With the removal of the existing Automated Storage & Retrieval System ( ASRS ), the property now has 8,072 sqm of showroom space as well as more parking spaces which enhanced the marketability of the property. Based on this pre-commitment, the expected return on the Phase 1 investment is about 12%. Phase 2 of the asset enhancement exercise is in progress and is expected to cost S$13.5 million. The works will comprise the creation of high specifications industrial space as well as enhancement of the external façade of the property. Asset enhancement in progress The Manager commenced an asset enhancement project at 9 Changi South Street 3 to maximise its plot ratio from 1.6 times to 1.98 times, creating an additional net lettable area of about 5,200 sqm. The project is expected to cost about S$14.6 million and is scheduled for completion in 1Q 2013.

34 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 34 MANAGER S REPORT 5. Development of a new factory block at Techplace II The weighted lease term to expiry of the portfolio is about 4.0 years as at 31 March % of A-REIT s gross income is due for renewal in FY12/13. The lease expiry profile remains well balanced and extends beyond Asset Class Diversification (By Asset Value) 56% 44% 27% 73% Artist impression Strategically located in Ang Mo Kio and easily accessible to the Central Expressway and the MRT, Techplace II currently comprises a total of six blocks of flatted factory buildings and a canteen block. The Manager plans to develop a new factory block with ancillary F&B space totaling about 24,016 sqm through the maximisation of plot ratio from existing 2.05x to 2.5x. Works will also include the enhancement of the external façade to improve the marketability of the property. The project is expected to cost about S$42.4 million and is scheduled for completion in 4Q Enabling Organic Growth: Proactive Asset Management The hallmark of a good manager is to add value to its existing portfolio so as to achieve a sustainable rate of return for its Unitholders. At A-REIT, we constantly refine our asset management strategy to keep abreast of the changing real estate requirements of our customers. A-REIT is able to serve the diverse real estate needs of its customers through its diversified portfolio of properties. As at 31 March 2012, A-REIT has 101 properties in Singapore comprising Business & Science Parks, Hi-Tech Industrial, Light Industrial, Logistics & Distribution Centres and Warehouse Retail Facilities as well as a business park facility in China. The portfolio gross floor area ( GFA ) increased to 2.74 million sqm from 2.46 million sqm in FY10/11. 69% 31% 27% 73% Business Park Science Park Business Park (China)* Hi-Tech Industrial Hi-Tech Industrial (Data Centres)* Light Industrial Flatted Factories* Logistics & Distribution Centres Warehouse Retail Facilities 8% 92% 24% 14% 1% 17% 4% 11% 5% 21% 3% Each of the segments is exposed to different sectors of the economy and has different growth drivers, thereby providing diversification value to the portfolio. In FY11/12, sources of new demand were broad based and originated from more than 12 sectors ranging from conventional demand of transport and storage, structural engineering, information technology to the knowledge-based sectors such as financial services and biomedical. Single-tenanted buildings Multi-tenanted buildings *Business Park (China) and Flatted Factories are multi-tenanted buildings while Hi-Tech Industrial (Data Centres) and Warehouse Retail Facilities comprise single-tenanted buildings

35 A DECADE OF ENABLING BUSINESSES 35 MANAGER S REPORT Weighted Average Lease Term to Expiry (WALE) as at 31 March % 26.1% Light Industrial /Flatted Factories 19.2% Science Parks 17.9% % of A-REIT Property Income 20% 10% 13.8% 12.6% 17.9% 21.6% 15.7% 11.1% 6.4% 6.0% Logistics & Distribution Centres 17.4% Hi-Tech Industrial 21.3% Business Parks 24.2% 6.5% 0% 4.3% 3.1% 8.3% 3.2% 3.8% 0.9% 5.9% 4.7% 1.6% 3.0% 1.4% 1.2% 2.8% 0.6% 3.3% 1.4% 0.1% 3.4% 1.2% 12% 1.0% 0.8% 1.4% 1.1% FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Single-tenanted Buildings Multi-tenanted Buildings Sources of new demand for space in FY11/12 (By net lettable area) Transport and storage Precision Engineering Others Food Products & Beverages Lifestyle and Services Structural Engineering IT Biomedical Electronics General Manufacturing Telecommunication & Datacentre Financial Service 33% 11% 10% 7% 7% 7% 6% 5% 5% 4% 4% 1% As at 31 March 2012, A-REIT has a tenant base of over 1,100 international and local companies from a wide range of industries and activities, including research and development, life sciences, information technology, engineering, light manufacturing, logistics service providers, electronics, telecommunications, manufacturing services and back-room office support in service industries. The top 10 tenants accounts for only 25.2% of A-REIT s gross revenue, and the majority of these tenants are either multi-national or listed companies. No single property or tenant accounts for more than 4.5% and 6.0% of A-REIT s monthly gross revenue respectively. This provides diversity within the portfolio.

36 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 36 MANAGER S REPORT Tenants Base by Industry Mix (By Monthly Gross Income) 3rd Party Logistics, Freight Forwarding 14.1% Electronics 10.8% Information Technology 10.4% Telecommunication & Datacentre 9.7% M&E / Machinery & Equipment 9.6% Financial 6.5% Life Science 5.7% Distributors, trading company 5.7% Food Products & Beverages 2.2% Textiles & Wearing Apparels 1.9% Rubber and Plastic Products 1.5% Chemical 1.4% Medical, Precision & Optical Instruments 1.3% Healthcare Products 1.3% Fabricated Metal Products 1.2% Printing & Reproduction of Recorded Materials 1.0% Hotels and restaurants 1.0% Construction 1.0% Repair and Servicing of vehicles 0.8% Others 12.9% 0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Tenants Base by Country of Origin (By Monthly Gross Income) Singapore 57.8% USA Europe Japan UK Bermuda Hong Kong China India Others Switerland Australia Malaysia Korea Taiwan 3.3% 1.9% 1.6% 1.6% 1.2% 1.1% 1.0% 0.9% 0.5% 0.2% 0.1% 0.1% 10.4% 18.3% 0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

37 A DECADE OF ENABLING BUSINESSES 37 MANAGER S REPORT Top 10 Tenants (By Monthly Gross Revenue) 7.0% % of monthly gross revenue 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 6.0% 3.7% 2.8% 2.8% 2.0% 1.7% 1.7% 1.6% 1.6% 1.6% 0.0% Singapore C&P Holdings Citibank, N.A Telecommunications Pte Ltd Limited Creative Technologies DBS Bank Federal Express Corporation Biomedical Sciences Institutes Siemens SENKEE Logistics Cold Storage About 85% of A-REIT s lettable area is leased to multi-national or government-linked companies and agencies. The balance of its lettable space is occupied by Small and Medium Enterprises ( SME ) and other tenants who each take up less than 2,000 sqm of space. This group of customers represents less than 0.5% of the Singapore SME population. Only 20.3% of A-REIT s lettable area is used for conventional manufacturing. Low exposure to conventional manufacturing (By net lettable area) 20.3% The Manager regularly review the credit risk profile of A-REIT s customers to minimise bad debt. A weighted average of 6-month worth of rental income is collected as security deposit to safeguard A-REIT against potential tenant default. The standard industry practice is to hold one-month worth of rental as security deposit for each year s lease. However, for single-tenanted buildings, resulting typically from a sale-andleaseback transaction or a built-to-suit arrangement, a larger sum of security deposits may be obtained depending on the credit-standing of the customer and commercial negotiation. Business & Science Parks Hi-Tech Industrial Properties No. of singletenanted properties Weighted average security deposit* (no. of months) Light Industrial Logistics & Distribution Centres Warehouse Retail Facilities % Non-manufacturing activities include R&D, backroom offices, telecommunications & data centre, software and media consultancy services as well as transport & storage Manufacturing activities include food & beverages, aeronautical auxiliary equipment, precision engineering etc. * Excluding cases where rental is paid upfront

38 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 38 MANAGER S REPORT S$ 000 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 Doubtful debt Doubtful debt provided/bad debt write-off/(write back) (222) (72) 6 6 Trade receivables 627 1,123 4,033 2,134 1,589 1,977 2,137 3,066 1,583 2,817 Total annual gross revenue 22,836 65, , , , , , , , ,304 Doubtful debt provision/bad debts write-off/(write back) as % of gross revenue 1.54% 0.20% 0.03% 0.02% 0.01% 0.08% (0.06%) (0.02)% 0.001% 0.002% We maintain a rigorous and conscientious effort in account receivable management. This has resulted in low doubtful debt provisions as a percentage of total gross revenue. In addition, about 89.7% of rental receipts via Interbank GIRO services. This has enabled us to react efficiently and appropriately towards any inadequacy in payment. Proactive asset management has also resulted in improvement in occupancy rates as well as rental rates for renewal leases. On a same-store basis, occupancy rate for A-REIT s multi-tenanted properties grew by 0.7% point to 92.8% yoy versus 92.1% while portfolio occupancy increased to 96.4% yoy from 96.0%. The weighted average occupancy for investments completed in FY11/12 is 78.1%, largely due to Senoko. Excluding Senoko, the occupancy rate would be is 92.2% (multi-tenanted buildings) and 95.8% (portfolio). Occupancy / Singapore GDP Growth 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 82.5% 82.5% 4.2% 88.8% 85.1% 89.0% % 94.1% 95.0% 9.2% 91.4% % 93.7% % 8.7% 8.8% 98.4% 97.8% 96.4% 95.3% 91.2% 92.1% 92.8% FY03/02 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/ % 95.7% 96.0% 96.4% % % 4.9% Singapore Puchasing Manager s Index (PMI) -20.0% Portfolio Occupancy Multi-Tenanted Building Occupancy 10.0 Singapore GDP Growth PMI (RHS) Notes: Singapore GDP Growth numbers are based on calendar year. A-REIT s occupancy for FY11/12 is based on a same-store basis for comparison with FY10/11 Source: Singapore Purchasing Manager s Index (PMI), Singapore Department of Statistics Singapore Ministry of Trade & Industry and A-REIT

39 A DECADE OF ENABLING BUSINESSES 39 MANAGER S REPORT Positive rental reversions of between 5.2% and 15.7% were achieved throughout all segments of A-REIT s Singapore portfolio in FY11/12. For A-REIT s China property in Beijing, a rental reversion of 42.9% over the existing passing rental rate was achieved due to the strong demand and tight supply of quality business park in the vicinity. Multi-tenanted properties (1) Net lettable area (sqm) Vacant space (sqm) FY11/12 increase in renewal rates (2) 4Q FY11/12 Increase / (decrease) in new take up rates (3) Increase / (decrease) in new take up rates for the Financial Year (4) As at 31 Mar 2012 Business & Science Park 357,687 25, % 2.3% 8.5% Hi-Tech Industrial 259,933 39, % (9.1)% (5) 9.0% Light Industrial / Flatted Factories Logistics & Distribution Centres 271,791 43, % 3.7% 11.5% 297,489 18, % 21.1% (6) (3.3)% (7) Notes : 1. A-REIT s Singapore portfolio only 2. FY11/12 renewal rental rates versus previous contracted rates 3. Rental rates for new take up (including expansion by existing tenants) in 4QFY11/12 versus new take-up rental rates achieved in 3QFY11/12 4. Rental rates for new take up (including expansion by existing tenants) in FY11/12 versus new take-up rental rates achieved in FY10/11 5. New take up rate in the Hi-Tech Industrial segment declined by 9.1% due to quantity discount given to a new large space user 6. New take up rate in the Logistics & Distribution Centres segment increased by 21.1% due to ground floor warehouse space leased in the eastern part of Singapore which typically commands a higher rental rate 7. New take up rate in the Logistics & Distribution Centres segment declined by 3.3% due to higher rental rate transacted for a fit out unit in the prior financial year A-REIT China Increase in renewal rates Ascendas Z-Link 42.9% Conclusion For FY12/13, about 13.8% of A-REIT s gross revenue will be due for renewal and the balance 86.2% of portfolio revenue, barring any unexpected tenant failure, is committed for the financial year. The current market rental rate for the space due for renewal in FY12/13 and FY13/14 is between 16% and 32% higher than the weighted average passing rental. This provides opportunities for potential positive rental reversions for its leases due for renewal or significant buffer against potential market decline.

40 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 40 MANAGER S REPORT In FY12/13, we will look forward to consolidate our position as the market leader in the business space and industrial sector. A-REIT will leverage on its wide spectrum of real estate space offering to cater to the varied requirements of its customers. A-REIT has a vacancy rate of about 21.9% for its investments completed in FY11/12 which we will strive to lease up. This would be a potential source of organic growth. 38% 38% of A-REIT s portfolio is made up of long term leases with built in rental escalation; 32.2% of such leases have rental escalation pegged to CPI with a fixed rate floor. The balance of such long term leases have varying quantum of periodic escalation. A-REIT is also set to benefit from the full-year net property income contribution from the investments completed during FY11/12, particularly from the investments that were completed in the fourth quarter of FY11/12. This includes Cintech I to IV as well as Senoko and 90 Alps Avenue. Multi-tenanted Buildings: Typically 3-year rolling leases 62% Single-tenanted Buildings: Long term leases typically with periodic rental escalation, of which 32.2% of these leases are pegged to CPI Area Due for renewal ( 000sf) 2,000 1,800 1,600 1,400 1,200 1, S$3.35 S$3.90 S$3.31 S$2.24 S$2.85 S$2.10 S$1.44 S$1.90 S$1.28 S$1.49 S$1.90 S$1.49 S$1.38 S$1.75 S$1.22 S$5.00 S$4.50 S$4.00 S$3.50 S$3.00 S$2.50 S$2.00 S$1.50 S$1.00 Rental Rates (psf pm) 200 S$ FY12/13 FY13/14 FY12/13 FY13/14 FY12/13 FY13/14 FY12/13 FY13/14 FY12/13 FY13/14 Business & Science Parks Hi-Tech Industrial Light Industrial Flatted Factories Logistics & Distribution S$0.00 Area ( 000sf) for Renewal in FY12/13 Area ( 000sf) for Renewal in FY13/14 Weighted avg existing rates (psf pm) for FY 12/13 Weighted avg existing rates (psf pm) for FY 13/14 Current Market rental (psf pm)

41 A DECADE OF ENABLING BUSINESSES 41 BOARD OF DIRECTORS Standing (left to right) Mr Joseph Chen Seow Chan Mr Henry Tan Song Kok Mr Chia Kim Huat Mr Teo Eng Cheong Ms Monica Villegas Tomlin Seated (left to right) Mr Tan Ser Ping Mr Koh Soo Keong Ms Chong Siak Ching

42 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 42 BOARD OF DIRECTORS Mr Koh Soo Keong, 61 Chairman, Independent Director Date of appointment as Director: 15 September 2009 Date of appointment as Chairman of the Board: 1 August 2011 Length of service as Director: 2 years and 8 months (as at 30 May 2012) Committees served on: Human Resource & Remuneration Committee (Chairman) Nominating Committee (Chairman) Investment Committee (Member) Corporate Disclosure Committee (Member) Academic & Professional Qualifications: Bachelor of Engineering (Honours), University of Singapore Master of Business Adminstration, National University of Singapore Postgraduate Diploma in Business Law, National University of Singapore Present Directorships as at 30 May 2012 Listed companies ECS Holdings Limited KS Energy Limited Noel Gifts International Ltd Northern Technologies International Corporation Others ABL Asia Pte Ltd EcoSave Pte Ltd Zerust Singapore Pte Ltd Major Appointment as at 30 May 2012 Chairman, Agri-Food and Veterinary Authority of Singapore Past Directorships in listed companies held over the last 3 years AusGroup Limited Medtecs International Corporation Ltd Ms Chong Siak Ching, 53 Vice Chairman, Non-Executive Director Date of appointment as Director: 8 April 2002 Length of service as Director: 11 years and 9 months (as at 30 May 2012) Committees served on: Investment Committee (Chairman) Human Resource & Remuneration Committee (Member) Nominating Committee (Chairman) Academic & Professional Qualifications: BSc Estate Management (Honours), National University of Singapore Masters in Business Adminstration, National University of Singapore Advanced Management Program, Harvard Business School Present Directorships as at 30 May 2012 Listed companies Singapore Press Holdings Limited Ascendas Property Fund Trustee Pte. Ltd. (as Trustee- Manager of Ascendas India Trust) Frasers Property (China) Limited Others Ascendas Group of Companies China-Singapore Suzhou Industrial Park Development Group Co., Ltd Carmelray-JTCI Corporation Jurong Health Services Pte. Ltd. Standards, Productivity and Innovation Board (SPRING) Major Appointments as at 30 May 2012 Singapore Business Federation National University of Singapore, Board of Trustees Institute of Real Estate Studies Yale-NUS College Governing Board Past Directorships in listed companies held over the last 3 years Nil Others 1999: Awarded NUS Distinguished Alumni by the Faculty of Architecture and Building Management 2009: Awarded NUS Distinguished Alumni Service 2009: Recognized as the Outstanding CEO of the Year in Singapore Business Awards

43 A DECADE OF ENABLING BUSINESSES 43 BOARD OF DIRECTORS Mr Joseph Chen Seow Chan, 61 Independent Director Date of appointment as Director: 22 April 2008 Length of service as Director: 4 years and 2 months (as at 30 May 2012) Committees served on: Audit Committee (Chairman) Human Resource & Remuneration Committee (Member) Academic & Professional Qualifications: Bachelor of Science (Honours), University of Singapore Present Directorships as at 30 May 2012 Listed companies Nil Others Nil Major Appointment as at 30 May 2012 Nil Past Directorships in listed companies held over the last 3 years Nil Mr Chia Kim Huat, 45 Independent Director Date of appointment as Director: 22 April 2008 Length of service as Director: 4 years and 2 months (as at 30 May 2012) Committees served on: Corporate Disclosure Committee (Chairman) Audit Committee (Member) Nominating Committee (Member) Academic & Professional Qualifications: LLB (Hons), National University of Singapore Postgraduate Practical Course in Law, Board of Legal Education Advocate & Solicitor, Supreme Court, Singapore Present Directorships as at 30 May 2012 Listed companies PEC Ltd Others Ascendas China Commercial Fund Management Limited R&T Corporate Services Pte Ltd Major Appointment as at 30 May 2012 Partner, Rajah & Tann LLP Past Directorships in listed companies held over the last 3 years Nil

44 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 44 BOARD OF DIRECTORS Mr Henry Tan Song Kok, 48 Independent Director Date of appointment as Director: 15 September 2009 Length of service as Director: 2 Years and 9 months (as at 30 May 2012) Committees served on: Audit Committee (Member) Human Resource & Remuneration Committee (Member) Academic & Professional Qualifications: Bachelor of Accountancy (First Class Honours), National University of Singapore Fellow Member of Institute of Chartered Accountants in Australia Fellow Member of Institute of Certified Public Accountants in Singapore Associate Member of Institute of Internal Auditors Fellow Member of Insolvency Practitioners Association of Singapore Present Directorships as at 30 May 2012 Listed companies Raffles Education Corporation Limited Chosen Holdings Limited Pertama Holdings Limited YHI International Limited China New Town Development Co. Ltd Others Nexia TS Pte Ltd TSA Capital Pte Ltd TSA Recruitment Consultants Pte Ltd Taskom Advisory Pte Ltd AustChina Strategies Pty Ltd 2T Investment Holdings Pte Ltd Nexia TS (Shanghai) Co. Ltd Medallion Ventures Limited Vertex Resources Ltd Equity-Link Asia Ltd Nexia International Limited Nexia Limited Medallion Asset Management Pte Ltd Nexia China Pte Ltd Nexia TS Public Accounting Corporation Nexia TS Risk Advisory Pte Ltd Nexia TS Tax Services Pte. Ltd Alpha Singapore Nexia TS Technology Pte Ltd Past Directorships in listed companies held over the last 3 years Nil Others 2004: Winner of the Spirit of Enterprise Award Ms Monica Villegas Tomlin, 62 Independent Director Date of appointment as Director: 15 September 2009 Length of service as Director: 2 years and 9 months (as at 30 May 2012) Committees served on: Investment Committee (Member) Corporate Disclosure Committee (Member) Academic & Professional Qualifications: Master of Science in Management, Sloan School of Management, Massachusetts Institute of Technology, USA Present Directorships as at 30 May 2012 Listed companies Nil Others Dane Court Pte Ltd Major Appointment as at 30 May 2012 Senior Advisor, Independent Consultant, Singapore Past Directorships in listed companies held over the last 3 years Nil Major Appointments as at 30 May 2012 Nil

45 A DECADE OF ENABLING BUSINESSES 45 BOARD OF DIRECTORS Mr Teo Eng Cheong, 45 Independent Director Date of appointment as Director: 10 August 2011 Length of service as Director: 10 months (as at 30 May 2012) Committees served on: Audit Committee (Member) Nominating Committee (Member) Academic & Professional Qualifications: BSc (Economics), National University of Singapore MSc (Economics), London School of Economics & Political Science Present Directorships as at 30 May 2012 Listed companies Nil Others International Enterprise Singapore Board IE Singapore Holdings Pte Ltd Major Appointments as at 30 May 2012 Council for Private Education Agri-Food & Veterinary Authority Air Traffic Rights Committee ASEAN Infrastructure Fund Limited Past Directorships in listed companies held over the last 3 years Nil Mr Tan Ser Ping, 53 Executive Director, CEO Date of appointment as Director: 22 April 2008 Length of service as Director: 4 Years and 2 months (as at 30 May 2012) Committees served on: Investment Committee (Member) Corporate Disclosure Committee (Member) Academic & Professional Qualifications: Bachelor of Accountancy (Hons), National University of Singapore Master of Business Administration, University of Leicester, UK Present Directorships as at 30 May 2012 Listed companies Nil Others Ascendas Investment Pte Ltd Ascendas Land International Pte Ltd Major Appointments as at 30 May 2012 Nil Past Directorships in listed companies held over the last 3 years Nil

46 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 46 THE A-REIT TEAM BUSINESS & SCIENCE PARKS From left to right Tey Chee Ying Esther Gooi Juirine Tan Shirley Teo Erina Chan Wendy Tan HI-TECH INDUSTRIAL PROPERTIES / DATA CENTRES From left to right Jean Lau Koh Ming Hong May Lai Karen Lee Er Hun Nie Huang Juan

47 A DECADE OF ENABLING BUSINESSES 47 THE A-REIT TEAM LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES From left to right Leong Sai Keong Jeffrey Toh Vincent Lee Winnie Goh Agnes Ong Lee Fei Lan LOGISTICS & DISTRIBUTION CENTRES From left to right Christel Tan Roy Teo Lee Yong Kian Harry Yan

48 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 48 THE A-REIT TEAM CAPITAL MARKETS / CORPORATE SERVICES & REPORTING Back (left to right) Melvyn Basil D Rozario Chan Lai Kuan Stefanie Tan Sharon Seet Jaslyn Lee Cassie Ang Tang Khay Ling Carol Ng Sabrina Tay Front (left to right) Amy Low Chae Meng Kern

49 A DECADE OF ENABLING BUSINESSES 49 THE A-REIT TEAM BUSINESS DEVELOPMENT & INVESTMENT From left to right Crystal Koh George Kang Kevin Lee Yong Kok Fong Rina Ang Teo Mui Lynn

50 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 50 THE A-REIT TEAM Tan Ser Ping 2. Tan Shu Lin 3. Kevin Lee 4. Chae Meng Kern 5. Karen Lee 6. Roy Teo 7. Teu Lee Chen 8. Vincent Lee

51 A DECADE OF ENABLING BUSINESSES 51 THE A-REIT TEAM Tan Ser Ping Executive Director Chief Executive Officer Ser Ping, Executive Director and CEO of the Manager, is responsible for the overall management and operation of A-REIT. He works closely with the Board of Directors to determine the business strategies and plans for the strategic development of A-REIT and together with the AFM team and the Property Manager (ASPL), ensure that the operations of A-REIT are aligned with the stated business strategies. Prior to joining the Manager, he was the Executive Vice President of Real Estate Development & Investment (REDI) of Ascendas Group where he was responsible for formulating REDI policies, strategies and plans across all country operations and developing new product offerings and markets for Ascendas. He headed the task force for the establishment of A-REIT prior to its IPO. Before joining Ascendas in 2001, he was Senior General Manager, Residential & Commercial Properties Business Group of China-Singapore Suzhou Industrial Park Development Company Ltd where he lived and worked in China for about seven years. Ser Ping holds a Bachelor of Accountancy (Honours) degree from National University of Singapore and a Master of Business Administration degree from the University of Leicester, UK. Tan Shu Lin Head, Capital Markets & Transactions Chairman, Singapore Operations Executive Committee (SOEC) Shu Lin is responsible for managing the capital structure of A-REIT, overseeing debt and equity fund raising transactions and other related transactions. She is also responsible for maintaining and enhancing relationship with A-REIT s investors. Shu Lin chairs the Executive Committee for Singapore Operations where she is responsible for the operational performance of A-REIT s Singapore properties. Prior to joining the Manager, Shu Lin was Assistant Vice President of Real Estate Fund Management at Ascendas Pte Ltd where she was responsible for developing property fund management activities as well as sourcing and evaluating potential investment opportunities in the region. Before joining Ascendas, Shu Lin has had more than six years of working experience with various financial institutions. She graduated with a First Class Honours degree in Economics from University of Portsmouth, United Kingdom and is also a Chartered Financial Analyst. Kevin Lee Head, Business Development & Investment Member, Singapore Operations Executive Committee (SOEC) Kevin is responsible for developing and executing A-REIT s business development and investment strategy in Singapore and China. He leads a team of business development and investment managers in generating and evaluating opportunities for acquisition and development, structuring transactions as well as negotiating of such transactions. In addition, as a member of the SOEC, he oversees the Property Manager, ASPL, in the marketing and leasing function and has the responsibility to maximize occupancy and gross revenue for A-REIT properties. Prior to joining the Manager, Kevin was Director at an international property consultancy firm where he has served corporate clients and banks involving assets appraisal and also investment advisory. Kevin is a licensed valuer and also a member of the Royal Institution of Chartered Surveyors. He holds a Bachelor of Science degree in Land Management from University of Reading, United Kingdom. Chae Meng Kern Head, Reporting and Corporate Services As Head, Reporting and Corporate Services, Meng Kern is responsible for financial accounting and reporting, management accounting and analysis, taxation, compliance execution and corporate services. She has over 19 years of experience in areas of budgeting, financial analysis, cashflow management, taxation and consolidation of management and statutory accounts. Prior to joining the Manager, Meng Kern was Senior Finance Manager of Lend Lease Asia Holdings Pte Ltd where she was responsible for the financial reporting and analysis of the Bovis Lend Lease (Asia). Meng Kern holds a Bachelor of Accountancy degree from the National University of Singapore and is a Member of the Institute of Certified Public Accountants of Singapore.

52 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 52 THE A-REIT TEAM Karen Lee Head, Hi-Tech Industrial Properties Portfolio Member, Singapore Operations Executive Committee (SOEC) Karen is the Portfolio Manager for Hi-Tech Industrial Properties where she is responsible for the strategic planning and execution of asset management initiatives for the properties. In addition, as a member of the SOEC, she oversees the Property Manager, ASPL, in the delivery of customer care and services and has the responsibility to maximise customer retention, loyalty and satisfaction. Prior to joining the Manager, Karen served as Head of Lease & Operations in JTC Corporation, Vice President in Trust Company Asia in charge of client services. She has over 12 years of experience in the real estate industry covering various areas of industrial lease and property management and marketing in Singapore and Vietnam. Karen holds a Bachelor of Science (Economics) (Hons) degree and a Masters of Science (Real Estate) from the National University of Singapore. Roy Teo Head, Logistics and Distribution Centres Portfolio Member, Singapore Operations Executive Committee (SOEC) Roy is the Portfolio Manager for Logistics Properties where he is responsible for the strategic planning and execution of asset management initiatives for the properties. In addition, as a member of the SOEC, he oversees the Property Manager, ASPL, in the delivery of property services and has the responsibility to ensure that the desired level of quality service is delivered to our customers consistently and at an optimal cost. Teu Lee Chen Head, Business & Science Parks Properties Portfolio As Portfolio Manager (Business & Science Parks), Lee Chen oversees the Property Manager, ASPL, in its asset management strategies and execution for A-REIT s portfolio of Business & Science Park properties. Prior to joining the Manager, Lee Chen was an Asset Manager in Ascendas Services Pte Ltd responsible for the leasing activities pertaining to the Business & Science Park portfolio. Lee Chen has prior experience in development and project management where she oversaw the conceptualisation, design and implementation of developments and asset enhancement works for industrial and business & science park properties. Lee Chen is a Member of Royal Institution of Chartered Surveyors, and has a Bachelor of Science in Building (2nd Upper Honors) and a Master of Science in Project Management from the National University of Singapore. Vincent Lee Head, Light Industrial Properties Portfolio As Portfolio Manager (Light Industrial Properties), Vincent oversees the planning and execution of asset management strategies for A-REIT s portfolio of Hi-Tech Industrial properties. Vincent has more than 15 years of experience in various aspects of real estate management and operations spanning across the marketing, leasing, research, investment analysis and asset management functions in the commercial office, retail, industrial and residential sectors. Vincent holds a Master of Applied Finance from the University of Adelaide and a Master of Real Estate from the University of New South Wales in Australia. He first graduated with a Bachelor of Commerce degree in Urban Land Economics from the University of British Columbia, Canada. Roy has over 10 years of experience in the logistics industry in areas including finance, accounting, project management and business development in Singapore and regionally. Roy holds a Bachelor of Science (Honours) degree in Applied Accountancy from Oxford Brookes University and is an Affiliate member of the Association of Chartered Certified Accountants.

53 A DECADE OF ENABLING BUSINESSES 53 THE PROPERTY MANAGER ASCENDAS SERVICES PTE LTD ( ASPL ) THE A-REIT TEAM From left to right Beh Lean Hooi Lee Chin Leong Thng Bee Lay Desmond Ho Sharon Ng Chia See Hiong Tay Eng Kiat Lambert Lam Steven Leow Raymond Foo The asset management activities of A-REIT s portfolio of properties are undertaken by Ascendas Services Pte Ltd, a 100% owned subsidiary of Ascendas Land (Singapore) Pte Ltd. The ASPL team has over 130 staff providing proactive and professional services to A-REIT s existing tenants to enhance the market positioning and attractiveness of A-REIT s properties so as to maximise returns to unitholders. They also oversees day-to-day operational matters such as marketing of space, lease management, property management and maintenance, coordinating customers fitting out requirements, supervising the performance of contractors and ensuring building and safety regulations are complied with. They are also responsible for the management of operating expenses and the achievement of organic growth within the portfolio. More specifically, ASPL is tasked with the following responsibilities:

54 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 54 THE PROPERTY MANAGER UNITHOLDERS HSBC INSTITUTIONAL TRUST SERVICES (SINGAPORE) LIMITED (TRUSTEE) PROPERTIES Investment in A-REIT Distributions Management Fees Management Services Trustee Fee Acts on behalf of Unitholders Net Property Income Ownership of Assets 18.1% Property Management Services Property Management Fees ASCENDAS FUNDS MANAGEMENT (S) LIMITED (A-REIT MANAGER) (Reports to AFM Board of Directors) 100% ASCENDAS GROUP 100% ASCENDAS SERVICES PTE LTD ( ASPL ) (PROPERTY MANAGER) (Reports to ASPL Board of Directors) Responsible for strategy formulation in relation to Responsible for execution of STRATEGIES CAPITAL & RISK MANAGEMENT Equity funding Debt funding Interest rate risk management Foreign exchange management Optimise capital stucture PROACTIVE PORTFOLIO MANAGEMENT Portfolio positioning and strategies Supervise execution of asset management activities VALUE ADDING INVESTMENTS Yield accretive acquisitions Development Built-to-suit projects Responsible for execution of REVENUE MANAGEMENT Occupancy improvements Rental rates improvements EXPENSE MANAGEMENT Efficiency improvements Cost management PROPERTY MANAGEMENT Property maintenance service Site staff management OUTCOME Stability Growth CUSTOMER CARE Customer retention Customer satisfaction TOTAL RETURNS Predictable Income Capital Stability Revenue and Occupancy Management The ASPL team is responsible for the revenue and occupancy of A-REIT s portfolio. In this respect, it actively markets and leases vacant space in the portfolio of properties. They also liaise closely with existing customers for expansion space as well as renewal of leases to maximize gross revenue. In addition, the ASPL team conducts proactive prospecting for new tenants to enhance the portfolio occupancy and revenue. Property Management Working hand-in-hand with the Manager s Portfolio Management team, ASPL ensures that the property specifications and service level commensurate with the intended market positioning of each property. The ASPL team is also responsible for managing site staff to ensure that the desired level of property and customer care is implemented at the respective properties. Expense Management The ASPL team adopts a prudent operational strategy in line with the Manager s objective in maximising return without compromising its service standards. They strive to continuously improve operating processes to improve productivity and enhance operational effectiveness so as to optimize operational cost. Customer Care Together with the Manager s Portfolio Management team, ASPL implements a Customer Care Program to maximise customer retention. The program is set up through periodic discussion between the ASPL team and the Manager s Portfolio Management team to ensure that the desired level of customer service is delivered to A-REIT s customers. The team is also responsible for the active management of accounts receivable where they strive to minimise arrears and bad debts by continuously monitoring customers credit standing. Project Management In addition, on a need basis, the ASPL team provides expertise in the area of construction and project management for development projects undertaken by A-REIT. They liaise closely with the AFM Development Managers and external professionals such as architects to ensure each project is carried out in a timely and efficient manner. The team at ASPL is committed to providing optimal solutions and services to meet the needs of A-REIT s customers as well as to enhance the value of A-REIT s portfolio

55 A DECADE OF ENABLING BUSINESSES 55 THE PROPERTY MANAGER Mr Tay Eng Kiat Chief Executive Officer Mr Tay Eng Kiat is the Chief Executive Officer of ASPL, where he is responsible for the entire spectrum of asset management strategies and implementation for Ascendas properties in Singapore. Prior to his current appointment, he was the Chief Executive Officer of Ascendas Korea. Eng Kiat joined Ascendas in 2004 as the General Manager (North China) and was subsequently appointed the Chief Executive Officer of Ascendas China in Eng Kiat has more than 20 years of experience in the property sector locally and aboard. Prior to joining Ascendas, he was Project Director of Development Services with PSA Corporation (now known as Mapletree Investments Pte Ltd). From 1997 to 2000, he was the General Manager of Xinsu Industrial Development (Suzhou) Co. Ltd. His previous work experiences include positions in Centrepoint Properties Ltd, Trade & Industrial Development (Pte) Ltd as well as the Housing and Development Board (HDB) of Singapore. Eng Kiat graduated from the National University of Singapore with a degree in Estate Management in Mr Lee Chin Leong Vice President, Integrated Facility Solutions Mr Lee Chin Leong has over 20 years of experience in development, construction, operations and maintenance in the real estate & infrastructure related industries. Trained as a Mechanical & Electrical Engineer, he has worked for several developers to spearhead major development projects for the provision of key infrastructures, building construction and facility management. As Vice-President of Integrated Facility Solutions, Chin Leong is responsible to carry out full suite of Integrated Facilities Solution services to support the downstream infrastructure related and other customised services. He also leads a group of Green & Energy Experts to champion and implement continual improvements in Energy and Water Efficiency, Indoor Air Quality, Energy Audit, Eco-Office and Green Mark Certification solutions. Chin Leong holds a Bachelor of Science Degree (Hons) in Electrical Engineering from South Dakota State University, USA and has completed the SMU-BCA Advanced Management Programme for Leaders of Building and Construction Industry. Mr Steven Leow Vice President, Head Of Property Management Mr Steven Leow has over 20 years of experience in development, construction, operations and maintenance in the real estate & infrastructure related industries. As Head of Property Management in ASPL, he leads a team over 80 technical specialists to manage existing buildings owned by A-REIT and Ascendas Land Singapore Pte Ltd. Mr Yew Kok Chee Vice President, Head Of Project Management Mr Yew Kok Chee has over 20 years of experience in the development and construction industry. Trained as a civil engineer, he has structural design experience with a local consultancy firm before relocating to China to be involved in the development of residential projects of another Singapore developer. As Head of Project Management of Ascendas Services Pte Ltd, he leads a team of nine project managers in the development and management of projects undertaken by A-REIT and Ascendas Land Singapore. Kok Chee holds a Bachelor of Engineering (Civil) from National University of Singapore. Ms Thng Bee Lay Vice President, Lease Operations Ms Thng Bee Lay possesses over 15 years of experience in the real estate industry and currently heads the Lease Operations department in Ascendas Services Pte Ltd. She is responsible for overseeing the lease administration, property tax, credit control and tenants programmes for all the Singapore properties of Ascendas. Prior to this appointment, Bee Lay was overseeing the asset & lease management team of the Ascendas Land portfolio, Logistics & Distribution Centres in Ascendas Services Pte Ltd, and had extensive experience in managing industrial, science & business parks development properties. Her previous appointment before joining ASPL was with United Overseas Land Limited Organization where she specialized in both sales & leasing of residential & commercial properties respectively. Bee Lay holds a Bachelor of Business Administration degree and a Master of Science (Real Estate) from National University of Singapore.

56 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 56 A-REIT S SINGAPORE PORTFOLIO BUSINESS & SCIENCE PARKS LIGHT INDUSTRIAL FLATTED FACTORIES WOODLANDS REGIONAL CENTRE Characteristics Suburban office, corporate HQ buildings and R&D space. Zonal specified by the Government. Manufacturing activities are not allowed. Typical Customers Regional corporate HQs of industrial companies and MNCs; backroom support office of financial institutions; IT firms, research & development companies in various fields including life sciences, food & fine chemicals, electronics, etc. HI-TECH INDUSTRIAL/ DATA CENTRES Characteristics Vertical corporate campus with high office content combined with high specifications mixed-use industrial space. Also include data centres. Typical Customers Multi-national industrial companies which wish to co-locate their manufacturing activities with their HQ functions. Characteristics Low office content combined with manufacturing space. Typical Customers Large local companies which house their light manufacturing activities and HQ operations within a single facility. Higher manufacturing content compared to Hi-Tech Industrial buildings. JURONG LAKE DISTRICT REGIONAL CENTRE International Business Park Building TUAS SECOND LINK Characteristics Stacked-up manufacturing space used for general manufacturing. Ground floor space tends to command higher rental rate due to higher floor loading and better accessibility. Typical Customers Local small & medium sized enterprises engaged in various manufacturing activities. Some MNC manufacturers also house their manufacturing operations in such buildings PAN ISLAND EXPRESSWAY (PIE) AYER RAJAH KRANJI EXPRESSWAY (KJE) EXPRES BUONA VISTA station (East-West Line) Neuros & Immunos (PIE) SWAY (AYE) KENT RIDGE & HAW PAR VILLA station (Circle Line) Properties in Science Park 1 & 2 89 Master Plan Area WOODLANDS CAUSEWAY BUKIT TIMAH EXPRESSWAY (BKE) SELETAR EXPRESSWAY (SLE) PAYA LEBAR REGIONAL CENTRE Master Plan Area

57 A DECADE OF ENABLING BUSINESSES 57 A-REIT S SINGAPORE PORTFOLIO KAKI BUKIT station (DTL 3) TAMPINES WEST station (DTL 3) LOGISTICS & DISTRIBUTION CENTRES WAREHOUSE RETAIL FACILITIES Techview Techlink Tampines Biz-Hub Characteristics Warehouses and distribution centres. About 62% of A-REIT s logistics & distribution centres are single storey or multistorey facilities with vehicular ramp access. Typical Customers 3rd party logistics providers, manufacturers, distributors and trading companies. Characteristics Retail frontage with warehousing facility at the back of the property; A-REIT owns 2 out of 3 of such properties in Singapore. Typical Customers Single tenant who houses their retail, warehousing and operations within one location. CENTRAL EXPRESWAY (CTE) KALLANG PAYA LEBAR EXPRESSWAY(KPE) PAN ISLAND EXPRESSWAY (PIE) EAST COAST PARKWAY (ECP) POSITIVE IMPACT FROM DOWNTOWN MASS TRANSIT LINE 3 (DTL 3) Rail connectivity will be enhanced with the upcoming DTL 3 linking eastern Singapore to the CBD Positive impact expected for A-REIT s buildings situated near the upcoming rail lines NEW COMMERCIAL & UNIVERSITY DEVELOPMENT AREA Changi Business Park Buildings CENTRAL BUSINESS DISTRICT JALAN BESAR station (DTL 3) Hyflux Building 50 Kallang Avenue MACPHERSON station (DTL 3) Aztech Building Osim Headquarters UBI station (DTL 3) Weltech Building 27 Ubi Road 4 Ubi Biz Hub

58 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 58 A-REIT S PORTFOLIO VARIED SPACE PROPOSITIONS BUSINESS & SCIENCE PARKS Changi Business Park Central 1 Ultro Building Telepark Techquest 13 International Business Park IBP CBP Acer Building 31 International Business Park 1, 3 & 5 Changi Business Park Crescent DBS Asia Hub Nordic European Centre 3 Changi Business Park Vista The Alpha The Aries The Capricorn The Gemini PSB Science Park Building Science Hub & Rutherford Neuros & Immunos Cintech I Cintech II Cintech III & IV Ascendas Z-Link (Business Park (China)) HI-TECH INDUSTRIAL PROPERTIES / DATA CENTRES Kim Chuan Telecommunications Complex 38A Kim Chuan Road Techlink Siemens Center Infineon Building Techpoint Wisma Gulab KA Centre KA Place Pacific Tech Centre Techview 1 Jalan Kilang 30 Tampines Industrial Ave 3 50 Kallang Avenue 138 Depot Road 2 Changi South Lane CGG Veritas Hub Corporation Place N TUAS SECOND LINK North South MRT Line North South MRT Line (Under Construction) East West MRT Line North East MRT Line Circle MRT Line Circle MRT Line (Under Construction) Downtown Line 1 (Under Construction) Downtown Line 2 (Under Construction) Downtown Line 3 (Under Construction) Bukit Panjang LRT Sengkang LRT Punggol LRT PAN ISLAND EXPRESSWAY (PIE) AYER RAJAH KRANJI EXPRESSWAY (KJE) (PIE) EXPRES SWAY (AYE) CHINA BUKIT TIMAH EXPRESSWAY (BKE) SELETAR EXPRESSWAY (SLE)

59 A DECADE OF ENABLING BUSINESSES 59 A-REIT S PORTFOLIO CENTRAL EXPRESWAY (CTE) KALLANG PAYA LEBAR EXPRESSWAY(KPE) PAN ISLAND EXPRESSWAY (PIE) EAST COAST PARKWAY (ECP) LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES WAREHOUSE RETAIL FACILITIES TechPlace I TechPlace II Osim Headquarters Ghim Li Building Progen Building SB Building 247 Alexandra Road 5 Tai Seng Drive Volex Building 53 Serangoon North Ave 4 3 Tai Seng Drive 27 Ubi Road 4 52 Serangoon North Ave 4 Hyflux Building Courts Megastore Giant Hypermart LOGISTICS & DISTRIBUTION CENTRES Weltech Building BBR Building Tampines Biz-Hub 84 Genting Lane Hoya Building NNB Industrial Building 37A Tampines Street 92 Hamilton Sundstrand Building Thales Building ( I & II) Aztech Building Ubi Biz-Hub 26 Senoko Way Super Industrial Building 1 Kallang Place 18 Woodlands Loop 9 Woodlands Terrace 11 Woodlands Terrace Senoko 8 Loyang Way 1 31 Joo Koon Circle IDS Logistics Corporate HQ LogisTech 10 Toh Guan Road Changi Logistics Centre Nan Wah Building C&P Logistics Hub Xilin Districentre Building A&B MacDermid Building Xilin Districentre Building D 9 Changi South Street 3 Freight Links (Toh Guan) Building Xilin Districentre Building C Senkee Logistics Hub (Phase I & II) 1 Changi South Lane Clementi JEL Centre 21 Jalan Buroh Sembawang Kimtrans Logistics Centre Goldin Logistics Hub Sim Siang Choon Building 15 Changi North Way Pioneer Hub 71 Alps Avenue 90 Alps Avenue

60 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 60 A-REIT S PORTFOLIO BUSINESS & SCIENCE PARKS Suburban office, corporate HQ buildings and R&D space Changi Business Park Central 1 2. Ultro Building 3. Telepark 4. Techquest International Business Park 6. IBP 7. CBP 8. Acer Building International Business Park 10. 1, 3 & 5 Changi Business Park Crescent 11. DBS Asia Hub 12. Nordic European Centre Changi Business Park Vista 14. The Alpha 15. The Aries 16. The Capricorn 17. The Gemini 18. PSB Science Park Building 19. Science Hub & Rutherford 20. Neuros & Immunos 21. Cintech I 22. Cintech II 23. Cintech III & IV 24. Ascendas Z-Link (Business Park (China))

61 A DECADE OF ENABLING BUSINESSES 61 A-REIT S PORTFOLIO HI-TECH INDUSTRIAL PROPERTIES / DATA CENTRES Vertical corporate campus with high office content combined with high specifications mixed-use industrial space 25. Kim Chuan Telecommunications Complex A Kim Chuan Road 27. Techlink 28. Siemens Center 29. Infineon Building 30. Techpoint 31. Wisma Gulab 32. KA Centre 33. KA Place 34. Pacific Tech Centre 35. Techview Jalan Kilang Tampines Industrial Ave Kallang Avenue Depot Road Changi South Lane 41. CGG Veritas Hub 42. Corporation Place

62 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 62 A-REIT S PORTFOLIO LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES Low office content combined with manufacturing space / Stacked-up manufacturing space 43. TechPlace I 44. TechPlace II 45. Osim Headquarters 46. Ghim Li Building 47. Progen Building 48. SB Building Alexandra Road Tai Seng Drive 51. Volex Building Serangoon North Ave Tai Seng Drive Ubi Road Serangoon North Ave Hyflux Building 57. Weltech Building 58. BBR Building 59. Tampines Biz-Hub Genting Lane 61. Hoya Building 62. NNB Industrial Building A Tampines Street Hamilton Sundstrand Building 65. Thales Building ( I & II) 66. Aztech Building 67. Ubi Biz-Hub Senoko Way 69. Super Industrial Building Kallang Place Woodlands Loop Woodlands Terrace Woodlands Terrace 74. Senoko Loyang Way Joo Koon Circle

63 A DECADE OF ENABLING BUSINESSES 63 A-REIT S PORTFOLIO LOGISTICS & DISTRIBUTION CENTRES Vertical corporate campus with high office content combined with high specifications mixed-use industrial space 77. IDS Logistics Corporate HQ 78. LogisTech Toh Guan Road 80. Changi Logistics Centre 81. Nan Wah Building 82. C&P Logistics Hub 83. Xilin Districentre Building A&B 84. MacDermid Building 85. Xilin Districentre Building D Changi South Street Freight Links (Toh Guan) Building 88. Xilin Districentre Building C 89. Senkee Logistics Hub (Phase I & II) Changi South Lane 91. Clementi 92. JEL Centre Jalan Buroh 94. Sembawang Kimtrans Logistics Centre 95. Goldin Logistics Hub 96. Sim Siang Choon Building Changi North Way 98. Pioneer Hub Alps Avenue Alps Avenue WAREHOUSE RETAIL FACILITIES Retail frontage with warehousing facility at the back of the property 101. Courts Megastore 102. Giant Hypermart

64 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 64 BUSINESS & SCIENCE PARK PROPERTIES Business & Science Park Multi-tenanted Building Single-tenanted Building Total No. of Properties No. of Customers Gross Floor Area (sqm) 512, , ,060 Gross Revenue (S$m) Book Value/Valuation as at 31 March 2012 (S$m) 1, ,443.8

65 A DECADE OF ENABLING BUSINESSES 65 BUSINESS & SCIENCE PARK PROPERTIES TENANTS INDUSTRY MIX (BY GROSS RENTAL INCOME) Information Technology Financial Life Science Electronics M&E and Machinery & Equipment Chemical Distributors, trading company Telecommunication & Datacentre Food Products & Beverages Hotels and restaurants Printing & Reproduction of Recorded Media Textiles & Wearing Apparels 3rd Party Logistics, Freight Forwarding Fabricated Metal Products Construction Repair and Servicing of vehicles Others 27.8% 17.6% 15.4% 7.2% 5.7% 3.3% 2.5% 2.0% 1.5% 1.7% 1.4% 0.8% 0.7% 0.3% 0.2% 0.1% 11.8% TENANTS COUNTRY OF ORIGIN (BY GROSS RENTAL INCOME) Singapore 47.7% USA 29.1% Europe 9.9% Japan 5.4% India 3.0% Switzerland 2.4% Australia 0.8% UK 0.8% Hong Kong 0.3% Korea 0.2% Malaysia 0.1% China 0.1% Others 0.2%

66 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 66 BUSINESS & SCIENCE PARK PROPERTIES Property Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) 1 17 Changi Business Park Central 1 # 19 Nov ,123 14,475 2 Ultro Building 30 Oct ,450 10,127 3 Telepark 02 Mar ,555 24,717 4 Techquest # 05 Oct ,920 6, International Business Park 10 Oct ,116 7,189 6 IBP 12 Jan ,143 9,454 7 CBP 22 Jan ,448 16,988 8 Acer Building 19 Mar ,185 21, International Business Park 26 Jun ,720 51, , 3 & 5 Changi Business Park Crescent 16 Feb Sep Dec ,660 62, DBS Asia Hub # 31 Mar ,744 32, Nordic European Centre Vendor: Nordic (CP) Pte Ltd 08 Jul ,378 22, Changi Business Park Vista Vendor: CBP 3 Pte Ltd 08 Dec ,388 15,316 Total (Business Park Properties) 1, , , ,913

67 A DECADE OF ENABLING BUSINESSES 67 BUSINESS & SCIENCE PARK PROPERTIES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants 17 Changi Business Park Central % Honeywell Pte Ltd Tiger Airways Holdings Limited Aviat Networks (S) Pte. Ltd 1 Changi Business Park Ave % Ultro Technologies Limited 5 Tampines Central % Singapore Telecommunications Limited DBS Bank Ltd 7 International Business Park % YKK AP Singapore Pte Ltd Sonic Singapore Pte Ltd Brenntag Singapore Pte. Ltd 13 International Business Park % Cambridge Solutions Pte. Ltd Mitsui Chemicals Asia Pacific, Ltd TUV SUD PSB Pte. Ltd 27 International Business Park % Bio-Rad Laboratories (Singapore) Pte Ltd Oracle Financial Services Software Pte. Ltd Belden Singapore Private Limited 10 Changi Business Park Central 2 29 International Business Park % CITCO Fund Services (Singapore) Pte. Ltd Rohde & Schwarz Systems & Communications Asia Pte. Ltd SPE Networks - Asia Pte. Ltd % Jacobs Engineering Singapore Pte Ltd JGC Singapore Pte Ltd Logistron Services Pte Ltd 31 International Business Park % Creative Technology Centre Pte Ltd 1, 3 & 5 Changi Business Park Crescent % Citibank N.A. 2 Changi Business Park Crescent % DBS Bank Ltd. 3 International Business Park % Merck Pte. Ltd Evonik (Sea) Pte. Ltd. ThyssenKrupp Mannex Asia Pte. Ltd. 3 Changi Business Park Vista % Akzo Nobel Paints (Asia Pacific) Pte. Ltd EMC International Sarl (Singapore Branch) Discovery Asia, LLC (Singapore Branch) %

68 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 68 BUSINESS & SCIENCE PARK PROPERTIES Property Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) Science Park Properties 14 The Alpha # 19 Nov ,533 20, The Aries # 19 Nov ,695 11, The Capricorn # 19 Nov ,602 20, The Gemini # 19 Nov ,629 22, PSB Science Park Building 18 Nov ,013 21, Science Hub & Rutherford # 26 Mar ,283 18, Neuros & Immunos # 31 Mar ,931 26, Cintech I # Vendor: Ascendas Land (Singapore) Pte Ltd 22 Cintech II # Vendor: Ascendas Land (Singapore) Pte Ltd 23 Cintech III & IV # Vendor: Ascendas Land (Singapore) Pte Ltd 29 Mar ,943 10, Mar ,552 7, Mar ,622 18,593 Total (Science Park Properties) , ,612 Business Park (China) 24 Ascendas Z-Link # Vendor: Ascendas China Industrial and Business Parks Fund 03 Oct ,427 27,450 Total (Business & Science Parks Properties) 1, , , ,975 Notes: # Acquired from Ascendas Group The valuation for these properties were based on Direct Comparison Method, Capitalisation Approach and Discounted Cash Flow Analysis

69 A DECADE OF ENABLING BUSINESSES 69 BUSINESS & SCIENCE PARK PROPERTIES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants 10 Science Park Road % F J Benjamin (Singapore) Pte Ltd Maccine Pte. Ltd National Starch Pte. Ltd 51 Science Park Road % Verizon Communications Singapore Pte. Ltd Teradyne (Asia) Pte. Ltd Denso International Asia Pte. Ltd 1 Science Park Road % Servicesource International Singapore Pte. Ltd Pfizer Private Limited Waters Pacific Pte. Ltd. 41 Science Park Road % A-Bio Pharma Pte. Ltd International Flavors & Fragrances (Asia Pacific) Pte Ltd Aibel Pte. Ltd Global Industries Asia Pacific Pte Ltd 1 Science Park Drive % TUV SUD PSB Pte. Ltd. 87 & 89 Science Park Drive % Avaya Singapore Pte Ltd Docomo Intertouch Pte. Ltd Centre for Creative Leadership (CCL) Pte Ltd 8/8A Biomedical Grove % Biomedical Sciences Institutes Procter & Gamble Internation Operations SA Singapore Branch Abbott Laboratories (Singapore) Private Limited 73 Science Park Drive % Saipem Singapore Pte. Ltd DSO National Laboratories Diversey Singapore Pte. Ltd 75 Science Park Drive % Citibank N.A. Webvisions Pte Ltd DNV Technology Centre Pte Ltd 77 & 79 Science Park Drive % Quintiles East Asia Pte Ltd Shimadz (Asia Pacific) Pte Ltd Cargo Community Network Pte Ltd Saipem Singapore Pte. Ltd % 17 Zhongguancun Software Park, No.8 West Dongbeiwang Road, Haidian District, Beijing, China % Baidu, Inc.com Raisecom Technology Co., Ltd %

70 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 70 HI-TECH INDUSTRIAL PROPERTIES / DATA CENTRES Hi-Tech Industrial Properties / Data Centres Multi-tenanted Building Single-tenanted Building Total No. of Properties No. of Customers Gross Floor Area (sqm) 349, , ,551 Gross Revenue (S$m) Book Value/Valuation as at 31 March 2012 (S$m) ,301.7

71 A DECADE OF ENABLING BUSINESSES 71 HI-TECH INDUSTRIAL PROPERTIES/DATA CENTRES TENANTS INDUSTRY MIX (BY GROSS RENTAL INCOME) Electronics Telecommunication & Datacentre M&E and Machinery & Equipment Information Technology Textiles & Wearing Apparels Medical, Precision & Optical Life Science Fabricated Metal Products Rubber and Plastic Products Food Products & Beverages Hotels and restaurants Chemical Printing & Reproduction of Recorded Media Financial 3rd Party Logistics, Freight Forwarding Healthcare Products Others 25.2% 24.4% 18.0% 5.9% 4.2% 4.1% 1.4% 1.4% 1.2% 0.5% 1.0% 1.1% 0.9% 0.8% 0.4% 0.2% 9.3% TENANTS COUNTRY OF ORIGIN (BY GROSS RENTAL INCOME) Singapore 50.2% USA 23.3% Europe 21.9% Japan 1.2% Malaysia 0.7% Hong Kong 0.6% Australia 0.5% UK 0.5% Korea 0.4% China 0.2% Canada 0.1% India 0.1% Taiwan 0.1% Others 0.2%

72 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 72 HI-TECH INDUSTRIAL PROPERTIES / DATA CENTRES Property 25 Kim Chuan Telecommunications Complex Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) 02 Mar ,456 25, A Kim Chuan Road* 11 Dec ,885 32,885 Total (Hi-Tech Industrial (Data Centres)) ,341 58, Techlink # 19 Nov ,007 34, Siemens Center 12 Mar ,529 27, Infineon Building # 01 Dec ,278 27, Techpoint # 01 Dec ,107 41, Wisma Gulab 01 Dec ,557 11, KA Centre 02 Mar ,638 13, KA Place 02 Mar ,163 6, Pacific Tech Centre 01 Jul ,718 19, Techview # 05 Oct ,985 37, Jalan Kilang 27 Oct ,158 6, Tampines Industrial Ave 3 15 Nov ,593 9, Kallang Avenue 27 Feb ,584 14, Depot Road # 15 Mar ,626 26, Changi South Lane 01 Feb ,300 20, CGG Veritas Hub # 25 Mar ,782 8, Corporation Place Vendor: Corporation Place Limited 08 Dec ,185 58,065 Total (Hi-Tech Industrial Properties/ Data Centres) , , ,733 Notes: # Acquired from Ascendas Group The valuation for these properties were based on Direct Comparison Method, Capitalisation Approach and Discounted Cash Flow Analysis * Property was valued by independent valuer at S$174.3 million. A-REIT has recorded the property at S$174.3 million comprising S$113.1 million in land and building and S$61.2 million in M&E equipment

73 A DECADE OF ENABLING BUSINESSES 73 HI-TECH INDUSTRIAL PROPERTIES/DATA CENTRES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants 38 Kim Chuan Road % Singapore Telecommunications Limited 38A Kim Chuan Road % Singapore Telecommunications Limited % 31 Kaki Bukit Road % Federal Express Pacific Inc. Starhub Ltd. Alstom Grid Pte Ltd GE Pacific Private Limited 60 MacPherson Road % Siemens Pte Ltd Risis Private Limited Zender-fang Associates Pte Ltd 8 Kallang Sector % Infineon Technologies Asia Pacific Pte Ltd 10 Ang Mo Kio Street % Schneider Electric South East Asia (HQ) Pte Ltd STATS ChipPAC Ltd Schneider Electric IT Singapore Pte Ltd 190 MacPherson Road % RSH Limited 150 Kampong Ampat % Cavu Corp Pte Ltd Logicalis Singapore Pte Ltd Kawajun Singapore Pte Ltd 159 Kampong Ampat % Foster Electric (S) Pte Ltd America Ii Asia Pte Ltd Groz-Beckert Singapore Pte Ltd 1 Jalan Kilang Timor % Amway (Singapore) Pte Ltd Vantage International Management Company Pte. Ltd ISS Facility Services Private Limited 1 Kaki Bukit View % Bio-Rad Laboratories (Singapore) Pte Ltd Electro Scientific Industries Singapore Pte Ltd Merrill Lynch Global Services Pte Ltd 1 Jalan Kilang % CSE Transtel Pte Ltd Catalent CTS (Singapore) Private Limited Ingraphix Creative Services Pte Ltd 30 Tampines Industrial Ave % MBE Technology Pte Ltd 50 Kallang Avenue % New Creation Church Avnet Technology Solutions (Singapore) Pte Ltd Nu Horizons Electronics Asia Pte Ltd 138 Depot Road % Hewlett-Packard Singapore (Private) Limited 2 Changi South Lane % Flextronics Plastics (Singapore) Pte Ltd 9 Serangoon North Avenue % Veritas Geophysical (Asia Pacific) Pte Ltd 2 Corporation Road % Rockwell Automation Asia Pacific Business Center Pte Ltd. Rockwell Automation Southeast Asia Pte Ltd. ASM Assembly Systems Singapore Pte Ltd %

74 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 74 LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES Light Industrial Properties / Flatted Factories Multi-tenanted Building Single-tenanted Building Total No. of Properties No. of Customers Gross Floor Area (sqm) 344, , ,426 Gross Revenue (S$m) Book Value/Valuation as at 31 March 2012 (S$m)

75 A DECADE OF ENABLING BUSINESSES 75 LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES TENANTS INDUSTRY MIX (BY GROSS RENTAL INCOME) M&E and Machinery & Equipment Electronics Food Products & Beverages Rubber and Plastic Products Healthcare Products Construction Repair and Servicing of vehicles Fabricated Metal Products Textiles & Wearing Apparels Information Technology Printing & Reproduction of Recorded Media Medical, Precision & Optical Telecommunication & Datacentre Hotels and restaurants 3rd Party Logistics, Freight Forwarding Others 19.9% 13.3% 9.7% 7.5% 6.2% 5.4% 4.8% 4.8% 4.1% 3.2% 1.9% 1.6% 1.1% 0.8% 0.8% 14.9% TENANTS COUNTRY OF ORIGIN (BY GROSS RENTAL INCOME) Singapore 81.1% USA 7.1% Europe 7.1% Japan 2.8% India 0.6% Switzerland 0.4% Australia 0.3% UK 0.3% Hong Kong 0.2% Others 0.1%

76 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 76 LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES Property Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) 43 TechPlace I # 19 Nov ,981 59, TechPlace II # 19 Nov ,164 77,669 Total (Flatted Factories) , , Osim Headquarters 20 Jun ,683 15, Ghim Li Building 13 Oct ,046 7, Progen Building 29 Jul ,887 16, SB Building 26 Nov ,998 11, Alexandra Road 01 Dec ,699 12, Tai Seng Drive 01 Dec ,930 11, Volex Building 01 Dec ,931 8, Serangoon North Ave 4 27 Dec ,589 7, Tai Seng Drive 01 Apr ,929 12, Ubi Road 4 01 Apr ,087 7, Serangoon North Ave 4 04 Apr ,767 11, Hyflux Building 04 Apr ,465 16, Weltech Building 16 May ,998 6, BBR Building 21 Jun ,501 5, Tampines Biz-Hub 05 Oct ,086 14,494

77 A DECADE OF ENABLING BUSINESSES 77 LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants Blk Ang Mo Kio Ave 10 Blk Ang Mo Kio Ave % Hock Cheong Printing Pte Ltd. Hybrionic Pte Ltd Intero Enterprise Pte Ltd % Venture Corporation Limited Heraeus Materials Singapore Pte Ltd Kinergy Ltd % 65 Ubi Ave % Osim International Ltd 41 Changi South Ave % Ghim Li Global Pte Ltd 12 Woodlands Loop % Progen Holdings Limited 25 Changi South Street % SoilBuild Group Holdings Ltd 247 Alexandra Road % Volkswagen Group Singapore Pte Ltd 5 Tai Seng Drive % Nu Horizons Electronics Asia Pte Ltd Starasia Group Pte. Ltd Oni Global Pte. Ltd 35 Tampines Street % Volex (Asia) Pte Ltd 53 Serangoon North Ave % Heraeus Materials Singapore Pte Ltd Civica Pte Ltd FJ Benjamin Lifestyle Pte Ltd 3 Tai Seng Drive % Nucleus Connect Pte. Ltd Axxel Marketing Pte Ltd Da Vinci Home (Singapore) Pte. Ltd 27 Ubi Road % Smartflex Technology Pte Ltd Dou Yee Enterprises (S) Pte Ltd Geokinetics Singapore Pte. Ltd 52 Serangoon North Ave % AEM Holdings Ltd 202 Kallang Bahru % Hydrochem (S) Pte Ltd 25 Ubi Road % Sunningdale Precision Industries Ltd 50 Changi South Street % Singapore Piling & Civil Engineering Private Limited 11 Tampines Street % Sweet Dream Marketing Pte. Ltd I-VIC International Pte Ltd George Fischer Pte Ltd

78 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 78 LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES Property Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) Genting Lane 05 Oct ,917 9, Hoya Building # 05 Oct ,505 6, NNB Industrial Building 05 Oct ,537 9, A Tampines Street Dec ,011 9, Hamilton Sundstrand Building # 09 Dec ,737 16, Thales Building (I & II) # 03 Jan 06 & 20 Mar ,772 7, Aztech Building 21 Feb ,934 13, Ubi Biz-Hub 27 Mar ,978 10, Senoko Way 08 Jan ,616 10, Super Industrial Building 08 Jan ,457 18, Kallang Place 01 Feb ,490 12, Woodlands Loop 01 Feb ,422 16, Woodlands Terrace 01 Feb ,774 2, Woodlands Terrace 01 Feb ,810 2, Senoko* 15 May Feb ,362 44, Loyang Way 1 05-May ,725 12, Joo Koon Circle 30-Mar ,638 14,635 Total (Light Industrial/ Flatted Factories) , ,433 Notes: # Acquired from Ascendas Group * Senoko (previously known as 1 Senoko Avenue) was first acquired on 15 May 2007 for S$11.2 m and was subsequently redeveloped to maximise the allowable plot ratio. The redevelopment was completed on 16 February The valuation for these properties were based on Direct Comparison Method, Capitalisation Approach and Discounted Cash Flow Analysis

79 A DECADE OF ENABLING BUSINESSES 79 LIGHT INDUSTRIAL PROPERTIES / FLATTED FACTORIES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants 84 Genting Lane % Cityneon Holdings Limited Cityneon Management Services Pte. Ltd 455A Jalan Ahmad Ibrahim % Hoya Medical Singapore Pte.Ltd. 10 Woodlands Link % Ng Nam Bee Marketing Pte Ltd 37A Tampines Street % Steel Industries Private Limited 11 Changi North Rise % Hamilton Sunstrand Pacific Aerospace Pte Ltd 21 Changi North Rise % Thales Solutions Asia Pte. Ltd. 31 Ubi Road % Aztech Group Ltd. 150 Ubi Avenue % Blum South East Asia Pte Ltd Ban Leong Technologies Limited Sunlight Electrical Pte Ltd 26 Senoko Way % Super Coffee Corporation Pte. Ltd. 2 Senoko South Road % Super Coffee Corporation Pte. Ltd. 1 Kallang Place % Flextronics Plastics (Singapore) Pte Ltd 18 Woodlands Loop % Flextronics Plastics (Singapore) Pte Ltd 9 Woodlands Terrace % Flextronics Mould Manufacturing Pte. Ltd. 11 Woodlands Terrace % Flextronics Mould Manufacturing Pte. Ltd. 1 Senoko Avenue % Vitablend Asia Pacific Pte Ltd Nissin Foods (Asia) Pte Ltd Diadem Trading Pte Ltd 8 Loyang Way % Seow Khim Polythelene Co Pte Ltd 31 Joo Koon Circle % Flextronics Manufacturing (Singapore) Pte. Ltd %

80 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 80 LOGISTICS & DISTRIBUTION CENTRES Logistics & Distribution Centres Multi-tenanted Building Single-tenanted Building Total No. of Properties No. of Customers Gross Floor Area (sqm) 380, , ,134 Gross Revenue (S$m) Book Value/Valuation as at 31 March 2012 (S$m) ,323.0

81 A DECADE OF ENABLING BUSINESSES 81 LOGISTICS & DISTRIBUTION CENTRES TENANTS INDUSTRY MIX (BY GROSS RENTAL INCOME) 3rd Party Logistics, Freight Forwarding Distributors, trading company Others Information Technology Electronics M&E and Machinery & Equipment Healthcare Products Telecommunication & Datacentre Medical, Precision & Optical Hotels and restaurants Construction Financial Printing & Reproduction of Recorded Media 62.5% 22.0% 6.6% 3.6% 1.1% 1.1% 1.0% 0.8% 0.5% 0.3% 0.3% 0.1% 0.1% TENANTS COUNTRY OF ORIGIN (BY GROSS RENTAL INCOME) Singapore 75.0% USA 7.2% Hong Kong 6.2% Others 3.7% Europe 3.3% Japan 3.0% UK 1.2% Taiwan 0.3% Malaysia 0.1%

82 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 82 LOGISTICS & DISTRIBUTION CENTRES Property Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) 77 IDS Logistics Corporate HQ 19 Feb ,751 21, LogisTech 04 Mar ,003 27, Toh Guan Road 05 Mar ,147 22, Changi Logistics Centre 09 Mar ,742 39, Nan Wah Building 31 May ,794 15, C&P Logistics Hub 21 Jul , , Xilin Districentre Building A&B 02 Dec ,113 20, MacDermid Building 02 Dec ,085 5, Xilin Districentre Building D 09 Dec ,651 14, Changi South Street 3 28 Dec ,208 16, Freight Links (Toh Guan) Building 28 Dec ,741 23,723

83 A DECADE OF ENABLING BUSINESSES 83 LOGISTICS & DISTRIBUTION CENTRES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants 279 Jalan Ahmad Ibrahim % Li & Fung (1937) Management Singapore Pte. Ltd. 3 Changi North Street % JSI Logistics (S) Pte. Ltd. Speedmark Logistics Pte Ltd Nuance-Watson (Singapore) Pte Ltd 10 Toh Guan Road % Cummins Power Generation (S) Pte Ltd The Furniture Mall Safe2travel Pte Ltd 19 Loyang Way % Future Electronics Inc (Distribution) Pte Ltd Toll Logistics (Asia) Limited Ups Scs (Singapore) Pte Ltd. 4 Changi South Lane % Nan Wah Marketing Pte Ltd Leeway Trans-Act Pte Ltd Royale Logistics Pte Ltd 40 Penjuru Lane % C & P Holdings Pte Ltd 3 Changi South Street % National Library Board K Line Logistics (Singapore) Pte. Ltd. Faro Singapore Pte. Ltd. 20 Tuas Ave % Macdermid Singapore Pte. Ltd. 6 Changi South Street % Schenker Singapore Pte Ltd Arrow Electronics Asia (S) Pte Ltd. Cargo Distribution Pte Ltd 9 Changi South Street % Yusen Logistics (Singapore) Pte Ltd. TNT Express Worldwide (Singapore) Pte Ltd JNBK Corporation Pte Ltd. 5 Toh Guan Road East % Freight Links Express Distripark Pte Ltd

84 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 84 LOGISTICS & DISTRIBUTION CENTRES Property Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) 88 Xilin Districentre Building C 05 May ,708 13, Senkee Logistics Hub (Phase I & II) 23 Sep 05 & 01 Feb ,842 71, Changi South Lane 05 Oct ,768 23, Clementi # 05 Oct ,505 23, JEL Centre 18 Nov ,107 9, Jalan Buroh 14 Jun ,140 47, Sembawang Kimtrans Logistics Centre 14 Jun ,353 15, Goldin Logistics Hub 05 Dec ,094 20, Sim Siang Choon Building 19 Mar ,981 12, Changi North Way 29 Jul ,961 28, Pioneer Hub 12 Aug ,048 81, Alps Avenue 02 Sep ,756 11, Alps Avenue 20 Jan ,277 26,277 Total (Logistics & Distribution Centres) 1, , , ,421 Notes: # Acquired from Ascendas Group The valuation for these properties were based on Direct Comparison Method, Capitalisation Approach and Discounted Cash Flow Analysis

85 A DECADE OF ENABLING BUSINESSES 85 LOGISTICS & DISTRIBUTION CENTRES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants 7 Changi South Street % DHL Supply Chain Singapore Pte Ltd. Brightpoint Singapore Pte. Ltd. Acushnet Singapore Pte Ltd 19 & 21 Pandan Avenue % Senkee Logistics Pte Ltd 1 Changi South Lane % SKF Asia Pacific Pte. Ltd. 2 Clementi Loop % Logwin Air + Ocean Singapore Pte. Ltd. Korchina Logistics (Singapore) Pte Ltd Arrow Electronics Asia (S) Pte Ltd. 11 Changi North Way % GSH Corporation Ltd. 21 Jalan Buroh % Logistics 21 Pte Ltd 30 Old Toh Tuck Road % Toll Logistics (Asia) Limited 6 Pioneer Walk % Goldin Enterprise Private Limited 21 Changi South Avenue % Sim Siang Choon Hardware (S) Pte Ltd 15 Changi North Way % Zuellig Pharma Pte. Ltd. 15 Pioneer Walk % Equinix Singapore Pte Ltd. Ameroid Logistics (S) Pte Ltd Crown Worldwide Pte Ltd 71 Alps Avenue % Expeditors Singapore Pte Ltd 90 Alps Avenue % Federal Express Corporation %

86 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 86 WAREHOUSE RETAIL FACILITIES Property Acquisition/ Completion Date Purchase Price/ Development Cost (S$m) Book Value / Valuation as at 31 March 2012 (S$m) Gross Floor Area (sqm) Net Lettable Area (sqm) 101 Courts Megastore 30 Nov ,410 28, Giant Hypermart 06 Feb ,194 42,178 Total (Warehouse Retail Facilities) ,604 70,588 Notes: The valuation for these properties were based on Direct Comparison Method, Capitalisation Approach and Discounted Cash Flow Analysis

87 A DECADE OF ENABLING BUSINESSES 87 WAREHOUSE RETAIL FACILITIES Address Gross Income for FY11/12 (S$m) Occupancy Rate as at 31 March 2012 (%) Major Tenants 50 Tampines North Drive % Courts (Singapore) Pte. Ltd. 21 Tampines North Drive % Cold Storage Singapore (1983) Pte Ltd %

88 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 88 INDEPENDENT MARKET STUDY (SINGAPORE) BY COLLIERS INTERNATIONAL 1. Macroeconomic Trends Singapore s Gross Domestic Product ( GDP ) grew by 4.9% year-on-year ( YoY ) in 2011, a significant slowdown from an unprecedented expansion of 14.8% YoY in Over the same period, manufacturing output, manufacturing fixed asset investments ( FAI ) and transport and storage output increased by 7.6%, 13.0% and 4.7%, respectively. Singapore s economy registered a modest growth of 1.6% YoY in 1Q 2012 or 9.9% on a seasonally-adjusted annualised quarteron-quarter ( QoQ ) basis. The improved growth momentum was largely lifted by a sequential upturn in the manufacturing sector. However, compared to 1Q 2011, overall manufacturing output contracted 2.0% YoY in 1Q Continued global economic uncertainties as well as challenges on the domestic front including weaker business conditions, rising business costs and a tightening of the labour market are expected to weigh on Singapore s trade-dependent economy. Singapore s GDP is forecast by the Ministry of Trade & Industry to grow at a modest rate of 1% to 3% in Business And Science Parks 2.1 Supply And Demand The islandwide stock of business park space in Singapore amounted to 1.4 million sq m as of 4Q 2011, accounting for just 3.7% of the total islandwide industrial stock. This is after the addition of some 16,000 sq m of net new business park space to the stock in The islandwide occupancy rate increased to 82.8% as of 4Q 2011 from 75.5% a year earlier, as a pick-up in net new absorption of business park space to 116,000 sq m in 2011 outstripped net new supply in the year. Net New and Potential Supply of Business Park Space (as of 4Q 2011) Net Floor Area ( 000 sq m) Completed Upcoming An estimated 505,000 sq m 1 (net floor area) of new business park space is expected to be completed from 2012 to This reflects an annual average supply of 126,000 sq m during the four years, which is 44.8% higher than the annual average supply of 87,000 sq m for the period from 2003 to 2011 and 65.8% above the annual net new demand of 76,000 sq m during the same period. Nevertheless, as at 4Q 2011, an estimated 60% of the upcoming supply has already been pre-committed ahead of building completions. The majority 71.1% of the total upcoming supply will be located in the central region, constituting 58.6% from one-north and 12.5% from the Singapore Science Park. Another 24.8% of the new supply is expected to materialise from the Changi Business Park located in the eastern region and the remaining 4.1% will come from the Cleantech Park situated in the western region. Demand for business park space totalled 116,000 sq m in 2011, up 36.5% YoY. With net new demand outpacing the net new supply of just 18,000 sq m during the year, the islandwide occupancy rate increased to 82.8% as of 4Q 2011 but remained 11 percentage points below the 4Q 2008 peak of 93.8%. Net New Demand and Average Occupancy Rate of Business Park Space Net Floor Area ( 000 sq m) Net New Demand ( 000 sq m) Average Occupancy Rate Rents of Business Park Space With the return of business confidence amid a buoyant economy on the domestic front and a recovering economy on the broader global front, demand for business park space firmed in 2010, helping rents to recover by 8.1% YoY to end the year at S$3.60 per sq ft (S$38.75 per sq m) per month Source: URA/Colliers International Singapore Research % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Average Occupancy Rate Note: F denoted forecast Source: URA/Colliers International Singapore Research F 2013F 2014F 2015F Rents continued to trend upwards in 2011 as demand outpaced supply. As of 4Q 2011, the median rent for business park space stood at S$3.90 per sq ft (S$41.98 per sq m) per month, up 8.3% from 4Q 2010.

89 A DECADE OF ENABLING BUSINESSES 89 INDEPENDENT MARKET STUDY (SINGAPORE) BY COLLIERS INTERNATIONAL 3. Hi-Tech Industrial 3.1 Supply and Demand Official statistics on the hi-tech 2 or the independent highspecifications (high-specs) industrial market are not available. Based on Colliers International s research, the supply of new independent high-specs space was relatively limited over the past five to six years, with the majority or close to 80% of the existing stock likely to have been completed prior to As of 4Q 2011, Colliers International estimated that the stock of independent high-specs industrial space totalled 928,000 sq m, up 1.0% YoY. The existing stock could increase by the addition of some 113,000 sq m 3 of new space (net floor area) from 2012 to 2014 or an average of about 37,700 sq m per year. This is almost four times the estimated annual net new supply registered in 2010 and 2011 and 47.8% higher than the estimated net new demand of 25,500 sq m seen during the same period. Notwithstanding the seemingly large upcoming supply, approximately 47% of this had been pre-committed as of 4Q The new supply would comprise NTT Worldwide Telecommunications Corporation s data centre project located on Serangoon North Avenue 4 (12,300 sq m), Google Asia Pacific Pte Ltd s data centre (31,100 sq m) on Jurong West Avenue 2/ Jurong West Street 23, Ho Bee s One Pemimpin project (10,700 sq m) and an extension of UE Bizhub Central (9,000 sq m) in the Ang Mo Kio area. technology companies. The asset enhancement initiative ( AEI ) will involve the building of a four-storey extension wing, a multi-storey car park and a canteen, as well as the upgrading of common facilities. The AEI is expected to add approximately 4,600 sq m of gross floor area ( GFA ) when completed in 2Q MIT also plans to carry out AEI at the flatted factory cluster located in Toa Payoh North. The AEI involves the development of a new high-tech industrial building and an amenity block with an air-conditioned canteen on the existing open car park space, adding approximately 13,900 sq m of GFA. The AEI is targeted to be completed in 4Q According to Colliers International s estimates, a total of about 24,500 sq m of independent high-specs industrial space was absorbed in 2011, supported by continued albeit slower growth in the manufacturing sector. Although net new demand in 2011 is down 7.5% YoY, it outstripped the net new supply of 9,100 sq m during the year. This helped to lift the average occupancy rate by 1.8 percentage points YoY to about 86.8% as of 4Q 2011, according to Colliers International s estimates. 3.2 Rents of Independent High-Specs Space Based on Colliers International s tracking of a basket of properties, the monthly gross rents of prime independent multiuser high-specs industrial space escalated by 8.5% YoY and 8.7% YoY for ground and upper floor space to average at S$3.46 per sq ft (S$37.24 per sq m) and S$3.25 per sq ft (S$34.98 per sq m), respectively as of 4Q 2011, which are 17.2% and 12.2% lower compared to their corresponding peaks in 2Q Net New and Potential Supply of Independent High-Specifications Space (as of 4Q 2011) Net Floor Area ( 000 sq m) Completed Upcoming Average Monthly Gross Rents for Prime Independent High-Specifications Industrial Space S$ Per Sq Ft / Month Ground Floor Upper Floors F 2013F 2014F 2015F Note: F denoted forecast Source: URA/Colliers International Singapore Research Source: Colliers International Singapore Research Additionally, Mapletree Industrial Trust ( MIT ) announced in January 2012, its plans to reposition the cluster of flatted factories located on the Marsiling Industrial Estate Road 3 as a high-tech industrial facility for biomedical and medical 1 2 Potential supply includes those under construction and planned but the actual level of new supply could increase / decrease due to changes in the status of planned projects. Colliers International Singapore Research defines this as Independent Highspecifications or High-Specs industrial space. 3 Potential supply includes those under construction and planned but the actual level of new supply could increase / decrease due to changes in the status of planned projects.

90 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 90 INDEPENDENT MARKET STUDY (SINGAPORE) BY COLLIERS INTERNATIONAL 4. Light Industrial/Flatted Factories 4.1 Supply and Demand As of 4Q 2011, Singapore is estimated to hold an islandwide stock of 28.9 million sq m 4 of light industrial/conventional factory space or about 92.5% of all factory space in Singapore. This was an increase of 3.6% from 27.9 million sq m as of 4Q 2009, following the net new addition of 463,000 sq m in 2010 and 575,000 sq m in An estimated 2.2 million sq m 5 (net floor area) of new light industrial/conventional factory space is expected to be completed between 2012 and This represents an average addition of 440,000 sq m of light industrial/conventional factory space per year, about 15.2% lower than the annual average net new supply of 519,000 sq m in 2010 and 2011 and approximately 33.6% below the annual average net new demand of 663,000 sq m in the same period. Net new demand 6 for light industrial/conventional factory space totalled 547,000 sq m in 2011, following the 780,000 sq m absorption in 2010 on the back of a strong rebound in Singapore s manufacturing sector output and economy. As of 4Q 2011, the average occupancy rate for light industrial/ conventional industrial space remained unchanged at 93.9% compared to a year ago. 4.2 Rents of Light Industrial/Conventional Multi-User Factory Space According to the Urban Redevelopment Authority ( URA ), the monthly median gross rent for islandwide multi-user space surged by 16.2% YoY to S$1.91 per sq ft (S$20.56 per sq m) as of 4Q 2011, after escalating by 11.7% YoY in 2010 as a result of a pick-up in demand on the back of an economic rebound. Median Gross Rents of Islandwide Multi-User Factory Space Logistics And Distribution Centres 5.1 Supply and Demand The net addition of some 158,000 sq m of new space in 2011 raised the total warehouse stock to 7.1 million sq m as of 4Q According to information sourced from the URA and Colliers International s market research as of 4Q 2011, a potential warehouse supply totalling 846,400 sq m 7 in net floor area is expected to be completed between 2012 and This translates into an average annual new supply of about 169,300 sq m, 7.2% higher than the 158,000 sq m added in 2011 but 4.4% less than the 10-year average annual net new supply of 177,000 sq m from 2002 to This is also 15.9% lower than the annual average net new demand of 201,300 sq m in the last 10 years. Net Floor Area ( 000 sq m) Net New and Potential Supply of Warehouse Space (as of 4Q 2011) 400 Completed 350 Upcoming Source: URA/Colliers International Singapore Research 2007 The Singapore warehouse market has grown from strength to strength, with the net new demand for warehouse space totalling 347,000 sq m in 2011, almost doubling the net new absorption level of 180,000 sq m in With demand outstripping supply, the occupancy rate for islandwide warehouse space escalated to 94.3% as of 4Q 2011, a new high since the last peak of 95.5% in Islandwide Net New Demand and Occupancy Rate of Warehouse Space F 2013F 2013F 2014F S$ Per Sq Ft / Month Source: URA/Colliers International Singapore Research Net Floor Area ( 000 sq m) % 450 Net New Demand ( 000 sq m) Occupancy Rate % 92% % 88% % 84% % 80% Source: URA/Colliers International Singapore Research Occupancy Rate

91 A DECADE OF ENABLING BUSINESSES 91 INDEPENDENT MARKET STUDY (SINGAPORE) BY COLLIERS INTERNATIONAL 5.2 Rents of Multi-User Warehouse Space According to the URA, the monthly median gross rent for islandwide warehouse space escalated by 13.4% YoY to S$1.85 per sq ft (S$19.91 per sq m) as of 4Q 2011, after surging by 17.7% YoY in 2010 on the back of improved demand that was supported by an economic rebound. Median Gross Rents of Islandwide Warehouse Space S$ Per Sq ft / Month Source: URA/Colliers International Singapore Research 6. Outlook Downside risks in the external environment will continue to weigh on Singapore s economic growth in Companies that are highly exposed to global headwinds include those in the manufacturing as well as transport and storage sectors, although pockets of growth are expected from some clusters: The pharmaceutical and medical technology segments in the biomedical manufacturing cluster on the back of an expected higher output with improved demand; The electronics cluster, in which higher levels of production are anticipated for the semiconductor, data storage and electronic modules and components segments due to expanded capacities and improved global demand for chips; The semiconductor equipment, bonding wires and connectors manufacturing segments within the precision engineering cluster; The aerospace segment, wherein sustained demand for repair and servicing jobs for the Asia-Pacific region is expected; The marine and offshore engineering segment is also expected to foresee a higher level of offshore activity on the back of secured orders; and The transport engineering cluster. In addition, Singapore s competitive edge is increasingly being challenged by the likes of Malaysia, Indonesia and Thailand and this is being compounded by rising wages and rents. Nevertheless, Singapore s head start in moving up the value chain has positioned it ahead of other Asian cities in capabilities and knowledge since the 1990s. This wing for investment growth in research and development ( R&D ) could offset part of the manufacturing investments withdrawn. Singapore s business-friendly environment, excellent infrastructural facilities and high-quality and skilled workforce as well as the close cultural connectivity to South-East Asia and the greater China market will continue to give the country an edge in attracting firms that value these factors over and above business costs. The city-state s Global-Asia positioning will continue to encourage companies to establish a presence here. The Economic Development Board has indicated its confidence in Singapore s continued attractiveness to global companies and Asian enterprises and it expects FAI for 2012 to reach S$13 to S$15 billion in 2012, compared to 2011 s FAI of S$13.7 billion, in spite of the prevailing global economic uncertainty. Hence, although overriding caution in the industrial property sector is expected to weigh on current market sentiments, demand for industrial space could be shored up by, among other factors, expansion in R&D functions as well as the continuing presence or incoming of firms looking to leverage Singapore s Global-Asia positioning to tap on growth opportunities in Asia and globally. This should help sustain rents at 2011 s level and volatility in overall industrial rents should hover within a 3% range for the whole of Official statistics on the light industrial/conventional factory market are unavailable. The current stock of light industrial/conventional factory space is estimated by deducting the total stock of business and science park space (sourced from the URA) and Colliers International s estimated total stock of independent high-specs industrial space, from the total islandwide stock of all types of factory space (sourced from the URA). While this includes independent single-user high-specs industrial space, it is deemed to provide a good representation of the light industrial/conventional factory segment as independent single-user high-specs industrial space comprised only a small proportion of the overall factory stock in Singapore. Potential supply includes those under construction and planned but the actual level of new supply could increase / decrease due to changes in the status of planned projects. Net new demand and in turn occupancy rate are estimated based on the same methodology adopted for supply estimation. Potential supply includes those under construction and planned but the actual level of new supply could increase / decrease due to changes in the status of planned projects.

92 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 92 INDEPENDENT MARKET STUDY (BEIJING & SHANGHAI) BY JONES LANG LASALLE I. Business Parks Market Commentary China Macro Economic Overview 1. GDP China s economy has experienced a 20 year fast growth period since 1990s. The average growth rate of GDP (Gross Domestic Product) reached 16.9% from 2005 to Moving ahead, the economy is expected to slowdown given the projected drop in export growth and the central government shifting attention to industry upgrading and structure adjustment to solve the social issues brought about during the rapid development of economy during the past years. GDP (100mil RMB) 500, , , , , , , , , , % GDP Growth Rate 17.0% Resource by China Statistics Bureau 22.9% China GDP 18.1% CPI After the economy stimulation plan in 2009 and 2010, overheated investment and excessive fluidity pushed the CPI up to 5.4% by the end of 2011 despite government s efforts bring inflation closer to 4%. Inflation is expected to decelerate in 2012 as impact of tighter monetary stance feeds through and global commodity costs moderate. 3. FDI Led and guided by the Open and Reform policy, China has absorbed huge amount of foreign investment from other countries in the world. Although total amount dropped to 95 billion USD in 2009 due to global financial crisis, FDI exceeded 100 billion USD for the first time in history in 2010, thus showing as China as the hottest investment location target in Asia Pacific region for both industrial enterprises and financial institutions. 8.6% % % % 20% 15% 10% 5% 0% GDP Growth Rate 000 sqm FDI ( 000 USD) 1,400 1,200 1, Shanghai 4. Supply Within Shanghai, there are three major state development zones, Zhangjiang, Jinqiao and Caohejing, with similar incentive policies. The main differentiating factors of a business park space lies in the location and targeted industries of local authorities. Recently, due to the city s evolution to the next stage of industrialization which leads to encouragement in the establishment of R&D centers and regional headquarters, new business park areas such as Songjiang, Jiading, Baoshan start to emerge. 1,200 1, % before 2005 Shanghai Business Park Market Historical Supply 148,002 35,713 China Historial FDI FDI Growth Rate % Resource by China Statistics Bureau Historical Supply ( 000 sqm) % ,324 Resource by China Statistics Bureau 45.0% ,006, , , , ,532 47, Q % 40.00% 30.00% 10.00% 0.00% % Annual supply reached historical peak in A total of 75% of supply is contributed from Zhangjiang (340,000 sqm), emerging areas like Pujiang, Shibei (200,000 sqm) and Lujiazui Software Park located in Pudong contributed another 210,000 sqm % % 9.7% 0% FDI Growth Rate

93 A DECADE OF ENABLING BUSINESSES 93 INDEPENDENT MARKET STUDY (BEIJING & SHANGHAI) BY JONES LANG LASALLE Due to the financial crisis in the following two years, a number of projects were delayed due to a negative market outlook by developers. This led to a continued lower supply from 2008 to As the economy recovered in 2010 and 2011, demand for space picked up and development activities recovered along with the macroeconomic trend resulting in a greater market supply in , % 347, % Shanghai Business Park Sub-Market Market Stock Breakdown 180, , % 4.4% 131,021 33, % 0.8% 914, % 390, % 1,583, % ZJ JQ CHJ SB LK YP PJ ZY WGQ In term of total supply by location, Zhangjiang is still the most influential and largest sub-market (38.6%) in Shanghai in terms of area and number of projects, followed by Caohejing (22.3%) and Jinqiao (9.5%). 5. Demand The demand for business park space has been growing steadily in the recent years. Zhangjiang, Jinqiao and Caohejing submarkets played a pivotal role, accounting for up to 70% of the total market absorption. As business cost continues to escalate in central business district and government s directions towards higher valueadding industries such as telecommunications, software development, bio pharmaceutical, cultural and innovation, continual demand for business parks space in Shanghai should be sustainable. In addition, the consolidation of functions & business space in multiple cities by multi-national companies ( MNCs ), such as MSD and Nike into Shanghai has further increased the demand for business park space which features more appropriate design & layout and building efficiency to suit consolidating functions such as R&D, design, administration, backup office, HR and finance. 6. Vacancy Rate The vacancy rate has been declining in past years due to the strong market demand. Most of the new supply of Zhangjiang, Jinqiao and Caohejing were fully absorbed within 1 or 2 years from the time they were put up for lease in the open market. With the economy recovery since 2009 and limited land supply for business park space in key locations, the annual demand has been exceeding annual supply which should result in healthy market growth with broad market vacancy on declining trend in the near term. Supply/Demand ( 000 sqm) 1, Shanghai Business Parks Historical Supply, Demand and Vacancy Rate 66.5% Supply ( 000 sqm) Demand ( 000 sqm) Vacancy Rate ( 000 sqm) 53.3% 57.5% 44.7% 37.6% 22.9% 14.6% 11.7% Q1 Source: Jones Lang LaSalle 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 7. Rental Rental growth is in line with the increasing occupancy rate. The market rental rates since 2005/2006 were generally on an upward trend saved for slight decline in 2007 due to surge in supply in that particular year. As the trend of consolidation by MNCs continues, the supply of prime and well located land will continue to diminish further and small to middle sized companies are sidelined to having to put up in higher rent facilities due to lower bargaining power and rising overall development costs of developers. As such, it is reasonable to expect further increase the rental rates in the coming years though the magnitude of rental growth may track the overall economic sentiment and performance. 0% Vacancy Rate

94 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 94 INDEPENDENT MARKET STUDY (BEIJING & SHANGHAI) BY JONES LANG LASALLE Shanghai Business Parks Historical Supply, Demand and Vacancy Rate Supply ( 000 sqm) 1,000 Demand ( 000 sqm) Rental (RMB/psm/day) Q Source: Jones Lang LaSalle Supply/Demand ( 000 sqm) 8. Capital Value There are very limited projects for sale in the Business Parks market as the functional zones strictly regulate the sale policies to avoid speculation of such properties and wastage of land resource. From the properties whereby strata sale is allowed, the transacted price ranges from RMB14,000psm to RMB22,000psm depending on size, location and specifications. Beijing 1. Supply 3,500 3,000 2,500 2,000 1, Total Stock ( 000 sqm) Q1 Source: Resource Jones by Lang China LaSalle Statistics Research Bureau RMB/psm/day traditionally an off peak season, with only 39,826 sqm of net new take up mainly in BEZ area (60%). This is a decrease of more than 50% y-o-y. Source: Jones Lang LaSalle Research 2. Vacancy Rate Annual Supply/Net Take Up ( 000 sqm) 27% 2,500 2,000 1, % 0 8% 5% 4% Submarket Share of Business Park 7% 21% 24% Annual Supply, Absorption & Vacancy (RMB/sqm/day) Annual Supply ( 000 sqm) Net Take up ( 000 sqm) Vacancy (%) BDA DongSheng BEZ East Zone BEZ West Zone ZPark ZGC Enviromental Protection Park Shangdi Information Industry Base Yongfeng Hi-Tech ZGC Changping Park Q12 Source: Jones Lang LaSalle Research With limited supply, vacancy rate has been stable since 2010 declining to 6.6% in 1Q However, significant new supply is expected in the next three years, equivalent to almost 0.7 times of the current stock. Therefore, it is anticipated that the vacancy rate will rise in the next years. 3% 20% 15% 10% 5% 0% Vacancy Total stock for business park as at 1Q12 was 2,879,273 sqm. There is no new supply during this period. ZPark and Shangdi have the largest share of business park space of 984,111 sqm (35%), with Beijing Electronic Zone (BEZ) at 900,461 sqm (31.0%) and Beijing Economic & Technological Development Area (BDA) at 616,998 sqm (21.0%). The net absorption in 1Q2012 is

95 A DECADE OF ENABLING BUSINESSES 95 INDEPENDENT MARKET STUDY (BEIJING & SHANGHAI) BY JONES LANG LASALLE 3. Rental As a result of the current strong demand and relatively limited new supply, the average rent of Business Park has been on the rising trend since 3Q09 and achieving RMB 3.08/sqm/day as at 1Q Capital Value Capital Value (RMB 000) Net Effective Rent (RMB/sqm/day) 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 Source: Jones Lang LaSalle Research Capital Value (RMB) & Increase rate CV (RMB 000) Increase rate Q F 2013F 2014F Source: Jones Lang LaSalle Research Average capital values in 1Q12 reached RMB 15,800 per sqm, but restrictions on real estate by the government slowed the price growth to 5.3%. Outlook for capital value is stable especially so for established business park location % 30% 20% 10% 0% -10% -20% Rate of Increase 5. Yield Gross yield is expected to compress further due to higher development costs of developer contributed by rising land costs, labour and construction cost and such trend is expected to continue unless new stimulus policies by the Government to improve market demand and thus positive rental growth. Definitions Business Park Building: A business park building normally caters for office or R&D use and accommodates companies from hi-tech, chemical, bio-medical industries, etc. The key differentiating factor between a Business Park property from a general office building is that Business Parks are usually built on land zoned for Industrial or R&D use. A secondary factor is that the positioning for such properties and the property specifications and targeted clients of business park buildings are strongly influenced by the incentive policies, industry positioning of its area and surrounding industry clusters. Supply (Annual or Quarterly): the completed leasable floor area of properties in the market during a year or a quarter; Demand (Annual or Quarterly): the absorbed (leased) floor area during a year or a quarter; Rental: effective rental - face rental net of rent free period or fit-out period. Occupancy Rate: The measure of the percentage of floor space occupied as compared to the total lettable area stock at the time of measure. Capital Value: average sale price of properties that are for sale by en-bloc, or strata-title. Yield: gross yield which means annual gross rental income over gross capital value of the properties. In some special market, yield stands for a return rate based on a reasonable difference compared against the yield of Grade B or decentralized office buildings.

96 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 96 ENHANCING RELATIONS Enhancing Relations Since the IPO of A-REIT in 2002, the Manager has taken seriously its responsibilities for the impact of A-REIT s activities on the environment, consumers, employees, communities and the general public. We rely on a set of principles, shaped by our values, to support our community work so as to strive for long-lasting success. Sustainable Development 3 Changi Business Park Crescent and Senoko was awarded the Gold Green Mark Certification by Singapore s Building & Construction Authority (BCA). The BCA Green Mark Scheme is an initiative to drive Singapore s construction industry towards more environment-friendly buildings and promote sustainability in the built environment and raise environmental awareness among developers, designers and builders. Additionally, the BCA Green Mark provides a meaningful differentiation of buildings in the real estate market. It is a benchmarking scheme which incorporates internationally recognized best practices in environment design and performance. 1, 3 & 5 Changi Business Park Crescent was named the Winner in the Industrial Category of Federation Internationale des Administrateurs de Bien-Conselis Immobiliers ( FIABCI ) Singapore Property Awards The award recognises excellence in industrial building, in terms of design, aesthetics, functionality, contribution to the built environment and community at large. Internationally, 1, 3 & 5 Changi Business Park Crescent was accredited by FIABCI and was awarded the runner-up of FIABCI Prix D Excellence Awards 2012 International in the Industrial Category. These awards further demonstrate A-REIT s design and development capabilities to build a sustainable environment for the future. Sustainable Environment A-REIT, in conjunction with Ascendas, showcased the fourth annual Green Month with a Go Green 360 theme. Started in 2008, the Green Month aims to educate and promote an environmentally-aware way of life, re-designing our practices and re-defining the way we work, live and play, incorporating environment awareness in everything we do, 360 degrees around.

97 A DECADE OF ENABLING BUSINESSES 97 ENHANCING RELATIONS Events were organized for the annual month-long campaign to engage the tenant community to adopt green practices. The highlight of the month was a design contest where students were invited to unleash their creativity to produce imaginative creations from recycled materials. The top 10 entries in the contest were showcased at three locations, namely The Galen at Singapore Science Park, ICON at International Business Park and Plaza 8 at Changi Business Park, for tenants and members of the public to cast a vote for their favourite entries. In addition, a series of interactive lunchtime talks and Green Exchange roadshows were organized. Participating tenants receive a goodie-bag in exchange for recyclable and renewable materials at various Ascendas business space locations across Singapore. More than 200kg of paper has been collected for recycling. Furthermore, the proceeds from the sale of the 12kg of can tabs collected were donated to Project 11, a unique and meaningful project that helps to recycle the ring tabs into materials for making components of prosthetic limbs that will benefit the physically challenged. As part of the month s activities, the Green Day brought tenants employees to Bishan Home where participants actively helped to fix energy-saving T5 eco-friendly light bulbs for the home and perform minor painting works to improve the aesthetics of the home. Participants also spent time mingling with and befriending the home s residents, bringing much enjoyment to the residents. We constantly seek to identify opportunities and methods to reduce energy consumption through improvements in facility design and operations. Energy consumption audit is conducted on A-REIT s portfolio of properties to identify potential opportunities to enhance energy efficiency so as to create a green and sustainable environment. Seven buildings have their air-conditioning equipment improved, resulting in a reduction of carbon emissions of 3,310 tons per year. This translates to 6,952 MWh of energy saved. Fitness Network, a gym at the at the Singapore Science Park, actively promotes workplace health among tenants in the park. Tenants of Ascendas and A-REIT properties in Singapore can make arrangement for a visit to the gymnasium for the professionals at Fitness Network to explain details and benefits of the health and fitness For The Less Privileged In The Community Ascendas and AFM continued with its humanitarian efforts for the less privileged in the belief of giving back to the community in which they operate and supporting the less fortunate. During Ascendas annual Dinner & Dance in 2011, Ascendas staff raised a sum of S$57,000 for the Movement for the Intellectually Disabled of Singapore. In addition, Ascendas sponsored a charity event by non-profit organization by committing S$20,000 to help fund the education of underprivileged students in the Philippines. The Manager donated S$100,000 to the Straits Times School Pocket Money to mark the 10th anniversary of A-REIT. The Straits Times School Pocket Money Fund was initiated by The Straits Times, a Singapore s broadsheet publication, to heighten public awareness of the plight of children who were attending school without proper breakfast or pocket money. The fund seeks to alleviate the financial strain faced by lowincome parents in providing for their children s education through the provision of pocket money to these less fortunate children. To further extend a helping hand, the Manager made a contribution to the Children s Society s 1000 Enterprise for Children-in-need fund raising initiative. The 1000 Enterprises for Children-in-Need fund raising initiative is a project that hopes to encourage 1000 small, medium and large enterprises to donate S$1,000 or more each year for the next three years. Heath & Goodwill For The Community With a continuous focus to foster a healthy lifestyle amongst people working within the Singapore Science Park, the annual Sporting Lifestyle Week organized a series of activities which includes sports seminar; bazaar and competitive games were organized in the name of health, fun and fitness.

98 ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT FY11/12 98 INVESTOR RELATIONS Since A-REIT s listing in November 2002, the Manager has underpinned its corporate governance framework with four guiding principles of Timeliness, Objectivity, Clarity and Consistency. The objective is to ensure that its corporate governance framework is comprehensive and that it meets the prevailing best practices. In addition to the conventional channels of communications, such as investors meetings and briefings (including non-deal roadshows), teleconference, publications, annual reports and A-REIT s website, the Manager constantly seek out new and more efficient channels to better reach out and engage with stakeholders. The commitment and effort in maintaining informative channels of communication and adhering to the highest standards of timely disclosure & transparency has gain recognition and accolades. A-REIT s Annual Report FY10/11 won the Bronze award in the REITs & Business Trusts (Best Annual Report) category at the Singapore Corporate Awards in July The Singapore Corporate Awards seek to recognise and honour SGX-listed companies as well as individuals who, through their corporate practices, have helped to raise Singapore s corporate disclosure standards and corporate governance, showcase SGX-listed companies and key decision makers who effectively implement and promote corporate disclosure standards and corporate governance in their companies as well as create a prestigious corporate event for listed companies chief executive officers, chief financial officers, directors and substantial shareholders to network, socialise and share ideas and views on good corporate governance. In October 2011, A-REIT was awarded the Most Transparent Company Award in the REIT category in the SIAS investors choice award and earned a Merit Award in the Mature Markets Market Disclosure Category at the APREA Best Practices Award. In December 2011, A-REIT also clinched the Certificate of Excellence in Investor Relations in the IR Magazine Awards (South East Asia). This certificate recognizes the significant efforts the Managers has made throughout the year. These accolades are a reflection of the recognition by investors, locally and internationally, of A-REIT in the various aspects of corporate governance and management. The Manager will continue to communicate corporate information on A-REIT on a proactive basis, including announcements, corporate earnings results to investor & media relation to drive awareness and promote interest in A-REIT through various platforms.