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Corporate Governance

REPORT FOR THE PERIOD FROM 1 APRIL 2017 TO 31 MARCH 2018

Good corporate governance is ingrained in the core values of Ascendas Funds Management (S) Limited (Manager), the manager of Ascendas Real Estate Investment Trust (Ascendas Reit) and encompasses the implementation of best practices and structures, internal checks and balances, transparency and compliance in Ascendas Reit. The Manager is committed to regularly improving its corporate governance practices. It develops and maintains adequate policies and practices to meet the specific business needs of Ascendas Reit on an ongoing basis.

The Manager believes that effective corporate governance is critical to its performance and the success of Ascendas Reit. The Manager remains focused on complying with the principles and requirements of prevailing legislation, regulations and codes (relevant regulations) (including the Code of Corporate Governance 2012 (the Code) issued by the Monetary Authority of Singapore (MAS) in Singapore).

This section sets out the existing corporate governance practices of Ascendas Reit with reference to the Code and relevant regulations. The Manager has adhered to the principles and guidelines of the Code. Where there are deviations from the principles and guidelines of the Code and relevant regulations, such as with respect to remuneration matters, an explanation has been provided in the relevant section.

THE MANAGER OF ASCENDAS REIT

The Manager was appointed in accordance with the terms of the Trust Deed constituting Ascendas Reit dated 9 October 2002 (as amended) (the Trust Deed).

Pursuant to the Trust Deed, the Manager’s main responsibility is to manage Ascendas Reit’s assets and liabilities for the benefit of unitholders of Ascendas Reit (Unitholders).

The Manager sets the strategic business direction of Ascendas Reit and makes recommendations to HSBC Institutional Trust Services (Singapore) Limited as the trustee of Ascendas Reit (the Trustee), on new investments, divestments and enhancement of the assets of Ascendas Reit. The Manager is also responsible for the capital and risk management of Ascendas Reit. Other key functions and responsibilities of the Manager include:

  1. conducting all transactions on behalf of Ascendas Reit at arm’s length, using best endeavours;
  2. developing and implementing Ascendas Reit’s strategy, business plan and budget;
  3. ensuring compliance with prevailing rules and regulations, such as those contained in The Listing Manual of Singapore Exchange Securities Trading Ltd (SGX-ST Listing Rules), the Code on Collective Investment Schemes (CIS Code) including the Property Funds Appendix issued by the MAS, the Capital Markets Services (CMS) licence for REIT Management issued by the MAS, the Securities and Futures Act, Chapter 289 of Singapore (SFA), as well as the Manager’s obligations under the Trust Deed;
  4. ensuring the execution of works by the appointed property manager, Ascendas Services Pte Ltd (for properties located in Singapore) and Ascendas Funds Management (Australia) Pty Ltd (AFMA) together with third party managing agent (for properties located in Australia) (collectively known as the Property Managers), that provides property management, marketing and project management services for the properties held by Ascendas Reit, pursuant to the relevant property management agreements;
  5. maintaining a framework of prudent and effective controls which enable strategic, external, financial, operational, investment and development, regulatory compliance, information technology and sustainability risks to be assessed and managed; and
  6. managing regular communications with Unitholders and any necessary announcements in accordance to the SGX-ST Listing Rules.

In executing its responsibilities towards Ascendas Reit, the Manager has adopted a set of internal guidelines and financial regulations which set out approval limits for, amongst others, capital expenditure, new investments and divestments, procurement of goods and services, and the operation of bank accounts.

All the directors of the Manager (the Board or Directors) are competent and experienced individuals who have considerable experience in the real estate industry and/or other relevant fields of business.


For the full report, please refer to our annual report here.