NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2023 1 GENERAL (continued) 1.1 Service agreements (continued) (iii) BT Trustee-Manager’s fees (continued) Management fees The BT Trustee-Manager is entitled under Clauses 14.1.1 and 14.1.2 of the CapitaLand Ascott BT Trust Deed to the following management fees: (a) a base fee of 0.3% per annum of the property values; and (b) an annual performance fee of: • base performance fee of 4.0% per annum of the CapitaLand Ascott BT Group’s share of gross profit for each financial year; and • in the event that the CapitaLand Ascott BT Group’s share of gross profit increases by more than 6.0% annually, an additional outperformance fee of 1.0% of the difference between the CapitaLand Ascott BT Group’s share of that financial year’s gross profit and 106% of the CapitaLand Ascott BT Group’s share of the preceding year’s gross profit. The base management fees and performance fees payable in cash and in the form of Stapled Securities shall be payable quarterly in arrears. When management fees are payable in Stapled Securities, the BT Trustee-Manager shall be entitled to receive such number of Stapled Securities as may be purchased for the relevant amount of the management fees at the market price (as defined in the CapitaLand Ascott BT Trust Deed). Acquisition fee Pursuant to Clause 14.2.1 of the CapitaLand Ascott BT Trust Deed, the BT Trustee-Manager is entitled to receive the following acquisition fees: (a) an acquisition fee of 1.0% of the Enterprise Value of any real estate or real estate related asset acquired directly or indirectly by CapitaLand Ascott BT, prorated if applicable to the proportion of CapitaLand Ascott BT’s interest; and (b) in the event that there is payment to third party agents or brokers in connection with the acquisition, such payment shall be paid out of the CapitaLand Ascott BT Deposited Property, provided that the BT Trustee-Manager shall charge an acquisition fee of 0.5% instead of 1.0%. Where assets acquired by CapitaLand Ascott BT are shares in a company whose primary purpose is to hold/own real estate (directly or indirectly), Enterprise Value shall mean the sum of the equity value and the total debt attributable to the shares being acquired by CapitaLand Ascott BT and where the asset acquired by CapitaLand Ascott BT is a property, Enterprise Value shall mean the value of the property. The BT Trustee-Manager may opt to receive such acquisition fee in the form of cash or Stapled Securities or a combination of cash and Stapled Securities as it may determine. In the event that the BT Trustee-Manager receives an acquisition fee in connection with a transaction with a related party, any such acquisition fee shall be paid in the form of Stapled Securities to be issued by CapitaLand Ascott BT at the market price. Overview Sustainability & Governance ANNUAL REPORT 2023 197 Leadership Portfolio & Performance Financial Statements and Other Information
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