CONTENTS. Thirty (30) Largest Unitholders Notice of Annual General Meeting Proxy Form... Enclosed

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3 CONTENTS Financial Highlights Glossary Corporate Information Profile of Directors of the Manager Chairman s Statement Statement of Corporate Governance Statement of Risk Management and Internal Cotrol Additional Compliance Information Financial Statements Supplementary Information Analysis of Unitholdings Thirty (30) Largest Unitholders Notice of Annual General Meeting Proxy Form... Enclosed

4 FINANCIAL HIGHLIGHTS Year ended Year ended Year ended Year ended Year ended 31 December 31 December 31 December 31 December 31 December Total gross income () 90,386,624 86,438,339 87,342,854 79,741,546 42,804,737 Income before tax () 47,518,215 46,334,594 79,356,179 41,873,244 25,078,220 Income after tax () - Realised 47,444,250 46,000,219 47,618,909 41,567,662 25,018,569 - Unrealised 1,672,138 (1,225,660) 28,502, ,582 5,607,651 Total 49,116,388 44,774,559 76,121,696 41,873,244 30,626,220 Earnings per unit (sen) - Realised Unrealised 0.39 (0.29) Total Distribution per unit (sen) Total asset value () 1,071,048,612 1,067,030,329 1,065,191,249 1,035,716, ,017,004 Net asset value () 635,560, ,959, ,305, ,500, ,925,609 Net asset value per unit () Market price per unit () Distribution yield 7.69% 7.36% 7.65% 7.02% 6.65% Annual total returns () (1) 47,444,250 46,000,219 47,618,909 41,567,662 25,018,569 Average total returns (2) - for one year 9.97% 9.66% 10.00% 8.73% 10.14% - for three years 9.88% 9.47% 9.62% 10.19% 10.68% - for five years 9.70% 10.05% 10.15% 9.87% 9.72% (1) Annual total returns are defined as realised income after tax. (2) Average total returns are calculated based on annual total returns for the respective financial years divided by unitholders capital for the respective financial years. Note: Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate in line with economic conditions and trust performance. Income Before Tax () Earnings Per Unit (Sen) ,078, ,873, ,356, ,334, ,518, Distribution Per Unit (Sen) Net Asset Value Per Unit () UOA REIT ANNUAL REPORT 2014

5 FINANCIAL HIGHLIGHTS (CONT D) Total Asset Value and Net Asset Value ( 000) 1,100,000 1,000,000 1,035,716 1,065,191 1,067,030 1,071, , , , , , , , , , , Dec Dec Dec Dec Dec 14 Net Asset Value Total Asset Value Trading Performance and Market Price Per Unit 2,000, ,800,000 1,600, Volume (Units) 1,400,000 1,200,000 1,000, , , Market Price Per Unit () 400, ,000 0 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun Jul Aug 2014 Sept 2014 Oct 2014 Nov 2014 Dec Market Price Volume UOA REIT ANNUAL REPORT

6 GLOSSARY Manager : UOA Asset Management Sdn Bhd ( U) Parcel B Menara UOA Bangsar : Consisting of a tower block, namely Tower B comprising 15 levels of office space, 3 levels of retail podium, 6 levels of elevated car park and 4 levels of basement car park (which form part of a development known as Menara UOA Bangsar) Properties Property Manager Trustee Unitholders UOA Ltd Group UOA Holdings Group UOA REIT / The Trust : Wisma UOA Pantai, Wisma UOA Damansara II, Parcel B Menara UOA Bangsar and the parcels within UOA Centre, UOA II and UOA Damansara : Jordan Lee & Jaafar Sdn Bhd (59901-U) : RHB Trustees Berhad ( U) : Unitholders of UOA REIT : United Overseas Australia Ltd (ACN ) and its subsidiaries : UOA Holdings Sdn Bhd ( V) and its subsidiaries : UOA Real Estate Investment Trust 4 UOA REIT ANNUAL REPORT 2014

7 CORPORATE INFOATION MANAGER UOA Asset Management Sdn Bhd ( U) PRINCIPAL PLACE OF BUSINESS OF THE MANAGER Wisma UOA Bangsar South Tower 1, Avenue 3, The Horizon Bangsar South City No. 8, Jalan Kerinchi Kuala Lumpur, Malaysia Telephone: Facsimile: REGISTERED ADDRESS OF THE MANAGER No. 9, Jalan Indah 16 Taman Cheras Indah Kuala Lumpur, Malaysia Telephone: Facsimile: PROPERTY MANAGER Jordan Lee & Jaafar Sdn Bhd (59901-U) No. 3-3, Level 3, Block B Plaza Damansara Jalan Medan Setia 1 Bukit Damansara Kuala Lumpur, Malaysia Telephone: Facsimile: REGISTRAR OF THE TRUST IN CHARGE OF THE REGISTER OF UNITHOLDERS Tricor Investor Services Sdn Bhd ( V) Level 17, The Gardens North Tower Mid Valley City Lingkaran Syed Putra Kuala Lumpur, Malaysia Telephone: Facsimile: BOARD OF DIRECTORS OF THE MANAGER Tan Sri Dato Seri Alwi Jantan (Chairman) Kong Sze Choon Kung Beng Hong Dato Gan Boon Khuay Alan Charles Winduss Dr. Tee Kim Siong AUDIT AND RISK MANAGEMENT COMMITTEE Kung Beng Hong (Chairman) Dato Gan Boon Khuay Alan Charles Winduss COMPANY SECRETARIES OF THE MANAGER Yap Kai Weng (MAICSA No: 74580) Wong Yoke Leng (MAICSA No: ) MANAGEMENT TEAM OF THE MANAGER Kong Sze Choon (Chief Executive Officer / Executive Director) Dr. Tee Kim Siong (Executive Director) Glenda Liew (Accountant) Fam Chai Hing (Compliance Officer) TRUSTEE RHB Trustees Berhad ( U) 6th Floor, Plaza OSK Jalan Ampang Kuala Lumpur, Malaysia Telephone: Facsimile: AUDITORS Mazars (No. AF: ) 7th Floor, South Block Wisma Selangor Dredging 142-A, Jalan Ampang Kuala Lumpur, Malaysia Telephone: Facsimile: BANKERS CIMB Bank Berhad AmBank (M) Berhad AmIslamic Bank Berhad United Overseas Bank (Malaysia) Berhad STOCK EXCHANGE LISTING Bursa Malaysia Securities Berhad Stock Code: UOA REIT 5110 WEBSITE INVESTOR RELATIONS uoacare@uoa.com.my Telephone: (Malaysia) (International) UOA REIT ANNUAL REPORT

8 PROFILE OF DIRECTORS OF THE MANAGER Name Nationality Position Tan Sri Dato Seri Alwi Jantan Malaysian Non-Independent Non-Executive Chairman Kong Sze Choon Singaporean Chief Executive Officer and Non-Independent Executive Director Kung Beng Hong Malaysian Independent Non-Executive Director Dato Gan Boon Khuay Malaysian Independent Non-Executive Director Alan Charles Winduss Australian Non-Independent Non-Executive Director Dr. Tee Kim Siong Malaysian Non-Independent Executive Director Further information on the Directors of the Manager is set out in the ensuing paragraphs. Tan Sri Dato Seri Alwi Jantan (Non-Independent Non-Executive Chairman) Tan Sri Dato Seri Alwi Jantan, Malaysian, aged 79, is our Non-Independent Non-Executive Chairman. He was appointed on 8 June He has had a distinguished career in public service in Malaysia culminating as Director General of Public Service, a position he held for over 3 years until his retirement in April His other notable appointments were as Secretary General, Ministry of Agriculture ( ), Deputy Secretary General, Prime Minister s Department ( ), Secretary General, Ministry of Health ( ), Secretary General, Ministry of Local Government and Federal Territory ( ), State Secretary, Selangor ( ), Director General of National Archives and Library ( ). He concurrently served as Private Secretary to His Royal Highness the Timbalan Yang di Pertuan Agong in 1961, 1962 and in Upon his retirement after 32 years in the public service, he joined Genting Malaysia Bhd (formerly known as Resorts World Bhd) as an Executive Vice-President Public Affairs and Human Resources in He was re-designated as Executive Director in He was re-designated as Independent Non-Executive Director on 1 July 2011, a position he currently holds. He is presently the Chairman / Independent Non-Executive Director of UOA Development Bhd. Tan Sri Dato Seri Alwi Jantan graduated from Universiti Malaya with a Bachelor of Arts (Honours in History) Degree in While in the public service, he also obtained a diploma in the Stage Technique International d Archives, Paris and an Honorary Degree from the University of Rome in 1966 and 1979 respectively. In 1980, he attended the Advanced Management Programme at the Harvard Graduate School of Business. Tan Sri Dato Seri Alwi Jantan was a United Nations Education, Scientific and Cultural Organisation (UNESCO) Fellow as well as a former President of the Harvard Business School Alumni Club of Malaysia. He does not have any family relationship with any Director and/or major unitholder of UOA REIT, nor any conflict of interest with the Manager, UOA Asset Management Sdn Bhd. He has no convictions for any offences over the past 10 years. 6 UOA REIT ANNUAL REPORT 2014

9 PROFILE OF DIRECTORS OF THE MANAGER (CONT D) Kong Sze Choon (Chief Executive Officer and Non-Independent Executive Director) Kong Sze Choon, Singaporean, aged 38, is our Chief Executive Officer and one of our Non-Independent Executive Directors. He was appointed on 14 January He is a graduate from Curtin University of Technology, Australia with a degree in Bachelor of Commerce in Finance. He was part of our management team as Assets Management Manager prior to his appointment as our Chief Executive Officer. He joined UOA Holdings Group in year 2002 and his roles in the UOA Holdings Group were predominantly in leasing as well as the sales and marketing of commercial and residential developments of the UOA Holdings Group. Apart from his key role in the Leasing Department, he was also involved in business development of the UOA Holdings Group. He is also presently a director of UOA (Singapore) Pte Ltd, a subsidiary company of the ultimate holding company of the Manager, United Overseas Australia Ltd. Prior to this, Mr. Kong worked in financial institutions in Singapore where he was involved in managing and growing the investment portfolio of high net worth individuals. He is the son of Mr. Kong Chong Soon, an indirect major shareholder of UOA Asset Management Sdn Bhd ( Manager ) and a major unitholder of UOA REIT via his interest in the UOA Ltd Group. He does not have any conflict of interest with the Manager and has no convictions for any offences over the past 10 years. Kung Beng Hong (Independent Non-Executive Director) Kung Beng Hong, Malaysian, aged 69, is one of our Independent Non-Executive Directors and the Chairman of the Audit and Risk Management Committee. He was appointed on 28 November He is a graduate from University Malaya majoring in Economics and is a Fellow of the Institute of Bankers, Malaysia. He has had a distinguished career in the banking industry over the last 45 years where he held numerous senior management posts including stints in USA and Singapore. Notable positions held include Senior General Manager of MBF Bhd ( ), General Manager / Executive Director of United Asian Bank ( ), Chief Executive Officer / Director of Overseas Union Bank ( ), Managing Director / Chief Executive Officer of AmBank (M) Berhad ( ) and Group Chief Executive Officer / Director of EON Bank Group ( ). He is currently an adviser with Fullerton Financial Holdings Pte Ltd and sits on the Board of Alliance Financial Group Bhd, Alliance Bank Malaysia Bhd and Alliance Investment Bank Bhd as a Non-Independent and Non-Executive Director. Mr. Kung also holds directorships in Asian Institute of Finance Bhd and FIDE Forum (both are non-listed public companies limited by guarantee) as well as Quill Motorcars Sdn Bhd. He does not have any family relationship with any Director and/or major unitholder of UOA REIT, nor any conflict of interest with the Manager, UOA Asset Management Sdn Bhd. He has no convictions for any offences over the past 10 years. UOA REIT ANNUAL REPORT

10 PROFILE OF DIRECTORS OF THE MANAGER (CONT D) Dato Gan Boon Khuay (Independent Non-Executive Director) Dato Gan Boon Khuay, Malaysian, aged 61, is one of our Independent Non-Executive Directors and a member of the Audit and Risk Management Committee. He was appointed on 16 November He possesses a degree in Bachelor of Science (First Class Honours) in Civil, Structural and Environmental Engineering from University College London, University of London, United Kingdom. He was awarded the Chadwick Medal & Prize in He has also successfully gone through the East Asian Executive Leadership Course from Harvard University, Massachusetts, USA. On 19 March 2012, he was conferred the IEM Honorary Member Award by the Institution of Engineers, Malaysia. He has over 38 years of experience in property and project management and property development and investment. After a 3 years stint in Rahim & Co, Chartered Surveyors as Property and Project Manager, he cofounded the Senawang Land group of companies and served on the Board initially as its Project Director and for the last 26 years as its Managing Director. He also holds directorships in various private limited companies. He does not have any family relationship with any Director and/or major unitholder of UOA REIT, nor any conflict of interest with the Manager, UOA Asset Management Sdn Bhd. He has no convictions for any offences over the past 10 years. Alan Charles Winduss (Non-Independent Non-Executive Director) Alan Charles Winduss, Australian, aged 74, is one of our Non-Independent Non-Executive Directors and a member of the Audit and Risk Management Committee. He was appointed on 28 November He is also a Director of Winduss & Associates Pty. Ltd. He has been involved in the professional accounting in public practice for over 28 years, specialising in matters relating to corporate management, restructuring, corporate finance and company secretarial matters including the Australian Securities Exchange ( ASX ) and the Australian Securities Exchange and Investments Commission compliance. The accounting practice of Winduss & Associates Pty. Ltd. lists among its field of expertise matters relating to property development, management and ownership. He sits on the board of 2 companies listed on the ASX, and serves on the board of Australian incorporated private limited companies. Mr. Winduss is also a Non-Independent Non-Executive Director of UOA Development Bhd and United Overseas Australia Ltd, the ultimate holding company of the Manager. Mr. Winduss graduated from the then Perth Technical College (now known as Curtin University) with a Diploma in Accounting in He is a member of various professional bodies including the Institute of Chartered Accountants in Australia and the Certified Public Accountants Australia. In addition, he is an Associate Fellow of the Australian Institute of Management, a Fellow of the Taxation Institute of Australia, a Fellow of the Australian Institute of Company Directors and is a registered Australian company auditor. He does not have any family relationship with any Director and/or major unitholder of UOA REIT, nor any conflict of interest with the Manager, UOA Asset Management Sdn Bhd. He has no convictions for any offences over the past 10 years. 8 UOA REIT ANNUAL REPORT 2014

11 PROFILE OF DIRECTORS OF THE MANAGER (CONT D) Dr. Tee Kim Siong (Non-Independent Executive Director) Dr. Tee Kim Siong, Malaysian, aged 42, is one of our Non-Independent Executive Directors. He was appointed on 28 September He graduated with a Degree in Bachelor of Engineering (First Class Honours) in Mechanical Engineering from Universiti Teknologi Malaysia. He obtained a Doctorate (Ph.D.) in Materials Science & Metallurgy from the University of Cambridge in the United Kingdom. A Fellow of the Cambridge Commonwealth Society of the United Kingdom, he has won numerous prestigious awards and scholarships. Dr. Tee was previously Chief Executive Officer of GLM REIT Management Sdn Bhd, the Manager of Tower Real Estate Investment Trust (Tower REIT). Prior to that, he was Group Chief Operating Officer of Kurnia Asia Bhd and was part of the Kurnia Group s senior management team for 8 years. He started his career as a strategic management consultant with McKinsey & Company, based in the United States and ASEAN region. He has been Honorary Secretary of the Malaysian REIT Managers Association (MA) since He does not have any family relationship with any Director and/or major unitholder of UOA REIT, nor any conflict of interest with the Manager, UOA Asset Management Sdn Bhd. He has no convictions for any offences over the past 10 years. UOA REIT ANNUAL REPORT

12 CHAIAN S STATEMENT On behalf of the Board of Directors of UOA Asset Management Sdn Bhd, the Manager of UOA Real Estate Investment Trust ( UOA REIT ), I am pleased to present the Annual Report and Financial Statements of UOA REIT for the financial year ended 31 December Results & Operations The performance of UOA REIT marginally improved against the result achieved for financial year The gross rental income showed an increase of approximately 4.4% while the income before tax increased by approximately 2.6% yearon-year. The expenditure for the financial year ended 31 December 2014 also increased by approximately 4.1% due in the main to an increase in property operating expenses and borrowing costs. The occupancy and rental rates of the properties in the portfolio remained stable with occupancy ranging from 88% to 100%. In line with the improvement in performance, the distribution per unit increased by 3.1% to sen per share compared to sen in the previous year. 10 UOA REIT ANNUAL REPORT 2014

13 CHAIAN S STATEMENT (CONT D) Significant Events Subsequent to the Stage 2 final approval obtained in 2014 to designate Wisma UOA Damansara and Wisma UOA Damansara II (collectively UOA Damansara ) as MSC Malaysia Cybercentre, the MSC Malaysia Cybercentre Agreement with Multimedia Development Corporation (MDeC) was executed in March Hence, UOA Damansara is now designated as MSC Malaysia Cybercentre and is currently home to several MSC Malaysia status companies. The Future The team will continue to actively manage the properties in the portfolio to achieve an improvement in both occupancy and rental rates. We are confident that the location of properties and the experience of the team can sustain the competitiveness of the properties in the portfolio. The Trust will continue to explore yield accretive acquisition opportunities while keeping capital management prudent and within statutory guidelines. I would like to take this opportunity to thank, on behalf of the Board, our Unitholders, tenants and business partners for their continued support and also to all staff for helping to achieve the year s result. I assure you the Directors and staff will continue to strive to deliver sustainable income growth and increased asset value. Tan Sri Dato Seri Alwi Jantan Chairman UOA REIT ANNUAL REPORT

14 STATEMENT OF CORPORATE GOVERNANCE The Board of Directors of UOA Asset Management Sdn Bhd ( Board ), being the Manager of UOA Real Estate Investment Trust ( UOA REIT ) recognises the importance of good corporate governance as they firmly believe that an effective corporate governance culture is essential for best interest of the unitholders of UOA REIT and is critical to the performance and success of the Manager and subsequently UOA REIT. The Board follows the practices and policies of the Securities Commission s Guidelines on Real Estate Investment Trusts ( REIT Guidelines ) and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ( Listing Requirements ). The Board has also adopted relevant principles and recommendations of the Malaysian Code of Corporate Governance 2012, where applicable to the operations of UOA REIT and is pleased to provide a narrative statement on the Manager s main corporate governance practices and policies. A. THE MANAGER OF UOA REIT The Manager has general powers of management over the assets of UOA REIT. Its primary role is to set the strategic direction of UOA REIT and manage the assets and liabilities of UOA REIT for the benefit of its unitholders, to ensure that the operations of UOA REIT are conducted in a proper, diligent and efficient manner within an appropriate risk management framework; and to enhance returns to its unitholders. The Manager s primary functions and responsibilities include: enhancement of assets in accordance with the Manager s investment strategy; optimising the capital structure and cost of capital; and reports; REIT s properties; and Requirements and the trust deed constituting UOA REIT dated 28 November 2005 ( Deed ). UOA REIT is externally managed by the Manager and it has no personnel of its own. The Manager appoints experienced and well-qualified management personnel to handle the day-to-day operations. All Directors and employees of the Manager are remunerated by the Manager and not by UOA REIT. UOA Asset Management Sdn Bhd is the appointed Manager of UOA REIT in accordance with the terms of the Deed which outlines the circumstances under which the Manager can be retired. The Manager holds a Capital Markets Services Licence as required under the Capital Markets and Services Act 2007 to carry on the regulated activity of fund management in relation to asset management restricted to real estate investment trust activities. The two (2) nominated Executive Directors of the Manager were also duly approved as Capital Markets Services Representatives. The Manager had also submitted its application for membership with the Securities Industry Dispute Resolution Centre (SIDREC) pursuant to the requirements in the Capital Markets and Services (Dispute Resolution) Regulations UOA REIT ANNUAL REPORT 2014

15 STATEMENT OF CORPORATE GOVERNANCE (CONT D) B. BOARD OF DIRECTORS OF THE MANAGER OF UOA REIT Role of the Board The Board is responsible for the oversight and corporate governance of the Manager. The Board sets the strategic direction, and oversees the proper conduct of the Manager s activities, identifies principal risks and ensures the implementation of systems to manage these risks. In addition, the Board reviews key matters such as financial results, investments, divestments and major capital expenditure of UOA REIT. In making decisions, the Board considers the business outlook and other factors affecting real estate investment trusts and property sectors. Appointment to the Board All new nominations are assessed by the Directors and the final decision of appointment lies with the entire Board to ensure a balanced mix of experience and expertise of members of the Board. Board Composition The Board presently consists of six (6) members, comprising two (2) Executive Directors and four (4) Non-Executive Directors. Two (2) of the Non-Executive Directors are independent. The Board composition complies with provisions of the Listing Requirements and the REIT Guidelines for at least one third (1/3) of the Board to be independent. The Board composition reflects a mix of suitably qualified and experienced professionals in the fields of civil service, accountancy, banking and finance, real estate development and property management. This combination of different professions and skills working together enables the Board to effectively lead and govern the Manager and UOA REIT. Although the Board does not have a majority Independent Directors, the Chairman who is a Non-Independent Non-Executive Director is able to provide strong leadership and to lead the Board objectively. The two Independent Directors are highly respected persons with extensive experience in various fields and are able to provide sufficient guidance and advice to the Audit and Risk Management Committee and the Board. Chairman and Chief Executive Officer The positions of Chairman of the Board and Chief Executive Officer ( CEO ) are held by separate persons. The Chairman leads the Board to ensure that members of the Board work together with the Manager in a constructive manner to address strategies, business operations, financial performance and risk management issues. The Chairman also takes a lead role in promoting high standards of corporate governance with the full support of the Board and the Manager. The CEO is responsible for implementing the policies and decisions of the Board. The CEO also has full executive responsibilities over the business directions and operational decisions in managing UOA REIT. The clear separation of roles of the Chairman and the CEO provides a healthy, independent and professional relationship between the Board and the management. UOA REIT ANNUAL REPORT

16 STATEMENT OF CORPORATE GOVERNANCE (CONT D) Independence and Time Commitment The Board receives annual written confirmation from the Independent Directors confirming their independence and in which the Directors acknowledge their respective position. All the Directors are able to devote sufficient time and attention to the operations of UOA REIT and to update themselves with knowledge and skills by attending seminars and training. The Directors are also accessible by and telecommunication should the need arises. Corporate Code of Conduct and Whistle Blowing Policy The Manager has in place procedures to provide its employees with defined and accessible channels to report on suspected fraud, corruption, dishonest practices or other similar matters relating to UOA REIT and/or the Manager, and for the independent investigation of any reports by employees and appropriate follow up action. The aim of the whistle blowing policy is to encourage the reporting of such matters in good faith, with the confidence that employees making such reports will be treated fairly, and to the extent possible, be protected from reprisal. United Overseas Australia Ltd ( UOA Ltd ), the ultimate holding company of the Manager had established a Code of Conduct which set out the standards which directors, officers, managers, employees and consultants of UOA Ltd and its subsidiaries are expected to comply in relation to the affairs of their businesses. Corporate Social Responsibility The UOA Ltd Group has continuously carry out corporate social responsibility initiatives in the areas of education, environment and community activities. Board Meetings The Board meets to discuss and review the Manager s operations and the financial performance of UOA REIT and meetings are held at least once every quarter (or more often if necessary). The Board is provided in advance with the agenda together with reports and supporting documents relevant to the Board Meeting. The proceedings of the Board Meetings are duly minuted and signed by the Chairman of the meeting. The Board met six (6) times during the financial year ended 31 December The attendance record of the Board is as follows: Directors Total Board Meetings attended Percentage of attendance Tan Sri Dato Seri Alwi Jantan 5/6 83% Kong Sze Choon 4/6 67% Kung Beng Hong 5/6 83% Dato Gan Boon Khuay 6/6 100% Alan Charles Winduss 6/6 100% Dr. Tee Kim Siong 6/6 100% All the Directors have also complied with the Listing Requirements by having attended more than fifty percent of the number of Board Meetings held. All the Directors have access to the Audit and Risk Management Committee, the internal auditors, the Company Secretary/Compliance Officer, as well as to independent professional consultants for advice if and when necessary. 14 UOA REIT ANNUAL REPORT 2014

17 STATEMENT OF CORPORATE GOVERNANCE (CONT D) Directors Fees The remuneration paid by the Manager to its Directors for the year ended 31 December 2014 is as follows: Fees Salaries Others Total Executive Directors - 308,373 79, ,647 Non-Executive Directors 192, ,000 Range of Remuneration Per Annum () Executive Non-Executive 50,000 and below ,001 to 100, ,001 to 150, ,001 and above 1 - Directors Training During the year ended 31 December 2014, the Directors have attended training and seminars as follows: Directors Training and seminars attended Tan Sri Dato Seri Alwi Jantan Kong Sze Choon Kung Beng Hong 1) Board Chairman Series: The Role of the Chairman 1) GST Awareness Session 2) Symposium with BMD: Responsible Risk Management 3) RHB Regional Infrastructure Conference 4) Mergers & Acquisitions: The Process and Making Mergers Succeed 1) BNM FIDE Forum Dialogue with the Governor Economic and Financial Services Sector: Trends and Challenges Moving Forward 2) LSE Asia Forum 3) FIDE Forum Recovery and Resolution Plant (RRP) in FI: Board Leading the Way 4) FIDE Forum s Dialogue Risks: From Whereof 5) The Singapore Summit 2014 Global Asia Confluence 6) PWC Board Briefing (i) Living Will; (ii) Cyber Criminal in the Financial Services Industry; (iii) IFRS 9; and (iv) FATCA UOA REIT ANNUAL REPORT

18 STATEMENT OF CORPORATE GOVERNANCE (CONT D) Directors Training (cont d) Directors Training and seminars attended Dato Gan Boon Khuay Alan Charles Winduss 1) GST Awareness Session 2) 2014 MASB Roundtable on Financial Reporting 3) MSWG Privatisation & Takeover Matters 4) Cyber Risks 5) Enterprise Risk Management and Directors and Officers Insurance What You Should Know 6) Board of Directors Breakfast Series Great Companies Deserve Great Boards 7) KPMG Audit Committee Institute Breakfast Roundtable 2014 on the Impact of Cyber Security at Board Levels 1) Governance in Action 2) Effective Board Meetings 3) Strategy and Risk for Directors 4) Corporate Governance Guide towards Boardroom Excellence 2nd Edition Dr. Tee Kim Siong 1) Asean M&E Forums ) GreenRE Manager s Course 3) International Green Building Conference ) GST Awareness Session C. DUE DILIGENCE COMMITTEE The Due Diligence Committee ( DDC ) was established by and operates under the delegated authority of the Board. The DDC comprises of one (1) Independent Director, one (1) Non-Independent Director and two (2) management representatives. The DDC s role is to perform due diligence work on any proposed investment or divestment and make recommendations to the Board. D. AUDIT AND RISK MANAGEMENT COMMITTEE The Board has voluntarily adopted the best practices in corporate governance by establishing an Audit Committee and implemented an Internal Audit Function. The Board is committed to maintain a sound and effective system of internal control in order to safeguard the interests of the unitholders of UOA REIT and the investments and assets of UOA REIT. On 15 January 2013, the name of the Audit Committee was changed to Audit and Risk Management Committee ( AC ), to better reflect the risk management function undertaken by the Audit Committee. 16 UOA REIT ANNUAL REPORT 2014

19 STATEMENT OF CORPORATE GOVERNANCE (CONT D) Composition The AC is appointed by the Board from among its members. The appointment and composition of the AC is determined based on the following principles: accounting association as specified in Part II of the First Schedule of the Accountants Act, 1967; and The AC consists of two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-Executive Director as follows: Key Functions and Responsibilities The key functions and responsibilities of the AC are: findings of these reports and management s responses to these findings; to ensure that it has necessary authority to carry out its work; impact on UOA REIT s business and the measures taken to mitigate such risks; the audit assessment, to present the audit findings and recommendation of the external auditors to the Board; internal and/or external auditors may wish to discuss (in the absence of the management where appropriate); auditors evaluation of these systems; REIT Guidelines, Listing Requirements and the Deed; and/or UOA REIT; and UOA REIT ANNUAL REPORT

20 STATEMENT OF CORPORATE GOVERNANCE (CONT D) Frequency and Attendance of Meetings The AC met five (5) times during the financial year ended 31 December The attendance record of the AC is as follows: Directors Total meetings attended Percentage of attendance Kung Beng Hong 4/5 80% Dato Gan Boon Khuay 5/5 100% Alan Charles Winduss 5/5 100% Summary of Activities of the AC during the Year Functions and responsibilities performed by the AC during the financial year ended 31 December 2014 include: weaknesses highlighted by the internal auditors are rectified by the Manager; to the commencement of audit; statements and on any internal control weaknesses highlighted; and ( WC ). Further details on the WC are set out in the Statement of Risk Management and Internal Control. Access to and Supply of Information The AC is entitled to full access to and co-operation of the management and internal auditors. Other Board members and employees may attend any particular AC meeting upon invitation by the AC. The AC has full access to reasonable resources to enable it to discharge its function properly. E. INTERNAL AUDIT FUNCTION AND RISK MANAGEMENT The Internal Audit Function is undertaken by the Internal Auditors of UOA Ltd and is independent of management. The AC meets with the internal auditors in the absence of management at its quarterly meetings. A Risk Management Policy has been adopted by the Board to mitigate risks of UOA REIT. Further details are set out in the Statement of Risk Management and Internal Control. The AC reviews related party transactions at its quarterly meetings and whenever necessary. A Related Party Transaction Policy has been adopted to enable the AC to review and deliberate on such transactions appropriately. Suitable recommendations are presented to the Board for approval. The AC ensures that financial statements comply with the applicable financial reporting standards and meet with the external auditors in the absence of management and at least two (2) times a year to ensure that such standards are in place. The external auditors confirms its independence to the AC at the meeting where it tables the audit findings to the AC. 18 UOA REIT ANNUAL REPORT 2014

21 STATEMENT OF CORPORATE GOVERNANCE (CONT D) F. ACCOUNTABILITY AND AUDIT Directors Responsibility Statement for Preparing the Annual Audited Financial Statements The Board is responsible for ensuring that the financial statements of UOA REIT are drawn up in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards, REIT Guidelines and the Deed. In preparing the financial statements, the Directors have selected and applied consistently suitable accounting policies and made judgements and estimates that are reasonable and prudent. Timely Disclosures The Board ensures timely disclosure of transactions and other necessary disclosures, having in place various checklists prepared in accordance with regulatory requirements and disseminated to the relevant departments to enable disclosures to be made on a timely basis. Relationship with Auditors The appointment of the external auditors, nominated by the Manager, is approved by the Trustee ( Auditors ). The Auditors are independent of the Manager and the Trustee. The remuneration of the Auditors is approved by the Trustee. Communication with Unitholders and Dissemination of Information The Board acknowledges the importance of regular communication with unitholders and the investing community to ensure that they are well informed of the activities and performance of UOA REIT. The communication channels include UOA REIT s website, quarterly reports, annual reports, circulars, various disclosures and announcements on Bursa Malaysia s website, and at general meeting of unitholders. UOA REIT ANNUAL REPORT

22 STATEMENT OF RISK MANAGEMENT AND INTERNAL CONTROL The Board of Directors of UOA Asset Management Sdn Bhd ( Board ), being the Manager of UOA Real Estate Investment Trust ( UOA REIT ) is committed to maintaining an effective and sound system of internal control to safeguard the interests of the unitholders of UOA REIT as well as the investments and assets of UOA REIT and the Manager. In this commitment, the Board has voluntarily adopted the best practices in corporate governance by establishing an Audit and Risk Management Committee ( AC ) and setting up an Internal Audit Function, undertaken by the Internal Auditors of United Overseas Australia Ltd although it is not mandatory for UOA REIT, being a real estate investment trust, to comply with Paragraph (b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The Board is pleased to provide a statement on the state of the Manager s internal controls for inclusion in this Annual Report for the financial year ended 31 December Internal Audit Function The internal audit function is undertaken by the Internal Audit Department of the ultimate holding company of the Manager, United Overseas Australia Ltd. The AC has an oversight function of all activities carried out by the internal auditors in respect of UOA REIT. The principal role of the internal auditors is to independently review the risk exposures and control processes implemented by the Manager and conducts assignments which encompass auditing and review of critical areas, report on the effectiveness and efficiency of the operations and internal control and highlight the significant findings in respect of noncompliance within UOA REIT to the AC. The internal auditors engage in regular communication with the senior management team and various departments within the organisation in relation to its internal audit activities and efforts for continuous improvement in operations and systems. The internal audit activities are guided by an annual audit plan, which is approved by the AC. Internal audit reports which include details of activities planned, audit findings and recommendations, are tabled at quarterly AC meetings. A summary of internal audit activities that were undertaken during the financial year ended 31 December 2014 are as follows: Trust and the applicable principles and recommendations as stipulated in the Malaysian Code of Corporate Governance 2012; receivable; properties. Key Elements in Internal Control The Board assumes its responsibility to maintain a sound and effective system of internal control and risk management practices within the Manager in order to meet the business objectives of the Manager. The Board acknowledges that the system provides reasonable but not absolute assurance against material misstatement of management and financial information or against financial losses or fraud. Therefore, the Board ensures the effectiveness of the system through regular reviews. The Board has appointed the AC to review the effectiveness of UOA REIT s system of internal control. The AC assisted by the Internal Audit Function, provides the Board with the assurance it requires on the adequacy and integrity of the system of internal control. 20 UOA REIT ANNUAL REPORT 2014

23 STATEMENT OF RISK MANAGEMENT AND INTERNAL CONTROL (CONT D) Key Elements in Internal Control (Cont d) The current system of internal control has within it, the following key elements: of UOA REIT. This operations manual is a guide to daily activities and operations of UOA REIT and it is subject to periodic review and updates; which are then outlined in the Risk Profile and subsequently appraised by the AC; and are determined upon consultation with relevant professionals. checklists to ensure compliances with statutory requirements and facilitate timely disclosures. Non-compliance and internal control weaknesses noted by the internal and external auditors and their recommendations will be reported to the AC. To date, there has been no identified non-compliance or internal control weaknesses of a material nature. Risk Management The Board has established a sound risk management framework which is currently being adopted by the Manager that enables it to continuously identify, evaluate, mitigate and monitor risks that affect UOA REIT. Responsibility for managing risk lies initially with the business unit concerned, working within the overall strategy outlined by the Board. Therefore the Manager has formed the Risk Management Working Committee ( WC ) which encompasses key personnel from various departments to identify potential risks, to assess the effectiveness of existing controls and to develop mitigating measures to manage significant risks. With the assistance rendered by the internal auditors, the WC have formulated and developed a Risk Management Policy which was reviewed by the AC and approved by the Board on 16 July The WC has also put in place a Risk Register which contains the risk profiles of the various departments. On half yearly basis, an updated Risk Register is presented to AC to review the risk profiles, the control procedures and the progress of management action plans to manage and mitigate the risks. Review of This Statement by External Auditors The external auditors have reviewed this Statement of Risk Management and Internal Control for inclusion in the annual report for the financial year ended 31 December Their review was conducted in accordance with the Recommended Practice Guide 5 (Revised) ( RPG 5 (Revised) ), Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control, issued by the Malaysian Institute of Accountants (MIA). RPG 5 (Revised) does not require the external auditors to, and they did not, consider whether this Statement covers all risks and controls, or to form an opinion on the adequacy and effectiveness of UOA REIT s risk and control procedures. RPG 5 (Revised) also does not require the external auditors to consider whether the processes described to deal with material internal control aspects of any significant problems disclosed in the annual report will, in fact, remedy the problems. Based on their review, the external auditors have reported to the Board that nothing has come to their attention that causes them to believe that this Statement is inconsistent with their understanding of the process the Board has adopted in the review of the adequacy and effectiveness of the risk management and internal control system. The Board s Conclusion The Board is of the view that the current system of internal control is responsive and adequate to the business environment of UOA REIT. There was no material control failure or weakness that would have any material adverse effects on the results of UOA REIT for the period under review. In addition, the Board is of the view that UOA REIT will maintain its business objective and operational efficiency by continuous commitment towards a sound system of internal control. The Board continues to take measures to enhance the system of internal control. UOA REIT ANNUAL REPORT

24 ADDITIONAL COMPLIANCE INFOATION Material Contracts There was no material contract entered into involving directors and major unitholders interest which were still subsisting as at the end of the financial year under review or which were entered into since the end of the previous financial year except as disclosed in Note 25 to the financial statements. Non-Audit Fees During the financial year ended 31 December 2014, there was no non-audit fee paid/payable to UOA REIT s external auditors, or a firm or company affiliated to the external auditors firm. 22 UOA REIT ANNUAL REPORT 2014

25 FINANCIAL STATEMENTS Manager s Report Statement by Manager Statutory Declaration Trustee s Report to the Unitholders Independent Auditor s Report to the Unitholders Statement of Financial Position Statement of Profit or Loss and Other Comprehensive Income Statement of Changes in Net Asset Value Statement of Cash Flows Notes to the Financial Statements

26 MANAGER S REPORT FOR THE YEAR ENDED 31 DECEMBER 2014 UOA Asset Management Sdn Bhd, the Manager of UOA Real Estate Investment Trust ( UOA REIT ), has pleasure in presenting the Manager s Report on UOA REIT together with the audited financial statements of UOA REIT for the year ended 31 December PRINCIPAL ACTIVITY OF THE MANAGER The Manager, a company incorporated in Malaysia, is a subsidiary company of UOA Corporation Bhd (an effectively 60% owned subsidiary company of UOA Holdings Sdn Bhd which in turn, is a wholly owned subsidiary company of United Overseas Australia Ltd, a company incorporated in Australia and listed on the Australian Stock Exchange and the Stock Exchange of Singapore). The principal activity of the Manager is the management of real estate investment trusts. There has been no significant change in the nature of this activity during the financial year. PRINCIPAL ACTIVITIES AND INVESTMENT OBJECTIVE OF THE TRUST UOA REIT is a Malaysia-domiciled real property trust fund constituted under a Deed dated 28 November 2005 ( Deed ) by UOA Asset Management Sdn Bhd ( Manager ) and RHB Trustees Berhad ( Trustee ). UOA REIT commenced operations on 1 December 2005 and was listed on the Main Market of Bursa Malaysia Securities Berhad on 30 December The principal activity of UOA REIT is to invest in diversified portfolio of real estate and real estate-related assets used, or predominantly used, for commercial purposes, whether directly or indirectly through the ownership of single-purpose companies who wholly own real estate with the objective of achieving a stable return from rental income and long term capital growth. There has been no significant change in the nature of this activity during the financial year. UOA REIT will continue its operations until such time as determined by the Trustee and the Manager as provided under Clause 26 of the Deed. INVESTMENT STRATEGIES During the financial year, the Manager continued to adopt the following strategies in achieving UOA REIT s investment objective: (I) Operating Strategy UOA REIT s operating strategy is to continue to enhance the performance of the Properties by increasing yields and returns from the Properties through a combination of retaining existing tenants, reducing vacancy levels, adding and/or optimising retail/office space at the Properties and minimising interruptions in rental income and operational costs. The Manager expects to apply the following key operating and management principles: (a) (b) (c) (d) (e) (f) to optimise rental rates via active management of tenancies, renewals and new tenancies; maintaining a close relationship with tenants to optimise tenant retentions; actively working with the Property Manager to pursue new tenancy opportunities; to optimise tenant mix and space configuration; continuous review of tenant mix and if practicable, reconfigure lettable space; and continually maintaining the quality of the Properties. 24 UOA REIT ANNUAL REPORT 2014

27 MANAGER S REPORT (CONT D) (II) Acquisition Strategy The Manager seeks to increase cash flow and enhance unit value through selective acquisitions. The acquisition strategy takes into consideration: (a) (b) (c) (d) (e) location; occupancy and tenant mix; building and facilities specifications; opportunities; and yield thresholds. The Manager has access to a network of and good relationships with leading participants in the real estate industry which may assist UOA REIT in identifying (a) acquisition opportunities that have favourable returns on invested capital and growth in cash flow; and (b) under-performing assets. The Manager believes that these deal-sourcing capabilities will be an important competitive advantage of UOA REIT. The Manager intends to capitalise on the relationship with UOA Holdings Group, which is one of Malaysia s leading property development, property investment, property management services and construction group of companies. This relationship is expected to accord UOA REIT competitive advantages and benefits towards achieving its long term objectives. The Manager intends to hold the Properties on a long term basis. In the future where the Manager considers that any property has reached a stage that offers only limited scope for growth, they may consider selling the property and using the proceeds from the sale for alternative investments in properties that meet their investment criteria. (III) Capital Management Strategy The Manager aims to optimise UOA REIT s capital structure and cost of capital within the borrowing limits prescribed by the Securities Commission s Guidelines on Real Estate Investment Trusts ( REIT Guidelines ) and intends to use a combination of debt and equity funding for future acquisitions and improvement works at the Properties. Our capital management strategies involve: (a) (b) adopting and maintaining an optimal gearing level; and adopting an active interest rate management strategy to manage risks associated with changes in interest rates while maintaining flexibility in UOA REIT s capital structure to meet future investment and/or capital requirements. INVESTMENT POLICIES (I) Portfolio Composition UOA REIT s investments may be allocated in the following manner, as prescribed by the REIT Guidelines: (a) (b) (c) at least 75% of UOA REIT s total assets shall be invested in real estate, single-purpose companies, real estate-related assets or liquid assets; at least 50% of UOA REIT s total assets must be invested in real estate or single-purpose companies; and the remaining 25% of UOA REIT s total assets may be invested in other assets (i.e. real estate-related assets, non-real estate-related assets or asset-backed securities). UOA REIT ANNUAL REPORT

28 MANAGER S REPORT (CONT D) (II) Diversification UOA REIT will seek to diversify its real estate portfolio by property and location type. UOA REIT will focus on investing in real estates that are primarily used for office, retail and/or residential purposes and will continue to look for opportunities in these types of properties. In addition, it may also look into other properties that will provide attractive risk-adjusted returns. (III) Leverage UOA REIT will be able to leverage on its borrowings to make the permitted investments. Leveraging on its borrowings will increase the returns to unitholders. UOA REIT is permitted to procure borrowings of up to 50% of its total asset value. DISTRIBUTION POLICY At least 90% of the distributable income of UOA REIT will be distributed semi-annually or at such other intervals as determined by the Manager, in arrears. PERFOANCE OF THE TRUST As at 31 As at 31 As at 31 As at 31 As at 31 December December December December December Total net asset value ( 000) 635, , , , ,926 Units in circulation ( 000) 422, , , , ,949 Net asset value per unit () Highest net asset value per unit () Lowest net asset value per unit () Market price per unit () Highest traded price for the financial year () Lowest traded price for the financial year () UOA REIT ANNUAL REPORT 2014

29 MANAGER S REPORT (CONT D) OPERATING RESULTS Year ended Year ended Year ended Year ended Year ended 31 December 31 December 31 December 31 December 31 December Total gross income 90,387 86,438 87,343 79,742 42,805 Property operating expenses 21,790 20,124 19,331 18,419 9,629 Non-property expenses 5,030 4,899 4,719 4,308 2,848 Finance costs 16,123 15,415 15,674 15,447 5,309 Income before taxation, net appreciation on fair value of investment properties and net changes on financial liabilities measured at amortised cost 47,444 46,000 47,619 41,568 25,019 Net appreciation on fair value of investment properties , Net changes on financial liabilities measured at amortised cost (376) Income before tax 47,518 46,334 79,356 41,873 25,078 Tax income/(expense) 1,598 (1,560) (3,234) - 5,548 Income after tax 49,116 44,774 76,122 41,873 30,626 The Manager is pleased to report that total gross income for the financial year ended 31 December 2014 was 90,386,624 (2013 : 86,438,339) comprising rental income of 89,978,010 (2013 : 86,165,952), interest income of 29,872 (2013 : 28,788) and other income of 378,742 (2013 : 243,599). Total gross income for the financial year was 4.6% higher than the previous financial year. Realised income before tax was 47,444,250 (2013 : 46,000,219), recorded a 3.1% increase over the previous financial year due to improvement in rental income which was offset by increases in property operating expenses and borrowing costs. INCOME DISTRIBUTION The Trust had on 29 August 2014 paid an interim distribution of 5.27 sen per unit for the six months ended 30 June The Manager had on 13 January 2015, recommended to the Trustee, and the Trustee had on 16 January 2015, approved the final income distribution of 5.73 sen per unit totaling 24,230,553 for the financial year ended 31 December 2014 to be paid by 27 February 2015 ( Final Distribution ). The Final Distribution comprises a taxable income of approximately 4.74 sen per unit and a tax-exempt income of approximately 0.99 sen per unit. The total distribution for the financial year ended 31 December 2014 is sen per unit, an increase of approximately 3.1% or 0.33 sen per unit as compared to the previous financial year. Pursuant to the amendment to Section 6(1)(i) of the Income Tax Act, 1967 under the Finance Act, 2012 which was gazetted on 9 February 2012, the following withholding tax rates as stipulated in Part X, Schedule 1 of the Income Tax Act, 1967 would be applicable in respect of distribution of income by the Trust to its unitholders: (a) Non-corporate investors and local institutional investors are subject to a final withholding tax at the rate of 10%. (b) Foreign institutional investors are subject to a final withholding tax at the rate of 10%. (c) Foreign corporate investors are subject to a final withholding tax at the rate of 25%. (d) Local corporate investors are subject to the existing tax treatment and tax rates (corporate tax rate is 25% for years 2014 and 2015). UOA REIT ANNUAL REPORT

30 MANAGER S REPORT (CONT D) BENCHMARKS RELEVANT TO THE REIT Year ended Year ended Year ended Year ended Year ended 31 December 31 December 31 December 31 December 31 December Distribution per unit (sen) - interim final total Distribution payment date - interim 29/08/ /08/ /08/ /08/ /08/ final 27/02/ /02/ /02/ /02/ /02/2011 Distribution yield based on issued price of 1.15 per unit (%) Distribution yield based on market price at 31 December (%) Market price as at 31 December () Management Expense Ratio ( MER ) (%)* Portfolio Turnover Ratio ( PTR ) (times)** * MER is calculated based on the total administrative expenses incurred by the Trust divided by the average value of the Trust fund for the financial year calculated on a weekly basis. ** PTR is the ratio of the average sum of acquisition and disposal of the Trust for the financial year to the average value of the Trust fund for the financial year calculated on weekly basis. Note: As the basis of calculation may vary among real estate investment trusts, no accurate comparison can be made between UOA REIT s MER and PTR, and other real estate investment trusts. COMPOSITION OF INVESTMENT PORTFOLIO As at 31 December 2014, UOA REIT s composition of investment portfolio is as follows: 000 % REAL ESTATE PROPERTIES Commercial LIQUID ASSETS 1,066, UOA REIT ANNUAL REPORT 2014

31 MANAGER S REPORT (CONT D) The details of the real estate properties as at 31 December 2014 are as follows: UOA Centre Parcels Address/Location Within UOA Centre at No. 19, Jalan Pinang, Kuala Lumpur. Description Parcels within the 33 storey office building known as UOA Centre inclusive of 6 levels of car park space. Title details Twenty-eight (28) strata titles within UOA centre identified as Bangunan M1, developed on Parent Lot Title No. Geran 46212, Lot No. 1312, Section 57, District and Town of Kuala Lumpur, State of Wilayah Persekutuan KL. Property type Office parcels Net lettable area 123,950 sq ft Age Approximately 20 years Existing use Status of holding Major tenants (based on monthly rental receivable) Commercial Freehold Occupancy rate 94.8% (based on secured tenancies) Rental received Maintenance costs and capital expenditure Encumbrances a) Bank Kerjasama Rakyat Malaysia Bhd b) Dats Management Sdn Bhd c) Saipem Asia Sdn Bhd 6,797,703 Date of acquisition 29 November 2005 Cost of acquisition Last valuation Maintenance costs amount to 3,986,387. No major capital expenditure incurred during the financial year. Charged to a financial institution as security for revolving credit facilities. 55,981,272 79,000,000 Date of last valuation 31 December 2012 Basis of valuation Independent valuer Net book value Investment and Comparison Method PPC International Sdn Bhd 79,006,396 UOA REIT ANNUAL REPORT

32 MANAGER S REPORT (CONT D) UOA II Parcels Address/Location Within UOA II at No. 21, Jalan Pinang, Kuala Lumpur. Description Parcels within the 39 storey office building known as UOA II inclusive of 5 levels of car park space. Title details Sixty-eight (68) strata titles within UOA II identified as Bangunan M2, developed on the Parent Lot Title No. Geran 46212, Lot No. 1312, Section 57, District and Town of Kuala Lumpur, State of Wilayah Persekutuan KL. Property type Office parcels Net lettable area 426,777 sq ft Age Approximately 16 years Existing use Status of holding Major tenants (based on monthly rental receivable) Commercial Freehold Occupancy rate 93.3% (based on secured tenancies) Rental received Maintenance costs and capital expenditure Encumbrances Date of acquisition Cost of acquisition Last valuation a) Dats Management Sdn Bhd b) Infinity Supercorridor Sdn Bhd c) M3nergy JDA Sdn Bhd 22,398,811 Maintenance costs amount to 4,440,632. Capital expenditure of 89,560 was incurred during the financial year to enhance the property. Charged to a financial institution as security for revolving credit facilities (There are no encumbrances on Level 17, UOA II). 29 November 2005 (Excluding Level 17, UOA II) 22 March 2010 (Level 17, UOA II) 194,502, ,500,000 Date of last valuation 31 December 2012 Basis of valuation Independent valuer Net book value Investment and Comparison Method PPC International Sdn Bhd 261,969, UOA REIT ANNUAL REPORT 2014

33 MANAGER S REPORT (CONT D) UOA Damansara Parcels Address/Location Within UOA Damansara at No. 50, Jalan Dungun, Damansara Heights, Kuala Lumpur. Description Parcels within the 13 storey office building known as UOA Damansara inclusive of 4 levels of basement car park space. Title details Thirty (30) strata titles within UOA Damansara, identified as Bangunan M1, developed on Parent Lot Title No. Geran 67371, Lot 55917, District of Kuala Lumpur, Mukim of Kuala Lumpur, State of Wilayah Persekutuan KL. Property type Office parcels Net lettable area 186,510 sq ft Age Approximately 17 years Existing use Status of holding Major tenants (based on monthly rental receivable) Commercial Freehold Occupancy rate 94.9% (based on secured tenancies) Rental received Maintenance costs and capital expenditure Encumbrances a) Skrine b) Dats Management Sdn Bhd c) Kerajaan Malaysia (Kementerian Perumahan dan Kerajaan Tempatan) 9,525,692 Date of acquisition 29 November 2005 Cost of acquisition Last valuation Maintenance costs amount to 2,658,744. Capital expenditure of 918,806 was incurred during the financial year to enhance the property. Charged to a financial institution as security for revolving credit facilities. 72,000, ,000,000 Date of last valuation 31 December 2012 Basis of valuation Independent valuer Net book value Investment and Comparison Method PPC International Sdn Bhd 108,945,572 UOA REIT ANNUAL REPORT

34 MANAGER S REPORT (CONT D) Wisma UOA Pantai Address/Location No.11, Jalan Pantai Jaya, Kuala Lumpur. Description A 5 storey office building with 2 mezzanine floors and 3 levels of basement car park space. Title details Lot No , Geran (formerly PT 7525 H.S.(D) ), District and Town of Kuala Lumpur, Mukim of Kuala Lumpur, State of Wilayah Persekutuan KL. Property type Commercial building Net lettable area 157,083 sq ft Age Approximately 7 years Existing use Status of holding Major tenants (based on monthly rental receivable) Commercial Freehold Occupancy rate 91.7% (based on secured tenancies) Rental received Maintenance costs and capital expenditure Encumbrances a) Kerajaan Malaysia (Kementerian Perumahan dan Kerajaan Tempatan) b) Tenaga Nasional Berhad c) Dats Management Sdn Bhd 8,666,186 Maintenance costs amount to 2,057,062. No major capital expenditure incurred during the financial year. Nil. Date of acquisition 2 April 2008 Cost of acquisition Last valuation 86,000,000 94,400,000 Date of last valuation 31 December 2012 Basis of valuation Independent valuer Net book value Investment and Comparison Method PPC International Sdn Bhd 94,400, UOA REIT ANNUAL REPORT 2014

35 MANAGER S REPORT (CONT D) Wisma UOA Damansara II Address/Location No.6, Changkat Semantan, Damansara Heights, Kuala Lumpur. Description A 16 storey office building with 3 levels of elevated car park space and 5 levels of basement car park space. Title details Lot No , Geran 6837, District and Town of Kuala Lumpur, Mukim of Kuala Lumpur, State of Wilayah Persekutuan KL. Property type Commercial building Net lettable area 297, sq ft Age Approximately 7 years Existing use Status of holding Major tenants (based on monthly rental receivable) Commercial Freehold Occupancy rate 87.6% (based on secured tenancies) Rental received Maintenance costs and capital expenditure Encumbrances a) NSA Solutions Sdn Bhd b) Radimax Group Sdn Bhd c) Dats Management Sdn Bhd 16,692,893 Date of acquisition 17 January 2011 Cost of acquisition Last valuation Maintenance costs amount to 3,443,899. Capital expenditure of 35,360 was incurred during the financial year to enhance the property. Charged to a financial institution as security for revolving credit facilities. 211,000, ,000,000 Date of last valuation 31 December 2012 Basis of valuation Independent valuer Net book value Investment and Comparison Method PPC International Sdn Bhd 222,151,113 UOA REIT ANNUAL REPORT

36 MANAGER S REPORT (CONT D) Parcel B Menara UOA Bangsar Address/Location Within Menara UOA Bangsar at No.5, Jalan Bangsar Utama 1, Kuala Lumpur. Description A tower block, namely Tower B comprising 15 levels of office space, 3 levels of retail podium, 6 levels of elevated car park and 4 levels of basement car park (which form part of a development known as Menara UOA Bangsar). Title details Fourteen (14) strata titles within Menara UOA Bangsar, identified as Bangunan M1 and M1-A, developed on Parent Lot Title No. Pajakan Negeri (WP) (formerly PT 33 H.S.(D) ), Lot No. 421, Section 96, District and Town of Kuala Lumpur, State of Wilayah Persekutuan KL. Property type Commercial building Net lettable area 312,116 sq ft Age Approximately 6 years Existing use Status of holding Major tenants (based on monthly rental receivable) Occupancy rate 100% (based on secured tenancies) Rental received Maintenance costs and capital expenditure Encumbrances Commercial 99 years leasehold expiring in 2106 (unexpired term of approximately 92 years) a) Perbadanan Harta Intelek Malaysia b) Dats Management Sdn Bhd c) Prasarana Malaysia Bhd 25,896,725 Date of acquisition 17 January 2011 Cost of acquisition Last valuation Maintenance costs amount to 5,203,019. Capital expenditure of 35,400 was incurred during the financial year to enhance the property. Pledged to a financial institution as security for revolving credit facilities. 289,000, ,000,000 Date of last valuation 31 December 2012 Basis of valuation Independent valuer Net book value Investment and Comparison Method PPC International Sdn Bhd 296,035, UOA REIT ANNUAL REPORT 2014