Notes to the Financial Statements Year ended 31 December 2024 1 GENERAL (continued) 1.1 Service agreements Several service agreements are in place in relation to the management of CapitaLand Ascott REIT and CapitaLand Ascott BT and their property operations. The fee structures of these services are as follows: (i) REIT Trustee’s fees Pursuant to Clause 16.2 of the CapitaLand Ascott REIT Trust Deed, the REIT Trustee’s fee shall not exceed 0.1% per annum of the value of the assets of the CapitaLand Ascott REIT Group (the “CapitaLand Ascott REIT Deposited Property”), subject to a minimum of $10,000 per month, excluding out-of-pocket expenses and goods and services tax which is borne by CapitaLand Ascott REIT. The REIT Trustee is also entitled to reimbursement of expenses incurred in the performance of its duties under the CapitaLand Ascott REIT Trust Deed. The REIT Trustee’s fees are payable monthly in arrears. (ii) REIT Manager’s fees Management fees The REIT Manager is entitled under Clauses 15.1.1 and 15.1.2 of the CapitaLand Ascott REIT 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 REIT Group’s share of gross profit for each financial year; and • in the event that the CapitaLand Ascott REIT 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 REIT Group’s share of that financial year’s gross profit and 106% of the CapitaLand Ascott REIT Group’s share of the preceding year’s gross profit. The base management fees payable in cash and in the form of Stapled Securities shall be payable quarterly in arrears. Performance fees shall be payable once a year, after the end of the financial year. When management fees are payable in Stapled Securities, the REIT 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 REIT Trust Deed). 151 Annual Report 2024
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