OUR ROLE
Our primary role as the manager of Ascott Reit (Manager) is to set the strategic direction of Ascott
Reit and make recommendations to DBS Trustee Limited, in its capacity as trustee of Ascott Reit
(Trustee), on acquisition, divestment and enhancement of the assets of Ascott Reit in accordance
with its stated investment strategy. The research, evaluation and analysis required for this purpose
are coordinated and carried out by us as the Manager.
As the Manager, we have general powers of management over the assets of Ascott Reit. Our primary
responsibility is to manage the assets and liabilities of Ascott Reit for the benefit of the unitholders
of Ascott Reit (Unitholders). We do this with a focus on generating rental income and enhancing asset
value over time so as to maximise returns from investments, and ultimately distributions and total
returns to Unitholders.
Our other functions and responsibilities as the Manager include:
(a) using our best endeavours to conduct Ascott Reit’s business in a proper and efficient manner
and to conduct all transactions with, or on behalf of, Ascott Reit at arm’s length;
(b) preparing annual business plans for review by the directors of the Manager (Directors),
including forecasts on revenue, net income and capital expenditure, explanations on major
variances to previous years’ plans, written commentaries on key issues and underlying
assumptions on rental rates, operating expenses and any other relevant assumptions;
(c) ensuring compliance with relevant laws and regulations, including the Listing Manual of
Singapore Exchange Securities Trading Limited (SGX-ST) (Listing Manual), the Code on
Collective Investment Schemes (CIS Code) issued by the Monetary Authority of Singapore
(MAS) (including Appendix 6 of CIS Code (Property Funds Appendix)) and the tax rulings issued
by the Inland Revenue Authority of Singapore on the taxation of Ascott Reit and Unitholders;
(d) attending to all regular communications with Unitholders; and
(e) supervising the respective property manager which performs the day-to-day property
management functions (including operation, management, marketing and promotion) for Ascott
Reit’s properties.
The Manager also considers sustainability issues (including environmental and social factors) as part
of its responsibilities. Ascott Reit’s environmental sustainability and community outreach programmes
are set out on pages 49 to 51 of the Annual Report.
Ascott Reit, constituted as a trust, is externally managed by the Manager and therefore has no
personnel of its own. The Manager appoints experienced and well qualified management to run its
day-to-day operations. All Directors and employees of the Manager are remunerated by the Manager
and not Ascott Reit.
The Manager was appointed in accordance with the terms of the trust deed constituting Ascott Reit
dated 19 January 2006 (as amended, varied or supplemented from time to time) (Trust Deed). The
Trust Deed also outlines certain circumstances under which the Manager can be removed, including
by notice in writing given by the Trustee upon the occurrence of certain events, or by a resolution
passed by a simple majority of Unitholders present and voting at a meeting of Unitholders duly
convened and held in accordance with the provisions of the Trust Deed.
Corporate Governance
Pursuing Growth | 27
